----

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| ARTICLE | CONTENTS                                                                                      | PAGENO. |
|---------|-----------------------------------------------------------------------------------------------|---------|
|    | Preamble                                                                                      |    |
| 1.      | Definitions                                                                                   | 3       |
| 2.      | Duration                                                                                      | 12      |
| 3.      | Relinquishment                                                                                | 14      |
| 4.      | Work      Programme                                                                           | 15      |
| 5.      | Management      Committee                                                                     | 17      |
| 6.      | Operatorship,      Operating Agreement and Operating Committee                                | 20      |
| 7.      | General      Rights & Obligations of the Parties                                          | 21      |
| 8.      | Government      / Licensee Assistance                                                         | 24      |
| 9.      | Discovery,      Development and Production                                                    | 25      |
| 10.     | Unit      Development                                                                         | 29      |
| 11.     | Measurement      of Petroleum                                                                 | 30      |
| 12.     | Protection      of the Environment                                                            | 31      |
| 13.     | ONGC      Participation                                                                       | 35      |
| 14.     | Recovery      of Cost from Petroleum                                                          | 37      |
| 15.     | Production      Sharing of Petroleum                                                          | 40      |
| 16.     | Taxes,      Royalties, Rental etc.                                                            | 42      |
| 17.     | Custom      Duties                                                                            | 46      |
| 18.     | Domestic      Supply, Sale, Disposal and Export of Crude Oil and    Condensate                | 47      |
| 19.     | Valuation      of Petroleum                                                                   | 51      |
| 20.     | Currency      and Exchange Control Provisions                                                 | 54      |
| 21.     | Natural      Gas                                                                              | 56      |
| 22.     | Employment,      Training and Transfer of TechnologyEmployment,      Training and Transfer of | 60      |
| 23.     | Local      Goods and Services                                                                 | 62      |
| 24.     | Insurance      and indemnification                                                            | 63      |
| 25.     | Records,      Reports, Accounts and Audit                                                     | 64      |
| 26.     | Information,      Data Confidentiality, Inspection and Security                               | 66      |

| 27. | Title      to Petroleum, Data and Assets         | 69 |
|-----|--------------------------------------------------|----|
| 28. | Assignment      of Interest                      | 71 |
| 29. | Financial      and Performance Guarantees        | 73 |
| 30. | Termination      of Contract                     | 75 |
| 31. | Force      Majeure                               | 77 |
| 32. | Applicable      Law and Language of the Contract | 79 |
| 33. | Sole      Expert, Conciliation and Arbitration   | 80 |
| 34. | Entire      Agreement, Amendments and Waiver     | 82 |
| 35. | Certificates                                     | 83 |
| 36. | Notices                                          | 84 |

| APPENDICES      | CONTENTS                                                                                                                                                    | PAGENO. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|            |                                                                                                                                                        |    |
| Appendix      A | Description      of Contract Area                                                                                                                           | 86      |
| Appendix      B | Map      of Contract Area                                                                                                                                   | 87      |
| Appendix      C |     Accounting      Procedure to Production Sharing Contract                                                                       | 88      |
| Appendix      D |     Calculation      of the Post Tax Rate of Return and    Investment      Multiple for Production Sharing Purposes | 117     |
| Appendix      E |     Form      of Parent Financial and Performance Guarantee                                                                        | 119     |

----

| This      Contract is made this 12th      day of April, 2000 between: |
|-----------------------------------------------------------------------|

| 1. | The President of India,      acting through the Secretary, Ministry of Petroleum and Natural Gas      (hereinafter referred to as Government) of the FIRST    PART; |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | AND |
|--------|-----|

| 2. | Oil & Natural Gas      Corporation Ltd., a body corporate incorporated under the      Companies Act. 1956 having its registered office at Jeevan Bharti      Building      Tower II, 124, Indira Circus (Connaught Circus) New Delhi      (hereinafter referred to as ONGC) which expression shall include      its successors and such assigns as are permitted under Article 28 hereof,      of the SECOND      PART; |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | AND |
|--------|-----|

| 3. | GUJARAT STATE PETROLEUM      CORPORATION LTD., a body corporate incorporated under the      Companies Act 1956, having its registered      office at Block No. 15, 2nd Floor, Udyog Bhavan      Sector -11 Gandhinagar-382 O11 (hereinafter referred to as      GSPC), |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | AND |
|--------|-----|

| 4. | HINDUSTAN OIL EXPLORATION      COMPANY LTD., a body corporate incorporated under the      Companies Act, 1956, having its registered      office at Tandalja Road, Off: Old Padra Road, Baroda (hereinafter      referred to as HOEC) and GSPC and HOEC are collectively referred herein as      COMPANIES, which expression shall include their successors and such      assigns as are permitted under Article 28 hereof, of the THIRD    PART; |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | WITNESSETH: |
|--------|-------------|

|   | WHEREAS |
|--------|---------|

| (1) | The      Oil Fields (Regulation and Development) Act, 1948 (53 of 1948)      (hereinafter referred to as "the Act") and the Petroleum and Natural Gas      Rules, 1959, made thereunder (hereinafter referred to as "the Rules") make      provision inter alia for the regulation of Petroleum Operations and the      grant of licences and leases for exploration and development of Petroleum      in India; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The      Rules provide for the grant of petroleum exploration licences and      petroleum mining leases in respect of land vested in a State Government by      that State Government with the previous approval of the Central      Government, and ONGC is being duly granted an exploration licence to carry      out Exploration Operations in association with other companies in that      area onshore identified as Block CB-ON/2 and more particularly described      in Appendix A; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The      Rules provide for an agreement between the Government and the Licensee      with respect to additional terms and conditions in regard to the licence      or lease; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (4) | The      Government desires that the Petroleum rcsources which may exist in lndia      be discovered and exploited with the utmost expedition in the overall      interest of India in accordance with good petroleum industry      practices; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | COMPANIES      have represented that 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 good international petroleum industry      practices and will provide guarantees as required in Article 29 for the      due performancc of its undertakingshereunder; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | As      a result of discussions between representatives of the Government and      COMPANIES on the proposal of COMPANIES, the Government and ONGC have      agreed to enter into this Contract with COMPANIES with respect to the said      area referred to in paragraph (2) above on the terms and conditions herein      set forth. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | The      initial undivided percentage Participating Interest of each of the      Companies in the Contract shall be asfollows: |
|-----|--------------------------------------------------------------------------------------------------------------------------------|

| GSPC : | 50      % |
|-------------|-----------|

| HOEC      : | 50      % |
|-------------|-----------|

----

| l.1 | "Accounting      Procedure" means the principles and procedures of accounting set out in      Appendix C. |
|-----|-----------------------------------------------------------------------------------------------------------|

| 1.2 | "Affiliate"      means a company that directly or indirectly controls or is controlled by a      Party to this Contract or a company which directly or indirectly controls      or is controlled by a company which controls a Party to this Contract, it      being understood that "control" means ownership by one company of more      than fifty percent (50%) of the voting securities of the other company, or      the power to direct, administer and dictate policies of the other company      even where the voting securities held by such compmy exercising such      effective control in that other company is less than fifty percent (50%)      and the term "controlled" shall have a corresponding    meaning. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.3 | '"Appendix'      means an Appendix attached to this Contract and made a part      thereof. |
|-----|--------------------------------------------------------------------------------------------|

| 1.4 | "Appraisal      Programme" means a programme, approved by the Management Committee,      carried out following a Discovery of Petroleum in the Contract Area for      the purpose of delineating the Petroleum Reservoirs to which the Discovery      relates in terms of thickness and lateral extent and determining the      characteristics thereof and the quantity of recoverable Petroleum      therein. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.5 | "Appraisal      Well" means a Well drilled pursuant to an approved Appraisal      Programme. |
|-----|----------------------------------------------------------------------------------------------|

| 1.6 | "Arms      Length Sales" means sales made freely in the open international market, in      freely convertible currencies, between willing and unrelated sellers and      buyers and in which such buyers and sellers have no contractual or other      relationship, directly or indirectly, or any common or joint interest as      is reasonably likely to influence selling prices and shall, inter alia,      exclude sales (whether direct or indirect, through brokers or otherwise)      involving Affiliates, sales between entities comprising the Contractor,      sales between governments and governmentowned entities, counter trades,      restricted or distress sales, sales involving barter arrangements and      generally any transactions motivated in whole or in part by considerations      other than normal commercialpractices. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.7 | "Article"      means an article of this Contract and the term "Articles" means more than      one Article. |
|-----|------------------------------------------------------------------------------------------------------------|

----

| 1.8 | "Associated      Natural Gas" or "ANG" means Natural Gas occurring in association with      Crude Oil either as free gas or in solution, if such Crude Oil can by      itself be commercially produced. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.9 | "Barrel"      means a quantity or unit equal to 158.9074 litres (forty two (42) United      States gallons) liquid measure at a temperature of sixty (60) degrees      Fahrenheit (15.56 degrees Centigrade) under one atmosphere pressure (14.7      p.s.i.a.). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.10 | "Basement"      means any igneous or metamorphic rock, or rocks or any stratum of such      nature, in and below which the geological structure or physical      characteristics of the rock sequence do not have the properties necessary      for the accumulation of Petroleum in commercial quantities and which      reflects the maximum depth at which any such accumulation can be      reasonably expected in accordance with the knowledge generally accepted in      the international petroleumindustry. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.11 | "Calendar      Month" means any of the twelve months of the Calendar  Year. |
|------|-----------------------------------------------------------------------------|

| 1.12 | "Calendar      Quarter" means a period of three consecutive Calendar Months commencing on      the first day of January, April, July and October of each Calendar      Year. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.13 | "Calendar      Year" means a period of twelve consecutive Months according to the      Gregorian calendar, commencing with the first day of January and ending      with the thirty-first day ofDecember. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.14 | "Commercial      Discovery" means a Discovery of Petroleum reserves which, when produced,      are likely to yield a reasonable profit on the funds invested in Petroleum      Operations, after deduction of Contract Costs, and which has been declared      a Commercial Discovery in accordance with the provisions of Article 9 and      or Article 21, after consideration of all pertinent operating and      financial data such as recoverable reserves, sustainable production      levels, estimated development and production expenditures, prevailing      prices and other relevant technical and economic factors according to      generally accepted practices in the international petroleum      industry. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.15 | "Commercial      Production" means production of Crude Oil or Natural Gas or both from a      Development Area and delivery of the same at the relevant Delivery Point      under a programme of regular production and  sale. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.16 | "Company"      for the purpose of this Contract means a company (excluding the Nominee)      which is a Party to this Contract and, where more than one Company is a      Party to the Contract, the term "Companies" shall mean all such Companies      (excluding the Nominee)collectively. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.17 | "Condensate"      means those low vapour pressure hydrocarbons obtained from Natural Gas      through condensation or extraction and solely refers to those hydrocarbons      that are liquid at normal surface temperature and pressure conditions      (provided that in the event Condensate is produced from an Oil Field in      the Development Area and is segregated and transported separately to the      Delivery Point, then the provisions of this Contract shall apply to such      Condensate as if it were CrudeOil). |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.18 | "Contract"      means this agreement and the Appendices attached hereto and made a part      hereof and any amendments made thereto pursuant to terms      hereof. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.19 | "Contract      Area" means, on the Effcctivc Date, the area described in Appendix "A" and      delineated on the map attached as Appendix "B", or any portion of the said      area remaining after relinquishment or surrender from time to time      pursuant to the terms of thisContract. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.20 | "Contract      Costs" means Exploration Costs, Development Costs and Production      Costs. |
|------|---------------------------------------------------------------------------------------------|

| 1.21 | "Contract      Year" means a period of twelve consecutive months counted from the      Effectivc Date or from the anniversary of the Effective    Date. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.22 | "Contractor"      means: |
|------|--------------------------|

|   | (a) | prior      to exercise by Government of its option to participate pursuant to Article      13, the Companies, and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------|

|   | (b) | in      the event that Govenunent exercises its option to participate pursuant to      Article 13, the Companies and the Nominee  collectively. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.23 | "Cost      Petroleum" means the portion of the total Petroleum produced and saved      from any Development Area which the Contractor is entitled to take in      particular period for the recovery of Contract Cost as provided in Article      14. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.24 | "Crude      Oil" means crude mineral oil, asphalt, ozokerite and all kinds of      hydrocarbons and bitumens, both in solid and in liquid form, in their      natural state including distillate or obtained from Natural Gas by      condensation or extraction, including distillate and Condensate when      commingled with the heavier hydrocarbons and delivered as a blend at the      Delivery Point but excluding verified Natural  Gas. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.25 | "Delivery      Point" means, except as otherwise herein provided or as may be otherwise      agreed between the Government and the Contractor, the point at which      Petroleum reaches the outlet flange of the delivery facility, either      offshore or onshore and different Delivery Points may be established for      purposes of sales to the Government and export  sales. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.26 | "Development      Area" means that part of the Contract Area which encompasses one or more      Commercial Discovery(ies) and any additional area within the Contract Area      that may be required for proper development of such Commercial      Discovery(ies) and establish as such in accordance with the provision of      the Contract.  It is hereby expressly understood that      Development Area can contain one or more Commercial Discovery(ies) only if      the same set of constituents of the Contractor have elected to participate      in the development of such Commercial Discovery (ies) proposed to be      located in the same DevelopmentArea. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.27 | "Development      Costs" means those costs and expenditures incurred in carrying out      Development Operations, as classified and defined in Section 2 of the      Accounting Procedure and allowed to be recovered in terms of Section 3      hereof. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.28 | "Development      Operations" means operations conducted in accordance with the Development      Plan and shall include the purchase, shipment or storage of equipment ard      materials used in developing Petroleum accumulations, the drilling,      completion and testing of Dcvelopmcnt Wells, the drilling and completion      of Wells for Gas or water injection, the laying of gathering lines, the      installation of offshore platforms and installations, the installation of      separators, tankage, pumps, artificial lift and other producing and      injection facilities required to produce, process and transport Petroleum      into main Oil storage or Gas processing facilities, either onshore or      offshore, including the laying of pipelines within or outside the Contract      Area, storage and Delivery Point(s), the installation of said storage or      Gas processing facilities, the installation of export and loading      facilities and other facilities required for the development and      production of the said Petroleum accumulations and for the delivery of      Petroleum at the Delivery Point and also including incidental operations      not specifically referred to herein as required for the most efficient and      economic development and production of the said Petroleum accumulations in      accordance with good petroleum industry  practices. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.29 | "Development      Plan" means a plan submitted by the Contractor containing proposals      required under Article 9 and/or Article 21 for the development of an Oil      Field or Gas Field which has been approved by the Management Committee or      Goverrment. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.30 | "Development      Well" means a Well drilled, deepened or completed after the date of      approval of the Development Plan pursuant to Development Operations or      Production Operations for the purposes of producing Petroleum, increasing      production, sustaining production or accelerating extraction of Petroleum      including production Wells, injection Wells and dry  Wells. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.31 | "Discovery"      means the finding, during Exploration Operations, of a deposit of      Petroleum not previously known to have existed, which can be recovered at      the surface in a flow measurable by conventional petroleum industry      testing methods. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.32 | "Discovery      Area" means that part of the Contract Area which, based upon Discovery and      results obtained from a Well or Wells drilled and other such subsurface      information in such part, both the Licensee and the Contractor are of the      opinion that Petroleum exists and is likely to be produced in commercial      quantities. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.33 | "Effective      Date" means the later of the Contract execution date and the date of issue      of the Petroleum exploration license by the State      Government(s). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.34 | "Environmental      Damage" means soil erosion, removal of vegetation, destruction of      wildlife, pollution of groundwater or surface water, land contamination,      air pollution, noise pollution, bush fire, disruption to water supplies,      to natural drainage or natural flow of rivers or streams, damage to      archaeological, palaeontological and cultural sites and shall include any      damage or injury to, or destruction of soil or water in their physical      aspects; together  with vegetation  associated      therewith, aquatic or  terrestrial  mammals, |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.35 | "Exploration      Costs" means those costs and expenditures incurred in carrying out      Exploration Operations, as classified and defined in Section 2 of the      Accounting Procedure and allowed to be recovered in terms of Section 3      thereof. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.36 | "Exploration      Operations" means operations conducted in the Contract Area Pursuant to      this Contract in searching for Petroleum and in the course of an Appraisal      Programme and shall include but not be limited to aerial, geological,      geophysical, geochemical, palaeontological, palynological, topographical      and seismic surveys, analysis, studies and their interpretation,      investigations relating to the subsurface geology including structure test      drilling, stratigraphic test drilling, drilling of Exploration Wells and      Appraisal Wells and other related activities such as surveying, drill site      preparation and all work necessarily connected therewith that is conducted      in connection with Petroleumexploration. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.37 | "Exploration      Period" means a period not exceeding seven years commencing from the      Effective Date during which Exploration Operations may be carried out by      the Contractor as provided in Article 2hereof. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.38 | "Exploration      Well" means a Well drilled for the purpose of searching for Petroleum      accumulations on any geological entity (be it of structural,      stratigraphic, facies or pressure nature) to at least a depth or      stratigraphic level specified in the Work  Programme. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.39 | "Field"      means an Oil Field or a Gas Field in respect of which a Development Plan      has been duly approved in accordance with Article 9 and/or Article 21      hereof. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.40 | "Financial      Year" means the period from the first day of April to the thirty-first day      of March of the following CalendarYear. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------|

