Document:

Floating, Production, Storage and Offloading vessel contract

 EXHIBIT 10.5A 
  
 FPSO CHARTER CONTRACT 
  
 for 
  
 FPSO Hull No: 2284 
  
 between 
  
 Malaysia
International Shipping Corporation Berhad 
  
 and

  
 Murphy Sabah Oil Co., Ltd. 
  
 CONTRACT NUMBER 
 Murphy/Kikeh/K003A 

 TABLE OF CONTENTS 
  

							
	 ARTICLE 1 DEFINITIONS AND INTERPRETATIONS
	  	2
		
	 ARTICLE 2 FPSO TO BE CHARTERED
	  	16
	 	  	     2.1
	  	 CHARTER PERIOD/CLASS
	  	16
	 	  	     2.2
	  	 OWNER’S SERVICES
	  	17
	 	  	     2.3
	  	 COMPLIANCE WITH LAWS
	  	17
	 	  	     2.4
	  	 WORK AND SPECIFICATIONS/SAILAWAY DATE
	  	17
	 	  	     2.5
	  	 CHARTERER’S PERSONNEL ON BOARD
	  	19
	 	  	     2.6
	  	 FPSO NAME
	  	19
	 	  	     2.7
	  	 FIRST OIL/OWNERSHIP
	  	19
	 	  	     2.8
	  	 EXCLUSIVE USE
	  	19
	 	  	     2.9
	  	 OWNER SUPPLIED ITEMS
	  	19
		
	 ARTICLE 3 DELIVERY
	  	19
	 	  	     3.1
	  	 FPSO COMMISSIONING; DELIVERY DATE
	  	19
	 	  	     3.2
	  	 COMMENCEMENT OF HIRE
	  	21
	 	  	     3.3
	  	 PROGRESS REPORTS
	  	21
	 	  	     3.4
	  	 PERMITTED DELAY
	  	23
	 	  	     3.5
	  	 DELAYED READY FOR RISERS
DATE/CANCELLATION
	  	23
	 	  	     3.6
	  	 ADJUSTMENTS TO READY FOR RISERS
DATE
	  	24
	 	  	     3.7
	  	 NO COMMERCIAL USE PRIOR TO
DELIVERY
	  	24
	 	  	     3.8
	  	 FPSO SITE
	  	25
	 	  	     3.9
	  	 DELIVERABLES
	  	25
	 	  	     3.10
	  	 OCIMF
	  	26
		
	 ARTICLE 4 OWNER’S OBLIGATIONS
	  	27
	 	  	     4.1
	  	 TIMELY PERFORMANCE
	  	27
	 	  	     4.2
	  	 PERFORMANCE OF THE SERVICES
	  	27
	 	  	     4.3
	  	 OWNER’S PERSONNEL
	  	27
	 	  	     4.4
	  	 SAFETY OF OWNER’S AND
CHARTERER’S PERSONNEL
	  	28
	 	  	     4.5
	  	 ENGLISH COMMUNICATIONS
	  	28
	 	  	     4.6
	  	 PERFORMANCE DATA
	  	28
	 	  	     4.7
	  	 OWNER GUARANTEE
	  	28
	 	  	     4.8
	  	 [INTENTIONALLY LEFT BLANK]
	  	28
	 	  	     4.9
	  	 QUIET ENJOYMENT LETTER AND ESTOPPEL
	  	28
	 	  	     4.10
	  	 FPSO DOCUMENTATION ON BOARD AT DELIVERY
	  	29
	 	  	 	  	 	  	 
	 	  	     4.12
	  	 EVIDENCE OF AUTHORIZATIONS, APPROVALS, ETC.
	  	29
	 	  	     4.13
	  	 INSURANCE
	  	29
	 	  	     4.14
	  	 OPERATING AREA PERMITS
	  	29
		
	 ARTICLE 5 CHARTERER’S OBLIGATIONS
	  	30
	 	  	     5.1
	  	 CHARTERER’S INSTRUCTIONS
	  	30
	 	  	     5.2
	  	 GOVERNMENT APPROVALS
	  	30
	 	  	     5.3
	  	 [INTENTIONALLY LEFT BLANK]
	  	30
	 	  	     5.4
	  	 CHARTERER SUPPLIED ITEMS
	  	30
	 	  	 	  	 
		
	 ARTICLE 6 TERM OF CHARTER
	  	30
	 	  	     6.1
	  	 EARLY TERMINATION
	  	30
	 	  	     6.2
	  	 RENEWAL OPTION
	  	30
	 	  	     6.3
	  	 EXTENDED TERM
	  	30
	 	  	     6.4
	  	 LAY UP
	  	31
	 	  	     6.5
	  	 RELOCATION OF FPSO
	  	31
	 	  	     6.6
	  	 THIRD PARTY CRUDE OIL
	  	31
		
	 ARTICLE 7 RELATIONSHIP OF THE PARTIES
	  	31
	 	  	     7.1
	  	 OWNER GROUP PERSONNEL
	  	31
	 	  	     7.2
	  	 NEITHER PARTY MAY BIND OTHER
PARTY
	  	31
	 	  	     7.3
	  	 NO CLAIMS AGAINST CO-VENTURERS
	  	31
	 	  	     7.4
	  	 CONTROL OF FPSO
	  	32
	 	  	     7.5
	  	 OWNER GROUP PERSONNEL’S WAGES
	  	32

  

 i 

							
	 	  	    7.6	  	 CHARTERER’S INSPECTION RIGHTS
	  	32
	 	  	    7.7	  	 HYDROCARBON DEPOSITS
	  	32
	 	  	    7.8	  	 ENVIRONMENTAL LAWS’ WAIVER
	  	32
	 	  	    7.9	  	 CONTROL OF CRUDE OIL PRODUCTION
	  	33
		
	 ARTICLE 8 UNDERTAKINGS, REPRESENTATIONS AND WARRANTIES
	  	33
	 	  	    8.1	  	 OWNER
	  	33
	 	  	    8.2	  	 OTHER REPRESENTATIONS AND UNDERTAKINGS OF
OWNER
	  	33
	 	  	    8.3	  	 CHARTERER REPRESENTATIONS AND WARRANTIES
	  	36
	 	  	    8.4	  	 FPSO BUILDING, REFURBISHMENT AND CONVERSION
CONTRACT
	  	37
		
	 ARTICLE 9 COMPENSATION
	  	38
	 	  	    9.1	  	 HIRE RATE ACCRUAL
	  	38
	 	  	    9.2	  	 HIRE RATE ADJUSTMENT; DOWNTIME/SHUTDOWN; ANNUAL
MAINTENANCE ALLOWANCE
	  	39
	 	  	    9.3	  	 PRE-PAYMENTS
	  	42
	 	  	    9.4	  	 INSURANCE COSTS AND REIMBURSABLES
	  	44
		
	 ARTICLE 10 MANNER OF PAYMENT/SHUTDOWN
	  	44
	 	  	    10.1	  	 DATE AND MANNER; ACCRUED HIRE RATE;
SHUTDOWN.
	  	44
	 	  	    10.2	  	 PAYMENT PERIOD
	  	48
	 	  	    10.3	  	 LATE PAYMENTS
	  	48
	 	  	    10.4	  	 NO WAIVER AS TO PAYMENTS
	  	49
	 	  	    10.5	  	 INVOICE DISPUTES
	  	49
	 	  	    10.6	  	 INVOICE CONTENTS
	  	49
	 	  	    10.7	  	 CHANGE OF OWNER BANK ACCOUNT
	  	49
		
	 ARTICLE 11 LIENS
	  	49
	 	  	    11.1	  	 NO LIENS
	  	49
	 	  	    11.2	  	 LIENS ARISING BY OPERATION OF LAW
	  	50
	 	  	    11.3	  	 CHARTERER’S QUIET ENJOYMENT
	  	50
		
	 ARTICLE 12 HEALTH, SAFETY AND ENVIRONMENTAL OBLIGATIONS
	  	50
	 	  	    12.1	  	 ENVIRONMENTAL LAWS
	  	50
	 	  	    12.2	  	 SAFETY LAWS
	  	50
	 	  	    12.3	  	 HELICOPTERS/SUPPLY BOATS
	  	50
		
	 ARTICLE 13 TAXES/DUTIES
	  	51
	 	  	    13.1	  	 TAXES AND DUTIES
	  	51
	 	  	    13.2	  	 STATUTORY EXEMPTIONS
	  	52
	 	  	    13.3	  	 CHARTERER’S TAX INDEMNITY
	  	52
	 	  	    13.4	  	 OWNER’S TAX INDEMNITIES
	  	52
	 	  	    13.5	  	 CERTAIN MALAYSIAN TAX AND CUSTOMS DUTIES
REQUIREMENTS
	  	53
	 	  	    13.6	  	 CHARTERER’S TAX INDEMNITIES
	  	54
	 	  	    13.7	  	 OTHER TAX INDEMNITIES
	  	55
	 	  	    13.8	  	 TAX SAVINGS
	  	56
		
	 ARTICLE 14 CONFLICTS OF INTEREST; FEES; GOVERNMENT PAYMENTS
	  	56
	 	  	    14.1	  	 COMMISSIONS/FEES
	  	56
	 	  	    14.2	  	 CORRUPT PAYMENTS
	  	56
	 	  	    14.3	  	 ARTICLE 14 CLAIMS
	  	57
		
	 ARTICLE 15 OPTION TO PURCHASE THE FPSO
	  	57
	 	  	    15.1	  	 OPTION
	  	57
	 	  	    15.2	  	 EXERCISE OF OPTION
	  	57
	 	  	    15.3	  	 TERMS AND CONDITIONS OF SALE
	  	57
	 	  	    15.4	  	 CLOSING OF SALE
	  	57
	 	  	    15.5	  	 ASSIGNMENT OF PURCHASE RIGHT
	  	58
		
	 ARTICLE 16 PARTY REPRESENTATIVES
	  	58
	 	  	    16.1	  	 OWNER REPRESENTATIVE
	  	58
	 	  	    16.2	  	 CHARTERER REPRESENTATIVE
	  	58
		
	 ARTICLE 17 TERMINATION
	  	58
	 	  	    17.1	  	 TERMINATION BY CHARTERER
	  	58
	 	  	    17.2	  	 EARLY TERMINATION PAYMENT AND EXPENSES
	  	58
	 	  	    17.3	  	 CHARTERER’S OTHER GENERAL TERMINATION
RIGHTS
	  	59
	 	  	    17.4	  	 OWNER’S TERMINATION RIGHTS
	  	61
	 	  	    17.5	  	 PARTIES’ OTHER TERMINATION OR CANCELLATION
RIGHTS.
	  	62

  

 ii 

							
	 	  	    17.6	  	 OWNER’S MATERIAL BREACH - PROCEDURES.
	  	62
	 	  	    17.7	  	 TERMINATION WITHOUT PREJUDICE
	  	62
	 	  	    17.8	  	 SPECIFIC PERFORMANCE.
	  	63
	 	  	    17.9	  	 FPSO OPERATING AND MAINTENANCE AGREEMENT.
	  	63
		
	 ARTICLE 18 MAINTENANCE, REPAIRS AND DRYDOCKING
	  	63
	 	  	    18.1	  	 OBLIGATIONS
	  	63
	 	  	    18.2	  	 OTHER REPAIRS, INSPECTIONS, FPSO CLASSIFICATION CERTIFICATES,
ETC.
	  	63
	 	  	    18.3	  	 DRYDOCKING DUE TO OWNER BREACH,
ETC.
	  	64
	 	  	    18.4	  	 [INTENTIONALLY LEFT BLANK.]
	  	67
	 	  	    18.5	  	 FPSO OPERATING AND MAINTENANCE AGREEMENT
	  	67
		
	 ARTICLE 19 REPLACEMENT EQUIPMENT OR MACHINERY
	  	67
	 	  	    19.1	  	 EQUIPMENT REPLACEMENT
	  	67
	 	  	    19.2	  	 FPSO ASSISTANCE
	  	67
		
	 ARTICLE 20 REQUISITION OR SEIZURE
	  	68
	 	  	    20.1	  	 GOVERNMENT ACTION
	  	68
	 	  	    20.2	  	 INDEMNIFICATION
	  	68
		
	 ARTICLE 21 ACTUAL OR CONSTRUCTIVE TOTAL LOSS
	  	69
	 	  	    21.1	  	 TOTAL LOSS TERMINATION
	  	69
	 	  	    21.2	  	 REMOVAL OF WRECK AND/OR DEBRIS
	  	69
	 	  	    21.3	  	 MITIGATION OF EXPOSURE; REIMBURSEMENT
	  	69
	 	  	    21.4	  	 REPAIRS
	  	69
		
	 ARTICLE 22 AUDIT
	  	70
		
	 ARTICLE 23 VARIATIONS
	  	70
	 	  	    23.1	  	 GENERALLY
	  	70
	 	  	    23.2	  	 CHARTERER’S REQUEST FOR VARIATION
	  	71
	 	  	    23.3	  	 VARIATION PROPOSAL PROCEDURES
	  	71
	 	  	    23.4	  	 OWNER’S VARIATION PROPOSAL; VARIATION
ORDER
	  	71
	 	  	    23.5	  	 INCREASE IN COMPENSATION
	  	72
	 	  	    23.6	  	 VARIATION ORDER COSTS
	  	72
	 	  	    23.7	  	 IMPLEMENTATION OF VARIATION ORDER
	  	72
	 	  	    23.8	  	 WRITTEN AUTHORIZATION
	  	72
	 	  	    23.9	  	 ALTERATION AND INSTALLATION OF ADDITIONAL
EQUIPMENT
	  	72
	 	  	    23.10	  	 CHARTERER’S RIGHT OF AUDIT
	  	73
	 	  	    23.11	  	 VARIATION ORDER PROCEDURES AND FORMATS
	  	73
		
	 ARTICLE 24 ASSIGNMENT AND SUBCONTRACTING
	  	73
	 	  	    24.1	  	 ASSIGNMENT BY CHARTERER
	  	73
	 	  	    24.2	  	 CHARTERER’S OBLIGATIONS UPON ASSIGNMENT
	  	74
	 	  	    24.3	  	 ASSIGNMENT BY OWNER
	  	74
	 	  	    24.4	  	 TRANSFER OF THE FPSO; ASSIGNMENT TO AFFILIATE
OF OWNER
	  	74
	 	  	    24.5	  	 NOVATION AGREEMENT
	  	74
	 	  	    24.6	  	 OWNER’S SUBCONTRACT RIGHTS
	  	74
	 	  	    24.7	  	 CHARTERER’S RIGHT TO REVIEW
SUBCONTRACTS
	  	75
	 	  	    24.8	  	 BREACH OF CHARTER BY SUBCONTRACTOR OR
CONTRACTOR
	  	75
	 	  	    24.9	  	 CHARTERER’S SUB-CHARTER RIGHTS
	  	75
		
	 ARTICLE 25 REDELIVERY OF FPSO
	  	75
	 	  	    25.1	  	 REDELIVERY
	  	75
	 	  	    25.2	  	 DEMOBILIZATION COSTS
	  	75
	 	  	    25.3	  	 CRUDE OIL AND PROCESSED OIL
	  	75
	 	  	    25.4	  	 CHARTERER SUPPLIED ITEMS
	  	76
		
	 ARTICLE 26 FORCE MAJEURE
	  	76
	 	  	    26.1	  	 FORCE MAJEURE
	  	76
	 	  	    26.2	  	 HIRE RATE DURING FORCE MAJEURE
	  	76
	 	  	    26.3	  	 CHARTERER’S FORCE MAJEURE TERMINATION
RIGHT
	  	77
	 	  	    26.4	  	 OWNER’S FORCE MAJEURE TERMINATION
RIGHT.
	  	77
		
	 ARTICLE 27 PATENT INDEMNIFICATION
	  	78
				
	 	  	    27.1	  	 OWNER’S INDEMNIFICATION OBLIGATION
	  	78
	 	  	    27.2	  	 CHARTERER’S INDEMNIFICATION OBLIGATION
	  	78
	 	  	    27.3	  	 INTELLECTUAL PROPERTY OWNERSHIP AND LICENSE
	  	78
	 	  	    27.4	  	 IMPROPER USE
	  	78

  

 iii 

							
		
	 ARTICLE 28 INDEMNITIES AND LIABILITIES
	  	79
	 	 	     28.1
	  	 PRIOR TO DELIVERY DATE
	  	78
	 	 	     28.2
	  	 ON AND AFTER THE DELIVERY DATE AND
DURING THE TERM
	  	79
	 	 	     28.3
	  	 POLLUTION
	  	81
	 	 	     28.4
	  	 WRECK REMOVAL
	  	82
	 	 	     28.5
	  	 NO CONSEQUENTIAL DAMAGES
	  	82
	 	 	     28.6
	  	 THIRD PARTY LIABILITY
	  	82
	 	 	     28.7
	  	 BOTH-TO-BLAME COLLISION CLAUSE
	  	84
	 	 	     28.8
	  	 GENERAL AVERAGE
	  	84
	 	 	     28.9
	  	 SURVIVAL OF INDEMNITIES
	  	84
	 	 	     28.10
	  	 INDEMNITIES ABSOLUTE
	  	84
	 	 	     28.11
	  	 INDEMNITIES COVERED BY INSURANCE
	  	85
		
	 ARTICLE 29 INSURANCES
	  	85
	 	 	     29.1
	  	 GENERAL
	  	85
	 	 	     29.2
	  	 POLICY PROVISIONS WITH RESPECT TO ALL
POLICIES AND COVERAGES.
	  	86
	 	 	     29.3
	  	 INSURANCES AND COVERAGES
	  	87
	 	 	     29.4
	  	 OTHER REQUIRED INSURANCE PROVISIONS, LIMITS AND
COVERAGES
	  	90
	 	 	     29.5
	  	 INSURANCES UNDER THE FPSO OPERATING AND
MAINTENANCE AGREEMENT; NO DUPLICATION
	  	91
	 	 	     29.6
	  	 INSURANCE PROCEEDS.
	  	91
		
	 ARTICLE 30 NOTICES
	  	91
		
	 ARTICLE 31 APPLICABLE LAW AND ARBITRATION
	  	92
	 	 	     31.1
	  	 GOVERNING LAW
	  	92
	 	 	     31.2
	  	 DISPUTE RESOLUTION
	  	92
	 	 	     31.3
	  	 SMALL DISPUTES
	  	94
	 	 	     31.4
	  	 [INTENTIONALLY BLANK]
	  	94
	 	 	     31.5
	  	 ARBITRATION PROVISIONS SURVIVE
	  	94
		
	 ARTICLE 32 CONFIDENTIAL INFORMATION
	  	94
	 	 	     32.1
	  	 CONFIDENTIAL DATA
	  	94
	 	 	     32.2
	  	 PRESS RELEASES; ANNOUNCEMENTS
	  	96
	 	 	     32.3
	  	 CONFIDENTIALITY PROVISIONS SURVIVAL
	  	96
		
	 ARTICLE 33 ENTIRE AGREEMENT
	  	96
		
	 ARTICLE 34 SURVIVAL
	  	96
		
	 ARTICLE 35 RISK ZONE
	  	96
	 	 	     35.1
	  	 DANGEROUS LOCATION
	  	96
	 	 	     35.2
	  	 RISK ZONE PROCEDURES
	  	97
		
	 ARTICLE 36 ENGLISH LANGUAGE AND INTERPRETATION
	  	97
	 	 	     36.1
	  	 COMMUNICATIONS
	  	97
	 	 	     36.2
	  	 HEADINGS
	  	97
	 	 	     36.3
	  	 SINGULAR; PLURAL
	  	97
	 	 	     36.4
	  	 GENDER
	  	97
		
	 ARTICLE 37 SUCCESSORS AND ASSIGNS
	  	98
		
	 ARTICLE 38 WAIVER; CUMULATIVE REMEDIES
	  	98
	 	 	     38.1
	  	 NO WAIVER
	  	98
	 	 	     38.2
	  	 WAIVER IN WRITING
	  	98
	 	 	     38.3
	  	 POWERS CUMULATIVE
	  	98
		
	 ARTICLE 39 PARTIAL INVALIDITY
	  	98
		
	 ARTICLE 40 MODIFICATIONS
	  	98
		
	 ARTICLE 41 EXECUTION BY FACSIMILE AND/OR COUNTERPARTS
	  	99
	 	 	     41.1
	  	 FACSIMILE SIGNATURES
	  	99
	 	 	     41.2
	  	 COUNTERPARTS
	  	99
		
	 ARTICLE 42 RIGHTS OF THIRD PARTIES
	  	99
		
	 ARTICLE 43 CROSS REFERENCES
	  	99
		
	 ARTICLE 44 MISCELLANEOUS
	  	99
	 	 	     44.1
	  	 GENERAL PROVISIONS
	  	99

  

 iv 

							
	 	 	44.2	  	GENERAL SURVIVAL	  	99
	 	 	 44.3
	  	HOST COUNTRY REQUIREMENTS	  	100
	 	 	 44.4
	  	WAIVER OF SOVEREIGN IMMUNITY	  	101
	 	 	 44.5
	  	FTL.	  	101

  
 APPENDICES 

 

																					
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 1            
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

 v 

 This FPSO Charter Contract (together with all Appendices attached hereto, this “Charter”) is made
as of the 31st day of January, 2005. 
  
 BETWEEN: 
  
 Murphy Sabah Oil Co., Ltd., a company incorporated under the laws of The Bahamas and
having its place of business at the address set forth in Article 30 hereof (referred to as “Charterer”); 
  
 and 
  
 Malaysia International Shipping Corporation Berhad, a Malaysian company with its registered office at the address set forth in Article 30 hereof (referred to as “Owner”). 
  
 This Charter consists of this Charter document and Appendices A through M attached hereto and
made a part hereof for all purposes. 
  
 RECITALS: 
  

	 	(i)	Charterer is engaged in oil and gas exploration activities offshore Sabah, Malaysia pursuant to the Production Sharing Contract entered into with Petronas (hereinafter defined);

  

	 	(ii)	Charterer desires to charter from Owner the use of the “FPSO” (as hereinafter defined) at the “Field” (as hereinafter defined)
located offshore Sabah, Malaysia or such other Field offshore Malaysia or other reasonable location determined by Charterer from time to time; 

  

	 	(iii)	Charterer is desirous of having the Owner make certain modifications to a very large crude oil carrier to convert it into an FPSO in accordance with the Specifications to render it
suitable as a FPSO for use at the Field prior to delivery; 

  

	 	(iv)	Owner is willing to cause such modifications to be made and to charter the use of the FPSO to Charterer; 

  

	 	(v)	As a condition of entering into this Charter, Charterer requires “Owner Guarantor” (as hereinafter defined) to execute and deliver to Charterer the
“Owner Guarantee” (as hereinafter defined) which guarantees Owner’s obligations under this Charter; 

  

	 	(vi)	As and from the Delivery Date and thereafter throughout the Term, Charterer shall, unless otherwise provided herein, be responsible for the manning, management, operation,
maintenance and supervision associated with the FPSO; and 

  

	 	(vii)	Concurrently with the execution and delivery of this Charter and of even date herewith, Contractor and Charterer are entering into the FPSO Operating and Maintenance Agreement
(hereinafter defined). 

  

 1 

 NOW, THEREFORE, in consideration of the premises and the mutual covenants set forth below, IT IS AGREED as follows:

  
 ARTICLE 1 
 DEFINITIONS AND INTERPRETATIONS 
  
 The following terms shall have the meaning set forth below for the purposes of this Charter: 
  

							
	Actual Flow Rate	  	Has the meaning given to it in Clause 9.2(ii).
		
	Accrued Hire Rate	  	The per Day sum (expressed in U.S. dollars) of (i) Daily Accrued Reduced Hire Rate which accrued during both the First Reduced Hire Rate Period and the Second Reduced Hire Rate
Period, plus (ii) Daily Accrued Full Hire Rate which accrued during the Full Hire Rate Accrual Period, which is payable, on a Day by Day basis, pursuant to the provisions of Article 10.
		
	Additional Equipment	  	Equipment for the FPSO that is provided and owned exclusively by Charterer, including but not limited to Charterer Supplied Items (except the Fluid Transfer Lines, DTU Riser
Facilities and Umbilicals), Subsea Related Equipment and Charterer’s Communications Equipment, but expressly excluding the FPSO.
		
	Affiliate(s)	  	In relation to any Person, any entity (incorporated or unincorporated) that controls that Person, is controlled by that Person or is controlled by another entity which also
controls that Person, and, “control” and “controlled” means a shareholding (or voting right) of greater than fifty percent (50%) of another entity, provided that any joint venture entity (whether incorporated or unincorporated)
between any entity or joint venture in which both Owner and IHC, Inc. S.A., or their Affiliates, has any interest shall be deemed to be an Affiliate of Owner irrespective of the percentage interest therein held by either Owner or IHC, Inc.
S.A.
		
