尼日利亚石油区块勘探开发服务合同 英文

尼日利亚石油区块勘探开发服务合同（合资经营）（英文）SERVICECONTRACTbetweenNIGERIANPETROLEUMDEVELOPMENTCOMPANYLIMITED（NPDC）andCOTRACTORforTHEEXPLORATIONANDDEVELOPMENTOFXXXBLOCKSINNIGERIACONTENTSARTICLE1DEFINITIONSARTICLE2PAYMENTOFPRE-DEVELOPMENTCOSTARTICLE3DURATIONOFTHECONTRACTARTICLE4RIGHTSANDOBLIGATIONSOFTHEPARTIESARTICLE5POWERSANDOBLIGATIONSOFTHEOPERATORARTICLE6CONDUCTOFJOINTOPERATIONSARTICLE7PROJECTMANAGEMENTCOMMITTEEARTICLE8FUNDINGOFPETROLEUMOPERATIONSARTICLE9EXPLORATIONANDDEVELOPMENTPROGRAMMEANDBUDGETSARTICLE10RECOVERYOFPETROLEUMOPERATIONSCOSTSANDCRUDEOILALLOCATIONARTICLE11VALUATIONOFAVAILABLECRUDEOILARTICLE12PAYMENTSARTICLE13TITLETOEQUIPMENTARTICLE14UTILISATIONOFNATURALARTICLE15TRAININGOFNPDCPERSONNELARTICLE16SUB-CONTRACTORSARTICLE17BOOKS,ACCOUNTSANDAUDITINGARTICLE18TAXES,ROYALTIES,RATESANDDUESARTICLE19INSURANCEARTICLE20CONFIDENTIALITYANDPUBLICANNOUNCEMENTSARTICLE21FORCEMAJEUREARTICLE22LAWSANDREGULATIONSARTICLE23ARBITRATIONANDCONCILIATIONARTICLE24REPRESENTATIONSANDWARRANTIESARTICLE25TERMINATIONARTICLE26NOTICESARTICLE27GENERALPROVISIONSARTICLE28TRANSFEROFPROPERTYUPONTAKEOVEROFOPERATORSHIPBYNPDCARTICLE29COMMUNITYRELATIONSANNEXACONTRACTAREAANNEXBCONDUCTOFJOINTOPERATIONSANNEXCACCOUNTINGPROCEDUREANNEXDALLOCATIONPROCEDUREANNEXEUNIFORMNOMINATION,SHIPSCHEDULINGANDLIFTINGPROCEDUREANNEXFPROCUREMENTANDPROJECTIMPLEMENTATIONPROCEDURESANNEXGFORMOFPARENTCOMPANYGUARANTEESERVICECONTRACTBETWEENNIGERIANPETROLEUMDEVELOPMENTCOMPANYLIMITEDandCONTRACTORforTHEEXPLORATIONANDDEVELOPMENTOFXXXBLOCKSINNIGERIATHISAGREEMENTismadethisthedayofYEARBETWEENNIGERIANPETROLEUMDEVELOPMENTCOMPANYLIMITED,acompanyincorporatedunderthelawsofNigeriaasasubsidiarycompanyoftheNigerianNationalPetroleumCorporation("NNPC”)havingitsregisteredOfficeat62,SapeleRoadBeninCity(hereinaftercalled“NPDC”whichexpressionshallwherethecontextsoadmits,includeitssuccessorsandassigns)oftheonepart;ANDCONTRACTOR,acompanyincorporatedunderthelawsofwhoseregisteredofficeisat(hereinaftercalled“CONTRACTOR”whichexpressionshall,wherethecontextsoadmits,includeitssuccessorsandassigns)oftheotherpart.WHEREASNPDCistheholderandisentitledtoholdtheOilMiningLeases(OMLS)XX,XX;WHEREASNPDCintendstoexploreanddeveloptheoilminingleasesXX,XX;WHEREASNPDChastheright,powerandauthoritytoenterintothisServiceContract;WHEREAStheCONTRACTORrepresentsthatithastechnicalcompetenceandprofessionalskillsnecessarytoexploreanddeveloptheoilminingleases,andhasagreedtoprovidethefundsforcarryingouttheexplorationanddevelopmentoperationsandfurtheragreedtoconductthesaidoperationsjointlywithNPDCwithaviewtotransferringtherequisitetechnologytoNPDC.NOWthereforeinconsiderationofthepremisesandmutualcovenantshereincontained,thePartiesherebyagreeasfollows:ARTICLE1DEFINITIONSInthisContract,includingtherecitalsandtheAnnexesattachedheretounlessthecontextotherwiserequires,wordsandexpressionsusedshallbearthemeaningsstatedherein:“AccountingProcedure”meanstherulesandproceduressetforthinAnnex"C”attachedheretoandformingpartofthisContract;“AffiliateorAffiliatedCompany”meansacompanyorotherentitythatcontrolsoriscontrolledbyaParty,oracompanyorotherentitywhichcontrolsoriscontrolledbyacompanyorotherentitywhichcontrolsaParty;andforthepurposeofthisdefinition,controlmeansownershipbyonecompanyorentityoftleastfifty-onepercent(51%)of:thevotingstock,iftheothercompanyisacompanyissuingstockorthecontrollingrightsorinterestiftheotherentityisnotacompany.