**PRODUCTION      SHARING CONTRACT**

**BETWEEN**

**THE      GOVERNMENT OF INDIA**

**AND**

**OIL      INDIA LTD.**

**AND**

**GEOGLOBAL      RESOURCES (BARBADOS) INC.**

**WITH      RESPECT TO CONTRACT AREA**

**IDENTIFIED      AS**

**BLOCK      : KG-ONN-2004/1**

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**TABLE      OF CONTENTS**

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|  **ARTICLE** |  **CONTENTS**                                                                                   |  **PAGE                NO.** |
|-------------------|------------------------------------------------------------------------------------------------------|-----------------------------------|
|              | Preamble                                                                                             | **1-2**                           |
| **1**             | Definitions                                                                                          | **3-12**                          |
| **2**             | Participating                Interests                                                          | **13**                            |
| **3**             | License                and Exploration Period                                                        | **14-16**                         |
| **4**             | Relinquishment                                                                                       | **17**                            |
| **5**             | Work                Programme                                                                        | **18-21**                         |
| **6**             | Management                Committee                                                                  | **22-26**                         |
| **7**             | Operatorship,                Operating Agreement and Operating Committee                             | **27**                            |
| **8**             | General                Rights and Obligations of the Parties                                         | **28-30**                         |
| **9**             | Government                Assistance                                                                 | **31**                            |
| **10**            | Discovery,                Development and  Production                                           | **32-36**                         |
| **11**            | Petroleum                Exploration License and Mining Lease                                        | **37-38**                         |
| **12**            | Unit                Development                                                                      | **39-40**                         |
| **13**            | Measurement                of Petroleum                                                              | **41**                            |
| **14**            | Protection                of the Environment                                                         | **42-46**                         |
| **15**            | Recovery                of Cost Petroleum                                                            | **47-49**                         |
| **16**            | Production                Sharing of Petroleum                                                       | **50-52**                         |
| **17**            | Taxes,                Royalties, Rentals, Duties etc.                                           | **53-56**                         |
| **18**            | Domestic                Supply, Sale, Disposal and Export of Crude Oil and                Condensate | **57-58**                         |
| **19**            | Valuation                of Petroleum                                                                | **59-61**                         |
| **20**            | Currency                and Exchange Control Provisions                                              | **62**                            |
| **21**            | Natural                Gas                                                                           | **63-68**                         |
| **22**            | Employment,                Training and Transfer of Technology                                       | **69**                            |
| **23**            | Local                Goods and Services                                                              | **70**                            |
| **24**            | Insurance                and Indemnification                                                         | **71**                            |
| **25**            | Records,                Reports, Accounts and Audit                                                  | **72**                            |

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|  **ARTICLE** |  **CONTENTS**                                                         |  **PAGE                NO.** |
|-------------------|----------------------------------------------------------------------------|-----------------------------------|
| **26**            | Information,                Data, Confidentiality, Inspection and Security | **73-75**                         |
| **27**            | Title                to Petroleum, Data and Assets                         | **76**                            |
| **28**            | Assignment                of Participating Interest                        | **77-79**                         |
| **29**            | Guarantees                                                                 | **80-82**                         |
| **30**            | Term                and Termination of the Contract                        | **83-85**                         |
| **31**            | Force                Majeure                                               | **86-87**                         |
| **32**            | Applicable                Law and Language of the Contract                 | **88**                            |
| **33**            | Sole                Expert, Conciliation and Arbitration                   | **89-90**                         |
| **34**            | Change                of Status of Companies                               | **91**                            |
| **35**            | Entire                Agreement, Amendments and Waiver and miscellaneous   | **92**                            |
| **36**            | Certificates                                                               | **93**                            |
| **37**            | Notices                                                                    | **94-95**                         |

|  **APPENDICES**                 |  **CONTENTS**                                                                    |  **PAGE                NO.** |
|--------------------------------------|---------------------------------------------------------------------------------------|-----------------------------------|
| **Appendix                A**        | Description                of the Contract Area                                       | **96**                            |
| **Appendix                B**        | Map                of the Contract Area                                               | **97**                            |
| **Appendix                C**        | Accounting                Procedure to the Contract                                   | **98-128**                        |
| **Appendix                D**        | Calculation                of the Investment Multiple for Production Sharing purposes | **129-130**                       |
| **Appendix                E1**  | Form                of Parent company Financial and Performance Guarantee             | **131-132**                       |
| **Appendix                E2**       | Form                of Company Financial and Performance Guarantee                    | **133-134**                       |
| **Appendix-F**                       | Procedure                for acquisition of goods and services                        | **135-138**                       |
| **Appendix-G**                       | Performa                of Bank Guarantee to be provided pursuant to Article 29       | **139-141**                       |
| **Appendix-H**                       | Cost                estimates for Minimum Work Programme                              | **142-**                          |

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**PRODUCTION      SHARING CONTRACT**

|   |   | This                Contract made this 2nd day of March, 2007,                between: |
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| 1. |   | The                President of India, acting through the Joint Secretary, Ministry                of                Petroleum and Natural Gas (hereinafter referred to as “the Government”) of                the FIRST PART; |
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|   |   | M/s                Oil India Limited, a Company incorporated under the Companies Act,                1956                having its corporate office at 5, Sikandra Road, New Delhi - 110001                (hereinafter referred to as “OIL”) which expression shall included its                successors and such assigns as are permitted under Article 28 hereof,                of                the SECOND PART; |
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|   |   | M/s                GeoGlobal Resources (Barbados) Inc., a Company incorporated under                the laws                of Barbados, West Indies, having its registered office at 310, 605                -                1st                Street SW, Calgary, Alberta, Canada, T2P 3S9 (hereinafter referred                to as                “GGRB”) which expression shall include its successors and such assigns                as                are permitted under Article 28 hereof, of the THIRD PART; |
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**WITNESSETH:**

| (2) |   | The                rules provide for the grant of Licenses and Leases in respect of                land                vested in a State Government by that State Government with the prior                approval of the Central Government; |
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| (3) |   | Rule                5 of the Rules provides for an agreement between the Government and                the                Licensee or Lessee containing additional terms and conditions with                respect                to the License or Lease; |
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| (4) |   | The                Government desires that the Petroleum resources which may exist in                India                be discovered and exploited with the utmost expedition in the overall                interest of India and in accordance with modern oilfield and petroleum                industry practices; |
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| (5) |   | OIL-GGRB                have committed that it has/they have, or will acquire and make available,                the necessary financial and technical resources and the technical                and                industrial competence and experience necessary for proper discharge                and/or                performance of all obligations required to be performed under this                Contract in accordance with modern oilfield and petroleum industry                practices and will provide guarantees as required in Article 29 for                the                due performance of its obligations hereunder;                and |
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| (6) |   | As                a result of discussions between representatives of the Government                and OIL-                GGRB on the proposal of OIL-GGRB, the Government has agreed to enter                into                this Contract with OIL-GGRB, with respect to the Contract Area identified                as block KG-ONN-2004/1 and detailed in Appendix A and Appendix B,                on the                terms and conditions herein set                forth. |
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**ARTICLE      1**

**DEFINITIONS**

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| 1.13   | “Budget”                means a budget formulated in relation to a Work                Programme. |
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**ARTICLE      2**

**PARTICIPATING      INTERESTS**

| 2.1   | The                initial Participating Interest of the Parties comprising the Contractor                shall be as follows: |
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|   | (a) | the                right to take Cost Petroleum in accordance with the provisions of                Article                15; |
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|   | (b) | the                right to take its Participating Interest share of Profit Petroleum                in                accordance with the provisions of Article                16; |
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|   | (c) | the                right to receive its Participating Interest share of any incidental                income                and receipts arising from Petroleum Operations;                and |
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**ARTICLE      3**

**LICENSE      AND EXPLORATION PERIOD**

| 3.1   | The                Exploration Period shall begin on the Effective Date and shall consist                of                two (2) Exploration Phases, first exploration Phase shall be for                a period                not exceeding four (4) consecutive Contract Years and second Exploration                Phase shall be for a period not exceeding three (3) consecutive Contract                Years, for a total period not exceeding seven (7) consecutive Contract                Years unless extended pursuant to the terms of this                Contract. |
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| 3.2   | Except                as otherwise provided in this Contract, the term of the first Exploration                Phase shall not exceed four (4) consecutive Contract Years (hereinafter                referred to as the first Exploration                Phase). |
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|   | (a) | to                proceed to the next Exploration Phase on presentation of the                requisite** **guarantees                as provided for in Article 29; or |
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| (b)   | to                relinquish the entire Contract Area except for any Discovery Area                and any                Development Area and to conduct Development Operations and Production                Operations in relation to any Commercial Discovery in accordance                with the                terms of this Contract, and the Contractor shall have no further                obligation in respect of the Minimum Work Programme under Article                5 for                any subsequent Exploration Phases of the Exploration                Period. |
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| 3.5 | If                at the end of an Exploration Phase the Minimum Work Programme for                that                phase is not completed, the time for completion of the said Minimum                Work                Programme shall be extended for a period necessary to enable completion                thereof but not exceeding six (6) months, provided that the Contractor                submits his request by giving a written notice to the Government                at least                thirty (30) days prior to the expiry of the relevant Phase and can                show                technical or other good reasons for non-completion of the Minimum                Work                Programme and the Management Committee gives its consent to the said                extension and provided further that the period of such extension                shall be                subtracted from the next succeeding Exploration Phase, if any. In                case the                Minimum Work Programme of any particular Exploration Phase is completed                before stipulated time as provided in the Article 3.2, the time so                saved                will be added to the next Exploration Phase, if so requested by the                Contractor giving a notice in writing to the Government thirty (30)                days                prior to such early completion of the Phase and in that event the                provision of the Article 3.4 (a) shall apply immediately after such                early                completion of the Phase. |
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| 3.6 |   | If,                at the end of an Exploration Phase, execution of any Work Programme                is in                progress and which is in addition to the Minimum Work Programme,                such                Exploration Phase shall be extended for a period not exceeding six                (6)                months to enable completion thereof provided that the Minimum Work                Programme for such Phase has been completed and** **the                Management Committee gives its consent to the said extension as provided                in the Article 3.5. In the event of an extension as provided for                herein,                the notice referred to in Article 3.4 shall be given at least thirty                (30)                days prior to the expiry of the relevant                extension. |
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| 3.7 |   | Where                sufficient time is not available prior to the expiry of the Exploration                Period to complete an Appraisal Programme, at the request of the                Contractor, the Government shall extend the Exploration Period for                such                period, not exceeding eighteen (18) months for onland and shallow                water                blocks and thirty (30) months for deepwater blocks, as may be mutually                agreed between the Parties for the Appraisal Programme to be carried                out                and for the Contractor and the Management Committee, to comply with                the                provisions of Article 10 and Article                21. |
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| 3.8 |   | If                no Commercial Discovery has been made in the Contract Area by the                end of                the Exploration Period, the Contract shall                terminate. |
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| 3.10 |   | If                at the expiry of the Exploration Period a development plan for development                of a Commercial Discovery and an application for Lease is under                consideration by the Management Committee or Government, as the case                may                be, pursuant to Articles 10, 11 and 21 respectively, the License                shall                continue in force with respect to that part of the Contract Area                to which                the application for the Lease relates, pending a decision on the                proposed                development plan and the application for the Lease, but |
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**ARTICLE      4**

**RELINQUISHMENT**

| 4.1 | If                at the end of the first Exploration Phase, the Contractor elects,                pursuant                to Article 3.4 to continue Exploration Operations in the Contract                Area in                the second Exploration Phase, the Contractor shall have the option                to                relinquish a part of Contract Area in simple geometrical shape. In                case,                the Contractor exercises its option to relinquish a part of the Contract                Area at the end of the first Exploration Phase, then such area to                be                relinquished shall not be less than twenty five percent (25%) of                the                original Contract Area and the Contractor shall be entitled to retain                the                balances area including any Development Area and Discovery Area in                not                more than three (3) areas of simple geometrical shapes. Notwithstanding                the provision of this Article 4.1, the Contractor shall be permitted                to                retain the Development Areas and Discovery Areas in accordance with                Article 3.4. |
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| 4.2 | At                the end of the second Exploration Phase, the Contractor shall retain                only                Development Areas and Discovery                Areas. |
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| 4.3 | If                the Contractor exercises the option provided for in paragraph (b)                of                Article 3.4, the Contractor shall, after any Discovery Areas or                Development Areas have been designated, relinquish all of the Contract                Area not included within the said Discovery Areas or Development                Areas. |
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| 4.4 | As                and when the Contract is terminated under the provisions of Article                3 or                in accordance with any other provisions of this Contract, the entire                Contract Area remaining with the Contractor shall be deemed to have                been                relinquished by the Contractor as on the date on which the Contract                is                terminated. |
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| 4.5 | Relinquishment                of all or part of the Contract Area or termination of the Contract                shall                not be construed as absolving the Contractor of any liability undertaken                or incurred by the Contractor in respect of the Contract Area during                the                period between the Effective Date and the date of such relinquishment                or                termination. |
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| 4.7 | Subject                to Article 14.9, the liability of the Contractor shall be limited                to any                liability undertaken or incurred in respect of, relating to or connected                with the Contract, and/or any claim arising out of or in relation                to the                act of negligence, misconduct, commission or omission in carrying                out                Petroleum Operations during the period between the Effective Date                and the                date of relinquishment of the Contract Area or termination or expiry                of                the Contract, as the case may                be. |
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**ARTICLE      5**

**WORK      PROGRAMME**

| 5.1 | The                Contractor shall commence Petroleum Operations not later than six                (6)                months from the Effective Date. |
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| 5.2 | In                addition to the Bid Work Programme Commitment in first Exploration                Phase                specified below in Article 5.2.1 and 5.3, the Contractor shall be                required                to undertake and completed the 2D seismic - API, in grid size for                **4                (four) KM x 4 (four) KM**                covering the entire Contract Area (herein after referred to as “Mandatory                Work Programme”) during first Exploration Phase. In case due to any reason                instrinsic to the Contract Atrea reason(s), the Contractor is not                able to                cover any part of the Contract Area by 2D seismic survey of grid                size                specified in this Article, the Contractor shall submit a proposal                for                substitution of the short fall in the Mandatory work Programme to                the                Management Committee for approval. The Management Committee shall                consider                and take a reasoned unanimously decision on the proposal of the Contractor                in a timely manner. The Management Committee may ask the Contractor                by                giving a reasonable time, any relevant information / details / data                to                enable it to take a decision on the proposal. The Management Committee                shall ensure that the substituted work programme shall be at least                to the                shortfall in the Mandatory Work Programme when evaluated in terms                of                efforts and expenditure. In case Management Committee is not able                to                decide unanimously, the matter may be referred for approval of the                Government. In case not proposal is received from the Contractor                for the                substitution and fails to complete Mandatory Work Programme the provision                of Article 5.6 shall apply. |
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| 5.2 | During                the currency of the first Exploration Phase, as per Article 3.2,                the                Contractor shall complete the following Work                Programme: |
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|   | (a) | (i) | A                seismic programme consisting of the acquisition, processing and                interpretation of **548                (five hundred forty eight)**                sq. kms. Of 3D seismic data in relation to the exploration objectives; |
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| (ii)   | Reprocessing                of **564                (five hundred sixty four**)                line kilometer of 2D seismic; |
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| (iii)   | Gravity                magnetic surty (API) of **2500                (two thousand five hundred)**stations; |
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| (iv)   | Any                other Surveys (API): Geochemcial survey of **500                (five hundred)**samples; |
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|   | (b) | **Twelve                (12)**                Exploration Wells shall be drilled to at least one of the following                depths                : |
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**2000      (two thousand) **

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**2000      (two thousand)**

**4000      (four thousand)**

**4000      (four thousand)**

**4500      (four thousand five hundred)**

**5000      (five thousand)**

**5000      (five thousand)**

**5000      (five thousand)**

**5000      (five thousand)**

**5000      (five thousand)**

**5000      (five thousand)**

**5000      (five thousand)**

|   | (iii) | that                point below which further drilling becomes impracticable due to geological                conditions encountered and drilling would be abandoned by a reasonable                prudent operator in the same or similar circumstances. Abandonment                of                drilling under this provision by the Contractor would require unanimous                approval of the Management                Committee. |
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| 5.3 | During                the currency of the second Exploration Phase, as per Article 3.3,                the                Contractor shall complete the following Work                Programme: |
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| **(a)  ** | **One                (1)**                Exploration Well shall be drilled to at least one of the following                depths: |
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| (i)   | One                (1) Well - **4600                (four thousand six hundred)**                meters |
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|   | (ii) | to                Basement; and |
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|   | (iii) | that                point below which further drilling becomes impracticable due to geological                conditions encountered and drilling would be abandoned by a reasonable                prudent operator in the same or similar circumstances. Abandonment                of                drilling under this provision by the Contractor, would require unanimous                approval of the Management                Committee. |
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| 5.5 | If                the depth/geological objective of the Well is not achieved for any                reason,                a substitute Well shall be drilled of the same specifications as                stipulated in and subject to Articles 5.2, & 5.3, as the case may                be. |
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| 5.6 | Subject                to Article 31, the Contractor undertakes to complete the Mandatory                Work                Programme and Minimum Work Programme in accordance with Articles                5.2,                5.2.1, 5.3 and 5.5, as the case may be. In the event that the Contratctor                fails to fulfill the said Mandatory Work Programme or Minimum Work                Programme or both by the end of the relevant Exploration Phase or                early                termiantio of the Contract by the Government for any reason whatsoever,                each Company constituting the Contractor shall pay to the Government,                within sixty (60) days following the end of the relevant Explporation                Phase or early termination of the Contract, as may be the case, its                Participating Interest shall for an amount which, when evaluated                in terms                of the Mandatory Work Programme or Minimum Work Programme specified                for                the relevant Phase, is equal to the amount which would be required                to                completed the said Mandatory Work Programme or Minimum Work Programme                or                both. For determination of this amount, available relevant information                including the Budget and modern oilfield and petroleum industry practices                may be taken into account. |
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| 5.7 | If                the Minimum Work Programme for the second Exploration Phase has been                completed earlier than eighteen months from the end of the Phase,                the                Contractor shall meet with the Government to discuss the possibility                of                early relinquishment, unless the Contractor undertakes further work                with                the approval of the Management                Committee. |
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| 5.8 | In                the event that the Contractor has carried out work in excess of the                Minimum Work Programme in any Exploration Phase, the excess                exploration** **work                done shall be set off against the Minimum Work Programme for the                following                Exploration Phase. |
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| 5.9 | As                soon as possible after the Effective Date and thereafter within ninety                (90) days before commencement of each following Year, the Contractor                shall                submit to the Management Committee the Work Programmes and the Budgets                relating to Petroleum Operations to be carried out during the relevant                Year. Work Programme and Budgets for the Exploration Period shall                include                work sufficient to meet the relevant Minimum Work Programme with                respect                to each Exploration Phase specified in this Article                5. |
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| 5.10 | The                Contractor may propose modifications or revisions to the details                of a                reviewed or an approved Work Programme and Budget, as the case may                be, in                the light of the then existing circumstances and shall submit to                the                Management Committee modifications or revisions to the Work Programme                and                Budget referred to in Article 5.9. |
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| 5.11 | Work                Programmes and Budgets and any modifications or revisions thereto                relating                to Exploration Operations shall be submitted to the Management Committee                for review and advice as provided in Article 6.5. Work Programmes                and                Budgets related to Development Operations and Production Operations                and                any modifications or revisions thereto shall be submitted for approval                as                provided in Article 10 and Article                21. |
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**ARTICLE      6**

**MANAGEMENT      COMMITTEE**

| 6.1 | There                shall be constituted a committee to be called the Management Committee                with functions as stated herein below. |
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| 6.2 | Government                shall nominate two (2) members representing Government in the Management                Committee, whereas each Company constituting the Contractor shall                nominate                one (1) member each to represent Company in the Management Committee                provided that in case the Contractor constitutes only one Company,                that                Company shall have two (2) members. The Parties shall nominate the                members                to the Management Committee within thirty (30) days of the Effective                Date. |
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| 6.3 | Each                Party may nominate alternate members with full authority to act in                the                absence and on behalf of the members nominated under Article 6.2                and may,                at any time, nominate another member or alternate member to replace                any                member nominated earlier by notice to other members of the Management                Committee. |
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| 6.4 | One                representative of the Government shall be designated as the Chairman                of                the Management Committee and the second representative of the Government                shall be designated as the Deputy Chairman. The member of the Operator,                or                the member designated by the Operator where Operator has two (2)                members                in the Management Committee shall be designated as the Secretary                of the                Committee. |
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| 6.5 | Operator                on behalf of the Contractor with the approval of Operating                Committee**,**if                constituted under the Article 7.4, or in case of a single Party                constituting the Contractor, then that Party shall submit following                matters to the Management Committee for review and it shall have                advisory                functions: |
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| (a)   | the                annual Work Programmes and Budgets in respect of Exploration Operations                and any revisions or modifications                thereto; |
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| (b)   | annual                work progress and costs incurred                thereon; |
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| (c)   | proposals                for surrender or relinquishment of any part of the Contract Area                by the                Contractor; |
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| (d)   | proposals                for an Appraisal Programme or revisions or additions thereto and                the                declaration of a Discovery as a Commercial                Discovery; |
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| (e)   | any                other matter required by the terms of this Contract to be submitted                to it                for review or advice; and |
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| (f)   | any                other matter which the Contractor decides to submit for review or                advice                including matters concerning inter-Party                relationships. |
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| 6.6 | The                following matters shall be submitted by Operator on behalf of the                Contractor with the approval of Operating Committee, if constituted                under                the Article 7.4, or in case of single Party constituting the Contractor,                then by that Party to the Management Committee for                approval: |
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| (a)   | Annual                Work Programmes and Budgets in respect of Development Operations                and                Production Operations and any modifications or revisions                thereto; |
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| 6.7 | Unless                agreed otherwise by all the members of the Management Committee,                the                Management Committee shall meet at least once every six (6) months                during                the Exploration Period and thereafter at least once every three (3)                months                or more frequently at the request of any member. The Secretary, with                the                approval of the Chairman, shall convene each meeting by notifying                the                members twenty eight (28) days prior to such a meeting (or a shorter                period of notice if the members unanimously so agree) of the time                and                place of such meeting and the purpose thereof and shall include in                such                notice a provisional agenda for such meeting. The Chairman shall                be                responsible for processing the final agenda for such meeting and                the                agenda shall include all items of business requested by the members                to be                included, provided such requests are received by the Secretary at                least                ten (10) days prior to the date fixed for the meeting. The Secretary                shall                forward the agenda to the members at least seven (7) Business Days                prior                to the date fixed for the meeting. Matters not included in the agenda                may                be taken up at the meeting by any member with the unanimous consent                of all                the members whether present or not present at the                meeting. |
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| 6.8 | The                Chairman or the Deputy Chairman, as may be the case, shall preside                over                the meetings of the Management Committee and, in their absence, any                other                member representing Government and present shall preside over the                meetings. |
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| 6.9 | Secretary                to the Management Committee shall be responsible, inter alia, for                preparation of the minutes of every meeting in the English language                and                provision to every member of the Management Committee with two (2)                copies                of the minutes approved by the Chairman within three (3) Business                Days of                the meeting. Unless agreed otherwise by all the members of the Management                Committee, the minutes of a meeting shall be finalised by the Management                Committee within three (3) Business Days thereafter. Members shall                notify                the Chairman and the other members of their approval of the minutes                by                putting their signatures on one copy of the minutes and returning                the same                to the Chairman. Members may suggest any modification to the minutes                while                returning the signed copy. Members may also communicate with the                Chairman                through telex, cable, or facsimile or any other effective mode of                communication agreed by all the members of the Management Committee.                If                the Chairman or any other member does not agree with the modification                to                the minutes suggested by any member, the matter shall be brought                to the                attention of the other members and resubmitted to the Management                Committee                at the next meeting and the minutes shall stand approved as to all                other                matters. If a member fails to respond within the aforesaid three                (3)                Business Day period, unless agreed otherwise by the Management Committee                as herein provided, the minutes shall be deemed to be approved by                such                member. |
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| 6.10 | Any                member shall be entitled, if either he/she or his/her alternate is                unable                to attend a meeting, to cast his vote by telex, cable, facsimile                transmission or any other effective mode of communication agreed                by all                the members of the Management Committee and received by the Chairman                prior                to the date on which the vote is taken in the course of the meeting                or by                giving a prior written notice to all other members, appoint a member,                with                his/her prior consent, representing another Party in the Management                Committee as its proxy to attend a meeting and to exercise the appointing                member’s right to vote at the meeting whether as directed by the                appointing member or otherwise. A member appointed as a proxy and                attending a meeting shall be present in two separate capacities and                vote                accordingly. All such votes shall have the same effect as if that                member                had been present and so voted at the                meeting. |
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| 6.11 | In                case of urgency, where Operating Committee has made a recommendation                together with reasons to the Chairman requiring consideration of                a matter                by the Management Committee without delay, Chairman, after being                satisfied                may waive the requirements of notice period for the meeting and                circulation of agenda to such extent as would be consistent with                the                urgency and consideration of the matter by the Management Committee.                Alternatively, Chairman may approve submission of notice and agenda                to                members by telex or facsimile transmission or any other effective                mode of                communication agreed by all the members of the Management Committee,                receipt of which shall be confirmed by telephone by the Chairman                requiring                the members to confirm their decision by these modes of communication                not                later than three (3) Business Days from confirmation                of |
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| 6.12 | The                meetings of the Management Committee shall be held in India, unless                otherwise mutually agreed by the members of the Management Committee.                All                expenses of the members of the Management Committee attending meetings                shall be borne by the respective Party and shall in no event be cost                recoverable. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.13 | All                matters requiring the approval of the Management Committee shall                be                generally approved by a unanimous vote of the members of the Management                Committee present as well as the views of the members received by                some                other mode of communication. In case, unanimity is not achieved in                decision making process within a reasonable period as may be required                under the circumstances, the decision of the Management Committee                shall be                approved by the majority Participating Interest of seventy percent                (70%)                or more with Government representative having a positive vote in                favour of                the decision. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.14 | There                shall be a quorum of the Management Committee for holding a meeting                and                making decisions with each Party to the Contract represented by at                least                one of its nominated members in the Management Committee either present                in                person or represented as per Article 6.10. If there is no quorum                in a                meeting, the meeting shall stand postponed to the same day and time                in the                next week and if quorum is not present or represented even in the                next                meeting and subject to a Government member being present, the members                present and represented will constitute the quorum and take decisions                and                decisions taken by such quorum shall be final and binding to all                the                absenting Parties or Parties not represented, notwithstanding the                provisions of Article 6.13. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.15 | The                Management Committee, if it considers necessary, may appoint legal,                financial or technical subcommittees comprised of such representatives                as                may be agreed by the Management Committee to consider any matter                requiring                approval or decision of the Management Committee. Such sub-committee                expenses shall form part of Contract Cost with relevant cost                classification as decided by the Management Committee pursuant to                the                Section 2 of the Accounting Procedure and will be cost                recoverable. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.16 | In                the event a Party to the Contract is not entitled to vote in the                Operating                Committee meetings being in default under the Operating Agreement,                and                Operator notifies Chairman of the default by the Party, then the                issue of                exercising voting right by such defaulting Party in the Management                Committee meetings shall be discussed by the Management Committee.                The                Management Committee excluding the defaulting Party, after duly hearing                the views of the defaulting Party on the matter of their default                under                Operating Agreement, shall |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