	Agreed Interest Rate	  	A floating interest rate, compounded monthly, equal to two percentage points (2%) per annum above LIBOR.
		
	Annual Maintenance Allowance	  	The time allowed for maintenance and/or repair as set forth in Clause 5.4 of the FPSO Operating and Maintenance Agreement during which the Hire Rate shall be payable regardless of
any Shutdown, which is
	 	  	calculated with respect to a percentage equal to	 	 	 	of the total time (in hours) that exists in
	 	  	the Primary Term, and that exists in any Secondary Term, and which is allocated by Owner with the agreement of Charterer on an annual basis in advance of each contract year of the
Term.
		
	Annual Maintenance Allowance Schedule	  	The annual written budgeted schedule of Contractor’s proposed Annual Maintenance Allowance hours to be allocated to the immediately following contract year, which Owner and
Contractor present to Charterer for its approval pursuant to the provisions of Clauses 5.4 (ii) and 5.4(iii) of the FPSO Maintenance and Operating Agreement.

  

 2 

			
	Arrival Date	  	The Day on which the FPSO arrives at the FPSO Site after its initial voyage from the shore-based last location where work on the FPSO is being performed by the Builder.
		
	Best Efforts	  	All efforts having the highest likelihood of accomplishing their intended purpose in light of (i) the ability of the Party charged with exercising such efforts to take such action and (ii)
the justifiable expectations of the Party to which the benefit of such efforts will accrue, if successful.
		
	Builder	  	Malaysia Shipyard and Engineering Sdn. Bhd. or other ship builder or contractor performing the FPSO Work with respect to the Building Contract and in accordance with the Specifications, to
make the FPSO ready for delivery on the Delivery Date.
		
	Builder’s Documents Register	  	A register of all drawings, building guidelines, procedures and technical documents compiled by Owner, Builder and all Subcontractors with respect to the FPSO and Additional Equipment and
delivered to and approved by Charterer pursuant to the provisions of Clause 8.4(ii).
		
	Building Contract	  	The contract for the construction, refurbishment, conversion and upgrade of the FPSO, and installation of the Additional Equipment and all other equipment necessary to make the FPSO ready for
delivery on the Delivery Date between Owner and Builder, a true copy of which will be delivered to Charterer within thirty (30) Days after the Contract Date, provided however that all commercial pricing information will be deleted from such copy
delivered to Charterer.
		
	Business Day	  	Means a Day on which banks are open for business in Malaysia.
		
	Certificate of Final Acceptance	  	Written notification from Owner, and executed by Charterer showing Charterer’s acceptance, specifying that: (i) the FPSO has successfully undergone FPSO Commissioning in compliance with
the Specifications, which shall specify the date and time of the Successful Run Completion Date, evidencing completion of FPSO Commissioning; (ii) the FPSO is classed with the final FPSO Classification as required hereunder; (iii) the Delivery Date
has occurred; and (iv) Owner has received a certified copy of the final FPSO Classification certificate issued by the Classification Society confirming that the FPSO meets the requirements of (i) and (ii) above, with no requirements or
recommendations which would impede, restrict or prevent the FPSO from conducting Commercial Operations.
		
	Charter	  	This Charter and all of the Appendices hereto, all of which are attached hereto and made a part hereof for all purposes.
		
	Charterer Group	  	Any or all of Charterer, its respective Affiliates, any Co-Venturer, its and their contractors and their subcontractors, and the Personnel

  

 3 

					
	 	  	of any entity mentioned above; but excluding Owner Group and excluding Petronas or any other Government entity or instrumentality party to the PSC (other than Petronas Carigali
SDN Bhd., which shall be considered part of Charterer Group).
		
	Charterer Guarantee	  	The guarantee of Charterer’s performance under this Charter given by Charterer Guarantor, the form of which is attached as Appendix
G-2, and referenced in Clause 5.5.
	 	  	 
	Charterer Guarantor	  	 
			
	 	  	 	  	.
		
	Charterer’s Notice of Readiness – Hydrocarbons	  	Written notice from Charterer, after it has received Owner’s Notice of Readiness – FPSO Commissioning, that Charterer is ready to deliver hydrocarbons and commence FPSO
Commissioning.
		
	Charterer Property	  	All equipment, property, facilities, vessels, if any, consumables, and materials of Charterer Group (whether owned by Charterer Group or owned by or leased or rented from Third
Parties), including without limitation, the Additional Equipment, the Wells, Christmas Tree, Riser Facilities and Umbilicals, and the Crude Oil and Processed Oil on board the FPSO, regardless of whether the Crude Oil and Processed Oil is owned by
Charterer and the Co-Venturers, the Government or a Third Party, the Fluid Transfer Lines and DTU.
		
	Charterer Representative	  	Such Person as Charterer shall designate from time to time (or any other member of Charterer Group appointed by Charterer or such Person to be such Person’s alternate), who
shall carry out technical and administrative co-ordination of the duties of Charterer as set out in Clause 16.2 and who shall be entitled to be and remain on the FPSO at any time.
		
	Charterer Supplied Items	  	Such information, services and equipment for which Charterer shall have the responsibility to provide to Owner as set forth in Appendix B, Part
B and Appendix E or elsewhere in this Charter
		
	Charterer’s Communications Equipment	  	Certain equipment owned by Charterer to be installed by Owner for ship to shore communications, satellite transmissions, fax transmissions and other similar communications
equipment required by Charterer for communicating and transferring voice, videos, data and information.
		
	Christmas Tree	  	The system of pipes, valves, gauges and related equipment, located on and around the DTU or attached to any subsea wellheads, that controls the flow of Crude Oil, gas and other
hydrocarbons produced from, and the flow of water and gas injection to, the Wells.
		
	Claims	  	All claims, losses, liabilities, suits, demands, judgments, and causes of action of any kind (including, but not limited to, those for bodily

  

 4 

			
	 	  	injury, illness, loss of consortium, death, property damage, loss or destruction, and wrongful termination of employment) in any way arising under or relating (directly or indirectly) to: (i)
this Charter; (ii) any subcontract or other agreement executed in connection herewith; or (iii) the operation of the FPSO or any helicopter, tanker, shuttle tanker, supply or crew boat or other vessel used in connection with the Services or with
respect to the operations of the FPSO, including, without limitation, claims for any and all damages (including, without limitation, punitive and exemplary damages), expenses, bonding fees, penalties, assessments, costs (including, without
limitation, attorneys’ fees and court costs), and losses, and whether asserted by either Party or an injured Person (as to personal injury or property damage) or such Person’s spouse, heirs, survivors or legal representative, or those
Persons or entities entitled to assert claims on account of bodily injury, illness, loss of consortium or support, death, or damage to or loss of personal property, and irrespective of whether any of same arises in contract, tort or strict
liability.
		
	Classification Society	  	American Bureau of Shipping (“ABS”) or another equivalent body agreed by the Parties in writing.
		
	Closing	  	Shall have the meaning given in Clause 15.4 with respect to Charterer’s option to purchase the FPSO.
		
	Co-Venturer	  	Any party to the PSC other than Petronas.
		
	Commercial Operations	  	The production, receiving, storage and processing of Crude Oil, processing and compression of natural gas, injection of water into the Wells and storing and off-loading Processed Oil in
accordance with the Specifications and the Classification Society’s FPSO Classification certificate.
		
	Contract Date	  	The date of this Charter set forth in the first paragraph of this Charter above.
		
	Contractor	  	The Person (as agreed in writing by Charterer) who shall perform the O&M Services for the FPSO under the FPSO Operating and Maintenance Agreement.
		
	Crude Oil	  	Liquid petroleum and other hydrocarbons produced at the wellhead in a liquid state at atmospheric pressure.
		
	Daily Accrued Full Hire Rate	  	The Hire Rate per Day which accrues on a Day by Day basis during the Full Hire Rate Accrual Period, and which shall be paid on a Day by Day basis after the Hire Rate Payment Commencement Date
in the manner set forth in Clause 10.1.
		
	Daily Accrued Reduced Hire Rate	  	The U.S. dollar amount per Day equal to seventy five percent (75%) of the Hire Rate which accrues on a Day by Day basis during the First Reduced Hire Rate Period and the Second Reduced
Hire

  

 5 

			
	 	  	Rate Period, if any, and which shall be paid on a Day by Day basis on and after the Hire Rate Payment Commencement Date in the manner set forth in Clause 10.1.
		
	Day or day	  	The period commencing at 00.01 hours of any day and ending at 24.00 hours on the same day.
		
	Delivery Date	  	Has the meaning set forth in Clause 3.1(v).
		
	Demobilization Costs	  	The Owner Group’s documented costs required to demobilize the FPSO to a nearby location in Malaysia, as more particularly described and payable as set out in Appendix B,
Part A, Section 2.
		
	Demobilization Date	  	The Day on which the FPSO has been disconnected from the Riser Facilities at the end of the Term and is ready for tow to the agreed place of re-delivery with the intent to cease operation
hereunder.
		
	Downtime	  	Any time pursuant to the provisions of this Charter or the FPSO Operating and Maintenance Agreement commencing at and during which there is a reduction, restriction, suspension or complete
cessation of the flow of Crude Oil to the FPSO for any reason, including but not limited to, (i) a reduction or cessation of water injection or gas purification or compression which causes Charterer to order a reduction, restriction, suspension or
cessation of Crude Oil production or processing, or (ii) subject to the provisions of Clause 9.2, the FPSO being unable to produce, receive, process, store or offload (or any combination of the foregoing) Crude Oil or Processed Oil (as the case may
be) in compliance with the Specifications and this Charter or the FPSO Operating and Maintenance Agreement; and such reduction, restriction, suspension or cessation is not due to: (a) the well stream being outside the parameters set forth in the
Specifications; (b) the offloading vessel (for any reason not attributable to Owner Group or the FPSO) being unable to receive the Processed Oil; (c) any malfunction or operational default of Charterer’s Fluid Transfer Lines, DTU,
Charterer’s subsea equipment, Riser Facilities, Wells and Umbilicals or Additional Equipment (other than, with respect to the Additional Equipment, any malfunction or operational default due to the default of, or breach by, any of Owner Group
of any obligations under this Charter or the FPSO Operating and Maintenance Agreement); (d) any Sole Fault of Charterer Group; or (e) an event of Force Majeure.
		
	DTU	  	The surface facility attached to the mudline used to support the Christmas Tree and Wells, which is located near to the FPSO Site and is used to control the flow of hydrocarbons from the
casinghead.
		
	Early Payment Commencement Date	  	The sixty-first (61st) Day after the Full Hire Rate Accrual Date (or if such day is not a Business Day, the first Business Day which occurs after such Day).

  

 6 

			
	Early Termination Payment	  	With respect to any applicable date of termination of this Charter, the United States dollar amount calculated and payable to Owner with respect to such date as provided in Appendix
B, Part A.
		
	Encumbrance or Encumbrances	  	One or more, liens, mortgages, charges, repairman’s or shipyard’s lien, maritime liens, security interests, encumbrances, or liens for (i) unpaid insurance premiums or calls, (ii)
judgments, (iii) port charges, (iv) annual charges or (v) fees of the FPSO’s Flag State or liens of any other kind on or against the FPSO, or any portion thereof, its earnings or insurances.
		
	Extended Term	  	Any extension of the Term which occurs pursuant to the provisions of Clause 6.3.
		
	Field	  	Kikeh Field, Block K, offshore Sabah, Malaysia.
		
	First Reduced Hire Rate Period	  	The period commencing on, and including, the Ready for Commissioning Date and continuing until, and including, the Day immediately prior to the Full Hire Rate Accrual Date.
		
	Flag State	  	The country or state where the FPSO is registered, as approved in writing by Charterer.
		
	Fluid Transfer Lines	  	Equipment provided by Charterer comprising three (3) ten (10) inch in diameter production lines, one (1) ten (10) inch in diameter water injection line and one (1) Umbilical from and to the
DTU from the FPSO.
		
	Force Majeure	  	An occurrence resulting from circumstances (other than strikes, industrial disputes or lockouts caused by or involving a Party’s or any Subcontractors’ own workforces, except if
part of a nation-wide general strike or except if a strike by the workforce of any shipyard and other than mere shortage of labor, materials, equipment or supplies) that are beyond the control of the Party affected which prevents the due performance
by such Party of the provisions of this Charter (including, but not limited to, earthquakes, floods (except inclement weather or storms of the ordinary seasonable nature), wars, expropriation, intervention of civil or military authorities or
Government, explosions or fires, riots, insurrections, sabotage or blockades) and which, by the exercise of due diligence, such Party is unable to prevent or overcome, provided that the affected Party gives written notice to the other Party no later
than five (5) Days after the Party giving notice is first made aware of the occurrence, the facts and circumstances giving rise to it, and the obligation or performance which is delayed or is prevented by it.
		
	FPSO	  	The registered floating, production, storage and offloading tanker facility (including the Mooring System and the Process Equipment

  

 7 

			
	 	  	and all Additional Equipment that is installed on the FPSO by Owner Group), that is to be designed, engineered and constructed or refurbished and modified and capable of producing, receiving,
and processing Crude Oil, injecting water into the reservoir as needed, separating associated natural gas and water from the Crude Oil produced, processing, purifying and compressing the separated associated natural gas and storing and exporting
Processed Oil to an offloading tanker, and all engines, generators, pumps, storage tanks, valves, computer hardware, anchors, tools, machinery and equipment belonging thereto and a part thereof, all as more particularly described in the
Specifications.
		
	FPSO Classification	  	ABS Class + A1 Oil Production and Storage, or such other designation used by ABS or other agreed Classification Society to classify a Class A1 floating production and storage
vessel.
		
	FPSO Commissioning	  	Shall have the meaning given in Clause 3.1(iv).
		
	FPSO Drydocking Costs	  	Has the meaning set forth in Clause 18.3(i)(d).
		
	FPSO Operating and Maintenance Agreement	  	That certain agreement dated as of the Contract Date by and between the Charterer and Contractor, or an Affiliate thereof (as agreed by the Charterer) pursuant to which the Contractor
thereunder shall perform the O&M Services for the FPSO for the Charterer during the Term or such other term as set forth in such Agreement.
		
	FPSO Pre-Commissioning	  	All activities necessary for Owner to be ready to begin FPSO Commissioning.
		
	FPSO Site	  	The location in the Kikeh Field designated in Appendix D, Part D to which Owner is to deliver, moor, install, and charter the FPSO.
		
	FPSO Terms and Conditions of Sale	  	The purchase and sale terms and conditions attached as Appendix F and referenced in Clause 15.1 that apply to the purchase and sale of the FPSO upon exercise of the
Option.
		
	FPSO Work	  	All work performed by the Owner Group pursuant to the terms of this Charter and the Specifications, in connection with the engineering, designing, constructing, converting, installing,
refurbishing and equipping the FPSO and the Mooring System, installing the Additional Equipment, towing and mobilizing the FPSO to the FPSO Site, installing the Mooring System at the FPSO Site, safely moving and hooking up the FPSO to the Mooring
System at the FPSO Site making the FPSO and Additional Equipment on board the FPSO ready for FPSO Pre-Commissioning, hooking up to and making commercially operational the FPSO to the Fluid Transfer Lines, carrying out the FPSO Commissioning at the
FPSO Site, and obtaining the FPSO and Additional Equipment classification (except for the Fluid Transfer Lines and DTU, Riser Facilities and Umbilicals which shall be Charterer’s responsibility), and all other work described in Clause 2.4,
Appendix A or elsewhere in this Charter.

  

 8 

			
	Full Hire Rate Accrual Date	  	The date which is the earlier of (i) the forty-third Day after the Ready for Commissioning Date or (ii) the Ready for Hydrocarbons Date.
		
	Full Hire Rate Accrual Period	  	Means the period commencing on the Full Hire Rate Accrual Date and continuing until, and including, the Day immediately before the earlier of the Early Payment Commencement Date or the Ready
for Hydrocarbons Date.
		
	Full Flow Rate	  	Has the meaning set forth in Clause 9.2(ii).
		
	Government	  	The government of Malaysia and of any other relevant jurisdiction where the Services may be performed, and any agency, ministry, taxing authority, administrative subdivision, entity or
instrumentality thereof.
		
	Gas Compression Run Time	  	Subject to the provisions of Clause 3.1(ix), a period of seventy-two (72) continuous hours during which gas compression, processing and separation operations are successfully achieved by
Owner, in accordance with this Specifications, with respect to the gas handling and compression equipment on board the FPSO at the FPSO Site, all to Charterer’s reasonable satisfaction.
		
	Gas Compression Testing	  	Means work performed by Owner Group after the Ready for Hydrocarbons Date in order to successfully achieve the Gas Compression Run Time on the FPSO and its equipment.
		
	Gas Compression Testing Period	  	Means the period of time commencing on the later of (i) the Ready for Hydrocarbons Date or (ii) the first Day on which gas is available in sufficient quality and quantity to achieve minimum
gas compression speed and ending on the Day which is twenty-eight (28) Days after such date.
		
	Government Approvals	  	Shall have the meaning set out in Clause 5.2.
		
	Gross Negligence	  	Such an entire want of care and lack of judgment as to establish that the act or omission in question was the result of actual conscious indifference to the rights, welfare, or safety of the
persons or property affected by it.
		
	Group	  	Either Owner Group or Charterer Group, as the context may require.
		
	Hire Rate	  	The daily hire rate in respect of the FPSO, which rate is payable by Charterer to Owner in the amounts and in the manner set out in Article 9, Article 10 and Appendix B, Part
A.
		
	Hire Rate Payment Commencement Date	  	Means the earlier to occur of (i) the Successful Run Completion Date or (ii) the Early Payment Commencement Date.

  

 9 

			
	 Indemnified Party
	  	 Has the meaning given to it in Clause 28.6(ii)(a).

		
	 Indemnifying Party
	  	 Has the meaning given to it in Clause 28.6(ii)(a).

		
	Insurance Reimbursables	  	All reasonable costs and expenses of Owner incurred in connection with obtaining the insurance policies and coverages, including P&I coverage (excluding, however, any P&I Club
membership fees of Owner for vessels other than for the FPSO and other than for other vessels used by Owner Group for the FPSO Work, the Services or the O&M Services but subject to exclusions set forth in Clause 9.4), which Owner is required to
purchase pursuant to the provisions of Clause 9.4 and Article 29.
		
	Key Personnel	  	Such Owner Personnel required for the FPSO Work and Services who are identified as Key Personnel in Owner’s Project Execution Plan set forth in Appendix C,
Part A.
		
	Lender or Lenders	  	Owner’s lender or lenders, if any, providing financing to Owner for the Services to be performed by Owner prior to the Delivery Date.
		
	LIBOR	  	The one-month London Interbank Offered Rate as displayed on Reuters Screen Page LIBOR for United States dollar deposits at 11:00 a.m., London time, two Business Days prior to the first Day of
the period for which such rate is required, or if not so displayed, then the rate per annum published by the Financial Times of London on such Day as the one month LIBOR for U.S. dollar deposits, failing which the rate shall be the rate quoted by
Citibank N.A., London on such Day for such one-month period.
		
	LOI	  	The letter of intent executed and dated by the Parties prior to the Contract Date, to be delivered to Petronas, with respect to the FPSO Work, the Services and FPSO Commercial Operations
during the Term.
		
	Malaysia	  	Malaysia and all of its states, territories and protectorates and including all of its and their territorial waters, continental shelf and exclusive economic zone.
		
	Master	  	The Person in charge of the FPSO during the performance of the FPSO Work after Sailaway, which Person shall be appointed by the Owner or Contractor and shall be a member of Owner and
Contractor Group.
		
	Mooring System	  	The equipment to safely moor the FPSO, the design and specification of which is described in the Specifications.
		
	Notice of Readiness – FPSO Commissioning	  	Written notification from Owner to Charterer, after the Ready for Risers Date has occurred, specifying that (i) all pre-commissioning activities listed in Appendix B,
Part C, Section A hereto and in

  

 10 

					
	 	  	Clause 3.9(iii) of this Charter have been completed and (ii) Owner is ready to commence FPSO Commissioning, which written notification shall enclose a copy of the Classification
Society’s provisional certificate of FPSO Classification.
		
	Novation Agreement	  	The Novation Agreement referenced in Article 24 hereof, a form of which is attached hereto as Appendix L.
		
	Offsite Repair Work	  	Has the meaning set forth in Clause 18.3(i).
		
	O&M Compensation	  	The compensation structure for Contractor’s provision of the O&M Services under the FPSO Operating and Maintenance Agreement.
		
	O&M Services	  	Shall have the meaning ascribed to the term “Services” as set forth in the FPSO Operating and Maintenance Agreement.
		
	Operating Area	  	Those areas offshore Sabah, Malaysia (including the Field) or elsewhere offshore Malaysia in which Co-Venturers may from time to time conduct operations.
		
	Option	  	Charterer’s option to purchase the FPSO as more particularly defined and described in Article 15.
		
	Owner Group	  	Any or all of Owner, its Affiliates, Contractor, Owner’s Personnel, representatives, or agents, the Builder and the Subcontractors of Owner and the subcontractors of its
Affiliates, any contractors (including their subcontractors) of Owner’s Subcontractors and the Personnel of any entity mentioned in this definition, other than Petronas or any other Government entity or instrumentality party to the
PSC.
		
	Owner Guarantee	  	The guarantee of Owner’s performance under this Charter given by Owner Guarantor, the form of which guarantee is attached as Appendix G-1 and referenced
in Clause 4.7.
	 	  	 	  	 
	Owner Guarantor	  	 	  	 
		
	Owner Property	  	All equipment, property, facilities, consumables, materials (whether owned, leased or rented) of Owner Group, including, without limitation, the FPSO.
		
	Owner Supplied Items	  	Such information, services, materials and equipment for which Owner shall have the responsibility to provide to Charterer as generally set forth in this Charter.
		
	Party or Parties	  	Charterer or Owner or both, as the context requires and their assignees permitted under this Charter who have signed a Novation Agreement.
		
	Performance Data	  	Has the meaning set forth in Clause 4.6.

  

 11 

			
	 Permitted Delay
	  	 Any delay:
  
 (a)    to the extent due to the Sole Fault of any member of Charterer Group;
  
 (b)    directly caused by
Owner’s consideration of Charterer’s reasonable requests or suggestions for variations which do not result in an agreed Variation Order, but only if this directly and demonstrably negatively impacts the Schedule;
  
 (c)    resulting from Force
Majeure described in Article 26;
  
 (d)    agreed as extended time in a Variation Order under Article 23; or
  
 (e)    caused by the acts or omissions of both the Owner Group and Charterer Group; provided, however, in the
case of any such delay caused in part by the acts or omissions of both the Owner Group and Charterer Group, the time allowed for such Permitted Delay shall be fifty percent (50%) of the actual time of such Permitted Delay.

		
	 Permitted Encumbrance
	  	Any (i) Encumbrance for liens or Claims arising by law in the ordinary course of business for debts or maritime claims not yet due, or (ii) any Encumbrance in favor of Owner’s lenders in
connection with the financing of the FPSO or performance of Owner’s obligations under the Charter as will be specifically set out in the QEL.
		
	 Person
	  	Any individual, partnership, joint venture, legal entity, limited liability company, corporation, or unincorporated organization, including any Party.
		
	 Personnel
	  	The officers, directors, employees, representatives, agents or invitees (as the case may be) of Owner or of Owner Group (including the Site Representative) or of Charterer or of Charterer
Group (including Charterer’s Representative) (as the case may be).
		
	 Petronas
	  	Petroliam Nasional Berhad, the national oil company of Malaysia with its registered office at Tower 1, Petronas Twin Towers, Kuala Lumpur City Centre, 50088 Kuala Lumpur,
Malaysia.
		
	 Pollution Limit
	  	Shall have the meaning given in Clause 29.3(vi).
		
	 Pollution Claims
	  	Shall have the meaning given in Clause 28.3(i).
		
	 Pre-Payments
	  	Has the meaning set forth in Clause 9.3.
		
	 Primary Term
	  	The period commencing on the Delivery Date and ending on the date eight (8) years after the Delivery Date.

  

 12 

			
	 Process Equipment
	  	All process equipment installed on board the FPSO to separate, treat and process the fluid stream (Crude Oil and other liquids) received by the FPSO into Processed Oil and liquid waste and
gases and the compression of natural gas, as needed, the design and specification of which is described in the Specifications.
		
	Processed Oil	  	Crude Oil that has been processed on board the FPSO and is suitable for storage and export in accordance with the Specifications.
		
	Progress Reports	  	Has the meaning set forth in Clause 3.3.
		
	Protocol of Delivery and Acceptance	  	A certificate in the form of Appendix I hereto, with all blank spaces appropriately completed, executed by Owner and Charterer certifying that the FPSO has been delivered
to and accepted by Charterer on the Delivery Date.
		