| 1.41 | "Foreign      Company" means a Company within the meaning of Section 591 of the      Companies Act, 1956. |
|------|-----------------------------------------------------------------------------------------------------------|

| 1.42 | "Gas"      means Natural Gas. |
|------|-------------------------------|

| 1.43 | "Gas      Field" means an area within the Contract Area consisting of a single Gas      Reservoir or multiple Gas Reservoirs all grouped on or related to the same      individual geological structure or stratigraphic conditions, designated by      agreement between the Companies and the Licensee and approved by the      Management Committee (to include the maximum area of potential      productivity in the Contract Area in one or more simple geometric shapes      in respect of which a Commercial Discovery has been declared and a      Development Plan has been approved in accordance with Article 21      hereof. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.44 | "Investment"      shall have the meaning assigned in paragraph 3 of Appendix      `D'. |
|------|----------------------------------------------------------------------------------------|

| 1.45 | "Investment      Multiple" means, in relation to any Development Area, the ratio of      accumulated  Net  Cash Income  from  the       Development  Area to   accumulated |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.46 | "LIBOR"      means the London Inter-Bank Offer Rate for six-month deposits of United      States Dollars as quoted by the London office of the Bank of America (or      such other Bank as the Parties may agree) for the day or days in      question. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.47 | "Licensee"      means any person or body corporate to whom a licence is issued under the      Petroleum and Natural Gas Rules 1959, or the purpose of carrying out      Petroleum Operations in the Contract Area in association with the      Companies. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.48 | "Management      Committee" means the committee constituted pursuant to Article 5      hereof. |
|------|------------------------------------------------------------------------------------------------|

| 1.49 | "Month"      means Calendar Month. |
|------|------------------------------------|

| 1.50 | "Natural      Gas" means wet gas, all other gaseous hydrocarbons, and all substances      contained therein, including sulphur and helium, which are produced from      Oil or Gas Wells, excluding those condensed or extracted liquid      hydrocarbons that are liquid at normal temperature and pressure      conditions, and including the residue gas remaining after the condensation      or extraction of liquid hydrocarbons fromGas. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.51 | "Net      Cash Income" shall have the meaning assigned in paragraph 2 of Appendix      'D'. |
|------|---------------------------------------------------------------------------------------------|

| 1.52 | "Nominee"      means a government company or a body corporate appointed for the purpose      of acquiring Government's Participating Interest pursuant to Article      13. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.53 | "Non      Associated Natural Gas" or "NANG" means Natural Gas which is produced      either without association with Crude Oil or in association with Crude Oil      which by itself cannot be commerciallyproduced. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.54 | "Oil"      means "Crude Oil". |
|------|-------------------------------|

| 1.55 | "Oil      Field" means an area within the Contract Area consisting of a single Oil      Reservoir or multiple Oil Reservoirs all grouped on or related to the same      individual geological structure, or stratigraphic conditions, designated      by agreement between the Companies and the Licensee and approved by the      Management Committee (to include the maximum area of potential      productivity in the Contract Area in one or more simple geometric shapes)      in respect of which a Commercial Discovery has been declared and a      Development Plan has been approved in accordance with Article 9 hereof and      a reference to an Oil Field shall include a reference to the production of      Associated Natural Gas from that Oil Field as if such Associated Natural      Gas was being produced from a separateField. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.56 | "Operating      Agreement" means the Operating Agreement entered into by the Companies and      the Licensee in accordance with Article 6, with respect to the conduct of      Petroleum Operations. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.57 | "Operating      Committee" means the committee established by that name in the Operating      Agreement pursuant to Article 6. |
|------|--------------------------------------------------------------------------------------------------------------------------------|

----

| 1.58 | "Operator"      means one of the Parties so designated under Article  6. |
|------|--------------------------------------------------------------------------|

| 1.59 | "Participating      Interest" means a Party's percentage of participation, as it may exist at      any given time, in the Contractor's rights and obligations under this      Contract. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.60 | "Partics"      means the parties signatory to this Contract including their successors      and permitted assigns under this Contract and the term "Party" means any      of the Parties. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.61 | "Petroleum"      means Crude Oil, Condcnsate and Natural Gas existing in their natural      condition. |
|------|--------------------------------------------------------------------------------------------------------|

| 1.62 | "Petroleum      Operations" means, as the context may require, Exploration Operations,      Development Operations or Production Operations or any combination of two      or more of such operations, including construction, operation and      maintenance of all necessary facilities, plugging and abandonment of      Wells, environmental protection, transportation, storage, sale or      disposition of Petroleum to the Delivery Point, Site Restoration and all      other incidental operations or activities as may be    necessary. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.63 | "Production      Costs" means those costs and expenditures incurred in carrying out      Production Operations as classified and defined in Section 2 of the      Accounting Procedure and allowed to be recovered in terms of Section 3      thereof. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.64 | "Production      Operations" means all operations conducted for the purpose of producing      Petroleum from a Development Area after the commencement of prMuction from      the Development Area including the operation and maintenance of all      necessary facilities thereof. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.65      "Profit Petroleum" means all Petroleum produced and saved from any      Development Area in a particular period as reduced by Cost Petroleum, and      calculated as provided in Article15. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.67 | "Quarter"      means Calendar Quarter. |
|------|----------------------------------------|

| 1.68 | "Reservoir"      means a naturally occurring discrete accumulation of      Petroleum. |
|------|---------------------------------------------------------------------------------------|

| 1.69 | "Section"      means a section of the AccountingProcedure. |
|------|------------------------------------------------------------|

| 1.70 | "Self-sufficiency"      means, in relation to any Year, that the volume of Crude Oil and Crude Oil      equivalent of Petroleum products exported from India during that Year      either equals or exceeds the volume of Crude Oil and Crude Oil equivalent      of Petroleum products imported into India during the same      Year. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.71 | "Site      Restoration" means all activities required to return a site to its natural      state or to render a site compatible with its intended after usc (to the      extent reasonable) after cessation of Petroleum Operations in relation      thereto and shall include, where appropriate, proper abandonment of wells      or other facilities, removal of equipment, structures and debris,      establishment of compatible contours and drainage, replacement of top      soil, revegetation, slope stabilization, infilling of excavations or any      other appropriate actions in thecircumstances. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.72 | "Statement"      or "Statements" refers to the statements rquired to be furnished in      accordance with Appendix C of thisContract. |
|------|---------------------------------------------------------------------------------------------------------------------------------------|

| 1.73 | "Subcontractor"      means any company or person contracted by the Operator to provide goods or      services with respect to PetroleumOperations. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.74 | "Well"      means a bore-hole, made by drilling in the course of Petroleum Operations,      but does not include a seismic shothole. |
|------|--------------------------------------------------------------------------------------------------------------------------------------|

| 1.75 | "Work      Programme" means all the plans formulated for the performance of the      Petroleum Operations. |
|------|------------------------------------------------------------------------------------------------------------|

| 1.76 | "Year"      means a Financial Year. |
|------|-------------------------------------|

----

| ARTICLE      - 2 |
|------------------|

| DURATION |
|----------|

| 2.1 | The      term of this Contract, subject to the terms hereof and the applicable law,      shall be for a period of twenty five (25) years from the Effcctive Date      unless the Contract is terminated earlier in accordance with its terms.      The period of Contract may be extended for a further period of five (5)      years, on same terms and conditions as set out in this agreement upon      mutual agreement by the Parties.  Provided however, that in the      event of Commercial Production of Non Associated Natural Gas, the Contract      may by mutual agreement between Parties be extended for a period upto but      not exceeding thirty five (35) years from the Effective    Date. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | The      Exploration Period shall begin on the Effective Date and shall consist of      three (3) exploration phases for a total period not exceeding seven (7)      consecutive Contract Years unless extended pursuant to the terms of this      Contract. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3 | Except      as otherwise provided in this Contract, the term of the first exploration      phase shall be one and one half (1.5) consecutive Contract Years      (hereinafter referred to as PhaseI). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4 | Except      as otherwise provided in this Contract, the term of the second exploration      phase shall be three (3) consecutive Contract Years from the end of Phase      I (hereinafter referred to as PhaseII). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.5 | Except      as otherwise provided in this Contract, the term of the third exploration      phase shall be two and one half (2.5) consecutive Contract Years from the      end of Phase II (hereinafter referred to as Phase  III). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.6 | At      the expiry of any exploration phase of the Exploration Period, provided      that the Contractor has completed the minimum agreed Work Programme for      that exploration phase, the Contractor shall have the option, exercisable      by giving written notice to the Government at least thirty (30) days prior      to the expiry of the relevant phase,either: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | to      terminate the Contract without obligation in respect of any subsequent      phases of the Exploration Period;or |
|-----|-------------------------------------------------------------------------------------------------------------------------|

| (b) | to      proceed to the next exploration phase on presentation with the notice      referred to above of the relevant guarantee as provided for in Article 29;      or |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | 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 Discovery in accordance with the terms of      this Contract. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2.7 | If,      at the end of any exploration phase, drilling or testing operations are in      progress on a Well, included in a minimum Work Programme, and the      exploration phase expires, such exploration phase may, subject to prior      approval of Management Committee be extended for a period not cxceeding      six (6) months and the period of such extension will be subtracted from      the period of the next succeeding exploration  phase. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.8 | If,      at the end of any exploration phase, drilling or testing operations are in      progress on a Well not included in the minimum Work Programme, such      exploration phase may be extended for a period not exceeding six (6)      months provided that the minimum work commitment for such phase has been      completed or the Licensee gives its consent to the said extension. Such      extension period shall be subtracted from the next succeeding exploration      phase.  In the event of an extension as provided for herein, the      notice referred to in Article 2.6 shall be given at least thirty (30) days      prior to the expiry of the relevantextension. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.9 | Where      sufficient time is not available prior to the expiry of the Exploration      Period to complete the appraisal work after the Discovery, at the request      of the Contractor, the Government shall extend the Exploration Period for      such period, as may be mutually determined by the Licensee and the      Contractor, for the appraisal work to be carried out and for the      Management Committee, the Licensee, and the Contractor to comply with the      provisions of Article 9 and Article 21, provided that the period of      extension shall not exceed (30) thirty contract  months. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.10 | If      no Commercial Discovery has been made in the Contract Area by the end of      the Exploration Period, the Contract shall  terminate. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      - 3 |
|------------------|

| RELINQUISHMENT |
|----------------|

| 3.1 | At      the end of Phase I of the Exploration Period, in the event that the      Contractor elects, pursuant to Article 2.6, to continue Exploration      Operations in the Contract Area in Phase II, the Contractor shall retain      upto seventy five percent (75%) of the original Contract Area including      any Development Area and Discovery Area in not more than three (3) areas      of simple geometrical shapes, and relinquish the balance of the Contract      Area prior to thc commencement of PhaseII. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | At      the end of Phase II of the Exploration period, in the event the Contractor      elects, pursuant to Article 2.6, to continue Exploration Operations in the      Contract Area in Phase III, the Contractor shall retain twenty five      percent (25%) of the original Contract Area, including any Development      Area and Discovery Area in not more than three (3) areas of simple      geometrical shapes and relinquish the balance of the Contract Area prior      to the commencement of Phase III.  However, the Government shall      agree for retaining fifty percent (50%) of the Contract Area, if the same      is approved by ManagementCommittee. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3 | At      the end of Phase III of the Exploration Period, the Contractor shall      retain only Development Areas and Discovery  Areas. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

| 3.4 | If      the Contractor exercises the option provided for in paragraph (c) of      Article 2.6, the Contractor shall, after any Field and Development Area      have been designated, relinquish all of the Contract Area not included      within the said Field and DevelopmentArea. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.5 | As      and when the Contract is terminated under the provisions of Article 2 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. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.6 | Relinquishment      of all or part of the Contract Areas 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 prior to the      date of such relinquishment ortermination. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.7 | Subject      to Article 12.9, the liability of the Contractor in respect of claims      arising out of any act of negligence, commission, or ommission, during the      course of Petroleum Operations in a Contract Area, shall be limited for      the period between the Effective Date and relinquishment of such area. The      Contractor shall not be liable for any claims in respect of any part of      the block arising out of a liability allegedly incurred subsequent to the      date of relinquishment of thatpart. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      - 4 |
|------------------|

| WORK      PROGRAMME |
|---------------------|

| 4.1 | The      Contractor shall commence Petroleum Operations not later than six (6)      months from the Effective Date. |
|-----|---------------------------------------------------------------------------------------------------------------------|

| 4.2 | During      the currency of Phase I, as per Article 2.3, the Contractor shall complete      the following Work Programme: |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| (a) | detailed      study of the seismic data, identification of the possible structural,      stratigraphic combinationprospects. |
|-----|------------------------------------------------------------------------------------------------------------------------------|

| (b) | a      programme consisting of the special re-processing and interpretation of      seven hundred fifty (750) line kilomctres of seismic data in relation to      the exploration objectives: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3 | During      the currency of Phase II, as per Article 2.4, the Contractor shall      complete the following WorkProgramme: |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| (a) | One      (1) Exploration Well shall be drilled to at least one of the following      depths |
|-----|---------------------------------------------------------------------------------------------|

|   | (i) | to      depth of 3000 m: or |
|--------|-----|-----------------------------|

|   | (ii) | to      the top of Deccan Trap Formation:or |
|--------|------|---------------------------------------------|

|   | (iii) | that      point below 3000 m at which further drilling becomes impractical due to      geological conditions encountered and drilling would be abandoned by a      reasonable and prudent Operator in the same or similar      circumstances. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | During      the currency of Phase III, as per Article 2.5, the Contractor shall      complete the following WorkProgramme: |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| (a) | Two      (2) Exploration Wells shall be drilled to at least one of the following      depths |
|-----|----------------------------------------------------------------------------------------------|

|   | (i) | to      depth of 3000 m: or |
|--------|-----|-----------------------------|

|   | (ii) | to      the top of Deccan Trap Formation:or |
|--------|------|---------------------------------------------|

|   | (iii) | that      point below 3000 m at which further drilling becomes impractical due to      geological conditions encountered and drilling would be abandoned by a      reasonable and prudent Operator in the same or similar      circumstances. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5 | The      actual depth objective for each of the Wells shall be determined by the      Contractor in the light of the advice, if any, of the Management Committee      before the commencement of the drilling.  Each Well which      reaches the geological objective for which the depth objective was      determined shall be deemed to have been drilled to the depth objective or      to actual total depth. whichever is greater. The Contractor shall ensure      that all relevant subsurface, geological, geochemical and geophysical      information necessary for the attainment of the exploration objectives in      accordance with good oilfield practices is obtained during exploratory      drilling. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.6 | If      the depth/geological objective of the Well is not achieved for any reason,      in that case, a substitute Well shall be drilled, of the same      specifications as stipulated in Articles 4.2, 4.3 and  4.4. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.7 | The      Contractor undertakes to complete the minimum Work Programme in accordance      with Articles 4.2, 4.3, 4.4 and 4.6, as the case may be. In the event that      the Contractor fails to fulfil the said minimum Work Programme by the end      of the relevant exploration phase, the Companies shall pay to the Licensee      within sixty (60) days following the end of the relevant phase, an amount      which, when evaluated in terms of the minimum Work Programme specified for      the relevant phase, is equal to the amount which will be required to      complete the said minimum Work Programme, in accordance with sound      petroleum industry practices, reduced by the arnount of the bank guarantee      referred to in Article 29.1 (a). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.8 | If      the minimum Work Programme commitment for the Phase III of exploration 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,      subject to approval of the ManagementCommittee. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.9 | In      the event that the Contractor has carried out work in excess of the      minimum Work Programme specified in Articles 4.2 or 4.3, as the case may      be, the excess work done shall be set off against the minimum Work      Programme and the corresponding budgeted expenditure for the following      exploration phase. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.10 | The      Companies shall furnish to the Government an irrevocable unconditional      letter of guarantee, in respect of each of their Participating Interests,      from a reputable bank for a sum equal to thirty five percent (35%) of      estimated expenditure for each Year of the Exploration Period as provided      in Article 29, in respect of the actual Work Programme obligations      specified in Article 4 for the relevant exploration  phase. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.11 | As      soon as possible after the Effective Date, in respect of the period ending      with the last day of the Year in which the Effective Date falls and      thereafter ninety (90) days before commencement of each following Year,      the Contractor shall submit to the Management Committee, through the      Operating Committee, the Work Programmes and budgets relating to Petroleum      Operations to be carried out during the relevant phase, or as the case may      be, the ensuing Year. The Yearly Work Programme and budget for the      Exploration Period shall include the minimum Work Programme specified in      this Article-4. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.12. | The      Contractor may propose amendments to the details of an approved Work      Programme and budget in the light of then existing circumstances and shall      submit to the Management Committee, through the Operating Committee,      modifications or revisions to the Work Programme and budgets referred to      in Article 4.11. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.13 | Work      Programmes and budgets related to Development Operations and Production      Operations shall be submitted as provided in Article 9 and Article      21. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | ARTICLE      - 5 |
|--------|------------------|