**ARTICLE      7**

**OPERATORSHIP,      OPERATING AGREEMENTAND OPERATING COMMITTEE**

| 7.1 | OIL                shall be the Operator for the purpose of carrying out Petroleum Operations                pursuant to this Contract during the term of the                Contract. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2 | No                change in the operatorship shall be effected without the consent                of the                Government and such consent shall not be unreasonably                withheld. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3 | The                functions required of the Contractor under this Contract shall be                performed by the Operator on behalf of all constituent(s) of the                Contractor subject to, and in accordance with, the terms and provisions                of                this Contract and generally accepted modern oilfield and petroleum                industry practices, provided, however, that this provision shall                not be                construed as relieving the constituent(s) of the Contractor from                any of                its obligations or liability under the                Contract. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | functions                of the said Operating Committee taking into account the provisions                of the                Contract, procedures for decision making, frequency and place of                meetings;                and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | contribution                to costs, default, sole risk, disposal of Petroleum and assignment                as                between the Parties to the Operating                Agreement. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.4.1 | Operator                shall provide to the Government a copy of the duly executed Operating                Agreement within thirty (30) days of the Effective Date or such longer                period as may be agreed to by the                Government. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.4.2 | In                case a single Company constitutes the Contractor, the provisions                of                Article 7.4 and 7.4.1 shall not be applicable. However, in case of                increase in the number of constituents of the Contractor, the provisions                of Article 7.4 and 7.4.1 shall apply from the date of such increase                in the                number of the constituents. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      8**

**GENERAL      RIGHTS AND OBLIGATIONS OF THE PARTIES **

| 8.1 | Subject                to the provisions of this Contract, the Contractor shall have the                following rights: |
|-----|---------------------------------------------------------------------------------------------------------------------------|

|   | (a) | subject                to the provisions of Article 12, the exclusive right to carry out                Petroleum Operations to recover costs and expenses as provided in                this                Contract. The right shall exclude exploitation of coal/lignite bed                methane                (CBM) by the Contractor in the Contract                Area; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the                right to use, free of charge, such quantities of Petroleum produced                as are                reasonably required for conducting Petroleum Operations in the Contract                Area in accordance with generally accepted modern oilfield and petroleum                industry practices; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the                right to lay pipelines, build roads, construct bridges, ferries,                aerodromes, landing fields, radio telephones and related communication                and                infrastructure facilities and exercise other ancillary rights as                may be                reasonably necessary for the conduct of Petroleum Operations subject                to                such approvals as may be required and the applicable laws in force                from                time to time for the regulation and control                thereof; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the                right to use all available technical data, seismic and well information,                maps, samples etc. of the Contract Area as on the Effective Date,                free of                charge, subject to nominal copying/reproduction costs for further                Petroleum Operations. The Contractor shall submit the list of all                data                required by them to Directorate General of Hydrocarbons (DGH) based                on the                list of data provided in the information docket for the block pertaining                to the Contract Area as soon as possible but not later than one hundred                and eighty (180) days from the execution of the Contract and the                same, if                available and reproducible, shall be made available to the Contractor                in                the office of DGH within ninety (90) days from the submission of                such                request for data by the Contractor, provided the Effective Date of                the                Contract has commenced and the Contractor has furnished relevant                guarantees under Article 29 of the                Contract. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | such                other rights as are specified in this                Contract. |
|--------|-----|------------------------------------------------------------------------------------|

| 8.2 | The                Government reserves the right to itself, or to grant to others the                right,                to prospect for and mine minerals or substances other than Petroleum                within the Contract Area; provided, however, that if after the Effective                Date, others are issued rights, or the Government proceeds directly                to                prospect for and mine in the Contract Area any minerals or substances                other than Petroleum, the Contractor shall use its best efforts to                avoid                obstruction to or interference with such operations within the Contract                Area and the third parties and/or the                Government, |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8.3 | The                Contractor shall having due regard to modern oilfield and petroleum                industry practices : |
|-----|----------------------------------------------------------------------------------------------------------------------------|

|   | (a) | except                as otherwise expressly provided in this Contract, conduct all Petroleum                Operations at its sole risk, cost and expense and provide all funds                necessary for the conduct of Petroleum Operations including funds                for the                purchase or lease of equipment, materials or supplies required for                Petroleum Operations as well as for making payments to employees,                agents                and Subcontractors; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | conduct                all Petroleum Operations within the Contract Area diligently,                expeditiously, efficiently and in a safe and workmanlike manner pursuant                to the Work Programme formulated in accordance with                Contract; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | ensure                provision of all information, data, samples etc. which may be required                to                be furnished under the applicable laws or under this                Contract; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | ensure                that all equipment, materials, supplies, plant and installations                used by                the Contractor, the Operator, and Subcontractors comply with generally                accepted standards and are of proper construction and kept in safe                and                good working order; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | in                the preparation and implementation of Work Programmes and in the                conduct                of Petroleum Operations, follow modern oilfield and petroleum industry                practices with such degree of diligence and prudence reasonably and                ordinarily exercised by experienced parties engaged in a similar                activity                under similar circumstances and                conditions; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | the                procedure for acquisition of goods and services, as of the Effective                Date,                shall be as per the Appendix-F of this Contract. Based on economic                considerations and generally accepted practices in the international                petroleum industry with the objective of ensuring cost and operational                efficiency in the conduct of Petroleum Operations, the Appendix-F                to this                Contract may be modified or changed with the prior approval of the                Management Committee when circumstances so                justify; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | after                the designation of a Development Area, pursuant to this Contract,                forthwith proceed to take all necessary action for prompt and orderly                development of the Development Area and for the production of Petroleum                in                accordance with the terms of this                Contract; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | appoint                a technically competent and sufficiently experienced representative,                and,                in his absence, a suitably qualified replacement therefor, who shall                be                resident in India and who shall have full authority to take such                steps as                may be necessary to implement this Contract and whose name(s) shall,                on                appointment within ninety (90) days after commencement of the first                Contract Year, be made known to the                Government; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (i) | provide                acceptable working conditions, living accommodation and access to                medical                attention and nursing care for all personnel employed in Petroleum                Operations; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | carry                out such other obligations as are specified in this Contract, in                particular those specified in Article 14; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | be                always mindful of the rights and interests of India in the conduct                of                Petroleum Operations. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      9**

**GOVERNMENT      ASSISTANCE**

| 9.1 | Upon                application in the prescribed manner, and subject to compliance with                applicable laws and relevant procedures, the Government or its nominee                will: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | use                their good offices to provide the right of ingress and egress from                the                Contract Area and any facilities used in Petroleum Operations, wherever                located, and which may be within their                control; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | use                their good offices, when necessary, to assist the Contractor in                procurement or commissioning of facilities required for execution                of Work                Programmes including necessary approvals, permits, consents,                authorisations, visas, work permits, Licenses including Licenses                and                Leases, rights of way, easement, surface rights and security protection                at                the Contractor’s cost, required pursuant to this Contract and which may be                available from resources within its control;                and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | in                the event that onshore facilities are required outside the Contract                Area                for Petroleum Operations including, but not limited to, storage,                loading                and processing facilities, pipelines and offices, use their good                offices                in assisting the Contractor to obtain from the authorities of the                state in                which such facilities are required, such licenses, permits,                authorizations, consents, security protection at the Contractor’s cost,                surface rights and easements as are required for the construction                and                operation of the said facilities by the                Contractor. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      10**

**DISCOVERY,      DEVELOPMENT AND PRODUCTION**

| 10.1 | If                and when a Discovery is made within the Contract Area, the Contractor                shall: |
|------|---------------------------------------------------------------------------------------------------------------|

|   | (a) | forthwith                inform the Management Committee and Government of the                Discovery; |
|--------|-----|----------------------------------------------------------------------------------------------------------|

|   | (b) | promptly                thereafter, but in no event later than a period of thirty (30) days                from                the date of the Discovery, furnish to the Management Committee and                Government particulars, in writing, of the Discovery;                and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | promptly                run tests to determine whether the Discovery is of potential commercial                interest and, within a period of sixty (60) days after completion                of such                tests, submit a report to the Management Committee containing data                obtained from such tests and its analysis and interpretation thereof,                together with a written notification of whether, in the Contractor's                opinion, such Discovery is of potential commercial interest and merits                appraisal. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | If                the Contractor determines to conduct a drill stem or production test,                in                open hole or through perforated casing, with regard to any Exploration                Well, it shall notify the Government of the time of such test at                least                forty eight (48) hours prior to the proposed test, and the Government                shall have the right to have a representative present during such                test. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | If,                pursuant to Article 10.1 (c), the Contractor notifies the Management                Committee that the Discovery is of potential commercial interest,                the                Contractor shall prepare and submit to the Management Committee within                one                hundred and twenty (120) days of such notification, a proposed Appraisal                Programme with a Work Programme and Budget to carry out an adequate                and                effective appraisal of such Discovery designed to achieve both the                following objectives: (i) determine without delay, and, in any event,                within the period specified in Article 10.5, whether such Discovery                is a                Commercial Discovery and (ii) determine, with reasonable precision,                the                boundaries of the area to be delineated as the Development                Area. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | The                proposed Appraisal Programme shall be reviewed by the Management                Committee                within thirty (30) days after submission thereof pursuant to Article                10.3.                The said Appraisal Programme, together with the Work Programme and                Budget                submitted by the Contractor, which may be revised or modified or                amended                by the Contractor in light of the Management Committee review, shall                be                adopted as the Appraisal Programme and the Contractor shall promptly                commence implementation thereof; and the annual Budget for the Exploration                Period, adopted pursuant to Article 5, shall be revised                accordingly. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.6 | The                Management Committee shall, within forty (40) days of the date of                the                notice referred to in Article 10.5, review the proposal of the Contractor                and request any other additional information it may reasonably require                so                as to complete the review of the proposal made by the Contractor.                The                Contractor shall furnish the additional information within thirty                (30)                days from the date of the request. The review by the Management Committee                shall be made and conveyed to the Contractor within the later of                (a)                ninety (90) days from the date of notice referred to in Article 10.5                or                (b) forty (40) days of receipt of such other information as may be                required under this Article. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.7 | If                the Contractor declares the Discovery a Commercial Discovery after                taking                into account the advice of the Management Committee as referred in                the                Article 10.6, within two hundred (200) days of the declaration of                the                Discovery as a Commercial Discovery, the Contractor shall submit                to the                Management Committee a comprehensive development plan of the Commercial                Discovery which shall: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | relate                to the Discovery Area and contain a Reservoir or part thereof and                the                boundaries of the proposed Development                Area; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | be                designed to ensure the most efficient, beneficial and timely use                of the                Petroleum resources discovered; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | be                prepared** **in                accordance with sound engineering, economic, safety and environmental                principles recognised in the generally accepted modern oilfield and                petroleum industry practices. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (i) | description                of the nature and characteristic of the Reservoir, data, statistics,                interpretations and conclusions on all aspects of the geology, Reservoir                evaluation, Petroleum engineering factors, Reservoir models, estimates                of                reserve in place, possible production magnitude, nature and ratio                of                Petroleum fluids and analysis of producible                Petroleum; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | outlines                of the development project and/or alternative development projects,                if                any, describing the production facilities to be installed and the                number                of Wells to be drilled under such development project and/or alternative                development projects, if any; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | estimate                of the rate of production to be established and projection of the                possible                sustained rate of production in accordance with modern oilfield and                petroleum industry practices under such development project and/or                alternative development projects, if any, which will ensure that                the area                does not suffer an excessive rate of decline of production or an                excessive                loss of Reservoir pressure; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | estimates                of Development Costs and Production Costs under such development                project                and/or alternative development projects, if                any; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | Contractor's                recommendations as to the particular project that it would prefer; |
|--------|-----|------------------------------------------------------------------------------------------------|

|   | (vi) | Work                Programme and Budget for development proposals relating to the proposed                Development Area; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | anticipated                adverse impact on the environment and measures to be taken for prevention                or minimisation thereof and for general protection of the environment                in                conduct of operations; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | measures                to be taken for the health and safety of persons employed in Petroleum                Operations; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

| (ix)   | the                information required in Article 21. |
|------------------|--------------------------------------------------------|

| 10.8 | A                proposed development plan submitted by the Contractor pursuant to                Article                10.7 may be approved by the Management Committee within one hundred                and                ten (110) days of submission thereof or eighty (80) days of receipt                of any                additional information requested by the Management Committee. In                case the                Management Committee requires any reasonable additional information,                the                same shall be requested by it within eighty (80) days from the submission                of the development plan. The Contractor shall provide such additional                information within thirty (30) days from the request by the Management                Committee. If, within a period of one hundred and ten (110) days                after                submission of a proposed development plan or eighty (80) days from                the                receipt of any additional information, where asked by the Management                Committee, the Management Committee fails to convey a decision to                the                Contractor, the Contractor shall have option to submit the proposal                to the                Government. Also, where, the Management Committee rejects the development                plan of the Contractor, the Contractor can submit the                development |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.9 | A                Development Plan approved by the Management Committee or Government,                as                may be the case, from time to time shall commit the Contractor to                the                obligations stipulated in Articles 10.10 to                10.12. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.10 | Work                Programmes and Budgets for Development and Production Operations                shall be                submitted to the Management Committee as soon as possible after the                approval of a Development Plan under Article 10.8 and thereafter                not later                than 31st December each Year in respect of the Year immediately                following. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.11 | The                Management Committee, when considering any Work Programme and Budget,                may                require the Contractor to prepare an estimate of potential production                to                be achieved through the implementation of the said Work Programme                and                Budget for each of the three (3) Years following the Year to which                the                Work Programme and Budget relate. If major changes in yearly estimates                of                potential production are required, these shall be based on evidence                necessitating such changes. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.12 | Not                later than the fifteenth (15th)                of January each Year, in respect of the Year immediately following                commencement of Commercial Production, the Contractor shall determine                the                "Programme Quantity" with the approval of the Management Committee. The                Programme Quantity for any Year shall be the maximum quantity of                Petroleum                based on Contractor's estimates, as approved by the Management Committee,                which can be produced from a Development Area consistent with modern                oilfield and petroleum industry practices and minimising unit production                cost, taking into account the capacity of the producing Wells, gathering                lines, separators, storage capacity and other production facilities                available for use during the relevant Year, as well as the transportation                facilities up to the Delivery                Point. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.13 | Proposed                revisions to the details of a Development Plan or an annual Work                Programme                or Budget in respect of Development and Production Operations shall,                for                good cause and if the circumstances so justify, be submitted for                approval                to the Management Committee. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.14 | In                the event the area encompassing the Commercial Discovery extends                beyond                the Development Area designated in the Development Plan, either within                the                original Contract Area but subsequently relinquished or, outside                the                original Contract Area, the Management Committee may make recommendations                to the Government |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

**ARTICLE      11**

**PETROLEUM      EXPLORATION LICENSE AND MINING LEASE**

| 11.1 | The                Contractor shall submit an application for grant of License in respect                of                the Contract Area, as early as possible, but not later than fifteen                (15)                Business Days from the date of execution of this                Contract. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2 | On                submission of a development plan of a Commercial Discovery pursuant                to                Article 10.7, the Contractor shall submit an application for a Lease                in                respect of the proposed Development Area to the relevant State                Government(s). |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3 | Where                a part of a Reservoir in respect of which a Commercial Discovery                has been                declared extends beyond the Contract Area, subject to Article 10.14                such                area may be included in the proposed Development Area, in relation                to                which application for a Lease is made, on terms and conditions as                decided                by the Central Government; provided that such area                is: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | not                subject to a license or lease granted to any other                person; |
|--------|-----|----------------------------------------------------------------------------------------------|

|   | (b) | not                the subject of negotiations/bidding or contract awarded for a license                or                lease; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | available                for licensing (i.e. is not an area over which Petroleum Operations                are                excluded). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

| 11.4 | Where                a Development Plan has been approved pursuant to Article 10 and the                Contractor has complied with the terms and conditions of the License                and                this Contract and is not in breach of any of the terms thereof, or                the                provisions of any law and subject to normal Government                clearances/approvals being obtained by the Contractor as applicable                before                grant/issue of the Lease, the Central Government will assist the                Contractor in obtaining the Lease from the relevant State Government(s)                over the Development Area as agreed, subject to Article 11.5 to enable                the                Contractor to carry out Petroleum Operations in the Development Area                in                accordance with the Development                Plan. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.5 | The                Lease shall be granted for an initial period of twenty (20) years                from the                date of grant thereof subject to: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | cancellation                in accordance with its terms or for termination of this Contract                in                accordance with its terms; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | extension                by mutual agreement between the Parties for five (5) years or such                period                as may be agreed after taking into account the balance recoverable                reserve                and balance economic life of the                Field/Development |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | the                terms of this Contract and other terms and conditions as set forth                in such                Lease be consistent with this Contract and the relevant                legislation. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      12**

**UNIT      DEVELOPMENT**

| 12.1 | If                a Reservoir in a Discovery Area is situated partly within the Contract                Area and partly in an area in India over which other parties have                a                contract to conduct petroleum operations and both parts of the Reservoir                can be more efficiently developed together on a commercial basis,                on                receiving information in writing from any party to these contracts                or any                information on this from any bonafide source, the Government may,                for                securing the more effective recovery of Petroleum from such Reservoir,                by                notice in writing to the Contractor, require that the                Contractor: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | collaborate                and agree with such other parties on the joint development of the                Reservoir ; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------|

|   | (b) | submit                such agreement between the Contractor and such other parties to the                Government for approval within one hundred and eighty (180) days;                and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2 | If                no plan is submitted within the period specified in Article 12.1                (c) or                such longer period as the Government and the Contractor and the other                parties referred to in Article 12.1 may agree, or, if such plan as                submitted is not acceptable to the Government and the Parties cannot                agree                on amendments to the proposed joint development plan, the Government                may                cause to be prepared, at the expense of the Contractor and such other                parties a plan for such joint development consistent with generally                accepted modern oilfield and petroleum industry practices which shall                take                into consideration any plans and presentations made by the Contractor                and                the aforementioned other parties. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.3 | If                the parties are unable to agree on the proposed plan for joint                development, the Government may call for a joint development plan                from an                independent agency, which agency, may make such a proposal after                taking                into account the position of the parties in this regard. Such a                development plan, if approved by Government, shall be binding on                the                parties, notwithstanding their disagreement with the plan. However,                the                Contractor may in case of any disagreement on the issue of joint                development or the proposed joint development plan, prepared in accordance                with Article 12.2 or within forty five (45) Business Days of the                plan                approval as aforesaid in this Article, notify the Government that                it                elects to surrender its rights in the Reservoir/Discovery in lieu                of                participation in a joint                development. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12.4 | If                a proposed joint development plan is agreed and adopted by the parties,                or                adopted following determination by the Government, the plan as finally                adopted shall be the approved joint development plan and the Contractor                shall comply with the terms of the said development plan as if the                Commercial Discovery is                established. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.5 | The                provisions of Articles 12.1, 12.2 and Article 12.3 shall apply mutatis                mutandis** **to                a Discovery of a Reservoir located partly within the Contract Area,                which,                although not equivalent to a Commercial Discovery if developed alone,                would be a Commercial Discovery if developed together with that part                of                the Reservoir which extends outside the Contract Area to the areas                subject                to contract for petroleum operations by other                parties. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      13**

**MEASUREMENT      OF PETROLEUM**

| 13.1   | Petroleum                used for internal consumption for Petroleum Operations, flared, saved                and                sold from the Contract Area shall be measured by methods and appliances                generally accepted and customarily used in modern oilfield and petroleum                industry practices and approved by the Management Committee and the                Government. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2 | The                Government may, at all reasonable times, inspect and test the appliances                used for measuring the volume and determining the quality of Petroleum,                provided that any such inspection or testing shall be carried out                in such                a manner so as not to unduly interfere with Petroleum                Operations. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.3 | Before                commencement of production from the Contract Area, the Parties shall                mutually agree on: |
|------|------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | methods                to be employed for measurement of volumes of Petroleum                production; |
|--------|-----|----------------------------------------------------------------------------------------------------------|

|   | (b) | the                point or points at which Petroleum shall be measured and the respective                shares allocated to the Parties in accordance with the terms of this                Contract; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the                frequency of inspections and testing of measurement appliances and                relevant procedures relating thereto;                and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the                consequences of a determination of an error in                measurement. |
|--------|-----|-----------------------------------------------------------------------------------------------|

| 13.4 | The                Contractor shall undertake to measure the volume and quality of the                Petroleum Produced and Saved from the Contract Area at the agreed                measurement point consistent with generally accepted modern oilfield                and                petroleum industry practices with the frequency and according to                procedures agreed pursuant to Article 13.3. The Contractor shall                not make                any alteration in the agreed method or procedures for measurement                or to                any of the approved appliances used for that purpose without the                written                consent of the Management Committee and the                Government. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.5 | The                Contractor shall give the Government timely notice of its intention                to                conduct measuring operations or any agreed alteration for such operations                and the Government shall have the right to be present at and supervise,                either directly or through authorised representatives, such                operations. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.6 | The                Contractor shall keep all the records of analysis and measurement                of                hydrocarbons calibrations and proving of measurement system and make                available to Government or its authorized agency such records on                request. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      14**