	PSC	  	The Production Sharing Contract, dated 27 January, 1999, for the exploration, development and production of hydrocarbons executed by Charterer, Petronas Carigali SDN BHD and Petronas,
covering the Field; and any additional parties to the PSC as may be signatories from time to time and notified by Charterer to Owner.
		
	QEL	  	Has the meaning set forth in Clause 4.9.
		
	Rate Savings	  	The costs and expenses Owner certifies to Charterer that it will save by its reasonable endeavors as agreed between the Parties to reduce costs and expenses.
		
	RCA	  	Has the meaning set forth in Clause 31.2.
		
	Ready for Commissioning Date	  	The date Owner delivers its Notice of Readiness – FPSO Commissioning to Charterer.
		
	Ready For Hydrocarbons Date	  	The date on which Charterer delivers to Owner Charterer’s Notice of Readiness – Hydrocarbons.
		
	Ready for Risers Date	  	The date on which the Owner delivers to Charterer written notice certifying that (i) the FPSO: (a) has arrived on the FPSO Site at least in compliance with the Specifications; and (b) is
fully and safely moored in accordance with Charterer’s notice identifying the FPSO Site, (ii) all activities listed in Appendix B, Part C, Section A hereto and in Clause 3.9(ii) of
this Charter have been completed and all permits and certificates required therein have been provided, and (iii) (a) Owner is ready to hook into the Riser Facilities; (b) no further actions are required by Owner to connect the FPSO to the Riser
Facilities; and (c) the FPSO is provisionally classified with the provisional certificate of FPSO Classification, which notice shall attach a true copy of the Classification Society’s provisional certificate of FPSO Classification as required
hereunder.

  

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	Riser Facilities	  	Umbilicals and risers extending from the Fluid Transfer Lines and subsea Wells to and connected with the FPSO, as described in Appendix E.
		
	Risk Zone	  	Has the meaning set forth in Clause 35.1.
		
	Run Time	  	Subject to the provisions of Clause 3.1(ix), a period of seventy-two (72) consecutive hours during which continuous production, and water injection operations on the FPSO are successfully
achieved in accordance with the Specifications at the FPSO Site without any Downtime, all to Charterer’s reasonable satisfaction.
		
	Sailaway Date	  	The date the FPSO sails from the Owner’s conversion yard or other location where the FPSO is located at the time it commences its voyage to the FPSO Site.
		
	Schedule	  	The target dates defined in this Article 1 and as further defined or supplemented by the provisions of the Owner’s FPSO Level 3 Schedule contained in Appendix C,
Part B.
		
	Secondary Term	  	Any of the periods of three (3) years after the Primary Term that this Charter is extended pursuant to the provisions of Clauses 6.1 and 6.2, not to exceed a total of fifteen (15) years, in
addition to the Primary Term.
		
	Second Reduced Hire Rate Period	  	The period commencing on the Ready for Hydrocarbons Date and continuing until, and including, the Day immediately before the Successful Run Commencement Date.
		
	Services	  	The FPSO Work and the other services to be provided, or caused to be provided, by Owner Group, at its own cost and expense, under this Charter and all Appendices hereto (including, but not
limited to, all work itemized in the FPSO Work, Appendix A and the Specifications, the mobilization of the FPSO to the FPSO Site, the FPSO Commissioning, Services required pursuant to the provisions of Clauses 18.3 and 19.2 and
the demobilization of the FPSO from the FPSO Site following the termination of this Charter).
		
	Shutdown	  	Any time under the FPSO Operating and Maintenance Agreement commencing when there is a cessation of Crude Oil production or processing which is due to the default of, or breach of any
obligations under this Charter or the FPSO Operating and Maintenance Agreement by, any of Owner Group.
		
	Shutdown Period	  	Any period of time during the Term commencing when Shutdown first occurs and ending when the FPSO has recommenced processing Crude Oil.
		
	Site Representative	  	The Person engaged by Owner to supervise and cause the FPSO Work and the Services to be satisfactorily performed prior to the Sailaway Date.

  

 14 

					
	Sole Fault	 	The act or omission of any Person and such act or omission was not contributed in any material way to or caused by (i) the act or omission of any other Person outside of such
Person’s Group, or (ii) any Force Majeure Event or any other event outside of the control of the first Person.
		
	Specifications	 	Subject to the provisions of Clause 2.4(iv), the description and specifications of the FPSO set out in Appendix D.
		
	Subcontractor	 	Any entity to whom Owner has subcontracted any of its obligations or Services under this Charter.
		
	Subsea Related Equipment	 	Systems on board the FPSO to control the subsea valve functions, operation of the Fluid Transfer Lines and collection of data related to subsea Wells.
		
	 Successful Run 
 Commencement Date
	 	The date on which the first successfully completed Run Time begins.
		
	Successful Run Completion Date	 	Means the date on which the first successful Run Time is completed to Charterer’s satisfaction.
		
	Supply Base	 	The Charterer’s supply base and facilities at Labuan Island, Malaysia.
	 	 	 
	Target Ready For Risers Date	 	 
	 	 	 	 	.
		
	Term	 	Collectively, the Primary Term, any Secondary Term and any Extended Term of this Charter.
		
	Third Party or Third Parties	 	Means any party or parties not a member of Owner Group or Charterer Group.
		
	Third Party Claim	 	Has the meaning given to it in Clause 28.6(ii)(a).
		
	Topsides Equipment	 	Subsea Related Equipment, Process Equipment and other equipment to be placed on or in the FPSO by Owner to monitor and control the subsea equipment, pipes and valves provided by
Charterer, including a master control station, a hydraulic power unit with respect to the subsea trees and manifolds, electrical power unit for the subsea equipment, uninterruptible power supply and topsides umbilical termination
assemblies.
		
	Umbilicals	 	Equipment provided by the Charterer that provides for various services between the FPSO and the DTU and subsea Wells and other subsea facilities.

  

 15 

			
	UNCITRAL	  	The United Nations Commission on International Trade Law.
		
	Variation Order	  	A change in or revision to the Specifications, the FPSO Work, the other Services or any schedule in the Appendices attached hereto agreed in writing between the Parties and issued pursuant to
Article 23.
		
	Water Filtering Equipment	  	Elements used in the water filtration package as more fully described in Appendix D.
		
	Water Injection Module	  	The equipment on board the FPSO to lift, treat and inject seawater.
		
	Well or Wells	  	Any crude oil, water or gas injection well or wells in the Field that Charterer may designate and connect to the FPSO in accordance with this Charter.
		
	Willful Misconduct	  	An act or failure to act by any Person (including the supervisory personnel of a Party), which was intended to cause (or which was in reckless disregard of or wanton indifference to the
possibility that the act or failure to act would cause) damage or harm giving rise to delay or suspension of the performance of the Services or this Charter, and “supervisory personnel” for the purposes of this definition shall mean any
employee of a Party who functions at a management level or an officer or director.

  
 The headings in this Agreement are
inserted for convenience only and shall be ignored in construing this Agreement. 
  
 Unless the context otherwise requires, in this Charter the singular shall include the plural and vice versa, and unless otherwise provided in this Charter, the use of the words “year” or “month” shall mean a calendar
year or month, respectively and the term “contract year” shall mean the period remaining from either the Contract Date or any anniversary thereof until the next annual anniversary date; a “contract month” shall mean any thirty
(30) Day period in any such contract year. 
  
 All provisions of and obligations,
agreements, undertakings, indemnities, governing law and dispute provisions, representations and warranties of the Parties set forth in this Charter shall bind the Parties and be applicable for the full Term. 
  
 ARTICLE 2 
 FPSO TO BE CHARTERED 
  
 2.1 Charter Period/Class. Charterer agrees to lease and charter the FPSO for the Term and upon the terms and conditions stated herein at the FPSO Site. Owner warrants that the FPSO shall be
provisionally classed by the Classification Society on the Delivery Date (with no requirements or recommendations which might impede, restrict or prevent the FPSO commencing and continuing Commercial Operations) in accordance with Clause 3.1, and
that the FPSO, on the Delivery Date, will conform to the Specifications. Charterer, and not the Owner, shall have exclusive possession, control and command of the FPSO during the entire Term from and after the Delivery Date. 
  

 16 

 2.2 Owner’s Services. Owner shall lease and charter the FPSO to Charterer for
the Term and shall perform the Services under the terms and conditions of this Charter. 
  
 2.3 Compliance with Laws. In the performance of this Charter, Owner Group and its Personnel shall comply fully with all applicable laws and regulations and conventions binding on Malaysia and the
Flag State. Any change of the Flag State requested by Owner must first be approved by Charterer in writing, approval of which shall not be unreasonably withheld. In addition to the laws governing this Charter as set forth in Article 31, Owner shall
also comply with the applicable laws of all jurisdictions where the FPSO operates under the provisions of this Charter) in force during the Term. Owner shall in no circumstance be required to change the FPSO’s Flag State against its wishes.

  
 2.4 Work and Specifications/Sailaway
Date. 
  

	 	(i)	FPSO Work. Owner shall in accordance with the Specifications, before the Delivery Date, perform or cause the performance of the FPSO Work and otherwise procure,
design, construct, overhaul, modify, and install certain equipment (including the Additional Equipment), on the FPSO so that the FPSO shall comply with the work and specifications included in the Specifications (subject to the provisions of Clause
2.4(iv)), and all amendments thereto and Variation Orders in respect thereof, and the rules of the Classification Society. Except as otherwise expressly provided in this Charter, all costs, risks and expenses of the FPSO Work and to otherwise
overhaul and modify the FPSO in compliance with the Specifications shall be borne and paid for by Owner. Any modification to the Specifications or the FPSO Work shall be mutually agreed in a Variation Order. 

  

	 	(ii)	Additional Equipment. Owner shall install all Additional Equipment onboard the FPSO. Owner shall pay for all costs and expenses of installing such Additional
Equipment, which costs and expenses shall be included in the FPSO conversion cost. Charterer shall provide Owner with all Additional Equipment in a timely manner in a condition ready to be installed on board the FPSO, and Charterer shall be solely
responsible for the conformity of Additional Equipment with the Specifications and any Downtime or Shutdown costs or expenses related to failure to deliver such equipment timely or in a condition conforming to the Specifications, unless otherwise
set forth in this Charter, the Specifications or any other agreement in writing of the Parties. Owner, however, shall be responsible for the correct installation of the Additional Equipment in compliance with the Specifications and Charterer’s
directions. 

  

	 	(iii)	FPSO Classification. Owner shall obtain the FPSO Classification in a manner which complies with the requirements of Clause 4.11 of this Charter.

  

	 	(iv)	Specifications. Owner and Charterer each agree it has reviewed the Specifications and accepted them. However, the Parties agree that if there is any conflict or
discrepancy between the provisions of Part A of 

  

 17 

  Appendix D (Charterer Specifications) and Part B of
Appendix D (Owner Specifications), Charterer’s Specifications in Part A of Appendix D shall prevail. 
  

	 	(v)	Inspection and Supervision of FPSO Work. Owner shall arrange for inspections and tests to be carried out by Owner Group to supervise the FPSO Work and other work
specified in the Specifications. Charterer may, at its own cost and risk, have as many of Charterer Group Personnel as it deems reasonably necessary attend these inspections and tests on the FPSO (subject to availability of the accommodations on
board the FPSO, if needed at the time of the inspection) or elsewhere. All such inspections and tests shall be performed in compliance with Clause 18.2 of this Charter. 

  

	 	(vi)	Delivery Window. 

  

	 	(a)	Prior to the Sailaway Date, Owner shall provide Charterer with written notices of its final estimated Sailaway Date in accordance with the following notification schedule:

  

	 	(1)	one hundred and eighty (180) Days before the estimated Sailaway Date (incorporating all approved Variation Orders) – the estimated Sailaway Date +/- thirty (30) Days.

  

	 	(2)	ninety (90) Days before the estimated Sailaway Date (incorporating all approved Variation Orders) – the estimated Sailaway Date +/- ten (10) Days. 

  

	 	(3)	sixty (60) Days before the estimated Sailaway Date (incorporating all approved Variation Orders) – estimated Sailaway Date +/- seven (7) Days. 

  

	 	(b)	Not less than five (5) Days prior to the proposed Sailaway Date, Owner shall deliver to Charterer a list of the outstanding work or items on the FPSO, if any, that the
Classification Society has accepted in writing will be completed on the voyage to the FPSO Site or at the FPSO Site or will remain as exceptions to the FPSO Classification until the next annual survey by the Classification Society. Charterer shall
have the right to require that all or part of such outstanding work or items be completed prior to the Ready for Risers Date (except for minor punch list items), and the time required to perform such outstanding work or install such items shall not
be a Permitted Delay. 

  

	 	(vii)	Provisional FPSO Classification. On completion of the inspections and tests in compliance with this Clause 2.4, Owner shall have received from the Classification
Society, prior to the Sailaway Date, provisional classification certificate stating that the FPSO and Additional Equipment are or will be classed with the FPSO Classification (subject to any further inspection or tests to be carried out on location
at the FPSO Site), and is safe and ready to sail or be towed to the FPSO Site all as, certified by a marine warranty surveyor in writing. 

  

 18 

 2.5 Charterer’s Personnel On Board. Charterer shall have the right to have a
reasonable amount of its Personnel acceptable to Owner on board the FPSO during the voyage from the shipyard location to the FPSO Site. Accommodations and meals for such persons shall be at Owner’s cost and expense. 
  
 2.6 FPSO Name. Owner shall consult with Charterer as to the
naming of the FPSO, which name shall be agreed in writing by the Parties and the cost of such naming shall be paid by Owner without reimbursement by Charterer. 
  

2.7 First Oil/Ownership. All Crude Oil produced, loaded, processed, stored or off loaded during FPSO Commissioning prior to the
Delivery Date shall belong to Charterer. 
  
 2.8 Exclusive
Use. During the Term, Charterer shall have exclusive use of the FPSO for the sole purpose of operations as a FPSO pursuant to the provisions of this Charter. 
  
 2.9 Owner Supplied Items. Owner shall provide or pay for or provide and pay for (as the case may be)
all items referred to as being its responsibility under this Charter and in Appendix B. 
  
 ARTICLE 3 
 DELIVERY 
  
 3.1 FPSO Commissioning; Delivery Date. 
  

	 	(i)	Target Ready for Risers Date. Owner shall cause the Ready for Risers Date to occur on or prior to the Target Ready for Risers Date. 

  

	 	(ii)	Pre-Commissioning Activities. On the Ready for Risers Date, Owner shall immediately commence FPSO Pre-Commissioning Activities and when the Owner and the FPSO are
ready to commence FPSO Commissioning, Owner shall deliver to Charterer its Notice of Readiness – FPSO Commissioning. 

  

	 	(iii)	Notice of Readiness-Hydrocarbons. When Charterer is ready to commence FPSO Commissioning and all of its relevant production and Riser Facilities’ equipment is in
place, Charterer shall deliver to Owner its Charterer’s Notice of Readiness – Hydrocarbons, and, upon Owner’s receipt of such notice, the Ready for Hydrocarbons Date shall occur. 

  

	 	(iv)	FPSO Commissioning. As soon as possible after the Ready for Hydrocarbons Date, after successful hook up by the FPSO to all Riser Facilities and consultation with
Charterer, Owner shall conduct FPSO Commissioning tests to demonstrate to Charterer that the FPSO is capable of receiving and processing Crude Oil and processing and injecting water in compliance with the Specifications, for a minimum period equal
to the Run Time (referred to as “FPSO Commissioning”). 

  

 19 

	 	(v)	Delivery Date. The Delivery Date (“Delivery Date”) shall occur on the Successful Run Completion Date, provided the FPSO Commissioning and Run
Time have been successfully completed to Charterer’s satisfaction. On the Delivery Date, Owner shall deliver to Charterer a true copy of the Classification Society’s provisional FPSO Classification certificate for the FPSO, and Owner and
Charterer shall execute the Protocol of Delivery and Acceptance. 

  

	 	(vi)	Delivery Free of Encumbrances. Delivery of the FPSO shall be made by Owner to Charterer, free and clear of all Encumbrances except for Permitted Encumbrances, if any,
on the Delivery Date. Delivery of the FPSO by Owner to Charterer shall be evidenced by execution by the Parties of the Protocol of Delivery and Acceptance on the Delivery Date. The Protocol of Delivery and Acceptance shall be executed in duplicate
originals. 

  

	 	(vii)	Gas Compression Testing. Subject to the provisions of Clause 3.1(viii) below, on the Ready for Hydrocarbons Date, Owner shall commence Gas Compression Testing with a
view to successfully completing such testing to demonstrate to Charterer that the gas handling and gas compression equipment on the FPSO is capable of processing, separating and compressing associated natural gas in compliance with the
Specifications for a minimum period equal to the Gas Compression Run Time. Notwithstanding any other provision to the contrary contained in this Charter, if Owner does not achieve a successful Gas Compression Run Time on or before the last Day of
the Gas Compression Testing Period, the Downtime and Shutdown provisions of Clause 9.2 and the other provisions of this Charter pertaining to termination shall apply. 

  

	 	(viii)	Gas Flaring Approval. Prior to the Ready for Hydrocarbons Date, Owner Group, on behalf of Charterer, shall obtain written approval from Petronas and any other
Government entity or authority required by Malaysian law or regulation, permitting Owner Group and Charterer Group to flare all gas associated with Crude Oil production and processing from and by the FPSO for the Gas Compression Testing Period. If
such written approval is not timely obtained or ceases to be effective at any time during the Gas Compression Testing Period, the Downtime and Shutdown provisions of Clause 9.2, and the termination provisions of this Charter shall also apply.

  

	 	(ix)	Interruption of Run Time. Notwithstanding any provision to the contrary in Clauses 3.1(iv) or 3.1(vii) or elsewhere in this Charter, if either the Run Time or Gas
Compression Run Time is interrupted or adversely affected for any reason due to the Sole Fault of Charterer Group, the period of time during which 72 hours of continuous Run Time or Gas Compression Run Time, as applicable, is interrupted due to such
Sole Fault shall not count against the Run Time or Gas Compression Run Time, as applicable. It is the intention of the Parties that the Run Time or Gas Compression Run Time, as applicable, shall be deemed to be paused during any period when FPSO
Commissioning or Gas Compression Testing, respectively, have been interrupted due to the Sole Fault of Charterer Group and the Run Time or Gas Compression Run Time, as applicable, shall be deemed to 

  

 20 

 continue unabated as of the point in time when (a) in the case of the Run Time, FPSO Commissioning is
again resumed at the flow rates achieved prior to interruption, and (b) in the case of the Gas Compression Run Time, Gas Compression Testing is again resumed at compression rates achieved prior to the interruption. 
  

	 	(x)	Certificate of Final Acceptance. Within a reasonable period of time, after completion of both the FPSO Commissioning and the Gas Compression Testing, Owner shall issue
and deliver to Charterer an executed Certificate of Final Acceptance, prepared in duplicate, which shall be subject to Charterer’s written acceptance, which acceptance shall not be unreasonably withheld. Charterer’s acceptance of the
Certificate of Final Acceptance shall, however, be conditioned upon its satisfaction that (a) the FPSO materially complies with the terms and conditions of this Charter, the FPSO Work and the Specifications, (b) FPSO Commissioning has been
successfully completed, (c) Gas Compression Testing has been completed in accordance with the Specifications to Charterer’s reasonable satisfaction, and (d) the Classification Society has issued its final FPSO Classification certificate for the
FPSO and its operation at the FPSO Site, as required by sub-clause (xi) below. 

  

	 	(xi)	FPSO Classification. Prior to execution of the Certificate of Final Acceptance by the Charterer, Owner shall cause the Classification Society to complete its FPSO
Classification and certify that the FPSO conforms to the technical and safety standards required for final FPSO Classification. The Classification Society shall then issue its final FPSO Classification certificate to Owner and Owner shall deliver a
true copy thereof to Charterer. 

  

	 	(xii)	Charterer’s Acceptance of Certificate of Final Acceptance. Charterer shall, within five (5) Days from the date of its receipt of the Certificate of Final
Acceptance, either accept or reject the Certificate of Final Acceptance, and if Charterer rejects the Certificate of Final Acceptance, it shall state its reasons in writing for withholding the acceptance of such certificate. In such event, Charterer
shall commence discussions with the Owner in an effort to resolve Charterer’s concerns. 

  

	 	(xiii)	Charterer’s Disputes. If the Charterer is unable to resolve its concerns (as per sub-clause (xii))) with the Owner’s Certificate of Final Acceptance within
five (5) Days after it commences discussions with the Owner, Charterer may reduce or shut down production in which event the Downtime and Shutdown provisions of this Charter shall apply. 

  
 3.2 Commencement of Hire. Hire Rate shall begin to
accrue on a day by day basis as of the Ready for Commissioning Date, in the manner set forth in Article 9 and shall begin to be payable on the dates and in the manner set forth in Article 10. 
  
 3.3 Progress Reports. 
  

	 	(i)	Periodic Reports. Owner shall provide Charterer with periodic written reports (“Progress Reports”) advising of progress on the FPSO Work. All
such Progress Reports shall be given in accordance with the provisions of this Clause 3.3 and the Specifications. 

  

 21 

	 	(ii)	Progress Reports in Writing. Each Progress Report shall be in writing in a form from time to time proposed by Owner and approved in writing by Charterer (such approval
not to be unreasonably withheld) and shall include statements of any events or circumstances which may cause delivery of the FPSO to Charterer to be delayed and the estimated period of such delay. Owner shall also deliver to Charterer (within ten
(10) Days after Owner’s receipt thereof) copies of the reports submitted by any Subcontractor to Owner for any repairs, modifications and refurbishments. Progress Reports shall be in addition to the notices provided for under Clause 3.4.

  

	 	(iii)	Progress Deliverables. In addition, Owner shall deliver to Charterer copies of the following documents received by Owner Group in relation to FPSO Work:

  

	 	(a)	promptly upon execution of this Charter, one copy of all Builder or engineering drawings previously received by Owner, and Charterer shall be provided reasonable access to all of
the above project documentation in the possession of Owner; 

  

	 	(b)	all additional drawings as submitted by Builder, including all design and construction drawings related to the FPSO modification; 

  

	 	(c)	documentation of any specification modifications being considered between Owner and Charterer; 

  

	 	(d)	periodic reports by Owner’s Site Representative with all comments on status of the construction program, including photographs of the FPSO and components under construction;

  

	 	(e)	schedules of all key milestones, major tests, and trials; 

  

	 	(f)	reports from all major tests and trials upon their conclusion; 

  

	 	(g)	reports and documentation of any major incidents, unplanned events, or recurring deficiencies during modification and construction; and 

  

	 	(h)	reports on any issues or problems among Owner, Builder, relevant governmental authorities, Crude Oil containment designer, Water Module and any other entities which may affect
technical, performance, operational, or schedule provisions of the FPSO. 

  
 In addition to the foregoing submitted documentation, Charterer shall be afforded access at all reasonable times to all relevant project documentation at the home office and shipyard site office of the Owner and
Builder. 
  

 22 

 3.4 Permitted Delay. Permitted Delays may delay the Schedule; however, Owner shall
use Best Efforts to minimize the impact of Permitted Delays on the Schedule, and shall, by written notice, keep Charterer informed of such. 
  
 3.5 Delayed Ready for Risers Date/Cancellation. 
  

	 	(i)	[Intentionally Left Blank] 

									
	 	 	 	 	 	  	 	  	 
	 (ii)
	 	 Liquidated Damages.  
	  	 	  	 
	 	 	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	  	 

  

	 	(iii)	Set-Off of Liquidated Damages. Any liquidated damages due to Charterer under Clause 3.5(ii) shall be paid by Owner to Charterer on demand. If Owner fails to pay all or
any portion of such liquidated damages within thirty (30) Days after Charterer’s written demand for payment, Charterer may offset any such liquidated amounts owed against any Hire Rate due to Owner as reflected in Owner’s monthly invoices,
and such offsets shall continue until Charterer has been paid for all such liquidated damages in full by Owner. 

  

	 	(iv)	Cancellation for Late Ready for Risers Date. Charterer may cancel this Charter by giving notice thereof to Owner, without making any Early Termination Payment or
payment of Demobilization Costs, if the Ready for Risers Date does not occur for any reason due to Owner’s or Builder’s default by a date which is one hundred-eighty (180) Days after the Target Ready for Risers Date.

  

	 	(v)	Cancellation for Slow Construction Schedule. In addition to Charterer’s rights under Clause 3.5(iv), if, during the period of modification and refurbishment of
the FPSO, Charterer reasonably determines on the basis of a Progress Report or other information available to it that, due to Owner’s or Builder’s default, the Ready for Risers Date will not take place prior to two hundred seventy (270)
Days after the Target Ready for Risers Date (or such later date if Variation Orders which delay the Ready for Risers Date have been agreed under Article 23), then Charterer may cancel this Charter by giving written notice thereof to Owner. Prior to
giving 

  

 23 

 such notice of cancellation, Charterer shall give Owner fourteen (14) Days’ written notice of its
proposed cancellation, during which period, Charterer shall consult with Owner to ascertain whether alternatives acceptable to Charterer (including an acceptable plan to accelerate the FPSO Work Schedule) can be implemented. If Charterer determines
in its reasonable discretion that no such alternatives can be implemented or Owner fails to meet or cooperate with Charterer, Charterer shall be free to exercise its right to cancel. 
  

