Document:

Exhibit 10.1

 

MWE Draft of Redacted Copy – April 8,
2022

 

CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN REDACTED BECAUSE CONFIDENTIAL
TREATMENT FOR SUCH INFORMATION HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION,
AND THE INFORMATION HAS BEEN MARKED AT THE APPROPRIATE PLACE WITH BRACKETS AND THREE ASTERISKS [***].

 

 

PETROLEUM AGREEMENT

 

BETWEEN

 

THE GOVERNMENT OF THE REPUBLIC

OF
NAMIBIA

 

AND

 

NIIKELA EXPLORATION (PTY) LTD

 

AND

 

ELEPHANT
OIL LTD

 

AND

 

NAMCOR E&P EXPLORATION AND

PRODUCTION
(PTY) LTD

 

BLOCK 1919

 

     

     

    

 

 

THIS PETROLEUM AGREEMENT is made and entered
between

 

THE GOVERNMENT OF THE REPUBLIC OF NAMIBIA

 

MINISTRY OF MINES AND ENERGY

 

     

     

    

 

(Herein represent by The Honorable Tom Alweendo
in his capacity as the Minister of the Ministry of Mines and Energy),

 

(Hereinafter referred to as the “Government”)

 

And

 

Niikela Exploration (PTY) LTD

 

(Hereinafter represented by Ms. Mbute Rusa Andreas,
as duly authorized by the Board of Directors of ...Niikela Exploration. (PTY) LTD in terms of the resolution passed on this 7th
day of September 2020. (Hereinafter referred to as “Niikela”)

 

And

 

Elephant Oil LTD

 

(Hereinafter represented by ...Mr. Matthew
B. Lofgran, as duly authorized by the Board of Directors of Elephant Oil LTD in terms of the resolution passed on this 15th
day of January 2013. (Hereinafter referred to as “Elephant”)

 

And

 

NAMCOR E&P EXPLORATION AND PRODUCTION
(PTY) LTD

 

(Hereinafter represented by Mr. Immanuel Mulunga,
as duly authorized by the Board of Directors of ... NAMCOR EXPLORATION AND PRODUCTION (PTY) LTD in terms NAMCOR E&P’s Schedule
of Authority (Hereinafter referred to as “NAMCOR E&P”)

 

(Hereinafter collectively referred to as the “Company”)

 

PREAMBLE

 

WHEREAS all rights in relation to the exploration
for, the production and disposal of, and the control over, Petroleum in or upon any Land in Namibia vest in the State;

 

AND WHEREAS the Petroleum (Exploration
and Production) Act, 1991, provides for the exploration for, and the production and disposal of, Petroleum under a licence issued in terms
of that Act;

 

AND WHEREAS Niikela, Elephant and NAMCOR
E&P have applied for an Exploration Licence and intends, in the event of a Discovery of Petroleum of a commercial interest made by
it, to apply for a Production Licence and to carry on Production Operations and to sell or otherwise dispose of Petroleum recovered;

 

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AND WHEREAS the Minister of Mines and Energy
is empowered to grant and issue Exploration Licences and Production Licences, subject to such terms and conditions as may, in addition
to the terms and conditions set out in section 14 of the said Act, be agreed upon in terms of section 13 thereof;

 

AND WHEREAS the Minister is prepared to
grant such application on certain terms and conditions;

 

NOW THEREFORE it is hereby agreed at WINDHOEK
on this ....... day of ....................... 2021 between:

 

THE GOVERNMENT OF NAMIBIA (“Government”)

(Herein represented by its Minister of Mines and
Energy)

-and-

 

Niikela Exploration (PTY) LTD

 

And

 

Elephant Oil LTD

 

And

 

NAMCOR EXPLORATION AND PRODUCTION (PTY) LTD

 

THAT the Minister of Mines and Energy shall
cause-

 

(a) an Exploration Licence to be issued in accordance
with the provisions of section 34 of the said Petroleum (Exploration and Production) Act, 1991, as amended, to the Company upon signature
of this Agreement and delivery by the said Company to the Minister of Mines and Energy of the Bank guarantee and the performance guarantee
referred to in clauses 4 and 30 of the Agreement; and

 

(b) in the event that a Discovery of a commercial
interest is made in the area in respect of which such Exploration Licence has been issued and a Petroleum Field is declared under section
42 of the said Petroleum (Exploration and Production) Act, 1991, pursuant to such Discovery, upon an application made in terms of section
46 of that Act a Production Licence to be issued in accordance with the

provisions of section 47(1)(a) of that Act to
the said Company.

 

THAT the aforesaid Exploration Licence
and, when issued, Production Licence shall, in addition to the terms and conditions contained in the said Petroleum (Exploration and Production)
Act, 1991, and the Petroleum (Taxation) Act, 1991, be subject to the terms and conditions set out in the Schedule hereto.

 

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SCHEDULE

 

ARRANGEMENT OF CLAUSES

 

Clause

 

1. Definitions

2. Address and other particulars of Company

3. Duration of Exploration Licence

4. Minimum exploration work programme

5. Technical Advisory Committee

6. Work programme and budget

7. Relinquishment

8. Discovery and development of Petroleum

9. Application for Production Licence

10. Sole risk

11. Environmental protection

12. Work practices and carrying out of operations

13. Royalty and annual charges

14. Taxation

14A. Optional Clause on Participation

15. Valuation of Namibian Crude Oil

16. Natural Gas

17. Insurance and assets

18. Measurement of Petroleum

19. Accounts and audits

20. Records, reports and ownership of data

21. Confidentiality of data

22. Employment and training

23. Namibian goods and services

24. Domestic supply obligation

25. Unit development

26. Termination

27. Vis major

28. Assignation

29. Arbitration

30. Performance guarantee

31. Entire agreement and amendments

32. Waiver

33. Applicable law

34. Notices

 

ANNEXURE 1: Description of Licence Area

ANNEXURE 2: Map of Licence Area

ANNEXURE 3: Bank guarantee

ANNEXURE 4: Accounting procedure

 

ANNEXURE 5: Performance guarantee

ANNEXURE 6: Principles governing the training
scheme of the Ministry of Mines and Energy

ANNEXURE 7: Principles governing the use of funds
paid to NAMCOR E&P for environmental studies.

 

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Clause 1

 

Definitions

 

		1.1	In this Agreement, unless the context indicates otherwise:

 

		(a)	“Affiliate”, in relation to the Company, means any company holding directly or indirectly a
majority of shares in the Company or any company which is controlled directly or indirectly by such first-mentioned company;

 

		(b)	“Appraisal Well” means any Well drilled after a Discovery of Petroleum has been made in the
Licence Area for purposes of determining the quantity of Petroleum in the Petroleum Reservoir to which such Discovery relates;

 

		(c)	“Associated Natural Gas” means Natural Gas produced from any Well in the Licence Area from which
Crude Oil is predominantly produced and which is separated from Crude Oil in accordance with Good Oilfield Practices, including the free
gas cap, but shall exclude any liquid hydrocarbons extracted from such gas;

 

		(d)	“Barrel” means 42 United States gallons liquid measure, corrected to a temperature of 60 degrees
Fahrenheit;

 

		(e)	“Block” means a Block, as defined in section 1(1) of the Petroleum Act;

 

		(f)	“Calendar Month” means any of the 12 months of the Calendar Year;

 

		(g)	“Calendar Year” means a period of a year commencing on the first day of January in every year;

 

		(h)	“Commissioner” means the Commissioner defined in section 1(1) of the Petroleum Act;

 

		(i)	“Company” means the Company, which is a Party or, in the case of a joint venture, the Companies
which are parties to this Agreement, and includes any other company to which the Company has assigned its interest or any part thereof
in relation to its Exploration Licence or in its Production Licence;

 

		(j)	“Companies Act” means the Companies Act, 1971 (Act No. 61 of 1971);

 

		(k)	“Crude Oil” means any Petroleum which is in a liquid state at the wellhead or gas-oil separator
or which is extracted from Natural Gas in a plant, including distillate and condensate, and which has been produced from the Licence Area;
provided however, that in clause 24 and where the context so admits, in clause 15, a reference to crude oil does not necessarily imply
that it has been produced from the Licence Area;

 

		(l)	“Crude Oil Produced and Saved” means Crude Oil produced by the Company under a Production Licence,
but shall not include any such Crude Oil which has been unavoidably lost or lawfully used in connection with operations for the recovery
of Petroleum;

 

		(m)	“Crystalline Basement”, for purposes of clause 4, means any igneous or metamorphic rock excluding
sills, dykes and similar subsurface intrusions or any stratum 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;

 

		(n)	“Decommissioning Plan” means the package of measures proposed by the Company pursuant to s.46(2)(viA)
of the Petroleum Act to be taken after cessation of production operations to remove or otherwise deal with all installations, equipment,
pipelines and other facilities, whether on shore or off shore, erected or used for purposes of such operations and to rehabilitate land
disturbed by way of such operations, reviewed pursuant to s.68 A(1) and either approved or revised by the Minister pursuant to s.68A(2)
or 68A(3) of the Petroleum Act.

 

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		(o)	“Development Operations” means Development Operations, as defined in section 1 of the Taxation
Act;

 

		(p)	“Development Plan” means the proposed programme of production and of processing of Petroleum
submitted in terms of section 46(2) of the Petroleum Act;

 

		(q)	“Discovery” means a Discovery as defined in section 1 of the Petroleum Act;

 

		(r)	“Environmental Damage” includes any damage or injury to, or destruction of, air or soil or
water or any plant or animal life, whether in the sea or in any other water or on, in or under Land;

 

		(s)	“Exploration Area” means an Exploration Area as defined in section 1(1) of the Petroleum Act;

 

		(t)	“Exploration Licence” means an Exploration Licence as defined in section 1(1) of the Petroleum
Act;

 

		(u)	“Exploration Operations” means Exploration Operations as defined in section 1(1) of the Petroleum
Act;

 

		(v)	“Exploration Period” means the Initial Exploration Period, the First Renewal Exploration Period
or the Second Renewal Exploration Period;

 

		(w)	“Exploration Well” means a Well drilled in the course of Exploration Operations, but shall not
include an Appraisal Well;

 

		(x)	“First Renewal Exploration Period” means the period for which the Exploration Licence issued
to the Company has been renewed for the first time under section 34 of the Petroleum Act;

 

		(y)	“Good Oilfield Practices” has the meaning assigned to it in section 1(i) of the Petroleum Act;

 

		(z)	“Immovable Asset” means property which can be touched but which cannot be moved, and includes
buildings, fixtures or improvements in or over Land and the right of occupation thereof;

 

		(aa)	“Inflation Factor” means the figure, expressed to the fourth place of decimals, obtained by
dividing the Price Index as reported for the first time in the monthly publication “International Financial Statistics” of the
International Monetary Fund in the section “Prices, Production, Employment” for the month in which this Agreement has been signed
by the Price Index first so reported for the month in which the expenditure in question has been so incurred or, for purposes of clause
22.4, the month for which the annual adjustment is to be made;

 

		(ab)	“Initial Exploration Period” means the period commencing on the date of signature of this Agreement
and ending on a date not later than [***] as from such first mentioned date or such shorter period as may be determined in clause
3;

 

		(ac)	“Land” means Land as defined in section 1 (1) of the Petroleum Act;

 

		(ad)	“Licence Area” means a Licence Area as defined in section 1 of the Taxation Act to which the
licence of the Company relates and which is described in Annexure 1 and shown on the map contained in Annexure 2;

 

		(ae)	“Minister” means the Minister as defined in section 1(1) of the Petroleum Act;

 

		(af)	“Natural Gas” means Natural Gas, whether Associated or Non-Associated, and all its constituent
elements produced from any Well in the Licence Area and all non hydrocarbon substances therein;

 

		(ag)	“Natural Gas Produced and Saved” means Natural Gas produced by the Company under a Production
Licence, but shall not include any such Natural Gas which has been unavoidably lost or lawfully used in connection with operations for
the recovery of Petroleum;

 

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		(ah)	“Non-Associated Natural Gas” means Natural Gas other than Associated Natural Gas;

 

		(ai)	“Party” means the Government or the Company, as the case may be;

 

		(aj)	“Petroleum” means Petroleum as defined in section 1(1) of the Petroleum Act;

 

		(ak)	“Petroleum Act” means the Petroleum (Exploration and Production) Act, 1991;

 

		(al)	“Petroleum Data” has the meaning assigned to it clause 20.3 of this Agreement;

 

		(am)	“Petroleum Field” means a Petroleum Field as defined in section 1(1) of the Petroleum Act;

 

		(an)	“Petroleum Operations” means Exploration Operations and Production Operations carried out in
or in connection with a Licence Area;

 

		(ao)	“Petroleum Produced and Saved” means Crude Oil and Natural Gas Produced and Saved.

 

		(ap)	“Petroleum Reservoir” means a Petroleum Reservoir as defined in section 1(1) of the Petroleum
Act;

 

		(aq)	“Price Index” means the value of the United States Industrial Goods Producer Price Index reported
for the first time for the year or, for purposes of clauses 4.7 and 22.5, the month in question in the monthly publication of the International
Monetary Fund known as the “International Financial Statistics” in the section titled “Prices, Production, Employment”;

 

		(ar)	“Production Area” means a Production Area as defined in section 1(1) of the Petroleum Act;

 

		(as)	“Production Licence” means a Production Licence as defined in section 1(1) of the Petroleum
Act;

 

		(at)	“Production Operations” means Production Operations as defined in section 1(1) of the Petroleum
Act;

 

		(au)	“Quarter” means a period of three consecutive Calendar Months commencing on the first day of
January, April, July or October of each Calendar Year;

 

		(av)	“Second Renewal Exploration Period” means the period for which the Exploration Licence issued
to the Company has been renewed for the second time under section 34 of the Petroleum Act;

 

		(aw)	“Site Restoration” means all activities required to return a site to its natural state or to
render a site compatible with its intended after use after cessation of Petroleum Operations in relation thereto, and shall include removal
of equipment, offshore and onshore structures and debris, establishment of compatible contours and drainage, replacement of top soil,
re-vegetation, slope stabilization or infilling of excavations;

 

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		(ax)	“Taxation Act” means the Petroleum (Taxation) Act, 1991;

 

		(ay)	“Trust Fund” means the trust fund referred to in s.68(B) of the Petroleum Act.

 

		(az)	“Well” means a Well as defined in section 1(1) of the Petroleum Act.

 

		1.2	For the purposes of the definition of “Affiliate”-

 

		(a)	a Company is directly controlled by any other company or companies if such company or companies hold shares
in such first-mentioned Company carrying in the aggregate the majority of votes exercisable at the Company’s general meetings;

 

		(b)	a particular Company is indirectly controlled by a company or companies (hereinafter referred to as the
parent company or companies) if a series of companies can be specified, beginning with the parent company, so related that each company
of the series, except the parent company or companies, is directly controlled by one or more of the companies earlier in the series.

 

		1.3	The headings to the respective clauses of this Agreement are used merely for convenience and shall not
form part of this Agreement.

 

		1.4	Unless the contrary intention appears, words importing the masculine gender include females and words
in the singular number include the plural, and words in the plural number include the singular.

 

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Clause 2

 

Address and other particulars of Company

 

	2.1	The Company’s Registration
	 	 

	2.1.1	Niikela is duly registered and incorporated as a company in accordance with the provisions of the Companies
Act in respect of which incorporation a certificate of incorporation No. .2020/0564.. dated ..07 September 2020.. has been issued.
	 	 

	2.1.2	Elephant is duly registered and incorporated as a company in accordance with the provisions of the Companies
Act in respect of which incorporation a certificate of incorporation No. 083.59.224. dated 14 January 2013 has been issued.
	 	 

	2.1.3	NAMCOR E&P is duly registered and incorporated as a company in accordance with the provisions of the
Companies Act in respect of which incorporation a certificate of incorporation No. .2000/170.

(In the case of a joint venture, amend
clause to include relevant particulars of each participating company)

 

	2.2	The Company’s Share Capital
	 	 

	2.2.1	The share capital of the Niikela is [***].
	 	 

	2.2.2	The share capital of the Elephant is [***].
	 	 

	2.2.3	The share capital of NAMCOR E&P is [***].

 

	2.3	The Company’s Registered address
	 	 

	2.3.1	The registered address of Niikela is .ERF: 5180 Siegfried Tjitmisa Street, Katutura Central, Windhoek,
Namibia.
	 	 

	2.3.2	The registered address of Elephant is 6th Floor, 60 Gracechurch Street, London, EC3V 0HR, UK.
	 	 

	2.3.3	The registered address of NAMCOR E&P is 1 Aviation Road, Petroleum House, Windhoek, Namibia.

 

(In the case of a joint venture, amend
clause to include relevant particulars of each participating company)

 

	2.4	The Company’s Beneficial owners
	 	 

	2.4.1	Niikela hereby declares that the following persons are the beneficial owners of more than five per cent
of the shares issued by it:-

 

[***]

 

	2.4.2	Elephant hereby declares that the following persons are the beneficial owners of more than five (5%) per
cent of the shares issued by it:-

 

[***]

 

	2.4.3	NAMCOR E&P hereby declares that the following persons are the beneficial owners of more than five
per cent of the shares issued by it:-

 

[***]

 

(In the case of a joint venture, amend
clause to include relevant particulars of each participating company and add percentage of participating interest of each company in such
joint venture)

 

The respective Participation Interest
of Niikela, Elephant and NAMCOR E&P in and under the Exploration Licence will be as follows:

 

[***]

 

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Clause 3

 

Duration of Exploration Licence

 

	3.1	Subject to the provisions of the Petroleum Act, the Exploration Licence granted to the Company shall be
for an initial period of [***] commencing from the date of signature of this Agreement by all the parties thereto.

 

	3.2	Subject to the provisions of the Petroleum Act, the Exploration Licence referred to in clause 3.1 may
be renewed for such further period, not exceeding [***], as may be determined by the Minister at the time of the renewal of such
licence as from the date on which such licence would have expired if an application for its renewal had not been made or on the date on
which the application for such renewal is granted, whichever date is the later date: Provided that such licence shall not be renewed on
more than [***].

 

Clause 4

 

Minimum exploration work programme

 

		4.1	Subject to clause 4.5, the Company shall, during each of
the periods referred to in paragraphs (a), (b) and (c) below into which its exploration work programme is divided for purposes of this
Agreement, carry out the work specified in such Articles 4.1 (a,b,c) and Article 4.2 as related to such work.

 

(a) Initial Exploration Period – Phase
1 – [***] 

 

(1a) [***]

 

Initial Exploration Period (continued) –
Phase 2 – [***]

 

(1b) [***]

 

(b) First Renewal Exploration Period –
[***]

 

[***]

 

(c) Second Renewal Exploration Period –
[***] 

 

[***]

 

		4.2	The minimum exploration work and expenditure amounts referred to in clause 4.1 for each Exploration Period
shall be deemed satisfied upon completion of the minimum work as set out above. Satisfaction of the minimum work is deemed satisfied,
if properly execute using best oil field practices in undertaking the minimum work regardless of the specified expenditure amount. The
concept of completion of the minimum work takes precedent over the expenditure amount assigned to the work. A detailed summary of the
exploration work and actual expenditure amounts shall be provided to the Ministry on a regular basis. Notwithstanding the following, work
undertaken during each exploration Period that exceeds the minimum work obligation and expenditure that exceeds either the minimum work
or expenditure amounts shall be carried over into subsequent renewal periods by given the Ministry notice of the work and expenditures
concluded during the term in question. The work specified in clause 4.1 for the above relevant periods equals or exceeds the sums mentioned
in clause 4.1, provided that for this purpose all such actual attributable expenditures shall be adjusted for inflation, commencing from
the Calendar Month in which this Agreement is signed by multiplying each such expenditure by the Inflation Factor.

 

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	4.3	If the Price Index ceases to be published, the Price Index contemplated in clause 4.2 shall for the purposes
of this Agreement be such price index as may be determined by mutual agreement between the Parties to this Agreement.
	 	 

	4.4	Any expenditure incurred by the Company in respect of an appraisal programme referred to in clause 8 of
this Agreement shall not be regarded to be expenditure incurred for purposes of clause 4.1.

 

	4.5	With reference to Article 4.1, if the Company has during any period referred to above, spent more than
the amount specified therein in respect of the period in question, the amount so overspent may, subject to adjustment in terms of Article
4.2, be carried over and credited against the minimum amount so specified in respect of the next ensuing period: Provided that this sub
clause shall not be construed as detracting or modifying any obligation of the Company to drill Exploration Wells or to conduct seismic
surveys in terms of this clause. For purposes of this Article, both goods and services incurred by the Company bought into the Country
to fulfill the minimum work obligations of a given Period will be credited to the amounts of the minimum work obligation.

 

	4.6	[***]

 

	4.7	The Company shall on the date on which this Agreement is signed and on the first day on which the First
Renewal Exploration Period and the Second Renewal Exploration Period commence provide, in a form similar to the form set out in Annexure
3, a bank guarantee in respect of the minimum expenditure referred to in clause 4.1 in respect of the Exploration Period in question.

 

		(a)	The amount of any such bank guarantee shall be reduced at the end of every Quarter by an amount equal
to the actual expenditure incurred by the Company during such Quarter in discharge of its obligations under clause 4.1.

 

		(b)	If at the end of the Initial Exploration Period, the First Renewal Exploration Period or Second Renewal
Exploration Period, as the case may be, the work and expenditure incurred by the Company during any such period, as adjusted in accordance
with clause 4.4, and with due regard to any amount carried over in terms of clause 4.5 does not equal or exceed the minimum work obligation
under Article 4.1, the Minister may invoke the said bank guarantee for the amount of work required under the respective Period that was
not fulfilled by Company. The expenditure referred to in clause 4.1 for such period, the said bank guarantee shall be invoked for purposes
of payment to the Minister of the full amount of the shortfall, as adjusted by multiplying such shortfall by a figure, expressed to the
fourth place of decimals, obtained by dividing the Price Index, as reported for the first time in the monthly publication “International
Financial Statistics” of the International Monetary Fund in the section “Prices, Production, Employment”, for the Calendar
Month immediately preceding the day of receipt of written demand for payment of such shortfall, by such Price Index as so reported for
the Calendar Month in which this Agreement has been signed. Notwithstanding the above, the minimum work obligation is deemed satisfied,
if properly execute using best oil field practices in undertaking the minimum work regardless of the specified expenditure amount. The
concept of completion of the minimum work takes precedent over the expenditure amount assigned to the work. A detailed summary of the
exploration work and actual expenditure amounts shall be provided to the Ministry on a regular basis.

 

		4.8	The Company shall submit to the Commissioner annually a work programme and a budget reviewed in accordance
with the terms of clause 5.4 setting forth the work to be carried out and showing an estimate of the amounts to be spent thereon.

 

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Clause 5

 

Technical Advisory Committee

 

	5.1	The Minister and the Company shall as soon as possible after the date on which this Agreement is signed
establish a committee to be known as the Technical Advisory Committee which shall consist of-

 

		(a)	a chairman and three other persons appointed by the Minister; and
	 	 	 

		(b)	four other persons appointed by the Company.

 

	5.2	The Minister and the Company may, with due regard to the terms of clause 5.1, appoint by notice in writing,
whether by telex, telefax or otherwise, any person to act in the place of any member of the Technical Advisory Committee during his absence
or incapacity to act as a member of the Committee.

 

	5.3	When an alternate member acts in the place of any member he/she shall have the powers and perform the
duties of such member.

 

	5.4	Without prejudice to the rights and obligations of the Company in relation to the management of its operations
the functions of the Technical Advisory Committee shall be-

 

		(a)	to oversee and monitor all Petroleum Operations carried out by the Company;

 

		(b)	to review any proposed exploration work programme and budgets to be submitted by the Company to the Commissioner
in terms of clauses 4.8 and 6 and to monitor the implementation of any appraisal programmes submitted by the Company to the Minister in
terms of clause 8;

 

		(c)	to review and recommend to the Commissioner for approval, at any date after the date on which application
is made by the Company for a Production Licence in respect of any part of the Licence Area and for as long as Petroleum is produced in
such area, any proposed exploration work programme and budgets and any proposed amendment to be submitted to the Commissioner in terms
of clauses 4.8 and 6;

 

		(d)	to review any appraisal programmes submitted by the Company to the Minister in terms of clause 8 and any
Development Plan which the Company proposes to submit in connection with an application for a Production Licence in terms of clause 9;

 

		(e)	to ensure that the accounting of expenditure and the maintenance of operating records and reports kept
in connection with the Petroleum Operations are made in accordance with this Agreement and the accounting principles and procedures generally
accepted in the international petroleum industry.

 

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	5.5	All meetings of the Technical Advisory Committee shall be held at such places, whether within or, with
the prior approval in writing of the Minister, outside Namibia, and at such times, but not less than one meeting during each half of the
Calendar Year during the term of the Exploration Licence and thereafter not less than one meeting during each Quarter, as may be determined
unanimously by its members.

 

	5.6	Five members of the Technical Advisory Committee shall form a quorum for a meeting of the Committee.

 

	5.7	The Minister or the Company shall have the right to call any expert to any meeting of the Technical Advisory
Committee to advise the Committee on any matter of a technical nature requiring expert advice.

 

	5.8	A unanimous vote of all the members of the Technical Advisory Committee present at a meeting thereof on
any matter requiring a decision of the Committee as set out in clause 5.4 shall be a decision of the Committee and shall be binding upon
the Parties to this Agreement. The committee shall not make any decision which shall unreasonably or negatively impede the Company’s
ability to fulfill its obligations under this Agreement.

 

	5.9	If a decision cannot be taken as contemplated in clause 5.8

 

		(a)	in the case of a proposal of the Company in relation to a matter referred to in paragraph (a), (b) or
(d) of clause 5.4, the proposal of the Company shall prevail, provided (i) that such proposal is not inconsistent with any term of this
Agreement; and (ii) that, in the case of the review of a Development Plan, such proposal contains the particulars contemplated in section
46(2)(e) to (k) of the Petroleum Act;

 

		(b)	in the case of any dispute in respect of a matter contemplated in paragraph

 

		(c)	of clause 5.4, such dispute between the Minister and the Company shall be referred, within [***]
as from the date of the meeting on which no decision could have so been taken, to a sole expert appointed in accordance with the terms
of clause 29.6.