| MANAGEMENT      COMMITTEE |
|---------------------------|

| 5.1 | For      the purpose of proper performance or Petroleum Operations under      the  provisions of this Contract, there shall be constituted,      within thirty (30) days from the Effective Date of the Contract, a      committee to be called the ManagementCommittee. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | The      Management Committee shall consist of four (4) members, two (2) nominated      by and representing Government and the Licensee taken together and two (2)      members nominated by and representing the Companies. As and when      necessary, the size of the Management Committee mav be increased hy mutual      agreement between the Parties. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3 | A      representative of the Licensee shall be designated as the Chairman of the      Management Committee and a Deputy Chairman shall be designated from      amongst the representatives of the Government or the    Licensee. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.4 | Government,      the Licensee and the Companies may nominate alternate members with full      authority to act in the absence and on behalf of the members nominated      under Article 5.2 and may, at any time, nominate another member or      alternate member to replace any member nominated earlier by notice to      other members of the ManagementCommittee. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.5 | The      Management Committee shall review and have advisory functions in the      following matters: |
|-----|-------------------------------------------------------------------------------------------------------|

|   | (a) | the      annual Work Programme and budget proposed during the Exploration Period      and any revisions or modifications thereto submitted to it by the Operator      through the Operating Committee: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | proposals      for surrender or relinquishment of any part of the Contract Area by the      Contractor: |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | (c) | any      other matter required by the terms of this Contract to be submitted to it      for review or advice: |
|--------|-----|---------------------------------------------------------------------------------------------------------------|

|   | (d) | any      other matter which the Contractor or the Operating Committee decides to      submit for review or advice including matters concerning inter­party      relationships: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | any      other matter which requires review by the Management Committee under this      Contract. |
|--------|-----|---------------------------------------------------------------------------------------------------|

| 5.6 | The      following matters shall be submitted to the Management Committee for      approval: |
|-----|----------------------------------------------------------------------------------------------|

|   | (a) | annual      Work Programmes and budgets and any modifications or revisions thereto, as      proposed by the Operating Committee, for Development Operations and      Production Operations; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | proposals      for an Appraisal Programme, the declaration of a Discovery as a Commercial      Discovery and the: approval of Developmen: Plans as may  be |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | delineation      of a Field and a Development Area. |
|--------|-----|-----------------------------------------------------|

|   | (d) | appointment      of auditors: |
|--------|-----|-------------------------------|

|   | (e) | collaboration      with licensees or contractors of otherareas: |
|--------|-----|-----------------------------------------------------------------|

|   | (f) | claims      or settlement of claims for or on behalf of or against the Contractor in      excess of limits specified in the Operating Agreement or fixed by the      Management Committee from time totime: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | any      proposed mortgage, charge or encumbrance on petroleum assets, petroleum      reserves or production ofPetroleum; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

|   | (h) | any      other matter required by the terms of this Contract to be submitted for      the approval of the ManagementCommittee; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | any      other matter which the Contractor or the Operating Committee decides to      submit to it; |
|--------|-----|-----------------------------------------------------------------------------------------------------|

| 5.7 | The      Management Committee shall take decisions in respect of matters submitted      to it for approval and indicate the same with utmost expedition to the      Parties.  However, where prior approval of the Government is      required under this Contract or any applicable Law (including rules and      regulations). the Management Committee shall obtain such approval as      expeditiously as possible. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.8 | The      Management Committee shall meet at least once in every six months or more      frequently at the request of any member. The Chairman shall convene each      meeting by notifying the members at least 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 meetings.      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      Chairman at least ten (10) days prior to the date fixed for the meeting.      The Chairman shall foward the agenda to the members at least nine (9) 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. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.9 | The      Chairman or Deputy Chairman, as may be the case, shall ordinarily preside      over the meetings of the Management Committee and in their absence another      member nominated by the Chairman shall preside over the      meetings. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.10 | The      Chairman shall appoint one of the members nominated by the Companies as      Secretary to the Management Committee with responsibility, 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 copies of      the minutes not later than twenty eight (28) days after the date of the      meeting. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.11 | Within      twenty one (21) days of the receipt of the minutes of a meeting, members       shall notify the  Chairman and the  other members of their      approval of |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.12 | The      meetings of the Management Committee shall ordinarily be held in New Delhi      or at any other place mutually agreed to between. the members of the      Management Committee. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.13 | All      matters requiring the approval of the Management Committee shall he      approved by unanimous vote of all the members of the Management      Committee. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.14 | A      member of the Management Committee not present at a meeting may vote on      any matter on the agenda in such meetinghy: |
|------|---------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | appointing      in writing, including by telex, cable or facsimile, another member of the      Management Committee as his proxy for that meeting  or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | giving      notice of such vote to the Chairman prior to the submission of such matter      for vote at such meeting. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------|

| 5.15 | The      Management Committee 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. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | ARTICLE      - 6 |
|--------|------------------|

| OPERATORSHIP,      OPERATING AGREEMENT |
|----------------------------------------|

| AND OPERATING      COMMITTEE |
|------------------------------|

| 6.1 | Except      as provided in Article 6.2 and subject to the terms of the Operating      Agreement, Guiarat State Petroleum Corporation Ltd. (GSPC) shall be the      Operator for the Exploration Operations, Development Operations and      Production Operations within the Contract Area during the term of the      Contract. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3 | In      respect of each Development Area in which the Licensee is participating,      the Licensee shall have the option to become the Operator of the      Development Area at any time after ten years have elapsed from the date of      commencement of Commercial Production from that Development      Area. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3 | In      the event Licensee elects to exercise the option specified in Article 6.2,      it shall so notify the Companies in writing at least one hundred and      eighty (180) days prior to the date from which the Licensee would like to      assume the operatorship and the transfer of operatorship shall be effected      in accordance with the provisions of the Operating    Agreement |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.4 | Except      as provided in Article 6.2, no change in operatorship shall be effected      without the consent of the Licensee & Management Committee and such      consent shall not be unreasonablywithheld. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.5 | The      operating functions required of the Contractor under this Contract shall      be performed by the Operator on behalf of all constituents of the      Contractor subject to, and in accordance with, the terms and provisions of      this Contract and generally accepted international petroleum industry      practice. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.6 | On      the Contract execution date, the Companies and the Licensee shall execute      a mutually agreed Operating Agreement.  The said agreement shall      be consistent with the provisions of this Contract and shall provide for,      among other things: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | The      appointment, resignation, removal and responsibilities of the      Operator; |
|-----|---------------------------------------------------------------------------------------|

| (b) | The      establishment of an Operating Committee comprising of an agreed number of      representatives of the Licensee and the Companies respectively, chaired by      a representative of the Company acting as  Operator; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| ARTICLE      - 7 |
|------------------|

| GENERAL RIGHTS AND      OBLIGATIONS OF THE PARTIES |
|----------------------------------------------------|

| 7.1 | Subject      to the provisions of this Contract, the Contractor shall have the      following rights: |
|-----|-------------------------------------------------------------------------------------------------------|

| (a) | the      exclusive right to carry out Petroleum Operations excluding the right for      exploration and exploitation of Coal Bed Methane in the Contract Area and      to recover costs and expenses as provided in this  Contract; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the      exclusive right to use, free of charge, such quantities of Petrolcurn      produced from any Development Area as are reasonably required for      conducting Petroleum Operations in the Contract area in accordance with      generally accepted practices in the international petroleum industry. The      quantities of Petroleum used for purpose of conducting Petroleum      Operations in the Contract Area shall be subject to  audit. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | the      right to lay pipelines, build roads. construct bridges, ferrics,      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 technical data, seismic and well information, maps,      samples etc. in or relating to the Contract Area as on the Effective Date,      free of charge. subject to nominal copying/reproduction costs for further      Petroleum Operations. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 7.2 | The      Government reserves the right to itself, or to grant to the Licensee or      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, the Licensee or 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      Government as the case may be, shall use best efforts to ensure that      operations carried out do not obstruct or unduly interfere with Petroleum      Operations in the Contract Area. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3 | The      Contractor shall: |
|-----|----------------------------|

| (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 and      Subcontractors; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

| (c) | ensure      provision of all information, data. samples etc. which the Licensee may be      required to furnish under the applicablelaws; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (f) | establish      and submit to the Management Committee for approval appropriate criteria      and procedures for the purchase, lease or rental of machinery, equipment,      assets and facilities required for petroleum operations based on economic      considerations and generally accepted practices in the petroleum industry      with the objective of ensuring cost and operational efficiency in the      conduct of Petroleum Operations; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | establish      and submit for the approval of the Management Committee appropriate      procedures including tender procedures for the acquisition of goods and      services as provided in Article23.2; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (i) | appoint      a technically competent and sufficiently experienced representative, and,      in his absence, a suitably qualified replacement therefore, 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 Licensee and the      Government; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j) | provide      acceptable working conditions, living accommodation and access to medical      attention and nursing care in the Contract Area for all personnel employed      in Petroleum Operations and extend these benefits to other persons who are      engaged in or assisting in the conduct of Petroleum Operations in the      Contract Area: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (k) | carry      out such other obligations as are specified in the Contract, in particular      those specified in Article 12; and |
|-----|-------------------------------------------------------------------------------------------------------------------------------|

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

----

| 7.4 | The      infrastructure facilities such as pipeline as may be developed established      by the Contractor within the country may be mutual agreement and terms      unanimously agreed upon be made available to the Government and/or any      other entity, upon payment of compensation towards cost of operation,      repair and maintenance of such facilities plus a mutually agreed fee to      cover amortisation interest. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      - 8 |
|------------------|

| GOVERNMENT/LICENSEE      ASSISTANCE |
|-------------------------------------|

| 8.1 | Upon      application in the prescribed manner, and subject to compliance with      applicable laws and relevant procedures, the Government and the Licensee      will: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | use      their best endeavours 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 theircontrol; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | use      their good offices, when necessary, to assist Contractor in procurement of      facilities required for execution of Work Programmes including necessary      approvals, permits, consents, authorisations, visas and work permits for      foreign nationals, licences, rights of way, easement, surface rights and      security protection, required pursuant to this Contract and which may be      available from resources within the Government's control; however, when      such services and equipments are not available or should there be any      undue delay in obtaining such items or services when needed, or they are      unsatisfactory for the operations hereunder as certified by the      Contractor, equipments or services may be obtained from sources outside      India, without prejudice to the other provisions of this      Contract. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | use      their good offices to assist in identifying and making available necessary      priorities for obtaining local goods and services pursuant to Article      23. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | 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 licences, permits,      authorizations, consents, security protection, surface rights and      easements as are required for the construction and operation of the said      facilities by the Contractor. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2 | Government      will use their good offices to assist Contractor in obtaining approvals      from the Reserve Bank of India to enable the Contractor to exercise its      rights under Article 20. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.3 | Licensee      shall keep the Companies timely informedof: |
|-----|-----------------------------------------------------------|

|   | (a) | any      act required under law to keep any existing licence or lease issued with      respect to the carrying out of Petroleum Operations in the Contract Area      valid and in good order and of any action taken by the Licensee in this      regard; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | any      request to the Licensee, or order of which the Licensee is aware from the      public authorities concerning any matter related to the said licence or      lease or Petroleum Operations in the Contract  Area. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      - 9 |
|------------------|

| DISCOVERY, DEVELOPMENT      AND PRODUCTION |
|--------------------------------------------|

| 9.1 | If      and when a Discovery is made within the Contract Area, the Contractor      shall: |
|-----|-------------------------------------------------------------------------------------------|

| (a) | forthwith      inform the Licensee 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 Licensee particulars in writing      of the Discovery; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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 to the Licensee of whether in the      Contractor's opinion, such Discovery is of potential commercial interest      and merits appraisal. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | If      the Contractor determines to conduct a drill stem or production test, in      open hole or through perforated casing with regard to the Discovery, it      shall notify the Licensee of the time of such test at least twenty four      (24) hours prior to the proposed test, and the Licensee shall have the      right to have a representative present during such  test. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.3 | If,      pursuant to Article 9.1(c), the Contractor notifies the Licensee that the      Discovery is of potential commercial interest, the Contractor shall      prepare and submit to the Management Committee with due diligence 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 9.5. whether such Discovery      is a Commercial Discovery and (ii) determine, with reasonable precision,      the boundaries of the area to be delineated as a Development      Area. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.4 | The      proposed Appraisal Programme shall be considered by the Managemcnt      Committee within forty five (45) days after submission thereof pursuant to      Article 93. The said Appraisal Programme, together with the Work Programme      and budget submitted by the Contractor, revised in accordance with any      agreed amendments or additions thereto, approved by the Management      Committee, shall be adopted as the Appraisal Programme and the Contractor      shall promptly commence implementation thereof, and the Yearly budget for      the Exploration Period, adopted pursuant to Article 4, shall be revised      accordingly. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.5 | The      Contractor shall unless otherwise agreed, in respect of each Discovery of      Crude Oil, advise the Management Committee by notice in writing within a      maximum period of twenty four (24) months from the date on which the      notice |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 9.6 | The      Management Committee shall, within forty five (45) days of the date      of  the notice referred to in Article 9.5, consider the proposal      of the Contractor and a one-time request for any other additional      information it may reasonably require so as to reach a decision on whether      or not to declare the Discovery as a Commercial Discovery. Such decision      shall be made within the period of (a) ninety (90) days from the date of      notice referred to in Article 9.5 or (b) ninety (90) days of receipt of      such other information as may be required under this Article      9.6. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.7 | If      a Discovery is declared a Commercial Discovery, 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 plan      for the development of the Commercial Discovery. Such plan shall contain      detailed proposals by the Contractor for the construction, establishment      and operation of all facilities and services for and incidental to the      recovery, storage and transportation of the Petroleum from the proposed      Development area to the Delivery Point together with all data and      supporting information including but not limited  to: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | 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; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | 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; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | estimate      of the rate of production to be established and projection of the possible      sustained rate of production in accordance with generally accepted sound      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; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

| (f) | Work      Programme and budget for development proposal concerning the designation      of the Development Area: |
|-----|------------------------------------------------------------------------------------------------------------------|