**PROTECTION      OF THE ENVIRONMENT**

| 14.1 | The                Government and the Contractor recognise that Petroleum Operations                will                cause some impact on the environment in the Contract Area. Accordingly,                in                performance of the Contract, the Contractor shall conduct its Petroleum                Operations with due regard to concerns with respect to protection                of the                environment and conservation of natural resources and shall in                particular; |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | employ                modern oilfield and petroleum industry practices and standards including                advanced techniques, practices and methods of operation for the prevention                of Environmental Damage in conducting its Petroleum                Operations; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | take                necessary and adequate steps to: |
|--------|-----|------------------------------------------------------|

|   | (i) | prevent                Environmental Damage and, where some adverse impact on the environment                is                unavoidable, to minimise such damage and the consequential effects                thereof                on property and people; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | ensure                adequate compensation for injury to persons or damage to property                caused                by the effect of Petroleum Operations;                and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | comply                with the requirements of applicable laws and the reasonable requirements                of the Government from time to                time. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2 | If                the Contractor fails to comply with the provisions of paragraph (b)(i)                of                Article 14.1 or contravenes any relevant law, and such failure or                contravention results in any Environmental Damage, the Contractor                shall                forthwith take all necessary and reasonable measures to remedy the                failure                and the effects thereof. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.3 | If                the Government in accordance with the laws has good reason to believe                that                any works or installations erected by the Contractor or any operations                conducted by the Contractor are endangering or may endanger persons                or any                property of any person, or are causing or may cause pollution, or                are                harming or may harm fauna or flora or the environment to a degree                which                the Government deems unacceptable, the Government may require the                Contractor to take remedial measures within such reasonable period                as may                be determined by the Government and to repair any such** **damage.                If the Government deems it necessary, it may also require the Contractor                to discontinue Petroleum Operations in whole or in part until the                Contractor has taken such remedial measures or has repaired any damage                caused. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14.4 | The                measures and methods to be used by the Contractor for the purpose                of                complying with the terms of paragraph (b)(i) of Article 14.1 shall                be                determined in timely consultation with the Government upon the                commencement of Petroleum Operations or whenever there is a significant                change in the scope or method of conducting Petroleum Operations                and shall                take into account the international standards applicable in similar                circumstances and the relevant environmental impact study carried                out in                accordance with Article 14.5 below. The Contractor shall notify the                Government, in writing, of the measures and methods finally determined                by                the Contractor and shall cause such measures and methods to be reviewed                from time to time in the light of prevailing                circumstances. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.5 | The                Contractor shall cause a person or persons with special knowledge                on                environmental matters, to carry out two environmental impact studies                in                order: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | to                determine at the time of the studies the prevailing situation relating                to                the environment, human beings and local communities, the flora and                fauna                in the Contract Area and in the adjoining or neighbouring areas;                and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | to                establish the likely effect on the environment, human beings and                local                communities, the flora and fauna in the Contract Area and in the                adjoining                or neighbouring areas in consequence of the relevant phase of Petroleum                Operations to be conducted under this Contract, and to submit, for                consideration by the Parties, methods and measures contemplated in                Article                14.4 for minimising Environmental Damage and carrying out Site Restoration                activities. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.5.1 | The                first of the aforementioned studies shall be carried out in two parts,                namely, a preliminary part which must be concluded before commencement                of                any field work relating to a seismographic or other survey, and a                final                part relating to drilling in the Exploration Period. The part of                the study                relating to drilling operations in the Exploration Period shall be                approved by Government before the commencement of such drilling                operations, it being understood that such approval shall not be                unreasonably withheld. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.5.2 | The                second of the aforementioned studies shall be completed before                commencement of Development Operations and shall be submitted by                the                Contractor as part of the Development Plan, with specific approval                of                Government being obtained before commencement of Development Operations,                it being understood that such approval shall not be unreasonably                withheld. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.5.3 | The                studies mentioned in Article 14.5 above shall contain proposed                environmental guidelines to be followed in order to minimize Environmental                Damage and shall include, but not be limited to, the following, to                the                extent appropriate to the respective study taking into account the                phase                of operations to which the study relates                : |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | proposed                access cutting; |
|--------|-----|-----------------------------------------|

|   | (b) | clearing                and timber salvage; |
|--------|-----|---------------------------------------------|

|   | (c) | wildlife                and habitat protection; |
|--------|-----|-------------------------------------------------|

|   | (d) | fuel                storage and handling; |
|--------|-----|-------------------------------------------|

|   | (e) | use                of explosives; |
|--------|-----|-----------------------------------|

|   | (f) | camps                and staging; |
|--------|-----|-----------------------------------|

|   | (g) | liquid                and solid waste disposal; |
|--------|-----|-------------------------------------------------|

|   | (h) | cultural                and archaeological sites; |
|--------|-----|---------------------------------------------------|

|   | (i) | selection                of drilling sites; |
|--------|-----|---------------------------------------------|

|   | (j) | terrain                stabilization; |
|--------|-----|---------------------------------------|

|   | (k) | protection                of freshwater horizons; |
|--------|-----|---------------------------------------------------|

|   | (l) | blowout                prevention plan; |
|--------|-----|-----------------------------------------|

|   | (m) | flaring                during completion and testing of Gas and Oil                Wells; |
|--------|-----|-------------------------------------------------------------------------------------------|

|   | (n) | abandonment                of Wells; |
|--------|-----|--------------------------------------|

|   | (o) | rig                dismantling and site completion; |
|--------|-----|-----------------------------------------------------|

|   | (p) | reclamation                for abandonment; |
|--------|-----|---------------------------------------------|

|   | (q) | noise                control; |
|--------|-----|-------------------------------|

|   | (r) | debris                disposal; and |
|--------|-----|-------------------------------------|

|   | (s) | protection                of natural drainage and water flow. |
|--------|-----|---------------------------------------------------------------|

| 14.5.4 | Subject                to the provision of all applicable laws and notifications on protection                of                environment, any new project or expansion or modernization projects                for                petroleum operations for which a proposal is submitted by the Contractor,                the Government shall compete the assessment of the project within                a period                of ninety (90) days from the receipt of the requisite documents and                data                from the project authorities and completion of public hearing. The                decision of the Government on the proposal of the Contractor for                environmental clearance shall be conveyed within thirty (30) days                thereafter. However, wherever forest land is involved; the Contractor                /                user State Government concerned, under the Forest (Conservation)                Act,                1980. The decision of the Central Government on such proposal of                the                Contractor / user agency shall be taken within sixty (60) days from                the                date of receipt of proposal of the Contractor / user agency from                the State                Government. The state Government is required to convey its recommendations                on the proposal complete in all respect to the Central Government                or                otherwise within ninety (90) days from the date of receipt of the                same                from the applicant. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.6 | The                Contractor shall ensure that: |
|------|--------------------------------------------------|

|   | (a) | Petroleum                Operations are conducted in an environmentally acceptable and safe                manner                consistent with modern oilfield and petroleum industry practices                and that                such Petroleum Operations are properly                monitored; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the                pertinent completed environmental impact studies are made available                to its                employees and to its contractors and Subcontractors to develop adequate                and proper awareness of the measures and methods of |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | the                contracts entered into between the Contractor and its contractors                and                Subcontractors relating to its Petroleum Operations shall include                the                provisions stipulated herein and any established measures and methods                for                the implementation of the Contractor's obligations in relation to                the                environment under this Contract. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.7 | The                Contractor shall, prior to conducting any drilling activities, prepare                and                submit for review by the Government contingency plans for dealing                with Oil                spills, fires, accidents and emergencies, designed to achieve rapid                and                effective emergency response. The plans referred to above shall be                discussed with the Government and concerns expressed shall be taken                into                account. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.7.1 | In                the event of an emergency, accident, Oil spill or fire arising from                Petroleum Operations affecting the environment, the Contractor shall                forthwith notify the Government and shall promptly implement the                relevant                contingency plan and perform such Site Restoration as may be necessary                in                accordance with modern oilfield and petroleum industry                practices. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.7.2 | In                the event of any other emergency or accident arising from the Petroleum                Operations affecting the environment, the Contractor shall take such                action as may be prudent and necessary in accordance with modern                oilfield                and petroleum industry practices in such                circumstances. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.8 | In                the event that the Contractor fails to comply with any of the terms                contained in Article 14.7 within a period specified by the Government,                the                Government, after giving the Contractor reasonable notice in the                circumstances, may take any action which may be necessary to ensure                compliance with such terms and to recover from the Contractor, immediately                after having taken such action, all costs and expenditures incurred                in                connection with such action together with such interest as may be                determined in accordance with Section 1.7 of Appendix C of this                Contract. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.9 | On                expiry or termination of this Contract or relinquishment of part                of the                Contract Area, the Contractor                shall: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | subject                to Article 27, remove all equipment and installations from the                relinquished area or former Contract Area in a manner agreed with                the                Government pursuant to an abandonment plan;                and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | perform                all necessary Site Restoration in accordance with modern oilfield                and                petroleum industry practices and take all other action necessary                to                prevent hazards to human life or to the property of others or the                environment. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14.10 | The                Contractor shall prepare a proposal for the restoration of site including                abandonment plan and requirement of funds for this and the annual                contribution. This will be submitted along with the annual Budget                for the                consideration and approval of the Management Committee. The annual                contribution shall be deposited by the Contractor in the Site Restoration                fund which will be established, in accordance with the scheme notified                by                the Government. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.11 | Subject                to Section 3.2 of Accounting Procedure, any Site Restoration fund                scheme                formulated by Government and subject to provisions of this Contract,                any                and all costs incurred by the Contractor pursuant to this Article                shall be                cost recoverable including but not limited to sinking funds established                for abandonment and restoration of the Contract                Area. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.12 | In                this Article, a reference to Government includes the State                Government. |
|-------|---------------------------------------------------------------------------------------------------------|

| 14.13 | Where                the Contract Area is partly located in areas forming part of certain                national parks, sanctuaries, mangroves, wetlands of national importance,                biosphere reserves and other biologically sensitive areas passage                through                these areas shall generally not be permitted. However, if there is                no                passage, other than through these areas to reach a particular point                beyond                these areas, permission of the appropriate authorities shall be                obtained. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.14 | The                obligations and liability of the Contractor for the environment hereunder                shall be limited to damage to the environment                which: |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | occurs                after the Effective Date; and |
|--------|-----|-----------------------------------------------------|

|   | (b) | results                from an act or omission of the                Contractor. |
|--------|-----|----------------------------------------------------------------------------------|

----

**ARTICLE      15**

**RECOVERY      OF COST PETROLEUM **

| 15.1 | The                Contractor shall be entitled to recover Contract Costs out of a percentage                of the total value of Petroleum Produced and Saved from the Contract                Area                in the Year in accordance with the provisions of this                Article. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.2 | Exploration                Costs incurred by the Contractor in the Contract Area upto the date                of                first Commercial Production shall be aggregated, and the Contractor                shall                be entitled to recover the aggregate of such Exploration Costs out                of the                Cost Petroleum at the rate of one hundred percent (100%) per annum                of such                Exploration Costs beginning from the date of such Commercial                Production. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.3 | The                Contractor shall be entitled to recover out of the Cost Petroleum                from the                Contract Area the Exploration Costs which it has incurred in any                Year                after the date of Commercial Production at the rate of **one                hundred**                percent **(100%)**                per annum of such Exploration Costs beginning from the date such                Exploration Costs are incurred. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.4 | Development                Costs incurred by the Contractor in the Contract Area upto the date                of                first Commercial Production shall be aggregated, and the Contractor                shall                be entitled to recover out of the Cost Petroleum the aggregate of                such                Development Costs at the rate of one hundred percent (100%) per annum                of                such Development Costs beginning from the date of such Commercial                Production. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | The                unrecovered portions of Contract Costs shall be carried forward to                the                following Year and the Contractor shall be entitled to recover such                Contract Costs in such Year or the subsequent Years as if such Contract                Costs were due for recovery in that Year, or the succeeding Years,                until                the unrecovered Contract Costs have been fully recovered out of Cost                Petroleum from the Contract Area. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**forty      one**
**41%**

| 15.11 | Pending                completion of the calculations required to establish definitively                the                Contractor's entitlement to Cost Petroleum from the Contract Area                in any                Year, the Contractor shall take delivery, provisionally, of volumes                of                Crude Oil or Natural Gas representing its estimated Cost Petroleum                entitlement calculated with reference to estimated production quantities,                costs and prices as established by the Contractor and approved by                the                Management Committee. Such provisional determination of Cost Petroleum                shall be made every Quarter on an accumulative basis. Within ninety                (90)** **days                of the end of each Year, a final calculation of the Contractor's                entitlement to Cost Petroleum, based on actual production quantities,                costs and prices for the entire Year as reflected in audited accounts                under Article 25.4.3, shall be undertaken and any necessary adjustments                to                the Cost Petroleum entitlement shall be agreed upon between the Government                and the Contractor within thirty (30) days and made within thirty                (30)                days thereafter. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.12 | Where                more than one Party constitutes the Contractor, the percentage of                the                total Cost Petroleum from the Contract Area which shall be available                to                each such Party in any Year for recovery of its share of Contract                Costs                shall be determined on the basis of the respective Participating                Interest                of each such Party. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.13 | The                Contractor acknowledges that the cost estimates for Minimum Work                Programme                are the realistic estimate of expenditure. For the purposes of allowing                cost recovery under Article 15 herein read with Section 3 of the                Accounting Procedure, the cost estimates given by the Contractor                in the                bid documents towards the Minimum Work Programme in all three Exploration                Phases shall be |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

**ARTICLE      16**

**PRODUCTION      SHARING OF PETROLEUM **

| 16.1 | The                Parties to this Contract shall share in the Profit Petroleum in each                Year                in accordance with the provisions of this Article. A Party's share                of                Profit Petroleum in any Year, shall be calculated on the basis of                the                Investment Multiple actually achieved by the Contractor at the end                of the                preceding Year for the Contract Area as provided in Appendix-D. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ninety      one percent (91%)**
**nine      percent (9%)**

**sixty      nine percent (69%) **
**thirty      one percent (31%)**

**one      percent (1%)**
**ninety      nine percent (99%)**

| 16.2.4 | When                the Investment Multiple of the Contractor at the end of any Year                is equal                to or more than two and one half (2.5) but is less than three (3.0),                the                Government shall be entitled to take and receive **one                percent (1%)**and                the Contractor shall be entitled to take and receive **ninety                nine percent (99%)**of                the total Profit Petroleum from the Contract Area with effect from                the                start of the succeeding Year. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**one      percent (1%) **
**ninety      nine percent (99%)**

----

| 16.2.6 | When                the Investment Multiple of the Contractor at the end of any Year                is equal                to or more than three and one half (3.5), the Government shall be                entitled                to take and receive **one                percent (1%)**and                the Contractor shall be entitled to take and receive **ninety                nine percent (99%)**                of                the total Profit Petroleum from the Contract Area with effect from                the                start of the succeeding Year. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.3 | Any                balance left to the credit of the Parties in any Site Restoration                account,                opened pursuant to the provision of Article 14.10, after Site Restoration                has been done by the Contractor in accordance with the provisions                of this                Contract and the laws in this regard, shall be shared between the                Government and the Contractor as per the Investment Multiple reached                at                the time of ceasing of production from the Contract                Area. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.4.1 | The                Government shall have the option to take its entitlement to Profit                Petroleum** **Other                than "ANG" or "NANG**"**either                in cash or in kind in any Year. In case of "ANG" or "NANG", as the                case                may be, the Government shall have the option to take its entitlement                to                Profit Petroleum in cash or in kind and such option shall be exercised                at                interval of every five (5) Years from the commencement of first Commercial                Production from the Contract Area. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.4.2 | In                accordance with the Article 16.4.1, The Government shall exercise                such                option by giving a written notice to the Contractor not later than                thirtieth (30th)                June in the preceding Year in which the entitlement is due. Once                the                Government has exercised its option, the same shall continue unless                the                Government informs the Contractor otherwise. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.4.3 | Where                the Government has informed the Contractor of its intention to take                its                share in kind, the Parties shall mutually agree on a procedure for                delivery of the Government’s share of Profit Petroleum and, where                relevant, the composition of the Petroleum which is to be                delivered. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

** **

----

----

**ARTICLE      17**

**TAXES,      ROYALTIES, RENTALS, DUTIES ETC.**

| 17.1 | Companies,                their employees, persons providing any materials, supplies, services                or                facilities or supplying any ship, aircraft, machinery, equipment                or plant                (whether by way of sale or hire) to the Companies for Petroleum Operations                or for any other purpose and the employees of such persons shall                be                subject to all fiscal legislation in India except where, pursuant                to any                authority granted under any applicable law, they are exempted wholly                or                partly from the application of the provisions of a particular law                or as                otherwise provided herein. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.2 | Pursuant                to the provisions of section 42 of the Income-tax Act, 1961, the                allowances specified herein shall apply in computing income tax payable                by                a Company on its profits and gains from the business of Petroleum                Operations in lieu of (and not in addition to) corresponding allowances                provided for under the heading "Profits and Gains of Business or                Profession" in the Income-tax Act, 1961. Any other allowance, which                are                not specified herein, shall be treated in accordance with the provisions                of Income-tax Act, 1961. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.2.1 | Subject                to the provisions herein below, deductions at the rate of one hundred                percent (100%) per annum shall be allowed for all expenditures, both                capital and revenue expenditures, incurred in respect of Exploration                Operations and drilling operations. The expenditure incurred in respect                of                Development Operations, other than drilling operations, and Production                Operations will be allowable as per the provisions of the Income-tax                Act,                1961. The expenses so incurred are subject to the                following: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | where                any expenditure is not solely incurred on Petroleum Operations or                is                incurred as part of or in conjunction with any other business, only                that                proportion of the total expenditure which can be proved to the assessing                officer to represent a fair proportionate part thereof, having regard                to                all relevant facts and circumstances, shall be                allowed; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | sections                40A and 44C of the Income-tax Act, 1961, shall                apply. |
|--------|-----|----------------------------------------------------------------------------------------------|

|   | (a) | unsuccessful                Exploration Costs incurred in contract areas other than the Contract                Area                where a Commercial Discovery has been made up to the date of commencement                of Commercial Production shall be aggregated                and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | unsuccessful                Exploration Costs incurred in contract areas other than the Contract                Area                where a Commercial Discovery has been made, after the commencement                of                Commercial Production, shall be deductible at the rate of one hundred                per                cent (100%) per annum of such costs beginning from the Year such                costs are                incurred. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.2.4 | For                any or all accumulated expenditures incurred in respect of Exploration                Operations and drilling operations prior to the date of commercial                production, Company(ies) shall have option to amortize such expenditures                over a period of ten (10) years from the date of first commercial                production. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.2.6 | Company(ies)                shall be eligible for benefits available under section 80 IA of the                Income-tax Act, 1961 as applicable from time to                time. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.3 | For                the purposes of Article 17.2 and section 42 of the Income-tax Act,                1961: |
|------|------------------------------------------------------------------------------------------------------------|

|   | (a) | "agreement"                means this Contract as defined in Article                1; |
|--------|-----|----------------------------------------------------------------------------------------|

|   | (b) | "commercial                production" shall have the meaning assigned in Article                1. |
|--------|-----|-----------------------------------------------------------------------------------------------------|

| 17.3.2 | The                terms "assessing officer", "assessed loss", and "assessment year"                shall                have the meaning as defined in the Income-tax Act,                1961. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 17.3.3 | The                other terms used herein and defined in Article 1 shall have the meaning                therein ascribed. |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

| 17.4 | Companies                (Lessee) shall be required to pay royalty to the Government (Lessor)                for                offshore areas at the rate of ten percent (10%) of the well-head                value of                Crude Oil and Natural Gas. In case of an onshore area, Companies                shall be                required to pay to the State Government(s) (Lessor) at the rate of                twelve                point five zero percent (12.5%) of the well-head value of Crude Oil                and                ten percent (10%) of the well-head value of Natural Gas. In case                of an                offshore area falling beyond four hundred (400) metre isobath, the                rate of                royalty payable by Companies (Lessee) to the Government (Lessor)                shall be                at the rate of five percent (5%) of the well-head value of Crude                Oil and                Natural Gas for the first seven years from the date of commencement                of                Commercial Production in the Field. The valuation of Crude Oil and                Natural                Gas shall be as per the Article 19 and Article 21 respectively. The                royalty amount due to Government/State Government(s) shall be payable                latest by the end of the succeeding                Month. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.5 | Machinery,                plant, equipment, materials and supplies imported by the Contractor                and                its Subcontractors solely and exclusively for use in Petroleum Operations                under this Contract or similar contracts with the Government where                customs                duty has been exempted by the Government shall be exempt from customs                duties and export duties or other charges on re-exportation of the                said                items in accordance with applicable                legislation. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.6 | The                Government shall have the right to inspect the records and documents                of                the physical item or items for which an exemption has been provided                pursuant to Article 17.5 to determine that such item or items are                being or                have been imported solely and exclusively for the purpose for which                the                exemption was granted. The Government shall also be entitled to inspect                such physical items wherever located to ensure that such items are                being                used for the purpose herein specified and any item not being so used                shall                immediately become liable to payment of the applicable customs                duties. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.7 | Subject                to Article 27, the Contractor and its Subcontractors may sell or                otherwise                transfer in India all imported items which are no longer required                for                Petroleum Operations, subject to applicable laws including rules,                regulations, procedures, notifications etc. governing customs duties                and                sale or disposal of such items. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.8 | Any                sales tax or tax of similar nature payable on the sale(s) of Petroleum                under this Contract shall be borne/reimbursed by the                buyer(s). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.9 | Subject                to the provisions herein above provided, the Contractor shall be                liable                for payment of: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | annual                license charges and rental fees and other charges under the                Rules; |
|--------|-----|---------------------------------------------------------------------------------------------------------|

----

|   | (b) | charges                payable by specified industries or in connection with Petroleum Operations                under applicable legislation; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | payments                for purchase, lease or rental of land or land rights in connection                with                Petroleum Operations; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | taxes,                fees or charges for specific services rendered on request or to the                public                generally; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | customs                duties, except for those items subject to exemption as provided in                Article                17, applicable at the rates specified from time to time;                and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | stamp                duties, registration fees, license fees, taxes such as taxes on property                or assets (not calculated by reference to income or otherwise exempted)                or                other levies, fees or charges of a non-discriminatory nature and                generally                applicable in India or in the State where Petroleum Operations are                being                conducted. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.10 | If                any change in or to any Indian law, rule or regulation dealing with                income                tax or other corporate tax, export/import tax, excise, customs duty                or any                other levies, duties or taxes imposed on Petroleum or dependent upon                the                value of Petroleum results in a material change to the expected economic                benefits accruing to any of the Parties after the date of execution                of the                Contract, the Parties shall consult promptly in good faith to make                necessary revisions and adjustments to the Contract in order to maintain                such expected economic benefits to each of the Parties, provided,                however,                that the expected economic benefits to the Parties shall not be reduced                as                a result of the operation of this                Article. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE_18**

**DOMESTIC      SUPPLY, SALE, DISPOSAL AND **

**EXPORT      OF CRUDE OIL AND CONDENSATE**

| 18.1 | Until                such time as the total availability to the Government of Crude Oil                and                Condensate from all Petroleum production activities in India meets                the                total national demand, each Company comprising the Contractor, shall                be                required to sell in the domestic market in India all of the Company's                entitlement to Crude Oil and Condensate from the Contract Area in                order to                assist in satisfying the national                demand. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.2 | If,                during any Year, India attains Self-sufficiency, the Government shall                promptly thereafter, but in no event later than the end of the first                Quarter of the following Year, so advise the Company(ies) by written                notice. In such event, as from the end of the second Quarter of the                following Year, or such earlier date as the Parties may mutually                agree,                domestic sale obligation shall be suspended and the Company shall                have the                right to lift and export its Participating Interest share of Crude                Oil and                Condensate until such time, if any, as Self-sufficiency shall have                ceased                to exist. If Self-sufficiency ceases to exist during a Year, the                Government shall recover its position to ask Company(ies) under Article                18.1 in respect of the following Year by giving ninety (90) days                notice                thereof to the Company(ies) to sell Crude Oil and Condensate in the                Indian                domestic market. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.3 | Upon                India achieving Self-sufficiency, the Company(ies) shall be entitled                to                freely lift and export any Crude Oil and Condensate pursuant to this                Article 18, subject to Government's generally applicable destination                restrictions to countries with which the Government, for policy reasons,                has severed or restricted trade. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.4 | No                later than sixty (60) days prior to the commencement of production                in a                Field, and thereafter no less than sixty (60) days before the commencement                of each Year, the Contractor shall cause to be prepared and submitted                to                the Parties a production forecast setting out the total quantity                of Crude                Oil that it estimates can be produced from a Field during the succeeding                Year, based on a maximum efficient rate of recovery of Crude Oil                from that                Field in accordance with modern oilfield and petroleum industry practices.                No later than thirty (30) days prior to the commencement of each                Quarter,                the Contractor shall inform its estimate of production for the succeeding                Quarter and shall endeavour to produce the forecast quantity for                each                Quarter. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.5 | Each                Company comprising the Contractor shall, throughout the term of this                Contract, have the right to separately take in kind and dispose of                all its                share of Cost Petroleum and Profit Petroleum and shall have the obligation                to lift the said |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 18.6 | The                Government shall, throughout the term of this Contract, have the                right to                separately take in kind and dispose of its share of Crude Oil and                shall                have the obligation to lift the said Oil on a current basis and in                such                quantities so as not to cause a restriction of production or inconvenience                to the Contractor. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.7 | For                the purpose of implementing the provisions of this Article, a Crude                lifting procedure and Crude sales agreement based on generally acceptable                international terms shall be agreed upon by the Contractor with buyer(s)                no later than six (6) months or such shorter period as may be mutually                agreed between the Contractor and buyer(s) with the consent of Government                prior to the commencement of production in a Field. Such lifting                procedure                shall be made available to all the Parties to this                Contract. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      19**

