Common use of Oil and Gas Losses and Burning of Natural Gas Clause in Contracts

Oil and Gas Losses and Burning of Natural Gas. The losses of Oil or Gas occurred under the responsibility of the Concessionaire, as well as burning of Gas in flares, shall be included in the Total Production Volume to be calculated for purposes of payment of the Government and Third-Party Shares, without prejudice to the provisions in Section Twenty-Nine and Section Thirty. Burning of Gas in flares shall be allowed only for reasons of safety, emergency, and commissioning, and shall be restricted to volumes previously and formally approved by ANP, pursuant to the Best Practices of the Oil Industry and the Applicable Laws and Regulations, except, in any case, for the provisions in article 47, paragraph 3, of Law No. 9,478/1997. SECTION THIRTEEN – INDIVIDUALIZATION OF PRODUCTION Production Individualization Agreement The procedure of Individualization of Production of Oil and Gas shall be started under the Applicable Laws and Regulations if it is identified that a Deposit extends beyond the Concession Area. The Agreement and the Commitment for individualization of production shall be prepared under the Applicable Laws and Regulations.

Oil and Gas Losses and Burning of Natural Gas. The losses of Oil or Gas occurred under the responsibility of the Concessionaire, as well as burning of Gas in flares, shall be included in the Total Production Volume to be calculated for purposes of payment of the Government and Third-Party Shares, without prejudice to the provisions in Section Twenty-Nine and Section Thirty. Burning of Gas in flares shall be allowed only for reasons of safety, emergency, and commissioning, and shall be restricted to volumes previously and formally approved by ANP, pursuant to the Best Practices of the Oil Industry and the Applicable Laws and Regulations, except, in any case, for the provisions in article 47, paragraph 3, of Law No. 9,478/1997. SECTION THIRTEEN – INDIVIDUALIZATION OF PRODUCTION Production Individualization Agreement The procedure of Individualization of Production of Oil and Gas shall be started under the Applicable Laws and Regulations if it is identified that a Deposit extends beyond the Concession Area. The Agreement and the Commitment for individualization of production shall be prepared under the Applicable Laws and Regulations.

Oil and Gas Losses and Burning of Natural Gas. The losses of Oil or Gas occurred under the responsibility of the Concessionaire, as well as burning of Natural Gas in flares, shall be included in the Total Production Volume to be calculated for purposes of payment of the Government and Third-Party Shares, without prejudice to the provisions in Section Twenty-Nine and Section Thirty. Burning of Natural Gas in flares shall be allowed only for reasons of safety, emergency, and commissioning, and shall be restricted to volumes previously and formally approved by ANP, pursuant to the Best Practices of the Oil Industry and the Applicable Laws and Regulations, except, in any case, for the provisions in article 47, paragraph 3, of Law No. 9,478/1997. SECTION THIRTEEN – INDIVIDUALIZATION OF PRODUCTION Production Individualization Agreement The A procedure of for Individualization of Production of Oil and Gas shall be started implemented under the Applicable Laws and Regulations if it is identified that a Deposit extends beyond the Concession Area. The Agreement and the Commitment for individualization of production shall be prepared under the Applicable Laws and Regulations.