	 	(vi)	[Intentionally Left Blank] 

  

	 	(vii)	Builder’s Breach. No breach or default of or by Builder shall relieve Owner from any obligation under this Charter, and Owner shall be responsible for any act,
neglect, or omission of Builder as though such act, neglect, or omission were that of Owner under the provisions of this Charter. If the Owner cancels any contract with the Builder or any Subcontractor for the modification and refurbishment of the
FPSO, Owner shall pay to Charterer any amounts, if any, which Owner is entitled to recover from such Builder or Subcontractor under any such contract as a result of said cancellation, minus: (i) amounts required to enable Owner to discharge its
indebtedness to each mortgagee with respect to the FPSO; and (ii) Owner’s fully documented equity expended on the FPSO Work to the date of such contract cancellation. 

  

	 	(viii)	Owner’s Refund of Pre-Payments. In the event of termination of this Charter pursuant to Clauses 3.5(iv) or 3.5(v), in addition to
payment of the liquidated damages amount set forth in Clause 3.5(ii) (with respect to termination under Clause 3.5(iv) only), Owner shall refund to Charterer, within thirty (30) Days after Charterer’s written 

			
	 demand, 
	  	 
	 

	 	    	the Pre-Payments previously paid by Charterer to Owner under Clause 9.3, up to a maximum of ten million dollars ($10,000,000) of such Pre-Payments paid to Owner.”

  
 3.6 Adjustments to Ready for Risers
Date. If the circumstances that give Charterer the right to cancel this Charter under Clause 3.5(iv) arise, Owner may give written notice to Charterer requesting it to not to cancel this Charter and specifying a reasonable new date as the
Target Ready for Risers Date if Charterer elects not to cancel this Charter. Within fifteen (15) Days after receiving such notice, Charterer shall give written notice to Owner advising Owner of Charterer’s decision. Without prejudice to accrued
liquidated damages under Clause 3.5(ii), if Charterer elects to continue this Charter, the new date so specified by Owner and agreed in writing by Charterer shall become the agreed new Target Ready for Risers Date. If the Target Ready for Risers
Date hereunder is delayed by more than fifteen (15) Days after such agreed new Target Ready for Risers Date, Charterer shall again have the right to cancel this Charter. 
  
 3.7 No Commercial Use Prior to Delivery. In no event shall the FPSO perform any voyage (other than sea
trials and the voyage to the FPSO Site) or perform any Commercial Operations (other than in connection with FPSO Commissioning and operations during the Run Time under the provisions of this Charter) prior to the Delivery Date without
Charterer’s prior written consent. 
  

 24 

 3.8 FPSO Site. Prior to the Sailaway Date, and in accordance with the Schedule, (i)
Charterer shall perform and provide to Owner preliminary soil data relative to the FPSO Site, (ii) Owner shall perform and provide to Charterer a detailed report on soil borings tests and geological work at the FPSO Site, as well as selecting,
marking and clearing the sea bottom at the FPSO Site in preparation for the FPSO mooring, (iii) Owner shall have obtained all necessary Malaysian and other applicable permits and licenses required under the provisions of Clause 4.14, or as otherwise
required by applicable law or regulation, for the arrival and installation of the FPSO and Mooring System at the FPSO Site prior to the Ready for Risers Date, and (iv) Owner shall take responsibility for the risk of the FPSO Site conditions in
respect of its obligations in relation to sub-clause 3.8. 
  
 3.9
Deliverables. In addition to the Owner deliverables otherwise required under this Article 3 or elsewhere in this Charter, Owner shall deliver the documents listed below to Charterer and Charterer shall deliver to Owner the documents
listed under Charterer’s name below:  
  

									
	 (i)
	 	 	 	Prior to Contract Date or Reasonable Time Thereafter. At or prior to the Contract Date, Owner shall deliver to Charterer a certified copy of corporate resolutions of
Owner authorizing the execution, delivery and performance of this Charter, the LOI and all transactions contemplated hereby and thereby by Owner. In addition, at or prior to the Contract Date Owner shall have received a duplicate original of the
FPSO Operating and Maintenance
	 	 	 	 	 Agreement duly executed by the Contractor. Within a reasonable time after the Contract Date,
	 	 
	 	 	 	 	 	 	Owner and Charterer shall have executed and delivered the QEL as required by Clause 3.9(x) hereof.

  

	 	(ii)	At or Prior to Ready for Risers Date. At or prior to the Ready for Risers Date, Owner shall deliver to Charterer the documents and deliverables, and shall have
completed the work set forth in Appendix B, Part C, Section A attached hereto. Also, on the Ready for Risers Date all deliverables, documents and actions required to have been delivered
or taken, as the case may be, by either Party prior to such Ready for Risers Date, shall have been delivered or taken, as the case may be. 

  

	 	(iii)	Prior to Ready for Commissioning Date. Prior to the Ready for Commissioning Date, Owner shall deliver to Charterer the deliverables and documents, as appropriate, set
forth in Appendix B, Part C, Section B attached hereto. 

  

	 	(iv)	At or prior to Delivery Date - Documents. At or prior to the Delivery Date, Owner shall deliver to Charterer the Classification Society’s provisional FPSO
Classification certificate. In addition, on the Delivery Date, Owner and Charterer shall execute and deliver to each other the Protocol of Delivery and Acceptance. 

  

	 	(v)	At or Prior to Delivery Date - Actions and other Deliverables. At or prior to the Delivery Date, Owner shall have performed the work and delivered the documents and
deliverables, as appropriate, set forth in Appendix B, Part C, Section C, attached hereto. 

  

 25 

	 	(vi)	Prior to Certificate of Final Acceptance. Prior to the date of execution of the Certificate of Final Acceptance by Charterer, Owner shall: 

  

	 	(a)	complete the activities listed in Appendix B, Part C, Section D, Part 1, and

  

	 	(b)	deliver to Charterer the following documents and items: 

  

	 	(1)	the Classification Society’s final FPSO Classification certificate; 

  

	 	(2)	the documents and deliverables listed in Appendix B, Part C, Section D, Part 2. 

  

	 	(vii)	Charterer’s Deliverables - Contract Date. At or prior to the Contract Date, Charterer shall deliver to Owner the following executed documents:

  

	 	(a)	a certified copy of corporate resolutions of Charterer authorizing the execution, delivery and performance of this Charter and all documents and transactions contemplated hereby by
Charterer; and 

  

	 	(b)	written notice from Charterer advising that Petronas has awarded Charterer the rights to proceed with the FPSO under the terms and conditions of this Charter.

  

	 	(viii)	Owner Guarantee; Charterer Guarantee. Within the time periods set forth in Clauses 4.7 and 5.5, Owner and Charterer shall each deliver to the other Party the Owner
Guarantee and the Charterer Guarantee, respectively. 

  

	 	(ix)	Building Contract. Within a reasonable time after their execution, Charterer shall have the right to request that Owner deliver to Charterer the Building Contract and
all other contracts for the performance of the FPSO Work, and any agreements or change orders amending such Building Contract or other contracts, which contracts or amendments shall not include commercial pricing information, except as otherwise
required by the provisions of Clause 8.4(ii) concerning reimbursable costs. 

									
	 	 	 	 	 	 	 	 	 
	   (x)
	 	 	 	QEL. Pursuant to the provisions and procedures set forth in Clause 4.9, on or before 	 	 	 	, Owner,
	 	 	 	 	Lender and Charterer shall execute and deliver a QEL, in form and substance satisfactory to each such Person.

  
 Notwithstanding any
provision to the contrary contained in this Charter, the actions required to be taken and deliverables and documents required to be delivered on or prior to the dates set forth above in this Clause 3.9 shall be conditions precedent to occurrence of
the dates and milestone events listed therein and such dates and milestone events shall not be deemed to have occurred until the conditions precedent to the applicable date or milestone event have occurred.  
  
 3.10 OCIMF. Owner undertakes to ensure at the Delivery Date
and throughout the Term that the FPSO will comply with the applicable Oil Companies International Marine Forum (OCIMF) standards and guidelines, including, but not limited to, 
  

 26 

 standards and guidelines for marine equipment, manifold compatibility, single point mooring and
offloading arrangements and equipment, ship/shore emergency shut down system, loading and unloading operations and safety. 
  
 ARTICLE 4 
 OWNER’S OBLIGATIONS

  
 4.1 Timely Performance. Owner shall timely
perform or cause to be performed all FPSO Work, the other Services and other work required hereby and by the Specifications and in accordance with the time lines set forth in the Schedule and Appendix B, Part
C. 
  
 4.2 Performance of the Services.
Owner shall provide or perform all of the Services to be provided by Owner under this Charter and as set forth in Owner’s Project Execution Plan in Appendix C, Part A. Unless otherwise expressly
provided in this Charter, the Hire Rate, Pre-Payments and other compensation specifically agreed in this Charter covers and includes all the costs and expenses incurred by Owner to provide or perform all of the Services (including, without
limitation, the FPSO Work and all procurement, design, modifying, refurbishing, repairing and FPSO Commissioning of the FPSO, transporting and mobilizing the FPSO to the FPSO Site mooring the FPSO to the Mooring System and hooking it up to the Fluid
Transfer Lines and Riser Facilities and performing all tests necessary to accomplish the FPSO Commissioning and achieve the Delivery Date and demobilizing the FPSO following the termination of this Charter), contemplated in this Charter and there
shall not be any other payments made by Charterer for Owner’s provision or performance of the Services contemplated by this Charter. The performance of the Services shall always be under the supervision and control of Owner, provided that
Charterer may inspect the performance of the Services from time to time and advise Owner of any substandard performance. Charterer, Government and the Classification Society shall have access at all reasonable times to the FPSO and all places where
the Services are being performed for the purpose of inspecting the performance of the Services. The inspection of any aspect of the performance of the Services, which does not interfere with the Services, shall not excuse Owner from any obligation
hereunder. The failure on the part of Charterer or others to inspect the Services, to witness, test, to discover defects or to fail to reject Services performed or provided by Owner that are not in accordance with this Charter shall not relieve
Owner from liability or obligation under this Charter. 
  
 4.3
Owner’s Personnel. Owner shall provide or shall cause to be provided all Personnel listed or referred to in Owner’s Project Execution Plan contained in Appendix C, Part A with respect
to the performance of the Services to be provided by Owner under this Charter. Owner represents and warrants that such Personnel are and shall at all times be competent and qualified to perform the Services as contemplated by this Charter and will
meet and comply with all applicable Malaysian and other applicable laws and regulations regarding such Personnel. Owner shall not reassign or permit reassignment of Key Personnel without the prior written consent of Charterer, which consent shall
not be unreasonably withheld; provided however, Charterer shall have the continuing right to request upon reasonable cause shown that Owner remove or substitute or cause to be removed or substituted any or all such Key Personnel and other non-Key
Personnel, and upon such request, Owner shall promptly substitute or cause to be substituted such Personnel. All costs of any such removal or substitution 
  

 27 

 prior to the Delivery Date shall be paid by Owner. Key Personnel shall be fluent in both written and
spoken English. The Master and all officers and crew working on board the FPSO shall be trained in accordance with the relevant provisions of the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, 1978
(“STCW”), as amended in 1995, and the STCW Code, including any future amendments, supplements or replacements of such convention or code, and shall hold valid certificates of competence in accordance with the requirements of
the law of the Flag State, and all production personnel shall hold valid certificates of competence in accordance with the requirements of the relevant Classification Society. Such personnel shall be trained in accordance with, and otherwise comply
and have all of the rights and benefits of all applicable Malaysian labor and safety laws. 
  
 4.4 Safety of Owner’s and Charterer’s Personnel. To the extent of Owner’s performance of the FPSO Work and the other Services required under this Charter, Owner, at its expense, shall
provide or shall ensure that all Owner Group Personnel and Charterer Group Personnel are provided with all necessary protective clothing; including, at a minimum, hardhat, gloves, non-slip, steel-toed safety boots, overalls, and ear and eye
protection. In the event any Owner Group Personnel or Charterer Group Personnel are incapacitated through injury or illness, Owner shall, subject to the terms of Article 28, be responsible for providing medical treatment and for such
Personnel’s replacement without undue delay and shall immediately notify Charterer of same. Charterer shall reimburse Owner at cost for all costs and expenses of medical treatment of Charterer’s Personnel. 
  
 4.5 English Communications. All reports and all communications
sent to Charterer shall be in writing and shall be in the English language or, if not in English, shall be accompanied by a quality translation (at Owner’s expense) in English, unless otherwise agreed by Charterer Representative. 
  
 4.6 Performance Data. Owner shall ensure that the FPSO and all
Owner Property and Charterer Property will function without error or interruption relating to the manner in which it captures, stores, uses, manipulates or reports data which includes an indication of or a reference to a Day, month or year or any
component thereof (“Performance Data”). Without limiting the generality of the foregoing, such equipment shall be capable of processing century performance data and leap year performance data. 

			
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 

  
 4.8
[Intentionally Left Blank] 
  
 4.9 Quiet
Enjoyment Letter and Estoppel. Within the time period set forth in Clause 3.9(x), Owner and Charterer shall negotiate and agree to the terms of and shall execute and deliver, the Quiet Enjoyment Letter and Estoppel
(“QEL”), which QEL shall recognize and protect the interests of both the Lender (under any mortgage or 
  

 28 

 other financing instrument in connection with the financing of the FPSO) and the Charterer’s rights
under the Charter (provided that Charterer continues to pay Hire Rate as required by the terms of the Charter). Irrespective of anything else in this Charter, each Party agrees Lenders shall be entitled to enforce their security in respect of the
FPSO if a default occurs under Owner’s loan arrangements, in respect of which Charterer has been given written notice by Owner or Lenders, and Lenders and Charterer do not agree upon a mutually acceptable way to proceed within 180 days of such
default. 
  
 4.10 FPSO Documentation on Board at
Delivery. Owner undertakes that on the Delivery Date, in addition to any actions or deliverables required in Clauses 3.9(iv) and 3.9(v) of this Charter, the FPSO shall have on board such valid vessel and FPSO documentation and classification
certificates as may be required to enable the FPSO to carry out all required operations as an FPSO under this Charter without delay, let, or hindrance. Owner further undertakes that it shall be responsible for any loss, damage, delay or expense
arising from its failure to fulfill its obligations under this Clause 4.10. 
  

			
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 

  
 4.12
Evidence of Authorizations, Approvals, etc.. Owner shall promptly furnish to Charterer at any time upon Charterer’s request such evidence of the authorizations, approvals, actions and/or registrations required of Owner, referred
to in Clause 8.2 or elsewhere in this Charter; 
  
 4.13
Insurance. From and after the Contract Date, Owner shall at the times required during this Charter, be responsible for obtaining all required insurance coverages required pursuant to the provisions of Article 29 or as required by
applicable law. 
  
 4.14 Operating Area Permits.
Owner at Owner’s expense shall, in connection with the performance of the Services, obtain any and all required Classification Society certificates and Malaysian Ministry of Transport Marine Department and other authorizations and permits
required for the FPSO to enter, proceed to, and remain and operate in the Operating Area, to depart from the Operating Area and leave Malaysia and all other agreed areas of FPSO operation after the Delivery Date. 
  

 29 

 ARTICLE 5 
 CHARTERER’S OBLIGATIONS 
  
 5.1 Charterer’s Instructions. The instructions of Charterer shall be consistent with the provisions of this Charter. Such instructions shall be confirmed in writing by Charterer Representative prior to implementation.

  
 5.2 Government Approvals. Subject to the
provisions of Clauses 3.8 and 4.14 concerning Owner’s obligations to obtain certain permits and licenses), Charterer shall obtain and maintain such consents, authorizations, approvals, permits and licenses, including those required under the
PSC (“Government Approvals”), to enable Charterer to perform its obligations under this Charter and Charterer shall save, indemnify, defend, protect and hold harmless Owner Group from and against any cost,
expense, Claim, demand or liability suffered or incurred by Owner as a result of Charterer’s failure to comply with this Clause 5.2. Owner agrees to provide all reasonable assistance and co-operation as may be required to assist
Charterer in obtaining and maintaining the Government Approvals. 
  
 5.3 [Intentionally Left Blank] 
  
 5.4
Charterer Supplied Items. Charterer undertakes to provide and/or pay for (as the case may be) all items referred to as being Charterer’s responsibility under Appendix B, Part B and
Appendix E and as set forth elsewhere in this Charter. 

					
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 .

  
 ARTICLE 6

 TERM OF CHARTER 
  
 6.1 Early Termination. With effect from the Delivery Date, the period of this Charter shall be not less than the Primary Term except where
this Charter is cancelled or terminated earlier in accordance with the terms hereof. 
  
 6.2 Renewal Option. This Charter shall, at the sole option of Charterer by notice in writing to Owner provided at least nine (9) months prior to the expiration of the then current term, continue for one
or more Secondary Terms of three (3) years each up to a maximum of fifteen (15) additional years beyond the Primary Term, unless otherwise earlier terminated in accordance with the provisions of this Charter. Charterer’s failure to notify Owner
within the time period set forth above shall be deemed to be Charterer’s election not to extend this Charter for a Secondary Term. 
  
 6.3 Extended Term. On expiration of the Primary Term and any Secondary Term, the applicable term then ending (whether the Primary Term or
any Secondary Term) shall be automatically extended for an additional period which shall equal the number of Days of Shutdown recorded by the Parties during the respective term of this Charter (i.e., the Primary Term or Secondary Term in
question); subject, however, to a maximum extended period of thirty (30) Days of Shutdown for the Primary Term and a maximum of ten (10) Days of Shutdown for each Secondary Term. 
  

 30 

 6.4 Lay Up. Charterer shall have the option of laying up the FPSO at an agreed safe port or
place for all or any part of the Term, in which case the Hire Rate will continue to be paid less all Rate Savings. Charterer shall reimburse Owner for any direct costs and expenses incurred by it as a result of such lay-up, or in breaking lay-up
upon resumption of Services (including but not limited to all reasonable demobilization, towing and remobilization costs and all other documented costs of Owner incurred as a direct result of such lay up). The lay-up option granted to Charterer may
be exercised one or more times during the Term of this Charter. 
  
 6.5 Relocation of FPSO. Charterer shall have the right to relocate the FPSO at any time to any other location within the territorial waters of Malaysia; provided that such relocation shall not impose additional risk on the
FPSO. Such right of relocation shall be subject to Owner’s approval with regard to the technical and operational limits of the FPSO and the Owner being fully compensated for all documented costs and overheads related to or arising from such
relocation, including demobilization, moving, transportation and remobilization costs, and any required repair, dry dock, insurance, increased maintenance or FPSO upgrade costs agreed in writing by the Parties to be necessary in connection with such
relocation. During any relocation, Charterer shall continue to pay the Hire Rate, unless otherwise agreed by the Parties in a Variation Order. 
  
 6.6 Third Party Crude Oil. Subject to the Variation Order provisions of Article 23, Charterer shall have the right to have the FPSO receive
and process Crude Oil, water, or gas and to store and offload Processed Oil produced by or belonging to Third Parties without any increase in the Hire Rate; provided Charterer shall meet any additional obligations, costs and expenses, if any,
required to receive, process, store, or offload such Third Party Crude Oil, water or gas. 
  
 ARTICLE 7 
 RELATIONSHIP OF THE PARTIES 
  
 7.1 Owner Group Personnel. In the performance of this Charter,
Owner shall maintain, or cause to be maintained, complete and exclusive control over Owner Group Personnel. Owner Personnel shall at all times remain in the employment of Owner or other members of Owner Group. Without prejudice to Article 28
of this Charter, Owner shall assume all responsibilities and obligations and shall save, indemnify, defend, protect and hold harmless Charterer Group from all Claims with regard to such Personnel that may be imposed by virtue of any applicable laws
and regulations imposed by any authority having jurisdiction including, but not limited to visas, permits, wages, benefits or other amounts due to such Personnel. 
  
 7.2 Neither Party May Bind Other Party. Nothing in this Charter shall be construed to appoint or constitute
one Party as a representative or agent of the other, and the Parties shall have no authority to commit or bind the other or any of their respective Affiliates. 
  

7.3 No Claims Against Co-Venturers. Charterer enters into this Charter on its own behalf and for its own benefit. Accordingly, Owner
shall look only to Charterer 
  

 31 

 for the performance of this Charter (Charterer being in all respects fully responsible for such
performance, except to the extent any operations or performance are being performed by the Contractor under the FPSO Operating and Maintenance Agreement), and waives any and all rights to make or pursue any claim against the Co-Venturers with
respect to operations under the Charter or the PSC. 
  
 7.4
Control of FPSO. Subject to the provisions of Article 28, the Master shall during any period when the Services are being performed, be in charge of the FPSO and shall be responsible for, and have ultimate authority in relation to the
safe operation of the FPSO, and the safety and discipline of all persons on board the FPSO. 
  
 7.5 Owner Group Personnel’s Wages. Subject to the provisions of Article 28, Owner shall be responsible for and shall save, indemnify, defend, protect and hold harmless Charterer Group from any
liability or Claim for payment of all wages, salaries, benefits and other remuneration and for payment of all taxes and contributions required by governmental authorities (including any political subdivision thereof), applicable to Owner Group
Personnel, including, without limitation, payment in compensation for an accident, injury or occupational disease. 
  
 7.6 Charterer’s Inspection Rights. Charterer may inspect the FPSO, including engineering work, at any time during performance of the
Services (including, without limitation, construction, modification or conversion, transporting, testing, and FPSO Commissioning and Run Time). Charterer and the Government shall have access at all reasonable times to the FPSO provided that such
access shall not interfere with Owner Group’s performance of the Services. The inspection of any aspect of the FPSO shall not excuse Owner from any obligation hereunder. The failure on the part of Charterer or others to inspect the FPSO, to
witness, test, to discover defects or to fail to reject equipment not in compliance with this Charter shall not relieve Owner from liability or obligation under this Charter. 
  
 7.7 Hydrocarbon Deposits. Owner and any other members of Owner Group, and their respective officers,
directors, employees, agents, subcontractors, successors and assigns shall have no equitable, legal or other interests in any mineral and hydrocarbon deposits which are known or which might be discovered in the Operating Area or by Charterer Group.
If any such Persons assert or attempt to establish or establish any interest in the mineral or hydrocarbon deposits, Owner shall save, indemnify, defend, protect and hold harmless Charterer Group from and against all claims, losses, damages,
costs and expenses (including reasonable attorneys’ fees and other legal costs and expenses) resulting therefrom. 
  
 7.8 Environmental Laws’ Waiver. Owner shall not, without the express written consent of Charterer (which consent shall not be
unreasonably withheld), apply to or petition, or enter into negotiations with, or agree with the Government or any Government representative for a variation of or exemption from laws and regulations concerning safety, health, pollution (air, water,
noise) and environmental protection relating to this Charter. 
  

 32 

 7.9 Control of Crude Oil Production. At all times during the Term, Charterer, through the
Charterer Representative, shall have control of and authority to direct all operations with respect to Crude Oil production from the Wells. 
  
 ARTICLE 8 
 UNDERTAKINGS,
REPRESENTATIONS AND WARRANTIES 
  
 8.1 Owner.
Owner represents and warrants that, as of the Contract Date: (i) it has fully acquainted itself with the information contained in this Charter and the Appendices and knows of no reason why any physical or material aspects would interrupt or delay
the diligent performance of its obligations in accordance with this Charter; and (ii) it is fully acquainted with the nature of the duties it undertakes to perform in this Charter and knows of no reason and anticipates no interruptions, whether by
labor disputes or otherwise, which would prevent it from diligently performing its obligations in accordance with this Charter. 
  