 

Clause 6

 

Work programme and budget

 

		6.1	During the currency of an Exploration Licence the Company shall prepare and submit in each Calendar Year,
not less than [***] of each Calendar Year to the Commissioner a work programme and budget referred to in paragraph (b) or (c) of
clause 5.4 for review or for review and recommendation by the Technical Advisory Committee in accordance with the terms of those paragraphs,
setting forth the Exploration Operations which the Company proposes to carry out during [***] and the estimated cost thereof.

 

		6.2	Any work programme and budget submitted in terms of sub clause 6.1 for review or review and recommendation
by the Technical Advisory Committee to the Commissioner and any revision or amendment thereof shall be consistent with the requirements
set out in clause 4 relating to the minimum exploration work and minimum exploration expenditure for any of the periods so set out within
which the work programme and budget will fall.

 

		6.3	The Company may by notice in writing to the Minister amend any work programme or budget submitted to the
Technical Advisory Committee, provided that the work programme or budget is not required to be submitted to that Committee for review
and recommendation to the Commissioner under the terms of paragraph (c) of clause 5.4 and such amendment is consistent with the Company’s
obligations under clause 4.

 

		6.4	A notice referred to in clause 6.3 shall state the reasons for which the amendment is necessary or desirable.

 

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Clause 7

 

Relinquishment

 

	7.1	Subject to the provisions of the Petroleum Act, the Company shall by notice in writing addressed and delivered
to the Commissioner relinquish-

 

[***]

 

Whereupon any part of the Exploration Area so
identified shall cease to be part of such Exploration Area as from a date [***] after the date of such notice: Provided that-

 

		(i)	if such licence is cancelled in terms of section 19(3) of the Petroleum Act in relation to any area of
Land in any Calendar Year of the currency of such licence, such area of Land shall be deemed to have been relinquished for the purposes
of the determination of the relinquishment next required to be made by the Company under paragraph (a) or (b);

 

		(ii)	any area of Land relinquished under clause 7.2, shall be deemed to have been relinquished for the purposes
of the determination of the relinquishment next required to be made by the Company under paragraph (a) or (b);

 

		(iii)	the Company shall relinquish such Land in such a manner so as to ensure that the Exploration Area is,
after such relinquishment, a single area consisting, in so far as it is possible, of rectangular blocks bounded by lines running either
due North and South or due East and West and having sides, each of at least 30 seconds of longitude or latitude, as the case may be;

 

		(iv)	the Company shall not be required to relinquish any Land in the Exploration Area which is subject to an
application for a Production Licence or situated within a Petroleum Field or subject to an application for the declaration of a Petroleum
Field.

 

		7.2	The Company may, subject to the terms of sub-paragraph (iii) of the proviso to clause 7.1, by notice in
writing addressed and delivered to the Commissioner relinquish any area of Land to which its Exploration Licence relates from a date not
less than [***] from the date on which such notice was delivered to the Commissioner.

 

		7.3	Any relinquishment in terms of clause 7.2 shall be without prejudice to any obligation incurred by the
Company in respect of the area relinquished prior to the date of relinquishment and such relinquishment shall not affect the obligations
of the Company under clause 4.

 

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Clause 8

 

Discovery and development of Petroleum

 

	8.1	When a Discovery is made in an Exploration Area, the Company shall

 

		(a)	forthwith inform the Commissioner by notice in writing of the fact that such Discovery has been made;

 

		(b)	forthwith cause tests to be made in connection with such Discovery in order to determine the commercial
interest of such Discovery;

 

		(c)	within a period of [***] after such notice, furnish the Commissioner in writing with particulars
of the steps which it proposes to take to satisfy the requirements of paragraph (e) of this clause;

 

		(d)	within a period of [***] after such notice, furnish the Commissioner in writing with particulars
relating to the Block or Blocks where such Discovery has been made, the nature of such Discovery and such other particulars as the Commissioner
may require;

 

		(e)	within a period of [***] after having completed such tests, furnish the Commissioner with a report
containing an evaluated result of such tests and an evaluation of the potential commercial interest of such Discovery.

 

	8.2	If the report referred to in paragraph (e) of clause 8.1 indicates that in the Company’s judgment, utilizing
Good Oilfield Practices, a Discovery may be of commercial interest, the Company

 

		(a)	shall within [***] of the delivery of such report address and deliver to the Commissioner an appraisal
programme which is commensurate with the size and nature of the Discovery for the Commissioner’s approval which shall include particulars
relating to the drilling of Appraisal Wells;

 

		(b)	shall upon approval forthwith take all such steps as may be reasonable in the circumstances in order to
appraise the Discovery and determine the quantity of Petroleum to which the Discovery relates in so far as it occurs within the Exploration
Area;

 

		(c)	may apply, pursuant to section 42 of the Petroleum Act, for the declaration of a Petroleum Field over
the relevant area;

 

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	8.3	The Commissioner shall by notice in writing addressed and delivered to the Company within [***]
of delivery of the appraisal programme indicate whether or not he approves thereof.

 

	8.4	Where the appraisal programme is not approved by the Commissioner, the Technical Advisory Committee shall,
within a period of [***] from the date on which the notice referred to in clause 8.3 was delivered to the Company, meet to discuss
and agree on revisions to the appraisal programme.

 

	8.5	If the members of the Technical Advisory Committee are unable to agree on revisions to the appraisal programme,
the provisions of clause 5.9 shall apply mutatis mutandis, enabling the Company to proceed with the implementation of its appraisal programme,
with such revisions, if any, as it deems fit. The Company’s appraisal programme shall be deemed to have been approved by the Commissioner
on the date on which the Commissioner receives notification from the Technical Advisory Committee on the outcome of its deliberations.

 

	8.6	The Company shall, within [***] from the date on which the Commissioner approved of the appraisal
programme or such longer period as the Commissioner on good cause shown may allow, address and deliver to the Commissioner-

 

		(a)	a full report containing particulars of the results of the appraisal programme, including particulars
relating to

 

		(i)	the location and depth of Petroleum or hydrocarbon bearing structures;

 

		(ii)	the composition of Petroleum or hydrocarbons;

 

		(iii)	the estimated recoverable reserves of Petroleum or hydrocarbons;

 

		(iv)	the estimated daily production potential of Petroleum or hydrocarbons;

 

		(b)	a preliminary estimate of the cost of Development Operations and Production Operations relating to the
Discovery, including the cost of transportation of Petroleum or hydrocarbons, based upon an outline design for the development of the
Discovery.

 

	8.7	The Company shall, in so far as it is able to do so from results obtained from an appraisal programme,
within [***] after the date on which the Commissioner approved of such programme, issue an interim report containing the particulars
and preliminary estimates contemplated in clause 8.6.

 

	8.8	The Commissioner may, at any time after delivery of the report and estimates referred to in clause 8.6,
request the Company to supply such further particulars relating to such report as he deems necessary and the Company shall comply in writing
with such request within [***] from the date of delivery of such request.

 

	8.9	The Commissioner and the Company shall, within [***] of the delivery of the report and estimates
referred to in clause 8.6 or such longer period as the Commissioner on good cause shown may allow, discuss the report and estimates to
determine whether the Discovery is of commercial interest.

 

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	8.10	If the Company decides that the Discovery is not of present commercial interest and the Commissioner does
not agree with such determination, the Commissioner may cause an independent evaluation of the Discovery to be carried out. If the independent
evaluation establishes that the Discovery is of commercial interest, the provisions of clause 8.11 shall apply.

 

	8.11	If the conclusion of the evaluation referred to in clause 8.10 is that the Discovery is of commercial
interest the Minister may, subject to the terms of clause 8.12, by notice in writing addressed and delivered to the Company, direct that
with effect from a date specified in such notice the Licence in question shall cease to be of any force and effect in relation to the
Discovery Block in question and any adjoining Land required for purposes of obtaining access to that Block.

 

	8.12	The Minister shall not exercise his powers under clause 8.11, unless he-

 

		(a)	has submitted the evaluation referred to in clause 8.10 to the Company for consideration and afforded
the Company a period of [***] from the date of delivery of the said evaluation to review its position regarding the commercial
interest of the Discovery and to notify the Minister in writing of its intention to develop the Discovery and the Company has failed or
refused to so notify the Minister or has notified the Minister that

it does not intend
to develop the Discovery;

 

		(b)	has by notice in writing addressed and delivered to the Company informed the Company of his intention
to exercise such powers;

 

		(c)	has requested the Company to make representations to the Minister in relation to the matter on or before
a date specified in such notice;

 

		(d)	is, having regard to information available to him and after having considered any representations made
to him by virtue of the notice referred to in paragraph (a), satisfied that the Discovery is of commercial interest.

 

	8.13	In the event of the Company notifying the Minister of its intention to develop the Discovery as contemplated
in paragraph (a) of clause 8.12, the Company shall reimburse the Government the cost of the independent evaluation referred to in clause
8.10.

 

	8.14	If the Minister has given a direction to the Company that the Company’s Exploration Licence shall cease
to be of any force and effect in relation to the Discovery Block in question and any adjoining Land required for purposes of obtaining
access to that Block in terms of clause 8.11, the Company may apply to the Minister to reinstate the rights it previously had in respect
of the relevant area: Provided that-

 

		(a)	the rights so reinstated shall not subsist beyond the date on which they would have expired, if the Minister
had not made the direction under the said clause 8.11;

 

		(b)	no such rights shall be exercised by the Company if the Minister has, subsequent to the said direction,
granted any rights to any other person in relation to the area in question which are inconsistent with the rights so

reinstated by the
Minister;

 

		(c)	the Company pays to the Government an amount equal to-

 

		[***]	

 

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	8.15	Notwithstanding the other provisions of this clause 8, if after having carried out an appraisal programme
pursuant to section 39 (2) of the Petroleum Act, that a Discovery of Crude Oil is not of present commercial interest but may become of
commercial interest then, if the Commissioner agrees with such determination, the Minister hereby agrees to allow the Company to retain
the Discovery Block for the duration of the Company’s Exploration Licence and any renewal thereof, provided that:

 

		(a)	The determination of potential commerciality shall be based on relevant economic criteria, including but
not limited to, potential Crude Oil production rates, Crude Oil prices, development costs, operating costs as well as any other relevant
criteria;

 

		(b)	The Company shall reassess the commerciality of the Discovery [***] after the Discovery has been
notified to the Commissioner and thereafter every [***], based on the same economic criteria as set forth in (a) above;

 

		(c)	The Company shall within [***] after the completion of each reassessment inform the Minister whether
it determines the Discovery still to be of potential commercial interest. A copy of any reassessment study shall be given to the Commissioner;

 

		(d)	If as a result of the Company’s reassessment under clause 8.15(b) the Company determines that the Discovery
has become of commercial interest the provisions of clause 8.2 to 8.14 shall apply;

 

		(e)	If as a result of the Company’s reassessment under clause 18.5(b) the Company determines that the Discovery
remains only of potential commercial interest, but the Commissioner considers that it is of present commercial interest, the provisions
of clause 8.10 shall apply; and
	 	 	 
		(f)	If as a result of the Company’s reassessment under clause 8.15(b), the Company determines that the Discovery
is no longer of potential commercial interest, the Minister may require the Company to relinquish the Discovery Block.

 

Clause 9

 

Application for Production Licence

 

	9.1	If the Company intends to apply for a Production Licence in respect of the Discovery Block in question
as contemplated in section 43(1) of the Petroleum Act, the Company shall arrange a meeting with the Commissioner to identify, after having
had due regard to all the relevant particulars, the Discovery Block or Blocks to which such licence should relate.

 

	9.2	Where a part of a Petroleum Reservoir in respect of which the Company intends to make an application for
a Production Licence is contained in a Block or Blocks outside the Licence Area, such Block or Blocks may be included at the Minister’s
discretion in the area in relation to which application for a Production Licence is made, provided that such Block or Blocks are not subject
to an Exploration or Production Licence granted to any other person.

 

	9.3	The Company shall, in making an application for a Production Licence as contemplated in section 43(1)
of the Petroleum Act, comply with the provisions of section 46(2) of the Petroleum Act and any other provisions relating to such

applications.

 

	9.4	The proposed programme of Production Operations and processing of Petroleum referred to in section 46(2)(i)
of the Petroleum Act shall-

 

		(a)	relate exclusively to the Block or Blocks within the area to which the Licence relates and which, on a
reasonable interpretation of the available particulars, contain a Petroleum Reservoir or part thereof;

 

		(b)	be designed to ensure the most efficient, beneficial and timely use of the Petroleum resources in the
area to which the Production Licence relates; and
	 	 	 

		(c)	be compiled in accordance with sound engineering, economic, safety and environmental principles recognized
in the international petroleum industry.

 

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	9.5	The Minister shall, subject to the provisions of section 47 of the Petroleum Act and after approval of
the Development Plan, within [***] after delivery of the application for a Production Licence referred to in clause 9.3, grant
such application and issue such licence for a period of [***].

 

	9.6	If, within a period of [***] after submission of the Development Plan, the Minister has failed
or refused to approve such Development Plan, the Minister shall arrange a meeting with the Company to be held within a period of [***]
after the expiry of the aforesaid period.

 

	9.7	If the Minister and the Company are unable to agree at the meeting referred to in clause 9.6 on whether
such Development Plan meets the requirements set forth in clause 9.4, the Minister or the Company may request the appointment of the expert
contemplated in clause 29.6, if necessary, and submit the dispute for determination.

 

	9.8	In the event of the expert referred to in clause 9.7 determining that such Development Plan does not meet
the requirements of clause 9.4, the said expert shall determine which modifications to such Development Plan are necessary to comply with
the requirements of clause 9.4 and the Company shall modify such Development Plan accordingly.

 

	9.9	The decision of the expert referred to in clause 9.8 shall be final and binding on the Minister and the
Company, provided that in the event of the Company being dissatisfied with the decision of the said expert, it may, within [***]
after the date on which the decision was conveyed
to it, notify the Minister that it withdraws the application for a Production Licence referred to in clause 9.3, in which event such notice
shall be deemed to be a report by the Company contemplated in section 39(1) of the Petroleum Act.

 

Clause 10

 

Sole risk

 

	10.1	Subject to the terms of clause 10.5, the Minister may during any Exploration Period require the Company
by notice in writing-

 

		(a)	to test any additional horizons within the agreed Well depth; or
	 	 	 

		(b)	to penetrate and test any horizons deeper than such depth; or
	 	 	 

		(c)	to continue drilling and test any such additional horizons.

 

	10.2	A notice referred to in clause 10.1 shall be given as early as possible prior to or during the drilling
of the Well, but in any case not after the Company has notified the Minister of the detailed completion or abandonment plan for the Well.
Upon receipt of such notice the Company shall,
subject to the terms of clause 10.5, cause such tests, penetration and drilling to be carried out at the sole cost and risk of the Government.
At any time before such tests, penetration or drilling is carried out the Company may elect to include such tests, penetration or drilling
in its Exploration Operations.

 

	10.3	Subject to the terms of clause 10.5, the Minister may-

 

		(a)	during any Exploration Period recommend that the Company include certain Exploration Wells in its exploration
work programme;

 

		(b)	if any dispute arises in relation to any recommendation made in terms of paragraph (a), require by at
least [***] notice in writing to the Company, which notice shall contain the proposed location of the Well, the geological objective
and other details of the Well to be drilled and the schedule of financing, the Company to drill within the Exploration Area and at the
sole cost and risk of the Government, a maximum of two such Exploration Wells per Calendar Year, provided that suitable rigs are available
for use in the Exploration Area, and such operations will not unreasonably interfere with Petroleum Operations required to be carried
out under this agreement. The Company may, at any time before such Exploration Wells are drilled, elect to include such Exploration Wells
in its Exploration Operations.

 

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	10.4	If a Discovery is made in consequence of any activities carried out in terms of clauses 10.1 and 10.3
the Minister may cause at the sole cost, risk and benefit of the Government the Discovery to be appraised and any Petroleum discovered
to be developed and produced. The Company may before such appraisal, development or production, as the case may be, inform the Minister
by notice in writing that it wishes to take over such appraisal or development under the terms of its Licence. In such event the Company
shall pay to the Government

 

		(a)	within [***] from the date of dispatch of its notice to the Minister, an amount equivalent to the
expenditures incurred by the Minister in connection with such appraisal, development or production; and

 

		(b)	if the Company so informs the Minister before such appraisal commences, an additional amount equal to
[***] of the expenditure referred to in paragraph (a) or, if the Company so informs the Minister after such appraisal has commenced,
but before such development commences, an additional amount equal to [***] of the expenditure referred to in paragraph (a), which
expenditure and additional amount shall not be allowable as a deduction under the Taxation Act.

 

	10.5	The Company shall by virtue of a notice given in terms of clauses 10.1, 10.3 and 10.4 not be required-

 

		(a)	to test any additional horizons or to penetrate and test any deeper horizons or to drill any additional
Exploration Wells if, employing Good Oilfield Practices, such operations are not technically feasible and cannot be conducted in a safe
and prudent manner or such operations will have a detrimental effect on the proper performance of the Company’s work programme;

 

		(b)	to penetrate and test horizons deeper than the agreed Well depth, if the Well in question has encountered
productive horizons;
	 	 	 

		(c)	to drill Exploration Wells in a Petroleum Field or a Production Area or a Discovery Block retained pursuant
to clause 16.12;

 

		(d)	to carry out any operations referred to in such notice during any Calendar Month, unless the Government
advances, subject to such conditions of accounting as the Minister may determine, before the commencement of such Calendar Month, to the
Company an amount to finance the expenditure to be incurred in connection therewith.

 

	10.6	The Minister shall not engage any third party to carry out any activities contemplated in clause 10.4,
unless he has first offered by notice in writing the Company the right to carry out such activities on the Government’s behalf, on the
same terms agreed to by such third party and the Company has refused the offer or has failed to accept such offer within a period of [***]
as from the date on which the offer was made and unless such activities will not interfere with Petroleum Operations to be carried out
pursuant to this Agreement.

 

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Clause 11

 

Environmental protection

 

	11.1	The Minister and the Company concede that Petroleum Operations will cause some impact on the environment
in the Licence Area.

 

	11.2	The Company shall-

 

		(a)	conduct its Petroleum Operations in a manner likely to conserve the natural resources of Namibia and protect
the environment;

 

		(b)	employ the best available techniques in accordance with Good Oilfield Practices for the prevention of
Environmental Damage to which its Petroleum Operations might contribute and for the minimization of the effect of such operations on adjoining
or neighboring Lands; and

 

		(c)	implement the proposals contained in its Development Plan regarding the prevention of pollution, the treatment
of wastes, the safeguarding of natural resources and the progressive reclamation and rehabilitation of Lands disturbed by Petroleum Operations.

 

	11.3	The Company undertakes for purposes of this Agreement to take all reasonable, necessary and adequate steps
in accordance with Good Oilfield Practices to minimize Environmental Damage to the Licence Area and adjoining or neighboring Lands.

 

	11.4	If the Company fails to comply with the terms of clause 11.3 or contravenes any law on the prevention
of Environmental Damage and such failure or contravention results in any Environmental Damage, the Company shall take all necessary and
reasonable measures to remedy such failure or contravention and the effects thereof.

 

	11.5	If the Minister has reason to believe that any works or installations erected by the Company or any operations
carried out by the Company are endangering or may endanger persons or any property of any other person or is causing pollution or is harming
wildlife or the environment to a degree which the Minister deems unacceptable, the Minister may require the Company to take reasonable
remedial measures within such reasonable period as may be determined by the Minister and to take reasonable and appropriate steps to repair
any damage to the environment. If the Minister deems it necessary, he may require the Company to discontinue Petroleum Operations in whole
or in part until the Company has taken such remedial measures or has repaired any damage.

 

	11.6	The measures and methods to be used by the Company for purposes of complying with the terms of clause
11.3 shall be determined in timely consultation with the Minister upon the commencement of Petroleum Operations or whenever there is a
significant change in the scope or method of carrying out Petroleum Operations, and the Company shall take into account the international
standards applicable in similar circumstances and the relevant environmental impact assessment studies carried out in accordance with
clause

 

	11.7.	The Company shall notify the Minister in writing of the nature of the measures and methods finally determined
by the Company and shall cause such measures and methods to be reviewed from time to time in view of prevailing circumstances.

 

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	11.7	The Company shall cause a person or persons, approved by the Minister on account of their special knowledge
of environmental matters, to carry out two environmental impact assessment studies, in order

 

		(a)	to determine the prevailing situation relating to the environment, human beings, wildlife or marine life
in the Licence Area and in the adjoining or neighboring areas at the time of the studies; and (b) to establish what the effect will be
on the environment, human beings, wildlife or marine life in the Licence Area in consequence of the Petroleum Operations to be made under
this Agreement, and to submit for consideration by the Parties measures and methods contemplated in clause

 

	11.6	for minimizing Environmental Damage and carrying out Site Restoration in the Licence
Area.

 

	11.8	The first of the two studies referred to in clause 11.7 shall be carried out in two parts. The first part
of the first study shall be a baseline study of existing information on the environment, human beings, wildlife or marine life in the
Licence Area. The company shall conclude such baseline study prior to undertaking any fieldwork for a seismographic survey. The second
part of the first study shall be an environmental impact assessment study of the effects of drilling on the environment. This environmental
impact assessment study is to be concluded sufficiently in advance of the commencement of drilling to enable the results of this environmental
impact assessment study to be taken into account in preparing all relevant drilling management, waste management and contingency plans
relating to the exploration drilling stage. A minimum of 12 copies of the reports on the baseline and environmental impact assessment
studies shall be submitted to the Government.

 

	11.9	The second of the two studies referred to in clause 11.7 shall be an environmental impact assessment study
of the effects of production on the environment and shall be concluded sufficiently in advance of the commencement of Production Operations
to enable the results of this environmental impact assessment study to be taken into account in preparing all relevant production management,
waste management and contingency plans relating to Production Operations and shall be submitted by the Company as part of its Development
Plan. A minimum of 12 copies of the report on the environmental impact assessment study shall be submitted to the Government.

 

	11.10	The studies mentioned in clause 11.7 shall contain proposed
environmental guidelines to be followed in order to minimize Environmental Damage and shall include, but not be limited to-

 

		(a)	access cutting;

		 	 

		(b)	clearing and timber salvage;

		 	 

		(c)	wildlife and habitat protection;

		 	 

		(d)	marine resource protection;

		 	 

		(e)	fuel storage and handling;

		 	 

		(f)	use of explosives;

		 	 

		(g)	camps and staging areas;

 

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		(h)	liquid and solid waste disposal;

		 	 

		(i)	cultural and archaeological sites;

		 	 

		(j)	selection of drilling sites;

		 	 

		(k)	terrain stabilization;

		 	 

		(l)	protection of freshwater horizons;

		 	 

		(m)	blowout prevention plan;

		 	 

		(n)	combating oil spills;

		 	 

		(o)	flaring during completion and testing of gas and oil wells;

		 	 

		(p)	Well abandonment;

		 	 

		(q)	rig dismantling and site completion;

		 	 

		(r)	reclamation for abandonment; and

		 	 

		(s)	noise control.

 

	11.11	The Company shall ensure-

 

		(a)	that Petroleum Operations are carried out in an environmentally acceptable and safe manner consistent
with Good Oilfield Practices and that such operations are properly monitored;

 

		(b)	that the pertinent completed environmental impact assessment studies are made available to its employees
and to its contractors to develop adequate and proper awareness of the measures and methods of environmental protection to be used in
carrying out its Petroleum Operations; and

 

		(c)	that any agreement entered into between the Company and its contractors relating to its Petroleum Operations
shall include the terms set out in this Agreement and any established measures and methods for the implementation of the Company’s obligations
in relation to the environment under this Agreement.

 

	11.12	The Company shall, before carrying out any drilling, prepare
and submit for review by the Minister an oil spill and fire contingency plan designed to achieve rapid and effective emergency response
in the event of an oil spill or fire.

 

	11.13	In the event of-

 

		(a)	an emergency or accident arising from Petroleum Operations affecting the environment, the Company shall
forthwith notify the Minister accordingly;

 

    22

     

    

 

		(b)	any fire or oil spill, the Company shall promptly implement the relevant contingency plan;

 

		(c)	any other emergency or accident arising from the Petroleum Operations affecting the environment, the Company
shall take such action as may be prudent and necessary in accordance with Good Oilfield Practices in such circumstances.

 

	11.14	If the Company fails to comply with any terms contained in clause
11 within a period determined by the Minister under any such term, the Minister may, after giving the Company reasonable notice, take
any action which may be necessary to ensure compliance with such term, and recover, immediately after having taken such action, all expenditure
incurred in connection with such action from the Company together with such interest as may be determined in accordance with paragraph
6.2 of Annexure 4 to this Agreement.

