Exhibit 10-1

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THE THIRD AMENDMENT TO THE GAS SALES

AGREEMENT DATED NOVEMBER 7TH, 1995

 

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BETWEEN

 

PTT PUBLIC COMPANY LIMITED

 

AND

 

CHEVRON OFFSHORE (THAILAND) LIMITED

 

THAIPO LIMITED

 

PALANG SOPHON LIMITED

 

B8/32 PARTNERS LIMITED

 

DATED

 

EFFECTIVE AS OF OCTOBER 1, 2001

 

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THE THIRD AMENDMENT TO THE GAS SALES AGREEMENT (the “GSA”) dated November 7th,
1995 is hereby made effective as of the 1st day of October, 2001.

 

BETWEEN

 

(1) PTT PUBLIC COMPANY LIMITED, successor in interest to The PETROLEUM AUTHORITY
OF THAILAND, having its principal office at 555 Vibhavadi Rangsit Road, Bangkok
10900 (hereinafter called “PTT”); and

 

(2) THAIPO LIMITED, a company duly incorporated and existing under the laws of
Thailand and having an office at 8th floor, M. Thai Tower, All Seasons Place, 87
Wireless Road, Khwaeng Lumpini, Khet Patumwan, Bangkok 10330 (hereinafter called
“THAIPO”); and

 

(3) CHEVRON OFFSHORE (THAILAND) LIMITED, formerly known as Thai Romo Limited, a
company duly incorporated and existing under the laws of Thailand and having its
registered office at 27th Floor, Suntowers Building B, 123 Vibhavadi-Rangsit
Road, Kwaeng Ladyao, Khet Jatujak, Bangkok 10900 (hereinafter called “CHEVRON”);
and

 

(4) PALANG SOPHON LIMITED, a company duly incorporated and existing under the
laws of Thailand and having its registered office at 27th Floor, Suntowers
Building B, 123 Vibhavadi-Rangsit Road, Kwaeng Ladyao, Khet Jatujak, Bangkok
10900 (hereinafter called “SOPHON”); and

 

(5) B8/32 PARTNERS LIMITED, a company duly incorporated and existing under the
laws of Thailand and having an office at 8th floor, M. Thai Tower, All Seasons
Place, 87 Wireless Road, Khwaeng Lumpini, Khet Patumwan, Bangkok 10330
(hereinafter called “B8/32 PARTNERS”).

 

THAIPO, CHEVRON, B8/32 PARTNERS and SOPHON hereinafter all collectively called
“Concessionaire”)

 

WHEREAS:

 

The Concessionaire and PTT have agreed to modify certain terms of the GSA, as
amended by the First Amendment and the Second Amendment relating to PTT’s rights
and obligations to purchase additional quantities of Sales Gas in excess of one
hundred forty five (145) million Cubic Feet per day;

 

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NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS THAT THE GSA, AS PREVIOUSLY
AMENDED, SHALL BE FURTHER AMENDED BY THIS THIRD AMENDMENT TO REFLECT:

 

1. DEFINITIONS

 

Article 1 Definitions shall have the following definitions (a) amended:

 

  • “Interim Period” shall mean the period of time commencing as of 6:00 a.m.
October 1, 2001 and ending 6:00 a.m. January 1, 2008.

 

and (b) added:

 

  • “Bank Holiday” shall mean any day announced by the Bank of Thailand as a
bank holiday.

 

2. QUALITY

 

Item 9 of the Second Schedule (Quality Specifications) shall be revised to read
as follows:

 

“TEMPERATURE: have a temperature which is not less than sixty (60) degrees
Fahrenheit and (a) not more than one hundred and twenty (120) degrees Fahrenheit
at Tantawan Delivery Point; (b) not more than one hundred and thirty (130)
degrees Fahrenheit at Benchamas Delivery Point.”

 

3. PRICE CALCULATION

 

The definitions of the terms “Fy” and “W” contained in Clause 11.5 of the GSA
are amended to read:

 

Fy

   =   the arithmetic average of the available figures last published, Platts
Oilgram Price Report date, for each month of the six month period ending in
March and September respectively in which the prices have to be adjusted, in
United States Dollars per barrel of the Singapore Product Postings for Med FO
180cst from Shell Eastern Petroleum PTE Ltd., ESSO Singapore PTE Ltd., Mobil
Sales and Supply Corporation, Caltex Petroleum Corporation, BP Oil International
and Singapore Petroleum Corporation PTE Ltd., as published in “Platt’s Oilgram
Price Service”.

W

   =   a) for the period through 31 December 1999, the arithmetic average of the
figures published for each month of the six month period from October 1994 to
March 1995 inclusive for the index of Wholesale Prices in Thailand based on 100
for the calendar year 1990 as published by the International Monetary Fund in
“International Financial Statistics”. The agreed value is 114.02160.          b)
for the period from 1 January 2000 onward, the arithmetic average of the figures
published for each month of the six month period from

 

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         October 1994 to March 1995 inclusive for the index of Producer Prices
based on 100 for the calendar year 1995 as published by the Bureau of Trade and
Economic Indices, Ministry of Commerce. The agreed value is 95.09744.