“AvailableCrudeOil”meanstheCrudeOiljointlywonandsavedfromtheContractArea.“Barrel”meansaquantityorunitofCrudeOil,equaltoforty-two(42)UnitedStatesgallonsatthetemperatureofsixtydegrees(60o)Fahrenheitatnormalatmosphericpressure.“Budget”meansthecostestimateofitemsincludedinWorkProgramme.“CAPEX”meansthecostsreferredtoinArticleII,paragraph2ofAnnex"C”ofthisContract.“CommercialDiscovery”shallmeananyDiscoveryintheContractAreawhichtheProjectManagementCommitteeagreestodevelopandexploitpursuanttothetermsofthisServiceContract.“CommercialProduction”meanscombinationofproductionofthefirstOneHundredThousand(100,000)BarrelsofCrudeOilfromtheContractArea.“Contract”meansthisServiceContractincludingtheAnnexesattachedhereto.“ContractArea”meanstheareacoveredbytheXXXXBLOCKSasdescribedinAnnex“A”hereto.“ContractDuration”meanstheperiodreferredtoinArticle3.“ContractYear”meansaperiodoftwelve(12)consecutivecalendarmonthsfromtheEffectiveDateofthisContractorfromtheanniversaryoftheEffectiveDate.“CONTRACTOR”means.“CostOil”meansthequantumofAvailableCrudeOilallocatedtothePARTIEStoenablethemtogeneratetheProceedstorecoverallnon-capitalcostsandqualifiedcapitalcostssustainedtocarryoutPetroleumOperationsunderthisServiceContract,asspecifiedintheAccountingProcedure.“CrudeOil”meansmineraloilinitsnaturalstatebeforeithasbeenrefinedortreated(excludingwaterorotherforeignsubstances).“DateofCommencementofCommercialProduction”means,thedateonwhichOneHundredThousand(100,000)BarrelsofCrudeOilisfirstproducedfromtheContractArea.“Discovery”meansthefinding,bydrilling,ofanaccumulationofhydrocarbonwhoseexistenceuntilthatmomentwasunknownornotconfirmed.“EffectiveDate”meansthedateoftheexecutionofthisServiceContractbythePartiesheretobeingthedayandyearfirstabovewritten.“ExplorationandDevelopment”meansPetroleumOperationsundertakenintheContractAreapursuanttotheExplorationandDevelopmentProgrammeapprovedinaccordancewithArticle9hereof.“ExplorationandDevelopmentCosts”meansthecostofexplorationanddevelopmentalactivities,includingbutnotlimitedto:dataacquisition,dataprocessing,datainterpretation,basinanalysis,exploration,appraisal,drilling,testing,completing,capping,pluggingandabandoning,development,waterinjectionorgasinjectionwells,theconstructionandinstallationoffacilitiesandequipmentrequiredfortheproduction,storagetransportationanddeliveryandevacuationofhydrocarbonsaswellastheinstallationofsecondaryrecoveryfacilities.“FinancialYear”meansaperiodoftwelve(12)calndarmonthsfromthe1stdayofJanuarytothe31stdayofDecember.“FirstOil”meansfirstbarrelofCrudeOilproducedfromCommercialDiscoveryforthepurposeoflifting.“FixedAssets”meansimmovablepropertyandincludemovableproperty,whihasbeenaffixed,installed,constructedorattachedtoimmovablepropertyaspartofthefacilitiesutilizedforcarryingoutPetroleumOperations.“ForeignExchange”meanscurrencyotherthanthatofNigeriathatisacceptabletobothNPDCandCONTRACTOR.“GrossNegligence”meansanyactorfailuretoactbytheOperatorwhichwasintendedtocauseorwhichwasinrecklessdisregardowrantonindifferencetotheharmfulconsequencesthattheOperatorkneworshouldhaveknownsuchactorfailurewouldhaveonsafety,lifeorpropertyandapprovedoperations.“LIBOR”meanstheone-monthtermLondonInter-BankOfferRateforU.S.Dollarsforsimilaramountstothesumsinquestion,quotedbyNationalWestminsterBankinLondonat11:00a.m.onthefirstbusinessdayoftherelevantperiod.IftheNationalWestminsterBankisunableorfailstosupplysuchdailyquotation,thatofBarclaysBankInternationalLtd.willbeused.