Common use of Target Dates Clause in Contracts

Target Dates. In the performance of Petroleum Operations under this Contract, on the condition that there are no unexpected hindrances or other problems, as well as assuming the successful conclusion of various agreements, most of which require the cooperation of Third Parties, and that the other items listed in this Article X below are accomplished in a timely manner, the Parties, acting in a spirit of good faith, mutual cooperation and reason and in accordance with good international Petroleum industry practice in conducting Petroleum Operations, anticipate that the following target dates may be achievable to implement the below-mentioned main stages of the project for the development of the Contract Area: (a) Early Oil Production to commence within eighteen (18) months after the Effective Date; (b) First production from the Full Field Development to commence within forty-eight (48) months after the Effective Date; and (c) First delivery of Crude Oil into the Main Export Pipeline within fifty-four (54) months after the Effective Date. The Parties agree that based on current knowledge the achievement of the above target dates would result in the optimum economic result for the Parties. It is recognized by the Parties that such target dates (or such other target dates as the Parties may agree as hereinafter provided) are best estimates and do not constitute obligations of the Contractor. The implementation of the work shall be reviewed periodically by the Parties and if appropriate reasons exist such target dates shall be modified, if required, by mutual agreement of the Parties. However, SOCAR retains the right to arbitration in the event Contractor should fail to conduct Petroleum Operations in accordance with the terms of this Contract (including Articles 10.1(a), (b) and (c)) in a diligent, safe and efficient manner and in accordance with generally accepted principles of the international petroleum industry.