**VALUATION      OF PETROLEUM**

| 19.1 | For                the purpose of this Contract, the value of Crude Oil, Condensate                and                Natural Gas (refer Article 21) shall be based on the price determined                as                provided herein. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.2 | A                price for Crude Oil shall be determined for each Month or such other                period as the Parties may agree (hereinafter referred to as "the                Delivery                Period") in terms of United States Dollars per Barrel, on import                parity                basis (with marine freight being determined on the basis of nearest                port                to the Contract Area) for Crude Oil produced and sold or otherwise                disposed of from Contract Area, for each Delivery Period, in accordance                with the appropriate basis for that type of sale or disposal specified                below. Subject to the provisions of this Article 19, it is clearly                understood that the actual prices received by the Company(ies) from                the                sales will form the basis for the purposes of cost recovery, Profit                Petroleum sharing and payment of royalty as provided in the Articles                15,                16 and 17 respectively. The basis of valuation given in this Article                for                the purpose of Article 15,16 and 17 shall apply only where Government                is                of the view that sale prices realised by the Company(ies) are not                consistent with the price realisable at Arms Length                Sales. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.3 | In                the event that some or all of a Company's or Contractor’s total sales of                Crude Oil during a Delivery Period are made to third parties at Arms                Length Sales, all sales so made shall be valued at the weighted average                of                the prices actually received by a Company, calculated by dividing                the                total receipts from all such sales at the Delivery Point by the total                number of Barrels of the Crude Oil sold in such sales. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.3.1 | Each                Company constituting the Contractor shall separately submit to the                designated nominee of the Government, within fifteen (15) days of                the end                of each Delivery Period, a report containing the actual prices obtained                in                their respective Arms Length Sales for any Crude Oil. Such reports                shall                distinguish between term sales and spot sales and itemize volumes,                customers, prices received and credit terms, and a Company shall                allow the                designated nominee(s) of the Government to examine the relevant sales                contracts. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.4 | For                the purpose of determining price at Arms Length Sales, the price                of the                Crude Oil at which sale takes place will generally be based on per                Barrel                of one or more crude oils which, at the time of calculation, are                being                freely and actively traded in the international market and are similar                in                characteristics and quality to the Crude Oil in respect of which                the price                is being determined, selling price to be ascertained from Platt's                Crude                Oil Market Wire daily publication ("Platt's"), or the spot market                for the                same crude oils ascertained in the same manner,                whichever |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 19.4.1 | In                the event that, at the relevant time, no crude oils of similar quality                to                the Crude Oil to be sold are being actively traded in the international                markets where prices can be ascertained by international publication,                or                the official FOB selling prices and the international spot market                price                vary widely between producers, the Parties shall meet in good faith                to                determine an appropriate pricing basis. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.5 | The                Contractor shall determine the relevant prices in accordance with                this                Article and the calculation, basis of calculation and the price determined                shall be supplied to the Government and shall be subject to agreement                by                the Government. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.6 | In                the event that the Parties fail to reach agreement on any matter                concerning selection of the crude oils for comparison, the calculation,                the basis of, or mechanism for the calculation of the prices, the                prices                arrived at, the adjustment of any price or generally about the manner                in                which the prices are determined according to the provisions of this                Article within thirty (30) days, or such longer period as may be                mutually                agreed between the Parties, from the date of commencement of Commercial                Production or the end of each Delivery Period thereafter, any Party                may                refer the matter or matters in issue for final determination by a                sole                expert or arbitrator appointed as provided in Article                33. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.6.3 | Any                price or pricing mechanism agreed by the Parties pursuant to the                provisions of this Article shall not be changed                retroactively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 19.7 | In                the event that all sales of Crude Oil in a Delivery Period by a Company                constituting the Contractor are to be made to an Affiliate, the Parties                may agree on an alternative method of valuing the Crude Oil for the                purposes of this Contract, provided that such alternative method                results                in an internationally competitive fair market valuation for that                Delivery                Period. In case of disagreement, the decision of the Government on                determining a Crude price in case of sales to an Affiliate shall                be final                and binding. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.8 | In                the event that in any Delivery Period there is more than one type                of sales                referred to in Articles 19.3 and 19.7, then, for the purpose of                calculating Cost Petroleum and Profit Petroleum entitlement and royalty                payments pursuant to Articles 15, 16 and 17 respectively, a single                price                per Barrel of Crude Oil for all the sales for the relevant Delivery                Period                shall be used. Such single price shall be the weighted average of                the                prices determined for each type of sale, weighted by the respective                volumes of Crude Oil sold in each type of sale in the relevant Delivery                Period. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.9 | The                provisions specified above for the determination of the price of                sales of                Crude Oil shall apply mutatis mutandis to                Condensates. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.10 | The                price of Natural Gas shall be determined as provided in Article 21. |
|-------|----------------------------------------------------------------------------------------|

----

**ARTICLE      20**

**CURRENCY      AND EXCHANGE CONTROL PROVISIONS**

| 20.1 | Subject                to the provisions herein, and to compliance with the relevant provisions                of the laws of general application in India governing currency and                foreign                exchange and related administrative instructions and procedures issued                thereunder on a non-discriminatory basis, each Foreign Company comprising                the Contractor shall, during the term of this Contract, have the                right                to: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.2 | The                rates of exchange for the purchase and sale of currency by the Companies                shall be the prevailing rates of general application determined by                the                Reserve Bank of India or such other financial body as may be mutually                agreed by the Parties and, for accounting purposes under this Contract,                these rates shall apply as provided in Section 1.6 of                Appendix-C. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.3. | A                Party other than a Foreign Company comprising the Contractor shall                be                governed by the relevant currency and foreign exchange laws and related                administrative instructions and procedures issued                thereunder. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.4 | Indian                Companies shall have right to remit their portion of expenditure                in                foreign currency(ies) in accordance with the exchange control                provisions. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      21**

**NATURAL      GAS**

| 21.1 | Subject                to Article 21.2, the Indian domestic market shall have the first                call on                the utilisation of Natural Gas discovered and produced from the Contract                Area. Accordingly, any proposal by the Contractor relating to Discovery                and production of Natural Gas from the Contract Area shall be made                in the                context of the Government's policy for the utilisation of Natural                Gas and                shall take into account the objectives of the Government to develop                its                resources in the most efficient manner and to promote conservation                measures. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.2 | The                Contractor shall have the right to use Natural Gas produced from                the                Contract Area for the purpose of Petroleum Operations including                reinjection for pressure maintenance in Oil Fields, gas lifting and                captive power generation required for Petroleum                Operations. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.3 | For                the purpose of sales in the domestic market pursuant to this Article                21,                the Contractor shall have freedom to market the Gas and sell its                entitlement. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.4 | Associated                Natural Gas (ANG) |
|------|---------------------------------------------|

| 21.4.1 | In                the event that a Discovery of Crude Oil contains ANG, the Contractor                shall                declare in the proposal for the declaration of the said Discovery                as a                Commercial Discovery as specified in Article 10, whether (and by                what                amount) the estimated production of ANG is anticipated to exceed                the                quantities of ANG which will be used in accordance with Article 21.2                (such                excess being hereinafter referred to as "the Excess ANG"). In such                an                event the Contractor shall indicate whether, on the basis of the                available                data and information, it has reasonable grounds for believing that                the                Excess ANG could be commercially exploited in accordance with the                terms of                this Contract along with the Commercial Production of the Crude Oil                from                the Contract Area, and whether the Contractor intends to so exploit                the                Excess ANG. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.4.2 | Based                on the principle of full utilisation and minimum flaring of ANG,                a                proposed development plan for an Oil Discovery shall, to the extent                practicable, include a plan for utilisation of the ANG including                estimated                quantities to be flared, reinjected, and to be used for Petroleum                Operations; and, if the Contractor proposes to commercially exploit                the                Excess ANG for sale in the domestic market in accordance with Government's                policy, or elsewhere, the proposed plans for such                exploitation. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 21.4.3 | If                the Contractor wishes to exploit the Excess ANG, subject to Article                21.1,                the Contractor shall be free to explore markets for the commercial                exploitation of the said Excess ANG and submit its proposals for                such                exploitation to the Government in accordance with Article                21.4.2. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.4.4 | Where                the Contractor is of the view that the Excess ANG cannot be commercially                exploited and chooses not to exploit the said Excess ANG, or is unable                to                find a market for the Excess ANG pursuant to Article 21.4.3, the                Government shall be entitled to take and utilise such Excess ANG                free of                any cost/charge. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.4.5 | If                the Government elects to take the Excess ANG as provided in Article                21.4.4: |
|--------|--------------------------------------------------------------------------------------------------------------|

|   | (a) | the                Contractor shall deliver such Excess ANG to the Government (or its                nominee) free of any cost/charge, at the downstream flange of the                Gas/Oil                separation facilities; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the                Contractor shall, based on sound petroleum engineering practices,                install                such facilities as would facilitate, insofar as practicable, uninterrupted                delivery of such Excess ANG to the Government or its                nominee; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the                cost of all facilities installed pursuant to paragraph (b) above                shall be                borne by the Government (or its                nominee); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the                Government or its nominee shall bear all costs including gathering,                treating, processing and transporting costs beyond the downstream                flange                of the Gas/Oil separation facilities;                and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | the                delivery of such Excess ANG shall be subject to procedures to be                agreed                between the Government or its nominee and the Contractor prior to                such                delivery, such procedures to include matters relating to timing of                off-take of such Excess ANG. Parties shall endeavour that such procedures                do not restrict Oil production. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.4.6 | The                Excess ANG which is not commercially exploited by the Contractor,                or taken                by the Government or its nominee pursuant to this Article 21, shall                be                returned to the subsurface structure or flared or otherwise disposed                off                as approved by the Government in the context of the Development Plan,                provided that flaring will be resorted to only for small quantities                and as                a last resort. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.4.7 | As                soon as practicable after the submission of the proposed development                plan,                the Contractor and the Government or its nominee shall meet to discuss                the                sale and/or disposal of any ANG discovered with a view to giving                effect to                the provisions of this Article 21 in a timely                manner. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.5 | Non                Associated Natural Gas (NANG) |
|------|--------------------------------------------------|

| 21.5.1 | In                the event of a Discovery of NANG in the Contract Area, the Contractor                shall promptly report such Discovery to the Management Committee                and                the |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 21.5.2 | If,                pursuant to Article 10.1, the Contractor gives notification that                the                Discovery is of potential commercial interest, the Contractor shall                submit                to the Management Committee, within one (1) year from the date of                notification of the above said Discovery, the proposed Appraisal                Programme, including a Work Programme and Budget to carry out an                adequate                and effective appraisal of such Discovery, to determine (i) without                delay,                whether such Discovery is a Commercial Discovery and (ii) with reasonable                precision, the boundaries of the area to be delineated as the Development                Area. Such proposed Appraisal Programme shall be supported by all                relevant                data such as Well data, Contractor's best estimate of reserve range                and                production potential, and shall indicate the date of commencement                of the                proposed Appraisal Programme. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.5.3 | The                proposed Appraisal Programme together with the Work Programme and Budget                referred to in Article 21.5.2 shall be reviewed by the Management                Committee within sixty (60) days of its submission by the Contractor.                The                Management Committee shall offer its comments within the said period.                The                said Appraisal Programme together with the Work Programme and Budget                submitted by the Contractor as revised or modified or amended in                light of                the Management Committee review and advice, shall be adopted as the                Appraisal Programme and the Contractor shall promptly proceed with                implementation of the said                Programme. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 21.5.6 | If                the Contractor declares the Discovery a Commercial Discovery after                taking                into account the advice of the Management Committee as referred to                in the                Article 21.5.5, the Contractor shall, within one (1) year of the                declaration of the Discovery as a Commercial Discovery, submit a                development plan for the development of the Discovery to the Management                Committee for approval. Such plan shall be supported by all relevant                information including, inter alia, the information required in Article                10.7. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 21.5.9 | If                the Government has failed to approve or disapproves the Contractor’s                proposed development plan, within one hundred and fifteen (115) days                from                receipt or within fifty five (55) days from the receipt of clarifications/                information from the Contractor as mentioned in the Article 21.5.8,                the                Government shall advise the Contractor, in writing, of the reasons                for                such failure or disapproval and the Government and the Contractor                shall                meet to discuss the said development plan and the reasons for the                said                failure to approve or disapproval, and use their best efforts to                agree on                appropriate modifications thereto to meet the Government’s concerns or                objections. Thereafter, the Contractor shall have the right to resubmit,                within eighty five (85) days of communication from the Government,                the                proposed development plan duly amended to meet the Government’s concerns.                Such right of resubmission of the proposed development plan shall                be                exercisable by the Contractor only once. The Government will respond                to                the re-submitted plan within one hundred and fifteen (115)                days.** **If                no such plan is submitted to the Government within the above specified                period, the Contractor shall relinquish its right to develop such                Gas                Discovery and such Discovery shall be excluded from the Contract                Area. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.6 | Valuation                of Natural Gas |
|------|-----------------------------------------|

| 21.6.1 | The                Contractor shall endeavour to sell all Natural Gas produced and saved                from                the Contract Area at arms-length prices to the benefits of Parties                to the                Contract. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.6.2 | Notwithstanding                the provision of Article 21.6.1, Natural Gas produced from the Contract                Area shall be valued for the purposes of this Contract as follows                : |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | Gas                which is used as per Article 21.2 or flared with the approval of                the                Government or re-injected or sold to the Government pursuant to Article                21.4.5 shall be ascribed a zero                value; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Gas                which is sold to the Government or any other Government nominee shall                be                valued on the terms and conditions actually obtained including pricing                formula and delivery; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | (Explanation                : However, it is clarified that this provision would apply only when                the                sale is made to the Government or Government nominee under the provisions                of the Contract) |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Gas                which is sold or disposed of otherwise than in accordance with paragraph                (a) or (b) shall be valued on the basis of competitive arms length                sales                in the region for similar sales under similar                conditions. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.7 | The                formula or basis on which the prices shall be determined pursuant                to                Article 21.6** **shall                be approved by the Government prior to the sale of Natural Gas to                the                consumers/buyers,** **within                sixty (60) Business Days from the receipt of proposal or from the                date of                receipt of clarification/additional information, where asked for                by the                Government. For granting this approval, Government shall take into                account                the prevailing policy, if any, on pricing of Natural Gas including                any                linkages with traded liquid fuels, and it may delegate or assign                this                function to a regulatory authority as and when such an authority                is in                existence and in place. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      22**

**EMPLOYMENT,      TRAINING AND TRANSFER OF TECHNOLOGY**

| 22.1 | Without                prejudice to the right of the Contractor to select and employ such                number                of personnel as, in the opinion of the Contractor, are required for                carrying out Petroleum Operations in a safe, cost effective and efficient                manner, the Contractor shall, to the maximum extent possible, employ,                and                require the Operator and Subcontractors to employ, citizens of India                having appropriate qualifications and experience, taking into account                experience required in the level and nature of the Petroleum                Operations. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.2 | The                Operator shall offer a mutually agreed number of Indian nationals                the                opportunity for on-the-job training and practical experience in Petroleum                Operations during the Exploration Period. Not later than six (6)                months                after approval of the Development Plan, the Operator shall, in                consultation with the Government, establish and implement training                programmes for staff positions in each phase and level of Petroleum                Operations including skilled, technical, executive and management                positions, with a view to ensuring employment of nationals of India                and                gradual and progressive reduction of foreign                personnel. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.3 | At                the request of the Government, the Foreign Companies shall separately                endeavour to negotiate, in good faith, technical assistance agreements                with the Government or a company nominated by Government for this                purpose                setting forth the terms by which each Foreign Company constituting                the                Contractor may render technical assistance and make available commercially                proven technical information of a proprietary nature for use in India                by                the Government or the company nominated by Government. The issues                to be                addressed in negotiating such technical assistance agreements shall                include, but not be limited to, licensing issues, royalty conditions,                confidentiality restrictions, liabilities, costs and method of                payment. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      23**

**LOCAL      GOODS AND SERVICES**

| 23.1 | In                the conduct of Petroleum Operations, the Contractor                shall: |
|------|---------------------------------------------------------------------------------------------|

|   | (a) | give                preference to the purchase and use of goods manufactured, produced                or                supplied in India provided that such goods are available on terms                equal to                or better than imported goods with respect to timing of delivery,                quality                and quantity required, price and other                terms; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | employ                Indian Subcontractors having the required skills or expertise, to                the                maximum extent possible, insofar as their services are available                on                comparable standards with those obtained elsewhere and at competitive                prices and on competitive terms; provided that where no such                Subcontractors are available, preference shall be given to non-Indian                Subcontractors who utilise Indian goods to the maximum extent possible,                subject, however, to the proviso in paragraph (a) above;                and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | ensure                that provisions in terms of paragraphs (a) to (b) above are contained                in                contracts between the Operator and its                Subcontractors. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.2 | Subject                to Article 8.3(f), the Contractor shall establish appropriate procedures,                including tender procedures, for the acquisition of goods and services                which shall ensure that suppliers and Subcontractors in India are                given                adequate opportunity to compete for the supply of goods and services.                The                tender procedures shall include, inter alia, the financial amounts                or                value of contracts which will be awarded on the basis of selective                bidding                or open competitive bidding, the procedures for such bidding, and                the                exceptions to bidding in cases of emergency, and shall be subject                to the                approval of the Management                Committee. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.3 | Within                sixty (60) days after the end of each Year, the Contractor shall                provide                the Government with a report outlining its achievements in utilising                Indian resources during that Year in accordance with Section 10 of                Appendix C to this Contract. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.4 | In                this Article "goods" means equipment, materials and                supplies. |
|------|------------------------------------------------------------------------------------------------|

----

**ARTICLE      24**

**INSURANCE      AND INDEMNIFICATION**

| 24.1 | Insurance |
|------|-----------|

| 24.1.1 | The                Contractor shall, during the term of this Contract, maintain and                obtain                insurance coverage for and in relation to Petroleum Operations for                such                amounts and against such risks as are customarily or prudently insured                in                the international petroleum industry in accordance with modern oilfield                and petroleum industry practices, and shall furnish to the Government,                certificates evidencing that such coverage is in effect. Such insurance                policies shall include the Government as additional insured and shall                waive subrogation against the Government. The said insurance shall,                without prejudice to the generality of the foregoing,                cover: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | loss                or damage to all installations, equipment and other assets for so                long as                they are used in or in connection with Petroleum Operations; provided,                however, that if for any reason the Contractor fails to insure any                such                installation, equipment or assets, it shall replace any loss thereof                or                repair any damage caused thereto; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | loss,                damage or injury caused by pollution in the course of or as a result                of                Petroleum Operations; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | loss                of property or damage or bodily injury suffered by any third party                in the                course of or as a result of Petroleum Operations for which the Contractor                may be liable; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | any                claim for which the Government may be liable relating to the loss                of                property or damage or bodily injury suffered by any third party in                the                course of or as a result of Petroleum Operations for which the Contractor                is liable to indemnify the Government, or the State                Government; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | with                respect to Petroleum Operations offshore, the cost of removing wrecks                and                cleaning up operations following any accident in the course of or                as a                result of Petroleum Operations; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | the                Contractor's and/or the Operator's liability to its employees engaged                in                Petroleum Operations. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

** **

| 24.2 | Indemnity |
|------|-----------|

|   | Subject                to Article 4.7, the Contractor shall indemnify, defend and hold the                Government and the State Government harmless against all claims,                losses                and damages of any nature whatsoever, including, without limitation,                claims for loss or damage to property or injury or death to persons                caused                by or resulting from any Petroleum Operations conducted by or on                behalf of                the Contractor. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      25**

**RECORDS,      REPORTS, ACCOUNTS AND AUDIT**

| 25.1 | The                Contractor shall prepare and maintain in original at an office in                India                accurate and current books, records, reports and accounts of its                activities for and in connection with Petroleum Operations so as                to                present a fair, clear and accurate record of all its activities,                expenditures and receipts. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.2 | Based                on generally accepted and recognised accounting principles and modern                petroleum industry practices, record, books, accounts and accounting                procedures in respect of Petroleum Operations shall be maintained                on                behalf of the Contractor by the Operator, at its business office                in India,                in accordance with the Accounting Procedure to this                Contract. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.3 | The                Contractor shall submit to the Government regular Statements and                reports                relating to Petroleum Operations as provided in                Appendix-C. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.5 | The                Government shall have the right to audit the accounting records of                the                Contractor in respect of Petroleum Operations as provided in the                Accounting Procedure. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.6 | The                accounting and auditing provisions and procedures specified in this                Contract are without prejudice to any other requirements imposed                by any                statute in India, including, without limitation, any specific requirements                of the statutes relating to taxation of                Companies. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.7 | For                the purpose of any audit referred to in Articles 25.5, the Contractor                shall make available in original to the auditor all such books, records,                accounts and other documents and information as may be reasonably                required                by the auditor during normal business hours. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      26**

