34;Execution Date" means the date on which this contract is signed by the Government and the contractor;. Initial Exploration Period" means the period of two (2) contract years commencing on the effective date of the contract, as defined in sub-clause 2 (1) ;.
TERM, EXPLORATION OBLIGATIONS AND TERMINATION 2. TERM
- SURRENDER (1) The Contractor shall surrender
- MINIMUM EXPLORATION WORK AND EXPENDITURE OBLIGATIONS
- Minimum Work and Expenditure Obligations
- SIGNATURE BONUS AND SURFACE FEES
- TERMINATION AND WITHDRAWAL
Search Period The Minister, upon the written request of the Contractor made no later than three (3) months before the expiration of this additional search period, unless the Parties have agreed on another notice period, will extend the period to which the work is done. be completed expeditiously, which in no case shall extend that period for more than four (4) months. 6) This Contract shall automatically expire at the end of the Initial Exploration Period or at the end of any Additional Exploration Period as extended in accordance with this Contract, excluding any development area. In each contract year of the initial exploration period or any additional exploration period, for the purpose of comparing the actual costs incurred and paid by the Contractor with the minimum exploration costs, the actual costs incurred and paid by the Contractor for seismic and drilling operations of exploration wells during that contract year will be converted to constant US dollars by dividing the costs by the discount rate.
RIGHTS AND OBLIGATIONS OF THE CONTRACTOR 7. RIGHTS OF THE CONTRACTOR
- GENERAL STANDARDS OF CONDUCT
- JOINT LIABILITY AND INDEMNITY
- WELLS AND SURVEYS
- OFFSHORE OPERATIONS
- FIXTURES AND INSTALLATIONS AND TITLE TO ASSETS
- LOCAL EMPLOYMENT, TRAINING AND COMMUNITY DEVELOPMENT PROJECT
- DATA AND SAMPLES
- REPORTS
In the event that the Petroleum operations undertaken under this sub-clause 10 (7) result in a discovery which the Contractor elects to evaluate and/or develop as a commercial field, the Contractor shall pay the Government Six hundred percent (600% ) reimburse the costs and expenses incurred by the Government for carrying out the operations and such amount shall be paid within thirty (30) days from the notification made by the Contractor. In addition to the obligation in terms of subclause 13(1) and which begins on the Effective Date, the Contractor must for the purposes of section 11 of the Act.
RIGHTS AND OBLIGATIONS OF THE GOVERNMENT AND THE MINISTER 16. RIGHTS OF THE GOVERNMENT
OBLIGATIONS OF THE GOVERNMENT
Upon expiry or termination of this Contract details of the Petroleum Operations including all the matters described in paragraphs (a) to (d); and. f) All information required by clause 14 has not been provided so far.
WORK PROGRAMME, DEVELOPMENT AND PRODUCTION 18. EXPLORATION WORK PROGRAMME
- DISCOVERY AND EVALUATION WORK PROGRAMME
- DEVELOPMENT PLAN AND DEVELOPMENT WORK PROGRAMME
- UNITISATION
- MARGINAL AND NON-COMMERCIAL DISCOVERIES
- NATURAL GAS
- PRODUCTION LEVELS AND ANNUAL PRODUCTION PROGRAMME
- MEASUREMENT OF PETROLEUM
- VALUATION OF CRUDE OIL AND NATURAL GAS
- GOVERNMENT PARTICIPATION
- DOMESTIC CONSUMPTION
- PREFERENCE TO KENYAN GOODS AND SERVICES
- EXPORTS AND IMPORTS
- EXCHANGE AND CURRENCY CONTROLS
Any such surrender by the Contractor shall be credited in accordance with sub-clause 3(3) hereof. Minister proving the payment of such tax shall correspond to the amount of tax payable on behalf of the Contractor by the Government. All taxes paid by the Government in the name and on behalf of the Contractor shall be deemed to be income to the Contractor for the Fiscal Year to which the tax payments relate.
The price paid by the Contractor for the government share in Profit Oil is the price determined in accordance with Article 26.
GENERAL 34. PAYMENTS
- ASSIGNMENT
- MANAGER, ATTORNEY AND JOINT OPERATION AGREEMENT
- CONFIDENTIALITY
- FORCE MAJEURE
- WAIVER
- GOVERNING LAW
- ARBITRATION
- NOTICES
- HEADING AND AMENDMENTS
After the Effective Date, all public announcements by the Contractor regarding the Petroleum Activities shall be made through the Contractor with the approval of the Government. A waiver of an obligation of the Contractor must be made in writing, signed by the Minister. FTA is the amount to be accrued for future cleanup and decommissioning costs related to the calendar quarter in question.
AFB is the estimated balance of the abandonment and decommissioning cost at the end of the previous calendar quarter.
BLOCK CORNER COORDINATES
GENERAL PROVISIONS 1.1 - Interpretation
COSTS, EXPENSES, EXPENDITURE AND CREDITS OF THE CONTRACTOR 2.1 - Surface rights
FINANCIAL REPORTS TO THE MINISTER
GENERAL PROVISIONS
The Contractor shall maintain financial accounts necessary to record the transactions relating to Petroleum Operations in reasonable detail which shall be prepared in accordance with generally accepted standards of the international petroleum industry, as more specifically but not exclusively set forth in this Accounting Procedure . The Contractor shall provide details of the financial accounts in the form of monthly statements reflecting - (a) all costs and credits relating to Petroleum operations;. All adjustments resulting from an agreed audit will be corrected immediately in the Contractor's accounts.