 

4. QUANTITIES

 

That Subclause 6.6(ii) shall be amended to read as follows:

 

“The DCQ for the third Contract Year and subsequent Contract Years shall be
determined by dividing the Field Reserves as determined or last redetermined by
six thousand (6000). The DCQ shall not be less than one hundred twenty five
(125) million Cubic Feet unless as determined by Clause 6.11.

 

The following new Subclause 6.6(vi) shall be added:

 

“The Concessionaire shall endeavor to deliver one hundred twenty five (125)
million Cubic Feet in 2010, if economic for the Concessionaire as determined by
the Concessionaire in its sole discretion.”

 

5. BILLING AND PAYMENT

 

That Clause 12.3 of the GSA shall be amended by the addition of the following
words;

 

“(a) If the payment date falls on Saturday, or a Bank Holiday that occurs on a
Wednesday, Thursday or Friday, PTT shall pay Concessionaire on the preceding
working business day.

 

(b) If the payment date falls on Sunday, or a Bank Holiday that occurs on a
Monday or Tuesday, PTT shall pay Concessionaire on the next working business
day”

 

6. AMENDMENTS TO ARTICLE XXXII – SUPPLEMENTAL GAS QUANTITIES FOR THE INTERIM
PERIOD

 

The Parties agree that the following paragraphs in Article XXXII of the GSA
shall be amended and restated in their entirety as set forth below:

 

  32.2 During the Interim Period, PTT agrees to purchase additional volumes of
Sales Gas amounting to at least one hundred seventy-seven decimal three six five
billion Cubic Feet (177.365 Bcf) in accordance with the Sixth Schedule attached
hereto. Such additional gas shall be nominated and purchased by PTT after it
nominates and purchases the GSA Quantities.

 

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  32.6 The price to be paid by PTT for the Supplemental Gas Quantities shall be
88% of the Current Price with the exception that from and after March 1, 2004,
Sales Gas nominated and taken by PTT in excess of 105% of the Total Supplemental
DAQ shall be paid for by PTT at the Current Price. For clarity, the price for
quantities taken by PTT in excess of 105% of the Total Supplemental DAQ but not
nominated shall be 88% of the Current Price.

 

  32.7 PTT may nominate up to 105% of the Total Supplemental DAQ, as shown in
the Sixth Schedule on any day.

 

  (a) If, at any time, Concessionaire fails to deliver enough Sales Gas during
the period from 6.00 a.m. October 1, 2001 to 6.00 a.m. March 1, 2004 and during
the period from 6.00 a.m. January 1, 2006 through the remainder of the Interim
Period, so that Supplemental Shortfall Gas occurs, then the Concessionaires
shall pay to PTT, by means of a credit against the next payment due by PTT to
the Concessionaires pursuant to this Agreement, for the Supplemental Shortfall
Gas an amount equal to 12% of the Current Price in effect at the time of the
Supplemental Shortfall Gas occurrence times the Supplemental Shortfall Gas.

 

  (b) In consideration of Concessionaire’s need to develop additional gas
reserves and of PTT’s forecast of Gulf of Thailand gas availability, if, at any
time, Concessionaire fails to deliver enough Sales Gas during the period from
6.00 a.m. March 1, 2004 to 6.00 a.m. January 1, 2006, so that Supplemental
Shortfall Gas occurs, then the Concessionaires shall pay to PTT, by means of a
credit against the next payment due by PTT to the Concessionaires pursuant to
this Agreement, for the Supplemental Shortfall Gas an amount equal to 6% of the
Current Price in effect at the time of the Supplemental Shortfall Gas occurrence
times the Supplemental Shortfall Gas.

 

If the Sales Gas produced in any month during this period is insufficient to
fully satisfy Concessionaire’s Supplemental Shortfall Gas obligations for the
preceding month, the excess Supplemental Shortfall Gas obligations for such
month shall be accrued and carried over to the following month, and from month
to month to the end of the Contract Year, any outstanding Supplemental Shortfall
Gas obligations remaining shall be applied as a credit against PTT’s annual
payment obligations under Articles 6.8 or 32.5. At such time, the excess amounts
owed by Concessionaire for such Supplemental Shortfall Gas will be credited
against any amounts owed by PTT to Concessionaires for natural gas not taken by
PTT pursuant to Clause 32.5 above in the same manner as such calculations are
made for GSA Quantities of Sales Gas and any additional amounts still owing to
PTT after such offsets shall be paid in cash at that time. For the avoidance of
doubt, the Shortfall provisions of Article 15.2 will apply

 

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to any shortfall between one hundred forty-three decimal seventy-five (143.75)
million Cubic Feet per Day and one hundred forty-five (145) million Cubic Feet
per Day.

 

  32.9 Without accruing any obligations to pay for Supplemental Shortfall Gas
under Article 32.7 or Shortfall Gas under Article 15.2, the Concessionaire may
conduct the preventive maintenance and facilities upgrade work, other than works
conducted under Clause 6.18, not more than

 

  (a) two (2) times and the aggregate period for such maintenance and upgrade
work shall not exceed thirty (30) days during the year 2002, and

 

  (b) four (4) times and the aggregate period for such maintenance and upgrade
work shall not exceed sixty (60) days from the year 2003 through the remainder
of the Interim Period.