 

	11.15	If the Company or the operator for the Company has already completed and submitted to the Government reports
on the studies referred to in clause 11.8 for a previous Exploration Licence held in Namibia in the [***] period preceding the
application for this Exploration Licence and those studies either

 

		(a)	are sufficiently broad ranging to encompass clearly the present Licence Area, or

 

		(b)	do not encompass the present Licence Area but a baseline study and environmental impact assessment study
have been submitted by the holder of an Exploration Licence covering an area near the present Licence Area the Company may in a case falling
within (a) above, submit the reports on the studies for such previous Licence in fulfillment of the requirements of clauses 11.7 and 11.8
relating to exploration drilling and, in a case falling within (b) above submit such environmental impact assessment submitted by the
said holder of an Exploration Licence, with any modifications which the Company wishes to make; provided that:

 

		(i)	In response to a written request from the Company, the Minister approves in writing the course of action
selected from (a) or (b) above;
	 	 	 

		(ii)	In response to a written request from the Company directed through the Ministry of Mines and Energy, The
Ministry of Fisheries and Marine Resources, the Ministry of Environment and Tourism, the Ministry of Works, Transport and Communication
and the Ministry of Health and Social Services also approve in writing the course of action selected from (a) or (b) above;
	 	 	 

		(iii)	The company that carried out the baseline study and environmental impact assessment study which are to
be submitted in terms of (b) above agrees to this course of action;

 

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		(iv)	The baseline study and the environmental impact assessment study submitted in terms of (b) above encompass
the present Licence Area;

 

		(v)	Fluids, muds and chemicals to be used during drilling are the same as those used in the Exploration Licence
covered by the environmental impact assessment study submitted;

 

		(vi)	Oil spill drift simulation studies and any other special studies relevant to an environmental impact assessment
of the effect of drilling on the environment in the present Licence Area as may be required by the Minister are carried out and the results
thereof together with plans for mitigating actions be submitted in the form of reports to the Government. A minimum of 12 copies of these
reports are to be submitted;

 

		(vii)	The results of the resubmitted environmental impact assessment study as well as the studies conducted
under (v) above are taken into account in preparing all relevant drilling management, waste management and contingency plans relating
to the exploration drilling stage;

 

		(viii)	An amount equal to half the average cost of the three most recent baseline and environmental impact assessment
studies complying with the requirements of the first of the studies in clause 11.7 for offshore oil exploration in Namibia or such other
amount as may be agreed between the Parties is paid to the National Petroleum Corporation of Namibia (NAMCOR E&P). This money shall
be used by NAMCOR E&P in accordance with the principles laid out in Annexure 7 in order to collect offshore environmental data relevant
to oil exploration and production in Namibia. Projects to be undertaken by NAMCOR E&P in this connection shall be decided upon in
consultation with the oil exploration companies operating in Namibia and with the Ministries of Fisheries and Marine Resources and the
Environment and Tourism.

 

	11.16	The Company shall on the expiration or termination of this Agreement
or on relinquishment of part of the Licence Area-

 

		(a)	subject to clause 17, remove or otherwise deal with, as directed by the Minister in consultation with
the Minister or Ministers responsible for environment, fisheries and finance, all equipment and installations from such Licence Area or
relinquished area to the extent and in the manner agreed with the Minister in terms of the Decommissioning Plan approved by the Minister
pursuant to s.68A(2) of the Petroleum Act;

 

		(b)	subject to clause 17, remove, or otherwise deal with, as directed by the Minister in consultation with
the Minister or Ministers responsible for environment, fisheries and finance, all installations, equipment, pipelines and other facilities
erected or used outside the Licence Area for the petroleum operations; and

 

		(c)	perform all necessary Site Restoration activities in accordance with Good Oilfield Practices and shall
take all other action necessary to prevent hazards to human life or to the property of others or the environment.

 

	11.17	The Company shall on the date referred to in s.68B(1) of the
Petroleum Act establish a Trust Fund in accordance with the provisions of s.68(B) of the said Act for the purpose of decommissioning
facilities on cessation of production operations.

 

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Clause 12

 

Work practices and carrying out of operations

 

	12.1	The Company shall conduct Petroleum Operations in the Licence Area

 

		(a)	subject to the provisions of the Petroleum Act;

 

		(b)	in accordance with Good Oilfield Practices;

 

		(c)	diligently, expeditiously, efficiently and in a proper, safe and workmanlike manner;

 

		(d)	in accordance with work programmes reviewed or approved in terms of the Petroleum Act and this Agreement.

 

	12.2	The Company shall ensure that all equipment, materials, supplies, plant and installations used by the
Company, its contractors and subcontractors comply with generally accepted standards in the international petroleum industry and are of
proper construction and kept in good working order.

 

	12.3	The Company shall, within [***] after the date on which this Agreement was signed, appoint

 

		(a)	a General Manager to manage the Petroleum Operations in the Licence Area and who shall be authorised to
take such steps as may be necessary in accordance with the provisions of the Act and the terms and conditions of this Agreement to carry
out the Petroleum Operations on behalf of the Company; and

 

		(b)	a Deputy General Manager to manage such operations in the absence of the General Manager, who shall be
resident in Namibia, and shall be technically competent and sufficiently experienced to manage such operations.

 

	12.4	The Company shall, within [***] after the appointment of the General Manager or Deputy General
Manager referred to in clause 12.3, notify the Commissioner in writing of their identity and respective addresses.

 

	12.5	Where the Company consists of more than one Company-

 

		(a)	all the terms and obligations of this Agreement shall apply to each one of such companies jointly and
severally;

 

		(b)	Elephant Oil LTD shall be deemed to be the operator and Company who shall carry on the Petroleum Operations
of the Company under this Agreement, unless the Commissioner pursuant to an application in writing addressed and delivered to him approves
a change of operator, in which event the other operator so approved of shall be deemed to be the operator from the date of such approval;

 

		(c)	any operating or other agreement relating to the Petroleum Operations entered into by or between such
companies shall be consistent with the provisions of this Agreement and shall be in writing and a copy of each such agreement shall be
submitted to the Commissioner not later than [***] after the date of signature thereof.

 

	12.6	All individual services to be performed or materials and equipment to be purchased for or in connection
with the Petroleum Operations which cost in excess of [***] shall be contracted for by the Company only after competitive quotations
have been called for and on the basis thereof.

 

	12.7	The Company shall ensure adequate compensation for injury to persons or damage to property caused by its
Petroleum Operations under this Agreement.

 

    25

     

    

 

Clause
13

 

Royalty
and annual charges

 

		13.1	Subject
                                            to the provisions of the Petroleum Act, the Company shall pay

 

		(a)	Quarterly
                                            on or before the last day of each Calendar Month following each Quarter, for the benefit
                                            of the State Revenue Fund, a royalty of [***] on the market value of Petroleum Produced
                                            and Saved in the Production Area during each Quarter, determined-

 

		(i)	in
                                            the case of Crude Oil, in accordance with the terms of clause 15; and

 

		(ii)	in
                                            the case of Natural Gas, in accordance with the terms of clause 16.7;

 

		(b)	on
                                            the date of the issue of the Exploration Licence or Production Licence, and thereafter annually
                                            on or before the last day of the Calendar Month during which every period of [***]
                                            of the currency of such Licence expires, for the benefit of the State Revenue Fund, an annual
                                            charge, equal to the figure expressed in Namibian Dollars, calculated by multiplying the
                                            number of square kilometers included in the Block or Blocks to which the Licence relates

 

		(i)	in
the case of an Exploration Licence

 

		[***]	

 

		(ii)	in
the case of a Production Licence, by [***].

 

		13.2	The
                                            Company shall, no later than [***] after the end of each Quarter, submit to the Minister
                                            and to the Permanent Secretary: Finance in such form as may be specified by the Minister,
                                            a statement containing particulars of-

 

		(a)	the
                                            quantity of Crude Oil and Natural Gas Produced and Saved from each Production Area during
                                            such Quarter;

 

		(b)	the
                                            market value F.O.B. Namibia of the Crude Oil and the market value of the Natural Gas on which
                                            royalty is payable;

 

		(c)	the
                                            amount of royalty payable for that Quarter;

 

		(d)	the
                                            calculation of such amount; and

 

		(e)	any
                                            other matters which the Minister or the Permanent Secretary: Finance may from time to time
                                            require.

 

    26

     

    

 

Clause
14

 

Taxation

 

		14.1	The
                                            Company shall pay annually, for the benefit of the State Revenue Fund, a petroleum income
                                            tax referred to in section 5 of the Taxation Act and an additional profits tax referred to
                                            in section 19 of that Act to be determined in accordance with the provisions of that Act
                                            and the terms of clause 14.2 and clause 14.3 of this Agreement.

 

		14.2	[***]

 

 

		14.3	[***]

 

		14.4	Subject
                                            to the terms of clauses 13 and 14.1, the provisions of the Taxation Act and the provisions
                                            of sections 11 and 15 of the Petroleum Act, no other tax, duty, fee or levy shall be imposed
                                            on the Company or its Affiliates in respect of income derived from Petroleum Operations in
                                            terms of this Agreement or in respect of any property held, money received, or thing done
                                            for any purpose authorized or contemplated in terms of this Agreement other than

 

		(a)	customs
                                            duties prescribed from time to time in or under the Customs and Excise Act, 1988 (Act 91
                                            of 1988) to the extent applicable;

 

		(b)	general
                                            sales tax prescribed from time to time in or under the Value Added Tax Act, 2000 (Act 10
                                            of 2000) to the extent applicable;

 

		(c)	taxes,
                                            duties, fees or levies for specific services rendered on request or to the public or commercial
                                            enterprises generally;

 

		(d)	rates,
                                            taxes or levies, not in excess of those generally applicable in Namibia, payable to any municipality
                                            or other local government in terms of or under the relevant legislation; and

 

		(d)	stamp
                                            duties, transfer fees and licence fees, not in excess of those generally applicable in Namibia,
                                            payable to the Government or any body established by or under any law.

 

Clause
14A

 

NAMCOR
E&P Participation

 

[***]

 

NIIKELA
Participation

 

[***]

 

    27

     

    

 

Clause
15

 

Valuation
of Namibian Crude Oil

 

		15.1	The
                                            Parties hereby agree that Namibian Crude Oil Produced and Saved from the Licence Area shall
                                            be sold or otherwise disposed of at competitive international market prices.

 

		15.2	The
                                            market value of Namibian Crude Oil sold or otherwise disposed of in any Quarter shall, for
                                            the purposes of this Agreement and section 7(5) of the Taxation Act, be determined as follows:-

 

		(a)	No
                                            later than [***] after the end of each Quarter in which Crude Oil has been Produced
                                            and Saved from any Production Area, an average price (expressed in United States Dollars
                                            per Barrel, adjusted to the Company’s actual loading points for export from Namibia) for
                                            each separate volume of Crude Oil of the same gravity, sulphur and metal content, pour point,
                                            product yield and other relevant characteristics (“quality”) shall be determined
                                            in respect of production during that Quarter. It is understood that production from different
                                            Production Areas may be of differing quality and that separate average prices may accordingly
                                            be appropriate for any Quarter in respect of production from each Production Area, in which
                                            event the overall price applicable to production from the Licence Area shall be determined
                                            by taking the arithmetic weighted average (weighted by volume) of all such prices separately
                                            determined.

 

		(b)	The
                                            prices aforesaid shall be determined on the basis of international fair market value as follows-

 

		(i)	[***]

 

		(ii)	[***]

 

		(iii)	All
                                            prices aforesaid shall be adjusted to the Company’s actual loading point for export from
                                            Namibia.

 

		(iv)	For
                                            purposes of this clause 15 third party sales of Namibian Crude Oil made by the Company shall
                                            exclude

 

		(a)	sales,
whether direct or indirect through brokers or otherwise, of any seller to any Affiliate of such seller;

 

		(b)	crude
                                            oil exchanges, barter deals or restricted or distress transactions and generally any crude
                                            oil transaction which is motivated in whole or in part by considerations other than the usual
                                            economic incentives for commercial arms length crude oil sales; and

 

		(c)	government
                                            to government sales.

 

		(c)	In
the event of-

 

		(i)	[***]

 

		15.4	The
Company shall-

 

		(a)	be
                                            responsible for establishing the relevant average prices for Namibian Crude Oil in accordance
                                            with this clause 15 and such prices shall be subject to agreement by the Minister before
                                            they shall be deemed to have been finally determined;

 

		(b)	provide
                                            the Minister with all relevant information in order that he can satisfy himself that the
                                            average price determined by the Company is fair. If the Parties fail to agree on the average
                                            price for any Quarter within [***] following the end of such Quarter the calculation
                                            of the relevant average price shall be referred to a sole expert appointed in terms of clause
                                            29.6 for determination in accordance with this clause 15 whose determination shall be final
                                            and binding, and until such determination the last applied price shall be used.

 

		15.5	During
                                            the first Calendar Year in which Crude Oil or Crude Oil as well as Natural Gas are Produced
                                            and Saved from the Licence Area and delivered under a Development Plan, the Parties shall
                                            meet in order to establish a provisional selection of the major competitive crude oils and
                                            an appropriate mechanism for the purposes of giving effect to paragraph (b)(ii) of clause
                                            15.2. The selection of crude oils will be reviewed annually and modified if necessary.

 

		15.6	In
                                            the event of any dispute between the Company and the Minister concerning the selection of
                                            the crude oils or generally about the manner in which the prices are determined according
                                            to the terms of this clause 15 any matter in dispute shall finally be resolved by a sole
                                            expert appointed in terms of clause 29.6.

 

    28

     

    

 

Clause
16

 

Natural
gas

 

		16.1	Notwithstanding
                                            the provisions of clause 8 of this Agreement, the following provisions shall apply to any
                                            Discovery of Natural Gas within the Licence Area.

 

		16.2	(a) 	If in the course of its Exploration Operations the Company
makes a Discovery of Non-Associated Natural Gas, it shall promptly inform the Minister by notice in writing of the Discovery. The Minister
and the Company shall meet as soon as possible thereafter to discuss the commercial potential of such Discovery, including but not limited
to, the terms and conditions on which such Gas might be developed, produced, processed and sold.

 

		(b)	If
                                            as a result of the discussions and evaluation of test results the Company determines that
                                            the Discovery is of potential commercial interest, then the Company shall promptly undertake
                                            a market feasibility study, which shall be based on relevant economic criteria, including
                                            but not limited to, potential gas markets, gas prices, long-term gas contracts, capital costs,
                                            operating costs as well as any other relevant criteria. In connection with such study the
                                            Company shall use its best efforts to locate all potential commercial markets for such Gas.
                                            Upon completion of the study the Company shall inform the Commissioner of the results thereof
                                            and furnish him with a copy of the study within [***] of the said completion.

 

		(c)	Subject
                                            to the other provisions of this clause 16, the Minister hereby agrees to allow the Company
                                            to retain a Discovery Block of potential commercial interest for the duration of the Exploration
                                            Licence and any renewals thereof.

 

		(d)	At
                                            any time after completion of the market feasibility study the Company may determine that
                                            an appraisal programme for the Discovery is warranted. In such case the Company shall propose
                                            for approval an appraisal programme to the Commissioner within a reasonable period of time
                                            thereafter, which shall not exceed [***], unless the Commissioner on good cause shown
                                            by the Company, allows a further period. If the Company and the Commissioner cannot agree
                                            on the appraisal programme, clause 5.9 shall apply mutatis mutandis. Within [***]
                                            of receiving approval from the Commissioner the Company shall proceed to carry out such appraisal
                                            programme in accordance with Good Oilfield Practices.

 

		(e)	If
                                            based on the market feasibility study the Company determines that an appraisal programme
                                            is not warranted the Company shall promptly inform the Commissioner of such determination.
                                            Such notice to the Commissioner shall be regarded as an application to the Minister, pursuant
                                            to section 39(3) of the Petroleum Act, for an exemption from the provisions of section 39(2)
                                            of the Act. If the Commissioner disagrees with such determination the Commissioner may cause
                                            an independent evaluation to be carried out. Such evaluation shall determine whether an appraisal
                                            programme is warranted. If the evaluation determines that appraisal of the Discovery is warranted
                                            then the Commissioner shall promptly notify the Company of such determination. Such notification
                                            shall be regarded as a decision by the Minister not to grant the Company exemption under
                                            section 39(3) of the Petroleum Act. The Company shall have [***] from the date of
                                            receipt of such notification to decide whether to proceed with an appraisal programme in
                                            accordance with the provisions of clause 16.2(d). If the Company decides not to proceed with
                                            such appraisal programme the provisions of clause 8.11 shall apply mutatis mutandis. If the
                                            Commissioner does not decide within [***] of the notification by the Company to cause
                                            an independent evaluation to be carried out, the Minister hereby agrees pursuant to section
                                            39(3) of the Petroleum Act to grant the Company an exemption, subject to the terms of clause
                                            16.3, from the provisions of section 39(2) of the said Act.

 

    29

     

    

 

		16.3	The
                                            Company shall reassess the commerciality of the Discovery [***] after the Discovery
                                            and thereafter every [***], based on the same economic criteria as set forth in clause
                                            16.2(b). The Company shall within [***] after the completion of each re-assessment
                                            inform the Minister whether it determines the Discovery still to be of potential commercial
                                            interest. A copy of any reassessment study shall be given to the Commissioner. If as a result
                                            of the Company’s reassessment under clause 16.3 the Company determines that an appraisal
                                            programme for the Discovery is warranted the Company shall propose an appraisal programme
                                            in accordance with the provisions of clause 16.2(d).

 

		16.4	If
                                            as a result of any reassessment in accordance with clause 16.3, the Company determines that
                                            an appraisal programme is not warranted the Company shall promptly inform the Commissioner
                                            of such determination. If the Commissioner does not agree with such determination, the Commissioner
                                            may cause an independent evaluation to be carried out. The provisions of clause 16.2(e) regarding
                                            such evaluation and appraisal shall apply mutatis mutandis.

 

		16.5	If
                                            as a result of the Company’s market feasibility study under clause 16.2(b), reassessment
                                            under clause 16.3 or appraisal programme conducted pursuant to clause 16.2(d), the Company
                                            determines that the Discovery is not of potential commercial interest the provisions of clause
                                            8.11 shall apply mutatis mutandis.

 

		16.6	If
                                            having carried out an appraisal programme pursuant to clause 16.2(d), the Company determines
                                            that the Discovery is not of present commercial interest but may become of commercial interest
                                            then, if the Commissioner agrees with such determination, the Minister hereby agrees to allow
                                            the Company to retain the Discovery Block for the duration of the Company’s Exploration Licence
                                            and any renewal thereof. If the Commissioner does not agree with such determination, the
                                            Commissioner may cause an independent evaluation to be carried out. Such evaluation shall
                                            determine whether the Discovery is of commercial interest. If the evaluation determines that
                                            the Discovery is of commercial interest then the provisions of clause 8.11 shall apply mutatis
                                            mutandis.

 

		16.7	For
                                            purposes of clause 16.2(a) the Company and the Minister shall undertake to negotiate in good
                                            faith in order to reach an agreement on a method of valuing such gas for purposes of royalty
                                            payable in terms of section 62 of the Petroleum Act and of tax payable in terms of the Taxation
                                            Act.

 

    30

     

    

 

		16.8	The
                                            Company shall have the right to use Natural Gas for Petroleum Operations, including, but
                                            not limited to, pressure maintenance in the oilfields in the Licence Area.

 

		16.9	Subject
                                            to the terms of clauses 16.8, 16.10 and 16.11, the Minister shall be entitled to take at
                                            the downstream flange of the separator on the production platform or, if no such separator
                                            exists, at a point of delivery mutually agreed upon at the collecting and inlet system, and
                                            utilise without any payment to the Company any Associated Natural Gas which is in excess
                                            of the quantity of Natural Gas required for Petroleum Operations. The cost of taking and
                                            utilizing such Associated Natural Gas by the Minister shall be borne solely by the Government.

 

		16.10	Subject
to clause 16.11, and to the Company’s requirements regarding such short term flaring as may be necessary for testing or other operational
reasons, Associated Natural Gas produced from the Licence Area shall be re-injected in accordance with Good Oilfield Practices. Such
Associated Natural Gas which cannot for technical reasons be re-injected may be flared only with approval in writing of the Minister
previously obtained in every particular case, which approval shall not be unreasonably withheld.

 

	16.11	If
there are reasonable grounds for believing that Natural Gas associated with Crude Oil is in such quantities as to enable its commercial
exploitation without detriment to the efficient and effective recovery of Crude Oil from the Petroleum Reservoir, the Company shall promptly
inform the Minister by written notice of the existence of such grounds and shall undertake a market feasibility study to determine the
commercial viability of such exploitation. If such study reveals that exploitation may be commercially viable the Minister and the Company
shall meet as soon as possible after completion of such study to decide whether in view of the available data the development, production,
processing and sale of such Gas by the Company is possible and, if so, on what terms and conditions such Gas may be processed and sold.
For such purposes the provisions of clause 16.7 shall apply mutatis mutandis.
	 	 
	16.12	For
                                            the avoidance of doubt, notwithstanding the provisions of clause 7.1, the Company shall not
                                            be obliged to relinquish the Discovery Block retained by the Company pursuant to the provisions
                                            of this clause 16 for so long as it holds an Exploration Licence hereunder.

 

Clause
17

 

Insurance
and assets

 

		17.1	Except
                                            to the extent insurance covering the same risk is provided by its contractors or subcontractors,
                                            the Company shall effect and, at all times during the term of this Agreement, obtain and
                                            maintain for and in relation to Petroleum Operations insurance covering the following –

 

		(a)	loss
                                            or damage to any or all of its assets being used in connection with Petroleum Operations;

 

    31

     

    

 

		(b)	loss
                                            or damage for which the Company may be liable caused by pollution in the course of or as
                                            a result of Petroleum Operations;

 

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

 

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

 

		(e)	the
                                            cost of removing wrecks and cleaning up operations pursuant to an accident in the course
                                            of or as a result of Petroleum Operations;

 

		(f)	the
                                            Company’s liability to its employees engaged in its Petroleum Operations;

 

		(f)	any
                                            other risk of whatever nature as is customary to insure against in the international petroleum
                                            industry in accordance with Good Oilfield Practices.

 

		17.2	The
                                            Company shall require its contractors to obtain and maintain insurance against the risks
                                            referred to in paragraphs (a) to (g) of clause 17.1 relating mutatis mutandis to such contractors.

 

		17.3	The
                                            amount insured against, the type of insurance referred to in clause 17.1 and clause 17.2
                                            and the terms of such insurance shall be determined in accordance with Good Oilfield Practices.

 

		17.4	The
                                            Company shall not within [***] before the end of the term of this Agreement remove
                                            from the Licence Area or sell any Immovable Assets without the approval in writing of the
                                            Minister previously obtained in every particular case.

 

		17.5	Subject
                                            to any right the Company may have to occupy any Land in terms of any other petroleum agreement
                                            and the terms of this clause, the Company shall at the end of the term of this Agreement
                                            or on the date of any earlier termination thereof or the earlier relinquishment or surrender
                                            of the Licence Area or any part thereof, if by notice in writing requested to do so by the
                                            Minister, deliver to the Government any plant, pipelines, pumps, machinery of an immovable
                                            nature and any other Immovable Assets owned and used by the Company in or in connection with
                                            the Licence Area.

 

		17.6	The
                                            Company shall, if so requested by the Minister by notice in writing, sell to the Minister
                                            at a price determined by mutual agreement, any moveable assets of the Company used in or
                                            in connection with the Licence Area. In determining the aforesaid price due regard shall
                                            be had to

 

		(a)	the
condition of the asset concerned;

 

		(b)	the
                                            deductions already allowed under the Taxation Act to the Company at the time of such determination.

 

	17.7	The
                                            terms of clause 17.6 shall not apply to any assets which are required by the Company for
                                            use by the Company in respect of Petroleum Operations in terms of any other Exploration or
                                            Production Licence.

 

	17.8	If
                                            the Minister decides to make the request referred to in clause 17.5 or 17.6, he shall give
                                            notice referred to in clauses 17.5 and 17.6 to the Company

 

		(a)	in
                                            the event of this Agreement being terminated by an effluxion of time, not less than [***]
                                            before such termination; or

 

		(b)	in
                                            the event of this Agreement being terminated before such effluxion or any earlier relinquishment
                                            or surrender of the Licence Area or any part thereof, not later than [***] from the
                                            date of such termination, relinquishment or surrender, as the case may be.

 

    32

     

    

 

Clause
18

 

Measurement
of petroleum

 

		18.1	The
                                            Company shall measure or weigh all Petroleum Produced and Saved from each Licence Area by
                                            a method or methods customarily used in Good Oilfield Practices and from time to time approved
                                            by the Minister.

 

		18.2	The
                                            Company shall not make any alteration in the method or methods of measurement or weighing
                                            used by it or any appliances used for that purpose without the consent in writing of the
                                            Minister, and the Minister may in any case require that no alteration shall be made save
                                            in the presence of a person authorized by the Minister.

 

		18.3	The
                                            Minister may from time to time direct that any weighing or measuring appliance be tested
                                            or examined in such manner on such occasions or at such intervals and by such means as may
                                            be specified in such direction.

 

Clause
19

 

Accounts
and audits

 

		19.1	The
                                            Company shall be responsible for maintaining at an address within Namibia accounting records
                                            of all expenditure and receipts of its Petroleum Operations under the Agreement in accordance
                                            with the accounting procedure set out in Annexure 4 to this Agreement.

 

		19.2	The
                                            Minister shall have the right to appoint from time to time an auditor who shall have the
                                            right to audit for purposes of the application of the Taxation Act or any other law and this
                                            Agreement the books and accounts of the Company in respect of any year (not being a year,
                                            except in exceptional circumstances, which ended more than [***] before the year in
                                            which the audit is to be carried out).

 

		19.3	An
                                            auditor referred to in clause 19.2 shall have the right to audit the Company’s records in
                                            accordance with the terms of the said Annexure 4.

 

		19.4	For
                                            purposes of any audit referred to in the said clause 19.2, the Company shall make available
                                            to the auditor all such books, records, accounts and other documents and information as may
                                            be reasonably required from the Company by him.

 

		19.5	Nothing
                                            in this clause contained shall be construed as prohibiting or limiting the Minister or any
                                            officer in the public service to audit or cause to be audited the books of the Company by
                                            virtue of any power conferred upon the Minister or such officer by or under any law.

 

Clause
20

 

Records
and reports and ownership of data

 

		20.1	The
                                            Company shall in accordance with the provisions of the Petroleum Act at all times while this
                                            Agreement is in force, maintain accurate and current records of its Petroleum Operations
                                            in its Licence Area.