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

| (h) | the      information required in Articles 21.4.1 and  21.4.2. |
|-----|---------------------------------------------------------------|

| 9.8 | Any      proposed Development Plan submitted by the Contractor pursuant to Article      9.7 may he approved by the Management Committee, with such amendments and      modifications as it may decide, within two hundred seventy days (270) of      the declaration of the Discovery as a Commercial Discovery.  If      such a Development Plan has not been approved by the Management Committee      within two hundred seventy (270) days period, the Contractor shall have      the right to submit such plan directly to the Government for      approval.  The Government shall accord its approval or rejection      in writing of the said Development Plan with reasons within thirty (30)      days of receipt of the submission failing which the Development Plan shall      be deemed to be approved. In the event of rejection. the Contractor shall      have the right to resubmit such plan, after taking due note of the reasons      for rejections and remedying, wherenecessary. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.9 | A      Development Plan approved by the Management Committee or the Government as      the case may be, from time to time shall commit the Contractor to the      obligations stipulated in Articles 9.13 to9.15. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.10 | The      Management Committee shall obtain such approvals from the Government as      may be required, except where this Contract provides that the Contractor      may obtain such approvals directly. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.11 | If      the Licensee considers a Discovery to be non-commercial while the      Companies consider that it is commercial and the Management Committee      fails to declare the Discovery as a Commercial Discovery within the time      limit stipulated in Article 9.6 hereof, the Companies may declare the      Discovery as a Commercial Discovery and submit development and production      plans in respect of the Discovery to the Management Committee as per the      provisions of Article 9.7 and after such plans have been approved by the      Management Commitin or the Government, as the case may be, the Companies      shall, acting solely, provide the entire Development Costs and undertake      development of the said Oil Field.  If, however, the said Oil      Field turns out to be non-commercial, the entire Development Cost of the      said Oil Field shall be reckoned as expenditure on unsuccessful      exploration but shall not count as Investment in the Contract Area and      shall not be recoverable as Cost Petroleum from any other Development      Area. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.12 | In      the event that, at the end of the Exploration Period, the Licensee      considers a Discovery to be commercial, but the Companies consider the      same as non­commercial, the Licensee shall give notice to tlte      Companies to that effect and thereafter the Oil Fields relating to such      Discovery shall be excluded from the Contract Area and the Licensee may      proceed acting solely, to develop that Oil Field, providing the entire      Development Cost. In that event, the Companies shall have no claim on the      production from such a Development Area and such an Oil Field shall be      excluded from the Contract Area for all  purposes. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 9.13 | Work      Programmes and budgets for Development and Production Operations shall be      submitted to the Management Committee as soon as possible after the      designation of a Development Area and thereafter not later than 31st      December each Year in respect of the Year immediately      following. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.14 | 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 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 year to year estimates of      potential production are required, these shall be based on concrete      evidence necessitating suchchanges. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.15 | Not      later than the fifteenth (15th)      of January each Year, in respect of the Year immediately following, 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 sound petroleum industry practices and minimizing 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. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.16 | 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 to the      Management Committee for approval, through the Operating Committee      provided that revisions shall not be made so as to extend a designated      Field or a Development Area or to substantively change any aspect of the      Development Plan. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.17 | In      the event the area encompassing the Commercial Discovery is reasonably      expected to be greater than the area designated in the Development Plan      under Article 9.7, either within the original Contract Area but      subsequently relinquished or, outside the original Contract Area, the      Management Committee may recommend to the Government about enlargement of      the Development Area, provided the same was/is not awarded or offered      under bidding or no license or lease has been issued or application has      been filed under the relevant provision to any other company by the      Government or is not held by any otherparty. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      - 10 |
|-------------------|

| UNIT      DEVELOPMENT |
|-----------------------|

| 10.1 | 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, the Government may, for securing      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 as one Development Area; |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| (b) | submit      such agreement between the Contractor and such other parties to the      Government for approval; and |
|-----|-------------------------------------------------------------------------------------------------------------------|

| (c) | prepare      a plan for such joint development of' the said reservoir, within one      hundred and eighty (180) days of the approval of the agreement referred to      in (b) above. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | If      no plan is submitted within the period specified in Article 10.1(c) or      such longer period as the Parties 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 the other      parties referred to in Article 10.1, a plan for such joint development      consistent with generally accepted practices in the international      petroleum industry which shall take into consideration any plans and      presentations made by the Contractor and the aforementioned other      parties. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | If      the parties are unable to agree on the proposed plan for joint      development, then any party may refer the matter to a sole expert for      final determination pursuant to Article 33, provided that the Contractor      may in case of any disagreement on the issue of joint development or the      proposed joint development plan, or within sixty (60) days of      determination by a sole expert, notify the Licensee and the Government      that it elects to surrender its rights in the Discovery Area in lieu of      participation in a jointdevelopment. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | If      a proposed joint development plan is agreed and adopted by the parties. or      adopted following determination by the sole expert, 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 isestablished. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5 | The      provisions of Articles 10.1, 10.2 and 10.3 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 areas subject to      contract for Petroleum Operations by other  parties. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      -11 |
|------------------|

| MEASUREMENT OF      PETROLEUM |
|-------------------------------|

| 11.1 | The      volume and quality of Petroleum produced and saved from a Development Area      shall be measured by methods and appliances generally accepted and      customarily used in sound petroleum industry practice and approved by the      Licensee and the ManagementCommittee. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2 | 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. The      Operator shall have right to have a representative present during such      Government tests. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3 | Before      commencement of production in a Development Area, the Parties shall      mutually agree on: |
|------|---------------------------------------------------------------------------------------------------------|

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

| (b) | the      point 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. |
|-----|-----------------------------------------------------------------------|

| 11.4 | The      Contractor shall undertake to measure the volume and quality of the      Petroleum produced and saved from a Development Area at the agreed      measurement point consistent with generally accepted practices in the      international petroleum industry, with the frequency and according to      procedures agreed pursuant to Article 11.3.  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. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.5 | 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 authorized representatives, such      operations. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      - 12 |
|-------------------|

| PROTECTION OF THE      ENVIRONMENT |
|------------------------------------|

| 12.1 | The      Government and the Contractor recognise that Petroleum Operations normally      employed by the international oil and gas industry 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.  Towards this end and in the      furtherance of any laws promulgated or as the Government may otherwise      require from time to time, the Contractorshall: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a) | employ      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      unavoidalbe, to minimize 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 PetroleumOperations. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------|

| 12.2 | If      the Contractor fails to comply with the provisions of paragraph (b)(i) of      Article 12.1 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. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.3 | If      the Government has, on reasonable grounds, 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 wildlife 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 damage to the environment.      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. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.4 | The      measures and methods to be used by the Contractor for the purpose of      complying with the terms of paragraph (b) (i) of Article 12.1 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 12.5 below. The  Contractor       shall   notify  the  Government in       writing,  of  the  measures   and |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12.5 | The      Contractor shall cause a person or persons with special knowledge on      environmental matters approved by the government to carry out two      environmental impact studies inorder: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a) | to      determine at the time of the studies the prevailing situation relating to      the environment, human beings and local communities, the wildlife and      marine life 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 wildlife and marine life 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 12.4 for minimizing Environmental Damage and carrying out Site      Restoration activities. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.5.1 | 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. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.5.2 | 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. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.5.3 | The      studies mentioned in Article 12.5 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 respectivestudy: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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; |
|-----|-----------------------------------------|

----

| (1) | blow-out      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; and |
|-----|-------------------------|

| (r) | debris      disposal. |
|-----|-----------------------|

| 12.6 | The      Contractor shall ensute that: |
|------|----------------------------------------|

| (a) | Petroleum      Operations are conducted in an environmentally acceptable and safe manner      consistent with sound petroleum industry practice 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' environmental      protection to be used in carrying out the Petroleum Operations;      and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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 flor      the implementation of the Contractor's obligations in relation to the      environment under this Contract. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.7 | 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. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.7.1 | In      the event of an emergency, accident, oil spill or fire arising from      Petroleum Operations affecting the environment, the Contractor shall      forthwrith notify the Government and shall promptly implement the relevant      contingency plan and perform such Site Restoration activities as may be      necessary as provided in paragraph (b) of Article  12.9. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.7.2 | 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      sound petroleum industry practice in such  circumstances. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.8 | In      the event that the Contractor fails to comply with any of the terms      contained in Article 12.7 within a period specified by the Govemment, 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 |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12.9 | On      expiry or termination of this Contract or relinquishment of part of the      Contract Area, the Contractorshall: |
|------|--------------------------------------------------------------------------------------------------------------------------|

| 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 activities in accordance with sound      petroleum industry, practice and take all other action necessary to      prevent hazards to human life or to the property of others or the      environment. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.10 | In      this Article, a reference to Government includes the State      Government. |
|-------|-------------------------------------------------------------------------------------|

| 12.11 | The      Contractor hereby declares that it is aware that the Contract Area is      partly located on areas forming part of certain national parks,      sanctuaries, mangroves, wetlands of national importance, biosphere      reserves and other biologically sensitive areas.  Passage      through the above mentioned 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 concerned      authorities shall be obtained. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.12 | Within      one hundred & twenty (120) days of the Effective Date, the Contractor      shall retain a mutually acceptable third party environmental contractor to      establish an environmental base line over the Contract Area. The cost of      establishing this environmental base line shall be borne by the Contractor      and will be cost recoverable. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      - 13 |
|-------------------|

| ONGC      PARTICIPATION |
|-------------------------|

| 13.1 | ONGC      shall have the option to acquire a Participating Interest from the      Companies in accordance with the provisions of this Article. If ONGC      exercises such option to participate, its Participating Interest shall be      transferred to the ONGC from the Companies in the proportion which each      Company’s Participating Interest bears to the total Participating Interest      of the Companies. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2 | ONGC      shall have an option to acquire Participating Interest of thirty percent      (30%) in a Development Area by serving notice to that effect on the      Company(ies) within ninety (90) days of the decision of the Management      Committee under Article 9.6 or21.5.4. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.3 | In      the event that the ONGC exercises its option to participate pursuant to      Article 13.2, the Nominee shall contribute to its Participating Interest      share of all Development and Production Costs incurred with respect to the      Development Area from the date of approval of the Development Plan for      such Development Area and shall assume a share of rights and obligations,      corresponding to its Participating Interest share from the said date, with      respect to such Development Area but shall not be liable for any costs      incurred prior to the said date. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.4 | If      Contractor wants to include more than one Commercial Discovery in a      Development Area or modify an existing Development Area in order to      include a subsequent CommercialDiscovery: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.4.1 | (a)      Development Area can contain more than one Commercial Discovery only when      the same constituents of Contractor have elected to participate in the      development of such Commercial Discoveries proposed to be located in the      same Development Area. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 13.4.2 | Notwithstanding      provision of Article 13.3, ONGC shall not bear or pay any Exploration Cost      with respect to any DevelopmentArea. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

| 13.5 | Except      as provided in this Article or elsewhere in this Contract, the rights and      obligations to be assumed by the ONGC shall include but not be limited      to: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | the      right to take Cost Petroleum in accordance with the provisions of Article      14; |
|-----|---------------------------------------------------------------------------------------------|

| (b) | the      right to take its total Participating Interest share of the Contractor's      Share of Profit Petroleum in accordance with the provisions of Article      15; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | the      right to receive its Participating Interest share of any incidental income      and receipts arising from PetroleumOperations; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

| (d) | the      obligation to contribute its Participating Interest share of costs and      expenses as provided in Articles 7.3, 13.3,  13.4. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

| 13.6 | A11      payments by the ONGC in any Year in respect of its Participating Interest      share of Contract Costs, shall be made in United States Dollars. or in any      other convertible currency agreed between the Parties, to the extent      required, provided, that the ONGC shall be entitled to contribute its      Participating Interest share of such costs in the relevant Year in Indian      Rupees to the maximum extent that Rupees are required by the Contractor to      meet its obligations in India. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      - 14 |
|-------------------|

| RECOVERY OF COSTS FROM      PETROLEUM |
|---------------------------------------|

| 14.1 | The      Contractor shall be entitled to recover Contract Costs out of a percentage      of the total volumes of Petroleum produced and saved from each Development      Area in the Year, in accordance with the provisions of this      Article. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2 | Exploration      Costs incurred by the Contractor in the Contract Area up to the date of      Commercial Production of Petroleum from a Development Area in that      Contract Area shall be aggregated, and the Contractor shall be entitled to      recover the aggregate of such Exploration Costs out of the Cost Petroleum      from the Development Area at the rate of one hundred percent (100%) per      annum of such Exploration Costs beginning from the date of such Commercial      Production, as provided in Article14.4. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.3 | The      Contractor shall be entitled to recover out of the Cost Petroleum from any      Development Area in the Contract Area the Exploration Costs which it has      incurred in that Contract Area in any Year after the date of Commercial      Production from the Development Area at the rate of one hundred percent      (100%) per annum of such Exploration Costs beginning from the date such      Exploration Costs are incurred as provided in  Article. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.4 | The      Contractor shall be entitled to recover Exploration Costs as provided in      Articles 14.2 and 14.3 either from the first Development Area or from      other Development Area in a Contract Area in proportion to the values of      the quantity of Petroleum produced and saved from each Development Area in      that Contract Area as reduced by the Development Areas Production Costs,      in the relevant Year, provided that such Exploration Costs once recovered      shall not be allowable for recovery against any other Development      Area. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.5 | Development      Costs incurred by the Contractor in any Development Area, upto the date of      Commercial Production from such Development Area shall be aggregated. and      the Contractor shall be entitled to recover out of the Cost Petroleum from      that Development Area 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 from the said      Development Area. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.6 | The      Contractor shall be entitled to recover out of the Cost Petroleum from a      Development Area, the Development Costs which it has incurred on such      Development Area. after the date of Commercial Production from the      Development Area at the rate of one hundred percent (100%) per annum of      such Development Costs beginning from the date such Development Costs are      incurred. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.7 | The      Contractor shall be entitled to recover in full, during any Year, the      Production Costs incurred on a Development Area in that Year out of the      Cost Petroleum from such DevelopmentArea. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14.8 | If      during any Year the Cost Petroleum from any Development Area is not      sufficient to enable the Contractor to recover in full the Contract Costs      due for recovery in that Year in accordance with the provisions of      Articles 14.1 to 14.7 then, subject to the provisions of Article      14.15: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.9 | The      maximum amount of Cost Petroleum to which the Contractor shall be      entitled, in accordance with the provisions of this Article, shall be      eighty percent (80%) of the total value of the Petroleum produced and      saved from a Development Area in aYear. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.10 | For      the purposes of this Article, as well as Article  15: |
|-------|----------------------------------------------------------------|

| 14.11 | Pending      completion of the calculations required to establish definitively the      Contractor's entitlement to Cost Petroleum from any Development 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 for the Development Area 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 sixty (60) 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,      shall be undertaken and any necessary adjustments to the Cost Petroleum      enti,ilement shall be agreed upon between the Government and the      Contractor and made as soon as practicable  thereafter. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14.12 | Where      more than one Party constitutes the Contractor, the percentage of the      total Cost Petroleum from any Development 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 proportions of each      such Party's cumulative unrecovered Contract Costs on the Development Area      as at the end of the previous Year or, where there are no unrecovered      Contract Costs at the end of the previous Year, on the basis of the      Participating Interest of each such Party in the Development      Area. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      - 15 |
|-------------------|

| PRODUCTION SHARING OF      PETROLEUM |
|--------------------------------------|

| 15.1 | The      Parties to this Contract shall share in the Profit Petroleum separately      from each Development Area in each Year in accordance with the provisions      of this Article.  A Party's share of Profit Petroleum, in any      Year, shall be calculated separately for each Development Area on the      basis of the Investment Multiple actually achieved by the Companies at the      end of the preceding Year for that Development Area, as provided in      Appendix D. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.2.1 | When      the Investment Multiple of the Companies at the end of any Year is less      than one (1), the Government shall be entitled to take and receive zero      percent (0%) and the Contractor shall be entitled to take and receive one      hundred percent (l00%) of the total Profit Petroleum from that Development      Area with effect from the start of the succeeding  Year. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.2.2 | When      the Investment Multiple of the Companies at the end of any Year is equal      to or more than one (1) but is less than one and one half (1.5), the      Government shall be entitled to take and receive ten percent (10%) and the      Contractor shall be entitled to take and receive ninety per cent (90%) of      the total Profit Petroleum from that Development Area with effect from the      start of the succeeding Year. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.2.3 | When      the Investment Multiple of the Companies at the end of any Year in respect      of any Development Area is equal to or more than one and one half (1.5)      but is less than two (2.0) the Government shall be entitled to take and      receive fifteen percent (15%) and the Contractor shall be entitled to take      and receive eighty five percent (85%) of the total Profit Petroleum from      that Development Area with effect from the start of the succeeding      Year. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.2.4 | When      the Investment Multiple of the Companies in respect of any Development      Area is equal to or more than two (2.0) but is less than two and one half      (2.5), the Government shall be entitled to take and receive twenty percent      (20%) and the Contractor shall be entitled to take and receive eighty      percent (80%) of the total Profit Petroleum from that Development Area      with effect from the start of the succeeding  Year. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.2.5      When the Investment Multiple of the Companies at the end of any Year in      respect of any Development Area 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 thirty percent (30%) and the Contractor shall be entitled      to take and receive seventy percent (70%) of the total Profit Petroleum      from that Development Area with effect from the start of the succeeding      Year. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.2.6 | When      the Investment Multiple of the Companies at the end of any Year in respect      of any Development Area is equal to or more than three (3.0) but is less      than three and one half (3.5), the Government shall be entitled to take      and receive forty percent (40%) and the Contractor shall be entitled to      take and receive sixty percent (60%) of the total Profit Petroleum from      that Development Area with effect from the start of the succeeding      Year. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 15.2.7 | When      the Investment Multiple of the Companies at the end of any Year      in  respect of any Development Area is equal to or more than      three and one half (3.5), the Government shall be entitled to take and      receive fifty percent (50%) and the Contractor shall be entitled to take      and receive fifty percent (50%) of the total Profit Petroleum from that      Development Area with effect from the start of the succeeding      Year. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.3 | The      value of the Companies' Investment Multiple at the end of any Year in      respect of each Development Area shall be calculated in the manner      provided for, and on the basis of the net cash flows specified in Appendix      D to this Contract.  However, the volume of Profit Petroleum to      be shared between the Government and the Contractor shall be determined      for each Quarter on an accumulative basis. Pending finalization of      accounts, delivery of Profit Petroleum shall be taken by the Government      and the Contractor on the basis of provisional estimated figures of      Contract Costs, production, prices, receipts, income and any other income      or allowable deductions and on the basis of the value of the [Investment      Multiple] achieved at the end of the preceding Year. All such provisional      estimates shall be approved by the Management Committee.  When      it is necessary to convert monetary units into physical units of      production equivalents or vice versa, the price or Crude Oil, Condensate      and Natural Gas respectively shall be used.  Within sixty (60)      days of the end of each Year, a final calculation of Profit Petroleum      based on actual costs, quantities, prices and income for the entire Year      shall be undertaken and any necessary adjustments to the sharing of      Petroleum shall be agreed upon between the Government and the Contractor      and made as soon as is practicablethereafter. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.4 | The      Profit Petroleum due to the Contractor in any Year from any Development      Area shall be divided between the Parties constituting the Contractor in      proportion to their respective Participating  Interests. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      - 16 |
|-------------------|

