9.1 Contractor shall carry out Petroleum Operations on the Field on an exclusive basis subject to the provisions of tills Contract. State Body shall take necessary measures to ensure that third party and State Body's operations within the Contract Area shall no unreasonably obstruct, hinder, or unduly delay the Petroleum Operations.
9.2. OPERATORSHIP
9.2.1 (PART 2) on behalf of Contractor shall establish the Operating Company that shall perform Operator's functions before the Date of Transfer of the Operatorship to the Joint Operating Company (JOC) as defined hereunder. Contractor shall not change the Operator without the prior written consent of State Body.
9.2.2 The Date of Transfer of Operatorship shall mean, for the purpose of tills Article, the date occurring (X) years after the (Cost Recovery Date). For the purposes of this Contract Cost Recovery Date shall be the first Day of the Quarter, following the two consecutive Quarters, where for the first time no recoverable costs are carried forward from the previous Quarter in accordance with Sub-Article 18.1.2 of the Contract and subject to the provisions of Annex X.
9.2.3 On the Date of Transfer of Operatorship, Operator designated in accordance with Sub-article 9.2.1 shall transfer the conduct of Petroleum Operations to JOC which shall be established pursuant to the provisions of Addendum Three hereto between (PART 2) and an entity designated by State Body, at least (X) months prior to the Date of Transfer of Operatorship.
9.2.4 The principle terms of the Charter of the Joint Operating Company are stipulated in Addendum X.
9.2.5 The Operator and the Joint Operating Company shall conduct the Petroleum Operations in strict accordance with the provisions of the Contract. The Operator and the Joint Operating Company shall be granted the rights, privileges and authorities under the Contract for the purpose of carrying out Petroleum Operations.
9.3. Operator shall open and maintain a branch and office in (State X). The State Body shall assist the Operator in this respect.
9.4. Contractor and Operator shall diligently conduct the Petroleum Operations in compliance with good international petroleum industry practice.
9.5. Contractor's and Operators activities shall be designed to achieve the efficient and safe production of Petroleum from the Field. The Operator shall ensure that all materials, equipment and facilities used in Petroleum Operations comply with generally accepted engineering norms, are of proper and accepted construction and are kept in good working order throughout the term of the Contract.
9.6. Contractor and Operator shall take all appropriate and necessary measures in accordance with international standards to safeguard the environment and prevent pollution, which may result from Petroleum Operations and minimize the effects of any pollution, which may occur.
9.7. Contractor and Operator shall conduct Petroleum Operations in accordance with the provisions of this Contract and under the general supervision and control of the Joint Management Committee (JMC) referred to in Article 13.
|
|
9.8. Pursuant to Sub-article 9.7., the Operator shall:
9.8.1. Provide the personnel required for the Petroleum Operations, giving first priority to (X) personnel, taking into consideration qualifications and experience.
9.8.2. Adhere to employment and training programmers, which shall aim at the (X) of the Operators manpower within a short period to be defined by the Joint Management Committee.
9.8.3. Utilize Sub-contractors of proven capability and professional experience on competitive basis. However, prior approval shall be obtained before signing for any purchase orders and/or sub-contracts exceeding the following limits:
JMC's approval for purchase orders and Sub-contracts exceeding USD (000.000.000).
State Body's approval for purchase orders and Sub-contracts exceeding USD (X00.000.000).
9.8.4. Prepare and issue reports pursuant to Article 15, and provide any further information as may be reasonably required by the State Body.
9.9. Contractor shall place fixtures and installations inside and outside the Contract Area, as shall be necessary to carry out Petroleum Operations in accordance with the approved Development Plans. Fixtures and installations outside the Contract Area relating to the transportation and export of Crude Oil shall be handed over upon completion and commissioning, to the Transporter designated by the State Body which will be responsible for the operation and maintenance of such fixtures and installations beyond the Transfer Point in accordance with the provisions of Addendum Two hereto and the subsequent Transportation Agreement.
9.10. Operator may exceed the Approved Annual Budget by an amount up to 10% for any item therein, as it may become necessary for fulfillment of the Work Programmer provided that the cumulative excess shall not exceed 5% of the total Annual Budget. The JMC approval shall thereafter be sought.
ARTICLE 10. GAS
10.1. Associated Gas shall not be flared except in accordance with applicable _____ laws and the provisions of this Contract.
10.2. Contractor shall submit to State Body, as part of the Initial and General Field Development Plans, proposed economically and technically feasible schemes for utilization and/or disposal of Gas. For this purpose consideration shall be given to the following alternatives or combination thereof as applicable:
10.2.1 Gas re-injection into the reservoir(s), either for the purpose of pressure maintenance, enhanced recovery or temporary storage;
10.2.2 Gas treatment for delivery to State Body;
10.2.3 Gas processing at a () plant(s);
10.3. Contractor may use, free of charge, the quantity of Gas necessary for Petroleum Operations and for local utilities.
|
|
10.4. All Gas produced from the Field, which is neither used in Petroleum Operations and for local utilities nor re-injected in the Field, shall be delivered to State Body, at delivery point(s) and subject to specifications to be defined in the Initial and General Development Plans.
10.5. Quantities of Gas made available to but not received by State Body may be flared. Gas may also be flared in limited quantities for maintenance purposes and in emergency cases.
10.6. Fixtures and installations built by the Contractor outside the Contract Area related ro the utilization and/or disposal of Gas shall be handed over upon completion and commissioning to the relevant (X) entity designated by State Body, which shall be responsible thereafter for such fixtures and installations.
10.7. All costs and expenses incurred by Contractor in connection with the production. use, re-injection, treatment, delivery, and disposal of gas under tills Contract shall be recovered as Petroleum Costs.