 

		20.2	The
                                            Company shall save and keep for the duration of its Petroleum Operations in Namibia a representative
                                            portion of each sample of cores and cuttings taken from drilling Wells to be disposed of
                                            or forwarded to the Minister in a manner directed by the Minister. All samples acquired by
                                            the Company for its own purpose shall be considered available for inspection at any reasonable
                                            time by the Minister. Any such samples which the Company has kept for a period of [***],
                                            without receipt of instruction to forward such samples to the Minister, may be disposed of
                                            by the Company at its discretion, after not less than [***] notice to the Minister.

 

		20.3	Well
                                            logs, maps, magnetic tapes, cuts of core and cutting samples and all other geological and
                                            geophysical information obtained by the Company in the course of carrying out Petroleum Operations
                                            (hereinafter referred to as Petroleum Data) are the property of the Government, and shall
                                            be submitted to the Minister as soon as they are acquired or prepared and, except as provided
                                            in clause 20.4, may not be published, reproduced or otherwise dealt with without the consent
                                            of the Minister.

 

    33

     

    

 

		20.4	The
Company may-

 

		(a)	retain
                                            for use in Petroleum Operations copies of material constituting Petroleum Data;

 

		(b)	with
                                            the approval of the Minister, retain for use in Petroleum Operations original material constituting
                                            Petroleum Data, provided that where such material is capable of reproduction, copies have
                                            been supplied to the Minister;

 

		(c)	subject
                                            to the right conferred upon the Minister or any other person in the Petroleum Act to inspect
                                            any samples or other original materials constituting Petroleum Data, export such Petroleum
                                            Data for processing or laboratory examination or analysis, provided that representative samples
                                            equivalent in quality or, where such material is capable of reproduction, copies of equivalent
                                            quality have first been delivered to the Minister.

 

		20.5	The
                                            Company shall keep the Minister currently advised of all major developments taking place
                                            during the course of Petroleum Operations and shall furnish the Minister with Petroleum Data
                                            and other available information, reports, assessments, assessment studies and interpretations
                                            relating to the Petroleum Operations as the Minister may require.

 

		20.6	The
                                            Minister shall through his duly appointed representatives be entitled to observe the Petroleum
                                            Operations carried out by the Company and at all times to inspect all assets, records and
                                            data kept by the Company relating to such operations.

 

		20.7	Nothing
                                            in this clause contained shall be construed as requiring the Company to disclose any of its
                                            proprietary technology or that of its Affiliates.

 

Clause
21

 

 

Confidentiality
of data

 

		21.1	All
                                            Petroleum Data, information and reports obtained or prepared by the Company in terms of this
                                            Agreement shall, subject to clause 21.2 and so long as they relate to any part of the Licence
                                            Area, be treated as confidential and each of the Parties undertakes not to disclose such
                                            Data, information and reports or the contents thereof to any other person without the consent
                                            in writing of the other Party, provided that this clause shall not-

 

		(a)	prevent
                                            disclosure by the Company for the purpose of its Petroleum Operations to:-

 

		(i)	an
Affiliate;

 

    34

     

    

 

		(ii)	any
bona fide intending assignee;

 

		(iii)	any
                                            professional adviser who needs to have access to such Petroleum Data, information and reports
                                            for the effective performance of his obligations under his contract with the Company;

 

		(iv)	any
                                            bank or financial institution from which the Company is seeking or obtaining finance or which
                                            is advising the Company in connection with any issue of securities or the admission of any
                                            securities to listing on any stock exchange;

 

		(v)	a
                                            contractor of the Company;

 

		(vi)	any
                                            stock exchange in order to comply with any securities law of any country;

 

		(vii)	any
                                            court of competent jurisdiction to comply with any order or decree of such court.

 

		(b)	prevent
                                            disclosure by the Company for the purpose of trading data with third parties in accordance
                                            with normal petroleum industry practice provided the Minister’s consent (which shall not
                                            be unreasonably withheld) has been previously applied for and obtained.

 

		(c)	prevent
                                            the disclosure by the Minister or any officer in his Ministry to the National Petroleum Corporation
                                            of Namibia (Proprietary) Ltd. in terms of section 8 of the Petroleum Act; and to Professional
                                            advisers of the Ministry or the National Petroleum Corporation of Namibia (Proprietary) Ltd.;
                                            or

 

		(d)	be
                                            construed as imposing on any Party any obligation in relation to any Petroleum Data, information
                                            or reports which are, without disclosure by such Party, generally known to the public.

 

		21.2	Any
                                            Petroleum Data, information or reports disclosed by the Company to any other person in terms
                                            of clause 21.1 shall be disclosed on terms which will ensure that such Petroleum Data, information
                                            or reports are treated as confidential by the recipient.

 

    35

     

    

 

		21.3	Any
                                            Petroleum Data, information and reports relating to the Licence Area which, in the opinion
                                            of the Minister, might have significance in connection with an exploration programme to be
                                            conducted by a third party in another area may be disclosed by the Minister to such third
                                            party provided the Minister has previously obtained approval to do so from the Company. Such
                                            disclosure shall be subject to conditions agreed upon between the Minister and the Company.

 

		21.4	Any
                                            Petroleum Data, information and reports, including interpretations and assessments, assessment
                                            studies, relating to any area which ceases to be part of the Licence Area, whether as a result
                                            of relinquishment, surrender or termination of a licence shall be treated as confidential
                                            by the Company, provided however that this clause shall not:

 

		(a)	Prevent
                                            disclosure by the Company for purpose of its Petroleum Operations to:

 

		(i)	an
Affiliate;

 

		(ii)	any
bona fide intending assignee;

 

		(iii)	any
                                            professional adviser who needs to have access to such Petroleum Data, information and reports
                                            for the effective performance of his obligations under his contract with the Company;

 

		(iv)	any
                                            bank or financial institution from which the Company is seeking or obtaining finance or which
                                            is advising the Company in connection with any issue of securities or the admission of any
                                            securities to listing on any stock exchange;

 

		(v)	a
                                            contractor of the Company;

 

		(vi)	any
                                            stock exchange in order to comply with any securities law of any country;

 

		(vii)	any
                                            court of competent jurisdiction to comply with any order or decree of such court.

 

		(b)	prevent
                                            disclosure by the Company for the purpose of trading data with third parties in accordance
                                            with normal petroleum industry practice provided the Minister’s consent (which shall not
                                            be unreasonably withheld) has been previously applied for and obtained.

 

		(c)	be
                                            construed as imposing on any party any obligation in relation to any Petroleum Data, information
                                            or reports which are, without disclosure by such party, generally known to the public.

 

    36

     

    

 

		21.5	Any
                                            Petroleum Data, information and reports, including all interpretations and assessments, assessment
                                            studies based on such Petroleum Data, information and reports relating to any area which
                                            ceases to be part of the Licence Area whether as a result of relinquishment, surrender or
                                            termination of a licence shall cease to be treated by the Minister as confidential from the
                                            date on which such area ceases to be part of the Licence Area.

 

		21.6	Notwithstanding
                                            the fact that Petroleum Data, information and reports relate to an area held by the Company
                                            under Licence the Minister may, using Petroleum Data,

information
and reports supplied by the Company:

 

		(a)	publish,
                                            on completion of any Well by the Company in the Licence Area, the following summary information:

 

		-	location
of the Well (co-ordinates of the Well, Block number and the name of the sedimentary basin);

 

		-	total
depth of the Well in metres;

 

		-	stratigraphic
total depth of the Well identified by the Epoch (Jurassic, Cretaceous etc.);

 

		-	Discovery
of hydrocarbons, oil and/or gas or not (in case of Discovery neither the depth nor the stratigraphy of the producing formation will be
given);

 

		-	number
of tests performed including type of tests;

 

		-	maximum
flow rate during testing, including size of choke;

 

		-	hydrocarbon
types tested including gas oil ratio;

 

		-	water
depth;

 

		-	general
comments on further exploration in the basin etc.

 

		(b)	[***]
                                            after the completion of any survey or any Well in the Licence Area by the Company, release
                                            to any person or persons any survey data and all Well logs and all operational, technical
                                            and geological reports relating to such survey or well provided, however, that no information
                                            of an interpretive nature shall be released.

 

		21.7	Subject
                                            to the other provisions of this clause 21, the Minister may, during the currency of an Exploration
                                            or Production Licence held by the Company, request the consent of the Company to the disclosure
                                            to a third party of Petroleum Data, information and reports other than those referred to
                                            in clause 21.6 for a purpose determined by the Minister and communicated to the Company and
                                            such consent shall not be unreasonably withheld.

 

    37

     

    

 

Clause
22

 

Employment
and training

 

		22.1	In
                                            carrying out Petroleum Operations the Company shall, to the maximum extent possible, employ
                                            Namibian citizens having appropriate qualifications.

 

		22.2	The
                                            Company may employ a person who is not a Namibian citizen in a post only if the skills required
                                            in such post are not obtainable by recruitment of a Namibian citizen and the Company may
                                            at any time be called upon by the Minister to give satisfactory reasons for the continued
                                            employment of a non-citizen in any post.

 

	22.3	(a)	During
each year of the Exploration Licence or any renewal thereof, the Company shall spend a sum which is not less than a sum equal to [***]
for the purpose of the training and education of Namibians.

 

		(b)	Of
                                            the said sum, [***] shall be paid on the date of signature and thereafter on each
                                            anniversary of such date into the Petroleum Training and Education Fund. The principles governing
                                            the operation of the training fund shall be as set out in Annexure 6.

 

		(c)	Of
                                            the said sum, [***] shall be expended by the Company on attachments and in-house training
                                            of Namibian citizens in the field of natural science, engineering, technology, accounting,
                                            economics and law as related to oil and gas exploration and production to expose them to
                                            petroleum industry practice and operations. The said [***] shall be expended in accordance
                                            with the principles set out in Annexure 6.

 

		22.4	The
                                            sum referred to in clause 22.3 shall be adjusted annually by dividing such sum by the Inflation
                                            Factor.

 

		22.5	If
                                            the Price Index ceases to be published the Price Index contemplated in clause

 

		22.4	shall
                                            for the purposes of this Agreement be such price index as may be determined by mutual agreement
                                            between the parties to this Agreement.

 

		22.6	Not
                                            later than [***] after the grant of a Production Licence, the Company shall, after
                                            consultation with the Minister or his duly authorized representative, prepare and implement
                                            a programme for training and employment of Namibian citizens in each phase and level of Petroleum
                                            Operations and for the transfer of management and technical skills for the safe and efficient
                                            conduct of Petroleum Operations.

 

    38

     

    

 

Clause
23

 

Namibian
goods and services

 

		23.1	The
Company shall-

 

		(a)	use
                                            and purchase goods supplied, produced and manufactured in Namibia whenever such goods can
                                            be obtained at prices in Namibia which are competitive in international terms and are, in
                                            all substantive respects, of a quality comparable with the quality of goods from outside
                                            Namibia. The Company shall give preference to such supplier, producer or manufacturer, unless
                                            it is able to show good cause to the satisfaction of the Minister why such preference should
                                            not be given;

 

		(b)	make
                                            maximum use of contractors in Namibia where services of comparable standards with those obtained
                                            elsewhere are available from such contractors at competitive prices and on competitive terms;

 

		(c)	when
                                            it is necessary to import vehicles, machinery, plant or equipment and any such vehicles,
                                            machinery, plant or equipment are not purchased directly from a manufacturer, effect the
                                            purchase of the items through traders operating in Namibia at competitive prices;

 

		(d)	co-operate
                                            with companies in Namibia to enable them to develop skills and technology to service the
                                            petroleum industry.

 

		23.2	The
                                            Company shall ensure that a term similar to this clause is contained in its contracts with
                                            contractors.

 

Clause
24

 

Domestic
supply obligation

 

		24.1	The
                                            Company may, at the Minister’s choice, be required to sell Crude Oil in Namibia in order
                                            to satisfy Namibia’s domestic market requirements on a pro rata basis with other producers
                                            in Namibia according to the quantity of Crude Oil produced by each producer. The Minister
                                            shall give the Company at least [***] notice in advance of the said requirement, and
                                            the terms of the supply in consequence of such requirement shall be on an annual basis.

 

		24.2	The
                                            price for Crude Oil sold in terms of clause 24.1 shall be the price for that oil determined
                                            in accordance with clause 15.

 

Clause
25

 

Unit
development

 

		25.1	If
                                            a Petroleum Reservoir is partly situated in the Production Area of the Company and partly
                                            in the Production Area of any other holder of a Production Licence, the Minister may, for
                                            purposes of securing the more effective recovery of Petroleum from such Petroleum Reservoir,
                                            by notice in writing addressed and delivered to the Company, direct the Company to enter
                                            into an agreement in writing with such holder within such period as may be specified in such
                                            notice in relation to the joint development and operation of such Petroleum Reservoir and
                                            to submit

 

		(a)	such
                                            agreement forthwith to the Minister for approval; and

 

		(b)	if
                                            it is approved, a plan for the joint development and operation of the Petroleum Reservoir
                                            in question.

 

		25.2	If
                                            no plan is submitted within the period specified in the notice or within such further period
                                            as the Minister may allow or, if such plan submitted is not acceptable to the Minister, the
                                            Minister may cause to be prepared in accordance with generally accepted practices in the
                                            international petroleum industry and at the expense of the Company and the other holder concerned
                                            a plan for such joint development and operation. In the preparation of such plan the Minister
                                            shall take into consideration any presentations made by the Company and such other holder.

 

		25.3	If
                                            the Company does not agree with the proposed plan then either the Company or the Minister
                                            may refer the matter for expert determination to an expert appointed in terms of clause 29.6
                                            which determination shall be final except that the Company may within [***] of such
                                            determination notify the Minister that it elects to surrender its rights in the Discovery
                                            in lieu of participation in the joint development.

 

    39

     

    

 

Clause
26

 

Termination

 

		26.1	This
                                            Agreement shall continue to be of full force and effect for such period as the Company continues
                                            to hold an Exploration Licence or a Production Licence to which this Agreement relates and
                                            shall, subject to the terms of clause 8.14, be deemed to have been terminated, if for any
                                            reason the Company ceases to hold such Exploration Licence or such Production Licence.

 

		26.2	The
                                            Minister may by notice in writing addressed and delivered to the Company terminate this Agreement
                                            if

 

		[***]	

 

		26.3	Notwithstanding
                                            the termination of this Agreement any rights and obligations of the parties respectively
                                            expressed to arise under this Agreement on the termination thereof or any liability of any
                                            Party arising out of an earlier failure to comply with any obligation in terms of this Agreement
                                            which must be complied with by such Party shall be enforceable.

 

Clause
27

 

Vis
major

 

		27.1	Any
                                            failure by the Company to comply with any terms and conditions of this Agreement shall not
                                            be regarded as a breach of this Agreement in so far as the failure arises from vis major
                                            and if, as a result of vis major, the compliance by the Company with any of the terms and
                                            conditions of this Agreement is delayed beyond the period fixed or allowed for its compliance
                                            the period of the delay shall be added to the period so fixed or allowed.

 

		27.2	When
                                            the Company wishes to invoke the terms of clause 27.1 it shall promptly notify the Minister
                                            in writing of the occurrence of conditions of vis major and shall take all reasonable steps
                                            to remove the cause thereof and to mitigate the consequences. The Company shall promptly
                                            notify the Minister as soon as conditions of vis major no longer prevent the Company from
                                            carrying out its obligations and following such notice shall resume Petroleum Operations
                                            as soon as reasonably practicable.

 

		27.3	In
                                            this clause the expression “vis major” means any hostility, insurrections, riots,
                                            civil commotions, strikes, lockouts, labour disturbances, embargoes, blockages, health pandemics,
                                            acts of God including fires and floods, unavoidable accidents, war and acts of war, including
                                            acts of terrorism, declared or undeclared beyond the control of the Company.

 

Clause
28

 

Assignation

 

		28.1	The
                                            Company may not assign to any person, firm, company or corporation which is not a party to
                                            this Agreement any of its rights, privileges, duties or obligations under this Agreement
                                            without the approval of the Minister previously obtained in every particular case.

 

		28.2	The
                                            Company shall not be debarred from assigning in writing its rights, privileges, duties or
                                            obligations under this Agreement to an Affiliate, provided that no such assignation shall
                                            in any way relieve the Company of any of its obligations under this Agreement.

 

    40

     

    

 

Clause
29

 

Arbitration

 

		29.1	Any
                                            dispute arising between the parties relating to the construction, meaning or effect of this
                                            Agreement or the rights or liabilities of the parties in terms of this Agreement shall be
                                            resolved amicably by negotiations.

 

		29.2	If
                                            the Minister and the Company fail to resolve by way of negotiation a dispute referred to
                                            in clause 29.1, the Minister and the Company hereby agree to submit such dispute to arbitration
                                            for final settlement in accordance with the terms of clause 29.3.

 

		29.3	Any
                                            unresolved dispute referred to in clause 29.2 shall be finally settled by arbitration in
                                            accordance with the Arbitration Rules of the United Nations Commission on International Trade
                                            Law in force on the date on which this Agreement is signed. Such arbitration, unless the
                                            parties otherwise agree, shall take place in London, England. As far as practicable the Minister
                                            and the Company shall continue to implement this Agreement during the period while the arbitration
                                            is pending and during the arbitration.

 

		29.4	An
                                            arbitration referred to in clause 29.3 shall be undertaken by three arbitrators of whom-

 

		(a)	one
                                            each shall be appointed by the Minister and the Company; and

 

		(b)	one
                                            shall be appointed by the two arbitrators appointed under paragraph (a).

 

If
the Minister and the Company fail to appoint an arbitrator within [***] after receipt of a written request to do so, such arbitrators
shall at the request of the other Party, if the Parties do not otherwise agree, be appointed in accordance with the aforesaid Arbitration
Rules. If the first two arbitrators, appointed as aforesaid, fail to agree on a third arbitrator within [***] following the appointment
of the second arbitrator, the third arbitrator shall, if the Parties do not otherwise agree, be appointed at the request of either Party
in accordance with the aforesaid Arbitration Rules. If an arbitrator fails or is unable to act, his successor will be appointed in the
same manner as the arbitrator whom he succeeds.

 

		29.5	A
                                            decision of a majority of the arbitrators shall be final and binding upon the Parties and
                                            the award rendered shall be final and conclusive. The arbitrators shall state in writing
                                            the reasons on which their decision was based. Judgment on the award rendered may be entered
                                            in any court having jurisdiction or application may be made in such court for a judicial
                                            acceptance of the award and for enforcement, as the case may be.

 

		29.6	Any
matter in dispute between the parties under clauses 5.9, 9.7, 15.6, 16 and 25.3 shall be referred for determination by a sole expert
to be appointed by agreement between the parties hereto and failing such agreement by the President of the British Institute of Petroleum.

 

Clause
30

 

Performance
guarantee

 

		30.1	The
                                            Company shall secure from its holding company or any Affiliate which the Minister has by
                                            notice in writing accepted an unconditional guarantee in terms whereof that company guarantees,
                                            in a form corresponding with the form contained in Annexure 5, the due performance by the
                                            Company of all its obligations under the Petroleum Act and the Taxation Act and in terms
                                            of this Agreement and the licenses to which it relates.

 

		30.2	The
                                            guarantee referred to in clause 30.1 shall be executed before the signature of this Agreement
                                            and shall be delivered to the Minister on such signature.

 

Clause
31

 

Entire
agreement and amendments

 

		31.1	This
                                            Agreement embodies the entire agreement and understanding between the Company and the Minister
                                            relative to the subject matter hereof and supersedes and replaces any provisions on the same
                                            subject in any other agreement between the parties, whether written or oral, prior to the
                                            date of this Agreement.

 

		31.2	This
                                            Agreement may not be amended, modified, varied or supplemented, except by an instrument in
                                            writing signed by the Company and the Minister.

 

    41

     

    

 

Clause
32

 

Waiver

 

		32.1	The
                                            performance of any condition or obligation to be performed under this Agreement shall not
                                            be deemed to have been waived or postponed, except by an instrument in writing signed by
                                            the Party which is claimed to have granted such waiver or postponement.

 

		32.2	No
                                            waiver by any Party of any one or more obligations or defaults by any other party in the
                                            performance of this Agreement shall operate or be construed as a waiver of any other obligations
                                            or defaults whether of a like or a different character.

 

Clause
33

 

Applicable
law

 

This
Agreement, the interpretation thereof and any dispute arising thereunder or associated therewith shall be governed by and determined
in accordance with the laws of the Republic of Namibia.

 

Clause
34

 

Notices

 

		34.1	Any
                                            document, notice or other communication required to be given or delivered to the Company
                                            by the Minister or any officer authorized thereto shall be deemed to have been so given or
                                            delivered-

 

		(a)	if
                                            delivered to the General Manager or Deputy General Manager referred to in clause 12.4 or
                                            to the public officer of the Company or operator referred to in paragraph (b) of clause 12.5;
                                            or

 

		(b)	if
                                            left with some adult person apparently residing at or occupying or employed at the registered
                                            address of the Company or such operator; or

 

		(c)	if
                                            dispatched by registered post addressed to-

 

		(i)	the
Company or operator at the following address:

 

Elephant
Oil Limited

6th
Floor

60
Gracechurch Street

London,
England EC3V 0HR

 

(insert
postal address of the Company or operator); or

 

		(ii)	the
                                            General Manager or Deputy General Manager referred to in clause 12.4 to the address referred
                                            to in clause 12.4; or

 

		(iii)	the
                                            public officer at its or his last known address; or

 

		(d)	if
                                            transmitted by means of a facsimile transmission to the person concerned at the registered
                                            office of the Company.

 

    42

     

    

 

		34.2	Any
                                            document, notice or other communication referred to in clause 34.1 which has been given or
                                            delivered in the manner contemplated in paragraph (c) of that clause shall, unless the contrary
                                            is proved, be deemed to have been received by the person to whom it was addressed at the
                                            time when it would, in the ordinary course of post have arrived at the place to which it
                                            was addressed.

 

		34.3	Any
                                            document, notice or other communication required to be given or delivered to

 

		(a)	the
                                            Minister by the Company shall be deemed to have been so given or delivered if dispatched
                                            by registered post addressed to the Minister at the following address:

 

Ministry
of Mines and Energy

Private
Bag 13297

Windhoek,
Namibia

 

		(b)	the
                                            authorized officer by the Company shall be deemed to have been so given or delivered if dispatched
                                            by registered post addressed to the officer at the following address:

 

Ministry
of Mines and Energy

Private
Bag 13297

Windhoek,
Namibia

 

		(c)	the
                                            Minister of Finance by the Company shall be deemed to have been so given or delivered if
                                            dispatched by registered post addressed to the Minister of Finance at the following address:

 

Ministry
of Finance

Private
Bag 13295

Windhoek,
Namibia

 

*******************

 

		34.4	Notwithstanding
the above, for purposes of giving notice shall mean actual delivery of the notice to the address of the Minister or the Company to the
most current address specified under Clause 43; provided that any notice sent by facsimile or email after 5:00 p.m. on a Business Day
or on a weekend or holiday at the location of the receiving Party shall be deemed given on the next following Business Day of the receiving
Party.

 

    43

     

    

 

Clause
35

 

Customs
Exemptions

 

		35.1	[***]

 

		35.2	[***]

 

		35.3	Disposal
                                            of Imported Items. Any item imported by Company, or its subcontractors may be sold in Namibia
                                            upon payment of applicable customs duties, if any, on the price of the item at the time of
                                            such sale or may be exported pursuant to clause 35.4. Items imported by Company or its subcontractors,
                                            which are sold or saleable only for scrap value may be sold as such, or otherwise be properly
                                            disposed of, with payment of customs duties. In the event of a sale by Company or its subcontractors
                                            under this clause 35.4, Company or its subcontractor shall be entitled to retain and repatriate
                                            in a convertible currency the proceeds therefrom as provided in this Agreement.

 

		35.4	Exports.

 

		(a)	Any
                                            of the items imported into Namibia by Company, its subcontractors or their employees, which
                                            has not become the property of the Government pursuant to the provisions hereof may be exported
                                            by the importing party at any time without payment of any customs duties or other charges.

 

		(b)	Company
                                            shall be free to export any and all Petroleum to which it is entitled pursuant to this Agreement
                                            and all Petroleum exported by Company shall be exempt from all charges in respect of exports
                                            of Petroleum.

 

Clause
36

 

Exchange
Rights

 

		36.1	Registration.
                                            Funds transferred into Namibia for local expenditures, funds utilized abroad to purchase
                                            goods and services for Petroleum Operations, charges for services performed by Company or
                                            its subcontractors outside Namibia as part of Petroleum Operations and all other expenditures
                                            and investments made pursuant to this Agreement shall be filed by Company’s Namibian
                                            bankers with the Bank of Namibia which shall issue appropriate written confirmation to Company.

 

		36.2	Funds
                                            for Local Expenditures. Funds required by Company and foreign subcontractors to meet local
                                            expenditures shall be imported into Namibia in freely convertible currencies, transferred
                                            to local banks and converted to Namibia currency. If it or they so desire, Company and/or
                                            its foreign subcontractors may borrow Namibia currency from local banks in order to meet
                                            local expenditures.

 

		36.3	Foreign
                                            Exchange. Purchase or sale of foreign exchange shall be affected at the exchange rate most
                                            favorable to Company, as quoted by the Bank of Namibia.

 

		36.4	Foreign
                                            Bank Accounts. Company is hereby authorized to open, maintain, control and operate accounts
                                            in any currency in foreign banks outside Namibia, to have full and complete control of such
                                            accounts, and to retain abroad and freely dispose of any funds in such accounts. Among other
                                            reasons, withdrawals may be made for payments for goods and services acquired abroad, for
                                            payments to subcontractors engaged in Petroleum Operations, and for transferring funds to
                                            local banks in Namibia to meet local expenditures, all in connection with Company’s
                                            activities under this Agreement.