At the request of the Minister, the contractor appoints an independent auditor with an international reputation, approved by the Minister, to annually audit the accounts and records of petroleum activities and report thereon, and the costs of such audit and report shall be charged to the joint Account and the costs reimbursed.
COSTS, EXPENSES, EXPENDITURE AND CREDITS OF THE CONTRACTOR
PARTICIPATING INTERESTS
In the event that a Party assigns in whole or in part its Participating Interest pursuant to Clause 35 of the Contract and Article 9 of this Participation Agreement, the Parties' Participating Interests herein shall be revised accordingly.
OPERATOR AND DUTIES OF OPERATOR
The operator shall fulfill the reporting obligations of the Contractor as specified in the [Contract] unless otherwise stipulated in this Participation Agreement and the Contract. Representatives may bring advisers they deem necessary to meetings of the operating committee. The operator shall, when a representative of any party so requests, convene a meeting of the operating committee.
Unless unanimously agreed at least sixty (60) days before the beginning of the year, the operator shall call a meeting of the operating committee to discuss and approve a participation work program and budget for the following year and such work program and budget shall be approved not later than thirty (30) days before the commencement of such year and the decision of the operating committee shall bind the parties.
PAYMENTS TO OPERATOR
A non-operator must pay his share of an expense related to the petroleum operations within fifteen (15) days of receipt of the bill from the operator. A lien may be exercised by a non-defaulting party by collecting the amount due from a purchaser of petroleum and the operator's statement of the amount due shall be evidence thereof. Any payments received from a defaulting party will be credited to the accounts of the non-defaulting parties who advanced funds on behalf of the defaulting party.
Unless otherwise approved by the operating committee, the operator must purchase, at the parties' joint expense, only such material and equipment as is reasonably required in the operation, which is set out in the approved.
DISPOSAL OF PRODUCTION
In this section, conveyance means the transfer, assignment, sale or other disposition of a party's interest. The Contractor shall use its best efforts to comply with such request, but in the event that the Contractor is unable to obtain such crude oil, then the Contractor shall assist the Government in good faith to market such crude oil at the price, the best terms and conditions. available in the international market for the sale of such crude oil. In the event of production of associated natural gas or any discovery of natural gas, the parties shall agree on appropriate procedures for the disposal of any available natural gas under this Participation Agreement and the Contract.
SOLE RISK OPERATIONS
Each risk-only project is carried out at the sole risk, expense and expense of the risk-only parties and in the proportion of their respective interests. An exclusive-risk project is carried out by the operator on behalf of the exclusive-risk parties on the basis of the provisions of this participation agreement. No risk project may be started after one hundred and eighty (180) days after the expiry of the notice period prescribed in Article 11(3), but the operator shall commence work as soon as reasonably practicable after the seventy-two (72) hours' notice period, as provided for in Article 11(3) shall apply.
In connection with any risk project. (a) the risk-only project will be implemented under the overall supervision and control of the risk-only parties, instead of the operating committee;
CONFIDENTIALITY
Pursuant to the provision of Article 11(10) below, the exclusive risk project, including the data and information, shall be wholly owned by the exclusive risk parties in accordance with the provisions of the contract, but the exclusive risk parties shall notify the other parties. about the project. In the event that such Project results in an increase in oil production in the Participating Area, the share of such increase available to the Contractor shall be owned solely by the Risk Parties. In the case of a project pursuant to Article 11(2)(a) hereof..percentage (..%) of the sole risk costs of such project, plus one hundred percent (100%) of the operating costs of such well. held exclusively by risky customers.
In the case of a project under Article 11(2)(b), this... percent (..%) of the exclusive risk cost of such project, plus one hundred percent (100%) of the operating costs of such facilities .
LIABILITY
A party that discloses information to a person described in paragraph (1) (e) or (f) must notify the other parties in writing ten (10) days in advance. The parties shall consult with each other prior to issuing any public statement or press release and, except to the extent required by law, rule or regulation of any governmental authority or stock exchange, neither party shall make any public statement or press release without the approval of all other parties, which shall not be unreasonably withheld. The Controller will use its best efforts to coordinate all such public statements so that all parties can issue simultaneous press releases.
The obligations of the parties under this Article 12 are continuing obligations and any party that ceases to be a party to this Agreement shall continue to be bound by this Article until this Agreement ceases to have effect between the remaining parties and the Contract has expired.
GOVERNING LAW
ARBITRATION
FORCE MAJEURE
When a party disputes the existence of force majeure, that dispute may be referred to arbitration as provided in clause 44 of the contract.
NOTICES
TERM
No Party may invoke force majeure as a reason for failure to make timely payment of amounts pursuant to this participation agreement. All the participating interests belong to one party; or (c) expiration or termination of the Contract. Before this Participant Agreement is terminated, a final accounting and settlement of the Joint Account must take place.
FINAL PROVISIONS
The Operator shall bill the Non-Operator(s) on or before the last day of each month for their pro rata share of the expenses for the preceding month. Payment of invoices by non-operators shall be without prejudice to the right of any non-operator(s) to protest or question their correctness; however, all invoices and statements provided to the non-operator(s) by the operator during each year must. The Operator shall make such refund fifteen (15) days after the date of such notification.
All adjustments resulting from an audit agreed between the operator and the non-operator performing the audit will be immediately corrected in the joint account by the operator and reported to the other non-operator.