| TAXES, ROYALTIES,      RENTALS, ETC. |
|--------------------------------------|

| 16.1 | 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. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2 | 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. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2. | Subject      to the provisions herein below, deductions at the rate of one hundred      percent (100%) per annum shall be allowed for all 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 thefollowing: |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2.1.1 | 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: |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2.1.2 | Sections      40A and 44C of the Income Tax Act 1961, shall  apply. |
|----------|---------------------------------------------------------------------|

| 16.2.2 | A      Company shall be entitled, for income tax purposes only, to deduct all its      unsuccessful Exploration Costs in contract areas covered by other      contracts with an Effective Date after the 15th of April 1992, in      accordance with the provisions of the Income Tax Act, 1961, from the      aggregate value of Petroleum allocable to the Company from any Development      Area in the Contract Area in the manner as  follows: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 16.2.2 | Unsuccessful      Exploration Costs incurred in contract areas other than the Contract Area      where Commercial Discovery has been made up to the date of commencement of      Commercial Production shall be aggregated and the Company shall be      entitled to deduct such costs at the rate of one hundred per cent (100%)      per annum. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2.2.2 | Unsuccessful      Exploration Costs incurred in contract areas other than the Contract Area      where Commercial Discovery has been made, after that 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. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2.3 | All      allowable expenditure incurred prior to the Year in which Commercial      Production commences shall be aggregated and the assessed loss for      that  year as well as the assessed loss, if any, incurred in the      assessment year  relevant to the Year in which Commercial      Production commences, or in any subsequent assessment year, shall be      carried forward to succeeding assessment years and set off as provided in      the Income Tax Act, 1961. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2.4 | The      revenue from the business consisting of Petroleum Operations shall be      determined in accordance with Article 19 for the Participating Interest      Share of Crude Oil saved and sold, or otherwise disposed of, from      Development Area and from any revenue realized on the sale of ANG and/or      NANG referred to in Article 21 as well as any other gains of receipts from      Petroleum Operations as reduced by the deductions as specified within this      Article, and, except as herein provided, all the provision of the Income      Tax Act, 1961, shall apply. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.3 | For      the purposes of Article 16.2 and section 42 of the Income Tax Act,      1961: |
|------|----------------------------------------------------------------------------------------|

| 16.3.1 | The      following terms used in section 42 of the Income Tax Act, 1961 shall have      the meanings corresponding to the terms used in this Contract and defined      in Article 1 as follows: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.3.1.1 | "agreement"      mean this Contract as defined in Article1; |
|----------|-------------------------------------------------------------|

| 16.3.1.2 | "Commercial      Production" shall have the meaning assigned in Article  1 |
|----------|----------------------------------------------------------------------------|

| 16.3.2 | The      terms "assessing officer", "assessed loss" and "'assessment year" shall      have the meaning as defined in the income Tax Act,  1961 |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.3.3 | The      other terms used herein and defined in Article 1 shall have the meaning      therein ascribed. |
|--------|---------------------------------------------------------------------------------------------------------|

----

| 16.4 | Companies      shall not be liable to the Government or State Government for payment      of: |
|------|-----------------------------------------------------------------------------------------------|

| 16.4.1 | royalty,      annual area rental charges or license | fees      under the Rules as amended. |
|--------|-----------------------------------------------------|---------------------------------------|

| 16.4.2 | any      other taxes, cess or any other levies of a similar nature calculated by      reference to production of or to income from Petroleum. except income      taxes payable to Government as specifiedabove. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.5 | The      Contractor shall not be liable to the Govemment or the Statc Government      for payment of any custom duties, export duties or other, statutory      charges on the import or re-export of equipment, installations etc., as      specified in Article 17, to be used solely and exclusively for Petroleum      Operations. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.5.1 | Sales      Tax, if any, payable under the relevant laws on the safe of Petroleum to      Government or its nominee shall be borne by the Government or its nominee      as the case may be; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.6 | The      Contractor shall not be liable to the Government or the State Government      for payment of any custom duties, export duties, sales tax, value added      tax or other statutory charges on the export and subsequent import of      Petroleum from the Contract Area or an equivalent  amount |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.7 | Subject      to the provision hereinabove provided, Contractor shall be liable for      payment of |
|------|----------------------------------------------------------------------------------------------------|

| 16.7.1 | Charges      payable by specified industries or in connection with Petroleum Operations      under applicable legislation; |
|--------|----------------------------------------------------------------------------------------------------------------------------|

| 16.7.2 | payments      for purchase, lease or rental of land or land rights in connection with      Petroleum Operations; |
|--------|------------------------------------------------------------------------------------------------------------------|

| 16.7.3 | taxes,      fees or charges for specific services rendered on request or to the public      generally; |
|--------|--------------------------------------------------------------------------------------------------------|

| 16.7.4 | customs      duties, except for those items subject to exemption as provided      in  Article 17, applicable at the rates specified from time to      time. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.7.5 | 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 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 16.8 | If      any change in or to any Indian law, rule or regulation by any central,      state and local authority dealing with income tax or other corporate tax,      export/import tax, customs duty or tax imposed on Petroleum of dependent      upon the value of Petroleum results in a material change to the economic      benefits accruing to any of the Parties to this Contract after the      Effective Date of the Contract, the Parties to this Contract shall consult      promptly to make necessary revisions and adjustments to the Contract in      order to maintain such expected economic benefits to each of the      Parties. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | ARTICLE      - 17 |
|--------|-------------------|

| CUSTOMS      DUTIES |
|---------------------|

| 17.1 | Machinery,      plant. equipment. materials and supplies imported by a Contractor or its      Subcontractors solely and exclusively for use in Petroleum Operations      shall be exempted from customs duties subject to compliance with      procedures and conditions as may be determined pursuant to applicable      customs duty legislation, Article 23 the terms herein      specified. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.2 | Contractor      shall submit to the Government a list of Subcontractors who are engaged by      it for the purpose of obtaining the various categories of items specified      herein pursuant to the conduct of Petroleum Operations and who may claim      exemptions hereunder. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.3 | In      order to qualify for the exemption from customs duties as provided, for in      Article 17.1, all imported items for which duty exemption is being claimed      shall be certified by a responsible representative of the Contractor to be      imported in terms of this Contract solely and exclusively for use in      carrying out Petroleum Operations and shall be approved by a      representative of the Government to be eligible for such exemption      pursuant to the terms of theContract. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.4 | The      Government shall have the right to inspect the records and documents of      the physical item or items for which an exemption is or has been provided      under 17.1 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. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.5 | 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 governing customs duties      and sale or disposal of such items. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      - 18 |
|-------------------|

| DOMESTIC SUPPLY, SALE,      DISPOSAL AND EXPORT OF CRUDE OIL  CONDENSATE |
|--------------------------------------------------------------------------|

| 18. | Until      such time as the total availability to the Government and government      companies of Crude Oil and Condensate from all Petroleum production      activities in India meets the total national demand, each Contractor or      constituents of Contractor shall be required to sell to the Government or      its nominee all of the Contractor or constituents of Contractor’s      entitlement to Crude Oil and Condensate from each Development Area in      order to assist in satisfying the national  demand. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.2 | Pursuant      to Article 18.1 and subject to Article 18.4, each constituent of      Contractor shall offer to sell to the Government (or its nominee) its      total Participating Interest share of Crude Oil and Condensate to which it      is entitled under Articles 14 and 15 at the price determined in accordance      with Article 19 for sales to Government and the Government shall have the      option to purchase the whole or any portion thereof at the said      price. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.3 | The      aforementioned offer shall be made by a Contractor or constituents of      Contractor, in writing, at least thirty (30) days after a discovery and      thereafter at least six (6) months preceding the Year in which the sale is      to be made, specifying the estimated quantities and grade of Crude Oil and      Condensate being offered (based upon estimates which shall be adjusted      within ninety (90) days of the end of each Year on the basis of actual      quantities produced and saved). The Government shall exercise its said      option to purchase, in writing, not later than ninety (90) days prior to      the commencement of the Year in respect of which the sale is to be made,      specifying the quantity and grade of Crude Oil and Condensate which it      elects to take in the ensuing Year. Failure by the Government to give such      notice within the period specified shall be conclusively deemed an      election to take all of the Crude Oil and Condensate offered (adjusted as      provided herein) in the ensuingYear. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.4 | 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 Contractor or constituents of      Contractor 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, Government's option to purchase shall be suspended and the      Contractor or constituents of Contractor 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 option to purchase under Article 18.2 in respect of the      following Year by giving notice thereof to the Contractor or constituents      of Contractor as provided in Article18.3. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.5 | All      payments in respect of sales to the Government pursuant to provisions of      this Article  shall be made  by the  Government       within  the  period for  credit  applicable |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 18.6 | If      full payment is not received by a Contractor or constituents of Contractor      when due as provided in Article 18.5, the Contractor or constituents of      Contractor shall, at any time thereafter, notify the Government of the      default and, unless such default is remedied within fifteen (15) days from      the date of the said notice, the Contractor or constituents of Contractor      shall have the right, unless otherwise agreed, upon written notice to the      Government: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | to      suspend the Government's option to purchase under Article      18.2; |
|-----|------------------------------------------------------------------------------|

| (b) | to      freely lift, sell and export all its Participating Interest share of Crude      Oil and Condensate subject to the destination restrictions specified in      Article 18.8, until the Government has paid the due amount plus interest      as provided herein; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | if      the payment plus interest is not received by the Contractor or      constituents of Contractor within one hundred and eighty (180) days from      the date the said payment was due, to receive and export the Government's      share of Profit Petroleum until such time as either Government has paid      all amounts due plus interest, or the value, based on the price as      determined in accordance with Article 19, of Government's share of Profit Petroleum      so exported is equal to all amounts due plus interest, whichever first      occurs; provided, however, that if the Government      makes a payment to the Contractor or constituents of Contractor after the      Contractor or constituents of Contractor has commenced export of      Government's share of Profit Petroleum and such payment together with the      value of Government's share of Profit Petroleum      exported (based on the price determined in accordance with Article 19)      exceeds the amount due plus interest, necessary adjustment shall be      carried out to refund to the Government forthwith the excess amount      received by the Contractor or constituents of  Contractor. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 18.7 | If      in any Year India has not attained Self-sufficiency and the Government or      any government company or agency of the Government exports or delivers to      a third party for export any Crude Oil produced under the terms of this      Contract for any purpose other than for the purpose of balancing Indian      refinery requirements. Self-sufficiency shall be deemed to exist for      purposes of this Article 18 and the Contractor or constituents of      Contractor shall have the right of first refusal to acquire any Crude Oil      to be so exported for the same consideration and upon the same terms which      the Government, the Government Company or other agency of Government has      offered or agreed to accept. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.8 | The      Contractor or constituents of Contractor shall be entitled to freely lift      and export any Crude Oil and Condensate which the Government has elected      not to purchase 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. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.9 | No      later than sixty (60) days prior to the commencement of production in a      Development Area, 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 Development      Area during the succeeding Year, based on a maximum efficient rate of      recovery of Crude Oil from that Development Area in accordance with good      petroleum industry practice. No later than thirty (30) days prior to the      commencement of each Quarter, the Contractor shall advise its estimate of      production for the succeeding Quarter and shall endeavour to produce the      forecast quantity for each Quarter. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.10 | Each      Party 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 shall have the obligation to lift the said      Cost Petroleum and Profit Petroleum on a current basis and in such      quantities so as not to cause a restriction of production or inconvenience      to the other Parties. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.11 | The      Government shall, throughout the term of this Contract, have the right to      separately take in kind and dispose of its share of Profit Petroleum and      of such portion of the Contractor's share of Crude Oil and Condensate as      is purchased by the Government pursuant to Article 18, subject to Article      18.6, and shall have the obligation to lift all of the said Oil on a      current basis and in such quantities so as not to cause a restriction of      production or inconvenience to the other  Parties. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.12 | For      the purpose of implementing the provisions of Articles 18.10 and 18.11,      a Crude Oil lifting procedure shall be agreed upon by the Parties no      later than six (6) months prior to the commencement of production in a      Development Area. Such lifting procedure shall include, but not      necessarily be limited to: |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | a      procedure for notification by the Operator to the Government, and to each      Party comprising the Contractor, of projected Crude Oil      production; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b) | a      procedure for notification by the Government, and by each Party comprising      the Contractor, to the Operator, of its expected off-take and the      consequences of inability or failure to  off-take. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      – 19 |
|-------------------------|

| VALUATION OF      PETROLEUM |
|-----------------------------|

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

| 19.2 | A      price for Crude Oil shall be determined for each Calendar 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, FOB      Delivery Point for Crude Oil produced and sold or otherwise disposed off      from each Development Area for each Delivery Period, in accordance with      the appropriate basis for that type of sale or disposal specified      below. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 19.3.1      In the event that a portion of such third party Arms Length Sales are made      on a basis other than an FOB basis as herein specified, the said portion      shall be-valued at prices equivalent to the prices FOB the Delivery Point      for such sales determined by deducting all costs (such as transportation,      demurrage, loss of Crude Oil in transit and similar costs) incurred      downstream of the Delivery Point, and the prices so determined shall be      deemed to be the actual prices received for the purpose of calculation of      the weighted average of the prices for all third party Arms Length Sales      for the Delivery Period. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.3.2 | Each      Constituent of Contractor shall separately submit to the designated      government company, within fifteen (15) days of the end of each Delivery      Period, a report containing the actual prices obtained in their respective      Arms Length Sales to third parties of any Crude Oil. Such reports shall      distinguish between term sales and spot sales and itemize volumes,      customers, prices received and credit terms, and a Contractor shall allow      the designated government company to examine the relevant sales      contracts. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.4 | In      the event that some or all of a Contractor's total sales of Crude Oil      during a Delivery Period are made to the Government or a Government      company, the price of all sales so made shall, unless otherwise agreed      between the Parties, be determined on the basis of either the FOB selling      price 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, such FOB selling price to      be ascertained from Platt's Crude Oil Market Wire daily publication      ("Platt's") or tile spot market for-the same crude oils ascertained in the      same manner, whichever price, in the opinion of the Parties more truly      reflects the current value of such Crude Oils. For any Delivery Period in      which sales take place, the price shall be the arithmetic average price      per Barrel determined by calculating the average for such Delivery       Period  of  the  mean  of  the  high       and  low  FOB  or  spot prices for each       day of |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 19.4.1      At least six (6) months prior to commencement of production from the first      Development Area and from each Field thereafter in the Contract Area, the      Parties shall meet in order to establish a provisional list of the crude      oils to be selected for comparison with the Crude Oil to be sold and an      appropriate mechanism for the purpose of giving effect to Article 19.4 and      definitively establishing the price of the Crude Oil to be sold pursuant      to Article 19.4. In determining the quality of crude oil, account shall be      taken of all relevant characteristics including but not limited to      gravity, sulphur and metal content, pour point and product      yield. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.4.2      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 pricingbasis. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.4.3      The Parties shall meet annually or sooner upon notice served by any Party      on the others, to review the list of selected crude oils or the mechanism      established pursuant to Article 19.4.1 in light of any new facts since the      date of selection of such crude oils or establishment of such mechanism      and to determine what adjustment (if any) should be made to the said      selection or mechanism by mutual agreement of the  Parties. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.5 | In      the event that in any Delivery Period, some but not all of a Contractor's      sales of Crude Oil from a Development Area are made to the Government or a      government company and some but not all are made to third parties in Arms      Length Sales and the price as established in accordance with Article 19.4      differs by more than one percent (1%) from the price as determined in      accordance with Article 19.3 for the same Delivery Period, the Parties      shall meet upon notice from any Party, to determine if the prices      established for the relevant Delivery Period should be adjusted taking      into account third party Arms Length Sales made by the Contractor of the      same or similar Crude Oil from the relevant Development Area or other      Fields and published information in respect of other genuine third party      Arms Length Sales of the same or similar Crude Oil for that Delivery      Period. Until the matter of an adjustment for the relevant Delivery Period      is finally determined. the price as established in accordance with this      Article will apply for that Delivery Period. Any adjustment, if necessary,      will be made within thirty (30) days from the date the adjustment for that      Delivery Period is finallydetermined. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.6 | A      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  or       the government  company  and  shall  be       subject  to  agreement by |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 19.7 | 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 appointed as provided in Article33. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.7.1      Within ten (10) days of the said appointment, the Parties shall provide      the expert with all information they deem necessary or as the expert may      reasonably require. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.7.2      Within fifteen (15) days from. the date of his appointment, the expert      shall report to the Parties on the issue(s) referred to him for      determination, applying the criteria or mechanism set forth herein and      indicate his decision thereon to be applicable for the relevant Delivery      Period for Crude Oil and such decision shall be accepted as final and      binding by the Parties. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.7.3      Except for the adjustments referred to in Article 19.5; any price or      pricing mechanism agreed by the Parties pursuant to the provisions of this      Article shall not be changedretroactively. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.8 | Any      sale or disposal to Affiliates or other sale or disposal of Crude Oil      produced from a Development Area, other than      to the Government or government companies or to third parties in Arms      Length Sales, in any Delivery Period, shall be valued on the same basis as      sales to the Government or a government company. In the event of such a      sale or disposal by a Contractor, such Contractor shall submit to the      Government, within fifteen (15) days of the end of each Delivery Period,      all relevant information concerning such sales or    disposals. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.9 | In      the event that in any Delivery Period there is more than one type of sales      referred to in Articles 19.3, 19.4 and 19.8, then, for the purpose of      calculating Cost Petroleum and Profit Petroleum entitlement pursuant to      Articles 14 and 15, 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 DeliveryPeriod. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.10 | In      this Article the term Government company shall include any other agency of      Government to whom Crude Oil is to besold. |
|-------|------------------------------------------------------------------------------------------------------------------------------------|