**INFORMATION,      DATA, CONFIDENTIALITY,**

**INSPECTION      AND SECURITY**

| 26.1 | The                Contractor shall, promptly after they become available in India,                provide                the Government, free of cost, with all data obtained as a result                of                Petroleum Operations under the Contract including, but not limited                to,                geological, geophysical, geochemical, petrophysical, engineering,                Well                logs, maps, magnetic tapes, cores, cuttings and production data as                well as                all interpretative and derivative data, including reports, analyses,                interpretations and evaluation prepared in respect of Petroleum Operations                (hereinafter referred to as "Data"). Data shall be the property of                the                Government, provided, however, that the Contractor shall have the                right to                make use of such Data, free of cost, for the purpose of Petroleum                Operations under this Contract as provided                herein. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.2 | The                Contractor may, for use in Petroleum Operations, retain copies or                samples                of material or information constituting the Data and, with the approval                of                the Government, original material, except that where such material                is                capable of reproduction and copies have been supplied to the Government,                the Contractor may, subject to the right of inspection by the Government,                export, subject to any applicable regulations, samples or other original                Data for processing or laboratory examination or analysis, provided                that                representative samples equivalent in quality, size and quantity,                or, where                such material is capable of reproduction, copies of equivalent quality,                have first been delivered to the                Government. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.3 | The                Contractor shall keep the Government currently advised of all developments                taking place during the course of Petroleum Operations and shall                furnish                the Government with full and accurate information and progress reports                relating to Petroleum Operations (on a daily, Monthly, Yearly or                other                periodic basis) as Government may reasonably require, provided that                this                obligation shall not extend to proprietary technology. The Contractor                shall meet with the Government at a mutually convenient location                in India                to present the results of all geological and geophysical work carried                out                as well as the results of all engineering and drilling operations                as soon                as such Data becomes available to the                Contractor. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.4 | All                Data, information and reports obtained or prepared by, for or on                behalf                of, the Contractor pursuant to this Contract shall be treated as                confidential and, subject to the provisions herein below, the Parties                shall not disclose the contents thereof to any third party without                the                consent in writing of the other                Parties. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.5 | The                obligation specified in Article 26.4 shall not operate so as to prevent                disclosure: |
|------|-----------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | to                Affiliates, contractors, or Subcontractors for the purpose of Petroleum                Operations; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------|

|   | (b) | to                employees, professional consultants, advisers, data processing centres                and                laboratories, where required, for the performance of functions in                connection with Petroleum Operations for any Party comprising the                Contractor; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | to                banks or other financial institutions, in connection with Petroleum                Operations; |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

|   | (d) | to                bonafide intending assignees or transferees of a Participating Interest                of                a Party comprising the Contractor or in connection with a sale of                the                stock or shares of a Party comprising the                Contractor; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | to                the extent required by any applicable law or in connection with any                legal                proceedings or by the regulations of any stock exchange upon which                the                shares of a Party comprising the Contractor are                quoted; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | to                Government departments for, or in connection with, the preparation                by or                on behalf of the Government of statistical reports with respect to                Petroleum Operations, or in connection with the administration of                this                Contract or any relevant law or for any purpose connected with Petroleum                Operations; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | by                a Party with respect to any Data or information which, without disclosure                by such Party, is generally known to the                public. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.6 | Any                Data, information or reports disclosed by the Parties comprising                the                Contractor to any other person pursuant to Article 26.5 (a) to (d)                shall                be disclosed on the terms that such Data, information or reports                shall be                treated as confidential by the recipient. Prompt notice of disclosures                made by Companies pursuant to Article 26.5 shall be given to the                Government. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.7 | Any                Data, information and reports relating to the Contract Area which,                in the                opinion of the Government, might have significance in connection                with                offers by the Government of acreages, may be disclosed by the Government                for such purpose. Government may also disclose such Data or information                for any exploration programme to be conducted by a third party in                adjoining areas with the consent of the Contractor, for better                understanding of regional geological set-up and such consent by the                Contractor shall not be unreasonably withheld. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.8 | Where                an area ceases to be part of the Contract Area, the Contractor shall                hand                over all the originals and copies of the Data and information with                respect                to that part to the Government within a period of one (1) year from                the                date of relinquishment or surrender. The Contractor shall, however,                be                allowed to retain one copy of the Data in its possession for its                own use,                where required, and shall not use the Data for sale or any other                purposes.                Subject to the provisions of this Article, the Contractor shall keep                all                Data/information confidential. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | **Explanatory                Note:**Pursuant                to this Article 26, and not withstanding any provisions in the contract                to                the contrary, the Government shall have the right to disclose and                freely                use all data and information at it’s sole discretion except for date of                proprietary nature such as interpretation report to any party on                or after                three (3) Years from acquisition of such data in order to promote                exploration and production activities in the country. For any relinquished                areas, the government shall have the right to disclose and freely                use all                the data immediately after such                relinquishment. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.9 | The                Government shall, at all reasonable times, through duly authorised                representatives, be entitled to observe Petroleum Operations and                to                inspect all assets, books, records, reports, accounts, contracts,                samples                and Data kept by the Contractor or the Operator in respect of Petroleum                Operations in the Contract Area, provided, however, that the Contractor                shall not be required to disclose any proprietary technology. The                duly                authorised representatives shall be given reasonable assistance by                the                Contractor for such functions and the Contractor shall afford such                representatives reasonable use of all facilities and privileges afforded                to its own personnel in the field including the use of office space                and                housing for a period not exceeding 30 mandays in a Year and thereafter                at                the cost of Government. The said representatives shall be entitled                to make                a reasonable number of surveys, measurements, drawings, tests and                copies                of documents, take samples, and make reasonable use of the equipment                and                instruments of the Contractor provided that such functions shall                not                unduly interfere with the Contractor's Petroleum                Operations. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.10 | The                Contractor shall give reasonable advance notice to the Government,                or to                any other authority designated by the Government for such purpose,                of its                programme of conducting surveys by aircraft or by ships, indicating,                inter                alia, the name of the survey to be conducted, approximate extent                of the                area to be covered, the duration of the survey, the commencement                date, and                the name of the airport or port from which the survey aircraft or                ship                will commence its voyage. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.11 | The                Government, or the authority designated by the Government for such                purpose, shall have the right to inspect any aircraft or ship used                by the                Contractor or a Subcontractor carrying out any survey or other operations                in the Contract Area and shall have the right to put on board such                aircraft or ship, Government officers in such number as may reasonably                be                necessary to ensure compliance by the Contractor or the Subcontractor                with                the security requirements of India. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      27**

**TITLE      TO PETROLEUM, DATA AND ASSETS**

| 27.1 | The                Government is the sole owner of Petroleum underlying the Contract                Area and                shall remain the sole owner of Petroleum produced pursuant to the                provisions of this Contract except as regards that part of Crude                Oil,                Condensate or Gas the title whereof has passed to the Contractor                or any                other person in accordance with the provisions of this                Contract. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.2 | Title                to Petroleum to which the Contractor is entitled under this Contract,                and                title to Petroleum sold by the Companies shall pass to the relevant                buyer                party at the Delivery Point. The Contractor shall be responsible                for all                costs and risks prior to and including at the Delivery Point and                each                buyer party shall be responsible for all costs and risks associated                with                such buyer party's share after the Delivery                Point. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.3 | Title                to all Data specified in Article 26 shall be vested in the Government                and                the Contractor shall have the right to use thereof as therein                provided. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.4 | Assets                purchased by the Contractor for use in Petroleum Operations shall                be owned                by the Parties comprising the Contractor in proportion to their                Participating Interest provided that the Government shall have the                right                to require vesting of full title and ownership in it, free of charge                and                encumbrances, of any or all assets, whether fixed or movable, acquired                and                owned by the Contractor for use in Petroleum Operations inside or                outside                the Contract Area, such right to be exercisable at the Government’s option                upon expiry or earlier termination of the                Contract. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.5 | The                Contractor shall be responsible for proper maintenance, insurance                and                safety of all assets acquired for Petroleum Operations and for keeping                them in good repair, order and working condition at all times, and                the                costs thereof shall be recoverable as Contract Costs in accordance                with                Appendix-C. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.6 | So                long as this Contract remains in force, subject to Article 27.5,                the                Contractor shall, free of any charge for the purpose of carrying                out                Petroleum Operations hereunder, have the exclusive use of assets                which                have become the property of                Government. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.7 | Equipment                and assets no longer required for Petroleum Operations during the                term of                the Contract shall be sold, exchanged or otherwise disposed of by                the                Contractor, provided however that the proceeds of sale shall be credited                to Petroleum Operations as provided in Appendix C, provided that                prior                written consent of the Management Committee shall be obtained for                each                transaction in excess of US$ 50,000 (Fifty thousand United States                Dollars)                or such other value as may be agreed from time to time by the Management                Committee. The consent of the Management Committee shall not be                unreasonably withheld. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      28**

**ASSIGNMENT      OF PARTICIPATING INTEREST**

| 28.1 | Subject                to the terms of this Article and other terms of this Contract, any                Party                comprising the Contractor may assign, or transfer, a part or all                of its                Participating Interest, with the prior written consent of the Government,                which consent shall not be unreasonably withheld, provided that the                Government is satisfied that: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the                prospective assignee or transferee is of good standing, has the capacity                and ability to meet its obligations hereunder, and is willing to                provide                an unconditional undertaking to the Government to assume its Participating                Interest share of obligations and to provide guarantees in respect                thereof                as provided in the Contract; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the                prospective assignee or transferee is not a company incorporated                in a                country with which the Government, for policy reasons, has restricted                trade or business; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the                prospective assignor or transferor and assignee or transferee respectively                are willing to comply with any reasonable conditions of the Government                as                may be necessary in the circumstances with a view to ensuring performance                under the Contract; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the                assignment or transfer will not adversely affect the performance                or                obligations under this Contract or be contrary to the interests of                India. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.1.1 | Subject                to Article 28.7, nothing in this Article 28 shall prevent a Party                comprising the Contractor from assigning or transferring a part or                all of                its Participating Interest to an Affiliate, with the approval of                the                Management Committee, provided                that; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | the                assignee provides an irrevocable, unconditional bank guarantee from                a                reputed bank of good standing in India, acceptable to the Government,                in                favour of the Government, for the amount specified in Article 29.2,                in a                form provided at Appendix-G; |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | the                assignee provides a parent financial and performance guarantee issued                by                the guarantor which furnished the guarantee pursuant to Article 29                in                respect of the assignor Party’s obligations under this Contract in favour                of the Government, of the performance of such Affiliate assignee                of its                obligations under this Contract; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | the                prospective Affiliate is not a company incorporated in a country                with                which the Government, for policy reason, has restricted trade or                business;                and |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | the                assignment will not adversely affect the performance or obligations                under                this Contract or be contrary to the interest of                India. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 28.2 | In                case of any change in the status of a Company or its shareholding                resulting in a change in: |
|------|------------------------------------------------------------------------------------------------------------------------------|

|   | a) | the                control of the Company; or |
|--------|----|-----------------------------------------------|

|   | b) | its                relationship with the company(ies) providing the guarantee under                Article                29.1 (a) and 29.1 (b); |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.3 | An                application for consent to assign or transfer shall be accompanied                by all                relevant information concerning the proposed assignment or transfer                including detailed information on the proposed assignee or transferee                and                its shareholding and corporate structure, as was earlier required                from the                Companies constituting the Contractor, the terms of the proposed                assignment or transfer and the unconditional undertaking referred                to in                Article. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.4 | The                applicant shall also submit such information relating to the prospective                assignee or transferee of the assignment or transfer as the Government                may                reasonably require to enable proper consideration and disposal of                the                application. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.5 | No                assignment or transfer shall be effective until the approval of the                Government is received or deemed to have been received. Approval                may be                given by the Government on such terms and conditions as it may deem                fit.                Provided that such terms and conditions may not increase the obligations                of the Parties comprising the Contractor. Upon assignment or transfer                of                its interest in this Contract, the assignor or transferor shall be                released and discharged from its obligations hereunder only to the                extent                that such obligations are assumed by the assignee or transferee with                the                approval of the Government. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.6 | In                the event that the Government does not give its consent or does not                respond to a request for assignment or transfer by a Party comprising                the                Contractor within one hundred and twenty (120) days of such request                and                receipt of all information referred to in Article 28.3 above, consent                shall be deemed to have been given by the                Government. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.7 | An                assignment or transfer shall not be made where the Participating                Interest                to be retained by the proposed assignor or the percentage interest                of                assignee shall be less than ten per cent (10%) of the total Participating                Interest of all the constituents of the Contractor, except where                the                Government, on the recommendations of the Management Committee may,                in                special circumstances, so permit. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | i) | such                Party shall remain solely liable for all its obligations relating                to its                Participating Interest to the exclusion of the other participants                thereto; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii) | the                encumbrance shall be expressly subordinated to the rights of the                other                Parties under this Contract. The obligations occurring from the said                encumbrance shall be the sole responsibility of the original Party                and                shall in no manner compromise the rights of other Parties to the                Contract; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii) | such                Party has given reasonable notice of such encumbrance and furnishes                to all                other Parties (including, for the avoidance of doubt, the Government)                a                certified copy of the executed instrument(s) evidencing the encumbrances; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iv) | keeping                in view the national interest of India, prior consent of the Government                shall be required (which consent shall not be unreasonably withheld)                of                the list of potential lenders with whom such Party can consider                hypothecation; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | v) | the                Party creating the charge shall ensure that such charge shall not                in any                way affect the interest of other Parties or result in interference                with                joint operations. In the event of any claims or liabilities imposed                on                other Parties because of the creation of such charges, the Party                having                created charge on its Participating Interest shall indemnify the                other                Parties; and |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | vi) | in                case of foreclosure or default by a borrowing Party, the mortgagee                shall                not be deemed to have acquired a right to carry on either by itself                or                through an agent, the Petroleum Operation, without the written consent                of                the Government of India. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.8.1 | The                Parties acknowledge that to obtain financing a Party (“Borrower”) will be                required to secure for a permitted chargee the right to receive a                copy of                any notice served on the Borrower and the Parties agree that they                shall                serve a copy of any such notice on any such permitted chargee in                accordance with the provisions of Article 37 at the same time as                such                notice is served on the Borrower. For the purposes of Article 37                the                address for service of notices of the permitted chargee shall be                that                specified in the instrument or instruments referred to in Article                28.8(iii). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.8.2 | In                case lender elects to participate directly or through a company other                than                the Borrower under the financing arrangement referred to above, the                same                shall be subject to the rights of Government as contained in Article                28.1                of Contract and the pre-emptive rights of the Parties as may be contained                in Operating Agreement. Any Party which wishes to exercise the said                pre-emptive rights will explicitly assume the obligation on the same                terms                and conditions as the Borrower. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      29**

**GUARANTEES**

| 29.1 | Ease                of the Companies constituting the Contractor shall procure and deliver                to                the Government within thirty (30) days from** **the** **Effective                Date of this Contract: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | an                irrevocable, unconditional bank guarantee from a reputed bank of                good                standing in India, acceptable to the Government, in favour of the                Government, for the amount specified in Article 29.2, in a form provided                at Appendix-G; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | financial                and performance guarantee in favour of the Government from a parent                company acceptable to the Government, in the form and substance set                out in                Appendix-E1, or, where there is no such parent company, the financial                and                performance guarantee from the Company itself in the form and substance                setout in Appendix-E2; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | a                legal opinion from its legal advisors, in a form satisfactory to                the                Government, to the effect that the aforesaid guarantees have been                duly                signed and delivered on behalf of the guarantors with due authority                and is                legally valid and enforceable and binding upon                them; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.3 | The                guarantee referred to in Article 29.2 shall provide                that; |
|------|---------------------------------------------------------------------------------------------|

----

|   | (a) | at                the end of each Year it shall be automatically renewed for an amount                equal                to a Company’s Participating Interest share of thirty five percent (35%)                of the total estimated expenditure in respect of the Minimum Work                Programme to be undertaken for the following Year of an Exploration                Phase,                unless the Contractor has terminated the Contract in accordance with                the                terms thereof. The guarantee shall be renewed at the end of each                Year                positively thirty (30) days before the expiry of the guarantee                period. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | after                the completion and due performance of the Minimum Work Programme                of a                particular Exploration Phase, the guarantee will be released in favour                of                the Company on presentation to the bank of a certificate from the                Government that the obligation of the Contractor has been fulfilled                and                the guarantee may be released, subject to Article 29.4. Such certificate                shall be provided within thirty (30) days from the completion of                the                Minimum Work Programme and fulfillment of obligations under the Contract                to the satisfaction of the                Government. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.4 | If                the Contractor elects to proceed to the second and third Exploration                Phase                respectively of the Exploration Period, a bank guarantee for the                Phase in                terms of Articles 29.1 (a), 29.2 and 29.3 shall be delivered to the                Government with the notice of such election and if such guarantee                is not                so delivered, the provisions of Article 29.5 shall                apply. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.5 | If                any of the documents referred to in Article 29.1 is not delivered                within                the period specified herein, this Contract may be terminated by the                Government upon ninety (90) days written notice of its intention                to do                so. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.6 | Subject                to Article 29.7, notwithstanding any change in the composition or                shareholding of the parent company furnishing a performance guarantee                as                provided herein, it shall, not under any circumstances, be absolved                of its                obligations contained in the guarantees provided pursuant to Article                29.1(b). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 29.7 | If                : |
|------|---------------------|

|   | (a) | a                Party (“Assignor”) assigns all or a part of its Participating Interest to                a third party (“Assignee”) in accordance with Article 28; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the                Assignee provides an irrevocable, unconditional bank guarantee from                a                reputed bank of good standing in India, acceptable to the Government,                in                favour of the Government, for an amount equal to the assignee’s                Participating Interest share of the estimated expenditure of the                Minimum                Work Programme of the Exploration Phase current at the Effective                Date of                the assignment; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the                Assignee provides performance guarantee and legal opinion in terms                of this                Article; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the                addendum to the Contract giving effect to the assignment of Participating                Interest is executed by all                Parties; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      30**

**TERM      AND TERMINATION OF THE CONTRACT**

| 30.1 | The                term of this Contract shall be for the period of the License and                any Lease                granted thereunder, unless the Contract is terminated earlier in                accordance with its terms, and shall be deemed to have been terminated,                if                for any reason, the Contractor ceases to hold such License or                Lease. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.2 | Subject                to the provision of Articles 5, 14 and 30.6 and without prejudice                to the                provisions of Article 30.7 or any other provisions of this Contract,                the                Contractor shall have the right to terminate this                Contract: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | with                respect to any part of the Contract Area other than a Development                Area                then producing, or that prior thereto had produced Petroleum, upon                giving                ninety (90) days written notice of its intention to do so;                and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | with                respect to any Development Area in which Petroleum is being produced,                or                that prior thereto had produced Petroleum, upon giving at least one                hundred and eighty (180) days written notice of its intention to                do                so. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.3 | This                Contract may, subject to the provisions herein below and Article                31, be                terminated by the Government upon giving ninety (90) days written                notice                with reasons to the other Parties of its intention to do so in the                following circumstances, namely, that the Contractor or a Party comprising                the Contractor (“the Defaulting                Party”) |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | has                knowingly submitted any false statement to the Government in any                manner                which was a material consideration in the execution of this Contract;                or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | has                intentionally and knowingly extracted or authorised the extraction                of                hydrocarbon not authorized to be extracted by the Contract or without                the                authority of the Government except such extractions as may be unavoidable                as a result of operations conducted hereunder in accordance with                generally                accepted modern oilfield and petroleum industry practices which,                when so                extracted, were immediately notified to the Government                or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | is                adjudged bankrupt by a competent court or enters into or scheme of                composition with its creditors or takes advantage of any law for                the                benefit of debtors; or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | has                passed a resolution to apply to a competent court for liquidation                of the                Company unless the liquidation is for the purpose of amalgamation                or                reconstruction of which the Government has been given notice and                the |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (e) | has                assigned any interest in the Contract without the prior consent of                the                Government as provided in Article 28;                or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | has                failed to make any monetary payment required by law or under this                Contract                by the due date or within such further period after the due date                as may                thereafter be specified by the Government; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | has                failed to comply with or has contravened the provisions of this Contract                in a material particular; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | has                failed to comply with any final determination or award made by a                sole                expert or arbitrators subject to Article 33; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | has                failed to carry out or observe any of the terms and conditions of                the                License or Lease or the provisions of the Acts or Rules in force                thereunder, subject however, to Article                31. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | on                notice of termination as provided in Article                29.5. |
|--------|-----|-------------------------------------------------------------------------------------|

|   | PROVIDED                THAT |
|--------|------------------------------|

|   | where                the Contractor comprises two or more Parties, the Government shall                not                exercise its rights of termination pursuant to Article 30.3, on the                occurrence, in relation to one or more, but not all, of the Parties                comprising the Contractor, of an event entitling the Government to                terminate the Contract, |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | if                any other Party or Parties constituting the Contractor (the non-Defaulting                Party or Parties) satisfies the Government that it, or they, is/are                willing and would be able to carry out the obligations of the                Contractor. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | where                the non Defaulting Party or Parties with the consent of the Government                has/have acquired the Participating Interest of the Defaulting Party                pursuant to the provisions of the Operating Agreement and has/have                procured and delivered to the Government a guarantee or guarantees                as                referred to in Article 29.1 in respect of the Participating Interest                of                the Defaulting Party acquired by the non Defaulting Party or                Parties. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.4 | This                Contract may also be terminated by the Government on giving the requisite                notice specified above if the events specified in Article 30.3 (c)                and (d)                occur with respect to a company which has given a performance guarantee                pursuant to Article 29 subject however to Article                30.5. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.5 | If                the circumstance or circumstances that give rise to the right of                termination under Article 30.3(f) or (g) or (i) or Article 30.4 are                remedied (whether by the Defaulting Company or by another Party or                Parties                in its behalf) within the ninety (90) day period, or such extended                period                as may be granted by the Government, |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 30.6 | On                termination of this Contract, for any reason whatsoever, the rights                and                obligations of the Contractor shall cease but such termination shall                not                affect any rights of any Party which may have accrued or any obligations                undertaken or incurred including obligations under Article 5.7, by                the                Contractor or any Party comprising the Contractor and not discharged                prior                to the date of termination. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.7 | In                the event of termination pursuant to Articles 30.2, 30.3 or                30.4: |
|------|----------------------------------------------------------------------------------------------------|

|   | (a) | the                Government may require the Contractor, for a period not exceeding                one                eighty (180) days from the date of termination, to continue, for                the                account and at the cost of the Government, Crude Oil or Natural Gas                production activities until the right to continue such production                has been                transferred to another entity; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | a                Foreign Company, which is a constituent of the Contractor, shall                have to                remove and export all its property subject to Article 27 and the                provisions hereof provided that in the event that ownership of any                property is in doubt, or disputed, such property shall not be exported                unless and until the doubt or dispute has been settled in favour                of the                Foreign Company. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.8 | Within                ninety (90) days after the termination of this Contract, pursuant                to                Article 30.2, 30.3, or 30.4, or such longer period as the Government                may                agree, the Contractor shall comply with Article 14.9 and any reasonably                necessary action as directed by the Government to avoid Environmental                Damage or hazards to human life or to the property of                others. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      31**

**FORCE      MAJEURE**

| 31.1 | Any                non-performance or delay in performance by any Party hereto of any                of its                obligations under this Contract, or in fulfilling any condition of                any                License or Lease granted to such Party, or in meeting any requirement                of                the Act, the Rules or any License or Lease, shall, except for the                payment                of monies due under this Contract or under the Act and the Rules                or any                law, be excused if, and to the extent that, such non-performance                or delay                in performance under this Contract is caused by Force Majeure as                defined                in this Article. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2 | For                the purpose of this Contract, the term Force Majeure means any cause                or                event, other than the unavailability of funds, whether similar to                or                different from those enumerated herein, lying beyond the reasonable                control of, and unanticipated or unforeseeable by, and not brought                about                at the instance of, the Party claiming to be affected by such event,                or                which, if anticipated or foreseeable, could not be avoided or provided                for, and which has caused the non-performance or delay in performance.                Without limitation to the generality of the foregoing, the term Force                Majeure shall include natural phenomena or calamities, earthquakes,                typhoons, fires, wars declared or undeclared, hostilities, invasions,                blockades, riots, strikes, insurrection and civil disturbances but                shall                not include the unavailability of                funds. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.3 | Where                a Party is claiming suspension of its obligations on account of Force                Majeure, it shall promptly, but in no case later than seven (7) days                after                the occurrence of the event of Force Majeure, notify the Management                Committee in writing giving full particulars of the Force Majeure,                the                estimated duration thereof, the obligations affected and the reasons                for                its suspension. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.4 | A                Party claiming Force Majeure shall exercise reasonable diligence                to seek                to overcome the Force Majeure event and to mitigate the effects thereof                on                the performance of its obligations under this Contract. The Party                affected                shall promptly notify the Management Committee as soon as the Force                Majeure event has been removed and no longer prevents it from complying                with the obligations which have been suspended and shall thereafter                resume                compliance with such obligations as soon as                possible. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.5 | The                Party asserting the claim of Force Majeure shall have the burden                of                proving that the circumstances constitute valid grounds of Force                Majeure                under this Article and that such Party has exercised reasonable diligence                and efforts to remedy the cause of any alleged Force                Majeure. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 31.6 | Where                a Party is prevented from exercising any rights or performing any                obligations under this Contract due to Force Majeure, the time for                the                performance of the obligations affected thereby and for performance                of any                obligation or the exercise of any right dependent thereon, and the                term of                any Exploration Phase of the Exploration Period or this Contract,                may be                extended to the extent of Force Majeure period or by such period                as may be                agreed by the Management Committee. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.7 | Notwithstanding                anything contained herein above, if an event of Force Majeure occurs                and                is likely to continue for a period in excess of thirty (30) days,                the                Parties shall meet to discuss the consequences of the Force Majeure                and                the course of action to be taken to mitigate the effects thereof                or to be                adopted in the circumstances. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      32**

**APPLICABLE      LAW AND LANGUAGE OF THE CONTRACT**

| 32.1 | This                Contract shall be governed and interpreted in accordance with the                laws of                India. |
|------|------------------------------------------------------------------------------------------------------------------------------------|

| 32.2 | Nothing                in this Contract shall entitle the Contractor to exercise the rights,                privileges and powers conferred upon it by this Contract in a manner                which                will contravene the laws of India. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.3 | The                English language shall be the language of this Contract and shall                be used                in arbitral proceedings. All communications, hearing or visual materials                or documents relating to this Contract shall be written or prepared                in                English. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.4 | The                laws will also include amendments, revisions, modifications                etc. |
|------|----------------------------------------------------------------------------------------------------|

