Common use of WORK PROGRAM AND EXPENDITURES Clause in Contracts

WORK PROGRAM AND EXPENDITURES. 4.1 CONTRACTOR shall commence Petroleum Operations hereunder not later than six (6) months after the Effective Date. 4.2 The amount to be spent and the program to be carried out by CONTRACTOR in conducting exploration operations pursuant to the terms of this Contract during the first six (6) Contract Years after the Effective Date and in conducting Petroleum Operations pursuant to the terms of this Contract during the next four (4) Contract Years shall in the aggregate be not less than hereafter specified for each of the Contract Years as follows: G&G Studies & Seismic Reprocessing Five Hundred Thousand United States Dollars (US$500,000) Second Shoot 1,000 Km New Seismic ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ Dollars (US$1,500,000) Third Drill ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ Dollars (US$3,000,000) Fourth G&G Studies Five Hundred Thousand United States Dollars (US$500,000) Fifth Shoot 1,000 Km New' Seismic ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ Dollars (US$1,500,000) Sixth Drill ▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ Dollars (US$4,000,000) Seventh Evaluate Well Results One Million United States Dollars (US$1,000,000) Eighth Drill ▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ Dollars (US$4,000,000) Ninth Evaluate Well Results One Million United States Dollars (US$1,000,000) Tenth G&G Studies One Million United States Dollars (US$1,000,000) TOTAL Eighteen Million United States Dollars (US$18,000,000) CONTRACTOR shall carry out Petroleum Operations during the first three (3) Contract Years, during which period CONTRACTOR shall spend at least Five Million United States Dollars (US$ 5,000,000), called the firm commitment. If during any Contract Year CONTRACTOR should spend less than the amount of money required to be so expended, an amount equal to such under expenditure may, with PERTAMINA's consent, be carried forward and added to the amount to be expended in the following Contract Year without prejudice to CONTRACTOR's rights hereunder. If during any Contract Year CONTRACTOR should expend more than the amount of money required to be so expended, the excess may be subtracted from the amount of money to be so expended by CONTRACTOR during the succeeding Contract Years. 4.3 At least three (3) months prior to the beginning of each Calendar Year or at such other time as otherwise mutually agreed by the Parties, CONTRACTOR shall prepare and submit for approval to PERTAMINA a Work Program and Budget of Operating Costs for the Contract Area setting forth the Petroleum Operations which CONTRACTOR proposes to carry out during the ensuing Calendar Year. 4.4 Should PERTAMINA wish to propose a revision as to certain specific features of said Work Program and Budget of Operations Costs, it shall within thirty (30) days after receipt thereof so notify CONTRACTOR specifying in reasonable detail its reasons therefor. Promptly thereafter, the Parties will meet and endeavor to agree on the revisions proposed by PERTAMINA. In any event, any portion of the Work Program as to which PERTAMINA has not proposed a revision shall insofar as possible be carried out as prescribed herein. 4.5 It is recognized by the Parties that the details of a Work Program may require changes in the light of existing circumstances and nothing herein contained shall limit the right of CONTRACTOR to make such changes, provided they do not change the general objective of the Work Program, nor increase the expenditures in the approved Budget of Operating Costs. 4.6 It is further recognized that in the event of emergencies or extraordinary circumstances requiring immediate actions, either Party may take all actions it deems proper or advisable to protect their interests and those of their respective employees and any costs so incurred shall be included in the Operating Costs. 4.7 PERTAMINA agrees that the approval of a proposed Work Program and Budget of Operating Costs will not be unreasonably withheld.

WORK PROGRAM AND EXPENDITURES. 4.1 CONTRACTOR shall commence Petroleum Operations hereunder not later than six (6) months after the Effective Date. 4.2 The amount to be spent and the program Work Program to be carried out by the CONTRACTOR in conducting exploration operations pursuant to the terms of this Contract during the first six (6) Contract Years after the Effective Date and in conducting Petroleum Operations pursuant to the terms of this Contract during the next four (4) Contract Years following the Effective Date shall in the aggregate be not less than hereafter specified for each of the these ten (10) Contract Years as follows: First G&G Studies & Five Hundred Thousand United States Dollars (US$500,000) Second Seismic Reprocessing Five Hundred Thousand United States Dollars (US$500,000) Second Shoot 1,000 Km New Seismic ▇▇▇ ▇▇Third Drill Two ▇▇▇▇▇ ▇▇▇▇ ▇▇Six Million United States Dollars (US$6,000,000) Fourth G&G Studies One Million United States Dollars (US$1,000,000) ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ Dollars (US$1,500,000) Third Drill ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ Dollars (US$3,000,000) Fourth G&G Studies Five Hundred Thousand United States Dollars (US$500,000) Fifth Shoot 1,000 Km New' Seismic ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ Dollars (US$1,500,000) Sixth Drill ▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ Dollars (US$4,000,0005,000,000) Sixth Shoot 300Mn Seismic Three Million Seven Hundred Fifty Thousand United States Dollars (US$3,750,000) Seventh Drill One Well Five Million Two Hundred Fifty Thousand United States Dollars (US$5,250,000) Eighth Evaluate Well Results One Million United States Dollars (US$1,000,000) Eighth Drill ▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ Dollars (US$4,000,000) Ninth Evaluate Well Results G&G Studies One Million United States Dollars (US$1,000,000) Tenth G&G Studies One Million United States Dollars (US$1,000,000) TOTAL Eighteen Total Twenty Five Million United States Dollars (US$18,000,00025,000,000) CONTRACTOR shall carry out Petroleum Operations during the first three (3) Contract Years, during which period CONTRACTOR shall spend at least Five Seven Million United States Dollars (US$ 5,000,0007,000,000), called the firm commitment. If during any Contract Year CONTRACTOR should spend less than the amount of money required to be so expended, an amount equal to such under expenditure may, with PERTAMINA's ’s consent, be carried forward and added to the amount to be expended in the following Contract Year without prejudice to CONTRACTOR's ’s rights hereunder. If during any Contract Year CONTRACTOR should expend more than the amount of money required to be so expended, the excess may be subtracted from the amount of money to be so expended by CONTRACTOR during the succeeding Contract Years. 4.3 At least three (3) months prior to the beginning of each Calendar Year or at such other time as may otherwise be mutually agreed to by the Parties, CONTRACTOR shall prepare and submit for approval to PERTAMINA a Work Program and Budget of Operating Costs for the Contract Area setting forth the Petroleum Operations which CONTRACTOR proposes to carry out during the ensuing Calendar Year. 4.4 Should PERTAMINA wish to propose a revision as to certain specific features of said Work Program and Budget of Operations Operating Costs, it shall within thirty (30) days after receipt thereof so notify CONTRACTOR specifying in reasonable detail its reasons therefor. Promptly thereafter, the Parties will meet and endeavor to agree on the revisions proposed by PERTAMINA. In any event, any portion of the Work Program as to which PERTAMINA has not proposed a revision shall insofar as possible be carried out as prescribed hereintherein. 4.5 It is recognized by the Parties that the details of a Work Program may require changes in the light of existing circumstances and nothing herein contained shall limit the right of CONTRACTOR to make such changes, provided they do not change the general objective of the Work Program, nor increase the expenditures in the approved Budget budget of Operating Costs. 4.6 It is further recognized that in the event of emergencies emergency or extraordinary circumstances requiring immediate actionsaction, either Party may take all actions it deems proper or advisable to protect their interests and those of their respective employees and any costs cost so incurred shall be included in the Operating Costs. 4.7 PERTAMINA agrees that the approval of a proposed Work Program and Budget of Operating Costs will not be unreasonably withheld.