 8.2 Other Representations and Undertakings of Owner. Owner represents, warrants, covenants and undertakes that the following is or will be
(as appropriate) true and correct: 
  

	 	(i)	Contract Date. As of the Contract Date (unless otherwise stated below), 

  

	 	(a)	it is duly organized and validly existing under the laws of Malaysia; 

  

	 	(b)	it has the full power and authority to execute, deliver and perform its obligations under this Charter and to enter into and carry out the transactions contemplated herein and,
except for Permitted Encumbrances, there are no Encumbrances on, over or relating to the FPSO; 

  

	 	(c)	the execution, delivery and performance of this Charter has been duly authorized, executed and delivered, this Charter constitutes a valid and binding obligation of Owner,
enforceable according to its terms, and such execution, delivery and performance is not in breach, conflict with or in contravention of applicable law, rule or regulation or court order or decree or of Owner’s corporate organizational documents
or any mortgage, indenture, agreement or undertaking to which Owner is a party or by which it is bound or which otherwise affects or covers the FPSO, nor does such execution, delivery or performance require consents under any other agreement to
which Owner is party or is bound; 

  

	 	(d)	[Intentionally Left Blank] 

  

	 	(e)	there are no Third Party rights that limit or restrict the ability of Owner to perform its obligations under this Charter and all permits, licenses, and other rights that are the
obligation of Owner in connection with this Charter have been obtained; 

  

 33 

	 	(f)	there are no material actions, suits or proceedings pending, or to the knowledge of Owner, threatened against or affecting it or the FPSO that would, if determined adversely
thereto, impair the ability of Owner to perform its obligations under this Charter; 

  

	 	(g)	there are no petitions filed or threatened to be filed, orders entered or resolutions passed for the winding up, receivership, bankruptcy or reorganization of Owner, Owner has not
made an assignment for the benefit of creditors, nor has a receiver or administrator been, about to be or threatened to be, appointed to its assets; 

  

	 	(h)	there are no defaults or events of default existing or potentially likely to exist by Owner with regard to this Charter; 

  

	 	(i)	there is no information known to Owner which would cause the information disclosed by Owner pursuant to this Charter in any provided documents to be materially incorrect or
misleading; 

  

	 	(j)	Owner is, the owner of all right, title and interest in and to the FPSO, free and clear of all Encumbrances other than Permitted Encumbrances; 

  

	 	(k)	Owner has and will have the necessary expertise and is ready and able to perform its obligations hereunder in accordance with the terms of this Charter; 

  

	 	(l)	the use of the FPSO as contemplated hereunder will comply with all applicable safety, health and environmental laws and regulations; and 

  

	 	(m)	the Specifications, the FPSO Work and the other Services to be performed by Owner hereunder comply with all applicable safety, health and environmental laws and regulations;

  

	 	(ii)	Delivery Date Certifications. On the Delivery Date, by delivering possession and use of the FPSO to the Charterer, Owner will be deemed to have been restated and
certified to the Charterer that: 

  

	 	(a)	the FPSO is (a) classed by the Classification Society in compliance with its FPSO Classification, (b) designed, 

			
	 constructed, converted and engineered in accordance with the Specifications    
	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	(c) tight, staunch, strong and in

	 	    	all respects seaworthy with Crude Oil production, processing, storage and offloading systems necessary for the safe and efficient operation of the FPSO, with its machinery, boilers
and hull in such a state as to permit at all times the safe and efficient use of the FPSO at the FPSO Site, and (d) has a provisional FPSO Classification from the Classification Society; 

  

 34 

	 	(b)	the FPSO has all required certificates of financial responsibility and other certificates concerning pollution required by applicable law; and 

  

	 	(c)	all representations, warranties, covenants and undertakings set forth in Clause 8.2(i) above are true and correct and will be performed, as appropriate, as of such Delivery Date.

  

	 	(iii)	Delivery Date Representations. Prior to the Delivery Date and throughout the term of the Charter, 

  

	 	(a)	this Charter, will remain, duly authorized, executed and delivered by Owner and will constitute a valid and binding obligation of Owner, enforceable against it in accordance with
its terms; 

  

	 	(b)	(1) except as otherwise permitted by this Charter, Owner agrees (by way of an undertaking and not by representation of a fact) that it will not transfer, sell or otherwise dispose
of the FPSO or any parts or portion thereof or assign the Building Contract, (2) will not change the Flag State without Charterer’s prior written consent, and (3) will not change its jurisdiction of incorporation or organization, merge or
otherwise combine with another entity or transfer its title or rights in the FPSO or all or substantially all of its assets to another entity without Charterer’s prior written consent; provided however that notwithstanding anything to the
contrary contained in this Charter, Charterer shall not withhold consent to a proposed transfer of the FPSO or assignment of this Charter and/or the Building Contract, and any rights hereunder or thereunder, by Owner if: (A) such transfer or
assignment is to (x) a Lender or is required as security to a mortgagee and in connection with the financing of the FPSO or (y) an Affiliate of Owner financially and technically capable of performing the Services and satisfactory to Charterer; (B)
the Owner Guarantee remains in full force and effect in accordance with its terms, such that the guarantee of Owner’s obligations under this Charter in favor of Charterer is not adversely affected by such transfer or assignment; and (C) the
Charterer, Owner, any acceptable Owner Affiliate, and Lender (if any) have executed a Novation agreement satisfactory to Charterer, pursuant to the provisions of Article 24 of this Charter, whereby such permitted transferee takes assignment and
novation of this Charter and/or Building Contract; provided however that Owner shall ensure no assignment or transfer to any Lender, Affiliate or other permitted transferee shall negatively impact the accounting treatment of this Charter as an
“operating lease” pursuant to applicable accounting principles governing such Lender, Affiliate or other permitted transferee hereto; and 

  

	 	(c)	Owner shall continue to have full power and authority to perform all of its obligations under this Charter and to carry out all of the transactions contemplated below.

  

 35 

 8.3 Charterer Representations and Warranties. Charterer represents and warrants that the
following is and will be, as appropriate, be true and correct: 
  

	 	(i)	Contract Date. As of the Contract Date: 

  

	 	(a)	it is a corporation duly organized and validly existing under the laws of The Bahamas with a branch office in Malaysia; 

  

	 	(b)	it has, the full power and authority to execute, deliver and perform its obligations under this Charter and to enter into and carry out the transactions contemplated herein;

  

	 	(c)	the execution, delivery and performance of this Charter is not be in breach, conflict or contravention of applicable law, rule or regulation or court order or decree or
Charterer’s Memorandum and Articles of Association, or any mortgage, indenture, agreement or undertaking to which Charterer is a party or by which it is bound, nor does it require consents (that have not been obtained) under any other agreement
to which Charterer is party or bound and this Charter has, by proper corporate action, been duly authorized, executed and delivered by Charterer and all steps necessary have been taken to constitute this Charter a valid and binding obligation of
Charterer; 

  

	 	(d)	the Charterer Group is entitled to develop, produce and process Crude Oil, inject water and export Processed Oil from the FPSO Site by use of the FPSO; 

  

	 	(e)	there are no material actions, suits or proceedings pending, or to the knowledge of Charterer threatened, against or affecting it that would, if determined adversely thereto,
substantially impair the ability of Charterer to perform its obligations under this Charter; 

  

	 	(f)	subject to the provisions of the PSC, there are no Third Party rights that limit or restrict the ability of Charterer to perform its obligations under this Charter and all permits,
licenses, and other rights that are obligation of Charterer in connection with this Charter have been or will be obtained; 

  

	 	(g)	there are no petitions filed or threatened to be filed, orders entered or resolutions passed for the winding up or bankruptcy of Charterer, Charterer has not made an assignment for
the benefit of creditors, nor, to its knowledge, has a receiver or administrator been, about to be or threatened to be, appointed to its assets; 

  

	 	(h)	there are no material defaults or events of default by Charterer existing or potentially likely to exist with regard to this Charter; and 

  

 36 

	 	(i)	there is no information known to Charterer which would cause the information disclosed by Charterer pursuant to this Charter in any provided documents to be materially incorrect or
misleading. 

  

	 	(ii)	Delivery Date. On the Delivery Date, by taking delivery of use and possession of the FPSO, Charterer will be deemed to have restated and certified to Owner that all of
its representations and warranties in Clause 8.3(i) above are true and correct. 

  
 8.4 FPSO Building, Refurbishment and Conversion Contract. 
  

	 	(i)	Charterer’s Right to Review Documents. Charterer shall have the right at any time, and from time to time, at its election, to review all specifications, diagrams,
charts, plans and drawings for the FPSO. Charterer shall also have the right to participate as an observer in all meetings between Owner (and its Affiliates) and Builder, or other representative, of the FPSO and subcontractors and suppliers of Owner
and Builder related to technical issues and changes to the Specifications. In addition, Charterer shall have the right to receive promptly copies of drafts of the proposed Variation Orders and any correspondence relating thereto and to the technical
issues. 

  

	 	(ii)	Owner to Provide Drawings, Etc. Owner shall provide Charterer with all design drawings and the Builder’s Documents Register, if requested by Charterer. Charterer
agrees that (except with respect to policies, contracts, purchase orders and documents relating to Insurance Reimbursables, Demobilization Costs, Variation Orders, upfront start-up costs in Clause 9.3(i)(b), upfront budgeted estimated costs in
Clause 9.3(i)(c), chemicals, lubes and first fill reimbursables under Clause 9.3(i)(f) and any other reimbursable costs under this Charter), copies of any documents or contracts it receives from Owner under the Charter shall have all Subcontractor
price information deleted. Such design drawings and Builder’s Documents Register, once delivered to and approved in writing by Charterer, shall become part of the Specifications and the Building Contract. Charterer shall have fourteen (14)
calendar Days after receipt from Owner of the drawings and Builder’s Documents Register to notify Owner in writing as to whether Charterer approves or rejects the drawings and Builder’s Documents Register or needs reasonable additional
time to review and comment on same. Charterer shall include with its notice of rejection detailed comments explaining the basis for rejection, whereupon Owner shall cause Builder to consult with Charterer and resolve the issues leading to rejection
of the design drawings and/or the Builder’s Documents Register. Charterer’s approval of the design drawings and Builder’s Documents Register will be deemed to be given if Charterer does not notify Owner in writing within the fourteen
(14) calendar Day period described above. 

  

	 	(iii)	FPSO Design and Construction. Owner represents and warrants that the FPSO shall be designed, constructed, converted and engineered in accordance with the
Specifications, and maintained by Contractor in such a manner which shall enable the FPSO to remain on station fully classified by the Classification Society and capable of conducting Commercial Operations at the FPSO Site for twenty (20) years
without any need for drydocking or Offsite Repair Work. 

  

 37 

	 	(iv)	Affiliate Novation. If any of the FPSO Work, Services or Building Contract and this Charter have been novated to an Affiliate in connection with a permitted transfer
under Clause 8.2(iii)(b): 

  

	 	(a)	Owner shall procure that no material right of the Charterer under the Building Contract or any contract or subcontract for the FPSO Work or Services is waived; and

  

	 	(b)	unless this Charter has been terminated, Owner shall procure that the Building Contract is not, and no contracts or subcontracts for the FPSO Work or Services are, by reason of this
novation, terminated. 

  
 ARTICLE 9

 COMPENSATION 
  
 9.1 Hire Rate Accrual. 
  

	 	(i)	Accrual Commencement. Subject to Clauses 9.2 and 10.1, the Hire Rate (at the applicable rate) and all other compensation due under this Charter, pursuant to and in the
amounts set forth in Appendix B, Part A, Section 1, shall commence accruing, in the manner set forth in this Clause 9.1, each Day on and from the Ready for Commissioning Date to the end
of the Term, except as otherwise provided in this Charter, and shall be payable on the dates and in the manner set forth in Article 10. 

  

	 	(ii)	Daily Accrued Reduced Hire Rate. Commencing on the Ready for Commissioning Date and daily thereafter during the First Reduced Hire Rate Period, Hire Rate shall accrue
(but not be paid) at the Daily Accrued Reduced Hire Rate. 

  

	 	(iii)	Daily Accrued Full Hire Rate. Commencing on the Full Hire Rate Accrual Date and daily thereafter during the Full Hire Rate Accrual Period, Hire Rate shall accrue (but
not be paid) at the Daily Accrued Full Hire Rate. 

  

	 	(iv)	Accrued Hire Rate. All of the above Accrued Hire Rate shall commence being paid by Charterer on the Hire Rate Payment Commencement Date, pursuant to the provisions of
Clause 10.1. 

  

	 	(v)	Second Reduced Hire Rate Period. Commencing on the Ready for Hydrocarbons Date and daily thereafter during the Second Reduced Hire Rate Period, Hire Rate shall again
accrue (but not be paid) at the Daily Accrued Reduced Hire Rate. During the Second Reduced Hire Rate Period no Hire Rate or Accrued Hire Rate shall be paid pursuant to the provisions of Clause 10.1(i)(b). 

  

 38 

 9.2 Hire Rate Adjustment; Downtime/Shutdown; Annual Maintenance Allowance. 
  

	 	(i)	Downtime Calculation. After the Delivery Date and throughout the Term of this Charter, the Hire Rate shall be subject to adjustment for all Downtime (up or down) as follows:

  

					
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 

  

																					
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 

  

	 	(b)	Whenever a Downtime event occurs outside of the Annual Maintenance Allowance, Monthly Downtime Percentage shall be calculated as the sum of the actual hours (or part thereof)
recorded in each preceding calendar month during which there was Downtime as follows: 

  

	 	(1)	Daily Downtime (hours) = 

  

					
	 	  	 (Full Flow Rate – Actual Flow Rate)        x        24(hours)
	 	 
	 	  	                     Full Flow
Rate
	 	 
			
	 	  	 where
	 	 

  
 “Full Flow
Rate” and “Actual Flow Rate” have the meanings given to them in Clause 9.2(ii) below. 
  

	 	(2)	Monthly Downtime Percentage shall equal the sum of daily Downtime (hours), calculated as per (1) above, during the month in question, divided by the total number of hours in the
month in question. 

  

 39 

	 	(c)	The above formula will also apply for any period of time following a Shutdown Period during which the Wells are being brought back on stream until Full Flow Rate has once more been
achieved. 

  

	 	(ii)	Full Flow Rate. For the purposes of this Charter, “Full Flow Rate” means the average of the oil production flow rate for the most recent three
(3) Days where no Downtime has been recorded and “Actual Flow Rate” means the actual oil production flow rate recorded during the Day on which Downtime occurred. 

  

	 	(iii)	Water Injection or Gas Compression Reduction. Any time period during which water injection or gas compression is reduced, restricted or is not possible for any reason,
and such reduction, restriction or failure causes Charterer (at its option) to reduce or restrict Crude Oil production, shall be counted as Downtime. 

  

	 	(iv)	Shutdown. Any Shutdown shall not count as Downtime for the purpose of compensation under this Clause 9.2 or for any other purpose under this Charter but shall give
rise to the Hire Rate Reductions set forth in Clause 9.2(xi). 

  

	 	(v)	Ability to Offload Oil. If the ability of the FPSO to offload Processed Oil shall be reduced or restricted, such inability to offload shall not be deemed to constitute
Downtime hereunder except to the extent that such inability to offload shall reduce, restrict, or suspend Crude Oil production flow to the FPSO. 

  

	 	(vi)	Daily Production Report. All Downtime shall be reported by the FPSO’s operation manager in the daily production report, which shall be co-signed by each of the
Master under the FPSO Operating and Maintenance Agreement and the Charterer Representative onboard the FPSO. 

  

	 	(vii)	Cessation of O&M Services. If Charterer requires cessation of all or part of the O&M Services in accordance with the terms of Clause 4.16 of the FPSO Operating
and Maintenance Agreement (including those of Attachment F thereof), and such cessation causes the reduction, restriction or suspension of Crude Oil production, such cessation of O&M Services shall count as Downtime hereunder.

  

	 	(viii)	Prohibited Gas Flaring. If Charterer is unable to compress associated gas and is forced to flare associated gas in excess of guidelines established by Petronas and
such inability causes a cessation of production, the Shutdown provisions of this Charter shall apply. 

  

	 	(ix)	[Intentionally Left Blank] 

  

	 	(x)	Resumption of Production. All time required to resume Full Flow Rate after a Shutdown shall be considered Downtime. 

  

							
	 	  	 	  	 	  	 
	 (xi)
	  	 	  	 Shutdown Period Hire Rate.  	  	 
	 	  	 

  

 40 

			
	 
	 	 	 
	 	 	 
	 	 	.

  

	 	(xii)	Annual Maintenance Allowance. For the purposes of this Charter, all Annual Maintenance Allowance hours not utilized by Owner in any contract year may be carried over
by Owner to any following contract year of the Primary Term or any Secondary Term (but not beyond the applicable Term for which such hours were allocated) for use as Annual Maintenance Allowance or Downtime and Shutdown calculations during the
applicable Term, all in a manner provided for in Clause 5.4(v) of the FPSO Operating and Maintenance Agreement. The Owner may allocate the Annual Maintenance Allowance over the course of the Primary Term and any Secondary Term in any manner it
reasonably determines, subject to Owner’s and Contractor’ s obligations to maintain and operate the FPSO and its equipment in a manner and condition set forth under Owner’s warranties and obligations under this Charter and
Contractor’s obligations under the FPSO Operating and Maintenance Agreement. With respect to Owner’s allocation of Annual Maintenance Allowance hours, Owner shall present to Charterer for its approval an Annual Maintenance Allowance
Schedule with respect to the immediately following contract year at the times and in the manner set forth in the FPSO Operating and Maintenance Agreement. Each Annual Maintenance Allowance Schedule is subject to approval by Charterer in accordance
with the provisions of Clause 5.4(ii) of the FPSO Operating and Maintenance Agreement. 

  

	 	(xiii)	Annual Maintenance Allowance Hours Cash Out. At the end of the Primary Term or any Secondary Term, Owner may, at its option, upon written notice delivered to Charterer
at least thirty (30) Business Days prior to the end of any such Term, request Charterer to pay Owner in cash, for all or any part of Annual Maintenance Allowance accumulated but unused by Owner during such Term. Such cash amount shall be equal to
the quotient obtained by applying the following formula: 

  
  

													
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 
	 
	 	  	 	  	 

  
 Provided Owner
has timely elected the above cash in option, such cash payment amount shall be invoiced to Charterer by Owner on the last Business Day of the Primary Term or any Secondary Term, as applicable, and shall be paid by Charterer within thirty (30) Days
after receipt by Charterer of Owner’s invoice. 
  

 41 

																			
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

																									
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	 	 	 	 	 	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	 	 	 	 	 	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	 	 	 	 	 	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	 	 	 	 	 	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	 	 	 	 	 	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	 	 	 	 	 	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	 	 	 	 	 	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	 	 	 	 	 	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	 	 	 	 	 	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	 	 	 	 	 	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	 	 	 	 	 	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	 	 	 	 	 	 	  	 

  
 The actual
costs of all such budgeted amounts will also be billed to and paid by Charterer on a monthly in arrears basis against presentation by Owner of detailed invoices and back up documents for such costs and shall be certified as due by Charterer
Representative. Although such reimbursable costs are estimates only, Owner agrees to use reasonable efforts to ensure that it does not exceed the above total agreed budgeted amounts. 
  

 42 

	 	(d)	Payments. All payments for any of the above stated amounts shall be paid by Charterer within thirty (30) Days after receipt by Charterer of Owner’s detailed
invoice together with a certificate executed by Owner’s Site Representative and Charterer Representative that such amounts are due. 

									
	 	 	 	 	 	  	 	 	 
	 (e)
	 	Soil Investigations.    	  	 	 	 
	 	 	 	 	 	  	 	 	 
	 	 	 	 	 	  	 	 	 
	 	 	 	 	 	  	 	 	 
	 	 	 	 	 	  	 	 	 
	 	 	 	 	 	  	 	 	 
	 	 	 	 	 	  	 	 	:        

  

	 	(1)	Charterer has exercised this option by notice in writing to Owner within forty-five (45) days after the effective date of the LOI; 

  

	 	(2)	The soil investigation is based on the Owner’s required specifications; 

  

	 	(3)	The Owner (A) reviews and agrees the field survey scope of work, (B) participates in and oversees the soil field survey scope of work; and (C) Owner is responsible for ensuring that
the data required to adequately design and install the mooring system is obtained, provided that Charterer complies with this sub-clause 9.3(i)(e) and causes any contractor hired under this Section to follow the reasonable requests of Owner in
relation to the performance of the work; and 

  

	 	(4)	The soil investigation is executed in time to support the FPSO Schedule. 

  

	 	(f)	Reimbursement of Chemicals, Lubes, First Fill. Owner will reimburse Charterer for all first fill items paid for by Charterer in sub-clause (c) above which remain
unused by Owner on the Successful Run Commencement Date. 

  

	 	(g)	Fixed Maximum Amounts. Owner and Charterer agree that the Pre-Payments in Clause 9.3(i)(a) above and the upfront start-up costs in Clause 9.3(i)(b) above are fixed
maximum amounts to be paid by Charterer with respect to items set forth in said sub-clauses (a) and (b). Absent an agreed Variation Order, no further payments by Charterer to Owner will be made with respect to Pre-Payments and start-up cost needs of
Owner apart from the Reimbursable Costs referred to in Clause 9.3 (i) (c), and any applicable mark-up in accordance with Appendix B. 

  

 43 

	 	(ii)	Intentionally Left Blank 

  
 9.4 Insurance Costs and Reimbursables. Prior to the Delivery Date, Owner shall be responsible, at its own non-reimbursable cost and expense,
for obtaining and maintaining in place all insurance policies and coverages required pursuant to the provisions of Article 29 of this Charter. On and after the Delivery Date, Owner shall also be required to obtain and maintain in place all insurance
policies and coverages required pursuant to Article 29, but Charterer shall reimburse Owner, at documented cost, for the cost of Insurance Reimbursables in connection with all insurance policies or coverages Owner purchases or obtains after the
Delivery Date pursuant to the provisions of Article 29 of this Charter. Except as set forth below, in no event will Charterer reimburse Owner for any of the following insurances: 
  

													
	 	 	 	 	 	  	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	 	 	  	 	  	 
	 	 	(c)	 	 	  	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	 	.	  	 	  	 

  
 ARTICLE 10

 MANNER OF PAYMENT/SHUTDOWN 
  
 10.1 Date and Manner; Accrued Hire Rate; Shutdown. 
  

	 	(i)	Payment of Hire Rate and Accrued Hire Rate. Charterer shall commence paying Hire Rate and Accrued Hire Rate on the Hire Rate Payment Commencement Date in the following
manner: 

  

	 	(a)	Early Payment Commencement Date. 

  

	 	(1)	If, due to the Sole Fault of Charterer, the Ready for Hydrocarbons Date does not occur on or prior to the sixtieth (60th) Day after the Full Hire Rate Accrual Date, Charterer shall commence paying the Hire Rate and Accrued Hire Rate on the Early Payment Commencement Date.
Otherwise, Hire Rate and Accrued Hire Rate shall commence being paid on the Delivery Date. 

  

 44 

	 	(2)	If the Hire Rate Payment Commencement Date begins on the Early Payment Commencement Date, Owner and Charterer shall calculate the number of Days during each of the First Reduced
Hire Rate Period and the Full Hire Rate Accrual Period for the purpose of determining the number of Days for which the Accrued Hire Rate is payable. Then, on the Hire Rate Payment Commencement Date, Owner shall invoice, and Charterer shall pay
within the time period provided in this Charter, the following: 

  

	 	(A)	The per Day U.S. dollar amount of Daily Accrued Reduced Hire Rate multiplied by the number of Days from the Early Payment Commencement Date to the last Day of the calendar month in
which the Early Payment Commencement Date occurs; 

  

	 	(B)	The per Day U.S. dollar amount of the Daily Accrued Full Hire Rate multiplied by the number of Days from the Early Payment Commencement Date to the last Day of the calendar month in
which the Early Payment Commencement Date occurs; and 

  

	 	(C)	All daily Hire Rate which shall be payable in advance by Charterer from the Early Payment Commencement Date to the last Day of the calendar month during which the Early Payment
Commencement Date occurs. 

  

	 	(3)	Subject to the provisions of Clause 10.1(i)(b) below, on the first (1st) Business Day of each calendar month following the Early Payment Commencement Date, the Owner shall invoice Charterer, and Charterer shall pay, within the time period provided in this Charter, the following:

  

	 	(A)	The per Day U.S. dollar amount of all Daily Accrued Reduced Hire Rate, which remains unpaid on such Day, multiplied by the number of Days which will occur in such calendar month.

  

	 	(B)	The per Day U.S. dollar amount of all Daily Accrued Full Hire Rate, which remains unpaid on such Day, multiplied by the number of Days which will occur in such calendar month.

  

	 	(C)	All daily Hire Rate due in advance by Charterer for such calendar month. 

  

 45 

	 	(b)	Pause in Payments. If the Hire Rate Payment Commencement Date occurs on the Early Payment Commencement Date, on the Ready for Hydrocarbons Date, Charterer shall cease
paying all Accrued Hire Rate and shall, instead, once more commence accruing Reduced Accrued Hire Rate for each Day during the Second Reduced Hire Rate Period. Charterer shall thereafter only commence paying Hire Rate once more on the Delivery Date.

  

	 	(c)	Delivery Date Payments. 