 

		36.5	Exchange
                                            Rights. Company is hereby granted the following exchange rights:

 

		(a)	To
                                            provide in freely convertible foreign currencies all funds needed to conduct Petroleum Operations;

 

		(b)	To
                                            hold such funds abroad with no obligation to transfer funds or assets to Namibia except such
                                            funds as are necessary to meet Company’s need for Namibia currency, in the case that
                                            Company does not borrow such funds from local banks;

 

		(c)	To
                                            freely dispose of any funds held outside Namibia;

 

		(d)	To
                                            export any and all Petroleum to which it is entitled pursuant to this Agreement;

 

		(e)	To
                                            retain abroad and freely dispose of all proceeds received outside from the export, sale or
                                            exchange of Petroleum with no obligation to remit such export proceeds except as may be needed
                                            to meet Company’s expenses in Namibia, in the case that Company does not borrow funds
                                            from local banks for that purpose;

 

    44

     

    

 

		(f)	To
                                            remit and/or repatriate abroad and freely dispose of all (i) proceeds received within Namibia
                                            from the sale or exchange of Petroleum within Namibia, (ii) proceeds received from other
                                            operations and activities within Namibia, and (iii) any other funds accruing to Company within
                                            Namibia, including, without limiting the generality of the foregoing, all profits and or
                                            dividends; such remittance and/or repatriation to be accomplished in accordance with procedures
                                            of any exchange control Laws which may be in force, but which shall in no event prevent or
                                            delay such remittance and/or repatriation;

 

		(g)	To
                                            pay its subcontractors and employees in foreign currencies, either inside or outside of Namibia.
                                            Expatriate employees shall be required to bring into Namibia through local banks and convert
                                            into Namibia currency only such foreign exchange as is required to meet their personal living
                                            expenses. Such employees shall be authorized to remit and/or repatriate any personal funds
                                            or proceeds received in Namibia from the sale of personal belongings; and

 

		(h)	To
                                            maintain a special account or accounts for non-Namibian funds in a local bank or banks chosen
                                            by Company from which funds can be disbursed for the purpose of making any payments required
                                            in conducting Petroleum Operations, or making payments to, or for the benefit of, Company’s
                                            employees, whether local or expatriate.

 

		36.6	Payments
                                            under this Agreement. Any payments made by any Party to another Party shall be made in U.S.
                                            Dollars unless the Parties mutually agree upon another currency.

 

		36.7	Subcontractors.
                                            Company’s subcontractors and their employees shall have the same rights as Company
                                            and its employees under this clause 36.

 

		36.8	Implementation.
                                            The Company acknowledges that the provisions of this clause 36 are granted in accordance
                                            with and subject to the Exchange Control Laws applicable in Namibia and shall only be implemented
                                            by the parties in accordance with such laws. The Company shall comply with the prescribed
                                            formalities and procedures and engage the services of an authorized dealer in foreign
                                            exchange to assist it in facilitating and implementing the provisions of this clause 36.

 

    45

     

    

 

IN
WITNESS whereof this Agreement has been duly signed at WINDHOEK on this .......day of .............
2021..., by and between the GOVERNMENT OF THE REPUBLIC OF NAMIBIA, as represented by The Honorable Tom Alweendo, the Minister
of Mines and Energy, and Elephant Oil LTD as represented by Matthew B. Lofgran,; and Niikela Oil (Pty) LTD represented
by Ms.Mbute Rusa Andreas; and the National Petroleum Corporation of Namibia (PTY) LTD (NAMCOR E&P) represented by Mr. Immanuel
Mulunga.

 

-----------------------------------------------

 

For
the Government of the Republic of Namibia, The Honorable Tom Alweendo, 

MINISTER
OF MINES AND ENERGY

 

Witnesses:

 

1.
-------------------------

 

 

2.
-------------------------

 

-----------------------------------------------

 

For
Elephant Oil LTD 

Matthew
B. Lofgran, Chief Executive Officer 

 

Witnesses:

 

1.
------------------------

 

2.
------------------------

________________________________

 

For
Niikela Exploration (Pty) LTD 

Ms.
Mbute Rusa Andreas, representative 

 

Witnesses:

 

1.
------------------------

 

2.
------------------------

 

___________________________________

 

For
NAMCOR EXPLORATION AND PRODUCTION (Pty) LTD

Mr.
Immanuel Mulunga, representative

 

Witnesses:

 

1.
------------------------

 

2.
------------------------

 

    46

     

    

 

ANNEXURE
1

 

[***]

 

    47

     

    

 

ANNEXURE
2

 

[***]

 

    48

     

    

 

ANNEXURE
3

 

BANK
GUARANTEE

 

in
respect of

 

INITIAL
EXPLORATION PERIOD

 

(Clause
4.7)

 

[***]

 

    49

     

    

 

BANK
GUARANTEE

in
respect of

FIRST
RENEWAL EXPLORATION PERIOD

(Clause
4.7)

 

[***]

 

    50

     

    

 

BANK
GUARANTEE

in
respect of

SECOND
RENEWAL EXPLORATION PERIOD

(Clause
4.7)

 

[***]

 

    51

     

    

 

ANNEXURE
4

 

[***]

 

    52

     

    

 

ANNEXURE
5

 

[***]

 

    53

     

    

 

ANNEXURE
6

 

[***]

 

    54

     

    

 

ANNEXURE
7

 

[***]

 

 

55Exhibit 10.2

 

CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN REDACTED BECAUSE CONFIDENTIAL
TREATMENT FOR SUCH INFORMATION HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION,
AND THE INFORMATION HAS BEEN MARKED AT THE APPROPRIATE PLACE WITH BRACKETS AND THREE ASTERISKS [***].

 

PRODUCTION SHARING
AGREEMENT FOR OIL

EXPLORATION AND EXPLOITATION

 

Between

 

 

THE GOVERNMENT OF THE REPUBLIC OF BENIN

 

 

And

 

 

THE COMPANY: ELEPHANT OIL LTD

 

 

CONCERNING 

 

 

BLOC B

 

 

     

     

    

 

TABLE OF CONTENTS 

 

	PREAMBLE	3
	ARTICLE 1:	DEFINITIONS	4
	ARTICLE 2:	 SUBJECT-MATTER OF THE CONTRACT	9
	ARTICLE 3:	CONTRACT VALIDITY PERIOD	10
	ARTICLE 5:	SURFACE AREA RETROCESSIONS	13
	ARTICLE 7:	TECHNICAL AND BUDGETARY MANAGEMENT COMMITTEE	14
	ARTICLE 8:	ANNUAL WORK PROGRAMME, BUDGETS AND REPORTS	15
	ARTICLE 9:	DECLARATION OF COMMERCIAL DISCOVERY AND DESIGNATION OF THE DEVELOPMENT ZONE	18
	ARTICLE 10:	 EXCLUSIVE RISKY OPERATIONS	20
	ARTICLE 11:	GOVERNMENT PARTICIPATION	21
	ARTICLE 12:	 ROYALTIES, COST RECOVERY & PRODUCTION SHARING	21
	ARTICLE 13:	MEETING THE NATIONAL CONSUMPTION NEEDS	22
	ARTICLE 14:	APPLICABLE TAX SYSTEM	23
	ARTICLE 15:	MEASUREMENT, PROVISION, EVALUATION AND SALE OF HYDROCARBONS	25
	ARTICLE 16:	NATURAL GAS	27
	ARTICLE 17:	DAMAGES, ABANDONMENT, ENVIRONMENTAL PROTECTION AND SECURITY	29
	ARTICLE 18:	 FOREIGN EXCHANGE ARRANGEMENTS	32
	ARTICLE 19:	LOCAL CONTENT, SOCIAL PROGRAMMES AND SIGNING BONUS	33
	ARTICLE 21:	CONFIDENTIAL NATURE OF THE DATA	35
	ARTICLE 22:	ASSIGNMENT OF RIGHTS	36
	ARTICLE 23:	FORCE MAJEURE	37
	ARTICLE 24:	ARBITRATION AND EXPERTISE	38
	ARTICLE 25:	CANCELLATION	39
	ARTICLE 27:	 NOTIFICATION	41
	ARTICLE 28:	APPLICABLE LEGISLATION, STABILISATION AND COMPENSATION	42
	ARTICLE 30:	GUARANTEES FROM PARENT COMPANIES	44
	ARTICLE 31:	FINAL PROVISIONS	45

 

    Page 2 of 52

     

    

 

PREAMBLE

 

WHEREAS: 

 

In accordance with Law No. 2006-18 of 17 October
2006 constituting the Oil Code of the Republic of Benin, the exploration, research, exploitation, holding, transport, transit and trade
of Hydrocarbons on the territory and in the territorial waters of the Republic of Benin and the continental shelf adjacent thereto shall
be subject to the provisions of the aforesaid law, which furthermore stipulates that deposits of liquid and gaseous Hydrocarbons belong
to the State and constitute transferable minerals.

 

In accordance with Article 15, the Government
may undertake any oil operation alone or in association with private capitals. It may undertake any prospecting operation without the
authorization set out in article 5 of this Oil Code.

 

It may issue to any public service or enterprise
enjoying legal entity status, an oil title or a provisional authorization to exploit or prospect as set out in articles 5, 6, 7 and 8
of the Oil Code.

 

In accordance with Article 20, no person may acquire
the hydrocarbons research permit or permit H if they do not show the necessary technical capacities and financial base to undertake the
research activities and if they do not subscribe to the commitment to allocate a minimum appropriate financial effort to research during
the validity period of the permit.

 

A minimum works programme, a training programme
for national employees, the income tax system and the financial effort agreed upon should be defined in the oil contract.

 

In accordance with Article 11, Elephant Oil Ltd
must establish a subsidiary domiciled at its headquarters in the Republic of Benin, which, from its date of registration, shall replace
Elephant Oil Ltd in its rights and obligations for the conduct of Oil Operations without any other authorisation being necessary.

 

In accordance with the Oil Code in effect in the
Republic of Benin, the parties wish to enter into this Contract, under the form of a production-sharing agreement for oil exploration
and exploitation.

 

The Government of the Republic of Benin has decided
to enter into this contract with the company:

 

ELEPHANT OIL LTD

 

The undersigned parties, represented by:

 

on the one hand, Mr. Barthélémy
Dahoga KASSA,

 

The Minister of Energy, Oil and Mining Research,
Water and Development of Sustainable Energy.

 

And

 

on the other hand by Mr. Matthew LOFGRAN,

 

President of ELEPHANT OIL LTD

 

Hereby agree to the following:

 

The following terms appearing in the Contract
shall be defined as follows unless otherwise expressly indicated or unless otherwise agreed upon by both parties. The definitions shall
be the same whether the terms are used in the singular or plural form.

 

    Page 3 of 52

     

    

 

ARTICLE 1: DEFINITIONS

 

		1.1	“Affiliate” or “Affiliated Company” shall mean a company or any
other enterprise that controls one or several enterprises that comprise the Contractor, or that is controlled by one or several enterprises
that comprise the Contractor, or that is controlled by an enterprise that controls the Contractor. Controlling shall mean to directly
or indirectly hold more than fifty percent (50%) of the shares comprising the capital of the controlled company, thus conferring to the
enterprise holding the control, the majority of the voting rights in the controlled company.

 

		1.2	“Calendar Year” shall mean a period of twelve (12) consecutive months starting on the
first of January and ending the thirty-first of the following December.

 

		1.3	“Contract Year” shall mean a period of twelve (12) consecutive months from the Effective
Date of the Contract or the anniversary date of its signature.

 

		1.4	“Appendix” shall mean an appendix attached to the Contract and forming an integral
part of the Contract. In case of non-conformity or a conflict between the Contract and one of its appendixes, the provisions of the Contract
shall prevail.

 

		1.5	“Accounting Appendix” shall mean the accounting procedures and formalities set out
in Appendix “D”.

 

		1.6	“Article” shall mean any numbered provision of the Contract, including all its sub-clauses,
unless it is expressly indicated that it is an article of the Code.

 

		1.7	“Barrel” shall mean a US Barrel, a quantity or unit of Oil measurement equivalent to
158.5556 litres.

 

		1.8	“BLOC” is
defined as the area defined by the geographic coordinates and map found in Appendix B. 

 

		1.9	“Available Crude” shall mean the remaining quantity of the Total Production of the
Crude extracted in the Contract Region after deducting losses related to Oil Operations and the Tax on Oil Production in accordance with
Article 12.1 of this Contract.

 

		1.10	“Crude Profit” or “Oil Profit” shall mean the remaining Crude Oil every
year after deducting the Oil Cost.

 

		1.11	“Budget” shall mean the financial estimate of all oil activities in an Annual Works
Programme.

 

    Page 4 of 52

     

    

 

		1.12	“Code” shall mean the law No. 2006-18 of 17 October 2006 relating to the Oil Code in
the Republic of Benin.

 

		1.13	“Contractor” shall mean Elephant Oil Ltd and its subsidiary, which will be created
pursuant to Article 11 of the Oil Code, as well as its successors and/or any transferee enjoying any of its rights in accordance with
the Contract, the transfer of which shall be in conformity with Article 22.

 

		1.14	“Contract” shall mean this document in its original version, duly signed including
its Appendixes and any amendment that the Parties may sign subsequently.

 

		1.15	“Production Costs” shall mean the costs and fees caused by the Production Operations
not including the new investments made during this phase. These costs also include the exportation costs of Hydrocarbons as well as the
maintenance and abandonment costs of the oil installations.

 

		1.16	“Oil Costs” shall mean all costs and fees related to Oil Operations in accordance with
the Contract and set out in the Accounting Appendix.

 

		1.17	“Exploration Costs” shall mean the costs and fees related to Exploration operations.

 

		1.18	“Development Costs” shall mean the costs and fees related to the Development Operations.

 

		1.19	“Cost-Stop” shall mean the Crude intended for the recovery of the Oil Costs.

 

		1.20	“Starting Date of the Commercial Production” shall mean the date of first delivery
of Hydrocarbons in commercial quantities to the delivery point in Benin.

 

		1.21	“Effective Date” shall mean the date on which this Contract is signed by the duly authorized
representatives of both Parties.

 

		1.22	“Discovery” shall mean the detection of Hydrocarbons from a reservoir or geological
structure where such Hydrocarbons were not previously identified, leading to Oil Operations in accordance with the Contract, and when
these Hydrocarbons are made recoverable on the surface through conventional methods used in the international oil industry.

 

		1.23	“Commercial Discovery” shall mean a Hydrocarbon Discovery reserves following Exploration
Operations that is deemed commercial in accordance with the provisions of Article 9.

 

		1.24	“Foreign currency” shall mean any foreign currency that may be exchanged freely and
generally accepted by the international banking system.

 

		1.25	“Dollars” shall mean the official currency of the United States of America.

 

		1.26	“F CFA” is the official currency in the Republic of Benin.

 

		1.27	“Data” shall mean any document, report and information of a technical, economic or
scientific nature concerning the Contract Region.

 

		1.28	“Expatriate Employee” shall mean an employee of the Contractor or of a sub-contractor
who has been recruited as such and assigned to the Oil Operations in Benin.

 

		1.29	“State” shall mean the Republic of Benin, its Government, its administrative structures
and all political subdivisions and institutions.

 

    Page 5 of 52

     

    

 

		1.30	“Exploration” shall mean the planning, implementation and evaluation of any type of
geological, geophysical, geochemical studies and others as well as drilling Exploration Wells for the purpose of a Hydrocarbon Discovery.

 

		1.31	“Exploitation’’ shall mean the operation consisting of extracting Hydrocarbon
substances for disposal for utilitarian purposes.

 

		1.32	“Associated Gas” shall mean the Gas extracted from a well along with Crude Oil.

 

		1.33	“Natural Gas” shall mean Hydrocarbons in their gaseous state in normal conditions of
atmospheric pressure and temperature, including, without any limitation, wet gas, dry gas, casing head gas and any gaseous hydrocarbon,
including residual gas after liquid condensation or extraction, but does not include the said extracted condensates or liquids.

 

		1.34	“Non-Associated Gas” shall mean the Natural Gas that is exploited in parallel with
the Crude Oil or that exists in parallel with Crude Oil that cannot be produced commercially whereas the said Natural Gas is produced
commercially.

 

		1.35	“Gas Deposit” shall mean one or several Natural Gas accumulations superposed vertically
in the Contract Region and having an established commercial value in accordance with Best Practices.

 

		1.36	“Oil Deposit” shall mean an accumulation of Crude Oil, or multiple vertically superposed
accumulations of Crude Oil in the Contract Region and having an established commercial value in accordance with Best Practices.

 

		1.37	“Government” shall mean the organ grouping together all the Ministers of the State.
In this Contract, it shall mean the Government of the Republic of Benin, its representatives or proxies.

 

		1.38	“Hydrocarbons” shall mean Crude Oil and/or Natural Gas.

 

		1.39	“Working Day” shall mean all working days from Monday to Friday except for days declared
totally or partially non-working days in Cotonou, Benin by the appropriate governmental authorities.

 

		1.40	“Minister” shall mean the Minister in charge of Hydrocarbons in the Republic of Benin.

 

		1.41	“Exploration Operations” shall mean operations undertaken in accordance with the Contract
to discover Hydrocarbon accumulations and to evaluate the extent and volume of these accumulations, the characteristics of the Reservoirs
and their probable behaviour during production. The Exploration Operations shall include geological, geophysical and geochemical research,
studies, drilling, deepening, abandonment or conditioning of wells and their evaluation as well as any related operations.

 

		1.42	“Development Operations”
                                            shall mean all operations undertaken in accordance with the General Development Programme
                                            in order to exploit Hydrocarbon
                                            accumulations in the sub-soil of the Development Zones. These operations shall include:

 

		●	Drilling,
                                            conditioning and sampling of development wells, drilling and conditioning of wells to inject
                                            gas or water; 

 

		●	The
                                            installation of gathering pipelines, separators, reservoirs, pumps, artificial loaders and
                                            other production and injection facilities required to produce, treat and transport the Hydrocarbons
                                            up to the earth-based or offshore Hydrocarbon storage facilities or gas treatment facilities;
                                            and

 

    Page 6 of 52

     

    

 

		●	The
                                            installation of pipes inside or outside the Contract Region to the storage or delivery points,
                                            the construction of these facilities to stock Crude Oil or treat the Gas and all related
                                            operations that are not explicitly mentioned in this document but that are needed for the
                                            development and production of these Hydrocarbon accumulations and for the delivery of Crude
                                            Oil and/or gas to the Delivery Point, in accordance with Best Practices.

 

		1.43	“Oil Operations” shall mean all operations authorized by the Contract and that are
related to exploration, development, production, separation and treatment, storage, transportation and selling or transferring of Hydrocarbons
up to the exportation point or to the Delivery Point agreed upon in Benin or to the delivery point in a refinery in Benin in accordance
with the Contract; they shall cover the treatment operations of the Natural Gas but shall not include refining operations of the Crude
Oil.

 

		1.44	“Production Operations” shall mean operations undertaken to produce Hydrocarbons in
the Contract Region such as extraction, injection, stimulation, treatment, storage, transportation to the delivery point(s), loading,
including exportation of those Hydrocarbons, as well as the maintenance and abandonment of the required facilities.

 

		1.45	“Parties” shall mean the Government and the Contractor.

 

		1.46	“Crude Oil” shall mean the crude mineral oil, asphalt, ozokerite and all other types
of Hydrocarbons and bitumen, solid or liquid, in the natural state or obtained from the Natural Gas by condensation, separation or extraction.

 

		1.47	“Delivery Point” shall mean the Terminal Point of the Pipelines downstream from the
storage facilities from which the Oil or the Gas is delivered to be exported. The location of the Delivery Point shall be agreed upon
by both Parties.

 

		1.48	“Commercial Production” shall mean the quantity of Crude Oil or Natural Gas or both,
likely to be delivered to the Delivery Point in accordance with a regular production and sales programme.

 

		1.49	“Total Crude Oil Production” shall mean the quantity of Crude extracted from the Contract
Region after extracting the water, foreign substances and after deducting the quantities used for Oil Operations.

 

		1.50	“Work Programme” shall mean all plans developed every year to carry out the Oil Operations.

 

		1.51	“General Development Programme” shall mean a plan established for the development of
an Oil Deposit or a Gas Deposit agreed upon by the Parties.

 

		1.52	“Appraisal Well” shall mean a well, different from an exploration well, drilled to
assess the commercial viability of a geological trap where Hydrocarbons have been discovered.

 

		1.53	“Exploration Wells” shall mean any well drilled as part of the Exploration Operations
including dried wells and discovery wells.

 

		1.54	“Development Wells” shall mean a well drilled in order to produce Hydrocarbons from
a known Reservoir assessed and tested, to maintain and increase production, or to speed up the extraction, including production and injection
wells.

 

		1.55	“Contract Region” shall mean the entire geographical area defined by the perimeter,
the coordinates of which appear in Appendix “A” and that are represented on the map in Appendix “B”, except any
part for which the Contractor has, from time to time, abandoned or renounced its rights in accordance with the Contract. In case of non-compliance
or conflict between Appendix “A” and Appendix “B”, Appendix “A” shall prevail.

 

    Page 7 of 52

     

    

 

		1.56	“Best Practices” shall mean all good, healthy, economic and efficient practices generally
accepted in the international oil industry.

 

		1.57	“Reservoir” shall mean the subsoil rock containing Hydrocarbon in its voidages and
having a common pressure system in its dimensions.

 

		1.58	“SOBEH” is a national
                                            company with the mission of holding, managing and investing in any way whatsoever on behalf
                                            of the Government or on its own behalf directly or indirectly in all activities associated
                                            with the research, exploitation, commercialisation of crude oil, refining operations and
                                            all activities directly related to the activities indicated above;

 

		1.59	“Basement” shall mean eruptive, metamorphic or other rocks that, based on their nature
and according to widely accepted knowledge in the international oil industry, cannot contain Hydrocarbon deposits on the one hand, and
on the other hand, impenetrable rock substances such as salt and clay domes as well as any other rock rendering the continuation of drilling
activities impracticable or economically unjustifiable using modern drilling technology normally used in the international oil industry.

 

		1.60	“Sub-Contractor” shall mean any individual or legal entity the Contractor uses to provide
services pursuant to the Contract.

 

		1.61	“London Inter-Bank Offered Rate (LIBOR)” shall mean the closing interest rate for deposits
in dollars at six (6) months on the London Interbank market and published by the London branch of “The Bank of America” or
by any other bank agreed upon by the Parties, the day in question or the immediate preceding bank day if the day in question is not a
working bank day in London.

 

		1.62	“Interest rate of the Contract” shall mean the “LIBOR rate” plus one percent.

 

		1.63	“Oil Production Tax” shall mean the Royalty (proportional mining royalty) as defined
in the Code and shall not be less than [***]% of the Total Crude Oil Production.

 

		1.64	“Test” refers to any operation intended to evaluate the capacity of a zone to produce
Hydrocarbons using MDT and/or DST tools.

 

		1.65	“Quarter” shall mean a period of three (3) consecutive months to be counted respectively
from 1 January , 1 April , 1 July and 1 October of each Calendar Year.

 

		1.66	“Sales to Third Parties” shall mean sales of Hydrocarbon products in the Contract Region
and meeting the following requirements:

 

		(a)	The price agreed upon shall be the only consideration for the sale;

 

		(b)	The sales conditions shall not be subject to any commercial relationship other than the one created by
the Sales Agreement itself between the seller and the buyer or any of their Affiliates;

 

		(c)	Neither the seller nor any of its Affiliates shall have a direct or indirect interest in the sale or future
transfer of the Hydrocarbons or in any derivative product;

 

		(d)	These sales shall not entail any processing agreement or barter or exchange agreement.

 

    Page 8 of 52

     

    

 

		1.67	“Development Zone” shall mean the portion of the Contract Region that, according to
the available seismic information and data on the wells, is reasonably qualified to cover the horizontal span of Hydrocarbon accumulation
constituting a Commercial Discovery and designated as such in an approved Global Development Programme. The Development Zone shall comprise
the depth corresponding to the assessed and tested reservoirs between the surface and the basement.

 

ARTICLE 2: SUBJECT-MATTER OF THE CONTRACT

 

		2.1	By this Contract, the Government shall give to the Contractor the exclusive right to undertake Oil Operations
in the Contract Region in order to exploit, develop and produce Hydrocarbons in that region, in accordance with the provisions of the
Oil Code and the Contract, in compliance with the laws and regulations in force in the Republic of Benin. The Government shall implement
all necessary administrative procedures so as to allow the Contractor to enjoy its rights and to perform its duties.

 

		2.2	In accordance with article 20 of the Oil Code, the Contractor declares that it possesses the necessary
technical and financial capacities and agrees to undertake all of the Oil Operations in accordance with this Contract and Best Practices.

 

		2.3	With regard to the Bloc, once a General Development Programme concerning a Hydrocarbons Discovery is approved
in the shortest deadlines, in accordance with the terms of the Contract, the Contractor shall enjoy the full rights to conduct the Development
and Production Operations and shall hold the benefit of these economic activities in usufruct provided that the obligations of the Contract
and the Code are respected.

 

		2.4	The Contractor shall be bound to supply all necessary technical, financial, human and economic resources
for the Oil Operations. Subject to the proportional interest of the Government, which the Contractor accepts under a portage arrangement,
all costs and outlays incurred through the Oil Operations shall be the responsibility of the Contractor who shall support them exclusively.
Moreover, the Contractor shall act as the technical, financial and economic manager of the Oil Operations during the exploratory period.

 

		2.5	The Minister in charge of Hydrocarbons in his capacity as the Representative of the Government, shall
be in charge of supervising the Oil Operations to ensure that the Contractor is performing his duties in accordance with the Contract.
The Minister shall carry out this duty at any moment through its technical services, which include the General Directorate of Hydrocarbons
and other Fossil Fuels. The Contractor is required to facilitate the access of the representatives of the Minister to its data and facilities
to allow them to accomplish their missions through the operational fund set up by the Companies.

 

    Page 9 of 52

     

    

 

ARTICLE 3: CONTRACT VALIDITY PERIOD

 

		3.1	Effective Date

 

The Contract shall be effective from
its date of signing by the Minister in charge of Hydrocarbons and shall end at the expiry date indicated below, subject to the provisions
of Article 25 relating to termination.