 

Concessionaire shall update and discuss with PTT from time to time of its
anticipated period(s) for such maintenance and upgrades. Concessionaire shall
designate by revocable notice to PTT the shutdown window equal to the shutdown
period plus seven (7) days at least four (4) months in advance of the shutdown.
Concessionaire shall then designate by revocable notice to PTT, at least two (2)
months in advance, the date of commencement of the actual period(s) during which
it shall claim the benefits of this Article 32.9.

 

  32.11 Concessionaire shall be entitled to conduct the managed maintenance
under Clause 6.18 without accruing any obligation to pay for Supplemental
Shortfall Gas under Article 32.7.

 

7. AMENDED SIXTH SCHEDULE – SUPPLEMENTAL GAS QUANTITIES

 

The “Sixth Schedule – Supplemental Gas Quantities” is hereby amended, restated
and replaced in its entirety as set forth in the attachment hereto.

 

8. CONFLICT

 

The provisions of this Third Amendment shall constitute an amendment and
supplement to the GSA, the First Amendment and the Second Amendment. To the
extent that there is any conflict or inconsistency between the terms of the GSA,
the First Amendment and the Second Amendment, with the terms of this Third
Amendment, the terms of this Third Amendment shall prevail.

 

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9. GSA REMAINS IN EFFECT

 

Except as amended hereby, the GSA, as amended by the First Amendment and the
Second Amendment, shall remain in full force and effect.

 

10. APPLICABLE LAW

 

This Third Amendment shall be governed by and construed in accordance with the
laws of Thailand.

 

11. EFFECTIVE DATE

 

This Third Amendment shall be effective from October 1, 2001.

 

IN WITNESS WHEREOF, each party hereto has caused this Agreement to be executed
by its duly authorized representatives as of October 10, 2003.

 

PTT Public Company Limited

     

Witness:

/s/ Prasert Bunsumpun

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/s/ Dr. Chitraphongse Kwangsukstith

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Mr. Prasert Bunsumpun

President

     

Dr. Chitraphongse Kwangsukstith

Senior Executive Vice President

Gas Business Group

Chevron Offshore (Thailand) Limited

     

Witness:

/s/ Isikeli Reuben Taureka

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/s/ Prapavadee Sophonpanich

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Mr. Isikeli Reuben Taureka

Managing Director

     

Ms. Prapavadee Sophonpanich

         

/s/ Edward Stuart Johnson

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Mr. Edward Stuart Johnson

Director

       

Thaipo Limited

     

Witness:

/s/ Kevin Herrmann

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/s/ Edward Stuart Johnson

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Mr. Kevin Herrmann

Resident Manager

     

Mr. Edward Stuart Johnson

 

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Palang Sophon Limited

     

Witness:

/s/ Prapavadee Sophonpanich

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/s/ Kevin Herrmann

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Ms. Prapavadee Sophonpanich

     

Mr. Kevin Herrmann

                   

/s/ Isikeli Reuben Taureka

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Mr. Isikeli Reuben Taureka

Director

       

B8/32 PARTNERS LIMITED

     

Witness:

/s/ Kevin Herrmann

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/s/ Prapavadee Sophonpanich

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Mr. Kevin Herrmann

Director

     

Ms. Prapavadee Sophonpanich

         

/s/ Isikeli Reuben Taureka

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Mr. Isikeli Reuben Taureka

Director

                 

 

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SIXTH SCHEDULE

QUANTITIES DURING INTERIM PERIOD

 

1

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   2

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  3

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Period

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Supplemental
DAQ

(MMcf per day)

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Total Supplemental
DAQ

(GSA Quantities plus
Supplemental DAQ)

(MMcf per day)

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October 2001 – November 2001

   55   200

December 2001

   45   190

January 2002

   35   180

February 2002

   45   190

March 2002 – September 2002

   55   200

Contract Year 2001 / 2002

  

18.865 Bcf

   

October 2002 – February 2003

   55   200

March 2003 – September 2003

   85   230

Contract Year 2002 / 2003

  

26.495 Bcf

   

October 2003 – September 2004

   85   230

Contract Year 2003 / 2004

   31.110 Bcf    

October 2004 – September 2005

   85   230

Contract Year 2004 / 2005

   31.025 Bcf    

October 2005 – September 2006

   85   230

Contract Year 2005 / 2006

   31.025 Bcf    

October 2006 – September 2007

   85   230

Contract Year 2006 / 2007

   31.025 Bcf    

October 2007 – December 2007

   85   230

Contract Year 2007 / 2008

   7.820 Bcf    

Total

   177.365 Bcf    

 

Note: The volumes specified in the column titled “Total Supplemental DAQ” are
for illustrative purposes only. The calculation of Total Supplemental DAQ
assumes GSA Quantities of 145 MMcf per day. The actual Total Supplemental DAQ
may vary depending on the then current GSA Quantities for the relevant period.

 

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