  

	 	(1)	On the Delivery Date, Charterer shall commence paying (or if the Early Payment Commencement Date has occurred, shall recommence paying, if applicable) full Hire Rate and all unpaid
Accrued Hire Rate retroactively with effect from the Successful Run Commencement Date. Thereafter, Charterer shall, subject to the Downtime and Shutdown and the provisions of Clause 10.1(ii) of this Charter, continue to pay the full Hire Rate,
monthly in advance, throughout the remainder of the Term. On the Delivery Date, Owner shall invoice, and Charterer shall pay, within the time period set forth in this Charter, on a per Day basis the following: 

  

	 	(A)	The U.S. dollar amount obtained by multiplying (I) the sum of (x) Daily Accrued Reduced Hire Rate which accrued on a Day by Day basis during both the First Reduced
Hire Rate Period (if any daily amounts for such period remain unpaid), and the Second Reduced Hire Rate Period plus (y) Daily Accrued Full Hire Rate (if any such daily amounts for such period remain unpaid), by (II) the number of Days from
the Delivery Date to the last Day of the calendar month in which the Delivery Date occurs; and 

  

	 	(B)	All daily Hire Rate due in advance by Charterer for such immediately following calendar month. 

  

	 	(d)	Post-Delivery Date Payments. Thereafter, Charterer shall continue to pay each month (A) on a Day by Day basis all Accrued Hire Rate which remains unpaid until the
total amount of such all Accrued Hire Rate has been paid in full and (B) all Hire Rate due on a monthly basis for the rest of the Term. 

  

	 	(e)	Invoicing. On or prior to the first (1st) Business Day of each month following the Hire Rate Payment Commencement Date, Owner shall deliver to Charterer an invoice for all Hire Rate due in advance for such month. Charterer shall, unless otherwise provided in this Charter,
pay all of Owner’s invoices for Hire Rate (at the applicable rate) on or prior to the tenth (10th) Day of each
month, provided that if Owner’s invoice is not received by Charterer on or before the first (1st) Business Day
of any month, 

  

 46 

 then Charterer shall make payment within ten (10) Days after its receipt of such invoice. For all other
payments and reimbursables, if any, due by Charterer to Owner under this Charter, Owner shall at the end of each month prepare and send to Charterer an invoice for the amounts payable (or credits due to Downtime reduction or Shutdown) by Charterer
for such month. Charterer shall make payment with regard to all such other payments, in arrears, within ten (10) Days after receipt of the appropriate invoice (subject to Clause 10.1(ii), (iii) and (iv) below). Charterer shall have the right to
withhold from payments to be made to Owner all amounts that it in good faith disputes, provided that Charterer, no later than five (5) Days prior to withholding any amounts due to Owner, shall notify Owner that it is disputing an invoice and shall
give detailed reasons for its dispute. Prior to Owner submitting its first invoice for payment hereunder, Owner shall furnish documentary evidence to Charterer that Owner is duly authorized by Bank Negara Malaysia in Kuala Lumpur to accept payment
in U.S. dollars. All payments hereunder shall be made in immediately available freely transferable U.S. dollars, without discount, setoff or deduction of any kind, except as expressly permitted by this Charter, by inter-bank transfer, free of bank
charges, to such bank or financial institution as Owner shall designate, in writing, for credit to the account of Owner. 
  

	 	(f)	Incomplete Gas Compression Testing. Notwithstanding anything to the contrary contained in this Clause 10.1 or elsewhere in this Charter, if Owner has not successfully
completed Gas Compression Testing and achieved the Gas Compression Run Time, pursuant to the provisions of Clause 3.1(vii), on or before the last Day of the Gas Compression Testing Period, the Downtime and Shutdown provisions of Clause 9.2 shall
immediately apply. 

  

	 	(g)	No Duplicate Payments. Notwithstanding any other provision of this Clause 10.1 or any other provision of this Charter to the contrary, in no event shall the payment
provisions of this Clause 10.1 (or the payment provisions of any other Clause of this Charter) require or obligate Charterer to pay to Owner duplicate payments of Accrued Hire Rate, Hire Rate or any other amounts due Owner by Charterer hereunder.

  

	 	(ii)	Downtime and Shutdown Adjustments. All adjustments or deductions due to Downtime, Shutdown or other causes as provided for in Clause 9.2 or elsewhere in this Charter
shall be charged or credited by Owner to Charterer on the invoice for the first (1st) month which occurs following the month in which the Downtime or Shutdown occurred. All such invoices shall state, in reasonable detail, the cause and duration of
all such Downtime or Shutdown. Charterer may offset against any Hire Rate due, any and all (a) liquidated damages due under Clause 3.5(ii), subject to the provisions of Clause 3.5(iii), (b) disputed compensation amounts (provided it complies with
the 5-Day notice provision in Clause 10.1(i)(e) above), (c) 

  

 47 

 Downtime, Shutdown or Force Majeure deductions, and (d) amounts, if any, due by Owner to Charterer under
the terms of this Charter and not paid by Owner to Charterer within thirty (30) Days after their due date, unless such reduced amounts in (c) and (d) above of this sub-clause (ii) are already reflected as a discount on Owner’s invoices.

  

	 	(iii)	Payments in U.S. Dollars; Conversion. The Hire Rate and all other payments due under this Charter are stated in US dollars and in the event that Owner is not
authorized to accept U.S. dollars, or Charterer cannot for any period of time make any such payment in U.S. dollars (by Government intervention or law, rule or regulation or order of any court or tribunal of competent jurisdiction), then payment
shall be made in Malaysia Ringgits. For the purpose of converting U.S. dollars to enable payment to be made in Malaysia Ringgit, during the Primary Term the rate of exchange to be used shall be the average of the selling and buying rates of
Telegraphic Transfer published in the opening of business rate sheet by Malayan Banking Berhad Kuala Lumpur on the due date for payment. If such Day falls on a Day where the rate is not available, the rate quoted immediately before such Day shall be
used. During any Secondary Term, the exchange rate shall be the Malaysian Ringgit amount equal to the selling rate in Malaysia of the U.S. Dollar, as published in said business rate sheet on the due date, discounted by the lesser of (a) the average
of the difference between the buying and selling rates at the date of exchange, or (b) the average of the difference between the buying and selling rates on December 1, 2004 as reported by Bank Negara.  

  

							
	 	 	 	  	 	  	 
	 	 	Excess Shutdown; Reduced Hire Rate.    	  	 	  	 
	 	 	 	  	 	  	 
	 	 	 	  	 	  	 
	 	 	 	  	 	  	 
	 	 	 	  	 	  	 
	 	 	 	  	 	  	 
	 	 	 	  	 	  	 
	 	 	 	  	 	  	 
	 	 	 	  	 	  	 
	 	 	 	  	 	  	 

  
 10.2
Payment Period. Except as otherwise provided herein, the Hire Rate shall become payable as of the Delivery Date and cease to be payable as of the Demobilization Date or date of termination, as applicable, pursuant to the express
provisions of this Charter, or as otherwise provided herein. Any Hire Rate paid in advance by Charterer representing compensation for a period beyond the Demobilization Date or date of termination shall be refunded by Owner within thirty (30) Days
after the Demobilization Date or effective date of termination, as applicable. 
  
 10.3 Late Payments. Without prejudice to Owner’s rights under Clause 17.4, if Charterer fails to make payment of any undisputed amount owing within thirty (30) 
  

 48 

 Days of Charterer’s receipt of an invoice, then all money due to Owner shall accrue interest, at the
Agreed Interest Rate, from the due date of payment to the date of receipt by Owner. If Charterer fails to pay any such undisputed amount by the end of such thirty (30) Day period, Owner may give Charterer thirty (30) Days written notice to pay such
undisputed amount. If Charterer still fails to pay same within such further thirty (30) Day period, Owner shall thereafter have the right terminate this Charter pursuant to the provisions of Clause 17.4(i) and pursue any remedies to which it is
entitled under applicable law or under the provisions of this Charter. 
  
 10.4 No Waiver as to Payments. Payment by Charterer shall not prejudice its rights in the future to dispute any part of any invoice including any invoice previously paid. In the event of a dispute over any part of an invoice,
Charterer shall nevertheless pay the undisputed portion and shall not delay payment of any such undisputed portion of the invoice. 
  
 10.5 Invoice Disputes. Any unresolved dispute concerning an amount contained within an invoice shall be resolved between the Parties as set
out in Article 31. Following resolution of the dispute or issuance of an arbitration award, any amount agreed or found to be payable by one Party to the other Party shall be paid within ten (10) Days after the date of such resolution or award
(unless such award otherwise provides), together with interest at the Agreed Interest Rate calculated for the period between the final date of payment and the date the amount was initially due for payment; provided, however, if any delay is the
justifiable result of the Party concerned failing to provide material information, interest will be payable from thirty (30) Days following receipt of such information. 
  
 10.6 Invoice Contents. All invoices submitted by Owner shall: 
  

	 	(i)	refer to this Charter and if applicable, quote Charterer’s purchase order number (which Charterer will furnish to Owner); 

  

	 	(ii)	be submitted with sufficient documentation to support such invoices and permit verification by Charterer; and 

  

	 	(iii)	be submitted to and received by Charterer for the purposes of this Charter at Charterer’s nominated address in Article 30 (or such other place as may be agreed for this purpose
in writing). 

  
 10.7 Change of Owner Bank
Account. Should Owner wish to change any bank or other financial institution to which payment is to be made, at least thirty (30) Days prior written notice shall be given to Charterer of the new bank or financial institution and account
details where such payment is to be made. 
  
 ARTICLE 11

 LIENS 
  
 11.1 No Liens. Except for Permitted Encumbrances and Charterer’s lien for any unperformed Owner obligations as provided below, subject
to the Lender’s rights in the QEL referenced in Clause 4.9, neither Charterer nor Owner shall have the right, power or authority to create, incur, or permit to be imposed upon the FPSO any Encumbrance whatsoever. 
  

 49 

 11.2 Liens Arising by Operation of Law. Certain liens or Encumbrances may attach to the
FPSO from time to time by operation of law. If any action is taken to enforce any Encumbrance on the FPSO (whether a Permitted Encumbrance or not), Owner shall immediately notify Charterer thereof and take such steps as are necessary to prevent any
such action from adversely affecting Charterer’s rights under this Charter. In the event that: (i) without the prior written consent of Charterer, Owner grants or suffers to exist a mortgage or other form of consensual security interest in
respect of the FPSO other than a Permitted Encumbrance, or (ii) if an Encumbrance arising by operation of law attaches to the FPSO and Owner fails to remove such lien or Encumbrance within the time period set forth in Clause 17.3(v), then in
addition to any other rights Charterer may have under this Charter, Charterer may terminate this Charter pursuant to the provisions of Clause 17.3(v) provided the termination conditions in such Clause 17.3(v) are met, whereupon: (a) Owner shall
immediately reimburse Charterer for any sums paid and not earned and any other sums to which Charterer is entitled under this Charter; and (b) Charterer shall not be obligated to pay the Early Termination Payment. 
  
 11.3 Charterer’s Quiet Enjoyment. Owner shall promptly
comply with the terms and conditions of all Permitted Encumbrances and in no event shall Owner permit the existence of any such Permitted Encumbrance or its compliance with the conditions thereof to interfere with or in any way delay the timely
performance of Owner’s obligations under this Charter. Except as may be otherwise agreed in the QEL between Owner, Lender and Charterer, and subject to the provisions of Article 4.9 herein, the existence of any Permitted Encumbrance shall in no
way limit or restrict Charterer’s rights or obligations under this Charter and the holder or owner of any such Permitted Encumbrance shall be subject to Charterer’s rights under this Charter. 
  
 ARTICLE 12 
 HEALTH, SAFETY AND ENVIRONMENTAL OBLIGATIONS 
  
 12.1 Environmental Laws. Owner represents that it is fully capable of performing the Services in compliance with all applicable Malaysian
and other applicable federal, state, and local safety, health and environmental laws, guidelines and regulations and good maritime operating practice and procedures as well as international protocols and treaties binding upon the FPSO or Owner in
the performance of the Services and Owner shall also comply with the HSE policies and rules set forth in Appendix M. 
  
 12.2 Safety Laws. With respect to the Services, Owner is responsible for providing and maintaining a safe and healthy work environment at
the FPSO for Owner Group Personnel, Charterer Group Personnel and all Third Parties. All such people at the FPSO are required to comply with Owner’s efforts to provide and maintain a safe and healthy work environment. 
  
 12.3 Helicopters/Supply Boats. The Master may, in connection
with the performance of the Services, regulate the landing and taking off of helicopters and handling of supply boats, shuttle tankers, launches and small boats employed by the Charterer whilst alongside the FPSO and may defer offloading during the
FPSO Commissioning if the Master sees fit, in each case for safety purposes. 
  

 50 

 ARTICLE 13 
 TAXES/DUTIES 
  
 13.1
Taxes and Duties. 
  

	 	(i)	Malaysian Tax Laws. This Charter has been entered into under the current tax laws and regulations of Malaysia, including, but not limited to, turnover and sales taxes,
taxes on or deductible from payments, consumption taxes, value added taxes, business taxes and customs duties, the Malaysian Income Tax Act 1967, as amended, and taxes on gains or net income. 

  

	 	(ii)	Required Withholdings. Subject to the provisions of Clauses 13.1(iii), (iv) and (vi) hereof, Charterer shall be authorized to withhold taxes from the payments made
under this Charter in accordance with the laws, regulations and/or directives in force in Malaysia and all other appropriate jurisdictions from time to time. 

  

	 	(iii)	Hire Rate Exclusive of Taxes. Hire Rate and other payments described in this Charter made by Charterer to Owner are exclusive of any Malaysia income, corporate,
withholding, value-added, goods and services taxes, and other tax of a similar nature or effect chargeable in Malaysia. Charterer shall assume full and exclusive liability for payment of all such taxes and, subject to the provisions of Clauses
13.1(iv) and 13.8, Charterer hereby agrees to save, defend, indemnify and hold harmless Owner from and against any such taxes.. 

  

	 	(iv)	No Withholding Taxes Due to Owner’s Residency Status. On condition that Owner submits to Charterer a letter from its external auditor, or tax consultant or legal
counsel stating that Owner is a resident in Malaysia under clause 7 or 8 of the Income Tax Act 1967, no Malaysian withholding tax shall be deducted or paid in respect of any sums payable to Owner under this Charter. 

  

	 	(v)	Owner Discharge of Encumbrances. Owner shall promptly discharge any lien or Encumbrance arising by operation of law that attaches to the FPSO and shall save,
defend, indemnify, and hold harmless Charterer from any claims, liabilities, losses, or damages suffered or incurred by Charterer in relation to such liens or Encumbrances. 

							
	 	 	 	 	 	 	 
	  (vi)
	 	 	 	Hire Rate Gross Up for Required Withholdings.    	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

  

 51 

			
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 

  

	 	(vii)	Owner’s Reimbursement of Taxes. If Charterer pays any withholding or other taxes or duties to any Malaysian authority on behalf of Owner under the
provisions of this Article 13 and Owner recovers any such taxes or duties which Charterer has overpaid, or Owner is not required to pay as a result of an exemption, preferential tax treatment or otherwise, Owner shall, on demand by Charterer, repay
to Charterer all such taxes or duties paid by Charterer and refunded to Owner. If Owner is required to pay any taxes to any Malaysian authority for which it claims Charterer is responsible under the provisions of this Article 13, Owner shall provide
evidence to Charterer of all such taxes paid to and official tax receipts from the relevant taxing authority. 

  
 13.2 Statutory Exemptions. If Owner claims to be exempted from any statutory withholding tax or deduction, it shall inform Charterer in
writing and promptly provide any necessary documentation to support such exemptions, including a certificate of exemption or preferential tax treatment from the relevant taxing authority. 
  
 13.3 Charterer’s Tax Indemnity. If any Claim or
demand for payment of taxes in Malaysia related to this Charter is made on Owner, which is not required by law or by this Charter, then Charterer shall save, indemnify, defend, protect and hold harmless Owner Group with regard to such Claim or
demand. 
  
 13.4 Owner’s Tax
Indemnities. Except as otherwise provided in this Charter, while performing the Services, Owner shall be responsible for, shall pay at its own expense when due and payable, and shall save, indemnify, defend, protect and
hold harmless Charterer Group in respect of, all taxes and duties payable by Owner or any member of the Owner Group in Malaysia or any other country in relation to the Owner’s general corporate or other business taxes on its earnings and
profits (other than the Hire Rate or other compensation due to Owner under this Charter) and with respect to the Services (whether performed by Owner or any of its Affiliates or the Subcontractors of either), including without limitation with
respect to Owner Property: 
  

	 	(i)	Sales, Excise, Use Taxes, Etc. All sales, excise, storage, consumption and use taxes, licenses, permit and registration fees, income, profit, excess profit, franchise, and
personal property taxes; and 

  

	 	(ii)	Employment Taxes. All employment taxes and contributions imposed or that may be imposed by law, trade union contracts, or regulations with respect to or measured by the
compensation (wages, salaries or other) paid to employees of Owner including, without limitation, taxes and contribution for unemployment and compensation insurance, old age benefits, welfare funds, pensions and annuities, and disability insurance
and similar items;  

  

 52 

	 	(iii)	Customs Duties. Subject to the provisions of Clause 13.6(iii), all Duties applicable on the import into and export from Malaysia of Owner Property, Owner’s goods,
equipment and materials for the FPSO and its related equipment in connection with the FPSO Work and Services prior to the Delivery Date (but not afterwards), including items imported in Charterer’s name and which are on the prevailing
“Master List of Materials and Equipment for Upstream Petroleum Operations Exempted from Customs Duties and Sales Taxes” (referred to below as the “Master Exemption List” ; and

  

	 	(iv)	Owner’s Failure to Comply with Exemptions. Any tax liability in excess of the maximum set forth in Clause 13.1(vi) above and any taxes on Hire Rate or other compensation
due Owner under this Charter for which Charterer becomes liable due to any loss of exemption or preferential treatment in relation to any Customs Duties or taxes due to Owner’s failure to comply with any requirements associated with such
exemptions or preferential treatment. 

  
 13.5 Certain Malaysian Tax and Customs Duties Requirements. In relation to the importation of Owner’s equipment and materials into Malaysia for purposes of performing the Services hereunder: 
  

	 	(i)	Imported Goods. Any goods, equipment or materials imported overland into Malaysia for performance of the Services shall be delivered under bond to the
Supply Base. 

  

	 	(ii)	Master Exemption List. If Owner’s goods, equipment or materials which fall within the Master Exemption List are to be imported in the name of Charterer by a route
other than via the Supply Base, Owner shall be required to move such equipment under bond to the Supply Base. Owner shall obtain Charterer’s prior written approval and shall provide sufficient notice to Charterer for customs clearance.

  

	 	(iii)	Goods to be Imported Under Owner’s Name. Importation of such goods, equipment and materials shall be made in the name of Owner if Owner has a warehouse at the
Supply Base; otherwise, such imports shall be made in the name of Charterer. 

  

	 	(iv)	Temporary Imports. If any of Owner’s goods, equipment or materials which are not listed on the Master Exemption List will not be consumed in the performance of
the Services, but will be utilized for a period of less than six (6) months, Owner shall import such goods, equipment or materials on the basis of temporary import for re-export; and Charterer shall, if requested, provide reasonable help to enable
Owner to obtain such exemption, at Owner’s expense. 

  

	 	(v)	Import/Export Documentation. Owner shall be responsible for the preparation of all documents required by governmental authorities in connection with the import and
export of Owner Property and Owner’s goods, equipment and materials and other products for which it is responsible under the provisions of this Charter to and from Malaysia. Charterer agrees to use reasonable efforts to assist Owner with
respect to the documents and approvals required by Owner under this sub-clause (v). 

  

 53 

	 	(vi)	Responsibility for Owner Property. Owner shall be responsible for its Owner Property and Owner’s goods, equipment and materials imported into Malaysia while such
items are in Owner’s custody. Owner shall defend, indemnify, and hold harmless Charterer Group from and against any Claims, demands and causes of action which may arise as a result of damage to, shortages, or overages in inventory of such
equipment. 

  

	 	(vii)	Removal of Owner’s Goods and Equipment. Upon termination of this Charter, Owner shall take immediate steps to remove such Owner’s goods, equipment and
materials from Malaysia (unless such goods, equipment or materials have been used, lawfully abandoned or consumed in the performance of the Services or lawfully transferred to Charterer). Unless Charterer agrees otherwise in writing, Owner shall
comply with all reasonable and lawful directions and procedures as required by Charterer to cause such equipment to be removed as aforesaid as expeditiously as possible. 

  

	 	(viii)	Sale of Owner’s Goods - Notice to Charterer. If any of Owner Property and Owner’s goods, equipment or materials listed in the Master Exemption List and
imported in Charterer’s name into Malaysia are to be sold, transferred, disposed of or otherwise dealt with prior to their removal from Malaysia, Owner shall give reasonable notice to Charterer of its intention and such action shall only be
taken after written consent from Charterer. Charterer shall attempt to obtain the necessary approvals from the relevant governmental authorities for such action. 

  

	 	(ix)	Owner’s Tax Indemnity. Owner shall save, indemnify, defend, protect and hold harmless Charterer Group from and against any and all taxes, duties, surcharges, fines, or
penalties of whatsoever nature for which Charterer shall be or become liable as a result of Owner’s failure to comply with the reasonable and lawful directions and procedural requirements notified to it by Charterer with respect to the removal
from Malaysia of Owner Property and Owner’s goods, equipment or materials imported in Charterer’s Name, or as a result of Owner’s unauthorized act in selling, transferring, or disposing of such items prior to their removal from
Malaysia, or as a result of Owner’s failure to furnish proper and accurate information for the import into Malaysia of such goods, equipment and materials. 

  
 13.6 Charterer’s Tax Indemnities. Charterer shall be responsible for, shall pay at its own expense
when due and payable, and shall save, defend, indemnify, protect and hold harmless Owner Group in respect of, all taxes and duties payable by Charterer or any member of Charterer Group in Malaysia or any other country in relation to Charterer’s
performance of any of its obligations under this Charter, or (to the extent permitted by this Charter) its assigning or conferring the benefits of this Charter or the Services performed hereunder on any Person, including without limitation with
respect to Charterer Property: 
  

 54 

	 	(i)	Sales, Use Taxes, Etc. All sales, excise, storage, consumption and use taxes, licenses, permit and registration fees, income, profit, excess profit, franchise, and personal
property taxes assessed against Charterer’s Property; 

  

	 	(ii)	Employment Taxes. All employment taxes and contributions imposed or that may be imposed by law, trade union contracts, or regulations with respect to or measured by the
compensation (wages, salaries or other) paid to employees of Charterer including, without limitation, taxes and contribution for unemployment and compensation insurance, old age benefits, welfare funds, pensions and annuities, and disability
insurance and similar items; and 

  

	 	(iii)	Customs Duties.  

  

	 	(a)	Charter Supplied Items. All Customs Duties which apply in Malaysia to the import into or export from Malaysia of Charterer Supplied Items.

							
	 	 	 	 	 	  	 
	 13.6.1
	 	 Export Duties on Owner Property, Goods, Equipment, Etc.    
	 	 	  	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	  	 

  
 13.7 Other
Tax Indemnities. 
  

	 	(i)	Parties’ Cross Indemnities. Each of the Parties shall save, indemnify, defend, protect and hold harmless the other and its respective Group against all Claims, demands
and causes of action based on any failure by the first party to make timely payment of any taxes or duties for which it is liable or to comply with applicable reporting, return, or other procedural requirements with respect to their payment. This
indemnity shall include, without limitation, all penalties, awards and judgments, court and arbitration costs, attorneys’ fees, and other reasonable expenses associated with such Claims, demands, and causes of action.

  

	 	(ii)	Notices of Non-Payment, Etc. Each Party shall give prompt notice to the other of all matters pertaining to non-payment, payment under protest,

  

 55 

 claims of immunity, or exemption from any taxes or duties, to the extent that such action or omission
could impact on the tax position of the other Party. 
  
 13.8
Tax Savings. Notwithstanding any provision to the contrary contained in this Article 13 or elsewhere in this Charter, Owner shall use Best Efforts to obtain preferential tax free treatment or exemptions under Labuan law for its
operations under this Charter, within one hundred-twenty (120) Days after the Contract Date. In addition, Owner shall use Best Efforts to ensure that any permitted assignee of Owner’s rights, benefits and obligations under this Charter also
obtains such Labuan preferential tax free treatment or exemptions. Owner agrees that any and all savings, exemptions or incentives obtained by Owner with respect to income or corporate taxes or duties, imposts or other taxes of any kind (including
but not limited to those set forth in Clause 13.1(i)) from or with respect to any applicable taxing jurisdiction or authority as a result of Owner’s, the Charterer’s and/or any co-venturer’s structuring, whether or not involving
Subcontractors and/or Contractor, of the ownership or chartering of the FPSO or the performance of the Services shall be refunded to Charterer to the extent Owner has been compensated by Charterer for such amounts. 
  
 ARTICLE 14 
 CONFLICTS OF INTEREST; FEES; GOVERNMENT PAYMENTS 
  
 14.1 Commissions/Fees. No member of Owner Group shall pay any commissions or fees or grant any rebates or other remuneration or gratuity to
any member of Charterer Group. No member of Owner Group shall grant any secret rebates, one to the other, nor pay any commissions or fees to the employees or officers of the other. 
  