 

		3.2	Validity Period 

 

		3.2.1	The duration of the Contract shall be divided into two periods: an exploration period and an exploitation
period.

 

		3.2.2	The exploration period shall comprise an initial phase of [***], with [***] possible extension
phases of [***] each. These extensions shall be granted provided that the Contractor has fully respected its working, retrocession
and expense obligations and other significant obligations related to the preceding phase.

 

		3.2.3	Subject to fulfilling all of the obligations related to the ongoing phase, the Contractor may request
in writing to the Minister to move on to the next phase (first or second extension phase) at least [***] calendar days before the
end of the said phase. If this request is not made on time and if a Commercial Discovery has not been made, the Contract shall end at
the end of the phase in question of the exploration period.

 

		3.2.4	Subject to the provisions relating to termination and in case no Hydrocarbon Discovery has been made during
the exploration period, the Contract shall expire at the end of that period.

 

If at least one (1) Commercial Discovery
has been made before the end of the exploration period, the Contract shall remain in force with regard to the corresponding Development
Zones.

 

		3.2.5	In case of Commercial Hydrocarbon Discovery, the Government shall automatically grant to the Contractor
at its request an exploitation permit covering the Development Zone, the perimeter of which has been approved in the context of a General
Development Programme in accordance with the provisions of Article 9. The duration of the exploitation permit during which the Contractor
shall be authorized to ensure the production of each discovered Oil Deposit or Gas Deposit shall be fixed at [***] from the date
the discovery is declared to be a Commercial Discovery in accordance with the provisions of Article 9 of the Contract.

 

Over the duration
of the Contract, the Contractor may retrocede one or several Development Zones, object of an exploitation permit subject to the approval
of the Minister.

 

		3.2.6	If after the expiration of the exploitation period defined above, commercial exploitation is still possible,
the Contractor may be authorized at its request, to continue the exploitation for an additional period of [***], if it has fulfilled
all the contractual obligations during the preceding exploitation period.

 

    Page 10 of 52

     

    

 

		3.2.7	When the last exploitation permit given to the Contractor expires, the rights and obligations defined
in this Contract shall be null and void.

 

		3.2.8	To be granted an exploitation authorization, the Contractor shall submit to the Government a precise delimitation
of the required perimeter in such a way that it covers the entire presumed surface area of the discovered Deposit.

 

		3.2.9	If, during the works subsequent
                                            to the discovery it appears that the deposit has a greater surface area than initially planned
                                            in accordance with the previous paragraph, the Government shall grant to the Contractor in
                                            the context of the exploitation authorization already given, the additional surface area
                                            in such a way that all the deposits are covered, on condition
                                            that the above-mentioned extension be an integral part of the Contract Region as it is defined
                                            during the said modification. If the said additional surface area is outside the Contract
                                            Region, the Government shall give to the Contractor this additional surface area if it is
                                            not the object of mining rights already given to a third party or a request for such rights.

 

ARTICLE 4: OWNERSHIP
OF ASSETS, DATA AND HYDROCARBONS

 

		4.1	Ownership of
                                            assets

 

		4.1.1	The
                                            land shall become Government property as soon as they are acquired by the Contractor. The
                                            Minister must cooperate in taking all the steps in favour of the Contractor and at the written
                                            request of the latter, to obtain licenses, permits, surface rights, utilities, rights to
                                            have access and leave the Contract Region freely, utilisation of waters and any other type
                                            of utilities on any land or water body of public or private utility, to allow the Contractor
                                            to achieve the Oil Operations on the Benin territory, in accordance with the laws in force
                                            in the country.

 

		4.1.2	Without
                                            prejudice to the above-mentioned provisions, the ownership of the moveable and non-moveable
                                            assets acquired by the Contractor and belonging to it/her for the Oil Operations, shall be
                                            automatically transferred from the Contractor to the Government as soon as their cost has
                                            been totally depreciated by the Contractor, who continues to use it for production needs
                                            or, otherwise, at the end of the Contract. When the Contract expires, the Contractor shall
                                            be required to give back to the Benin Government, through the Minister and exempt of any
                                            tax, the ownership of lands, buildings, installations, accessories and permanent equipments
                                            that it has acquired to undertake the Oil Operations. After that, the Contractor shall be
                                            free of any obligation, including obligations stemming from abandonment procedures and rehabilitation
                                            of the environment with regard to the said assets if the activities of the field were to
                                            continue. During the validity period of the Contract, the Contractor shall be bound to conserve
                                            and preserve in good state the moveable and non-moveable assets acquired to conduct the Operations.

 

    Page 11 of 52

     

    

 

		4.1.3	The
                                            ownership of rented assets or leased moveable assets and the intellectual property belonging
                                            to sub-contractors or Affiliates and the intellectual property of belonging to other third
                                            parties shall be kept by the said sub-contractors, affiliates or third parties.

 

		4.1.4	Over
                                            the duration of the Contract, the Contractor shall be authorized to use and enjoy all moveable
                                            and non-moveable assets acquired for the Oil Operations in accordance with the Contract.
                                            The Contractor shall be authorized to hand over or sell the said assets if they are no longer
                                            necessary for Oil Operations. Profits made from selling these assets shall be allocated as
                                            follows:

 

		●	If
                                            the ownership of the said assets has been transferred to the Government, the product must
                                            be paid to the latter;

 

		●	The
                                            Contractor shall keep these revenues if the assets have not been depreciated; 

 

		●	In
                                            case of partial depreciation, the revenue corresponding to the proportion of the depreciation
                                            shall be paid to the Government. 

 

The disposal or transfer of moveable or non-moveable
assets during the period of validity of the Contract must be authorised in advanced by the Minister.

 

		4.2	Ownership of the Data 

 

The Government shall be the owner of all geological,
geophysical and geochemical information and data related to drilling, engineering, registrations and production and of all other data,
samples, logs, cores, bands, maps, interpretations, reports and any other support or information obtained during the Oil Operations. However,
the Contractor shall be authorized to keep this information, free of charge and use it for Oil Operations subject to obligations related
to its confidential nature.

 

The Government shall give the Contractor access
to all existing technical, operational, accounting and financial information, among others, from the Effective Date of the Contract. It
is understood that the Contractor shall treat this data and information confidentially in accordance with Article 21 of this Contract.

 

		4.3	Ownership of the Hydrocarbons 

 

All Hydrocarbons contained in the Reservoirs of
the sub-soil of the Contract Region or produced in the Contract Region shall be the property of the Government, in accordance with the
Code and the Constitution of the Republic of Benin. The Contract shall not give to the Contractor any ownership rights over the Crude
Oil and/or Gas extracted from the Contract Region, which will continue to be the property of the Government until they are measured at
the Delivery Point. The rights of ownership of the Contractor over the Crude Oil and/or Gas in accordance with the provisions of the Contract
shall be given to it at the appropriate Delivery Point.

 

    Page 12 of 52

     

    

 

ARTICLE 5: SURFACE AREA
RETROCESSIONS

 

		5.1	At the end of each phase of the exploration period and provided that the Contractor has met all the obligations
related to that phase, if the latter decides to continue the Oil Operations in the Contract Region, it shall be bound to retrocede [***]%
of the Region covered by the phase upon each renewal.

 

		5.2	The Regions retroceded by the Contractor
                                            shall be one block and of simple geometric form in order to allow the execution of Oil Operations
                                            by other entities. The Contractor must notify the Minister of the Region(s) that it wishes
                                            to give up in writing within no more than [***] days before the end of the considered
                                            period by including a map showing the geographical location and giving the coordinates of
                                            the connection point of the boundary lines. In the [***] days following the date of
                                            notification, the Minister must let the Contractor know his decision who must abide by it.

 

		5.3	From the expiry date of the Contract, the Contractor is considered to have given up all the Contract Region
to the Government, which retrocedes it to SOBEH.

 

		5.4	[***] after each retrocession, the Contractor must submit a report to the Minister on the surface
areas given back and give him all documents and files concerning them and the installations that are there, with the possibility of making
copies of the said documents and files subject to respecting the clauses of confidentiality.

 

ARTICLE 6: OBLIGATIONS RELATED TO EXPLORATION
WORKS

 

		6.1	Minimum work obligations

 

		6.1.1	The Contractor shall start the Oil Operations from the Effective Date of this Contract. To this effect,
it shall notify to the Minister the nominal composition of the team in charge of conducting and implementing the Contract in Benin as
well as the major terms of its agreement with its partner(s).

 

		6.1.2	During the initial phase of the exploration period of [***] maximum, the Contractor agrees to implement
the following minimum work programme:

 

[***]

 

		6.1.3	During the first extension phase of [***], the Contractor must at least complete the following
works:

 

[***]

 

		6.2	Minimum well depth

 

		6.2.1.	Each of the aforesaid Exploration Wells must be drilled to the minimum depth or a
lesser depth if the Minister so authorises in accordance with this Article or if drilling is justifiably interrupted for one of the following
reasons:

 

		(a)	the economic base is reached at a lesser depth than the stipulated minimum contractual depth;

 

		(b)	it would be clearly dangerous to continue drilling due to abnormal pressure in the formation;

 

		(c)	hard rocky formations are reached which render it impossible to continue drilling with the appropriate
equipment; or

 

		(d)	formations containing Hydrocarbons are discovered, which require the installation of protective casings,
excluding the possibility of reaching the minimum contractual depth.

 

    Page 13 of 52

     

    

 

		6.2.2.	For the purposes of Article 6.2.1, the term economic base refers to any layer in which and
below which the geological structure or the physical characteristics of the rock sequences does not have the properties necessary for
the accumulation of Hydrocarbons in commercial quantities, which also corresponds to the maximum depth at which any accumulation of this
type may be reasonably expected to be found.

 

		6.2	Cessation of Drilling 

 

Except in situations in which a prudent
operator would immediately cease all drilling operations, the Contractor must obtain approval from the Minister in charge of Hydrocarbons
before beginning, interrupting or ceasing all drilling. The Minister shall respond within seventy-two hours of this request. This authorisation
may not be refused or delayed without justification, provided that the Minister has been provided the necessary information to allow him
to make a decision with full knowledge of the case.

 

		6.3	Replacement Wells

 

If a mandatory Exploration well is
abandoned due to insurmountable technical problems such as those described in Articles 6.2.1(b), (c) and (d) and if at the time of this
abandonment, the Exploration Costs associated with this Well are greater than or equal to the amount of the mandatory exploration well,
the Contractor shall be considered to have fulfilled its minimum work obligations in this case with regard to this Well for the period
concerned.

 

If a mandatory Exploration Well is
abandoned due to insurmountable technical problems and if at the time of this abandonment, the Exploration Costs corresponding to this
Well are less than the amount of the mandatory exploration well, the Contractor shall then have the option to either:

 

		(a)	drill a replacement Exploration Well in the same location or another location to be established by mutual
agreement with the Minister in charge of Hydrocarbons;

 

		(b)	or to pay the Minister an amount equal to the difference between the amount allocated for the drilling
of the exploration well and the amount of Exploration Costs actually incurred with regard to this Exploration Well.

 

ARTICLE 7: TECHNICAL AND BUDGETARY MANAGEMENT
COMMITTEE

 

		7.1	Within [***] days of the date of signing of the Contract, the Parties shall establish a joint committee
for technical and budgetary management comprised of representatives of the Minister in charge of Hydrocarbons and the contracting Parties.
The number of representatives of each party is established by mutual agreement. A representative of the Minister will chair the Management
Committee. A representative of the oil company will act as its secretary. It will include a sub-committee:

 

The technical management sub-committee
shall meet twice per year: [***].

 

The duties of this sub-committee shall
include the assessment of the technical works to be performed by the contracting Parties. The tasks of this sub-committee shall be in
preparation for those of the budget committee. The various topics addressed by the technical management sub-committee shall include the
important events recorded since the last session, the production and behaviour of the fields, activities performed and the programme of
works.

 

		7.2	Once per year, the contracting Parties shall meet to make a technical presentation of the Operations,
examine the budget and validate the previous budget.

 

    Page 14 of 52

     

    

 

ARTICLE 8: ANNUAL
WORK PROGRAMME, BUDGETS AND REPORTS

 

		8.1	Presentation of the Annual Work Programme and Budgets

 

Within [***]
days following the Effective Date of the Contract, the Contractor must prepare the first Work Programme and its budget. If the Effective
Date of the Contract falls on the [***] day of the month of [***] or before, the first Programme and its budget shall be
prepared for the rest of the corresponding calendar year. If the Effective Date of the Contract falls after the first of [***],
this first Programme and its budget shall be prepared for the ongoing calendar year and for the next calendar year. The Contractor must
submit the Work Programme and its budget for the Minister’s approval.

 

Subject to the provisions
above, at the latest on the [***] of [***] of each calendar year, the Contractor must prepare a Work Programme and a budget
for the next calendar year and must submit them for the Minister’s approval.

 

The Work Programme
submitted for the Calendar Year during which a Commercial Discovery is made must be modified by the Contractor within [***] days
following the date of approval of the General Development Programme in order to comply with the latter.

 

		8.2	Form and approval of the Annual Work Programme and Budgets

 

This Annual Work
Programme and corresponding Budget shall present the various Exploration, Development and Production Operations separately, as applicable.

 

Each Annual Work
Programme shall at least include the work to be performed during the period in question to execute the minimum work programme, the Development
Programme or the Production Programme.

 

The Annual Work Programme
and the corresponding Budgets are submitted for the approval of the Minister in charge of Hydrocarbons. This approval must be provided
within [***].

 

The sections of the
Annual Work Programme and Budgets regarding which the Minister in charge of Hydrocarbons does not request any amendment or modification
shall be considered approved and must be executed by the Contractor within the indicated period, provided that they can be performed separately.

 

As for the sections
of the Annual Work Programme and Budgets regarding which the Minister in charge of Hydrocarbons proposes an amendment or modification,
the approval date of the Annual Work Programme or corresponding Annual Budget shall be the date on which the Minister in charge of Hydrocarbons
and the Contractor reach the aforesaid reciprocal agreement.

 

    Page 15 of 52

     

    

 

If the Minister and
the Contractor do not reach an agreement regarding the amendments and modifications proposed by the Minister before the end of the Calendar
Year during which the Annual Work Plan and corresponding Annual Budget were submitted, the Contractor shall continue its operations in
accordance with the last Annual Work Plan and corresponding Budget approved by the Minister in charge of Hydrocarbons until a reciprocal
agreement is reached or a decision is made by an expert, if either Party decides to submit the dispute for an expert opinion in accordance
with the provisions of Article 24.2.

 

The exploration and
exploitation periods or as applicable the additional production period shall not include any time spent requesting an expert opinion,
including the time-frame associated with this procedure.

 

		8.3.	Execution of the Oil Operations

 

		8.3.1	For the duration of the Contract, the Contractor shall directly perform the exploration and exploitation
activities in the Contract Region. To better carry out these activities, it shall be authorized to use specialized Sub-contractors. However,
the Contractor shall keep the monitoring and the general accountability of the operations or activities undertaken.

 

		8.3.2	The Contractor must speedily carry out the Oil Operations in accordance with Best Practices, while taking
into account the local conditions as well as other special conditions in the Contract Region.

 

		8.3.1	The Contractor must inform the Minister in advance of all significant and planned Oil Operations such
as geological or geophysical research and the start up of well drilling activities. The Contractor must also inform the Minister in writing
about any drilling suspension or abandonment of wells within twenty four (24) hours.

 

		8.4	Budget Overruns

 

		8.4.1	The Minister in charge of Hydrocarbons and the Contractor acknowledge that the technical results obtained
as work progresses or certain unforeseen situational changes which may occur may justify modifications to an approved Annual Work Programme
and corresponding Budget. As necessary, the Contractor shall inform the Minister in charge of Hydrocarbons of the planned modifications
as soon as possible. These modifications shall be submitted for the review and approval of the Minister within [***] days following
receipt of such notification. If the Minister in charge of Hydrocarbons neither approves or rejects these planned modifications within
this [***]-day period, this failure to act shall be understood as approval of the aforesaid modifications.

 

		8.4.3	If the Contractor reasonably believes that the Annual Budget has been exceeded, the Contractor must notify
the Minister in charge of Hydrocarbons in a timely manner and provide the latter with a detailed and justified description of such overages.

 

		8.4.4	The limits established in Article 8.4 shall not prejudice the right of the Contractor to incur expenses
in case of emergency requiring immediate intervention pursuant to Article 8.5.

 

		8.4.5	Except as indicated otherwise in Article 8.5, if the Contractor incurs an expense for which the programme
and budget have not been approved in the context of an Annual Work Programme and a corresponding Annual Budget or any amendment thereto
approved by the Minister in charge of Hydrocarbons, this expense shall not be recoverable by the Contractor as Oil Costs.

 

		8.5.	Emergency or Accident

 

		8.5.1	In case of emergency or accident requiring immediate intervention, the Contractor shall take all prudent
and necessary measures in accordance with best practices in the oil industry to protect its interests and those of the Government as well
as the property, life and health of other Persons, the environment and the safety of the Oil Operations. The Contractor shall inform the
Minister in charge of Hydrocarbons of this emergency or this accident as quickly as possible.

 

		8.5.2.1	All costs incurred by the Contractor as a result of emergencies shall be recoverable as Oil Costs in accordance
with this Contract. Notwithstanding the foregoing, none of the costs incurred by the Contractor which result from the gross negligence
or wilful misconduct of the Contractor, its subcontractors or any Person acting on their behalf shall not be recovery as Oil Costs.

 

    Page 16 of 52

     

    

 

		8.6	Reports 

 

		8.6.1	In the context of this Contract, the Contractor shall prepare and update all the registers related to
the Oil Operations in the Contract Region.

 

		8.6.2	Subject to its general rights and obligations, the Contractor shall:

 

		a.	Record in original version or reproducible of good quality, or if any, on magnetic recording medium and/or
electronic medium, any geological, geophysical, geochemical or well information and any data related to the Contract Region and acquired
by the Contractor.

 

		b.	Keep all files containing the details related to the following aspects:

 

		i.	Drilling: the work per se, deepening, production tests, closing up or abandonment of wells;

 

		ii.	The geological formations the wells went through;

 

		iii.	Well casings and any modification of the said casings;

 

		iv.	All Hydrocarbons, water and other minerals of economic interest or dangerous substances encountered;

 

		v.	The zones in which geological or geophysical activities were undertaken.

 

		8.6.3	The well logs, maps, magnetic or electronic bands, cores and samples and other geological, geophysical
and geochemical information obtained by the Contractor during the Oil Operations shall be the property of the Government and shall be
turned over to the Government as soon as they are obtained or prepared, although the Contractor shall be entitled to retain copies of
the aforesaid documents and files, subject to compliance with the confidentiality clauses.

 

		8.6.4	In performing its contractual obligations, unless otherwise agreed upon by the Parties, the Contractor
may:

 

		1.	Keep copies of the material that comprise the Data over the duration of the Contract;

 

		2.	Keep for the necessary duration of the Oil Operations, with the approval of the Government, the original
Data, provided that the said Data is reproducible and that copies have been submitted to the Minister in charge of Hydrocarbons;

 

		3.	Export for laboratory treatment, examinations or analyses and for [***], samples and any materials
comprising the oil data, on condition that samples of equivalent size and quality or, when such Data may be reproduced, copies of equivalent
quality are submitted to the Minister.

 

		8.6.5	The Contractor should regularly inform the Minister about the major developments in the context of the
Oil Operations and give him the available information (data, reports, evaluations and interpretations) related to the Oil Operations.

 

Moreover, the Contractor
must:

 

		a)	Establish daily drilling and exploitation reports as part of its activities;

 

    Page 17 of 52

     

    

 

		b)	Prepare and submit to the Minister a monthly production report within a deadline of [***] days
following the end of the month concerned and that shall include a description of the activities covered during the said month;

 

		c)	Prepare and submit to the Minister a quarterly report during the exploration and exploitation period within
a deadline of [***] days following the end of each Calendar Quarter, and that shall include a description of the activities covered
during the said quarter along with the plans and maps showing the sites where the described works have been undertaken.
	 	 	 

		d)	Prepare and submit to the Minister an annual report within [***] months of the end of each Calendar
Year, which integrates and develops the revised quarterly reports if necessary for the Calendar Year in question.
	 	 	 

		e)	All monthly, quarterly and annual exploration and exploitation reports produced by the Contractor shall
be written in French and addressed to the Minister in charge of Hydrocarbons.
	 	 	 

		f)	Failure to product two quarterly activity reports shall be considered a breach of the Contract.

 

		g)	Failure to produce quarterly activity reports for [***] shall be considered as serious misconduct
stemming from deliberate negligence.

 

		h)	At the end of each year, the Contractor shall have [***] days to submit its annual activities and
budget report. If at the end of this period, no report has been received by the Government, notification shall be sent to the Contractor,
who shall have [***] days to make the necessary corrections. After this period, if no positive reaction on the part of the Contractor
is noted, the Contract shall be considered terminated and notice shall be given to the Contractor.

 

ARTICLE 9: DECLARATION OF COMMERCIAL DISCOVERY
AND DESIGNATION OF

THE DEVELOPMENT ZONE

 

		9.1	As soon as a Hydrocarbon Discovery is made in the Contract Region, the Contractor must immediately inform
the Minister and the provisions of this Article shall be applied. After the Hydrocarbon Discovery and within the [***] days following
the said Discovery, the Contractor shall submit to the Minister an initial Discovery report.

 

At the latest in the [***] months
following the Discovery, the Contractor shall submit to the Minister a detailed report on the Discovery, indicating, if necessary, whether
or not this discovery has been evaluated. If the Contractor deems that the Discovery is worth evaluating, the report must include an evaluation
programme and a schedule of activities in order to implement an adequate and effective evaluation. The Contractor must properly complete
the evaluation programme submitted to the Minister during the exploration period in accordance with the evaluation programme and the approved
schedule of activities. Notwithstanding all of the provisions of Article 9, provided that the Contractor has fulfilled its obligation
to drill exploration wells as indicated in Article 6, it shall be entitled to receive a Development Zone which includes the predefined
Development Zone.

 

		9.2	At the latest [***] days following the end of the evaluation programme, the Contractor must submit
for the assessment of the Minister a detailed evaluation report justifying the commercial viability of the proposed Development Zone.
This report must include:

 

		-	The description of the Development Zone, namely the structural configuration, the physical properties
and the span of the reservoir rocks, the surface areas, the layer and the depth of the productive zones;
	 	 	 

		-	An estimation of the initial oil reserves and gas that can be recovered, the characteristics of the recuperation,
the expected yield of production per reservoir;

 

		-	An estimate of the number of necessary wells for an efficient drainage of the reserves, the characteristics
of the fluids present, in the case of the Crude Oil its density, the sulphur, sediment and water content, as well as the yield characteristics
of the product;
	 	 	 

		-	The expected economic projections and cash flow.

 

    Page 18 of 52

     

    

 

		9.3	The Contractor should declare in the report if it deems that the Discovery is commercially viable, and
in this case it shall have the right to develop it and produce the Hydrocarbons in accordance with the provisions of this Contract. However,
the Minister shall support as much as possible the establishment of non-existent facilities for the production and testing of all early
production wells. This Government support shall include, if possible, assistance to obtain and access existing installations or obtain
the necessary onshore land in the immediate vicinity of the pipeline.

 

		9.4	In the [***] days following the presentation of the report in which the Contractor shall communicate
to the Minister its opinion that its Discovery is commercially viable, the latter shall notify in writing the Contractor of his approval
and the date of approval of the Minister shall be the “Commercial Discovery Date”. If at the end of this deadline of [***]
days, the Minister does not notify in writing the approval mentioned, the Commercial Discovery Date shall be the date following the deadline
of the [***] days mentioned above. The Minister shall then grant the Contractor the exploitation permit if it applies for it.

 

		9.5	If the Contractor deems that the Discovery is not commercially viable, it should communicate to the Minister
the reasons for its decision. If the Minister questions the basis of the technical or economic analysis of the Contractor on the non commercial
character of the Discovery, or if for any other reason he deems that the Discovery could be developed economically by the Contractor in
accordance with the clauses and conditions of the Contract, then the Minister should, in the [***] days if he wishes, submit the
question of the commercial viability to an expert in compliance with the Contract. If the Expert confirms that the Discovery is a commercial
one, the Contractor may, in the [***] days following the date of receipt of the decision of the Expert, declare that the Discovery
is a Commercial Discovery in accordance with the provisions of the Contract and the date of declaration shall become the Commercial Discovery
Date. In this case, the Minister shall have the right to develop the Discovery Zone and produce Hydrocarbons in accordance with the provisions
related to exclusive-risk operations. The Contract shall remain valid for the remaining part of the Contract Region.

 

		9.6	In the [***] days following the Commercial Discovery Date, the Contractor should submit to the
Minister a General Development Programme indicating:

 

[***]

 

		9.7	The General Development Programme proposed by the Contractor shall be prepared in compliance with engineering
principles, economy principles and Best Practices. It must also be designed with a view to ensuring the optimal recuperation of Hydrocarbons
in the Development Zone and to prevent wasting them.

 

		9.8	The General Development Programme of the Contractor may be revised by the Minister who shall give his
approval if he deems that it has been prepared in compliance with the provisions above. If the Minister deems that the General Development
Programme presented by the Contractor was not prepared in accordance with those provisions, he shall propose amendments and the Contractor
may, in response, modify it. If within the [***] days following the date of presentation of the Programme, the Minister and the
Contractor do not reach an agreement with regard to the said Programme, the matters on which they disagree must be submitted to an expert
who shall take a decision. In case of disagreement and resorting to an expert, the exploitation period of [***] shall not include
the time used to call for an expert (including the time for the appeal procedure).

 

		9.9	During the Development and Production Operations, the Contractor may propose additions or revisions to
the General Development Programme. It must then submit them to the Minister for consideration and approval, in accordance with the procedures
contained in clause 9.8 if within [***] days of the date of submission of the additions or revisions to the General Development
Programme, the Minister and the Contractor do not reach an agreement with regard to the aforesaid additions and revisions, the matter
or matters on which they disagree must be submitted to an expert, pursuant to the procedure specified in clause 9.8, and the [***]
exploitation period shall not take into account the period of this procedure.

