Common use of UNIFICATION Clause in Contracts

UNIFICATION. 18.1. The Contractor shall notify MEM in a term not exceeding ninety (90) Working Days, after having gathered the sufficient elements which allow inferring that there is a shared Field. Such notification shall contain at least: (i) An underpinned technical analysis which determines the existence of the shared field; (ii) The general characteristics of that shared Field; (iii) The geological, geophysical and other studies used to determine the possible existence of such shared Field, including, if it is the case, the information obtained from the Well drilling by which it is determined that the Field in question exceeds the Contract Area limits; (iv) A Work Program Proposal for the Oil Operations prior to the unification agreement within the Contractor and the third party(ies) involved, and (v) The additional information the Contractor may deem convenient. 18.2. Once MEM has received the notification the following will be performed: (i) MEM will issue in a term no longer than forty-five (45) Working Days counted upon the reception of the corresponding information, the technical opinion about the possible existence of the shared Field and to instruct the Contractor about the unification of a shared Field, and shall request the Contractor and the third party(ies) involved, the information related to the unification agreement. The Contractor will have twenty-four (24) months to send this information. (ii) In case the Contractor does not submit MEM the information mentioned in previous section (i), MEM will determine the terms and conditions under which the unification will be performed. This, during the next Year, counted upon the end the term referred in previous section (i) 18.3. Based in the unification agreement and in the proposal of participation in the Oil Operations, before the unification agreement, as it may correspond, MEM may approve the Operator designated to perform Exploration and production activities in the shared Field area, in a way which the Work Units corresponding to the unified Field may be distributed within the parties as per the participation established in the unification agreement. At the same time, the activities developed to determine the existence of a shared Field shall be considered to accredit the fulfillment of the Minimum Work Program of each exploratory program or the additional exploration work commitments acquired. 18.4. According with what is foreseen in articles 18.1, 18.2 and 18.3 and supposing that the Field is partially located in an area which is not at present considered within an allocation or contract for the Exploration and production, the Contractor shall notify MEM the geological, geophysical and other studies used to determine the existence of such shared Field, including if it is the case, the information obtained from the Well drilling through which is determined that the Field in question exceeds the limits of the Contract Area. The Contractor may continue with the works within the Contract Area, the same which shall be considered in the Exploration Plans and in the Development Plans approved by MEM. For its party, MEM shall determine the juridical instrument which will provide the basis to perform the Oil Operations in the area in which is not in force an allotment or contract for the Exploration and Production. 18.5. Notwithstanding the foregoing, the Contractor may submit for consideration of MEM the areas in which the shared Fields are located. Such proposal will neither be binding, nor grants preferential rights in relation to the award of the resulting Exploration and production contracts.

UNIFICATION. 18.1. The Contractor shall notify MEM in a term not exceeding ninety (90) Working Days, after having gathered the sufficient elements which allow inferring that there is a shared Field. Such notification shall contain at least: (i) An underpinned technical analysis which determines the existence of the shared field; (ii) The general characteristics of that shared Field; (iii) The geological, geophysical and other studies used to determine the possible existence of such shared Field, including, if it is the case, the information obtained from the Well drilling by which it is determined that the Field in question exceeds the Contract Area limits; (iv) A Work Program Proposal for the Oil Operations prior to the unification agreement within the Contractor and the third party(ies) involved, and, (v) The additional information the Contractor may deem convenient. 18.2. Once MEM has received the notification the following will be performed: (i) MEM will issue in a term no longer than forty-five (45) Working Days counted upon the reception of the corresponding information, the technical opinion about the possible existence of the shared Field and to instruct the Contractor about the unification of a shared Field, and shall request the Contractor and the third party(ies) involved, the information related to the unification agreement. The Contractor will have twenty-four (24) months to send this information. (ii) In case the Contractor does not submit MEM the information mentioned in previous section (i), MEM will determine the terms and conditions under which the unification will be performed. This, during the next Year, counted upon the end the term referred in previous section (i) 18.3. Based in the unification agreement and in the proposal of participation in the Oil Operations, before the unification agreement, as it may correspond, MEM may approve the Operator designated to perform Exploration and production activities in the shared Field area, in a way which the Work Units corresponding to the unified Field may be distributed within the parties as per the participation established in the unification agreement. At the same time, the activities developed to determine the existence of a shared Field shall be considered to accredit the fulfillment of the Minimum Work Program of each exploratory program or the additional exploration work commitments acquired. 18.4. According with what is foreseen in articles 18.1, 18.2 and 18.3 and supposing that the Field is partially located in an area which is not at present considered within an allocation or contract for the Exploration and production, the Contractor shall notify MEM the geological, geophysical and other studies used to determine the existence of such shared Field, including if it is the case, the information obtained from the Well drilling through which is determined that the Field in question exceeds the limits of the Contract Area. The Contractor may continue with the works within the Contract Area, the same which shall be considered in the Exploration Plans and in the Development Plans approved by MEM. For its party, MEM shall determine the juridical instrument which will provide the basis to perform the Oil Operations in the area in which is not in force an allotment or contract for the Exploration and Production. 18.5. Notwithstanding the foregoing, the Contractor may submit for consideration of MEM the areas in which the shared Fields are located. Such proposal will neither be binding, nor grants preferential rights in relation to the award of the resulting Exploration and production contracts.