| 19.11 | The      provisions specified above for the determination of the price of sales of      Crude Oil shall apply mutandis toCondensates. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------|

| 19.12 | 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 in compliance with the relevant provisions      of the laws of general application in India governing currency and subject      to treaties entered into by the Government of India with other countries,      foreign exchange and related administrative instructions and procedures      issued there under on a non-discriminatory basis, each Foreign Company      comprising the Contractor shall during the term of this Contract. have the      right to: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | repatriate      abroad, in United States Dollars or any other Foreign Currency, the net      proceeds of sales of Crude Oil and Condensate in  India; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | receive,      retain and use abroad the proceeds of any export sales of Petroleum under      the Contract; |
|-----|------------------------------------------------------------------------------------------------------------|

| (c) | open,      maintain and operate bank accounts with reputable banks, both inside and      outside India, for the purpose of thisContract: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | freely      import, through normal banking channels, funds necessary for carrying out      the Petroleum Operations: |
|-----|----------------------------------------------------------------------------------------------------------------------|

| (e) | convert      into foreign exchange and repatriate sums imported pursuant to (d) above      in excess (if any) of its requirements:and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

| 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 | Foreign      company shall have full rights of control over movement of funds out of      bank accounts established for the purpose of Petroleum Operations but      shall provide to the Reserve Bank of India or any designated financial      body, monthly bank statements, with an explanation of each deposit or      payment from the account. and shall supply each Quarter or annually, in a      form acceptable to the Reserve Bank, or such designated body, full      particulars of foreign exchange transactions pursuant to this Contract in      order to facilitate monitoring of such accounts. Such particulars shall      include: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | details      of deposits of proceeds of sales of Petroleum, such as quantity of      Petroleum sold, date of sale and unitprice; |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

| (b) | the      repayment of principal of loans made to the Companies in foreign currency      for purposes of PetroleumOperations; |
|-----|------------------------------------------------------------------------------------------------------------------------------|

| (c) | payments      of interest, charges, fees and expenses in respect of loans referred to in      paragraph (b) above; |
|-----|--------------------------------------------------------------------------------------------------------------------|

----

| (d) | payment      in foreign currency to persons not resident in India for the supply of      capital goods required for the purpose of Petroleum      Operations; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | payments      in foreign currency to persons not resident in India for the supply of      goods and services, other than capital goods, required for Petroleum      Operations (including services of foreign employees and      consultants); |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | amounts      remitted to India or paid elsewhere at the request of the Government to      meet obligations under the Contract;and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

| (g) | retentions      or disbursements to Affiliates in foreign currency representing the excess      of net profits, depreciation and amortization over the payments made under      paragraphs (b) through (f) above. The Government shall have the right to      verify any statements and reports submitted by the Contractor pursuant to      this Article and the Contractor shall promptly respond to any query in      this regard. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 21.1 | Subject      to Article 21.2, the Indian domestic market shall have the first call on      the utilisation of Natural Gas discovered pursuant to Petroleum Operations      and produced from any Field. Accordingly, any proposal by the Contractor      relating to Discovery and production of Natural Gas from a Field 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 | Contractor      shall have the right to use Natural Gas produced from a Field for the      purpose of Petroleum Operations including reinjection for pressure      maintenance in the Oil Fields, gas lifting and power      generation. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.3 | For      the purpose of sales to the domestic market pursuant to this Article 21,      the Delivery Point shall, unless otherwise provided herein or agreed, be      the inlet flange of the facilities upstream of any facilities and      operations established to extract or process products from the said      Natural Gas. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 21.4.1 | In      the event that a Discovery of Crude Oil contains ANG, Contractor shall      declare in its declaration of the said Discovery as a Commercial Discovery      as specified in Article 9, 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 by itself be commercially exploited in accordance with the terms of      this Contract 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 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 or elsewhere. the proposed plans for such      exploitation. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.4.3 | The      Contractor shall first offer such Excess ANG for sale to the Government      (or its nominee) in writing, in accordance with the terms of this      Contract. On receipt of such offer, the Government (or its nominee) shall,      within six (6) months of the date of receipt thereof, notify the      contractor, in writing, whether or not it wishes to exercise its option to      purchase the Excess ANG. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.4.4 | If      the Government exercises its option to purchase the Excess ANG      as provided in Article 21.4.4. |
|--------|-----------------------------------------------------------------------------------------------------------------|

| (a) | The      Government shall indicate in      the notice exercising the option, the date it can commence purchase of the      Excess ANG, which date shall not be later than the date the facilities for      delivering Excess ANG arecommissioned. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The      Contractor and the Government (or its nominee) shall promptly, commence      negotiation of a Gas sales agreement and other technical and commercial      arrangements required to develop such Natural  Gas. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.4.5 | If      the Government does not exercise its option to purchase the Excess ANG as      provided in Article 21.4.3 and Contractor does not enter into a Gas sales      agreement for the total amount of Excess ANG with any buyer as provided in      Article 21.4.3, the Government shall be entitled to take and utilize such      Excess ANG, at its own cost and expense, without impeding the production      of Crude Oil and without affecting the shares of Crude Oil allocable to      the Parties under the other provisions of this  Contract. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.4.6 | If      the Government elects to take the Excess ANG as provided in Article      21.4.6. |
|--------|------------------------------------------------------------------------------------------|

| (a) | the      Contractor shall deliver such excess ANG to the Government at the      downstream flange of the Natural Gas processing facilities, or, if there      are no Natural Gas processing facilities, 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, in so far as practicable,      uninterrupted delivery of such Excess ANG to the    Government; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | the      cost associated with all facilities installed pursuant to paragraph (b)      above shall be borne by the Government (or its nominee) and shall not be      charged to the Contract Area from which the Excess ANG is being      produced; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | the      Government shall bear all costs including gathering, treating, processing      and transporting costs beyond the downstream flange of the Natural Gas      processing facilities, or, if there are no Natural Gas processing      facilities the downstream flange of the Gas/oil separation      facilities; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.4.7 | If      at any time, any Excess ANG is not utilized by Government or Contractor      pursuant to this Article 21, the Contractor can flare such excess ANG,      where such flaring is approved in the Development Plan by Management      Committee or show to the satisfaction of Management Committee and      Government that reinjection is inadvisable and/or      impracticable. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 21.5.1 | In      the event of a Discovery of NANG, the Contractor shall promptly report      such Discovery to the Management Committee and the provisions of Articles      9.1 and 9.2 shall apply. The remaining provisions of Article 9 would apply      to |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 21.5.2 | If,      pursuant to Article 9.1(c), the Contractor notifies the      Management Committee that the Discovery is of potential commercial      interest, the Contractor shall submit to the Management Committee, within      one (1) Calendar Year from the date of notification of the above said      Discovery, the proposed Appraisal Programme, designed to determine (i)      whether such Discovery is a Commercial Discovery and (ii) the boundaries      of the Development Area. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.5.3 | The      proposed Appraisal Programme 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 may request any      additional information as it reasonably requires within twenty one (21)      days of the submission by Contractor of the said Appraisal Programme.      Contractor shall furnish such information within twenty-one (21) days of      the receipt of request from Management Committee for such information.      Following review of the Appraisal Programme and related budget and any      revisions agreed by the Contractor, the Contractor shall proceed to      implement the said Appraisal Programme. During this appraisal period,      Contractor shall endeavour to complete gas sales agreements whether with      the Government or other buyers. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.5.4      If on the basis of the results of the Appraisal Programme, the Contractor      is of the opinion that NANG has been discovered in commercial      quantities: |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | It      shall submit to the Management Committee, as soon as practicable but not      later than sixty (60) months from the date of notification of the      aforementioned Discovery, the notification for declaration of the      Discovery as a Commercial Discovery and approval of the proposed      Development Area. Such Development Area may either be a new Development      Area or a modification of an existing Development Area so as to encompass      the proposed Commercial Discovery within its boundaries based on the      report submitted. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Where      the Contractor has submitted notification for the declaration of a      Discovery as a Commercial Discovery, the Management Committee shall review      the Contractor's proposal for the commercial utilisation of the NANG in      the domestic market or elsewhere and in the context of Government's policy      on gas utilisation and the chain of activities required to bring the NANG      from |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c) | The      Contractor shall within twelve (12) months of the declaration of the      Discovery as a Commercial Discovery, submit a Development Plan to the      Management Committee for its approval. Such Development Plan shall be      supported by all relevant information including, inter alia, the      information required in Article9.7. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | If      the Management Committee is unable to agree on the Development Plan within      one hundred eighty (180) days of submission, the Contractor shall be      entitled to submit such Development Plan directly to the Government for      approval. Government shall respond to the said submission within sixty      (60) days of its receipt. If the Government disapproves the Contractor's      proposed plan or plans, the Government shall state in writing the reasons      for such disapproval and the Contractor shall have the right to resubmit      the said proposal. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | When      the Management Committee or the Government approves the Contractor's      comprehensive plan or plans for development of a Commercial Discovery for      the utilisation of NANG in the domestic market or elsewhere, the said      Discovery shall be promptly developed by the Contractor in accordance with      the approved plan which shall be the Development  Plan. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.5.5 | In      the event the Contractor does not commence development of such Discovery      within ten (10) years from the date of notification of the Discovery, the      Contractor shall relinquish its rights to develop such Discovery and the      area relating to such Discovery shall be excluded from the Contract      Area. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 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 Sub-contractors 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 | Contractor      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 Contractor shall, in consultation      with the Licensee, 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 | Pursuant      to Article 22.2, Contractor shall associate and involve mutually agreed      numbers of the Licensee's personnel in the technological aspects of the      then ongoing Petroleum Operations without charge of a fee for such      association or involvement. Such aspects shall  include: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 22.4 | Neither      Party shall be obliged to disclose by Virtue of this Article 22 any data,      process or information, whether owned by itself and of its Affiliates or a      third party of a proprietarynature. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.5 | At      the request of the Government or a Government company, the Foreign      Companies shall separately endeavour to negotiate in good faith, technical      assistance agreements with the Government or a Government company 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 a Government company. 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 otherterms; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | co-operate      with domestic companies in India to enable them to develop skills and      technology to service the petroleumindustry; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

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

| 23.2 | 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 ManagementCommittee. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.3 | Within      one hundred and twenty (120) days after the end of each Calendar Year, the      Contractor shall provide the Government with a report outlining its      achievements in utilising Indian resources during that Calendar      Year. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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, obtain and maintain      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 good petroleum      industry practices, and shall furnish to the Government certificates      evidencing that such coverage is in effect. Such insurance policies shall      include the Government and the Licensee as additional insured and shall      waive subrogation against Government and the Licensee. 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 Operation; 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, subject, however, to Article  3.7; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (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, the Licensee 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; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 24.1.2 | The      Contractor shall require its Subcontractors to obtain and maintain      insurance against the risks referred to in Article 24.1.1 relating mutatis      mutandis to Subcontractors. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| ARTICLE      - 25 |
|-------------------|

| RECORDS,      REPORTS,      ACCOUNTS AND AUDIT |
|------------------------------------------------|

| 25.1 | The      Contractor shall prepare and maintain 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. The      Contractor shall also keep representative samples of cores and      cuttings. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 one of the Parties comprising Contractor,      specifically designated for this purpose, at its business office in India,      in accordance with the AccountingProcedure. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.3 | The      annual audit of accounts shall be carried out on behalf of the Contractor      by a qualified, independent firm of recognised chartered accountants      registered in India and selected by the Contractor with the approval of      the Management Committee. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.4 | Accounts      together with the auditor's report thereon, shall be submitted to the      Parties for approval not later than the thirtieth (30th)      September following the FinancialYear. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.5 | Any      Party comprising the Contractor may, by giving notice to that effect to      the Operator not later than twenty four (24) months following the end of a      Year, undertake a separate audit of the accounts and the cost of such      audit shall be borne by the Party requiring such  audit. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.6 | Unless      a Party comprising the Contractor notifies the other Party or Parties, in      writing, before thirty-first (31st)      December following the Year in which the separate audit was conducted that      it has an objection to the accounts for which the separate audit was      conducted, such accounts shall be deemed to have been approved as on that      date. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.7 | Any      objection to the accounts raised by a Party comprising the Contractor      shall, unless settled by agreement between the Parties, be submitted for      determination by a sole expert in accordance with the provisions of      Article 33. If the matter is not submitted to a sole expert within thirty      six (36) months following the Year to which such objection relates, the      objection shall lapse. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.8 | 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. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.9 | 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 of the      statutes relating to taxation ofcompanies. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.10 | For      the purpose of any audit referred to in Articles 25.5 and 25.8, the      Operator or the Companies shall make available to the auditor all such      books, records, accounts and other documents and information as may be      reasonably required by theauditor. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 26.1 | The      Contractor shall, promptly after they become available, provide the      Licensee one reproducible copy of 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, parts of cores and production data as well as all      interpretative and derivative data including reports, analysis,      interpretations and evaluation prepared in respect of Petroleum Operations      (hereinafter referred to as "Data"). Data shall be the property of the      Licensee, provided, however, that the Companies 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 | Contractor      may, for use in Petroleum Operations, retain copies or samples of material      or information constituting the Data and, with the approval of the      Licensee, original material, except that where such material is capable of      reproduction and copies have been supplied to the Licensee. Contractor      may, subject to the right of inspection by the Licensee, export 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    Licensee. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.3 | Contractor      shall keep the Licensee currently advised of all developments taking place      during the course of Petroleum Operations and shall furnish the Licensee      with full and accurate information and progress reports relating to      Petroleum Operations (on a daily, monthly, yearly or other periodic basis)      as the Licensee or the Government may reasonably require, provided that      this obligation shall not extend to proprietary technology. Without      prejudice to the generality of the foregoing, the Contractor shall submit      regular Statements and reports relating to Petroleum Operations as      provided in Appendix C. Contractor shall meet with the Licensee and the      Government at a mutually convenient location to present the results of all      geological and geophysical work carried cut 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 otherParties. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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. advisors. data processing centres and      laboratories, where required for file 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 an interest hereunder of a      Party comprising the Contractor or in connection with a sale of stock      of a Party comprising theContractor; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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 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; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 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 confidential by the recipient. Prompt notice of disclosures made      by Companies pursuant to Article 26.5 shall be given to the      Licensee. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 open acreage or all exploration programme to      be conducted by a third party in another area, may be disclosed by the      Government for such purposes on conditions to be agreed upon between the      Government and the Contractor. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.8 | Where      an area ceases to be part of the Contract Area, the Contractor shall      continue to treat Data and information with respect to the said area as      confidential and shall deliver to the Licensee copies or originals of all      Data and information in its possession with respect to the said area. The      Government shall, however, have the right to freely use the said Data and      information thereafter. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.9 | The      Government and the Licensee shall at 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 under the Contract, 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 all facilities and privileges afforded to its own      personnel in the Development Area including the use of office space and      housing, free of charge, for a maximum period of one (1) man month per      year. The said representatives      shall be entitled to make a reasonable number of surveys, measurements,      drawings, tests and copies of documents, take samples, make reasonable use      of equipment and instruments of the Contractor provided that such      functions shall not      interfere with the Contractor's Petroleum  Operations. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.10 | 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 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 or      Gas the title whereof has passed to the Contractor or any other person in      accordance with the provisions of thisContract. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.2 | Title      to Crude Oil and/or Gas to which Contractor is entitled under this      Contract, and title to Crude Oil and/or Gas sold to Government or its      nominee by the Companies shall pass to the relevant party or, as the case      may be, to Government or its nominee at the Delivery Point. Contractor      shall be responsible for all costs and risks prior to the Delivery Point      and each party shall be responsible for all costs and risks associated      with such party's share after the Delivery Point and where the Government      or its nominee purchases all or some of the Companies' share of Crude Oil      or Condensate in accordance with Article 18, Government or its nominee      shall be responsible for all costs and risks in respect of the amount      purchased, after the DeliveryPoint. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 27.4 | Assets      purchased/acquired by the Contractor for use in Petroleum Operations shall      be owed by the Parties comprising Contractor in proportion to their      Participating Interest provided that the Licensee 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 Licensee's option      either on recovery of the costs of the assets or upon expiry or earlier      termination of the Contract. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.5 | 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, 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 the      Licensee subject, however, to Article27.5 |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.7 | Equipment      and assets no longer required for Petroleum Operations shall first be      offered to the Licensee at no cost and if not required by the Licensee,      shall be sold or exchanged by the Contractor, provided however that prior      consent of the Management Committee shall be obtained for each transaction      in excess of US $5,000 or such other amounts as may be agreed from time to      time, and such consent to be accorded within 90 days from the date of      application submitted by the Contractor in this behalf, and provided      further that the proceeds of sale shall be credited to Petroleum      Operations as provided in AppendixC. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 27 | Assets      required by the Licensee pursuant to the terms of this Article may be sold      or otherwise disposed of subject to the terms of this      Contract. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      - 28 |
|-------------------|