 

		9.10	If the Contractor wishes to finance the Development Operations with funds coming from banks or other funding
sources, the Minister shall support the Contractor by supplying all information that the banks or funding sources may reasonably require,
provided that the Minister does not assume any additional obligations of any kind to that effect, financial or otherwise.

 

    Page 19 of 52

     

    

 

ARTICLE 10: EXCLUSIVE RISKY OPERATIONS

 

		10.1	In case the Minister, during the exploitation period, wishes to test additional reservoirs of a well at
the agreed level, or deepen the well and test the reservoirs that are deeper than that final level, the Government shall have the right,
subject to the stipulations provided in Clause 10.4, to ask by notification to the Contractor to test some additional reservoirs or to
continue drilling and to test some new reservoirs, at the exclusive risks of the Government. The Government shall notify the Contractor
as soon as possible before or during drilling, but in no case after the Contractor has started the completion or abandonment activities
of the well.

 

		10.2	If during the exploration period, the Parties do not agree on the Government recommendation to drill additional
exploitation wells, the Minister shall have the right, after the initial period, to ask the Contractor to drill in the Contract Region
at the exclusive risks and cost of the Government one (1) exploitation well provided that this Operation does not delay, hamper or disturb
the exploitation and evaluation activities of the Contractor. In that case, the Minister shall have a maximum deadline of [***]
months to submit to the Contractor a report on establishing the said well specifying the drilling details as well as the financial plan
of the operation he is pre-financing.

 

		10.3	If the operations described in clauses 9.3, 10.1 or 10.2 lead to a Discovery or a Commercial Discovery,
the Government shall have the right, at its exclusive expenses, risks and benefits, to appreciate the said Discovery and/or to develop
and produce oil from the reservoir corresponding to that Discovery. The Contractor shall notify in writing to the Minister, before starting
the commercial production of the oil reservoir discovered in the context of the said exclusive-risk operations, if it wishes to support
future operations for the development and/or production of the said oil reservoir, in compliance with the terms of this Contract. In that
case, the Contractor shall pay in cash or in kind to the Government in addition to [***] of the exploitation costs and, if any,
capital exploitation costs incurred by the Government in the context of the exclusive-risk operations and corresponding to the discovered
oil reservoir, an additional amount equalling [***] of the said exploitation and capital costs.

 

		10.4	The conditions to undertake exclusive-risk operations shall be the following:

 

		(a)	The production tests of additional layers or the penetration and the production tests of deeper layers
or drilling additional exploration wells, must be technically feasible;

 

		(b)	Deepening a well as part of exclusive-risk operations may not take place when the well has already gone
through producing reservoirs;

 

		(c)	No exclusive-risk exploration well shall be drilled in an exploitation zone, nor on the site of a Commercial
Discovery;

 

		(d)	The Minister may hire a third party to undertake the exclusive-risk operations referred to above. However,
the Minister shall not recruit a third party to these ends without having previously offered to the Contractor the right of pre-emption
for the execution in its name the said exclusive-risk operations in conditions similar to those which should be acceptable to that third
party. In case the Contractor does not accept to undertake those operations notified by the Minister, the latter shall have the liberty
to hire the third party provided that this third party respects the conditionality clauses related to the reports, data and information
kept or prepared by the Contractor and received by that third party as part of this article or Article 9 and in accordance with Article
21.

 

    Page 20 of 52

     

    

 

ARTICLE 11: GOVERNMENT PARTICIPATION

 

		11.1	The Government has the option to acquire a maximum interest of [***] in the rights and obligations
of the Contractor regarding a commercial discovery.

 

		11.2	The Government must exercise its participation option by written notification to the Contractor within
the [***] days following the date of commercial declaration by the Contractor. For lack of submitting a written notification during
this deadline of [***] days, the option shall be considered as denied.

 

		11.3	If the Government exercises its option of participation in accordance with Article 11.1, the Contractor
shall give up to the Government the share claimed. To this effect, the Contractor shall propose a draft convention to the Minister in
charge of Hydrocarbons for consideration. This convention shall specify the terms of the Government’s participation.

 

		11.4	The Government participation shall be effective from the date of receipt by the Contractor of the written
notification set out in article 11.2.

 

		11.5	If the Government exercises its participation option, the Minister shall enter into an operational agreement
with the Contractor in accordance with the standards of International Oil Operations, which shall govern the rights and obligations of
the Parties.

 

ARTICLE 12: ROYALTIES, COST RECOVERY &
PRODUCTION SHARING

 

ROYALTIES

 

		12.1	The Contractor shall pay royalties to the Government at a rate of [***] of the total
                                                                    available production excluding losses regarding the Oil Operations for oil starting with the first barrels produced. The remaining
                                                                    quantity of the crude oil shall be referred to as ’‘Available Crude’’. This rate is negotiable for the
                                                                    condensate In case of discovery of gas, both Parties shall
come together to define the royalties as well as the sharing proportion for the gas.

 

RECOVERY OF OIL COSTS

 

		12.2	After deducting the Royalties, the exploiting Contractor shall be entitled to a maximum of [***]
of the remaining Total Available Production of Crude Oil for the oil every Calendar Year as the recovery of Oil Costs (Oil Costs Recovery
Share).

 

		12.3	Subject to the provisions related to participation, the Contractor shall assume and pay all Oil Costs
incurred in executing the Oil Operations and shall recover the said costs according to the modalities defined in the Accounting Appendix
D.

 

		12.4	The costs directly attributable to the development and production of non-associated Gas shall be the subject
matter of a specific agreement in accordance with the provisions of this Contract.

 

The costs shall be recovered
as follows:

 

[***]

 

		12.5	When the recoverable Oil Costs of a given Year exceed the value of the Crude Cost Recovery (“Cost–Oil”)
available that year, the recovery of the surplus shall be carried forward to the following Years.

 

    Page 21 of 52

     

    

 

SHARING OF OIL PROFITS

 

		12.6	Every Year, the remaining Available Crude after deducting the recoverable Oil Costs called hereinafter
“Oil Profit’’ or “Crude-Profit’’ shall be shared between the Government and the Contractor
according to the percentages below:

 

		a)	For oil 

 

[***]

 

After recovery of the oil costs, the Parties shall
come together to define a new sharing formula

 

		b)	For the condensate (to be negotiated in case of discovery)

 

		12.7	The Parties shall agree that if the Profitable Limit of a deposit is going to be reached, (that is if
the Oil Costs incurred by the Contractor exceed the oil monetary flow received from selling the production in such a way that it leads
to stopping prematurely the production of this deposit), they shall consult each other and examine the amendments to be made to the provisions
of this Contract, namely cost recovery and production-sharing in order to extend the life of the deposit.

 

ARTICLE 13: MEETING THE NATIONAL CONSUMPTION
NEEDS

 

		13.1	Following the start-up of the Production Operations, the Government shall have the right to purchase and
the Contractor the obligation to sell, in a determined Delivery Point, an equivalent volume of Hydrocarbons in the form of Crude or refined
products or equivalent gas as agreed upon between the Parties, equivalent to a maximum of [***] of the share of the Oil Profit
accruing to the Contractor in order to meet Benin’s internal demand. The transfer of the Oil shall be done in this context in accordance
with the provisions of clause 15.5.

 

		13.2	If in a deadline that shall not exceed [***] days from the Hydrocarbons delivery date, the Government
does not pay the bill, the Contractor may request to be paid by deduction from the Oil Profit of the Government.

 

		13.3	With regard to the Crude Oil, the obligation for the Contractor to sell shall be based on the principle
according to which all Crude Oil producers or exporters in Benin, including the Government, shall bring at any moment and proportionally
a portion of their production to meet the national consumption needs. To take advantage of his acquisition rights, the Minister should
give a written notice of [***] months to the Contractor, indicating the volume of the Crude Oil of the Oil Profit of the Contractor
that shall be acquired during the [***] calendar months following the above-mentioned notice. The monthly variation of that volume
shall not exceed a margin of more or less than [***].

 

		13.4	If in case of Force Majeure, other contractors or the Government are not able to contribute proportionally
to meeting the national needs, and if as a consequence the volume of participation of the Contractor and other contractors to the national
market demand must be increased, the Contractor shall sell the required additional quantities in accordance with the above-mentioned clauses
and conditions until the case of force majeure is resolved and until the contribution meant to cover proportionally the national market
demand is re-established. This additional obligation shall not include the volumes of production that are already the subject-matter of
an exportation contract, the loading period of which is fixed within the [***] working days following the date on which the Contractor
receives the notification of the Minister related to the case of force majeure.

 

		13.5	With regard to the Natural Gas, the obligation of the Contractor to sell must be established by taking
into account the criteria used to meet the national market demand stipulated above and by taking into account a Natural Gas price determined
in accordance with this Contract.

 

		13.6	All payments made as part of the Contractor’s Hydrocarbons sales to the Government in accordance with
the provisions of this Article must be in dollars and through bank transfer in favour of the bank account designated by the Contractor
outside Benin in a deadline of [***] days from the date of delivery to the Delivery Point of the Hydrocarbons purchased by the
Government.

 

    Page 22 of 52

     

    

 

ARTICLE 14: APPLICABLE
TAX SYSTEM

 

		14.1	Over the life of the Contract and in accordance with the legislation in force in the Republic of Benin,
the Contractor shall be subject to the tax system commonly applied to enterprises in general and to oil activities in particular.

 

		14.2	The Contractor shall be bound to pay in accordance with the Benin Tax Code all of the taxes and dues to
which he shall be subject namely the Income Tax, which shall not exceed [***] of the taxable profit.

 

		14.3	It shall be understood that pursuant to Article 14.2, the Minister shall ask to deduct from the Oil Profit
of the Government under article 12.6, an amount corresponding to the Income Tax and to the Export Tax provided for in the Oil Code. He
shall request that to this effect the said tax be paid on behalf of the Contractor and issue to him the related receipts. The same shall
apply to the Export Tax. In that case, the portion of the Oil Profit belonging to the Contractor as set out in article 12.6 shall be considered
net of tax and shall not be subject to any tax whatsoever. In other words, the Contractor shall be free of all tax obligations that are,
by definition, included in the Oil Profit received by the Government and in the Tax on Oil Production also received by the Government.

 

The Minister shall send the receipts
by official correspondence justifying the payment of the taxes, duties and dues to which the Contractor is subject.

 

		14.4	The Contractor, its sub-contractors and service providers shall be exempt from the charges and customs
duties, including Road Tax, on the capital equipment, products, exploitation and exploration materials and drilling machines and equipment
(including the Rig or the drillship and all similar equipment), the platforms and production installations and spare parts imported in
the context of the Oil Operations.

 

However, the goods, products, equipment,
exploration and exploitation materials and all drilling machines and equipments (including the Rig or the drillship and all similar equipment),
the platforms and production installations and spare parts likely to be re-exported at the end of their use shall be subject to the exceptional
temporary admission system in accordance with current the provisions governing this matter.

 

    Page 23 of 52

     

    

 

		14.5	The Contractor, its subcontractors and its service providers are also exempt from taxes, duties and indirect
dues, including the Value-Added Tax (VAT) with regard to the oil exploration and exploitation activities and all other related activities.

 

The Contractor, its subcontractors
and its non-resident service providers are also exempt, with regard to the oil exploration and exploitation activities and all other related
activities, from:

 

[***]

 

		14.6	Expatriate personnel employed by the Contractor, its subcontractors and service providers benefit from:

 

[***]

 

One vehicle per household may also
be imported in temporary admission.

 

		14.7	The Government shall be ready to consider any amendment to the tax clauses that the Contractor may ask
at any time, provided that:

 

(a) Such modifications do not
have a negative incidence on the overall economic gains and other benefits that the Government shall draw from the Operations; and

 

(b) The only reason for proposing
such modifications shall be to allow any person making the Contractor or to any other Affiliated Company to obtain in another country
a tax credit related to the paid taxes in the Republic of Benin.

 

		14.8	The Contractor shall be bound to pay to the Government the revenues as part of duties and taxes provided
in this Contract through a national structure. The designation of the national structure in question shall take place within the [***]
days following the Effective Date.

 

		14.9	The Government shall issue within the [***] days following the payment date a receipt in the name
of the Contractor relating to the said payment.

 

    Page 24 of 52

     

    

 

ARTICLE 15: MEASUREMENT, PROVISION, EVALUATION
AND SALE OF HYDROCARBONS

 

		15.1	The Contractor must measure all Crude Oil and Natural Gas produced in the Contract Region in accordance
with Best Practices. The Contractor must keep complete and precise registers of all measurements of the Hydrocarbons produced in the Contract
Region after extracting the water and its foreign bodies, then all tradable Hydrocarbons; that shall allow calculating the difference
to determine the quantities used for the Operations and the unavoidable losses. The representatives of the Minister must have access to
these registers and measures.

 

		15.2	The Minister shall have the right to test all measures, measuring equipment, the graphs and any other
measuring or testing and information material.

 

		15.3	If, following an examination or a test, it appears that the measuring equipment is not functioning, that
they are damaged or incorrectly set, the Contractor must fix them or do the necessary adjustments immediately and meet the costs.

 

		15.4	If within a reasonable deadline that shall not exceed [***] days the Contractor does not assume
that obligation, the Minister may take the appropriate measures to make the said equipment operational or adjusted and may bill the Contractor
for the cost of that operation at the interest rate of the Contract plus [***]. If, according to the Minister, the error caused
by the bad adjustment or any other fault of measuring equipment seems to be the reason of big difference in measuring the production,
the Parties shall consult each other to take the appropriate measures. In case of disagreement, the question may be submitted to an expert
who shall determine if it is appropriate to do a retroactive adjustment of the production figures. If the Contractor considers that it
is necessary to replace some measuring devices or instruments, it must inform the Minister for approval and give to the representatives
of the Minister the chance to be present during the operation and to take part in it.

 

		15.5	In the context of this Contract, the price of the Crude Oil for each quarter shall be the weighted average
FOB prices received by the Contractor for selling to third parties different from the Parties during the corresponding quarter.

 

    Page 25 of 52

     

    

 

		15.6	If in a given quarter the Contractor does not sell at least [***] of the total Crude Oil production
of the Contract Region to third parties different from the Parties, the price of the Crude Oil for that quarter shall be the weighted
average of FOB prices fixed in comparison with the price of the Crude Oil on the international market in view of the quality, density
and transport differentials.

 

		15.7	In case of lack of an agreement between the parties within the [***] days following the end of
the Quarter involved, awaiting the opinion of an expert, the agreed selling price for the preceding Quarter shall apply provisionally
subject to the retroactive adjustments that could be necessary after the expertise. Resorting to an expert provided in this article shall
apply in a deadline that shall not exceed [***] days after the end of the Quarter involved.

 

		15.8	In the context of this Contract, the price of the Natural Gas sold in the Benin national market shall
be the price received by the Contractor for selling to third parties. Taking into account the fact that in Benin the gas market is not
highly developed, the Government should assist the Contractor if possible to find possible gas consumers and to negotiate reasonable selling
prices. The price of Natural Gas applicable to the gas sold to a Benin public enterprise or to an organization which social capital and
voting right is the direct or indirect property of the Government, shall be agreed upon by the Parties, since this price should reflect
the commercial value of the source of energy that the sold gas is supposed to replace, in accordance with the modern technology generally
used and by taking into account the cost of the produced gas. The price applicable to Natural Gas exportation shall be the price received
by the Contractor in the context of selling to third parties, subject to the same conditions governing normally selling Crude Oil.

 

		15.9	The Contractor shall have the right to possess, load, transport and export freely the Hydrocarbons that
belong to it by virtue of the Contract. The Minister may ask the Contractor to sell all or part of the oil belonging to the Government
in accordance with article 12 and in the market conditions set out in Article 15.5, provided that the Parties have agreed on the provisions
relating to commercialization.

 

		15.10	At the latest [***] days before the Commercial Production starts in each Development Zone, and
afterwards at the beginning of each Quarter, the Contractor must prepare and submit to the Minister a prevision indicating the total quantity
of Hydrocarbons that, according to it, will be produced during the next [***] Quarters in the corresponding Development Zone, from
a production rate determined by mutual agreement to optimise the recuperation of the Hydrocarbons in the Development Zone in accordance
with Best Practices. Each Quarter, the Contractor must make reasonable efforts to produce the quantity of Hydrocarbons it has planned
to produce. The Contractor shall be authorized to use, free of charge, the quantities of Hydrocarbons produced in the Contract Region,
at the natural state or treated, necessary to undertake the Oil Operations (including Operations to load the Gas) in accordance with Best
Practices. Regardless of the quantity of Hydrocarbons used for this purpose, they shall not be considered part of the Commercial Production.

 

    Page 26 of 52

     

    

 

ARTICLE 16: NATURAL GAS

 

		16.1	The Benin national market enjoys a preferential acquisition right of the Natural Gas produced in any Development
Zone and not used for Oil Operations in accordance with this Article, provided that the commercial proposals offered are not less favourable
than those in which the gas in question may be exported. Natural Gas not sold on the national market may be exported.

 

		16.2	In case of a discovery of a commercial gas accumulation, a gas purchase contract (a “Take or Pay”
Contract) should be discussed between the Government and the Contractor in the shortest deadline. In case the direct generation of energy
seems to be more profitable for both Parties, they shall meet to fix the conditions.

 

Associated Natural Gas

 

		16.3	In case of a Crude Oil Discovery that the Contractor deems commercially viable in accordance with this
Contract and that the Discovery contains Associated Gas, the Contractor should indicate in its evaluation report if it considers that
the estimated production of Associated Gas will exceed the quantities of Associated Gas required for the additional Production Operations
and if the declared surplus Associated Gas can be produced in commercial quantities. If the Contractor declares that this Associated Gas
does exist and can be produced in commercial quantities, it shall indicate in the General Development Programme prepared for the Hydrocarbon
Discovery, the details related to the collection, treatment, compression and transportation installations required to exploit the surplus
Associated Gas for commercialization as well as the related costs.

 

		16.4	Within [***] days following the date of presentation of the General Development Programme, the
Minister may notify to the Contractor that either he or any other Benin public enterprise designated by him would like to have the surplus
Associated Gas on the national market.

 

		16.5	If the Contractor decides to participate in accordance with the above-mentioned provisions:

 

		(a)	it shall build collection, treatment, compression, transport and storage facilities required for the production
and delivery to the Delivery Point of the surplus Associated Gas in accordance with the specifications of the General Development Programme;

 

		(b)	The price of the Associated Natural Gas shall be the price of the Natural Gas determined in accordance
with this Contract.

 

		16.6	If the Contractor decides not to participate, it must deliver to the Minister, or to the Benin public
enterprise designated to that effect by the Minister, in a delivery point designated as an “exit port”, and at its own expense,
which shall be considered as recoverable costs, all produced surplus quantities of Associated Gas produced.

 

    Page 27 of 52

     

    

 

		16.7	Subject to the provisions related to environmental protection, the Contractor may burn all unused surplus
Associated Gas.

 

Non-Associated Gas

 

		16.8	In case of a Discovery of Non-Associated Gas in the Contract Region, the Contractor must present a report
in accordance with the prescriptions of this Contract. If the Contractor considers that the Discovery is worth evaluating, it must evaluate,
with an estimation of the reserves, the production potential, as well as the economic viability. In that report, the Contractor should
also declare if the Discovery is commercially viable. If the Contractor considers that the Discovery of the Non-Associated Gas is not
worth evaluating, the provisions related to the Crude Oil shall be applied mutatis mutandis.

 

		16.9	If the Contractor considers that the Discovery can be commercially viable, the Minister shall assist it
in evaluating the demand for gas on the national market as well as in the transformation and commercialisation activities required to
distribute it to end-users of the said market. At the same time, the Contractor shall be free to assess the viability of the exportation
of the Gas. Within the Calendar Year that follows the date of presentation of the detailed evaluation report of the Contractor, the parties
should meet to decide if the outlets and the other factors justify its development and production for the national market and/or if it
is considered that this market is not sufficiently big and that the Gas should be exported.

 

		16.10	If the Contractor considers that the development of the Non-Associated Gas Discovery is justified, it
must present to the Minister a General Development Programme of the said Discovery and the provisions related to the commercial discovery
and those to the Government participation shall be applicable to the development and production of the said Gas as in the case of Crude
Oil. If the Contractor considers that the Discovery of Non-Associated Gas is not justified, then the provisions related to Crude Oil shall
be applied mutatis mutandis to the development and production of the said Gas.

 

		16.11	If it is determined that the Discovery of the Non-Associated Gas cannot be used on the national market
while the Contractor considers that the Discovery of the Non-Associated Gas could be commercially viable for exportation, the Contractor
shall have all the liberty to develop the Gas Deposit provided it presents to the Minister a General Development Programme. If the Contractor
starts the Development Operations for exportation, the Minister shall take all necessary provisions to ease the construction of the appropriate
facilities. Provisions related to the Commercial Discovery and to the Government participation shall be applicable mutatis mutandis to
the development and production of the said Non-Associated Gas as in the case of Crude Oil. Once the Contractor has started the Development
Operations for exportation, the right given to the Contractor to export by virtue of this Article shall remain in force during the whole
period.

 

		16.12	In the context of this Contract, the price of the Non-Associated Gas produced by a Gas Deposit meant to
be used in Benin shall correspond to the price of the Natural Gas determined in accordance with the provisions of this Contract.

 

		16.13	In accordance with security norms and environmental protection, the Contractor shall have the right, after
approval by the Minister, to build gas separation facilities in order to produce liquid gas and condensate.

 

    Page 28 of 52

     

    

 

ARTICLE 17: DAMAGES, ABANDONMENT, ENVIRONMENTAL
PROTECTION AND SECURITY

 

		17.1	[***]

 

		17.2	The Parties recognize that by their nature, the Oil Operations may produce an ecological imbalance in
the Contract Region because of environmental pollution. Therefore, by implementing the Contract, the Contractor must adopt the necessary
measures to prevent or minimize soil, atmosphere and water pollution, and take care so that the pollution will not harm the flora or the
fauna and, in general, prevent any thing that could materially damage the environment. If the Contractor cannot prevent environmental
pollution in accordance with the Constitution and Environmental Framework Act of Benin, it should take the appropriate measures to minimize
its effects in accordance with the international norms. These measures must be communicated to the Minister for approval.

 

		17.3	To minimize or eliminate pollution, the Contractor must use appropriate technical measures approved by
the Minister.

 

		17.4	[***].

 

		17.5	The Contractor shall commit himself/herself to call for specialists in the field to study the possible
incidence of Oil Operations on the environment. That study should be on:

 

		(a)	The state of the environment and the existing pollution level in the Contract Region and the neighbouring
regions before the Oil Operations;

 

		(b)	The incidence that the Oil Operations may have on that environment.

 

The study mentioned in paragraph (a)
must be carried out in two phases:

 

		(1)	A preliminary study submitted by the Contractor to the Minister before the seismic survey of the Contract
Region and

 

		(2)	The definitive study applicable to all the exploration period and that should be presented to the Minister
before drilling the first well. The study mentioned in paragraph (b) must be carried out and submitted to the Minister at least [***]
days before drilling the said wells.

 

		17.6	The above-mentioned studies should include the measures used to eliminate or minimize, among others, the
hereunder mentioned wastes as well as the way to neutralize them:

 

		(a)	Drilling mud and Hydrocarbons from the tests, completion, conditioning and abandonment of wells;

 

		(b)	Solvents, lubricants and other products used during the operations;

 

		(c)	Organic waste, rubbish and unusable products in the workplaces and camps.

 

    Page 29 of 52

     

    

 

		17.7	The Contractor must conceive and build its facilities and endeavour to minimize the environmental pollution
and adopt, among others, the following measures on the drilling and exploitation equipment sites:

 

		(a)	Drainage systems/recuperation of overflowing Crude Oil and other derivatives and polluted waters;

 

		(b)	Waste management system.

 

		17.8	The Contractor shall commit himself/herself to include the provisions of this Article in all contracts
negotiated with third parties and related to the Oil Operations.

 

		17.9	If the Contractor does not comply with the provisions of this Article and the Crude Oil or any other product
overflows into the soil, the sea floor or into the sea, or if the activities of the Contractor cause another form of pollution or, in
any other way, contaminate water supply points or plant or animal life, the Contractor should immediately take all appropriate measures
consistent with Best Practices to control the pollution, clean all overflowing Crude Oil or any other product, or fix as completely as
possible any damage caused.

 

		17.10	If, as a direct consequence of gross or deliberate negligence of the Contractor, there is an overflowing
or a pollution, the cost of the activities to control, clean and repair shall be supported by the Contractor and shall not be considered
as Oil Costs in accordance with this Contract.

 

		17.11	In case of a danger likely to affect the environment, the Contractor should immediately notify it to the
Minister and take the measures set out in the emergency measures adopted by the Parties in compliance with Best Practices.

 

		17.12	At any time, the Contractor may return or abandon any part of the Contractual Zone or any Well not included
in a Field, subject to prior notice of [***] months to the Minister in charge of Hydrocarbons, provided that the Contractor has
fulfilled all of its obligations pursuant to this Contract and has provided the Minister with detailed information on the status of any
Deposit and the facilities and equipment located in this zone, in addition to any plan for the removal or dismantling of these facilities
and equipment, including all technical and financial information. All abandonment operations must be carried out in accordance with the
Law on Hydrocarbons.

 

		17.13	The abandonment of a Field by the Contractor and the corresponding abandonment plant shall require the
prior approval of the Minister in charge of Hydrocarbons in accordance with the Law on Hydrocarbons. The Contractor shall prepare and
submit to the Minister an abandonment plan for all Wells, facilities and equipment, the restoration of the land and the continuation of
the Oil Operations, as applicable, in accordance with the Law on Hydrocarbons.