----

**ARTICLE      33**

**SOLE      EXPERT, CONCILIATION AND ARBITRATION**

| 33.1 | The                Parties shall use their best efforts to settle amicably all disputes,                differences or claims arising out of or in connection with any of                the                terms and conditions of this Contract or concerning the interpretation                or                performance thereof. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.2 | Matters                which, by the terms of this Contract, the Parties have agreed to                refer to                a sole expert and any other matter which the Parties may agree to                so                refer, may be referred to a sole expert who shall be an independent                and                impartial person of international standing with relevant qualifications                and experience, appointed by written agreement between the Parties                and who                shall not, by virtue of nationality, personal connection or commercial                interest, have a conflict between his/her own interest and his/her                duty as                a sole expert. In the event that the Parties fail or are unable to                agree                on a sole expert within thirty (30) days or such longer period as                may be                mutually agreed by Parties, the sole expert shall be appointed by                a body                or an institution or an agency or a person, mutually agreed by Parties.                In                case, there is no agreement on the body or an institution or an agency                or                a person for appointing sole expert or such institution or agency                or body                fails to appoint a sole expert within thirty (30) days or such longer                period as may be mutually agreed by Parties, the matter shall be                referred                to arbitration.** **Any                sole expert appointed shall be acting as an expert and not as an                arbitrator and the decision of the sole expert on matters referred                to                him/her shall be final and binding on the Parties and shall not be                subject                to arbitration. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.3 | Subject                to the provisions of this Contract, the Parties hereby agree that                any                controversy, difference, disagreement or claim for damages, compensation                or otherwise (hereinafter in this Clause referred to as a “dispute”)                arising between the Parties, which cannot be settled amicably within                ninety (90) days after the dispute arises, may (except for those                referred                to in Article 33.2, which may be referred to a sole expert) be submitted                to conciliation or an arbitral tribunal for final decision as hereinafter                provided. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.4 | The                arbitral tribunal shall consist of three arbitrators. Each Party                to the                dispute shall appoint one arbitrator and the Party or Parties shall                so                advise the other Parties. The two arbitrators appointed by the Parties                shall appoint the third arbitrator. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.5 | Any                Party may, after appointing an arbitrator, request the other Party(ies)                in                writing to appoint the second arbitrator. If such other Party fails                to                appoint an arbitrator within thirty (30) days of receipt of the written                request to do so, such arbitrator may, at the request of the first                Party,                be appointed in accordance with Arbitration and Conciliation Act,                1996.** ** |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 33.6 | If                the two arbitrators appointed by or on behalf of the Parties fail                to agree                on the appointment of the third arbitrator within thirty (30) days                of the                appointment of the second arbitrator and if the Parties do not otherwise                agree, at the request of either Party, the third arbitrator shall                be                appointed in accordance with Arbitration and Conciliation Act,                1996. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.7 | If                any of the arbitrators fails or is unable to act, his successor shall                be                appointed by the Party or person who originally appointed such in                the                manner set out in this Article as if he was the first                appointment. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.8 | The                decision of the arbitral tribunal shall be pronounced within four                (4)                months unless otherwise extended by the Parties, and, in case of                difference among the arbitrators the decision of the majority shall                be                final and binding on the Parties. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.9 | The                arbitration agreement contained in this Article 33 shall be governed                by                the Arbitration and Conciliation Act, 1996 (Arbitration Act). Arbitration                proceedings shall be conducted in accordance with the rules for                arbitration provided in Arbitration                Act. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.10 | The                right to arbitrate disputes under this Contract shall survive expiry                or                the termination of this Contract. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.11 | Prior                to submitting a dispute to arbitration, the Parties may by mutual                agreement submit the matter for conciliation in accordance with Part                III                of the Arbitration and Conciliation Act, 1996. No arbitration proceedings                shall be instituted while conciliation proceedings are pending provided                that a Party may initiate arbitration proceedings in the event that                dispute has not been resolved by conciliation within sixty (60) days                of                the date of agreement by the Parties to submit such dispute to                conciliation. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.12 | The                venue of the sole expert, conciliation or arbitration proceedings                pursuant                to this Article, unless the Parties agree otherwise, shall be New                Delhi,                India and shall be conducted in the English language. Insofar as                practicable, the Parties shall continue to implement the terms of                this                Contract notwithstanding the initiation of proceedings before a sole                expert, conciliator or arbitral tribunal and any pending claim or                dispute. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.13 | The                fees and expenses of a sole expert or conciliator appointed by the                Parties                shall be borne equally by the Parties. The cost and expenses of arbitrator                appointed by a Party in accordance with the provision of this Article                shall be borne by the respective Party and the cost and expenses                of third                arbitrator and other incidental expenditure in relation to arbitration                and                liability thereof shall be at the discretion of the                arbitrators. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.14 | Notwithstanding                anything contrary contained herein above, in the event of dispute                among                Government Company(ies) and with the Government, such disputes shall                be                settled in accordance with guidelines issued on the subject by Government                from time to time. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      34**

**CHANGE      OF STATUS OF COMPANIES**

| 34.1 | The                Parties comprising the Contractor shall notify the Government of                any                change in the management or control of a Company(ies) or the relationship                with any guarantor of the                Company(ies). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      35**

**ENTIRE      AGREEMENT, AMENDMENTS, WAIVER AND MISCELLANEOUS**

| 35.1 | This                Contract supersedes and replaces any previous agreement or understanding                between the Parties, whether oral or written, on the subject matter                hereof, prior to the execution date of this                Contract. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 35.2 | This                Contract shall not be amended, modified, varied or supplemented in                any                respect except by an instrument in writing signed by all the Parties,                which shall state the date upon which the amendment or modification                shall                become effective. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 35.3 | No                waiver by any Party of any one or more obligations or defaults by                any                other Party in the performance of this Contract shall operate or                be                construed as a waiver of any other obligations or defaults whether                of a                like or of a different character. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 35.4 | The                provisions of this Contract shall inure to the benefit of and be                binding                upon the Parties and their permitted assigns and successors in interest. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 35.5 | In                the event of any conflict between any provisions in the main body                of this                Contract and any provision in the Appendices, the provision in the                main                body shall prevail. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 35.6 | The                headings of this Contract are for convenience of reference only and                shall                not be taken into account in interpreting the terms of this                Contract. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 35.7 | Reference                to any law or regulation having the force of law includes a reference                to                that law or regulation as from time to time may be amended, extended                or                re-enacted. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 35.8 | A                reference in this Contract to the word “including” shall also mean                “including but not limited to”. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      36**

**CERTIFICATES**

| 36.1 | A                Company shall furnish, prior to execution of this Contract, a duly                authorised copy of a resolution properly and legally passed by the                Board                of Directors of the Company authorising its President or any                Vice-President or any other representative to execute this Contract                along                with a certificate duly signed by the Secretary or an Assistant Secretary                of the Company under its seal in this regard and to the effect that                the                Company has the power and authority to enter into this Contract and                to                perform its obligations thereunder and has taken all necessary action                to                authorise the execution, delivery and performance of the                Contract. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      37**

**NOTICES**

| 37.1 | All                notices, statements, and other communications to be given, submitted                or                made hereunder by any Party to another shall be sufficiently given                if                given in writing in English language and sent by registered post,                postage                paid, or by telegram, telex, facsimile, radio or cable, to the address                or                addresses of the other Party or Parties as                follows: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | If                to the Government: |
|--------|-----|--------------------------------------|

|   |   | Secretary                to the Government of India |
|--------|--------|-----------------------------------------------------|

|   |   | Ministry                of Petroleum and Natural Gas |
|--------|--------|------------------------------------------------------|

|   |   | Shastri                Bhavan |
|--------|--------|-------------------------------|

|   |   | Dr.                Rajendra Prasad Marg, |
|--------|--------|------------------------------------------|

|   |   | New                Delhi- 110001, INDIA |
|--------|--------|-----------------------------------------|

|   |   | Facsimile                No.: 91 11 3383585 |
|--------|--------|---------------------------------------------|

|   | (b) | Mr.                M.R. Pasrija |
|--------|-----|---------------------------------|

|   |   | Chairman                and Managing Director |
|--------|--------|-----------------------------------------------|

|   |   | Oil                India Ltd. |
|--------|--------|-------------------------------|

|   |   | 5,                Sikandra Road, |
|--------|--------|----------------------------------|

|   |   | New                Delhi - 110001 |
|--------|--------|-----------------------------------|

| (e)   | Mr.                Jean Paul Roy |
|-----------------|----------------------------------|

|   |   | c/o310,                605- 1st                Street SW |
|--------|--------|----------------------------------------------------------|

|   |   | Calgary,                Alberta, |
|--------|--------|----------------------------------|

|   |   | Canada                T2P 3S9 |
|--------|--------|-------------------------------|

| 37.2 | Notices                when given in terms of Article 37.1 shall be effective when delivered                if                offered at the address of the other Parties as under Article 37.1                during                business hours on working days and, if received outside business                hours, on                the next following working day. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 37.3 | Any                Party may, by reasonable notice as provided hereunder to the other                Parties, change its address and other particulars for notice                purpose. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Signed                for and on |
|--------|----------------------------------|

|   | behalf                of the |
|--------|------------------------------|

**APPENDIX      A**

**DESCRIPTION      OF THE CONTRACT AREA**

|   | The                area comprising approximately 549 Sq. Km., Onshore India identified                as                **Block                KG-ONN-2004/1**                herein and shown on the map attached as Appendix                B. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Coordinates**                                    |
|----------------------------------------------------|
| **Longitude**                                      | **Latitude** |
| **Pt.**                                            | **Deg.** | **Min.** | **Sec.** | **Deg.** | **Min.** | **Sec.** |
|                                               |   |   |   |   |   |   |
| A                                                  | 82 | 18 | 34.82 | 16 | 51 | 10.84 |
| B                                                  | 82 | 16 | 15.20 | 16 | 50 | 58.64 |
| C                                                  | 82 | 13 | 22.00 | 16 | 50 | 41.00 |
| D                                                  | 82 | 13 | 24.00 | 16 | 46 | 48.00 |
| E                                                  | 82 | 12 | 24.00 | 16 | 46 | 48.00 |
| F                                                  | 82 | 12 | 24.00 | 16 | 45 | 31.50 |
| G                                                  | 82 | 10 | 54.00 | 16 | 45 | 31.50 |
| H                                                  | 82 | 10 | 54.00 | 16 | 44 | 51.00 |
| I                                                  | 82 | 6 | 28.00 | 16 | 44 | 51.00 |
| J                                                  | 82 | 6 | 28.00 | 16 | 43 | 36.00 |
| K                                                  | 82 | 4 | 24.00 | 16 | 43 | 36.00 |
| L                                                  | 82 | 4 | 24.00 | 16 | 42 | 16.00 |
| M                                                  | 82 | 2 | 18.00 | 16 | 42 | 16.00 |
| N                                                  | 82 | 2 | 18.00 | 16 | 39 | 24.00 |
| O                                                  | 82 | 14 | 46.50 | 16 | 39 | 24.00 |
| P                                                  | 82 | 14 | 46.50 | 16 | 33 | 2.00 |
| Q                                                  | 82 | 16 | 50.3 | 16 | 33 | 16.45 |
| R                                                  | 82 | 21 | 54.13 | 16 | 48 | 29.19 |
| S                                                  | 82 | 21 | 30.34 | 16 | 48 | 54.76 |
| (Coastline                from point Q to point R) |   |   |   |
| (Coastline                from point S to point A) |   |   |   |

----

**Appendix B**

**Map of Contract Area**

----

**APPENDIX      C**

**ACCOUNTING      PROCEDURE TO **

**THE      CONTRACT**

**BETWEEN**

**THE      GOVERNMENT OF INDIA **

**AND      **

**OIL      INDIA LTD.**

**AND**

**GEOGLOBAL      RESOURCES (BARBADOS) INC.**

**WITH      RESPECT TO CONTRACT AREA**

**IDENTIFIED      AS**

**BLOCK      : KG-ONN-2004/1**

----

**TABLE      OF CONTENTS**

**Sections**
**Content**
** **
** **

**Section      1: **
**General      Provisions**

|   |   | 1.1                Purpose |
|--------|--------|----------------------------|

|   |   | 1.2                Definitions |
|--------|--------|--------------------------------|

|   |   | 1.3                Inconsistency |
|--------|--------|----------------------------------|

|   |   | 1.4                Documentation and Statements to be |
|--------|--------|-------------------------------------------------------|

|   |   | submitted                by the Contractor |
|--------|--------|--------------------------------------------|

|   |   | 1.5                Language and units of account |
|--------|--------|--------------------------------------------------|

|   |   | 1.6                Currency exchange rates |
|--------|--------|--------------------------------------------|

|   |   | 1.7                Payments |
|--------|--------|-----------------------------|

|   |   | 1.8                Arms length transactions |
|--------|--------|---------------------------------------------|

|   |   | 1.9                Audit and inspection rights of the |
|--------|--------|-------------------------------------------------------|

|   |   | Government |
|--------|--------|------------|

|   |   | 1.10                Revision of Accounting Procedure |
|--------|--------|------------------------------------------------------|

**Section      2:**
**Classification,      Definition and Allocation of Costs and Expenditures**

|   |   | 2.1                Segregation of Costs |
|--------|--------|-----------------------------------------|

|   |   | 2.2                Exploration Costs |
|--------|--------|--------------------------------------|

|   |   | 2.3                Development Costs |
|--------|--------|--------------------------------------|

|   |   | 2.4                Production Costs |
|--------|--------|-------------------------------------|

|   |   | 2.5                Service Costs |
|--------|--------|----------------------------------|

|   |   | 2.6                General and Administrative Costs |
|--------|--------|-----------------------------------------------------|

**Section      3:**
**Costs,      Expenses, Expenditures and Incidental Income of the      Contractor**

----

**Section      4: **
**Records      and Inventories of Assets**

**Section      5: **
**Production      Statement**

**Section      6: **
**Value      of Production and Pricing Statement**

**Section      7:**
**Statement      of Costs, Expenditures and Receipts**

**Section      8:**
**Cost      Recovery Statement**

**Section      9:**
**Profit      Sharing Statement**

**Section      10:**
**Local      Procurement Statement**

**Section      11:**
**End      of Year Statement**

**Section      12:**
**Budget      Statement**

----

**ACCOUNTING      PROCEDURE**

**SECTION      1**

**GENERAL      PROVISIONS**

| 1.1 | Purpose |
|-----|---------|

|   | Generally,                the purpose of this Accounting Procedure is to set out principles                and                procedures of accounting which will enable the Government of India                to                monitor effectively the Contractor's costs, expenditures, production                and                income so that the Government's entitlement to Profit Petroleum can                be                accurately determined pursuant to the terms of the Contract. More                specifically, the purpose of the Accounting Procedure is                to: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | classify                costs and expenditures and to define which costs and expenditures                shall be                allowable for cost recovery and profit sharing and participation                purposes; |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | specify                the manner in which the Contractor's accounts shall be prepared and                approved; and |
|--------|---|-------------------------------------------------------------------------------------------------------------------------|

|   | - | address                numerous other accounting related matters. |
|--------|---|-------------------------------------------------------------------|

|   | This                Accounting Procedure is intended to apply to the provisions of the                Contract and is without prejudice to the computation of income tax                under                applicable provisions of the Income-Tax Act, 1961, as                amended. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For                purposes of this Accounting Procedure, the terms used herein which                are                defined in the Contract shall have the same meaning when used in                this                Accounting Procedure. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.3 | Inconsistency |
|-----|---------------|

|   | In                the event of any inconsistency or conflict between the provisions                of this                Accounting Procedure and the other provisions of the Contract, the                other                provisions of the Contract shall                prevail. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4 | Documentation                and Statements to be submitted by the Contractor |
|-----|------------------------------------------------------------------------------------|

| 1.4.1 | Within                ninety (90) days of the Effective Date of the Contract, the Contractor                shall submit to and discuss with the Government a proposed outline                of                charts of accounts, operating records and reports, which outline                shall                reflect each of the categories and sub-categories of costs and income                specified in Sections 2 and 3 |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Within                ninety (90) days of receiving the above submission, the Government                shall                either provide written notification of its approval of the proposal                or                request, in writing, revisions to the                proposal. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Within                one hundred and eighty (180) days from the Effective Date of the                Contract,                the Contractor and the Government shall agree on the outline of charts                of                accounts, records and reports which shall also describe the basis                of the                accounting system and procedures to be developed and used under this                Contract. Following such agreement, the Contractor shall expeditiously                prepare and provide the Government with formal copies of the comprehensive                charts of accounts, records and reports and allow the Government                to                examine the manuals and to review procedures which are, and shall                be,                observed under the Contract. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4.2 | Notwithstanding                the generality of the foregoing, the Contractor shall make regular                Statements relating to the Petroleum Operations as                follows: |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Production                Statement (see Section 5 of this Accounting                Procedure). |
|--------|-----|--------------------------------------------------------------------------------------------------|

|   | (ii) | Value                of Production and Pricing Statement (see Section 6 of this Accounting                Procedure). |
|--------|------|-----------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Statement                of Costs, Expenditures and Receipts (see Section 7 of this Accounting                Procedure). |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | Cost                Recovery Statement (see Section 8 of this Accounting                Procedure). |
|--------|------|-----------------------------------------------------------------------------------------------------|

|   | (v) | Profit                Sharing Statement (see Section 9 of this Accounting                Procedure) |
|--------|-----|-----------------------------------------------------------------------------------------------------|

|   | (vi) | Local                Procurement Statement (see Section 10 of this Accounting                Procedure) |
|--------|------|---------------------------------------------------------------------------------------------------------|

|   | (vii) | End                of Year Statement (see Section 11 of this Accounting Procedure). |
|--------|-------|-------------------------------------------------------------------------------------|

|   | (viii) | Budget                Statement (see Section 12 of this Accounting                Procedure). |
|--------|--------|-----------------------------------------------------------------------------------------------|

| 1.4.3 | All                reports and Statements shall be prepared in accordance with the Contract                and the laws of India and, where there are no relevant provisions                in                either of these, in accordance with generally accepted practices                in the                international petroleum industry. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4.4 | Each                of the entities constituting the Contractor shall be responsible                for                maintaining its own accounting records in order to comply with all                legal                requirements and to support all returns or any other accounting reports                required by any Government authority in relation to the Petroleum                Operations. However, for the purposes of giving effect to this Accounting                Procedure, the Party constituting the Contractor who is the Operator                shall                be responsible for maintaining, at its business office in India,                on behalf                of the Contractor, all the |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.5 | Language                and Units of Account |
|-----|----------------------------------------------|

|   | All                accounts, records, books, reports and Statements shall be maintained                and                prepared in the English language using mercantile basis of accounting.                The                accounts shall be maintained in United States Dollars, which shall                be the                controlling currency of account for cost recovery, and profit sharing                purposes. Metric units and Barrels shall be employed for measurements                required under the Contract. Where necessary for clarification, the                Contractor may also maintain accounts and records in other languages,                currencies and units. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.6 | Currency                Exchange Rates |
|-----|----------------------------------------|

| 1.6.1 | For                conversion purposes between United States Dollars and Indian Rupees                or any                other currency, the monthly average of the daily mean of the buying                and                selling rates of exchange as quoted by the State Bank of India (or                any                other financial body as may be mutually agreed by the Parties) for                the                Month in which the revenues, costs, expenditures, receipts or income                are                recorded, shall be used. However, in the case of any single non-US                Dollar                transaction in excess of the equivalent of fifty thousand (50,000)                US                Dollars, the conversion into US Dollars shall be performed on the                basis of                the average of the applicable exchange rates for the day on which                the                transaction occurred. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.6.2 | Any                realized or unrealized gains or losses from the exchange of currency                in                respect of Petroleum Operations shall be credited or charged to the                accounts. A record of the exchange rates used in converting Indian                Rupees                or any other currencies into United States Dollars as specified in                Section                1.6.1 shall be maintained by the Contractor and shall be identified                in the                relevant Statements required to be submitted by the Contractor in                accordance with Section 1.4.2. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.7 | Payments  |
|-----|----------------|

| 1.7.1 | Subject                to Article 20.3 of the Contract and the foreign exchange laws and                regulations prevailing from time to time, all payments between the                Parties                shall, unless otherwise agreed, be in United States Dollars and shall                be                made through a bank designated by each receiving                Party. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.7.2 | Unless                otherwise specified, all sums due under the Contract shall be paid                within                forty five (45) days from the date on which the obligation to pay                was                incurred. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.7.3 | All                sums due by one Party to the other under the Contract during any                Month                shall, for each day such sums are overdue during such Month, bear                interest                compounded daily at the applicable LIBOR plus two (2) percentage                points. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.8 | Arms                Length Transactions |
|-----|-----------------------------------------|

|   | Unless                otherwise specifically provided for in the Contract, all transactions                giving rise to revenues, costs or expenditures which will be credited                or                charged to the accounts prepared, maintained or submitted hereunder                shall                be conducted at arms length or on such a basis as will assure that                all                such revenues, costs or expenditures will not be lower or higher,                as the                case may be, than would result from a transaction conducted at arms                length                on a competitive basis with third                parties. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.9 | Audit                and Inspection Rights of the                Government |
|-----|-----------------------------------------------------------------------------|

| 1.9.1 | Without                prejudice to statutory rights, the Government, upon at least twenty                (20)                Business Days advance written notice to the Contractor, shall have                the                right to inspect and audit, during normal business hours, all records                and                documents supporting costs, expenditures, expenses, receipts and                income,                such as the Contractor's accounts, books, records, invoices, cash                vouchers, debit notes, price lists or similar documentation with                respect                to the Petroleum Operations conducted hereunder in each Year, within                two                (2) years (or such longer period as may be required in exceptional                circumstances) from the end of such                Year. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.9.2 | The                Government may undertake the conduct of the audit either through                its own                representatives or through a qualified firm of recognised chartered                accountants, registered in India or a reputed consulting firm, appointed                for the purpose by the Government and the costs of audit in case                of                Government auditor(s) shall be borne by the Government, where as                for                outside auditor(s), this shall be borne by the Contractor as a General                and                Administrative Cost. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.9.3 | In                conducting the audit, the Government or its auditors shall be entitled                to                examine and verify, at reasonable times, all charges and credits                relating                to the Contractor's activities under the Contract and all books of                account, accounting entries, material records and inventories, vouchers,                payrolls, invoices and any other documents, correspondence and records                considered necessary by the Government to audit and verify the charges                and                credits. The auditors shall also have the right, in connection with                such                audit, to visit and inspect, at reasonable times, all sites, plants,                facilities, warehouses and offices of the Contractor directly or                indirectly serving the Petroleum Operations, and to physically examine                other property, facilities and stocks used in Petroleum Operations,                wherever located and to question personnel associated with those                operations. Where the Government requires verification of charges                made by                an Affiliate, the Government shall have the right to obtain an audit                certificate from an internationally recognized firm of public accountants                acceptable to both the Government and the Contractor, which may be                the                Contractor's statutory auditor. Submission of the audit certificate,                shall                in no way relieve or diminish                the |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.9.4 | Any                audit exceptions shall be made by the Government in writing and notified                to the Contractor within one hundred and twenty (120) days following                completion of the audit in                question. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.9.5 | The                Contractor shall answer any notice of exception under Section 1.9.4                within                one hundred and twenty (120) days of the receipt of such notice.                Where the                Contractor has, after the said one hundred and twenty (120) days,                failed                to answer a notice of exception, the exception shall prevail and                deemed to                have been agreed to by the                Contractor. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.9.6 | All                agreed adjustments resulting from an audit and all adjustments required                by                prevailing exceptions under Section 1.9.5 shall be promptly made                in the                Contractor's accounts and any consequential adjustments to the                Government's entitlement to Petroleum shall be made within thirty                (30)                days therefrom. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.9.7 | Notwithstanding                any reference to a Sole Expert or Arbitration in accordance with                the                provisions of the Contract, in case any amount is claimed as due                to the                Government resulting from the audit exception but not accepted or                settled                by the Contractor, then the Contractor shall deposit such claimed                amount                in a escrow account to be opened with a financial institution, failing                mutually agreed agreement with State Bank of India within thirty                (30) days                from the date when the amount is disputed by the Contractor. The                amount in                escrow account along with any interest accumulated thereon shall                be                appropriated or adjusted in accordance with the decision or award                of the                Sole Expert or Arbitral Tribunal as may be or otherwise as mutually                agreed                to between the Parties. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.9.8 | If                the Contractor and the Government are unable to reach final agreement                on                proposed audit adjustments, either Party may refer any dispute thereon                to                a sole expert as provided for in the Contract. So long as any issues                are                outstanding with respect to an audit, the Contractor shall maintain                the                relevant documents and permit inspection thereof until the issue                is                resolved. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.10 | Revision                of the Accounting Procedure |
|------|-----------------------------------------------------|

|   | By                mutual agreement between the Government and the Contractor, this                Accounting Procedure may be revised from time to time, in writing,                signed                by the Parties, stating the date upon which the amendments shall                become                effective. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SECTION      2**