| ASSIGNMENT OF      INTEREST |
|-----------------------------|

| 28.1 | Subject      to the terms of this Article and other terms of this Contract, any Company      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 comparable to the assignor in terms      of financial standing and its capacity and ability to meet its obligations      hereunder, and is willing to provide an unconditional undertaking 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; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | the      requirements of Joint Operating Agreement have been    satisfied. |
|-----|----------------------------------------------------------------------------|

| 28.2 | An      application by a Company for consent to assign or transfer shall      accompanied by all relevant information concerning the proposed assignment      or transfer including detailed information on the proposed, assignee or      transferee and its share holding 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 (a) above. 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. The Government shall accord its approval or      reject the said application for assignment, in writing, within one hundred      eighty (18O) days of receipt of such application. In the event no written      communication rejecting the assignment is received by the Contractor, the      application shall be deemed to have been approved, after lapse of the said      one hundred eighty (180) days, subject to however that the said assignment      is meeting all other conditions laid down elsewhere in this      agreement. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.3 | Upon      assignment or transfer of its Participating 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. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 28.4 | Upon      prior notice to the Companies, a government company may assign or transfer      all or any part of its rights and interest under this Contract to any      other government company, authorised by the Government, to explore for and      exploit Petroleum in the ContractArea. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.5 | An      assignment or transfer shall not be made so as to reduce the Participating      Interest of a constituent of the Contractor, at any time, to less than ten      percent (10%) of the total Participating Interest of all the constituents      of the Contractor, except where such reduction would occur by virtue of a      transfer of a proportion of a Company’s interest to a Nominee of the      Government pursuant to Article 13, or where the Government, on the      recommendations of the Management Committee may, in special circumstances,      so permit. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      – 29 |
|-------------------------|

| FINANCIAL AND      PERFORMANCE GUARANTEES |
|-------------------------------------------|

| 29.1 | Each      of the Companies constituting the Contractor shall procure and deliver to      the Government within 45 days from the Effective Date of this Contract, in      respect of its ParticipatingInterest: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | an      irrevocable, unconditional bank guarantee from a reputable foreign or      domestic bank or financial institution of good standing in India,      acceptable to the Government, in favour of the Government and the      Licensee, for the amount specified in Article 29.2, in a form and      substance acceptable to theGovernment; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | a      financial and performance guarantee, from a Company of good financial      standing acceptable to the Government, in favour of the Government and the      Licensee, in the form and substance set out in Appendix  E; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.2 | The      amount of the guarantee referred to in Article 29.1(a) above shall be an      amount equal to thirty five percent (35%) of the Company's Participating      Interest share of the total estimated annual expenditure in respect of the      Work Programme to be undertaken by the Contractor in the Contract Area      during the relevant Year of a phase, subject to Article    29.3. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 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) | that,      at the end of the phase, the guarantee will be released in favour of the      Company on presentation to the bank of a certificate from the Licensee      that the obligation of the Contractor has been fulfilled and the guarantee      may be released. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.4 | If      the Contractor elects to proceed to the second and third phases      respectively of the Exploration Period, a bank guarantee for the      succeeding phase in terms of Article 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 cancelled by the      Government upon ninety (90) days written notice of its intention to do      so. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.6 | Notwithstanding      any change in the composition or share holding of the parent company      furnishing the guarantees herein, it shall, under no circumstances, be      absolved of its obligations contained in the guarantees furnished pursuant      to this Article. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      – 30 |
|-------------------------|

| TERMINATION OF      CONTRACT |
|------------------------------|

| 30.1 | Without      prejudice to the provisions of Article 30.6 or any other provisions of      this Contract, Companies 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. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.2 | This      Contract may, subject to the provisions herein below and Article 31, be      terminated by the Government upon giving ninety (90) days written notice      of its intention to do so in the following circumstances, namely, that a      Company: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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 any      mineral not authorised 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 international petroleum industry practice which, when so      extracted, were immediately notified to the Government and to the      Licensee; or |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | is      adjudged bankrupt by a competent court or enters into any agreement 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      Government is satisfied that the Company's performance under this Contract      would not be adversely affected thereby and has given its approval      thereto; or |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (f) | fails      to make any monetary payment under this Contract within the specified      period after the due date; or |
|-----|---------------------------------------------------------------------------------------------------------------------|

| (g) | fails      to comply with or contravenes the provisions of this Contract in a      material particular; or |
|-----|------------------------------------------------------------------------------------------------------------|

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

| (i) | on      notice of cancellation as provided in Article  29.5. |
|-----|--------------------------------------------------------------|

| 30.3 | This      Contract may also be terminated by the Government on giving the requisite      notice specified above if the events specified in Article 30.2 (c) and (d)      occur with respect to a company which has given a financial and      performance guarantee pursuant to Article 29 subject however to Article      30.4. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.4 | If      the circumstance or circumstances that give rise to the right of      termination under Article 30.2(f) or (g) or Article 30.3 are remedied by      the Contractor within the ninety (90) days period or such extended period      as may be granted by the Government, following the notice of the      Government's intention to terminate the Contract as aforesaid, such      termination shall not becomeeffective. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.5 | If      the circumstance or circumstances that would otherwise result in      termination are the subject matter of proceedings under Article 33, then      termination shall not take place so long as such proceedings continue and      thereafter may only take place when and if consistent with the arbitral      award. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 incurred and not discharged by the      Contractor prior to the date oftermination. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.7 | In      the event of termination pursuant to Articles 30.1, 30.2 or      30.3: |
|------|--------------------------------------------------------------------------------|

| (a) | the      Government may require the Contractor for a period not exceeding one      hundred and 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) | in      case of a Foreign Company, which is a constituent of the Contractor, it      shall, subject to the provisions hereof, have the right to remove and      export all its property, which has not vested in the Licensee 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 30.1, 30.2, or 30.3 or such longer period as may be mutually      agreed to between the Parties, the Contractor shall comply with Article      12.9 and perform any reasonably necessary action as directed by the      Government to avoid environmental damage or hazards to human life or 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      licence or lease granted to such Party, or in meeting any requirement of      the Act, the Rules or any licence or lease issued thereunder, 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 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. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3l      .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 other Parties 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 provided, however,      that the settlement of strikes or differences with employees shall be      within the discretion of the Party having the difficulty. The Party      affected shall promptly notify the other Parties 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 circumstances that 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 |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 31.7 | Notwithstanding      anything contained else where in this agreement. if an event of Force      Majeure occurs and is likely to continue for a period in excess of thirty      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 thecircumstances. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      – 32 |
|-------------------------|

| APPLICABLE LAW AND      LANGUAGE OF THE CONTRACT |
|--------------------------------------------------|

| 32.1 | This      Contract and any other subsequent agreements or contract based on or in      pursuance of or for better fulfillment of 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. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      – 33 |
|-------------------------|

| SOLE EXPERT,      CONCILATION 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 | Except      for matters which, by the terms of this Contract, the Parties have agreed      to refer to a sole expert and any other matters which the Parties may      agree to so refer, any dispute, difference or claim arising between the      Parties hereunder which cannot be settled amicably may, subject to Article      33.11, be submitted by any Party to arbitration pursuant to Article 33.3.      Such sole expert shall be an independent and impartial person of      international standing with relevant qualifications and experience      appointed by agreement between the Parties. 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 shall be final and binding on      the Parties and not subject to arbitration. If the Parties are unable to      agree on appointment of a sole expert. the matter may be referred to      arbitration. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.3 | Subject      to the provisions herein, the Parties hereby agree that any unresolved      dispute, difference or claim which cannot be settled amicably within a      reasonable time may, except for those referred to a sole expert under      Article 33.2 and subject to Article 33.11, be submitted to an arbitral      tribunal for final decision as hereinafter  provided. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.4 | The      arbitral tribunal shall consist of three arbitrators. The Party or Parties      instituting the arbitration shall appoint one arbitrator and the Party or      Parties responding shall appoint another arbitrator and both Parties shall      so advise the other Parties. The two arbitrators appointed by the Parties      shall appoint the third arbitrator who shall act as presiding      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 by the Chief Justice of India or any person or institution      designated by him within thirty (30) days of the receipt of such request      in case of an international commercial arbitration as defined in the      Arbitration & Conciliation Act 1996 and where Parties to the      arbitration comprise of only domestic companies/bodies, the appointment      of. the arbitrator referred in this sub-article shall be done by the Chief      Justice of the High Court having jurisdiction or any person or institution      designated by him within thirty (30) days of receipt of such      request. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.6 | If      the two arbitrators appointed by 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, the Chief Justice of India or any person or institution designated      him in case of an international commercial arbitration or the Chief      Justice of High Court or any person or institution in case of  an       arbitration  involving  only  domestic       companies  at  the  request  of       either |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

| 33.8 | The      decision of the arbitral tribunal, and, in the case of difference among      the arbitrators, the decision of the majority shall be final and binding      upon the Parties. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.9 | The      arbitration agreement contained in this Article 33 shall be governed by      the Arbitration & Conciliation Act, 1996 ("Arbitration Act''). In the      event of any conflict between the Arbitration Act and the provisions of      this Article 33, the provision of the Arbitration Act shall      prevail. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.10      The right to arbitrate disputes and claims under this Contract shall      survive the termination of thisContract. |
|-------------------------------------------------------------------------------------------------------------------------------|

| 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 8 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 the      dispute has not been resolved by conciliation within twenty one (21) days      or such longer period as may be agreed between the Parties of the date of      agreement by the Parties to submit such dispute to      conciliation. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.12 | The      venue of conciliation or arbitration proceedings pursuant to this Article,      unless the Parties otherwise agree, shall be 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 arbitral proceedings 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. Assessment of the costs of      arbitration including incidental expenses and liability for the payment      thereof shall be at the discretion of the  arbitrators. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      – 34 |
|-------------------------|

| ENTIRE      AGREEMENT, AMENDMENTS WAIVER AND      MISCELLANEOUS |
|-----------------------------------------------------------------|

| 34.1 | 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 Effective Date of this  Contract. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 34.2 | 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. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 34.3 | 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. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 34.4 | The      provisions of this Contract      shall inure to the benefit of and be binding upon the Parties and their      permitted assigns and successors ininterest. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 34.5 | 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. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 34.6 | 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. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      - 35 |
|-------------------|

| CERTIFICATES |
|--------------|

| 35.1 | Company      shall furnish, prior to execution of this Contract, a duly authorized copy      of a resolution properly and legally passed by the Board of Directors of      each Company authorizing its Managing Director or any other person duly      constituted with power of attorney 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 authorize the      execution, delivery and performance of the  Contract. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      – 36 |
|-------------------------|

| NOTICES |
|---------|

| 36.1 | 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 the 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) | To      the President of      India through the |
|-----|-------------------------------------------------|

| 36.2 | Notices      when given in terms of Article 36.1 shall be effective when delivered if      offered at the address of the other Parties as under Article 36.1 during      business hours on working days and, if received outside business hours, on      the next following working day. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 36.3 | Any      Party may, by reasonable notice as provided hereunder to the other      Parties, change its address and other particulars for notice      purpose. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| IN      WITNESS WHEREOF, the representatives of the Parties to this Contract being      duly authorised have hereunto set their hands and have executed these      presents this 12th day of April2000. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Signed      for and on behalf of The      President of India |
|--------------------------------------------------------------|

| By: |
|-----|

| Name: |
|-------|

| in      presence of: |
|----------------------|

| Name: |
|-------|

| Signed      for and on behalf of Oil      and Natural Gas CorporationLimited |
|------------------------------------------------------------------------------|

| By: |
|-----|

| Name: |
|-------|

| in      presence of : |
|-----------------------|

| Name: |
|-------|

| Signed      for and on  behalf of Gujarat State Petroleum      Corporation Ltd. |
|------------------------------------------------------------------------------------------------|

| By: |
|-----|

| Name: |
|-------|

| in      presence of : |
|-----------------------|

| Name: |
|-------|

| Signed      for and on behalf of      Hindustan Oil Exploration Co.Ltd. |
|-------------------------------------------------------------------------|

| By:       |
|-----------------------------------------|

| Name: |
|-------|

| in      presence of : |
|-----------------------|

| Name: |
|-------|

----

| APPENDIX      A |
|-----------------|

| DESCRIPTION      OF CONTRACT AREA |
|-----------------------------------|

| Excluding      the area bounded by the followingco-ordinates: |
|---------------------------------------------------------------|

| Excluding      the area bounded by the followingco-ordinates: |
|---------------------------------------------------------------|

----

| APPENDIX      B |
|-----------------|

| MAP      OF CONTRACT AREA CB-ON/2 |
|-----------------------------------|

----

| APPENDIX      C |
|-----------------|

| ACCOUNTING      PROCEDURE |
|---------------------------|

| PRODUCTION      SHARING CONTRACT |
|----------------------------------|

| BETWEEN |
|---------|

| THE GOVERNMENT OF      INDIA |
|------------------------------|

| ONGC |
|------|

| AND |
|-----|

| GSPC |
|------|

| HOEC |
|------|

----

| APPENDIX      C |
|-----------------|

| TABLE OF      CONTENTS |
|------------------------|

| Sections | Contents |
|----------|----------|

| Section      1: | General      Provisions |
|-----------------|-------------------------|

| l.      l | Purpose |
|-----------|---------|

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

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

| l.4 | Documentation      and Statements to be submitted by theContractor |
|-----|--------------------------------------------------------------------|

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

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

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

| 1.8 | Arms      Length Transaction |
|-----|------------------------------|

| 1.9 | Audit      and Inspection Rights of theGovernment |
|-----|---------------------------------------------------|

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

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

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

| 3.1.2 | Labour      and Associated Costs |
|-------|----------------------------------|

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

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

| (i)      Third party Contracts |
|--------------------------------|

| (ii)      Affiliated Company Contracts |
|----------------------------------------|