“MarketPrice”meanstheOfficialSellingPrice(OSP)oftheCrudeOilproducedfromtheContractAreainUSDollarsperbarrel,inaccordancewiththeNNPC'smonthlypublishedpriceforthedifferentgradesofCrudeOil.“NaturalGas”meansallgaseoushydrocarbonsproducedinassociationwithCrudeOilorfromreservoirs,whichproduceonlygaseoushydrocarbons.“OfficialSellingPrice”meansapricesetbyNNPConmonthlybasisafterreviewingthemarkercrudepriceoveraperiodofthirty(30)daysandaddingorsubtractingadifferentialbetweenmarkercrudeandNigeriancrudebasedonmarketfactors.“Operator”meansCONTRACTORutilizingateamconstitutedbypersonnelofthePartiestojointlyexplore,developandoperatethefieldslocatedwithintheXXXXBLOCKSundertheProjectManagementCommittee,untilNPDCexercisesitsrightsassetoutinArticle6.5.Thereafter,the“Operator”shallmeanNPDCutilizingateamconstitutedbypersonnelofthePartiestojointlyexplore,developandoperatethefieldslocatedwithintheXXXXBLOCKSundertheProjectManagementCommitteetilltheexpirationofthisContract.ForpurposeofthisContract“Operator”whenusedatanyparticulartimeshallbedeemedtomeantherelevantPartyattherelevanttimecarryingoutthedutiesoftheOperator.“ParentCompanyGuarantee”meanstheguaranteeexecutedundersealbyChinaPetrochemicalCorporation(theGuarantor)beingtheparentcompanyoftheCONTRACTORwherebytheGuarantorabsolutely,irrevocablyandunconditionallyagreesandundertakestoguaranteetoNigerianPetroleumDevelopmentCompany(NPDC)anyandalloftheobligationsoftheCONTRACTORpursuanttothetermsofthisContractincludingwithoutlimitationtheobligationtoprovidefundsandsuchguaranteeshallbemadeandsubmittedtoNPDCinphasesaspertheagreementreachedbyCONTRACTORandNPDCfortheprovisionofrequiredfundsagreedfromtimetotimeforthePetroleumOperations.EachguaranteetobesubmittedshallspecifytheguaranteedamountandshallbeinaccordancewiththeFormofParentCompanyGuaranteeattachedtothisServiceContractasAnnexG.“Party”meansNPDCorCONTRACTOR.“Parties”meansbothNPDCandCONTRACTOR.“PetroleumOperations”meansallexploration,appraisal,development,production,operations,abandonment/decommissioning,transportationandcrudeterminatingactivitiesfororwithrespecttotheContractArea.“PetroleumOperationsCosts”meansexpendituresmadeandobligationincurredbyPARTIESincarryingoutPetroleumOperationsasdeterminedinaccordancewiththisContractandtheAccountingProcedure.“PetroleumProfitTax”“PPT”meansthetaxobligationsarisingfromthePetroleumOperationsunderthisContractpursuanttothe“PetroleumProfitTax”Act1959Cap354lawsoftheFederationofNigeria1990,asamended(PPTAct).“Proceeds”meanstheamountinU.S.DollarsdeterminedbymultiplyingtheOfficialSellingPrice(OSP)bythenumberofBarrelsofAvailableCrudeOil.“ProductionCosts”meansallcostsincurredincarryingoutProductionOperations.“ProductionOperations”meansalloperationscarriedoutsubsequenttoDevelopmentinordertoproduce,treat,store,conveyanddeliverCrudeOilfromwells,platformsandfacilitiestoarefinery,terminalorotherutilisationormarketingpoint.“ProfitOil”meansthebalanceofAvailableCrudeOilaftertheallocationofRoyaltyOil,CostOilandTaxOil.“ProjectManagementCommittee”meanstheCommitteeestablishedbyNPDCandCONTRACTORtocarryoutthefunctionssetoutinArticle7ofthisContract.“Quarter”meansthetimeintervalfrom:January1sttoMarch31stinclusive,April1sttoJune30thinclusive,1stJulyto30thSeptemberinclusive,October1sttoDecember31stinclusive.“Royalty”meanstheamountpayablepursuanttothePetroleumAct1969andPetroleum(DrillingandProduction)Regulations1969Cap350lawsoftheFederationofNigeria1990,asamended.