**CLASSIFICATION,      DEFINITION AND ALLOCATION OF COSTS**

**AND      EXPENDITURES**

| 2.1 | Segregation                of Costs |
|-----|-------------------------------------|

|   | Costs                shall be segregated in accordance with the purposes for which such                expenditures are made. All costs and expenditures allowable under                Section                3, relating to Petroleum Operations, shall be classified, defined                and                allocated as set out below in this                Section. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | Exploration                Costs |
|-----|----------------------------------|

|   | Exploration                Costs are all direct and allocated indirect expenditures incurred in the                search for Petroleum in an area which is, or was at the time when                such                costs were incurred, part of the Contract Area, including expenditures                incurred in respect of: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2.1 | Aerial,                geophysical, geochemical, palaeontological, geological, topographical                and                seismic surveys, analysis and studies and their                interpretation. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2.2 | Core                hole drilling and water Well                drilling. |
|-------|---------------------------------------------------------------------------|

| 2.2.3 | Labour,                materials, supplies and services used in drilling Wells with the                object of                finding Petroleum or in drilling Appraisal Wells provided that if                such                Wells are completed as producing Wells or injection Well for enhancing                Oil                recovery, the costs of completion thereof shall be classified as                Development Costs. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2.4 | Facilities                used solely in support of the purposes described in Sections 2.2.1,                2.2.2                and 2.2.3 above, including access roads, all separately identified. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2.5 | Any                Service Costs and General and Administrative Costs directly incurred                on                exploration activities and identifiable as such and a portion of                the                remaining Service Costs and General and Administrative Costs allocated                to                Exploration Operations determined by the proportionate share of total                Contract Costs (excluding General and Administrative Costs and Service                Costs) represented by all other Exploration                Costs. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2.6 | Geological                and geophysical information purchased or acquired in connection with                Exploration Operations. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------|

| 2.2.7 | Any                other expenditures incurred in the search for Petroleum not covered                under                Sections 2.3 or 2.4. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2.3 | Development                Costs |
|-----|----------------------------------|

|   | Development                Costs are all direct and allocated indirect expenditures incurred                with                respect to the development of discoveries within the Contract Area                including expenditures incurred on account                of: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3.1 | Geological                and Geophysical information acquired in connection with Development                Operations. |
|-------|--------------------------------------------------------------------------------------------------------------------------|

| 2.3.2 | Drilling                Development Wells, whether these Wells are dry or producing and drilling                Wells for the injection of water or Gas to enhance recovery of                Petroleum. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3.3 | Completing                of Exploration Wells by way of installation of casing or equipment                or                otherwise or for the purpose of bringing a Well into use as a producing                Well or as a Well for the injection of water or Gas to enhance recovery                of                Petroleum. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3.4 | Purchase,                installation or construction of production, transport and storage                facilities for production of Petroleum, such as pipelines, flow lines,                production and treatment units, wellhead equipment, subsurface equipment,                enhanced recovery systems, offshore and onshore platforms, export                terminals and piers, harbours and related facilities and access roads                for                production activities. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3.5 | Engineering                and design studies for facilities referred to in Section                2.3.3. |
|-------|-----------------------------------------------------------------------------------------------------------|

| 2.3.6 | Any                Service Costs and General and Administrative Costs directly incurred                in                Development Operations and identifiable as such and a portion of                the                remaining Service Costs and General and Administrative Costs allocated                to                development activities, determined by the proportionate share of                total                Contract Costs (excluding General and Administrative Costs and Service                Costs) represented by all other Development                Costs. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4 | Production                Costs |
|-----|---------------------------------|

|   | Production                Costs are expenditures incurred on Production Operations after the                start                of production from the Field (which are other than Exploration and                Development Costs). The balance of General and Administrative Costs                and                Service Costs not allocated to Exploration Costs or Development Costs                shall be allocated to Production                Costs. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.5 | Service                Costs |
|-----|------------------------------|

|   | Service                Costs are direct and indirect expenditures incurred in support of                Petroleum Operations in the Contract Area, including expenditures                on                warehouses, piers, marine vessels, vehicles, motorized rolling equipment,                aircraft, fire and security stations, workshops, water and sewerage                plants, power plants, housing, community and recreational facilities                and                furniture and tools and |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2.6 | General                and Administrative Costs |
|-----|-------------------------------------------------|

|   | General                and Administrative Costs are expenditures incurred on general                administration and management primarily and principally related to                Petroleum Operations in or in connection with the Contract Area,                and shall                include: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.6.1 | main                office, field office and general administrative expenditures in India                including supervisory, accounting and employee relations                services; |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.6.2 | an                annual overhead charge for services rendered by the parent company                or an                Affiliate to support and manage Petroleum Operations under the Contract,                and for staff advice and assistance including financial, legal, accounting                and employee relations services, but excluding any remuneration for                services charged separately under this Accounting Procedure, provided                that:- |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | for                the period from the Effective Date until the date on which the first                Development Plan under the Contract is approved by the Government,                this                annual charge shall be the Contractor's verifiable expenditure but                shall                in no event be greater than the following percentages of the total                Contract Costs incurred during the Contract Year in or in connection                with                the Contract Area and qualifying for recovery pursuant to Section                3: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Contract      costs in any**
**Annual      overhead charge**

|   |   | **Contract                year (in million US$)** |
|--------|--------|---------------------------------------------------|

|   | Over                5 |   |   | US                $ 120,000 + 1% of Contract |
|--------|-----------------------|--------|--------|----------------------------------------------|

|   |   |   |   | Costs                in excess of US $ 5 million |
|--------|--------|--------|--------|--------------------------------------------------|

|   | (ii) | from                the date on which the first Development Plan is approved, the charge                shall                be at an amount or rate to be agreed on between the Parties and stated                in                the Development Plan. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.6.3 | All                General and Administrative Costs shall be regularly allocated as                specified                in Sections 2.2.5, 2.3.5 and 2.4 to Exploration Costs, Development                Costs                and Production Costs respectively, and shall be separately shown                under                each of these cost categories. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SECTION      3**

**COSTS,      EXPENSES, EXPENDITURES AND INCIDENTAL INCOME**

**OF      THE CONTRACTOR**

| 3.1 | Costs                Recoverable and Allowable Without Further Approval of the                Government |
|-----|----------------------------------------------------------------------------------------------------------|

|   | Costs                incurred by the Contractor on Petroleum Operations as per reviewed                or                approved Work Programme and Budget by the Management Committee as                the case                may be, pursuant to the Contract as classified under the headings                referred                to in Section 2 shall be allowable for the purposes of the Contract                except                to the extent provided in Section 3.2 or elsewhere in this Accounting                Procedure, and subject to audit, as referred to in Articles 25.4.1                to                25.4.4 and Article 25.5,** **as                provided for herein. Further in case of variation in costs over the                reviewed/approved Work Programme and Budget, as the case may be,                or                re-appropriation of costs, shall be submitted to the Management Committee                for review/approval, as the case may be, within thirty (30) days                from end                of the relevant Financial Year and subject to the audit and other                provisions of the Contract, such costs shall be allowable for the                purposes                of the Contract. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.1.1 | Surface                Rights |
|-------|-------------------------------|

|   | All                direct costs necessary for the acquisition, renewal or relinquishment                of                surface rights acquired and maintained in force for the purposes                of the                Contract except as provided in Section                3.1.9. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | The                Contractor's costs regarding holiday, vacation, sickness and disability                benefits and living and housing and other customary allowances applicable                to the salaries and wages chargeable under Section 3.1.2(b)                above. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Expenses                or contributions made pursuant to assessments or obligations imposed                under                the laws of India which are applicable to the Contractor's cost of                salaries and wages chargeable under Section 3.1.2(b)                above. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | The                Contractor's cost of established plans for employees' group life                insurance, hospitalization, pension, retirement and other benefit                plans of                a like nature customarily granted to the Contractor's employees provided,                however, that such costs are in accordance with generally accepted                standards in the international petroleum industry, applicable to                salaries                and wages chargeable to Petroleum Operations under Section 3.1.2(b)                above. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Personal                income taxes where and when they are paid by the Contractor to the                Government of India for the employee, in accordance with the Contractor's                standard personnel policies. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Reasonable                transportation and travel expenses of employees of the Contractor,                including those made for travel and relocation of the expatriate                employees, including their dependent family and personal effects,                assigned                to India whose salaries and wages are chargeable to Petroleum Operations                under Section 3.1.2(b) above. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Transportation                cost as used in this Section shall mean the cost of freight and passenger                service and any accountable incidental expenditures related to transfer                travel and authorized under the Contractor's standard personnel policies.                The Contractor shall ensure that all expenditures related to                transportation costs are equitably allocated to the activities which                have                benefited from the personnel                concerned. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.1.3 | Transportation                Costs |
|-------|-------------------------------------|

|   | The                reasonable cost of transportation of equipment, materials and supplies                within India and from outside India to India necessary for the conduct                of                Petroleum Operations under the Contract, including directly related                costs                such as unloading charges, dock fees and inland and ocean freight                charges. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3.1.4 | Charges                for Services |
|-------|-------------------------------------|

|   | (c) | Equipment,                facilities and property owned and furnished by the Contractor's                Affiliates, at rates commensurate with the cost of ownership and                operation                provided, however, that such rates shall not exceed those currently                prevailing for the supply of like equipment, facilities and property                on                comparable terms in the area where the Petroleum Operations are being                conducted. The equipment and facilities referred to herein shall                exclude                major investment items such as (but not limited to) drilling rigs,                producing platforms, oil treating facilities, oil and gas loading                and                transportation systems, storage and terminal facilities and other                major |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3.1.5 | Communications |
|-------|----------------|

|   | Cost                of acquiring, leasing, installing, operating, repairing and maintaining                communication systems including radio, satellite link and microwave                facilities between the Contract Area and the Contractor's nearest                base                facility. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.1.6 | Office,                Shore Bases and Miscellaneous                Facilities |
|-------|--------------------------------------------------------------------------------|

|   | Net                cost to the Contractor of establishing, maintaining and operating                any                office, sub-office, shore base facility, warehouse, housing or other                facility directly serving the Petroleum Operations. If any such facility                services contract areas other than the Contract Area, or any business                other than Petroleum Operations, the net costs thereof shall be allocated                on an equitable and consistent                basis. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.1.7 | Environmental                Studies and Protection |
|-------|-----------------------------------------------------|

|   | Costs                incurred in conducting the environmental impact assessment studies                for the                Contract Area, and in taking environmental protection measures including                abandonment cost or contribution to abandonment funds as may be created                for abandonment and Site Restoration pursuant to the terms of the                Contract. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.1.8 | Materials                and equipment |
|-------|----------------------------------------|

----

|   | (a) | Except                as otherwise provided in subparagraph (b) below, materials purchased                by                the Contractor for use in the Petroleum Operations shall be valued                to                include invoice price less trade and cash discounts, if any, purchase                and                procurement fees plus freight and forwarding charges between point                of                supply and point of shipment, freight to port of destination, insurance,                taxes, custom duties, consular fees, other items chargeable against                imported material and, where applicable, handling and transportation                costs                from point of importation to warehouse or operating site, and these                costs                shall not exceed those currently prevailing in normal arms length                transactions on the open market. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Material                purchased from or sold to Affiliates or transferred to or from activities                of the Contractor other than Petroleum Operations under the                Contract: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (aa) | new                material (hereinafter referred to as condition A) shall be valued                at the                current international price which shall not exceed the price prevailing                in                normal arms length transactions on the open                market; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (bb) | used                material which is in sound and serviceable condition and is suitable                for                reuse without reconditioning (hereinafter referred to as condition                B)                shall be priced at not more than seventy five per cent (75%) of the                current price of the above mentioned new                materials; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (cc) | used                material which cannot be classified as condition B, but which, after                reconditioning, will be further serviceable for original function                as good                second-hand condition B material or is serviceable for original function,                but substantially not suitable for reconditioning (hereinafter referred                to                as condition C) shall be priced at not more than fifty per cent (50%)                of                the current price of the new material referred to above as condition                A. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                cost of reconditioning shall be charged to the reconditioned material,                provided that the condition C material value plus the cost of                reconditioning does not exceed the value of condition B                material. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Material                which cannot be classified as condition B or condition C shall be                priced                at a value commensurate with its                use. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Material                involving erection expenditure shall be charged at the applicable                condition percentage (referred to above) of the current knocked-down                price                of new material referred to above as condition                A. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | When                the use of material is temporary and its service to the Petroleum                Operations does not justify the reduction in price in relation to                materials referred to above as conditions B and C, such material                shall be                priced on a basis that will result in a net charge to the accounts                under                the Contract consistent with the value of the service rendered. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.1.9 | Duties,                Fees and Other Charges |
|-------|-----------------------------------------------|

|   | Any                duties, levies, fees, charges and any other assessments levied by                any                governmental or taxing authority in connection with the Contractor's                activities under the Contract and paid directly by the Contractor                except                corporate income tax payable by the constituents of the                Contractor. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.1.10 | Insurance                and Losses |
|--------|-------------------------------------|

|   | Insurance                premia and costs incurred for insurance pursuant to Article 24 of                the                Contract, provided that such insurance is customary, affords prudent                protection against risk and is at a premium no higher than that charged                on                a competitive basis by insurance companies which are not Affiliates.                Except as provided in Sections 3.2 (ix), Section 3.2(x) and Section                3.2(xi), actual costs and losses incurred shall be allowable to the                extent                not made good by insurance. Such costs may include, but are not limited                to, repair and replacement of property in the Contract Area resulting                from                damages or losses incurred by fire, flood, storm, theft, accident                or such                other cause. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.1.11 | Legal                Expenses |
|--------|-------------------------------|

|   | All                reasonable costs and expenses, except Section 3.2 (xi) resulting                from the                handling, investigating, asserting, defending, or settling of any                claim or                legal action necessary or expedient for the procuring, perfecting,                retention and protection of the Contract Area and in defending or                prosecuting lawsuits involving the Contract Area or any third party                claim                arising out of Petroleum Operations under the Contract, or sums paid                in                respect of legal services necessary for the protection of the joint                interest of Government and the Contractor, shall be allowable. Such                expenditures shall include attorney's fees, court costs, costs of                investigation and procurement of evidence and amounts paid in settlement                or satisfaction of any such litigation and claims provided such costs                are                not covered elsewhere in the Accounting Procedure. Where legal services                are rendered in such matters by salaried or regularly retained lawyers                of                the Contractor or an Affiliate, such compensation shall be included                instead under Section 3.1.2 or 3.1.4 (ii) above as                applicable. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.1.12 | Training                Costs |
|--------|-------------------------------|

|   | All                costs and expenses incurred by the Contractor in training as is required                under Article 22 of the                Contract. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3.1.13 | General                and Administrative Costs |
|--------|-------------------------------------------------|

|   | The                costs described in Section 2.6.1 and the charge described in Section                2.6.2                of this Accounting Procedure. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.1.14 | Royalty,                License fee, surface rentals                etc. |
|--------|--------------------------------------------------------------------------|

|   | Royalty,                License fee, surface rentals, dead rents and other levies and taxes                paid                to the Government of India or State Government or local Government                bodies                or authority or agency except income tax paid to the Government. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Costs                not recoverable and not allowable under the                Contract |
|-----|------------------------------------------------------------------------------------------|

|   | The                following costs and expenses shall not be recoverable or allowable                (whether directly as such or indirectly as part of any other charges                or                expense) for cost recovery and profit sharing purposes under the                Contract                : |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | costs                and charges incurred before the Effective Date including costs in                respect                of preparation, signature or ratification of this                Contract; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | **Explanatory                Note:**                It                is clarified that costs and expenditures, incurred prior to the Effective                Date but after the execution of the Contract, for making statutory                payments in connection with the Petroleum Operations such as Petroleum                Exploration License (PEL) fee and application fee shall be allowed                as                Contract Cost and shall be cost                recoverable. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | expenditures                in respect of any financial transaction to negotiate, float or otherwise                obtain or secure funds for Petroleum Operations including, but not                limited                to, interest, commission, brokerage and fees related to such transactions,                as well as exchange losses on loans or other financing, whether between                Affiliates or otherwise; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | costs                of marketing or transportation of Petroleum beyond the Delivery                Point; |
|--------|-------|------------------------------------------------------------------------------------------------------------|

|   | (iv) | expenditures                incurred in obtaining, furnishing and maintaining the guarantees                required                under the Contract and any other amounts spent on indemnities with                regard                to non-fulfillment of contractual                obligations; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | attorney's                fees and other costs and charges in connection with arbitration                proceedings and sole expert determination pursuant to the                Contract; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | fines,                interest and penalties imposed by Courts of law of the Republic of                India; |
|--------|------|----------------------------------------------------------------------------------------------------------------|

|   | (vii) | donations                and contributions; |
|--------|-------|---------------------------------------------|

|   | (viii) | expenditures                on creation of any partnership or joint venture                arrangement; |
|--------|--------|---------------------------------------------------------------------------------------------------------|

|   | (ix) | amounts                paid with respect to non-fulfillment of contractual                obligations; |
|--------|------|--------------------------------------------------------------------------------------------------------|

|   | (x) | costs                incurred as a result of failure to insure where insurance is required                pursuant to the Contract, or of failure to follow procedures laid                down by |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (xi) | costs                and expenditures incurred as a result of misconduct or negligence                of the                Contractor; and |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xii) | expenses                of the members of the Management Committee as per Article                6.12. |
|--------|-------|--------------------------------------------------------------------------------------------------------|

| 3.3 | Other                costs recoverable and allowable only with Management Committee                approval |
|-----|-------------------------------------------------------------------------------------------------------------|

|   | Any                other costs and expenditures not included in Section 3.1 or 3.2 of                this                Accounting Procedure but which have been incurred by the Contractor                for                the necessary and proper conduct of Petroleum Operations shall be                allowed                to be recovered only with the express prior approval in writing of                the                Management Committee. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.4 | Incidental                Income and Credits |
|-----|----------------------------------------------|

|   | All                incidental income and proceeds received from Petroleum Operations                under                the Contract, including but not limited to the items listed below,                shall                be credited to the accounts under the Contract and shall be taken                into                account for cost recovery, and Profit Petroleum sharing purposes                in the                manner described in Articles 15 and 16 of the                Contract:- |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | The                proceeds of any insurance or claim or judicial awards in connection                with                Petroleum Operations under the Contract or any assets charged to                the                accounts under the Contract where such operations or assets have                been                insured and the premia charged to the accounts under the                Contract; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Revenue                received from third parties for the use of property or assets, the                cost of                which has been charged to the accounts under the                Contract; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Any                adjustment received by the Contractor from the suppliers/manufacturers                or                their agents in connection with defective material, the cost of which                was                previously charged by the Contractor to the accounts under the                Contract; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | Rentals,                refunds or other credits received by the Contractor which apply to                any                charge which has been made to the accounts under the                Contract; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | Prices                originally charged to the accounts under the Contract for materials                subsequently exported from the Republic of India without being used                in                Petroleum Operations under the                Contract; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | Proceeds                from the sale or exchange by the Contractor of assets, plant or                facilities, the acquisition costs of which have been charged to the                accounts under the Contract; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | Legal                costs charged to the accounts under Section 3.1.11 of this Accounting                Procedure and subsequently recovered by the                Contractor. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.5 | Non-Duplication                of Charges and Credits |
|-----|-------------------------------------------------------|

----

|   | Notwithstanding                any provision to the contrary in this Accounting Procedure, it is                the                objective of the Parties that there shall be no duplication of charges                or                credits to the accounts under the                Contract. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SECTION      4**

**RECORDS      AND INVENTORIES OF ASSETS**

| 4.1 | Records |
|-----|---------|

| 4.1.1 | The                Contractor shall keep and maintain detailed records of property and                assets                in use for or in connection with Petroleum Operations under the Contract                in accordance with normal practices in exploration and production                activities of the international petroleum industry. Such records                shall                include information on quantities, location and condition of such                property                and assets, and whether such property or assets are leased or                owned. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | Inventories |
|-----|-------------|

| 4.2.1 | The                Contractor shall: |
|-------|--------------------------------------|

|   | (a) | not                less than once every twelve (12) Months with respect to movable assets;                and |
|--------|-----|---------------------------------------------------------------------------------------------------------------|

|   | (b) | not                less than once every three (3) Years with respect to immovable assets, |
|--------|-----|-------------------------------------------------------------------------------------------|

| 4.2.2 | The                Contractor shall give the Government at least thirty (30) days notice                in                writing in the manner provided for in the Contract of its intention                to                take the inventory referred to in Section 4.2.1 and the Government                shall                have the right to be represented when such inventory is                taken. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2.3 | When                an assignment of rights under the Contract takes place, a special                inventory shall be taken by the Contractor at the request of the                assignee                provided that the cost of such inventory is borne by the assignee                and paid                to the Contractor. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2.4 | In                order to give effect to Article 27 of the Contract, the Contractor                shall                provide the Government with a comprehensive list of all relevant                assets                when requested by the Government to do                so. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SECTION      5**

**PRODUCTION      STATEMENT**

| 5.1 | From                the date of first production of Petroleum from the Contract Area                the                Contractor shall submit a monthly Production Statement to Government                showing the following information separately of each producing Field                and                in aggregate for the Contract Area: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.1.1 | The                quantity of Crude Oil and Condensate produced and                saved. |
|-------|--------------------------------------------------------------------------------------------|

| 5.1.2 | The                quality and characteristics of such Crude Oil and Condensate produced                and                saved. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------|

| 5.1.3 | The                quantity of Associated Natural Gas and Non Associated Natural Gas                produced                and saved. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------|

| 5.1.4 | The                quality, characteristics and composition of such Natural Gas produced                and                saved separately. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------|

| 5.1.5 | The                quantities of Crude Oil, Condensate and Natural Gas used for the                purposes                of carrying on drilling and production operations and pumping to                field                storage, as well as quantities                re-injected. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.1.6 | The                quantities of Crude Oil, Condensate and Natural Gas unavoidably                lost. |
|-------|---------------------------------------------------------------------------------------------------------|

| 5.1.7 | The                quantities of Natural Gas flared and                vented. |
|-------|--------------------------------------------------------------------------------|

| 5.1.8 | The                size of Petroleum stocks held on the first day of the Month in                question. |
|-------|------------------------------------------------------------------------------------------------------------|

| 5.1.9 | The                size of Petroleum stocks held on the last day of the Month in                question. |
|-------|-----------------------------------------------------------------------------------------------------------|

| 5.1.10 | The                quantities of Natural Gas reinjected into the Petroleum                Reservoir. |
|--------|------------------------------------------------------------------------------------------------------|

| 5.1.11 | The                number of days in the Month during which Petroleum was produced from                each                Field. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|

| 5.1.12 | The                Gas-Oil ratio for each Reservoir and Field for the relevant                Month. |
|--------|------------------------------------------------------------------------------------------------------|

| 5.1.13 | Water                production, water injection and Reservoir pressure data for each                Reservoir                and Field. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.2 | All                quantities shown in this Statement shall be expressed in both volumetric                terms (barrels of Oil and cubic metres of Gas) and in the case of                Oil in                weight (metric tonnes). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3 | For                the purpose of reporting Field production quantities pursuant to                this                Section, the Contractor shall agree with the Management Committee                on the                exact area to be designated as Development                Area. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.4 | The                Government may direct in writing that the Contractor include other                reasonable particulars relating to the production of Petroleum in                its                monthly Production Statement, and the Contractor shall comply with                such                direction. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.5 | The                Production Statement for each Month shall be submitted to Government                no                later than fifteen (15) days after the end of such                Month. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SECTION      6**