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

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

| 3.1.7 | Environmental      Studies |
|-------|----------------------------|

| 3.1.8 | Materials: |
|-------|------------|

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

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

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

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

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

----

| 3.2 | Costs      Not Recoverable and Not Allowable Under the  Contract |
|-----|------------------------------------------------------------------|

| 3.3 | Other      Costs Recoverable and Allowable Only with Management Committee      Approval |
|-----|-----------------------------------------------------------------------------------------|

| 3.4 | Incidental      Income |
|-----|------------------------|

| 3.5 | Non-duplication      of charge and credits |
|-----|--------------------------------------------|

| Section      4: | Records      and Inventories of Assets |
|-----------------|----------------------------------------|

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

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

| 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: | Production      Sharing Statement |
|-----------------|-----------------------------------|

| Section      10: | End      of Year Statement |
|------------------|----------------------------|

| Section : | Budget      Statement |
|----------------|-----------------------|

----

| ACCOUNTING      PROCEDURE |
|---------------------------|

| SECTION      1 |
|----------------|

| GENERAL      PROVISIONS |
|-------------------------|

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

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

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

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

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

| 1.4 | Documentation      and Statements to be submitted by theContractor |
|-----|--------------------------------------------------------------------|

----

| 1.4.1 | Within      sixty (60) 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 sub­categories of costs and income      specified in Sections 2 and 3 and shall be in accordance with generally      accepted standards and recognized accounting systems and consistent with      normal petroleum industry practice and procedures for joint venture      operations. 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. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (vi)      End of Financial Year Statement (see Section 10 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, Operator     shall |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

| 1.6.1 | For      converting transactions 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 Reserve 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 at the average      of the selling and buying rates for the day on which the transaction      occurred. If there were no such quotations on the date of transaction,      then the average rate on the last banking date prior to such date shall be      applicable. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 convening 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 Articles 13.6 and 18.5 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      thirty (30) days from the date of receipt of the  invoice. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.7.3 | All      sums due by one Party to the other under the Contract shall be made on or      before the due date. If these sums are not received by the due date, the      unpaid |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

| 1.9.1 | Without      prejudice to statutory rights, the Government, upon at least fifteen (15)      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      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 Financial Year, within two (2)      years (or such longer period as may be required in exceptional      circumstances) from the end of such Financial  Year. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.9.2 | The      Government may, undertake the conduct of the audit either through its own      representatives or through a qualified firm of recognized chartered      accountants,  registered in India, appointed for the purpose by      the Government. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 Contractor's activities under the Contract and all books of account,      accounting, entries, materials records and inventories, vouchers,      payrolls, invoices and any other documents, correspondences 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 verifications 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. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 inquestion. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.9.5 | The      Contractor shall answer any notice of exception under Section 1.9.4 within      one hundred and twenty (l20) 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. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.9.6 | All      agreed adjustments resulting from an audit and all adjustments required by      prevailing exceptions shall be promptly made in the Contractor's accounts      and any consequential adjustments to the Government's or the Nominee's      entitlement to Petroleum shall be made as promptly as      practicable. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.9.7 | 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 Article 33.2. 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 |
|------|-------------------------------------------|

|   | 1.10.1      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. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.10.2 | Following any Discovery of      Petroleum in the Contract Area, the Parties shall meet in order to      establish specific principles and procedures for identifying all costs,      expenditures, receipts and income on a Development Area by Development      Area (and if appropriate, separately for Oil and Associated Natural Gas      within a Development Area) basis, it being understood that costs,      expenditures, receipts and income which do not uniquely arise in respect      of any one Development Area shall be apportioned between Development Area      in a reasonable, equitable and consistent  manner. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| SECTION      2 |
|----------------|

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

| 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, analyses and studies and their      interpretation. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 2.2.3 | Labour,      materials, supplies and services used in drilling and evaluating Wells      with the object of finding Petroleum or in drilling Appraisal Wells      provided that if such Wells are completed as producing Wells, 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 |
|-----|------------------------|

| 2.3.1 | 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. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3.2 | Completing      of 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 or other chemicals or solvents to      enhance recovery of Petroleum and re-entry, completion or working over of      existing Wells. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3.3 | Purchase,      installation and constriction of production, transport, delivery and      storage facilities for Petroleum from a Development Area, such as      pipelines, flow lines, production and treatment units, wellhead equipment,      subsurface equipment, delivery and measurement facilities, enhanced      recovery systems, onshore platforms, export terminals and piers, harbours      and related facilities and access roads for production      activities. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3.4 | Any      geological and geophysical activities in connection with approved      Development Operations. |
|-------|---------------------------------------------------------------------------------------------------------|

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

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

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

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

| 2.6.2 | an      overhead charge, to be charged on monthly basis, for services rendered by      the parent company outside India or an Affiliate of the Operator outside      India 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 at the rate of one      percent (1%) of total Contract Costs incurred and qualifying for recovery      pursuant to section 3. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 3.1.2 | Labour      and Associated Labour Costs |
|-------|-----------------------------------------|

| Costs      of salaries and wages, including bonuses, of the Contractor's employees      directly and necessarily engaged in the conduct of the Petroleum      Operations under the Contract, whether temporarily or permanently      assigned, irrespective of the location of      such employees, it being understood that in the case of those personnel      only a portion of whose time is wholly dedicated to Petroleum Operations      under the Contract, only that pro rata portion of applicable salaries,      wages, and other costs, as specified in Sections 3.1.2(c), (d), (e), (f)      and (g), shall be charged and the basis of such pro rata allocation shall      be specified. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

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

| 3.1.6 | Office,      Shore Bases and MiscellaneousFacilities |
|-------|------------------------------------------------------|

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

| 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 in 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 in the open  market; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (bb) | used      material which is in sound and serviceable condition and is suitable for      re-use 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. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

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

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

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

| (ii) | expenditures      in respect of any | financial      transactions 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 contractualobligations; |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v) | attorney's      fees and other costs and charges in connection with arbitration      proceedings between the Parties 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 where Contractor has elected to self insure,      or has under-insured; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

----

| (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; |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| 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. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.1.2 | The      Contractor shall furnish particulars to the Government by notice in      writing as provided in the Contract, at six (6) monthly.      intervals of all assets acquired by the Contractor to be used far or in      connection with Petroleum      Operations during the period immediately preceding the delivery of such      notice. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 4.2.1 | The      Contractor shall make an inventoryfar: |
|-------|-------------------------------------------------|

| 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, failing      which it shall be deemed that the inventory taken by the Contractor is      binding on all the Parties. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 doso. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| SECTION      5 |
|----------------|

| PRODUCTION      STATEMENT |
|---------------------------|

| 5.l | From      the date of first production of Petroleum from the Development Area, the      Contractor shall submit a Monthly Production Statement to Government      showing the following information separately for each producing      Development Area 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. |
|-------|------------------------------------------------------------------------------------------------|

| 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 quantitiesreinjected. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 5.1.7 | The      quantities of Natural Gas flared andvented. |
|-------|------------------------------------------------------|

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

| 5.1.9 | The      quantity 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 Development Area. |
|------------------------------------------------------------------------------------------------------------------|

| 5.1.12 | The      Gas/Oil ratio for each Development      Area for the relevant Month. |
|--------|------------------------------------------------------------------------------------|

| 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 weight (metric      tonnes). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3 | The      Government may direct in writing that the Contractor includes other      reasonable particulars relating to the production of Petroleum in its      Monthly Production Statement, and the Contractor shall comply with such      request. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.4 | The      Production Statement for each Month shall be submitted to Government no      later than ten (10) 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 realized therefore by the Contractor as a      result of sales of Crude Oil and Condensate to third parties (with any      sales to Government being separately identified) made during the Month in      question. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.1.2 | The      quantities, prices and receipts realized therefore by the Contractor as a      result of sales of Crude Oil and Condensate made during the Month in      question, other than to thirdparties. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 premium, 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 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 Natural Gas and such other relevant      information as may be required byGovernment. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 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. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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. The Statement shall      distinguish between Exploration Costs, Development Costs and Production      Costs and shall separately identify all significant items of cost and      expenditure as itemized 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      itemized in Section 3.4 of this Accounting Procedure. If the Government is      not satisfied with the degree of desegregation 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 Financial Year in      question. |
|-------|------------------------------------------------------------------------------------------|

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

| 7.1.4 | Variations      between budget forecast and latest forecast and explanations of material      variations. |
|-------|-----------------------------------------------------------------------------------------------------------|

| 7.2. | The      Statement of Costs, Expenditures and Receipts of each Quarter shall be      submitted to Government no later than twenty-one (21) 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 for each Development Area 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 off the Contractor for the      Quarter in question. |
|-------|-------------------------------------------------------------------------------------------------------------------|

| 8.1.5 | Contract      Costs recovered during the Quarter inquestion. |
|-------|--------------------------------------------------------------|

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

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

| 8.2 | Where      necessary, the information to be provided under Section 8.1 shall be      identified separately for each Development Area for Crude Oil, Condensate,      Associated Natural Gas and Non Associated Natural  Gas. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.3 | The      cost recovery information required pursuant to subsection 8.1 above shall      be presented in sufficient detail so as to enable Government to identity      how the cost of assets are being recovered for the purposes of Article 27      of the Contract. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.4 | 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 |
|----------------|

| PRODUCTION      SHARING STATEMENT |
|-----------------------------------|

| 9.1 | The      Contractor shall prepare, with respect to each Quarter, a Production      Sharing Statement for each Development Area containing the following      information: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.1.1 | The      calculation of the applicable Net Cash Income, as defined in Appendix D of      this Contract, for the Quarter inquestion. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------|

| 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 15, the appropriate percentages of Profit      Petroleum for the Government and Contractor in the Quarter in      question. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 9.1.6 | The      actual amounts of Petroleum taken by the Government and 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 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 previousQuarters. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | Where      necessary the information to be provided under Section 9.1 shall be      identified separately for Crude Oil and Condensate as distinct from      Associated Natural Gas and Non Associated Natural  Gas. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.3 | The      Production Sharing Statement shall be submitted to Government not later      than thirty (30) days after the end of such  Quarter. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

----

| SECTION      10 |
|-----------------|

| END      OF FINANCIAL YEAR STATEMENT |
|--------------------------------------|

| 10.1 | The      Contractor shall prepare a definitive End of Financial Year Statement for      each Development Area. 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 Production Sharing Statement, but      shall be based on actual quantities of Petroleum produce,. 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. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | The      End of Financial Year Statement for each Financial Year shall be submitted      to Government within ninety (90) days of the end of such Financial      Year. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| SECTION      11 |
|-----------------|

| BUDGET      STATEMENT |
|-----------------------|

| 11.1 | The      Contractor shall prepare a Budget Statement for each Financial Year for      each Development Area. This Statement shall distinguish between budgeted      Exploration Cost, Development Costs and Production Costs and shall show      the following: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.1.1 | Forecast      costs expenditures and receipts for the Financial year in      question. |
|--------|----------------------------------------------------------------------------------------|

| 11.1.2 | A      schedule showing the most important individual items of total costs,      expenditures and receipts for the said Financial  Year. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2 | The      Budget Statement shall be submitted to Government with respect to each      Financial Year not later than ninety (90) days before the start of the      said Financial Year provided that in the case of the Financial Year in      which the Effective Date falls, the Budget Statement shall be submitted      within ninety (90) days of the EffectiveDate. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| APPENDIX      D |
|-----------------|

| CALCULATION      OF THE INVESTMENT MULTIPLE FOR PRODUCTION SHARING  PURPOSES |
|------------------------------------------------------------------------------|

| 1. | In      accordance with the provisions of Article 15, the share of the Government      and the Contractor, respectively, of Profit Petroleum from any Development      Area in any Year shall be determined by Investment Multiple earned by the      Companies from that Development Area in 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. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Investment      Multiple |
|--------------------------|

| 2. | The      "Net Cash Income" of the Companies from a Development Area in particular      Year is the aggregate value of thefollowing: |
|----|-------------------------------------------------------------------------------------------------------------------------------------|

| i) | Cost      Petroleum entitlement of the Companies as provided in Article      14; |
|----|----------------------------------------------------------------------------------|

|   | plus |
|--------|------|

| ii) | Profit      Petroleum entitlement of the Companies as provided in Article      15; |
|-----|------------------------------------------------------------------------------------|

|   | plus |
|--------|------|

| iii) | the      Companies' share of all incidental income (of the type specified in      Section 3.4 of the Accounting Procedure) arising from Petroleum Operations      and apportioned to the DevelopmentArea; |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | less |
|--------|------|

| iv) | the      Companies' share of all Production Costs incurred on or in the Development      Area; |
|-----|------------------------------------------------------------------------------------------------|

|   | less |
|--------|------|

| v) | the      notional income-tax, determined in accordance with paragraph 8 of this      Appendix, payable by the Companies on profits and gains from the      Development Area. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | The      "Investment" made by the Companies in a Development Area in particular      Year is the aggregate value for the yearof: |
|----|----------------------------------------------------------------------------------------------------------------------------------|

| i) | the      Companies' share of Exploration Costs incurred in the    Contract | Area      and apportioned to the Development area in the same proportion that such      costs recovered pursuant to Article14.4; |
|----|----------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|

| ii) | The      Companies' share of Development Costs incurred on or in the Development      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 bedisregarded. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | The      Investment Multiple ratio earned by the Companies as at the end of any      Year from any Development Area 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 on or in the Development Area) 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 firstincurred). |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Profit      Petroleum from the Development 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 Companies as at the end of the previous      Year pursuant to Articles15.2-15.7. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| General |
|---------|

| 7. | The      applicable cash flows set out in paragraphs 2 and 3 of this Appendix shall      be identified and calculated in respect of each Development      Area. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | In      determining the amount of notional income tax to be deducted in the      applicable cash flows specified in paragraph 2 of this Appendix, a      notional income tax liability shall be determined for each Company      comprising the Contractor, as if the conduct of Petroleum Operations by      the Company in that Development Area constituted the sole business of the      Company and as if the provisions of the Income Tax Act, 1961, with respect      to the computation of income tax on the basis of the income and deductions      provided for in Article 16 of this Contract were accordingly applicable      separately to that Development Area, disregarding any income, allowances,      deductions, losses or set-off of losses from any other Development Area or      business of the Company. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| APPENDIX      E |
|-----------------|

| FORM      OF PARENT FINANCIAL AND PERFORMANCEGUARANTEE |
|--------------------------------------------------------|

|  (to      be furnished pursuant to Article 29 of the  Contract) |
|----------------------------------------------------------------------|

| NOW,      THEREFORE, this Deed hereby provides asfollows: |
|-----------------------------------------------------------|

| 1. | The      Guarantor hereby unconditionally and irrevocably guarantees to the      Government and the Licensee that it will make available, or cause to be      made available, to XYZ Company or any other directly or indirectly owned      Affiliate of XYZ Company to which any part or all of XYZ Company's rights      or interest under the Contract may be assigned ('Affiliate Assignee'),      financial, technical and other resources required to ensure that XYZ      Company or any Affiliate Assignee can carry out its obligations as set      forth in the Contract. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | The      Guarantor further unconditionally and irrevocably guarantees to the      Government and the Licensee the due and punctual compliance by XYZ Company      or any Affiliate Assignee, of any obligations of XYZ Company or any      Affiliate Assignee under theContract. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | The      Guarantor hereby undertakes to the Government and the Licensee that if XYZ      Company or any Affiliate Assignee, shall, in any respect, fail to perform      its obligations under the Contract or commit any breach of such      obligations, then the Guarantor shall fulfill or cause to be fulfilled the      said obligations in place of XYZ Company or any Affiliate Assignee, and      will indemnify the Government and the Licensee  against all losses,       damages, costs,  expenses  or  otherwise  which       may |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 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, or its Affiliate Assignee,      under the Contract or as a result of any decision or award made by any      expert or arbitral tribunalthereunder. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | This      guarantee shall not tie affected by any change in the articles of      association and byelaws of XYZ Company or the Guarantor or in any      instrument establishing the Company or  Guarantor. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | The      liabilities of the Guarantor shall not be discharged or affected by (a)      any time indulgence, waiver or consent given to XYZ Company; (b) any      amendment to the Contract or to any security or other guarantee or      indemnity to which XYZ Company has agreed; (c) the enforcement or waiver      of any terms of the Contract or of any security, other guarantee or      indemnity; or (d) the dissolution, amalgamation, reconstruction or are      organisation of XYZ Company. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | This      guarantee shall be governed by and construed in accordance with the laws      of India. |
|----|---------------------------------------------------------------------------------------------------|

| _____________________ | ____________________________ |
|-----------------------|------------------------------|

| Secretary | President      & Director |
|-----------|-------------------------------|

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

----