“RoyaltyOil”meansthequantumofAvailableCrudeOilallocatedtoNPDCwhichwillgenerateanamountofProceedsequaltotheactualpaymentofRoyalty.“TaxOil”meansthequantumofAvailableCrudeOilallocatedtoNPDCwhichwillgenerateanamountofProceedsequaltotheactualpaymentofPPT.“U.S.Dollars”meansthecurrencyoftheUnitedStatesofAmerica.“WilfulMisconduct”meansinrelationtotheOperator,anintentional,conscious,reckless,andwantondisregardof:anymaterialprovisionofthisContract;oranysubstantialpartoftheWorkProgrammeascontainedinArticle9.“WorkProgramme”meansfortheapplicableperiodastatementitemizingthePetroleumOperationstobecarriedoutintheContractArea.“WorkingCapital”meansthefundsrequiredtoconductPetroleumOperations.“Year”meansaperiodoftwelve(12)consecutivemonthsaccordingtotheGregoriancalendar.ARTICLE2PAYMENTOFPRE-DEVELOPMENTCOSTNPDCacknowledgesCONTRACTOR’sobligationtopayapre-developmentcostofTwentyMillionOneHundredThousand(20,100,000)U.S.DollarstoNPDC,inphases,asfollows:2.1.1Phase1:AsumofSixMillionFiveHundredThousandUSDollars($6,500,000)shallbepaidintoanaccountdesignatedbyNPDCwithinForty-Five(45)daysoftheEffectiveDateofthisContract.2.1.2Phase2:AsumofEightMillionOneHundredThousandUSDollars($8,100,000)shallbepaidintoanaccountdesignatedbyNPDCattheendofthree(3)yearsofExploration.2.1.3Phase3:AsumofFiveMillionFiveHundredThousandUSDollars($5,500,000)shallbepaidintoanaccountdesignatedbyNPDCattheendoffive(5)yearsofthisContractwhentheprojectentersintoproductionoruponachievingFirstOil,whicheverisearlier.2.2ThepaymentmadebySIPECtoNPDCasstipulatedinArticle2.1shallnotberecoverableasCostOil.2.3IfSIPEC’sInternalRateofReturnfallsbelow13%,SIPECshallpromptlyconsultwithNPDC,makingavailablealleconomicassumptionsutilized,withaviewtowithdrawingfromthisContract.2.4IntheeventthatPartiesdisagreeinrelationtoArticle2.3hereinabove,SIPECshallbeentitledtosubmititsproposaltowithdrawtotheProjectManagementCommittee.ApprovaloftheProjectManagementCommitteeshallnotbeunreasonablywithheld.ARTICLE3DURATIONOFTHECONTRACTThisContractshallremaininfullforceandeffectovertheContractAreafortwenty(20)years,oruntilfullrecoveryoftheexistingreservesofEighteenMillionFiveHundredThousand(18,500,000)BarrelsinKanuskiri/KorugbagbaField,asprovidedbyNPDC,andotherreserveswhichwillbejointlydiscoveredbythePartieswithineight(8)yearsofthisContract,whicheverisearlier.Thereafter,thisContractshallexpireandimmediatelybesucceededbynewtermsandconditionsagreeduponbythePartiesfortheremainingproduciblereserves.SubjecttomutualagreementofthePartiesthisContractcanbeterminatedanytimewheneveritappearsevidentthattheexplorationanddevelopmentactivitiesinOML64and/orOML66referredtoinArticle3.1hereinabovecannotbeeconomicallyattained.ARTICLE4RIGHTSANDOBLIGATIONSOFTHEPARTIES4.1InaccordancewiththisContract,CONTRACTORshall:subjecttoArticle8,provideallfunds,requiredforPetroleumOperationsandallincidentalcostsrelatingthereto;delivertoNPDC,withinonehundredandtwenty(120)daysfromtheEffectiveDate,ParentCompanyGuaranteefromChinaPetrochemicalCorporationcoveringthetotalamountoftheminimumdisbursementrequiredtomeetCONTRACTOR’SminimumobligationforthePetroleumOperationsandadditionalfundswhichCONTRACTmaybeobligedtoprovideinaccordancewithArticle8.2below.CONTRACTORshallcarryoutanagreedannualtrainingprogrammeinaccordancewithArticle15hereof.Inadditiontotheforegoing,CONTRACTORshallalsoprovidefortrainingfacilitiesforNPDC/NNPCstaffwithanannualsumofTwoHundredandFiftyThousand(250,000)USDollarsforaperiodoffive(5)yearsfromtheEffectiveDate,whichamountshallbepaidinJanuaryofeachyearintoanaccountthatshallbenominatedbyNPDCandthisamountshallberecoverablebytheCONTRACTOR.Itishoweverunderstoodthatthefirstyearpaymentshallbemadenotlaterthanforty-five(45)daysaftertheexecutionoftheServiceContract;besubjecttoallNigerianlaws,ordersandregulationsapplicabletoPetroleumOperations;respectalltherightsconcerningindustrialpropertyandindemnifyandholdNPDCharmlessfromandagainstallclaims,loss,damageoractionarisingoutoforresultingfrom,violationofsuchrights.nottransferorassignanyrightsacquiredandobligationsundertakenbyCONTRACTORunderthisContractwithoutpriorwrittenapprovalofNPDC,whichapprovalshallnotbeunreasonablywithheld;indemnifyandholdharmlessNPDC,itsaffiliates,servants,agentsandrepresentativesfromandagainstalllosses,fees(includinglegalfeesandexpenses)ofwhatsoeverkindandnaturewhichNPDCmaysufferorbecompelledtopaytoemployees,representativesoragentsofCONTRACTOR’Ssub-contractorsasaconsequenceofanyfinaldecisiongivenbyaNigeriancourtexceptthatwhereactionsorfailuretoactonthepartofNPDCoritsemployees,agentsorrepresentativescontributedtothelosses,inwhichcasesuchcostsasareattributabletotheactionorfailureonthepartofNPDCshallberecoverablebytheCONTRACTOR;havetherighttolift,inaccordancewithAnnex‘E’，andfreelyexportandretainabroadthereceiptsfromthesaleofAvailableCrudeOilallocatedtoithereunder;havefullaccess,atallreasonabletimesduringusualbusinesshourstoallbooks,records,inventoriesandaccountsofanykindornaturemaintainedbytheNPDCasOPERATORrelatingtoPetroleumOperationsintheContractAreaprovidedthatCONTRACTORgivesnotlessthanseven(7)dayspriornoticeinwriting;havetherightofaccesstotheContractAreaatallreasonabletimestoinspectandobservePetroleumOperationsofeverykindandcharactercarriedonintheContractArea.OperatorshallprovideContractorwithnecessaryfacilitiestogainsuchaccessprovidedthattheprovisionofsuchfacilitiesshallnotundulyinterferewiththeconductofPetroleumOperationsherein;beforethetake-overofPetroleumOperations,pursuanttoArticle6.6hereof,ensurethatthesameareconductedinagoodandworkmanlikemannerandinaccordancewithinternationallyacceptedpetroleumindustrypracticesandwiththeobjectofavoidingwaste,andobtainingmaximumultimaterecoveryofCrudeOilatminimumcost;havetherighttonominatepursuanttoArticle6ofthisContract,professionalstafftooccupydefinedfunctionalpositionsintheagreedorganizationalstructureforjointconductofoperationsforaslongasthisContractsubsists.InaccordancewiththisContract,NPDCshall:withoutprejudicetoArticle4.1(a)10.2(e),providefundswhenitdeemsfitforPetroleumOperationsandallincidentalcostsrelatinghereto;havefullaccess,atallreasonabletimesduringusualbusinesshourstoallbooks,records,inventoriesandaccountsofanykindornaturemaintainedbytheCONTRACTORrelatingtoPetroleumOperationsintheContractAreaprovidedthatNPDCgivestoCONTRACTORnotlessthanseven(7)dayspriornoticeinwriting;havesoletitleandownershipofalllandsacquiredbytheCONTRACTORforthepurposesofPetroleumOperationsundertheContractand,uponcostrecovery,allmovablepropertyusedinPetroleumOperationsincludingalsoalldataresultingfromPetroleumOperationshereunderbutnotlimitedtogeophysical,geologicalandengineeringdata,welllogsandevaluations,statusreportsandanyotherdataorinformationthatmaybeacquiredduringthetermofthisContractaswellasstructurespermanentlyfixedtotheproperty,otherthanfixedassetsacquiredfortemporaryuse.AllsuchpropertiesasarestatedhereinshallbevestedinNPDCandshallbetransferredtoNPDCuponthefullrecoveryofitscosts.Notwithstandingtheforegoing,NPDCherebyundertakesthatitwillnottakeanyactionsresultingfromtherightofownershipandrestrainanyactionsorin-actionswhichwouldinterferewiththecontinuousPetroleumOperationsintheContractArea,providedsuchactionsorinactionshavenotbeendoneinerrorofjudgments,butingoodfaithandinaccordancewiththerequirementoflawsoftheFederationorstandardoilindustrypractice.furnishOperatorwithallgeophysical,geological,drilling,well,productionandotherdataandinformationrelatingtotheContractAreheldbyoravailabletoNPDCatcostofreproductionprevailinginOilIndustry,whichshallbechargedtothePetroleumOperationsCost;havetherightofaccesstotheContractAreaatallreasonabletimestoinspectandobservePetroleumOperationsofeverykindandcharactercarriedonintheContractArea.OperatorshallprovideNPDCwithnecessaryfacilitiestogainsuchaccessprovidedthattheprovisionofsuchfacilitiesshallnotundulyinterferewiththeconductofPetroleumOperationsherein;liaisewiththeOperatorandtheDepartmentofPetroleumResourcesandotherrelevantGovernmentagenciesforallpurposesrelatingtoPetroleumOperationsherein;assistCONTRACTORineverywaypossibletoensurethattheprovisionsofthisContractshallbecarriedoutunderapplicableNigerianlawsandregulationsincludingwithoutlimitations,theobtainingofnecessaryapprovalsforthepaymentsandtransfersoffundsprovidedforherein;havetherighttonominatepursuanttoArticle6ofthisContract,professionalstafftooccupydefinedfunctionalpositionsintheagreedorganizationalstructureforjointconductofoperationsforaslongasthisContractsubsists;afterthetake-overofPetroleumOperations,pursuanttoArticle6.6hereof,ensurethatthesameareconductedinagoodandworkmanlikemannerandinaccordancewithinternationallyacceptedpetroleumindustrypracticesandwiththeobjectofavoidingwaste,andobtainingmaximumultimaterecoveryofCrudeOilatminimumcost;respectalltherightsconcerningindustrialpropertyandindemnifyandholdSIPECharmlessfromandagainstallclaims,loss,damageoractionarisingoutoforresultingfrom,violationofsuchrights.ARTICLE5POWERSANDOBLIGATIONSOFTHEOPERATORTheOperatorshall:conductalljointoperationswithutmostgoodfaithandinagoodworkmanlikemannerinaccordancewithgoodindustrypracticeandallapplicablelawsandregulations;maintainfullandaccuraterecordsofallPetroleumOperationsperformedunderthisContract;bealwaysmindful,intheconductofitsoperations,oftherightsandoverallinterestsofNigeria;givepreferencetosuchgoodsandserviceswhichareavailableinNigeriaandcanberenderedbyNigeriancitizensprovidedtheymeettherequiredspecificationsandarecompetitiveinprice;forthepurposeofarrivingatProfitOil,carryouttheestimateandfinalPPTcalculationinaccordancewiththePPTActandsubmitsameonatimelybasistoNPDC;havetherighttolift,inaccordancewithAnnex"E”，andfreelyexportandretainabroadthereceiptsfromthesaleofAvailableCrudeOilallocatedtoithereunder;givethePartiesfullaccess,atallreasonabletimesduringusualbusinesshourstoallbooks,records,inventoriesandaccountsofanykindornaturemaintainedrelatingtoPetroleumOperations,providedthatthePartygivestoOperatornotlessthanseven(7)dayspriornoticeinwriting;givethePartiestherightofaccesstotheContractAreaatallreasonabletimestoinspectandobservePetroleumOperationsofeverykindandcharactercarriedonintheContractArea.OperatorshallprovideotherPartywithnecessaryfacilitiestogainsuchaccessprovidedthattheprovisionofsuchfacilitiesshallnotundulyinterferewiththeconductofPetroleumOperationshereunder;consultfreelywith,andmakefullandfrankdisclosuretothePartiesconcerningtheoperationsandkeepthemcurrentlyadvisedofallmattersofimportancearisinginconnectiontherewith;exceptasotherwiseprovidedinthisContractorasmaybeauthorizedbytheProjectManagementCommittee,theOperatorshallnotpermitorsufferanylienorotherencumbrancetobefiledortoremainagainstanymaterial,physicalequipment,realorpersonalpropertythereonorrelatedthereto,noragainstpetroleumproducedandsavedasaresultofitsoperationshereunder,unlesssuchlienisimposedbyaCourtofcompetentjurisdiction;havetherighttoassignandretainsuchtechnical,administrativeandsupervisorypersonnelasdeployedtoitandconsultantsasmaybenecessaryfortheconductofOperations,subjecttoapprovaloftheProjectManagementCommittee;withtheapprovaloftheProjectManagementCommittee,enterintoagreementswiththirdpartiesforuse,bythethirdparties,offacilitiesoftOhpeerations,providedthatnorightorenjoymentofthePartiesisdiminishedinanymaterialrespect;(m)awardcontractsandpurchaseordersinaccordancewithProcurementandProjectImplementationProcedureattachedheretoasAnnex"F”；(n)intheawardofanycontract,expresslyprovidefortheapplicationofPetroleumlawsandregulationstocontractors,sub-contractorandagents;(o)keepaccuraterecordsandbooksofaccountswithrespecttotheoperations,whichshallbeavailableduringnormalbusinesshourstotheotherParty’sauthorizedrepresentatives.SuchrecordsandbooksshallcomplywithAnnex"C”andthegenerallyacceptedAccountingPrinciplesandProcedureandwithdueregardtotherequirementsofthelawsandregulations;(p)promptlyprovidethePartieswithcopiesofallProjectManagementCommitteeapprovalsforanyexpenditure,whenrequestedbytheParty/Parties;notwithoutthewrittenapprovaloftheProjectManagementCommitteedisposeof,sell,orre-exportanypropertyofsuchhistoriccostexceedingOneHundredThousandNaira(N100,000)perunitorbatchorsuchothervalueasmay,fromtimetotime,bedeterminedbytheProjectManagementCommittee.IntheeventthatContractorwishingtodisposesuchmaterials,equipmentsandmachinery,NPDCshallhavetherightofFirstRefusal.Notwithstandingtheprovisionherein,OperatorhereofshallfurnishtheotherPartyquarterlyreturnsofallitemsofpropertydisposedof,regardlessofvalue;utilizeinPetroleumOperations,equipmentexclusivelyownedandmadeavailablebyaPartyandthechargesthereaftertotheoperationsshallbeasspecifiedintheAccountingProcedure;notchargetotheoperationsthecostofthefacilities,assetsandpersonnel,ifany,wheretheOperatorengagesinactivitiesotherthanforthisServiceContract.ARTICLE6CONDUCTOFJOINTOPERATIONSWithoutprejudicetoArticle6.2,itisagreedbythePartiesthatPetroleumOperationsintheContractArea,withinthedurationofthisServiceContract,shallbecarriedoutthroughjointconductofoperations.TothiseffectanoperatingstructureshallbeestablishedwherethevariousdepartmentsshallbeconstitutedbyjointteamsandshallhavethesubstantivepositionsandtheirrespectivedeputiesmannedbytheParties.SubjecttoArticle6.6hereof,theProject/OperationsManagerpositiontowhichtheoperatingstructurereportsshallbeheldbytheCONTRACTORandtransfertoNPDCaftersix(6)yearsofthisServiceContract.UponthetransferoftheoperatorshiptoNPDC,thepositionofDeputyProjectManagershallbeheldbySIPECandNPDCshallholdtheheadshippositionofeachofthedepartmentswithintheoperatingstructurewhileSIPECshallholdthedeputyheadshippositionsfortheremainingdurationofthisServiceContract.TheoperatingteamshallbebasedinanNPDCofficelocatedinBeninCity.AfieldofficebaseshallbesitedinPort-HarcourtorasmaybedecidedbytheProjectManagementCommittee.Allpersonneloftheteamshallreceiveuniformtreatmentwithrespecttosalariesandotherbenefitsinlinewiththeirrespectivepositions.WithoutprejudicetoCONTRACTOR’SrighttoCostOilandProfitOil,NPDCshalltakeoveroperationsaftersix(6)yearsfromtheEffectiveDateofContract.However,wheretheCONTRACTORhasnotrecoveredllcostsattheexpirationofsix(6)years,CONTRACTORshallbeentitledtorecoversuchcostswithoutprejudicetoNPDC’srightstotakeoverthePetroleumOperations.Duringthefirstsix(6)yearswhenCONTRACTORactsasOperator,someNPDC’sstaffinadditiontothedeputiesreferredtoinArticle6.2and6.3,shallbeinvolvedintheoperations,asdeemednecessarybyCONTRACTORandapprovedbytheProjectManagementCommittee.ToensureuninterruptedoperationsfollowingthetakeoverofPetroleumOperationsbyNPDC,someCONTRACTOR’SstaffinadditiontothedeputiesreferredtoinArticle6.2and6.3,shallberetainedintheoperations,asdeemednecessarybyNPDCandapprovedbytheProjectManagementCommittee.UponNPDCtakingoverasOPERATOR,NPDCshallcontinuewithPetroleumOperationsinaccordancewiththeprovisionsofthisContracttotheextentapplicabletoNPDCasOperator.IntheeventofanydefaultbyNPDCaftersuchtake-over,NPDCshallbeliable,providedthatsuchdefaultisnotattributabletoorcontributedbyCONTRACTOR.ItisunderstoodandagreedbytheParties,thatintheeventofanydefaultbytheOperatorbeforethetake-overbyNPDC,theCONTRACTORshallbeliable,providedthatsuchdefaultisnotattributabletoorcontributedbyNPDC.LitigationandsettlementofclaimsinconnectionwiththeContractArea,orPetroleumOperationsshallbeconductedforandonbehalfofthePartiesbytheOperatorpursuanttothedirectionoftheProjectManagementCommittee;providedhowever,thattheOperatorshallhaveauthoritytosettleclaimsandlitigationnotexceeding300,000(ThreeHundredThousandNaira)ortheforeigncurrencyequivalentwithouttheapprovaloftheProjectManagementCommittee.TheOperator,however,shallpromptlyreportanysuchaforesaidsettlementtotheProjectManagementCommittee.EachPartyshallnotifytheotherPartyofanyprocessserveduponitorofanyprocessitintendstoserveinanyactionrespectingtheContractAreaoranyaspectofthePetroleumOperations.NothingcontainedinthisArticle6.10shallprecludeaPartyfromalsoactingonitsownbehalf(andatitsownexpense)if,initsopinion,itconsiderssuchactionadvisableornecessarytoprotectitsparticularinteresthereunder.However,aPartyactingonitsownbehalfshallnotpursueacourseofactioncontrarytothecourseofactionthenbeingundertakenforthePetroleumOperationswithrespecttosuchlitigation.ARTICLE7PROJECTMANAGEMENTCOMMITTEEAProjectManagementCommitteeshallbeestablishedwithinthirty(30)daysfromtheEffectiveDateofthisContractandshallexistthroughoutthedurationofthisServiceContractforthepurposeofprovidingorderlydirectiononallmatterspertainingtothePetroleumOperationsandWorkProgrammes.ThepowersanddutiesoftheProjectManagementCommitteeshallincludebutnoibelimitedtothefollowing:therevision,amendmentandapprovalofallproposedWorkProgrammesandBudget;therevision,amendmentandapprovalofanyproposedrecommendationsmadebyeitherPartyorbyanysub-committee,withrespecttoPetroleumOperations;ensuringthattheOperatorcarriesoutthedecisionsoftheProjectManagementCommitteeandconductsPetroleumOperationsinaccordancewiththetermsandconditionsofthisContractandtherelevantNigerianlaws;subjecttoArticle5(q)hereinabove,threvisi