**VALUE      OF PRODUCTION AND PRICING STATEMENT**

| 6.1 | The                Contractor shall, for the purposes of Article 19 of the Contract,                prepare                a Statement providing calculations of the value of Crude Oil and                Condensate produced and saved during each Month. This Statement shall                contain the following information: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.1.1 | The                quantities, prices and receipts realised therefor by the Contractor                as a                result of sales of Crude Oil and Condensate to third parties made                during                the Month in question. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.1.2 | The                quantities, prices and receipts realised therefor by the Contractor                as a                result of sales of Crude Oil and Condensate made during the Month                in                question, other than to third parties, if                any. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.1.3 | The                quantities of Crude Oil and Condensate appropriated by the Contractor                to                refining or other processing without otherwise being disposed of                in the                form of Crude Oil or Condensate. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.1.4 | The                value of stocks of Crude Oil and Condensate on the first day of the                Month                in question. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------|

| 6.1.5 | The                value of stocks of Crude Oil and Condensate on the last day of the                Month                in question. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------|

| 6.1.6 | The                percentage volume of total sales of Crude Oil and Condensate made                by the                Contractor during the Month that are Arms Length Sales to third                parties. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.1.7 | Information                available to the Contractor, insofar as required for the purposes                of                Article 19 of the Contract, concerning the prices of competitive                crude                oils produced by the main petroleum producing and exporting countries                including contract prices, discounts and premia, and prices obtained                on                the spot markets. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | The                Contractor shall, for the purpose of Article 21 of the Contract,                prepare a                Statement providing calculations of the value of Associated Natural                Gas                and Non Associated Natural Gas produced, flared internally used,                saved and                sold during each Month. This Statement shall contain all information                of                the type specified in Section 6.1 for Crude Oil as is applicable                to Gas                and such other relevant information as may be required by                Government. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6.3 | The                Statements required pursuant to Sections 6.1 and 6.2 shall include                a                detailed breakdown of the calculation of the prices of Crude Oil,                Condensate, Associated Natural Gas and Non Associated Natural Gas                pursuant                to the provisions of Articles 19 and                21. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.4 | The                Value of Production and Pricing Statement for each Month shall be                submitted to Government not later than thirty (30) days after the                end of                such Month. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SECTION      7**

**STATEMENT      OF COSTS, EXPENDITURES AND RECEIPTS**

| 7.1 | The                Contractor shall prepare with respect to each Quarter a Statement                of                Costs, Expenditures and Receipts under the Contract using mercantile                basis                of accounting. The Statement shall distinguish between Exploration                Costs,                Development Costs and Production Costs and shall separately identify                all                significant items of costs and expenditure as itemised in Section                3 of                this Accounting Procedure within these categories. The Statement                of                receipts shall distinguish between income from the sale of Petroleum                and                incidental income of the sort itemised in Section 3.4 of this Accounting                Procedure. If the Government is not satisfied with the degree of                disaggregation within the categories, it shall be entitled to request                a                more detailed breakdown. The Statement shall show the                following: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.1.1 | Actual                costs, expenditures and receipts for the Quarter in                question. |
|-------|----------------------------------------------------------------------------------------------------|

| 7.1.2 | Cumulative                costs, expenditures and receipts for the Year in                question. |
|-------|-----------------------------------------------------------------------------------------------------|

| 7.1.3 | Latest                forecast of cumulative costs, expenditures and receipts at the Year                end. |
|-------|---------------------------------------------------------------------------------------------------------------|

| 7.1.4 | Variations                between budget forecast and latest forecast and explanations                thereof. |
|-------|----------------------------------------------------------------------------------------------------------------|

| 7.2 | The                Statement of Costs, Expenditures and Receipts of each Quarter shall                be                submitted to Government not later than thirty (30) days after the                end of                such Quarter. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SECTION      8**

**COST      RECOVERY STATEMENT**

| 8.1 | The                Contractor shall prepare with respect to each Calendar Quarter a                Cost                Recovery Statement containing the following                information: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.1.1 | Unrecovered                Contract Costs carried forward from the previous Quarter, if                any. |
|-------|-------------------------------------------------------------------------------------------------------------|

| 8.1.2 | Contract                Costs for the Quarter in question. |
|-------|------------------------------------------------------------|

| 8.1.3 | Total                Contract Costs for the Quarter in question (Section 8.1.1 plus Section                8.1.2). |
|-------|--------------------------------------------------------------------------------------------------------------------|

| 8.1.4 | Quantity                and value of Cost Petroleum taken and disposed of by the Contractor                for                the Quarter in question. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.1.5 | Contract                Costs recovered during the Quarter in question as per Article                15. |
|-------|----------------------------------------------------------------------------------------------------------|

| 8.1.6 | Total                cumulative amount of Contract Costs recovered up to the end of the                Quarter                in question. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------|

| 8.1.7 | Amount                of Contract Costs to be carried forward into the next                Quarter. |
|-------|-----------------------------------------------------------------------------------------------------|

| 8.2 | The                Cost Recovery Statement for each Quarter shall be submitted to Government                not later than thirty (30) days after the end of such                Quarter. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SECTION      9**

**PROFIT      SHARING STATEMENT**

| 9.1 | The                Contractor shall prepare with respect to each Quarter a Profit Sharing                Statement containing the following                information: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.1.1 | The                calculation of the applicable net cash flows as defined in Appendix                D for                the Quarter in question. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.1.2 | The                value of the Investment Multiple applicable in the Quarter in                question. |
|-------|-----------------------------------------------------------------------------------------------------------|

| 9.1.3 | Based                on Section 9.1.2 and Article 16, the appropriate percentages of Profit                Petroleum for the Government and the Contractor in the Quarter in                question. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.1.4 | The                total amount of Profit Petroleum to be shared between the Government                and                the Contractor in the Quarter in                question. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.1.5 | Based                on Sections 9.1.3 and 9.1.4, the amount of Profit Petroleum due to                the                Government and the Contractor as well as to each constituent of the                Contractor in the Quarter in                question. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.1.6 | The                actual amounts of Petroleum taken or payment received by Government                and                the Contractor as well as by each constituent of the Contractor during                the                Quarter in question to satisfy their entitlements pursuant to Section                9.1.5. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.1.7 | Adjustments                to be made, if any, in future Quarters in the respective amounts                of Profit                Petroleum due to the Government and the Contractor as well as to                each                constituent of the Contractor on account of any differences between                the                amounts specified in Sections 9.1.5 and 9.1.6, as well as any cumulative                adjustments outstanding from previous                Quarters. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | The                Profit Sharing Statement shall be submitted to Government not later                than                thirty (30) days after the end of such Quarter. Any amount due or                adjustment required in profit sharing among the Parties shall be                made                within thirty (30) days from the submission of the Statement to the                Government. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SECTION      10**

**LOCAL      PROCUREMENT STATEMENT**

| 10.1 | In                furtherance of the obligation in Article 23 of the Contract for the                Contractor to give preference to the procurement of Indian goods                and                services, the Contractor shall prepare in respect of each Year a                local                procurement statement, containing the following                information: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | The                amount of expenditure incurred by the Contractor directly, or indirectly                through its Subcontractors, on goods supplied, produced or manufactured                in                India; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the                amount of expenditure incurred by the Contractor directly, or indirectly                through its Subcontractors, on services provided by Indian                entities; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the                respective percentages that the expenditures recorded under items                (a) and                (b) above represent of the Contractor’s total                expenditures; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | a                detailed description of the procedures adopted during the Year to                identify                and purchase goods and services from Indian suppliers;                and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | a                detailed exposition of how the local purchases for the Year as recorded                under items (a) and (b) above compared with the projected purchases                included in the budget statement for that Year (pursuant to Section                12.1.3), with explanations for any significant                variations; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | The                local procurement statement shall be submitted to the Government                within                sixty (60) days after the end of each                Year. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SECTION      11**

**END      OF YEAR STATEMENT**

| 11.1 | The                Contractor shall prepare a definitive End of Year Statement. The                Statement                shall contain aggregated information in the same format as required                in the                Production Statement, Value of Production and Pricing Statement,                Statement                of Costs, Expenditures and Receipts, Cost Recovery Statement and                Profit                Sharing Statement, but shall be based on actual quantities of Petroleum                produced, income received and costs and expenditures incurred. Based                upon                this Statement, any adjustments that are necessary shall be made                to the                transactions concerned under the                Contract. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | [Explanation                : End of year Statement shall further contain the item wise justification                for the variation between the actual costs and expenditure incurred                and                included in the statement of costs, expenditure and receipts vis-à-vis the                Budgets for corresponding line                items.] |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2 | The                End of Year Statement for each Year shall be submitted to Government                within ninety (90)** **days                of the end of such Year. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SECTION      12**

**BUDGET      STATEMENT**

| 12.1 | The                Contractor shall prepare a Budget Statement for each Year. This Statement                shall distinguish between budgeted Exploration Costs, Development                Costs                and Production Costs and shall show the                following: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.1.1 | Forecast                costs, expenditures and receipts for the Year in question. |
|--------|------------------------------------------------------------------------------------|

| 12.1.2 | A                schedule showing the most important individual items of total costs,                expenditures and receipts for the said                Year. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.1.3 | Estimated                amounts to be spent in the Year on procuring goods and services in                India. |
|--------|-------------------------------------------------------------------------------------------------------------------|

| 12.2 | The                Budget Statement shall be submitted to Government with respect to                each                Year not less than ninety (90) days before the start of the said                Year                provided that in the case of the Year in which the Effective Date                falls,                the Budget Statement shall be submitted within ninety (90) days of                the                Effective Date. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**APPENDIX-D**

**CALCULATION      OF THE INVESTMENT MULTIPLE **

**FOR      PRODUCTION SHARING PURPOSES**

| 1. | In                accordance with the provisions of Article 16, the share of the Government                and the Contractor respectively of Profit Petroleum from the Contract                Area                in any Year shall be determined by the Investment Multiple earned                by the                Contractor from the then Petroleum Operations at the end of the preceding                Year. These measures of profitability shall be calculated on the                basis of                the appropriate net cash flows as specified in this Appendix                D. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | The                "Net Cash Income" of the Contractor from their Petroleum Operations                in any                particular Year is the aggregate value for the Year of the                following: |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Cost                Petroleum entitlement of the Contractor as provided in Article 15; |
|--------|-----|----------------------------------------------------------------------------------------|

|   |   | **plus** |
|--------|--------|----------|

|   | (ii) | Profit                Petroleum entitlement of the Contractor as provided in Article 16; |
|--------|------|------------------------------------------------------------------------------------------|

|   |   | **plus** |
|--------|--------|----------|

|   | (iii) | the                Contractor’s all incidental income (of the type specified in section 3.4                of the Accounting Procedure) arising from Petroleum                Operations; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | **less** |
|--------|--------|----------|

|   | (iv) | the                Contractor’s Production Costs and royalty payments (Article 17) incurred                on or in the Contract Area; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | The                "Investment" made by the Contractor in the Contract Area in any particular                Year is the aggregate value for the Year                of: |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the                Contractor’s Exploration Costs incurred on or in the Contract Area                pursuant to Article 15 |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   |   |   |
|--------|--------|--------|

|   |   | **plus** |
|--------|--------|----------|

|   | (ii) | the                Contractor’s Development Costs incurred on or in the Contract                Area. |
|--------|------|-------------------------------------------------------------------------------------------------------------|

| 4. | For                the purposes of the calculation of the Investment Multiple, costs                or                expenditures which are not allowable as provided in the Accounting                Procedure shall be excluded from Contract Costs and be                disregarded. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5. | The                Investment Multiple ratio earned by the Contractor as at the end                of any                Year shall be calculated by dividing the aggregate value of the addition                of each of the annual Net Cash Incomes (accumulated, without interest,                up                to and including that Year starting from the Year in which Production                Costs were first incurred or Production first arose) by the aggregate                value of the addition of each of the annual Investments (accumulated,                without interest, up to and including that Year starting from the                Year in                which Exploration and Development Costs were first                incurred). |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Profit                Petroleum from the Contract Area in any Year shall be shared between                the                Government and the Contractor in accordance with the value of the                Investment Multiple earned by the Contractor as at the end of the                previous                Year pursuant to Articles 16.2 to                16.5. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**APPENDIX-E1**

**FORM      OF PARENT COMPANY FINANCIAL AND PERFORMANCE GUARANTEE**

----

----

**APPENDIX-E2**

**FORM      OF COMPANY FINANCIAL AND PERFORMANCE GUARANTEE**

|   | WHEREAS___XYZ                Company _____________________________________ duly organised and                existing                under the laws of__________________ having its registered office                at_______________________ (hereinafter referred to as 'the Guarantor'                which expression shall include its successors and assigns) is signatory                to                a Production Sharing Contract in respect of an (offshore) (onshore)                area                identified as Block ___________________________________ (hereinafter                referred to as 'the Contract') made between the Government of India                (hereinafter referred to as 'the Government'), and XYZ Company                (hereinafter referred to as XYZ which expression shall include its                successors and permitted assigns); and |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | WHEREAS                the Guarantor wishes to guarantee its performance under the Contract                as                required by the terms of the                Contract; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | NOW,                THEREFORE this Deed hereby provides as follows: |
|--------|---------------------------------------------------------------------|

| 1. | The                Guarantor hereby unconditionally and irrevocably guarantees to the                Government that it will make available, or cause to be made available,                financial, technical and other resources required to ensure that                XYZ                Company can carry out its obligations as set forth in the                Contract. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | The                Guarantor further unconditionally and irrevocably guarantees to the                Government the due and punctual compliance by it of any obligations                under                the Contract. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | The                Guarantor hereby undertakes to the Government that it shall fulfill                or                cause to be fulfilled all its obligations under the Contract, and                if it                fails to perform its obligations under the Contract or commits any                breach                of such obligations, then it shall indemnify the Government against                all                losses, damages, costs, expenses or otherwise which may result directly                from such failure to perform or breach on its                part. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | This                guarantee shall take effect from the Effective Date and shall remain                in                full force and effect for the duration of the said Contract and thereafter                until no sum remains payable by XYZ Company, under the Contract or                as a                result of any decision or award made by any expert or arbitral tribunal                thereunder. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

**APPENDIX-F**

**PROCEDURE      FOR ACQUISITION OF GOODS AND SERVICES**

**I**
**OBJECTIVES**

| (a)                 | ensure                that the goods and services acquired by the Operator for carrying                out the                Petroleum Operations are acquired at the optimum cost taking into                consideration all relevant factors including price, quality, delivery                time                and the reliability of potential                suppliers. |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)                 | ensure                that goods and services are delivered in a timely manner taking into                consideration the consequences of delays in the acquisition of these                goods                and services on the project as a                whole. |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)                 | ensure                that the provisions of Article 23 of the Contract are                implemented. |
|-------------------------------|---------------------------------------------------------------------------------------------------------|

**II**
**PRINCIPLES**

| (a)                 | The                Parties must be satisfied that the Operator is working to an agreed                procedure for acquiring goods and services which is auditable and                in                accordance with the provisions of the                Contract. |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)                 | The                Operator must have the ability to acquire goods and services expeditiously                so that the project schedules in respect of Approved Work Programmes                are                maintained. |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**III**
**PROCEDURES**

|                                                                                                      | **Procedure                A**                 | **Procedure                B**                  | **Procedure                C**                 |
|-----------------------------------------------------------------------------------------------------------|------------------------------------------------|-------------------------------------------------|------------------------------------------------|
| Applicable                to Exploration, Appraisal, Development                and Production operations | $                50,000 to less than $ 200,000 | $                200,000 to less than $ 500,000 | Equal                to or more than $ 500,000 |

----

**For      contracts valued at less than US$ 5000**

**For      Contracts valued at US$ 5000 and above but less than US$      50,000**

**Procedure      A:**

| (1)                 | provide                the constituents of the Contractor with a list of all the entities                approved by the Operating Committee as per Appendix-F (V) for the                applicable category of the contract along with other entities, if                any,                from whom the Operator proposes to invite                tender; |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)                 | add                to such list the entities whom other Party requests for adding within                five                (5) Business Days on receipt of such                lists; |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)                 | if                and when any Party so requests, Operator shall evaluate any entity                listed                in (1) and (2) above to assure that entity is qualified as based                on the                qualification criteria agreed in accordance with Appendix-F(IV) to                perform                under the contract; |
|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)                 | complete                the tendering process within a reasonable period of                time; |
|-------------------------------|--------------------------------------------------------------------------------------------------|

| (5)                 | circulate                to all constituents of the Contractor a comparative bid analysis                stating                Operator’s choice of the entity for award of contract. Provide also                reasons for such choice in case entity chosen is not the lowest                bidder; |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)                 | inform                all the constituents of the Contractor of the entities to whom the                contract has been awarded; and |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| (7)                 | upon                the request of a Party, provide such Party with a copy of the final                version of the contract awarded. |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

**Procedure      B:**

| (1)                 | provide                the Parties with a list of all the entities approved by the Operating                Committee as per Appendix-F (V) for the applicable category of the                contract, |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (2)                 | add                to such list the entities whom a Party requests for adding within                five (5)                Business Days on receipt of such                list; |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)                 | if                and when any Party so requests, Operator shall evaluate any entity                listed                in (1) and (2) above to assure that entity is qualified as based                on the                qualification criteria agreed in accordance with Appendix-F (IV),                to                perform under the contract; |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)                 | complete                the tendering procedure within a reasonable period of                time; |
|-------------------------------|----------------------------------------------------------------------------------------------------|

| (5)                 | circulate                to all constituents of the Contractor a comparative bid analysis                stating                Operator’s choice of the entity for award of contract. Provide also                reasons for such choice in case the entity chosen is not the lowest                bidder. If the bid selected is not the lowest bid, obtain prior approval                of the Operating Committee for award of                contract; |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)                 | award                the contract accordingly and inform all the members of the Management                Committee of the entities to whom the contract has been awarded;                and |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)                 | upon                the request of a Party, provide such Party with a copy of the final                version of the contract awarded. |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

**Procedure      C:**

| (1)                 | publish                invitations for parties to pre-qualify for the proposed contract                in at                least three (3) daily national Indian newspaper. Provide to Non-Operating                Companies, a list of responding parties and an analysis of their                qualifications for the contract being contemplated to be awarded.                Include                those who qualify, as per the prequalification criteria approved                as per                Appendix-F (IV) in the list of entities from whom Operator proposes                to                invite tender for the said                contract; |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)                 | provide                the members of the Management Committee with a total list of all the                entities selected as (1) above and all the entities approved by the                Operating Committee as per Appendix-F(V) for the applicable category                of                the contract, along with other entities, if any, from whom the Operator                proposes to invite tender; |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)                 | add                to such entities whom a Party requests for adding within five (5)                Business                Days on receipt of such list; |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)                 | if                and when any Party so requests, Operator shall evaluate any entity                listed                in (2) and (3) above to assure that entity is qualified as based                on the                qualification criteria agreed in accordance with Appendix-F(IV),                to                perform under the contract; |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)                 | prepare                and dispatch the tender documents to the entities as finally listed                and to                Parties; |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| (6)                 | after                the expiration of the period allowed for tendering, consider and                analyse                the details of all bids received; |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)                 | prepare                and circulate to the constituents of the Contractor a comparative                bid                analysis stating Operator’s recommendation as to the entity to whom the                contract |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (8)                 | obtain                the approval of the Operating Committee to the recommended bid. However,                failing Operating Committee approval any Company may refer the issue                to                the Management Committee for decision;                and |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9)                 | award                the contract accordingly and upon the request of a Party, provide                such                Party with a copy of the final version of the                contract; |
|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| IV.                 | A                set of vendor qualifications criteria for each major category                contract/supply shall be proposed by the Operator and approved by                the                Operating Committee within thirty (30) days of its submission. In                the                event the Operating Committee fails to approve vendor qualification                criteria within thirty (30) days of the date the same is first submitted                by the Operator, the matter shall be referred to the Management Committee                for decision. The Operating Committee may revise the qualification                criteria. |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| V.                 | It                is anticipated that, in order to expedite joint operations, contracts                will                be awarded to qualified vendors/contractors who are identified as                approved                vendors for the specified activities. A list of such approved vendors                shall first be established as                follows: |
|------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1)                 | provide                the constituents of the Contractor with a list of the entities from                whom                Operator proposes to invite tender for contracts;                and |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)                 | add                to such list entities whom a Company requests for adding within fourteen                (14) days on receipt of such list; and |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)                 | obtain                approval of the Operating Committee. Such list shall thereafter be                maintained by the Operator. The Operating Committee may add to or                delete                vendors from such list. |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**APPENDIX-G**

**PERFORMA      OF BANK GUARANTEE TO BE PROVIDED**

**PURSUANT      TO ARTICLE 29**

| 1. | In                consideration of Government of India (hereinafter referred to as                “Government”) having entered into a Production Sharing Contract for the                block ________dated _________ (hereinafter referred to as “Contract”,                which expression shall include all the amendments agreed to between                the                Government and the Contractor, thereto), with M/s __________________                having its registered office at _____________ (hereinafter referred                to as                ___________, which expression unless repugnant to the context or                meaning                thereof include all its successors, administrators, executors and                assigns), which is a constituent of the Contractor, and the Government                have agreed that the ____________ Company shall furnish to Government                a                bank guarantee (hereinafter referred to as “Guarantee”) towards its                obligations as provided in the Contract for US$(for Foreign Companies)/US$                equivalent in Indian Rupees (for Indian Companies) for the performance                of                its obligations under the Contract. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.                 | We                __________(name of the Bank) registered under the Law of __________                and                having its registered office at _____________ (hereinafter referred                to as                “the Bank”, which expression shall unless repugnant to the context or                meaning thereof includes all its successors, administrators, executors                and                assigns) do hereby guarantee and undertake to pay immediately on                the fist                demand in writing and any/all money(s) to the extent of Indian Rupees/US$                _______(in figures) and (Indian Rupees/US$ ______ in words) without                any                demur, reservation, contest or protest and/or without any reference                to the                Company. Any such demand made by Government on the Bank by serving                a                written notice shall be conclusive and binding, without any proof,                on the                Bank as regards the amount due and payable, notwithstanding any dispute(s)                pending before any court, tribunal, arbitrator, sole expert, conciliator                or any other authority and/or any other matter or thing whatsoever,                as                liability under these presents being absolute and unequivocal. We                agree                that the Guarantee herein contained shall be irrevocable and shall                continue to be enforceable until it is discharged by Government in                writing. This Guarantee shall not be determined, discharged or affected                by                the liquidation, winding up, dissolution or insolvency of the Contractor                and shall remain valid, binding and operative against the                Bank. |
|------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | The                Bank also agree that Government at its option shall be entitled to                enforce                this Guarantee against the Bank as a principal debtor, in the first                instance, without proceeding against the ___________ Company and                notwithstanding any security or other guarantee that Government may                have                in relation to the ____________ Company’s                liabilities. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4. | The                Bank further agree that Government shall have fullest liberty without                our                consent and without affecting in any manner our obligations hereunder                to                vary any of the terms and conditions of the said Contract or to extend                time of performance by the said __________ Company from time to time                or to                postpone for any time or from time to time exercise of any of the                powers                vested in Government against the said ___________ Company and to                forebear                or enforce any of the terms and conditions relating to the said Contract                and we shall not be relieved from our liability by reason of any                such                variation, or extension being granted to the said __________ Company                or                for any forbearance, act or omission on the part of Government or                any                indulgence by Government to the said ___________ Company or any such                matter or thing whatsoever which under the law relating to sureties                would,                but for this provision, have effect of so relieving                us. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | The                Bank further agree that the Guarantee herein contained shall remain                in                full force during the period that is taken for the performance of                the                Contract and all dues of Government under or by virtue of this Contract                have been fully paid and its claim satisfied or discharged or till                Government discharges this Guarantee in writing, whichever is                earlier. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | This                Guarantee shall not be discharged by any change in our constitution,                in                the constitution of _________ Company or that of the                Contractor. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | The                Bank confirm that this Guarantee has been issued with observance                of                appropriate laws of the country of                issue. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | The                Bank also agree that this Guarantee shall be governed and construed                in                accordance with Indian Laws and subject to the exclusive jurisdiction                of                Indian courts at _________, India. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | Notwithstanding                any thing contained herein above, our liabilities under this Guarantee                is                limited to Indian Rupees/US$ ____________(in figures) Indian Rupees/US$                _______________ (in words) and our Guarantee shall remain in force                upto                and including sixty (60) days after the expiry date/extended date.                Any                claim under this Guarantee must be received before the expiry of                sixty                (60) days or before the expiry of sixty (60) days from the extended                date                if any. If no such claim has been received by us within sixty (60)                days                after the said date/extended date the Government’s right under this will                cease. However, if such a claim has been received by us within and                upto                sixty (60) days after the said date/extended date, all the Government’s                rights under this Guarantee shall be valid and shall not cease until                we                have satisfied that claim. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | In                witness whereof, the Bank through its authorised officers has set                its hand                and stamp on this _______ day of __________ 200_ at                ______________. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                seal of___________________ was hereto duly affixed by______________                this__________ day of ____________200_ in accordance with its bye-laws                and                this Guarantee was duly signed by_________________ and ________________                as                required by the said bye-laws. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ________________________                ________________________ |
|--------|------------------------------------------------------------------|

|   | Witness: |
|--------|----------|

----

**Appendix      H**

**Cost Estimates**

**Page      1**

----

**Appendix-H**

**Cost      Estimates**

**Page      2**

----

**Appendix      H**

**Cost      Estimates**

**Page      3**

----

**Appendix H**

**Cost Estimates**

**Page 4**

----

**Appendix H**

**Cost Estimates**

**Page 5**