 14.2 Corrupt Payments. Owner warrants that neither it nor any other member of Owner Group has made, will make,
or will permit to be made, with respect to the Services or other matters provided for under this Charter, any offer, payment, promise to pay or authorization of the payment of any money, or any offer or gift, or give or promise to give or authorize
the giving of anything of value, directly or indirectly, to or for the use or benefit of any official or employee of the Government or to or for the use or benefit of any Malaysian or other Government political party, official, governmental
department, agency or instrumentality thereof or any Government controlled entity or candidate for the purpose of: (i) influencing an official act or decision of that Person; (ii) inducing that Person to do or omit to do any act in violation of his,
her or its lawful duty; or (iii) inducing that Person to use his, her or its influence within the Government to affect any Government decision or secure any improper advantage. Owner further warrants that neither it nor any member of Owner Group has
made or will make any such offer, payment, gift, promise or authorization to or for the use or benefit of any other Person if Owner or any other member of Owner Group knows, has a firm belief, or is aware that there is a high probability that the
other Person would use such offer, payment, gift, promise or authorization for any of the purposes described in the preceding sentence. The foregoing warranties do not apply to any facilitating or expediting payment to secure the performance of
routine Government action. Routine Government action, for purposes of this Clause 14.2, shall not include, among other things, Government action regarding the terms, award, amendment, or continuation of this Charter. Owner shall respond promptly,
and in reasonable detail, to any notice from Charterer or its auditors pertaining to the above stated warranty and representation and shall furnish documentary support for such response upon request from Charterer. 
  

 56 

 14.3 Article 14 Claims. Owner shall and hereby agrees to save, indemnify, defend,
protect and hold harmless Charterer Group from and against all Claims in connection with the warranties and agreements contained in this Article 14. 
  

													
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 

  

 57 

									
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	.        

  
 ARTICLE 16

 PARTY REPRESENTATIVES 
  
 16.1 Owner Representative. Owner shall nominate by notice in writing to Charterer one of Owner’s Personnel as Owner Representative for
the purpose of monitoring the performance of Charterer’s obligations under this Charter. 
  
 16.2 Charterer Representative. Charterer shall nominate by notice in writing to Owner one of its Personnel as Charterer Representative for the purpose of monitoring the performance of Owner’s
obligations under this Charter. 
  
 ARTICLE 17 

TERMINATION 
  
 17.1 Termination by Charterer. 
  

	 	(i)	Before the Delivery Date. Charterer may terminate this Charter at any time prior to the Delivery Date by giving Owner no less than ninety (90) Days prior
written notice of termination. 

  

	 	(ii)	After the Delivery Date. Charterer may, by written notice to Owner, terminate this Charter at any time after the Delivery Date and before the expiration of the Primary
Term or any Secondary Term; provided, if this Charter is in the Primary Term, Charterer shall give Owner at least six (6) months prior written notice and if this Charter is in a Secondary Term, Charterer shall give Owner at least three (3) months
prior notice. If either of such events occurs, the termination date of this Charter shall be the Day six (6) months (if in the Primary Term) or three (3) months (if in the Secondary Term), as the case may be, after the Day on which Owner receives
Charterer’s notice of termination. 

  
 17.2
Early Termination Payment and Expenses. A termination of this Charter by Charterer under Clause 17.1, 17.9 (if such termination would qualify for an Early Termination Payment under the provisions of the last sentence of this Clause
17.2), 
  

 58 

 Clause 18.3(ii)(a) (but only if such termination is for drydocking or Offsite Repair Work for reasons
under Clause 18.3(i)(b)), Clause 26.3, or Clause 35.2 or by Owner under Clause 17.4 or Clause 26.4 shall be subject to the applicable Early Termination Payment but in no other case shall an Early Termination Payment be due to Owner by Charterer. In
addition, to the Early Termination Payment, Charterer shall pay Owner’s Demobilization Costs in accordance with the provisions of Clause 25.2, except that Charterer shall only pay Owner’s Demobilization Costs under Clause 17.1(i) if the
FPSO has left the Owner’s conversion yard or other shore-side location (where the FPSO Work was being carried out) for the FPSO Site, or is actually on location at the FPSO Site, after the Sailaway Date. The Parties also agree that, in
connection with any termination under Clause 17.9, Charterer shall be required to pay an Early Termination Payment and/or Demobilization Costs if such termination of the FPSO Operating and Maintenance Agreement is for reasons which under the
provisions of this Charter would require Charterer to pay an Early Termination Payment and/or Demobilization Costs (provided that Charterer shall never be required to make duplicate payments of such amounts). 
  
 17.3 Charterer’s Other General Termination Rights. In the
event: 
  

	 	(i)	Owner’s Breach. Owner is in breach of any of its material obligations under this Charter and fails to resolve such breach to Charterer’s satisfaction
pursuant to the procedures and within the time limits set forth in Clause 17.6; 

  

	 	(ii)	Owner’s Insolvency. Owner suspends payment of its debts or is unable to pay its debts as they become due, a petition is filed or an order is made or entered (and
is not stayed within thirty (30) Days of service thereof) or a resolution is passed or an involuntary petition is filed for the winding up, receivership, bankruptcy or reorganization of Owner, or Owner makes an assignment for benefit of all or
substantially all of its creditors, or a receiver or administrator is appointed to all or substantially all of its assets; 

  

	 	(iii)	Owner’s FPSO Title Failure. Except as otherwise expressly permitted in this Charter, Owner ceases to own the whole (100% or, if under British registry or
equivalent, 64/64th) of the FPSO (unless the FPSO is assigned to a Lender for financing purposes) or fifty percent
(50%) or more of the voting shares or stock of Owner is sold or voting control or control of the board of directors of Owner is transferred to any other Person; 

  

	 	(iv)	Insurance Lapse. Any insurance required of Owner under this Charter is not obtained or lapses (provided, however, that, in the case of any insurance renewal, if Owner
demonstrates to Charterer’s reasonable satisfaction prior to any such renewal that insurance coverages in any specified amount or for any specified risk listed in Article 29 is not available in the marketplace or from Owner’s P&I Club
at the time of any renewal and Charterer and Owner agree in writing to alternative amounts or coverages prior to any such renewal, then Owner shall not be in breach under this Clause 17.3(iv), as long as no agreed insurance lapses or ceases to be in
effect at any time); 

  

 59 

	 	(v)	Encumbrances which Interfere with Charterer’s Operations. Owner permits or suffers to exist any Encumbrance or other consensual or non-consensual security
interest in respect of the FPSO (other than a Permitted Encumbrance) and such encumbrance or other security interest interferes with Charterer’s operations at the FPSO Site or its other operations in the Kikeh Field and such Encumbrance or
other security interest has not been removed by Owner within forty (40) Days after written notice requesting its removal has been given by Charterer to Owner. 

  

	 	(vii)	Owner’s Corporate Status. The corporate status of Owner terminates; 

  

	 	(viii)	False Representations. Any representation or warranty of Owner under this Charter: 

  

	 	(a)	shall prove to be untrue, false or materially misleading when made or for the time covered; and 

  

	 	(b)	as a consequence shall materially and adversely affect Charterer’s rights or benefits under this Charter; and 

  

	 	(c)	which Owner has failed to remedy to Charterer’s satisfaction within thirty (30) Days after written notice from Charterer; 

  

	 	(ix)	Certain Changes without Charterer’s Consent. Without Charterer’s prior written consent or as otherwise specifically provided in this Charter:

  

	 	(a)	the FPSO shall cease to be registered under the laws of the Flag State; 

  

	 	(b)	the Classification Society shall remove the FPSO classification; 

  

	 	(c)	the FPSO shall be arrested as a consequence of any Claim or event other than a Claim arising by, through or under Charterer and is not released from such arrest within twenty (20)
Days after being arrested; and 

  

	 	(d)	Owner shall make any assignment prohibited by Clause 24.3 of Owner’s rights or obligations under this Charter; 

  

	 	(x)	Owner Guarantor Events. The Owner Guarantor: 

  

	 	(a)	suspends payment of its all or substantially all of debts or is generally unable to pay its debts in the ordinary course of its business; 

  

	 	(b)	passes a resolution, commences proceedings or has proceedings commenced against it (which are not stayed within twenty-one (21) Days of service thereof on the Owner Guarantor) in
the nature of bankruptcy or reorganization resulting from insolvency or for its liquidation or for the appointment of a receiver, trustee in bankruptcy or liquidator of its undertaking or assets; or 

  

 60 

	 	(c)	enters into any composition or scheme or arrangement with its creditors; 

  

	 	(xi)	Owner Guarantee Failure. The Owner Guarantee ceases to be in full force and effect before the expiry of its agreed term (as agreed in writing by Charterer) (unless,
within ten (10) Business Days thereafter, a replacement Owner Guarantee, by an entity and a form satisfactory to Charterer, is executed and delivered to Charterer in substitution for the original Owner Guarantee); 

  

	 	(xii)	Excessive Shutdown. Unless otherwise mutually agreed in writing by the Parties, Shutdown occurs and continues for a period of ninety (90) consecutive Days at any time
during this Term plus any unused hours of Annual Maintenance Allowance, as set forth in Clause 9.2(xii), for the year or years in which such ninety (90) consecutive Days of Shutdown occurred, in which event Charterer shall not be required to pay any
Early Termination Payment, unless otherwise agreed in writing by the Parties; or 

  
 then: 
  
 Charterer, in addition to any other rights it might have under this Charter, shall have the right to immediately terminate this Charter on demand by
giving Owner fourteen (14) Days written notice, at which time the Charter shall terminate without further obligation on either Party, except for those provisions (other than payment provisions, unless otherwise expressly provided in this Charter)
which expressly survive termination pursuant to the provisions of this Charter. 
  
 17.4 Owner’s Termination Rights. In the event: 
  

	 	(i)	Charterer’s Payment Failure. Charterer shall, for any reason, fail to make any Hire Rate payment due under this Charter (other than disputed amounts) and such
default continues after receipt by Charterer of Owner’s ultimate written demand for payment given pursuant to the provisions of Clause 10.3; 

  

	 	(ii)	Charterer’s Breach. Charterer is in breach of any other of its material obligations under this Charter; and such failure or breach continues for a period of
thirty (30) Days after written notice has been received by Charterer and such breach or failure has not been remedied by Charterer within such thirty (30) Day period; 

  

	 	(iii)	Charterer’s Insolvency. Charterer generally suspends payment of its debts or is unable to pay its debts as they become due, a petition is filed or
an order is made or entered (and is not stayed within thirty (30) Days of service thereof) or a resolution is passed or an involuntary petition is filed for the winding up, receivership, bankruptcy or reorganization of Charterer, or Charterer makes
an assignment for benefit of all or substantially all of its creditors, or a receiver or administrator is appointed to all or substantially all of its assets; or 

  

 61 

	 	(iv)	Charterer Guarantor and Guarantee. (a) Charterer Guarantor suffers or initiates any of the events outlined in Clause 17.3(x) above with respect to Charterer Guarantor
or its operations, or (b) the Charterer Guarantee ceases to be in full force and effect and is not replaced with a Charterer Guarantee satisfactory to Owner within the time period set forth in Clause 17.3(xi); 

  
 then, Owner may at its option terminate this Charter (a) in the case of
Clause 17.4(i), upon seven (7) Days, (b) in the case of Clauses 17.4(ii) and (iii), upon sixty (60) Days and (c) in the case of Clause 17.4(iv), upon fourteen (14) Days prior written notice to Charterer. If this Charter is terminated as set forth
above, Charterer shall remain liable for all amounts owing or earned and unpaid to the date of termination pursuant to the provisions of Article 9 (whether or not invoiced) and shall be required to pay the Early Termination Payment and Owner’s
Demobilization Costs. 
  
 17.5 Parties’ Other
Termination or Cancellation Rights. The Parties acknowledge that other cancellation and termination rights are set forth elsewhere in this Charter, including, but not limited to, the following additional Articles or Clauses of this Charter
(provided, however, that this list is not intended to be exclusive): 
  

	 	(i)	Clause 3.5(iv) (Late Ready for Risers Date); 

  

	 	(ii)	Clause 3.5(v) (Cancellation in anticipation of late Ready for Risers Date); 

  

	 	(iii)	Clause 15.4 (Closing of sale of FPSO); 

  

	 	(iv)	Clause 17.9 (FPSO Operating and Maintenance Agreement termination); 

  

	 	(v)	Clause 18.3(ii) (Excessive Drydocking); 

  

	 	(vi)	Article 20 (Requisition or seizure); 

  

	 	(vii)	Article 21 (Total or constructive total loss); 

  

	 	(viii)	Clause 26.4 (Force Majeure); and 

  

	 	(ix)	Clause 35.2(iii) (Risk Zone insurance failure). 

  
 17.6 Owner’s Material Breach - Procedures. In the event of Owner’s material breach under Clause 17.3(i) above, Charterer shall
notify Owner in writing to cure such breach. Owner shall then use Best Efforts to cure the breach within thirty (30) Days after it receives such written notice from Charterer. If it fails to either (i) cure such breach or (ii) demonstrate to
Charterer’s reasonable satisfaction, by delivering a detailed written proposal to Charterer, that it will be able to cure such breach within a reasonable period of time, Charterer may terminate this Charter by giving Owner a further fifteen
(15) Days written notice, upon the expiration of which notice, the Charter shall terminate. 
  
 17.7 Termination without Prejudice. Termination of this Charter by either Party shall be without prejudice to the Parties’ rights under this Charter accrued up to the applicable termination date.
Where an express termination provision has been provided for in this Charter, no other termination rights at law or otherwise shall apply. 
  

 62 

 17.8 Specific Performance. Owner acknowledges and agrees that damages for
Owner’s breach of contract would be difficult or impossible to ascertain in the event of either: 
  

	 	(i)	Owner’s intentional and unauthorized or unjustified withdrawal from the FPSO Work or its intentional and unjustified cessation of all of the FPSO Work prior to the Delivery
Date; or 

  

	 	(ii)	Owner’s intentional and unauthorized relocation and use of the FPSO or intentional and unauthorized cessation of the Services at the FPSO Site for the convenience of any of
Owner Group or the benefit of any client other than Charterer or its permitted assigns after the Delivery Date and prior to the end of the Term. 

  

In such events, the Parties agree that Charterer would have no clear and adequate remedy at law for such breach and that as a remedy for such
Owner’s breach, Charterer has the right (exercisable in its sole discretion) to demand and obtain specific performance of this Charter for the resumption of FPSO Work or Services or return of the FPSO to the FPSO Site, as applicable, with
respect to Owner’s above-referenced breaches. The provisions of this Clause 17.8 shall be without prejudice to and subject to the Lender’s rights under the provisions of the QEL. For the avoidance of doubt, it is agreed that any cessation
of FPSO Work or Services which is due to Force Majeure or default by Charterer or any member of Charterer Group will not entitle Charterer to any rights under this Clause 17.8. 
  
 17.9 FPSO Operating and Maintenance Agreement. If the FPSO Operating and Maintenance Agreement
terminates for any reason, this Charter shall terminate provided that, in such event, the Early Termination Payment and Demobilization Costs shall be payable to the extent same are due under the provisions of Clause 17.2 of this Charter. 

 
 ARTICLE 18 
 MAINTENANCE, REPAIRS AND DRYDOCKING 
  
 18.1 Obligations. Charterer shall contract for Contractor to maintain the FPSO’s continuous machinery survey cycle and the annual class
inspections of the FPSO’s hull and other parts of the FPSO required by the Classification Society. Subject to the provisions of Clause 21.4, Charterer shall cause Contractor to maintain and repair the FPSO throughout the Term, and require
Contractor at all times to maintain, repair and preserve the FPSO in good condition, working order and repair, ordinary wear and tear excepted, so that the FPSO shall be tight, staunch, strong and well and sufficiently tackled, appareled, furnished,
equipped so that the FPSO remains in good operating condition. 
  
 18.2 Other Repairs, Inspections, FPSO Classification Certificates, Etc. From and after the Delivery Date and thereafter throughout the Term, Charterer shall require Contractor to cause the FPSO to be maintained so as to comply
with its FPSO Classification and be generally maintained, inspected and repaired (subject to the 
  

 63 

					
	 	 	 	  	 
	 provisions of Clause 21.4), as necessary,  
	  	 
	 	 	 	  	 
	 	 	 	  	 
	 	 	 	  	 
	 	 	 	  	 

  
 18.3
Drydocking Due to Owner Breach, Etc. 
  

									
	 	  	 	  	 	 	 	 	 
	 (i)
	  	 	  	Unauthorized Drydocking. If, 	 	 	 	after the Delivery Date, a drydocking of the FPSO
	 	  	 	  	or repair work on the FPSO which requires removal of the FPSO from the FPSO Site must take place (“Offsite 
	 	  	 	  	Repair Work”), the following provisions shall apply, concerning Hire Rate and drydocking and repair costs and expenses:

  

	 	(a)	Owner/Contractor Breach; Classification Society or Government Requirement. If any such drydocking or Offsite Repair Work is required due to (I) breach or
failure of any of the obligations, representations or warranties of either of Owner under the Charter or Contractor under the FPSO Operating and Maintenance Agreement, (II) requirement or recommendation of the Classification Society, or (III)
requirement or order of any Government body or authority (which, in the case of both sub-clauses (II) and (III) of this Clause 18.3(i)(a), is not due to any event contemplated in Clauses 18.3(i)(b) or 18.3(i)(c) below), then subject to any remaining
unused Annual Maintenance Allowance (during which Hire Rate is payable), Hire Rate shall cease to be payable to Owner from the time of commencement of the Shutdown Period, as such Shutdown Period commencement may be extended by any such unused
Annual Maintenance Allowance. 

  

	 	(b)	Charterer’s Primary Fault. If any such drydocking or Offsite Repair Work is required for any reason primarily caused by a breach of this Charter by any of
Charterer Group, Charterer shall continue to pay the full Hire Rate during any such drydocking or Offsite Repair Work. 

  

	 	(c)	Force Majeure Event. If any such drydocking or Offsite Repair Work is required due to any Force Majeure event, without any such drydocking or Offsite Repair Work being
primarily caused by the existence of any pre-existing defects in or outstanding repairs needed to the FPSO or its equipment (as determined by an independent surveyor acceptable to both Owner and Charterer) in breach of Charterer’s obligations
and warranties under this Charter or Contractor’s duties and obligations under the FPSO Operating and Maintenance Agreement, Charterer shall pay the Force Majeure rates set forth in Clause 26.2 until the FPSO has been returned to the FPSO Site
and Full Flow Rates have resumed. 

  

 64 

	 	(d)	Costs and Expenses. 

  

	 	(1)	In the case of any unscheduled drydocking or Offsite Repair Work all costs and expenses related to such unscheduled drydocking or Offsite Repair Work (collectively, “FPSO
Drydocking Costs”) shall be paid and borne by the Parties in the manner set forth in sub-clause (d)(2) below. The FPSO Drydocking Costs include: the costs and expenses of (A) shutting down all systems on the FPSO and disconnecting the
FPSO from the Riser Facilities and unhooking the FPSO and its turret from the Mooring System at the FPSO Site, (B) transporting the FPSO from the FPSO Site and subsequently returning it to the FPSO Site from the drydocking or repair location, (C)
the drydocking, upgrades and repairs, capital improvements or maintenance required and (D) all costs and expenses of returning the FPSO to the FPSO Site and having it reclassified by the Classification Society and of reconnecting the FPSO and its
turret to the Mooring System and Riser Facilities at the FPSO Site after such drydocking or Offsite Repair Work. 

  

	 	(2)	All FPSO Drydocking Costs in sub-clause (d)(1) shall be borne and paid as follows: (A) by Owner, in the case of any event under either Clause 18.3(i)(a) or Clause 18.3(i)(c) above;
and (B) by Charterer in the case of an event under Clause 18.3(i)(b) above. 

  

	 	(ii)	Excessive Drydocking - Charterer Cancellation Rights; Charterer’s Costs. 

  

	 	(a)	Drydocking Due to Owner Breach or Charterer’s Fault. After the FPSO has been in drydock or Offsite Repair Work is being performed, due to the reasons described in
Clause 18.3(i)(a) or Clause 18.3(i)(b) above, for one hundred eighty (180) Days or more, Charterer shall have the right, upon giving three (3) Days prior written notice at any time after such one hundred-eightieth (180th) Day to terminate this Charter. Upon any such termination, Owner shall, without receiving any component of Hire Rate (except
as otherwise provided in Clause 18.3(iv) below), perform or cause to be performed and shall bear and pay all costs, risks and expenses of: (I) recovery of the Mooring System, (II) the release or discharge of Contractor or Subcontractor Personnel,
and (III) towing and anchor handling vessel charges, import or export fees or duties and surveys of the FPSO; provided, however, that in the case of a termination by Charterer in any case where the drydocking or Offsite Repair Work was primarily due
to reasons set forth in Clause 18.3(i)(b), Charterer shall pay Owner an Early Termination Payment plus any FPSO Drydocking Costs for work performed prior to the effective date of Charterer’s termination (but not subsequent to such date).

  

 65 

	 	(b)	Drydocking Due to Force Majeure Event. If the unscheduled drydocking or Offsite Repair Work was due to reasons set out in Clause 18.3(i)(c) above, Owner’s and
Charterer’s termination rights and time periods pertaining to such termination rights set forth in Clauses 26.3 and 26.4 of this Charter shall apply. 

  

	 	(c)	Charterer’s Costs and Expenses. Owner shall not be liable for any of Charterer Group’s costs and expenses during any period after Shutdown under this Clause
18.3 except to the extent that Owner or Contractor uses the services of Charterer Group in undertaking Contractor’s responsibilities and obligations described in this Clause 18.3. 

  

	 	(iii)	No Hire Rate until Completion of Post Drydocking FPSO Commissioning.  

  

	 	(a)	No Hire Rate until FPSO Back at the FPSO Site. If the FPSO leaves the drydock or such off-FPSO Site facility where work on the FPSO was performed for reasons set forth
in Clause 18.3(i)(a) above, and Charterer has not terminated this Charter, Owner shall not receive any Hire Rate again until the FPSO: (I) has arrived on the FPSO Site in compliance with the Specifications, (II) is fully and safely moored in
accordance with Attachment A of the FPSO Operating and Maintenance Agreement in a position in accordance with such Attachment A and no further actions are required by Contractor to connect the FPSO to the Riser Facilities, (III) is classified with
the FPSO Classification as required hereunder, and (IV) successfully re-performs the FPSO Commissioning (and all of the above is certified by the Classification Society confirming that the FPSO meets the requirements of (I), (II), (III) and (IV)
above in this sub-clause (iii)). Furthermore, in the case of reasons under Clause 18.3(i)(a), the period of time commencing at the time Contractor recommences Crude Oil processing operations until the time when Full Flow Rates are resumed shall be
considered Downtime for Hire Rate purposes. 

  

	 	(b)	Hire Rate in Other Cases. If drydocking or Offsite Repair Work is necessary due to reasons in Clause 18.3(i)(b) above, Hire Rate shall continue to be paid. If such
drydocking or Offsite Repair Work was necessary for reasons in Clause 18.3(i)(c) above, Charterer shall continue to pay the Force Majeure rate set out in Clause 26.2 until all events in (I), (II), (III) and (IV) above of sub-clause 18.3(iii)(a) have
been completed and Full Flow Rates have been resumed. 

  

	 	(iv)	Charterer’s Termination Payments for Termination under Clause18.3(ii). In the event Charterer terminates this Charter pursuant to its termination rights in
Clauses 18.3(ii)(a) and 18.3(ii)(b) above, the following termination payment provisions shall apply: 

  

 66 

	 	(a)	In the case of termination where drydocking or Offsite Repair Work was due to events in Clause 18.3(i)(a) above, Charterer shall not be required to pay any Early Termination
Payment or Demobilization Costs. 

  

	 	(b)	In the case of termination where drydocking or Offsite Repair Work was due to events in Clause 18.3(i)(b) above, Charterer shall pay the Early Termination Payment and
Demobilization Costs. 

  

	 	(c)	In the case of termination where drydocking or Offsite Repair Work was due to events in Clause 18.3(i)(c) above, Charterer shall pay the Early Termination Payment (but not the
Demobilization Costs) required by Clause 26.3. 

  
 18.4 [Intentionally Left Blank.] 
  
 18.5
FPSO Operating and Maintenance Agreement Owner acknowledges that Charterer shall cause the Contractor under the FPSO Operating and Maintenance Agreement to carry out and perform all of the maintenance and repair obligations contained
in Clauses 18.1 and 18.2 and elsewhere in this Charter. Owner agrees that defaults, breaches or failures of Contractor under the provisions of the FPSO Operating and Maintenance Agreement shall not reduce, eliminate or affect in any way Owner’s
obligations or warranties under this Charter. Any such default, breach or failure of or by Contractor under the provisions of the FPSO Operating and Maintenance Agreement shall be considered to be a default, breach or failure of Owner under this
Charter. 
  