 

		17.14	Unless the Minister in charge of Hydrocarbons decides to retain the facilities and equipment in order
to continue the Oil Operations in accordance with Article 17.17, the Contractor shall be obligated to fully abandon all of the Fields
of the Contractual Zone before the end of the Exploration Period or any Extension Period, as applicable.

 

		17.15	Upon receipt by the Minister of the notification indicated in Article 17.12 or the abandonment of any
Field, the Minister shall be entitled to resume any Discovery or any Field which the Contractor intends to abandon. If the Minister does
not communicate its intention to resume the Oil Operations within [***] following receipt of the relevant notification, he shall
be considered to have decided not to do so.

 

    Page 30 of 52

     

    

 

		17.16	In order to proceed with the abandonment of a Field, the Contractor shall contribute amounts to a Reserve
Fund consistent with the estimated costs of the abandonment in accordance with the approved abandonment plan. The implementation period
as well as the method of payment of the Reserve Fund shall be defined by mutual agreement between the Minister and the Contractor.

 

		17.17	If the Minister chooses to retain the facilities and equipment to continue the Oil Operations after the
departure of the Contractor, the Reserve Fund thus established and the interests associated therewith shall be provided to the Minister
to cover the subsequent abandonment. The Contractor shall be released for any other abandonment obligation regarding these facilities
and equipment.

 

		17.18	The Contractor must take the necessary measures in accordance with Best Practices to properly and safely
carry out the activities provided for in the Contract and must comply with the legal and regulatory provisions of Benin, including regulations
concerning labour, environmental protection, health and safety. The Contractor must refrain from any action that endangers the health
or safety of persons.

 

		17.19	The Minister shall have the right to inspect all sites, buildings and installations in the Contract Region.
To have access to the sites, the Minister must inform the Contractor in advance.

 

		17.20	The Contractor should see to the safe and effective treatment of the water and residual oil and to the
plugging of the wells before abandoning them.

 

		17.21	The Contractor should cement and abandon all production wells in accordance with common oil practices,
when they stop producing within the Bloc.

 

		17.22	The Contractor should dismantle and remove in accordance with the procedure of abandonment in the Appendix
all the platforms it may have installed in the Contract Region.

 

		17.23	The Contractor should rehabilitate the site in agreement with the Government at the end of the Contract
or when the production of the Bloc stops (see provisional budget for site rehabilitation and consideration of the environmental factor).
Dismantling, removing or abandoning the installations put up by the Contractor shall be done in compliance with the norms of the oil industry
commonly respected in the Gulf of Mexico. On the contrary, the submarine installations or others should be in such a state as to ensure
that they shall not be an obstacle to navigation.

 

		17.24	The Contractor shall leave all pipelines and installations free of oil at the end of the Contract in accordance
with common oil practices.

 

		17.25	The Government shall explicitly agree that the Contractor shall not have any responsibility for abandonment
or environmental rehabilitation other than the one explicitly stipulated in this Contract.

 

		17.26	Any amendment to this agreement on abandonment shall be agreed upon by both Parties.

 

		17.27	In case some laws or regulations in force related to the environment on the date of signature of the Contract
change in such a way that they modify noticeably the economic balance of the Contract, the Parties shall refer to the provisions of Article
27.2.

 

    Page 31 of 52

     

    

 

ARTICLE 18: FOREIGN EXCHANGE ARRANGEMENTS

 

In the context of the regulations in force in
Benin, the Minister shall guarantee that during the life of the Contract, the Contractor and non-Beninese sub-contractors shall be authorized
to:

 

		(a)	Pay in foreign currency, totally or partially, salaries, reimbursements and other compensations;

 

		(b)	Open,
                                            keep and use bank accounts in foreign currency in the Republic of Benin and abroad and accounts
                                            in local currency in the Republic of Benin;

 

		(c)	Pay
                                            directly abroad, in foreign currency, foreign sub-contractors for the acquisition of capital
                                            goods and services related to the Oil Operations;

 

		(d)	Receive,
                                            transfer and keep abroad and posses freely all funds including, among others, all payments
                                            received for the exportation of Hydrocarbons and all payments received from the Government;

 

		(e)	Obtain
                                            from abroad all loans necessary for the Oil Operations;

 

		(f)	Purchase
                                            the local currencies necessary for the Oil Operations and convert into foreign currency all
                                            local currencies exceeding immediate local needs in the certified banks or exchange offices;

 

		(g)	Transfer
                                            abroad all foreign currencies exceeding the local needs of the Contractor. The rights given
                                            to the Contractor and to the Sub-contractors in this Article shall also be applicable
                                            to their foreign employees.

 

    Page 32 of 52

     

    

 

ARTICLE 19: LOCAL CONTENT, SOCIAL PROGRAMMES
AND SIGNING BONUS

 

PRIORITY GIVEN TO BENINESE COMPANIES

 

		19.1	With regard to selecting Sub-contractors to carry out the Oil Operations, the Contractor must give preference
to Beninese Sub-contractors to the extent that they are competitive as far as quality, cost and technical capacity to carry out the activities
within the established activity schedules.

 

EMPLOYMENT AND TRAINING

 

		19.2	Starting from the effective date, the Contractor shall give hiring priority to Beninese personnel possessing
the adequate qualifications at all levels of its organisation in accordance with Labour Legislation in the Republic of Benin.

 

		19.3	According to the employees’ skills, the contractor shall train or contribute to the training of said personnel
to enable them to acquire the necessary qualifications for any position related to the Oil Operations. Using expatriate personnel is subject
to prior authorisation of the Minister in charge of Hydrocarbons.

 

		19.4	Within [***] months following the Effective Date of the Contract, the Contractor must notify the
Minister of the allocation of an annual amount equal to [***], which must be spent by the Contractor during the Exploration Phase
for the training of the Minister’s oil sector officials.

 

		19.5	The aforesaid costs shall be recoverable as Oil Costs in accordance with
the provisions of this Contract.

 

		19.6	The unused training funds shall be paid to the Government upon termination or expiration of the Contract.

 

SUPPORT FUND FOR THE PROMOTION OF THE HYDROCARBON
SECTOR

 

		19.7	The Government shall define and implement the oil activities promotion policy through the support fund
for the Hydrocarbon sector.

 

		19.8	The Contractor agrees to contribute to this fund with an annual donation of [***]. However, it
may directly finance a promotion activity selected by the Minister in charge of Hydrocarbons using this fund.

 

COMMUNITY DEVELOPMENT FUND

 

		19.9	The Contractor shall be willing to contribute to the development of Benin communities through funding
community development projects that the Government shall submit to it. For this purpose, it must provide annual notification of its annual
donation of [***] for the exploratory phase.

 

		19.10	The unused portion of the community development fund shall be paid to the Government upon termination
or expiration of the Contract.

 

		19.11	The three funds will be renegotiated for the production phase.

 

SIGNING BONUS

 

		19.12	The company ELEPHANT OIL LTD has endorsed the airborne radiometric, magnetic and gravimetric surveys performed
by FUGRO for an amount of [***].

 

    Page 33 of 52

     

    

 

ARTICLE 20: ACCOUNTING

 

		20.1	The Contractor must keep accounting records, as well as all financial information, books and records concerning
the Oil Operations in national currency in the form required by the applicable Beninese Legislation.

 

		20.2	Accounting procedures to be applied by the Contractor shall be those set out in the Accounting Appendix
D.

 

		20.3	The audited accounts of the Contractor must be submitted to the Minister for approval at the latest [***]
months following the end of the Calendar Year.

 

		20.4	The Minister may, by giving a notice to the Contractor, at the latest [***] months following the
submission date of the financial accounts, submit all the financial accounts of the Contractor relating to the Calendar Year in question
to be audited by an international firm of chartered accountants designated by both parties. The Government shall bear the costs of that
audit.

 

		20.5	Unless the Parties reach a mutual agreement, the Minister may submit all objections related to the accounts
of the Contractor to an expert decision. Before deciding on an objection submitted, the expert must take into consideration the results
of the financial audits carried out in accordance with the provisions of this Article. If the objection of the Minister is not submitted
to an expert within the [***] months following his receipt of the accounts, the objection in question shall be null and void. If
the objection of the Minister is validated by the expert, the Contractor must rectify the accounts in question and meet the costs related
to the audit and expertise irrespective of the provisions above.

 

    Page 34 of 52

     

    

 

ARTICLE 21: CONFIDENTIAL NATURE OF THE DATA

 

		21.1	All reports, data and information obtained or prepared by the Contractor, inasmuch as they relate to all
or part of the Contract Region, shall be the entire property of the Beninese Government and shall be treated confidentially. Each party
shall promise not to disclose them without first informing the other Party to:

 

		(a)	An affiliated company or a Sub-contractor of the Contractor;

 

		(b)	A
                                            financial institution for the purposes of a loan, a broker, or a legal or financial adviser;

 

		(c)	A
                                            stock market;

 

		(d)	Any
                                            potential transferee pursuant to Article 22 below.

 

		21.2	This clause shall not prevent the Minister from communicating certain information to any governmental
entity and to credible persons interested in acquiring exploration and exploitation rights of Hydrocarbons in Benin.

 

		21.3	All reports, data and information communicated by the Minister or the Contractor to a third party in accordance
with the provisions above, shall be in compliance with agreements, the terms of which shall guarantee that such data, information or reports
shall be treated as strictly confidential by the receiver.

 

		21.4	The reports, data and information related to the Contract Region, and considered as important by the Minister
for the implementation of an exploration programme by a third party in a neighbouring zone, may be communicated to it by the Minister.
In return, the Contractor may have access to the data, information and reports obtained by the said third party concerning an adjoining
zone of comparable exploratory interest. The confidentiality clauses shall apply to that third party.

 

		21.5	All reports, data and information, including interpretations and evaluations related to any surface area
that is no longer part of the Contract Region following retrocession of surface or expiration of this Contract, shall be treated by the
Contractor in strict confidentiality for a period of [***] following the date when the said area stopped being an integral part
of the Contract Region or from the expiry date of this Contract.

 

		21.6	Any violation of the Confidentiality Clauses under this Article shall be punished according to the regulations
in force in Benin regarding disclosure of professional secrets.

 

		21.7	Any news publication initiated by the Contractor and relating to the results of the operations undertaken
in the frame of this Contract shall be subject to prior authorization from the Minister.

 

    Page 35 of 52

     

    

 

ARTICLE 22: ASSIGNMENT OF RIGHTS

 

		22.1	The Parties may assign all or part of their rights and obligations arising from this Contract. If the
Contractor intends to assign or transfer its rights in whole or in part in accordance with the Contract, it must immediately submit a
written request for authorisation to the Minister, unless the transfer shall be made to an Affiliate, in which case it must notify the
Minister in writing of its intention to transfer [***] days before the effective date or at a later date agreed upon with the Minister,
after which the transfer shall become effective without the need for authorisation from the Minister. Any request should specify the name,
address and any appropriate information about the technical and financial capacities of the assignee. Within [***] following the
receipt of the request, the Minister must decide whether or not to approve the proposed transfer. Any disagreement of the Minister must
be based on reasonable causes related to technical and financial capacities of the proposed assignee.

 

		22.2	If one of the Parties does a partial assignment of its rights and obligations arising from this Contract,
the assignee shall be responsible, alone and jointly, for the guarantees, responsibilities and obligations of the assignor. If the assignment
is total, the assignee shall be responsible alone for the said obligations and guarantees. Any assignee must adhere to the bank guarantees
and give a guarantee to its parent company, if any, as required by this Contract.

 

    Page 36 of 52

     

    

 

ARTICLE 23: FORCE MAJEURE

 

		23.1	The Parties shall not be held accountable for any default or delay in fulfilling their obligations arising
from this Contract if this default is due to a case of Force Majeure.

 

		23.2	Any action or event that is beyond the reasonable control of the Parties and which prevents them indefinitely
or temporarily from fulfilling their obligations by virtue of the Contract shall be considered a case of Force Majeure. Therefore, the
Force Majeure occurrence shall include but not be limited to the following cases: war or similar situations, embargoes, blockades, earthquakes,
floods, fire, strike or lock-out, terrorist act, riots, and acts of state.

 

		23.3	The Party that shall put forward the case of Force Majeure should:

 

		a)	Inform as soon as possible the other Party by all means and confirm by registered mail with acknowledgement
of receipt by describing precisely the event;

 

		b)	Take, if possible, all appropriate and legal measures to eliminate the cause of Force Majeure;

 

		c)	Inform the other Party in the same forms as soon as the Force Majeure has been eliminated and resume the
execution of the contractual obligations.

 

		23.4	If the case of Force Majeure lasts for more than [***], the Parties to the Contract shall meet
to determine the appropriate actions to undertake.

 

		23.5	It shall be agreed that if for reasons of Force Majeure, one Party is unable to fulfil an obligation or
exercise a right, then, in accordance with the Contract, the deadline given to fulfil the obligation or exercise the right, including
any obligation or any subsequent right, shall be extended for a period equal to the duration of the Force Majeure.

 

    Page 37 of 52

     

    

 

ARTICLE 24: ARBITRATION AND EXPERTISE

 

		24.1	Arbitration 

 

		24.1.1	Subject to the provisions above related to the expertise, any conflict or complaint related to a question
or operation relating to the Contract, including among others, any dispute or complaint related to its validity, its interpretation, its
implementation or omission of the obligations that it shall entail and that cannot be solved amicably between the Parties, should be settled
with prejudice and exclusively through arbitration on the initiative of either Party.

 

		24.1.2	The arbitration procedure shall be enacted by three (3) arbitrators in accordance with the rules of conciliation
and arbitration of the International Centre for Settlement of Investment Disputes (ICSID) of the World Bank Group. The Parties agree to
respect the decisions of the arbitration tribunal.

 

		24.1.3	Unless the Parties otherwise decide by mutual agreement in writing, the third arbitrator designated as
indicated above must not be a Benin national or a person having the same nationality as the Contractor.

 

		24.1.4	For any arbitration procedure in accordance with this Article:

 

		a)	The procedure must take place in Paris (France), unless otherwise decided by the Parties by mutual agreement;

 

		b)	French shall be the official language in any respect, and

 

		c)	The decision of the majority of the arbitrators shall be imposed on the Parties.

 

		24.2	Expertise

 

		24.2.1	Any Party wishing to submit a matter for the decision of an expert in compliance with a provision of the
Contract that provides for that procedure, including the Accounting Appendix, or any other that the Parties shall decide to submit by
mutual agreement for the decision of an expert under this Article, should notify it to the other Party. This notification must include
a list of at least three (3) proposed experts. The other Party should respond to that notification within [***] days following
the date of receipt either by accepting one (1) of the proposed experts or by proposing at least three (3) others. In this last case,
the Party that presented the initial notification shall have [***] days to accept one (1) or reject all of the experts proposed
by the other Party. Non-notification shall constitute a rejection of the proposed experts.

 

		24.2.2	If the Parties do not reach an agreement in selecting an expert within the [***] days following
the date of the first notification by virtue of the paragraph above, any of the parties may ask the Technical Expert Centre of the International
Chamber of Commerce (ICC), based in Paris, to designate an expert in accordance with its regulations.

 

		24.2.3	If the expert agreed upon by the Parties or designated in accordance with the above-mentioned provisions
declines the request of the Parties, dies or, for any other reason, is in the impossibility to act as an expert, the Parties must meet
immediately to designate another expert to replace it. If the parties do not reach an agreement within [***] days following the
date it has been established that the first expert could not act, any of the Parties may ask the Technical Expert Centre of the ICC to
designate another one in accordance with its regulations.

 

		24.2.4	The Parties shall be bound to cooperate with the expert as much as possible and each Party must ensure
the cooperation of its Affiliates. The Parties should ensure the accessibility of the data and information the Parties or their Affiliates
can give and that, according to the expert, could contribute to its decision. The representatives of the Parties shall have the right
to consult the expert and to give it written information, but the expert can impose reasonable limits to this right. It shall be free
to evaluate if a document or information submitted for its assessment is justified or relevant.

 

		24.2.5	All costs related to the selection and use of the expert shall be financed jointly and equally by the
Parties.

 

		24.2.6	Any decision taken by the expert in accordance with this Article by virtue of a provision of the Contract
that explicitly provides for this procedure shall be final and binding on the Parties. No Party shall submit an issue decided by an expert
to an arbitration procedure as provided in this Contract. By mutual agreement among the Parties, issues submitted to the decision of an
expert may be the object of an ultimate and final decision through arbitration, if the Parties agree to do so when submitting the issue
to an expert.

 

    Page 38 of 52

     

    

 

ARTICLE 25: CANCELLATION

 

		25.1	CANCELLATION BY THE STATE OR BY THE CONTRACTOR

 

		25.1.1	Notwithstanding any other action provided for herein, this Contract may be terminated by the Minister
in charge of Hydrocarbons without damages to the Contractor for any of the following reasons:

 

[***]

 

		25.1.2	During the exploitation period, the Contractor may terminate the Contract by written notice to the Minister
at least [***] days before the date of termination, provided that the Contractor has fulfilled all of its contractual obligations,
tax obligations and obligations arising from the corresponding Annual Work Programme.

 

		25.1.3	If the Contract is terminated in accordance with this Article, the Contractor shall have the right to
remove and export all goods it has used and the title of ownership of which has not been transferred, partially or totally, subject to
paying all debts due to the Government. The Contractor shall lose all other rights related to the Contract. It shall not be released from
any of the obligations it may have contracted before the effective date of termination, whether they derive from the said termination
or are the object of the termination.

 

		25.1.4	If the Contractor challenges any of the events provided in this Article or affirms that one of these events
happened but it has remedied it, the Contractor may appeal to an arbitration procedure or the decision of an expert within [***]
days following the date of receipt of the termination notification from the Minister.

 

		25.1.5	Before leaving the Contract Region following a termination, the Contractor should make sure that all the
wells are left in good state in accordance with Best Practices.

 

		25.1.6	The termination of the Contract takes place without any prejudice to any other right that, in compliance
with the Contract, could have been established in favour of the Parties before the said termination.

 

		25.2	Notification of Termination and grace period

 

		25.2.1	The Minister in charge of Hydrocarbons shall declare this Contract terminated after sending a formal notification
to the Contractor by any means that leaves a written record requesting that it remedy the situation or failure within [***] days
of receipt of this notice with regard to payments or within [***] days of receipt of this notice for all other situations.

 

		25.2.2	If the Contractor does not comply with this notification within the required period or does not demonstrate
within [***] Days or [***] days that it has began and shall continue diligently and promptly to remedy the situation or
failure in question, the Minister may automatically terminate this Contract.

 

    Page 39 of 52

     

    

 

ARTICLE 26: BANK GUARANTEE

 

		26.1	To fulfil its minimum work obligations to the reasonable satisfaction of the Government, the Contractor
must submit an irrevocable bank guarantee of [***] within [***] of the Effective Date.

 

		26.2	Failing to present the bank guarantee within the required deadline shall be a violation of the provisions
of the Contract and shall lead de facto to its termination by the Minister in accordance with the provisions relating to termination.

 

		26.3	The payable amount in compliance with the above-mentioned bank guarantee shall be gradually reduced in
as much as the minimum work obligations for the year involved are well performed. For the purpose of this reduction, the Contractor may
at any moment submit to the approval of the Minister a declaration showing the level at which the work obligations have been performed.
This approval should intervene in reasonable deadlines.

 

		26.4	To make effective the above-mentioned deduction, the Minister should notify his approval of the bank guarantee
to the issuing bank within a deadline of [***] days from the date of receipt of the Contractor’s request.

 

		26.5	If the Contractor considers that the above-mentioned approval of the Minister has unjustifiably delayed
or if the Minister considers that the Contractor has not performed a minimum work obligation satisfactorily in accordance with Best Practices,
any one of the Parties may submit the matter for the decision of an expert.

 

		26.6	The guarantees to be presented by the Contractor in accordance with this Article must be approved by the
Minister. The Contractor must submit to the Minister the original documents of the guarantees so that he can check and preserve them.

 

    Page 40 of 52

     

    

 

ARTICLE 27: NOTIFICATION

 

		27.1	To be considered valid, any communication or notification relating to the Contract must be presented on
a working day or received by registered mail, telegraph, telex or fax addressed to the receiver to the following addresses:

 

The Government:

 

Represented by the Minister of Energy,
Oil and Mining Research, Water and Development of Sustainable Energy

 

04 P.O. Box: 1412

 

Cotonou (Republic of Benin)

 

Fax (229) 21 31 35 46

 

The Contractor:

 

...........................................................

 

...........................................................

 

...........................................................

 

..........................................................

 

		27.2	The Parties shall have the right to change their address for the purpose of the provisions of notification
and communication by notifying it in writing to the other Party at least [***] days before the effective date of change.

 

    Page 41 of 52

     

    

 

ARTICLE 28: APPLICABLE LEGISLATION, STABILISATION
AND COMPENSATION

 

		28.1	This Contract shall be governed and interpreted in accordance with the laws and regulations in force in
the republic of Benin.

 

		28.2	If the laws and regulations in force
                                            in Benin at the date of signature and applicable to the implementation or interpretation
                                            of the Contract or to the economic rights of the Parties are amended in a way to modify noticeably
                                            the existing economic balance between the Parties at the date of signature, they should meet
                                            to discuss any amendment that, by mutual agreement, shall restore the said balance. Any amendment
                                            adopted by mutual agreement by the Parties should take into account the most likely technical
                                            and commercial parameters in case of future development of the Hydrocarbons. If the parties
                                            do not agree on the parameters to be used for these calculations, or on the amendments that
                                            should restore the existing economic balance at the date of signature, the disagreements
                                            must be submitted for decision by an expert.

 

If
the laws of Benin are modified and therefore reduce the benefits or advantages of the contracting party, the terms of the Contract shall
be modified in order to balance the economic benefits of the contracting Party as they were on the Date of Signing of the Contract.

 

		28.3	If, in the Code or the regulation
                                            in force in Benin, there is no appropriate rule for the disagreement related to the Contract,
                                            the customs and practices of the international oil industry and the principles of law applicable
                                            in the field in the oil countries shall be used.

 

		28.4	The
                                            Parties agree that the Government shall bear the consequences of contractual, legal
                                            and financial commitments vis-à-vis the third parties, as well as any conflict and
                                            damages occurring for the duration of the Contract.

 

    Page 42 of 52

     

    

 

ARTICLE
29: INFRASTRUCTURE

 

		29.1	The
                                            Government shall make things easier for the Contractor to undertake the Oil Operations, use
                                            any roads, storage tanks and other storage and treatment structures, quays and other loading
                                            and exportation structures, railroads, pipelines and other existing transportation infrastructures
                                            in Benin and that are not used exclusively for other activities including other oil activities.

 

		29.2	The
                                            Contractor shall pay the rights of passage and other reasonable fees for using such infrastructures
                                            in accordance with the regulations in force in Benin. The costs incurred in this context
                                            shall be considered as Oil Costs and may be recovered by the Contractor but shall not exceed
                                            those paid by the public in general or other parties in the same situation as the Contractor.

 

    Page 43 of 52

     

    

 

ARTICLE 30: GUARANTEES FROM PARENT COMPANIES

 

The Contractor shall agree to produce on the Effective
Date of the Contract a letter from the Parent Companies guaranteeing the performances of ELEPHANT OIL LTD for all obligations described
or referred to in the Contract.

 

    Page 44 of 52

     

    

 

ARTICLE 31: FINAL PROVISIONS

 

		31.1	If on one or more occasions, the Ministry or the Contractor fails to put forward or to underline the fulfilment
of one of the provisions of the Contract, this shall not be interpreted as a renunciation of the future application of the provision or
right in question.

 

		31.2	All matters that are not expressly set out in this Contract shall be governed by the Code and the other
laws and regulations of the Republic of Benin.

 

		31.3	If a provision of the Contract is declared null or invalid for any reason whatsoever, that shall not mean
that the Contract or any of its provisions may be declared null or void, unless the Contract or its other provisions are concerned by
that nullity.

 

		31.4	The Contract cannot be modified without the unmistakable and written consent of the Parties, but the Minister
may, however, extend the period, during which the Contractor should perform well any obligation incumbent on it, or both Parties may exercise
freely, implicitly or explicitly any right conferred to them by virtue of this Contract.

 

		31.5	The titles used in the Contract shall serve only to make it understandable and shall not be interpreted
as bearing a particular meaning.

 

		31.6	Any reference in the singular shall include the plural and vice-versa.

 

		31.7	Any reference to gender shall include both genders.

 

		31.8	The Contract constitutes the full agreement of the Parties and shall replace all results of agreements
and negotiations completed between the Parties before the date of signature.

 

		31.9	The Contract, once signed by both Parties, shall be published in the Official Gazette of the Republic
of Benin and everywhere the need shall arise.

 

		31.10	This Contract is signed in two (2) originals.

 

Drafted in
Cotonou on 

 

	
    For the Government 

    of the Republic of Benin 
	 	
    For the Contractor 

     

	
     

    The Minister of Energy, Oil and Mining Research,
    Water and Development of Renewable Energy

     

     

    Barthélémy Dahoga KASSA 
	 	
     

    President of ELEPHANT OIL LTD

     

     

     

     

     

    Matthew LOFGRAN

 

    Page 45 of 52

     

    

 

 

 

 

 

APPENDIXES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Page 46 of 52

     

    

 

APPENDIXES 

 

APPENDIX A: COORDINATES OF THE CONTRACT REGION

 

APPENDIX B: MAP OF THE CONTRACT REGION

 

APPENDIX C: BANK GUARANTEE

 

APPENDIX D: ACCOUNTING APPENDIX

 

APPENDIX E: ABANDONMENT PROCEDURE

 

    Page 47 of 52

     

    

 

APPENDIX “A”

 

[***]

 

    Page 48 of 52

     

    

 

APPENDIX B 

 

[***]

 

    Page 49 of 52

     

    

 

APPENDIX “C”

 

[***]

 

    Page 50 of 52

     

    

 

APPENDIX “D” 

 

[***]

 

    Page 51 of 52

     

    

 

APPENDIX ’‘E’’

 

[***]

 

 

Page 52 of 52

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