Contract #
ARTICLE 1. DEFINITIONS
ARTICLE 2. SCOPE OF CONTRACT
ARTICLE 3. TERM OF CONTRACT
ARTICLE 4. SIGNATURE BONUS
ARTICLE 5. RELINQUISHMENT
ARTICLE 6. MINIMUM WORK AND EXPENDITUREOBLIGATIONS
ARTICLE 7. STATE BODY'S ASSISTANCE
ARTICLE 8 TERMINATION
ARTICLE 9 - CONDUCT OF PETROLEUM OPERATIONS
ARTICLE 10. GAS
ARTICLE 12. APPROVAL PROCEDURE
ARTICLE 13 JOINT MANAGEMENT COMMITTEE
ARTICLE 14. DATA AND SAMPLES
ARTICLE 15. REPORTS AND RECORDS
ARTICLE 16. ACCESS AND INSPECTION
ARTICLE 17. MEASUREMENT, TRANSPORT AND DELIVERY
ARTICLE 18. COST RECOVERY AND PRODUCTION SHARING
ARTICLE 19. VALUATION OF COMMERCIAL OIL
ARTICLE 20. BOOKS OF ACCOUNT, ACCOUNTING AND AUDIT
ARTICLE 21. EXCHANGE AND CURRENCY CONTROL
ARTICLE 22. TITLE TO ASSETS
ARTICLE 23. TAXES
ARTICLE 24. LIABILITY AND INSURANCE
ARTICLE 25. IMPORT AND EXPORT
ARTICLE 26. TRAINING
ARTICLE 27. PARTICIPATION
ARTICLE 28. ASSIGNMENT
ARTICLE 29. LAWS AND REGULATIONS
ARTICLE 30. LOCAL GOODS AND SERVICES
ARTICLE 31. FORCE MAJEURE
ARTICLE 32. ENTIRE AGREEMENT
ARTICLE 33. AMENDMENTS
ARTICLE 34. CONFIDENTIALITY
ARTICLE 35. TITLES AND HEADINGS
ARTICLE 36. LANGUAGES
ARTICLE 37. CONTRACTOR'S OFFICE IN
ARTICLE 38. GOVERNING LAW
ARTICLE 39. SETTLEMENT OF DISPUTES - ARBITRATION
ARTICLE 41. COMING INTO FORCE
This Contract is made, signed and entered into, on this __ day of __200_ by and between:
(PART 1), (State Body of State X) (hereinafter referred to as"State Body") of the one part, and
(PART 2) being a legal entity, established and existing under thelaws of the (Y) with office in ______________,
(PART 3) being a legal entity, established and existing under thelaws of the (Z) with office in ______________
being collectively referred to hereinafter as"Contractor", of the other part.
State Body and Contractor are referred to hereinafter eitherindividually as "Party" or collectively as "Parties".
WHEREAS, (State X) is the sole owner of all natural resources withinits territory and offshore areas and has the exclusive right to explore,develop, extract, exploit and utilize the natural resources there from; and
WHEREAS, the State Body of Oil is the Governmental body concernedand entrusted with 9 exploration, development and production of Petroleumwithin (State X): and
WHEREAS, the Contractor is of sound financial standing and possessestechnical competency to can out development and production and generally alland any Petroleum Operations as hereinafter defined: and
WHEREAS, the Parties mutually declare that they have the powerauthority and desire to enter into this Development and Oil Production Contractin relation to the Second Stage of (X oilfield) as defined herein.
NOW THEREFORE, and in consideration of the premises and the mutualcovenants hereinafter set out, the Parties agreed as follows:
ARTICLE 1. DEFINITIONS
Except as specifically provided otherwise herein, any reference toan Article, Sub-Article, Annex or Addendum shall be construed as reference toan Article, Sub-Article, Annex or Addendum of this Contract.
In this Contract words in the singular include the plural and viceversa, and except where the context otherwise requires, the following termsshall have the meanings set out as follows:
1.1 "Accounting Procedure" means the accounting proceduresand requirements set out in Annex X.
1.2 "Affiliate" means, with respect to any Company, anylegal entity which:
Controls that Company;
is controlled by that Company;
or is controlled by a legal entity which in its turn controls or iscontrolled by that Company.
To "control" means to determine and pursue the policy ofan organization, enterprise or legal entity by way of direct or indirectcontrol over 50% (fifty per cent) or more of the shares or votes in suchorganization.
1.3 "Appraisal" or "Appraisal Operations" shallinclude (but not be limited to) such geological, geophysical, aerial and anyother surveys and any interpretation of data relating thereto and the drillingof such shot-holes, core holes, stratigraphic rests, holes for the appraisal ofPetroleum and other related holes and wells, the production testing and thepurchase or acquisition of such supplies, materials and equipment therefore.
1.4 "Approval" or "Approved" means the approvalof the State Body in written form.
1.5 "Average Daily Production" means the total cumulativeproduction of Crude Oil for a certain period of time divided by the number ofcalendar days in that period of time.
1.6 "Barrel" means a quantity consisting of forty-two (42)United States Gallons under one (1) atmosphere of pressure and temperature ofsixty (60) degrees Fahrenheit.
1.7 "Budget" means itemized expenditures and costs ofPetroleum Operations related to an Annual Work Program.
1.8 "Calendar Year" means a period of twelve (12) consecutivemonths commencing with the first day of January and ending the last day ofDecember, according to the Gregorian calendar.
1.9 "Contract Area" means the development and productionarea covered by this Contract, as described in Annex X and outlined in the mapwhich constitutes Annex Y. In case of difference between Annex X and Annex Ythe coordinate description in Annex X shall prevail.
1.10 "Contractor" means, at the Effective Date, (PART 1) and(PART 2), and at any time thereafter shall include their legal successors andpermitted assigns.
1.11 "Crude Oil" means all hydrocarbons regardless ofgravity which are produced and
saved from the Field in liquid state at atmospheric pressure,including asphalt, tar and the liquid hydrocarbons known as distillates andcondenses obtained from Natural Gas.
1.12. "Commercial Oil" means part of the Net Productiontransported, commingled with other crudes, measured at the Delivery MeasurementPoint (DMP) and delivered to the Contractor at the Delivery Point in accordancewith the provisions of Articles 18 and 19 and Addendum Two.
1.13. "Commercial Oil Price" means the price of one Barrelof Commercial Oil Free on Board (FOB, Incoterms-2000) at the Delivery Point,computed in accordance with the provisions of Article 19.
1.14. "Delivery Point" or "DP" means the point (s)at the loading flanges of the (X) loading terminal (s) in the Arabian Gulf whereContractor's entitlement of Commercial Oil under this Contract shall bedelivered.
1.15 "Development Operations" means any and alloperations, including primary and subsequent (secondary, tertiary or other) recoveryprojects and pressure maintenance, conducted with a view to developing theField including, but without limitation: the drilling of evaluation, appraisal,production and injection wells; the engineering, building and erecting orlaying of production plants and construction of the facilities (such as withoutlimitation: separators;
Compressors; generators; pumps and tankage; gathering lines; pipelines;and all facilities required to be installed for production, pressuremaintenance, and treatment, storing and transporting of Petroleum, and loadingthe same into seagoing tankers); the obtaining of such materials, equipment,machinery, articles and supplies as may be required or expedient for the aboveactivities; and all auxiliary operations, activities; and services required orexpedient for the better conduct or result of the above activities, all inaccordance with sound oil field and economic practices.
1.16. "Development Plan" means scheduled programmer and costestimate specifying the ...