 ARTICLE 19 
 REPLACEMENT EQUIPMENT OR MACHINERY 
  
 19.1 Equipment Replacement. If any equipment or machinery or component part thereof of either the FPSO or the Additional Equipment is
damaged, defective or breaks at any time prior to the Delivery Date and such equipment, machinery or component part must be replaced, the capital costs of any replacement thereof shall be borne by (i) the Owner, if same is a part of the FPSO
(excluding Additional Equipment), and (ii) by the Charterer, if same is a part of the Additional Equipment. 
  
 19.2 FPSO Assistance. In the event that at any time during the Term, 
  

	 	(i)	as an agreed alternative to FPSO drydocking or Offsite Repair Work for which Owner would otherwise be responsible under Clause 18.3(i)(a), the FPSO must be assisted at the FPSO Site
by another vessel of any kind in order for the FPSO to remain at the FPSO Site conducting Commercial Operations; or 

  

	 	(ii)	the FPSO is assisted at the FPSO Site by another FPSO, at Owner’s sole option, in order for the FPSO the FPSO to remain at the FPSO Site conducting Commercial Operations;

  
 Charterer shall not be required to pay any
costs or expenses of the assisting vessel by way of either an increased Hire Rate or by any other means. Nor shall Charterer be required to pay any costs or expenses of transporting such assisting vessel to the 
  

 67 

 FPSO Site, mooring it or securing it to the FPSO or the Mooring System or for any other costs of
operation while such assisting vessel is on and operating at the FPSO Site, except for the normal Hire Rate agreed to in this Charter. This Clause does not create any obligation on the part of Owner to provide a replacement FPSO. 
  
 ARTICLE 20 
 REQUISITION OR SEIZURE 
  
 20.1 Government Action. In the event that the FPSO or title to the FPSO should be requisitioned for use or seized by the Government or any governmental authority on any basis (or the FPSO should be
seized by any Person or governmental authority under circumstances which are equivalent to requisition of use or title), Charterer shall continue to pay full Hire Rate for a period not exceeding sixty (60) Days after such requisition or seizure. If
such requisition or seizure continues for a period longer than sixty (60) Days, all Hire Rate and other payments due under this Charter shall cease as of the sixty-first (61st) Day (except for any Hire Rate or other compensation due Owner under this Charter which has accrued but remains unpaid) and this Charter shall terminate
without any notice from Charterer to Owner and without payment of any Early Termination payment or Demobilization Costs by Charterer. Should Owner either receive any compensation from the Government or other governmental authority or any insurance
proceeds with respect to such requisition or seizure, Owner shall promptly reimburse Charterer for all Hire Rates and other compensation, if any, paid by Charterer to Owner after the date of such requisition or seizure. Any such reimbursement due by
Owner to Charterer shall constitute a debt of Owner to Charterer until same is paid in full. 
  
 20.2 Indemnification. 
  

					
	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 	  	 

  

					
	 	  	 
	 (ii)
	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 	 	.

  

 68 

 ARTICLE 21 
 ACTUAL OR CONSTRUCTIVE TOTAL LOSS 
  
 21.1 Total Loss Termination. In the event of actual or constructive total loss of the FPSO occurring for any reason whatsoever at any time during the Term, this Charter shall be deemed terminated as of,
but Charterer shall continue to pay full Hire Rate due under this Charter for a period of sixty (60) Days after, the date of said loss (or if the time of such loss is uncertain, then such loss shall be deemed to have occurred on the date the FPSO
was last heard from). On the sixty-first (61st) Day after such loss, all Hire Rate and other compensation due under
this Charter shall cease without any notice from Charterer to Owner. After such Loss, Owner shall file and use Best Efforts to pursue all insurance claims it might have pursuant to any insurances it has on the FPSO to protect against such total
loss. Should Owner receive any insurance proceeds for the loss of the FPSO, Owner shall promptly reimburse Charterer the amount of all Hire Rate and other payments, if any, made by Charterer to Owner after the date of such loss. Any amounts owing by
Owner to Charterer under this Clause 21.1 shall constitute a debt of Owner to Charterer until same is paid in full. In the case of any termination under this Clause 21.1, the Early Termination Payment and Demobilization Costs shall not be payable.
No other payments shall be due from Charterer other than accrued but unpaid Hire Rate up to the sixtieth (60th) Day
after such loss. 
  
 21.2 Removal of Wreck and/or
Debris. In the event that prior to the Delivery Date, during the Term or following termination of this Charter the FPSO suffers an actual total or partial loss or becomes a total or constructive total loss (as defined in the terms and
provisions of the insurance policies covering the FPSO) or the FPSO is damaged, Owner shall be responsible for causing the removal of its wreck or debris if, and to the extent that, it is required to do so by applicable laws. 
  
 21.3 Mitigation of Exposure; Reimbursement. Owner will use its
Best Efforts to mitigate the exposure of Charterer in the event of an actual or constructive total loss of the FPSO under this Article 21. Owner will reimburse to Charterer all amounts it owes to Charterer under this Charter, if any, in the event of
such loss within fifteen (15) Days after Owner receives payment from underwriters (under its insurance coverage described in Article 29) of the insured value of the FPSO or any other amount in connection with the constructive or total loss of the
FPSO.  
  
 21.4 Repairs. Notwithstanding any
other provision to the contrary contained in this Charter (including but not limited to Charterer’s general obligations to repair and maintain the FPSO), if any repairs to the FPSO are required as a result of casualty loss or other insurance
covered loss, such repairs shall be handled in the manner set forth in this Clause 21.4. In the event of damage resulting in less than a total or constructive total loss of the FPSO, Owner shall immediately consult with Charterer and if the FPSO is
repairable in the reasonable opinion of Charterer and its surveyors, Owner shall proceed with the repair of the FPSO. Owner shall use its Best Efforts to ensure that repair work is carried out in an expeditious manner. 
  

 69 

 ARTICLE 22 
 AUDIT 
  
 Owner shall maintain books and
records relating to this Charter, the FPSO Work and the Services in accordance with generally accepted accounting principles of the appropriate jurisdiction applied on a consistent basis with all prior periods and shall retain such books and records
for a period of not less than two (2) years after termination of this Charter. Charterer and its Personnel shall have access at all reasonable times to the books and records maintained by Owner relating to any reimbursable costs (including, but not
limited to, Insurance Reimbursables, and Owner’s upfront start-up costs under Clause 9.3(i)(b), upfront budgeted estimated costs under Clause 9.3(i)(c)), Early Termination Payment calculations for any termination prior to the Delivery Date,
Demobilization Costs, and taxes, duties and other similar charges provided for in this Charter and the FPSO’s operations and shall have the right to audit such books and records at any reasonable time or times during the Term and during such
additional two (2) year period for the purpose of determining the correctness of the charges made to Charterer and of compliance with this Charter. For the purposes of such audit, Charterer shall have the right to examine, in Owner’s offices,
during business hours and for a reasonable length of time, books, records, accounts, correspondence, instructions, specifications, plans, drawings, receipts and memoranda insofar as they are pertinent to those audit rights or for verifying invoices
and shall be entitled to copies (free of charge) of all such data, documentation and supporting information. Owner shall reconcile its books and records in accordance with the results of any such audit, and Charterer or Owner, as the case may be,
shall promptly pay any adjustments necessary to give effect to such reconciliation. This Article 22 shall survive termination of this Charter for any cause. 
  
 ARTICLE 23 
 VARIATIONS

  
 23.1 Generally 
  

	 	(i)	Variations in the Services or variations to the Specifications shall only be made in accordance with the provisions of this Article 23. 

  

	 	(ii)	Without limiting the foregoing and for illustrative purposes only, the following would be regarded as a variation in the Services or the Specifications, without prejudice to the
provisions in this Article regarding variation proposals and Variation Orders: 

  

	 	(a)	the FPSO receives Crude Oil having characteristics different from those set forth in the Specifications which thereby affects the operability of the FPSO or necessitates
re-engineering or equipment modifications; provided, that such change in Crude Oil is not caused or contributed to by Owner Group; 

  

	 	(b)	instructions are issued by Charterer which would result in a change to the Specifications; 

  

	 	(c)	any change in applicable law, including any treaty, decree, regulation, or Classification Society requirement occurring after the Contract Date which has an adverse impact on either
Party in connection with its performance of this Charter; or 

  

 70 

	 	(d)	information or data for which Charterer is responsible under the Charter is found to be inaccurate, inadequate, incomplete or materially differs from the actual conditions at the
FPSO Site, thereby giving rise to delay or cost consequences.  

  

	 	(iii)	Without limiting the foregoing and for illustrative purposes only the following would not be regarded as a variation in the Services or the Specifications: 

 

	 	(a)	activities or resources to the extent necessitated, in whole or in part, by the act, error, negligence or omission of Owner Group; or 

  

	 	(b)	activities or resources to the extent necessitated, in whole or in part, by Owner Group’s failure to comply with any provision of this Charter. 

  
 23.2 Charterer’s Request for Variation. Charterer may, at
its sole discretion, at any time, and from time to time, request in writing a variation to the Services, the FPSO Work or to the Specifications and Owner shall (subject to this Article 23) implement said variation and said variation shall not in any
way be construed as invalidating this Charter or any ancillary document, but shall form part of the Services. However, Owner shall not be obligated to proceed with any variation which would entail changes to the FPSO or the Services or the
Specifications that are in Owner’s reasonable opinion, outside the general intent of this Charter, or would, in Owner’s reasonable opinion, render the FPSO unsafe as determined by the Classification Society. 
  
 23.3 Variation Proposal Procedures. If Owner receives any
document, request or instruction from Charterer or an event (other than as specified in Clause 23.1(iii)) occurs, any of which Owner considers would constitute a variation to the Services, the FPSO Work or the Specifications, it shall as soon as is
reasonably practical advise Charterer in writing as to the circumstances or happening of said occurrence. In that case, or if Charterer requests a variation, with reasons therefor, under Clause 23.2, Owner shall issue a written variation proposal to
Charterer providing: 
  

	 	(i)	a detailed technical narrative description of that which Owner considers constitutes the variation with a full and precise list of impacts and interfaces; 

 

	 	(ii)	a detailed calculation as to increase or decrease in compensation or Hire Rate payable to Owner required for performing the proposed variation; and 

  

	 	(iii)	a detailed calculation utilizing the procedure set out in this Article 23 as to any anticipated impact upon the Schedule due to the proposed variation (together, when relevant, with
any previously uncalculated cumulative impact of earlier variations). 

  
 23.4 Owner’s Variation Proposal; Variation Order. On receipt of a written variation proposal from Owner, Charterer may accept or reject it in its reasonable discretion. If Charterer reasonably
determines that a Variation Proposal constitutes a variation in the Services and accepts the variation proposal, Owner shall issue a 
  

 71 

 Variation Order for signature by both Parties incorporating the terms of the variation proposal. A
Variation Order when so signed shall be binding on both Parties, Owner shall execute the change as provided by such Variation Order, and the subject matter of and Charterer’s performance under the Variation Order shall be governed by the
provisions of this Charter. 
  
 23.5 Increase in
Compensation. Any Variation Order under this Charter that causes an increase in the compensation payable to Owner shall include such increase payable in accordance with any of the following, as Owner and Charterer may in writing agree:

  
  

											
	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 
	 
	 
	 
	 
	 
	 	  	 	  	 	  	 	  	 	  	 

  
 23.6
Variation Order Costs. The basis for the costs referred to in Clause 23.5 includes all costs directly arising from performance of the applicable Variation Order; that is, Subcontractor costs, materials’ costs, financing costs and
Owner’s reasonable overhead costs. If the Variation Order is performed by Owner Personnel, then the cost referred to in Clause 23.5 above shall be limited to the actual additional wage costs incurred by Owner and actual additional travel
accommodation and subsistence charges directly arising from such Variation Order. Owner shall, in accordance with Clause 23.3(ii), have presented Charterer with a detailed calculation that will be the budgetary cost basis of the applicable Variation
Order. 
  
 23.7 Implementation of Variation Order.
Owner shall not commence implementation of a variation with respect to the Specifications (other than in the instance of an emergency as determined in Owner’s reasonable discretion to be notified immediately to Charterer in writing) until it
has received a Variation Order signed by Charterer Representative in respect of such variation to the Specifications. 
  
 23.8 Written Authorization. Owner shall not invoice and Charterer will not be obliged to pay any compensation in respect of any variation
which has not been authorized by Charterer by means of a written Variation Order signed by Charterer. 
  
 23.9 Alteration and Installation of Additional Equipment. Charterer shall, prior to the Delivery Date, have the right to issue proposals for
alterations to or installation of additional equipment on the FPSO, with the consent of Owner which consent shall 
  

 72 

 not be unreasonably withheld. Owner may be invited by Charterer to tender for such alteration or
installation work and if Owner were awarded such work, Owner and Charterer will enter into a separate written agreement to cover such alteration or installation. If such work is awarded to a Third Party, such work shall be performed in strict
compliance with Owner’s safety standards and shall be integrated into the systems onboard the FPSO in a manner reasonably requested by Owner. If an alteration or installation of equipment on the FPSO increases the costs or time of Owner’s
performance of the Services, Owner shall have the right to issue a Variation proposal under this Article 23 and the Parties shall endeavor to mutually agree upon a Variation Order or amendment of this Charter to cover such increased costs.

  
 23.10 Charterer’s Right of Audit.
Charterer is entitled to audit all payments for Variation Orders under which compensation is payable in accordance with Clause 23.5(iii). Charterer is entitled to perform such audit during and after the Term. Charterer’s right to audit will
terminate two (2) years after the end of the Term. 
  
 23.11
Variation Order Procedures and Formats Charterer and Owner agree, promptly after the Contract Date, to create and institute Variation Order procedures and formats, which will be agreed to by the Parties. 
  
 ARTICLE 24 
 ASSIGNMENT AND SUBCONTRACTING 
  
 24.1 Assignment by Charterer. Charterer may not assign its rights and obligations under this Charter to any other Person except: 
  

	 	(i)	to an Affiliate of Charterer (in respect of which, at the time of the assignment, there is no intention or expectation that it will cease to be an Affiliate) or to a Co-Venturer;

  

	 	(ii)	to any party other than an Affiliate of Charterer or Co-Venturer with the prior written consent of Owner, which shall not be unreasonably withheld or unduly delayed, or

  

	 	(iii)	in accordance with the assignment of purchase right and Option provisions in Article 15 above. 

  
 Any assignment referred to in this Clause 24.1 shall be subject to the further condition that the assignee shall perform all
the obligations of Charterer under this Charter from the effective date of the assignment and that such assignee shall execute the QEL agreeing to perform Charterer’s obligations thereunder. Further, Charterer shall provide and keep in effect
the Charterer Guarantee or shall cause equivalent security to be furnished with respect to the assignee’s obligations hereunder. 
  
 Notwithstanding any provision to the contrary contained in this Charter, no prior consent shall be required in the event of a corporate merger or
consolidation or sale of stock or other conveyance where the principal effect of such transaction is the change of control or corporate merger or consolidation of the ultimate owner of either Party with or into another entity, provided that: (a) the
resulting entity is of the same or better credit rating than the Charterer, as determined by Standard & Poor’s Rating Services or by Moody’s Investors Services immediately after such merger or 
  

 73 

 consolidation, and such entity agrees to obtain and provide a guaranty in a substantially similar format
to that provided by Charterer; and (b) the resulting entity enters into an identical QEL with the Owner’s Lenders. 
  
 24.2 Charterer’s Obligations Upon Assignment. Except with respect to an assignment to an Affiliate, with effect from the effective date
of an assignment pursuant to Clause 24.1, Charterer shall be relieved from directly performing its obligations under this Charter but no such assignment shall relieve Charterer from any liability of Charterer prior to the effective date of such
assignment or any liability of Charterer Guarantor under the Charterer Guarantee. 
  
 24.3 Assignment by Owner. Except as otherwise provided below, Owner shall have no right to assign this Charter, provided, Owner may assign the right to receive compensation and other payments, if any,
due to Owner by Charterer under this Charter, and Owner shall, as hereinafter provided, have the right to assign this Charter to an Affiliate. 
  
 24.4 Transfer of the FPSO; Assignment to Affiliate of Owner. Except as provided for in Clause 24.3, Owner shall have no right to transfer
the FPSO, or assign its rights or obligations under this Charter or the Building Contract; except that Owner may transfer the FPSO and assign all of its rights and obligations hereunder (including those associated with the Services) or the Building
Contract to an Affiliate if the provisions of Clause 4.7 and Clause 8.2(i)(j) continue to be satisfied pursuant to their terms and the provisions of Clauses 24.3 and 24.5 are satisfied Any such transfer and assignment shall not relieve Owner or
Owner Guarantor of its obligations hereunder or under the Owner Guarantee, respectively, except as may be otherwise provided in the Novation Agreement. 
  
 24.5 Novation Agreement. In the event Owner elects to assign all of its rights, title and obligations under this Charter, the FPSO or the
Building Contract to an acceptable Affiliate or other permitted transferee, Charterer, Owner and such Owner Affiliate or other permitted transferee shall enter into a Novation Agreement (the form of which is appended hereto as Attachment L), which
Novation Agreement shall, with respect to the FPSO, this Charter and the rights and obligations to be assigned, set forth the Parties rights and obligations hereunder with respect to such assignment but Owner shall, if a substitute or equivalent
guarantee acceptable in writing by Charterer is not provided on behalf of Owner under the Novation Agreement, guarantee performance by any permitted assignee of all of Owner’s obligations under this Charter, which obligations shall continue to
be supported by the Owner Guarantee, which shall remain in full force and effect. 
  
 24.6 Owner’s Subcontract Rights. Owner shall have the right to subcontract its obligations in respect of parts of the Services and its obligations to reputable Subcontractors, and Owner shall, as of
the Contract Date, and thereafter during the performance of the Services, provide to Charterer a current list of all Subcontractors. Any such subcontract shall not: 
  
 (i) relieve Owner or Owner Guarantor of any of the obligations or liabilities under this Charter; 
  

 74 

	 	(ii)	remove Owner’s responsibility for the acts or omissions of any assignee or Subcontractor or other members of Owner Group; nor 

  

	 	(iii)	require Charterer to pay any compensation whatsoever other than that payable in accordance with this Charter. 

  
 24.7 Charterer’s Right to Review Subcontracts. At
Charterer’s request, Owner shall submit for Charterer’s review copies of 

					
	 individual subcontracts that Owner proposes to enter into for the performance of the Services provided that,
	 	 	  	 
	 	 	 	  	 

 all price information shall be redacted from any such subcontract. 
  
 24.8 Breach of Charter by Subcontractor or Contractor. No
subcontract or breach or default of or by any Subcontractor or other member of Owner Group shall relieve Owner from any obligation under this Charter, and Owner shall be responsible for any act, neglect, or omission of any Subcontractor or other
member of Owner Group as though such act, neglect, or omission were that of Owner under the provisions of this Charter. 
  
 24.9 Charterer’s Sub-Charter Rights. Charterer may, without limitation, except as otherwise provided in Clause 24.1, sub-charter the
FPSO but Charterer shall remain responsible for the continued performance of the obligations of Charterer hereunder. 
  
 ARTICLE 25 
 REDELIVERY OF FPSO 
  
 25.1 Redelivery. The FPSO shall, as soon as practical (and in
any event within ninety (90) Days) following the expiration or termination of this Charter (unless terminated by reason of the occurrence of total loss or a constructive total loss, requisition or as otherwise provided in Article 20 or Article 21),
or unless otherwise instructed by Charterer, be demobilized by Owner. Subject to Clause 25.2 hereof, on termination of this Charter for any reason whatsoever, unless the Option shall have been exercised as contemplated in Article 15 hereof, Owner
hereby agrees to accept redelivery of the FPSO on an “AS-IS, WHERE-IS, WITH ALL FAULTS” BASIS, WITHOUT ANY WARRANTIES, WHETHER EXPRESS OR IMPLIED, IN REGARD TO ITS CONDITION OR OPERABILITY. 
  
 25.2 Demobilization Costs. On termination of this Charter,
unless it is a cancellation under Clause 3.5, or a termination by Charterer pursuant to Clause 17.3 or Clause 18.3(ii)(a) (for reasons in either Clause 18.3(i)(a) or Clause 18.3(i)(c)), Article 20 or Article 21, Charterer shall (subject to the
provisions of Clause 17.2 (concerning Clause 17.1(i) terminations)) reimburse Owner for the costs of safely disconnecting the FPSO from the Riser Facilities and pay to Owner the Demobilization Costs as set forth in Appendix B,
Part A. 
  
 25.3 Crude Oil and
Processed Oil. Any residual Crude Oil or Processed Oil not offloaded by Charterer at the end of the Term or Extended Term shall be retained on board by Owner and Owner shall, at Charterer’s cost, remove the Crude Oil and Processed Oil
and store same safely for Charterer at an accessible storage location nearby the FPSO location. 
  

 75 

 25.4 Charterer Supplied Items. In the event of termination as contemplated in Clauses 17.1,
17.3, 17.4, 18.3, 26.3 and 35.2, 

					
	 Charterer may, in its sole discretion, either: (i) transfer to Owner, for 
	  	 	  	all of the right, title and interest which

 Charterer may enjoy in and to the Charterer Supplied Items (WHICH OWNER SHALL ACCEPT ON AN
“AS-IS, WHERE-IS” BASIS, WITHOUT ANY WARRANTIES, WHETHER EXPRESS OR IMPLIED, IN REGARD TO THEIR CONDITION OR OPERABILITY); or (ii) require Owner (and Owner hereby agrees, upon written request from Charterer) to transport the FPSO from the
FPSO Site to an onshore base designated by Charterer and disconnect and remove such Charterer Supplied Items from the FPSO. The costs under option (ii) above shall be reimbursed by Charterer to Owner and shall include but shall not be limited to (a)
all lifting expenses and reasonable costs, without mark-up, of delivering such Charterer Supplied Items to Charterer, (b) all transportation costs necessary in order to deliver such Charterer Supplied Items to a nearby onshore base in Malaysia or
Singapore designated by Charterer, and (c) loss of hire by Owner which shall be compensated by Charterer paying the Hire Rate from the time the FPSO departs the FPSO Site and for each Day thereafter until the Charterer Supplied Items have been
delivered to Charterer, provided, that Owner shall use its Best Efforts to timely complete such works to minimize the liability of Charterer. Notwithstanding the foregoing, the Charterer shall owe no compensation to Owner under sub-clause (c) above
in the event this Charter is terminated pursuant to Clauses 17.3, 18.3(i)(a) or 18.3(ii)(a) for reasons described in Clause 18.3(i)(a). 
  
 ARTICLE 26 
 FORCE MAJEURE

  
 26.1 Force Majeure. Subject to the
provisions of Clause 26.2, neither Party shall be liable for any failure to perform any of its obligations under this Charter (except for, in the case of Charterer, Charterer’s obligation to pay the Hire Rate, reduced Hire Rate set forth in
Clause 26.2 below and any other payments due Owner by Charterer under this Charter, and, in the case of Owner, any payments or reduced Hire Rate amounts owed or to be credited by Owner to Charterer) or for any delay in performing any such
obligations to the extent that such failure arises due to an event of Force Majeure. To the extent that a Party is delayed in performing or unable to perform its obligations under this Charter due to an event of Force Majeure, such inability shall
not be deemed a breach of this Charter; provided, however, such Force Majeure shall not relieve that Party of liability in the event of its failure to use due diligence to remedy the situation and remove the Force Majeure in an adequate manner and
with all reasonable dispatch, nor shall such event of Force Majeure relieve a Party of liability unless it gives written notice of the full particulars of the same to the other Party as soon as reasonably possible after the occurrence relied on, and
like notice shall be given upon termination of such Force Majeure conditions. Both Parties shall use their Best Efforts to reduce unnecessary costs associated with any event of Force Majeure. 
  
 26.2 Hire Rate During Force Majeure. Notwithstanding any other
provisions to the contrary contained in this Charter, during any event of Force Majeure occurring after the Ready for Commissioning Date and during the Term, the Hire Rate shall continue to accrue and, following the Delivery Date, shall be paid to
Owner at the rates and for the periods set forth below: 

																					
	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 	  	 

  

 76 

 If any Force Majeure occurs during the period when any reduced Hire Rate is in effect under the terms of
this Charter (other than this Clause 26.2), the percentages payable in the above table shall be deemed to be expressed as a percentage of such reduced Hire Rate. Owner shall reimburse to Charterer such amounts (whether at full Hire Rate or any
reduced Hire Rate) paid by Charterer to Owner under this Clause 26.2 within thirty (30) Days after Owner receives payment from underwriters with respect to such amounts, if underwriters make such payment. Owner agrees that for any Force Majeure
period it will file and use Best Efforts to obtain insurance recoveries from its underwriters or protection and indemnity club for all insured losses due to such Force Majeure event. 
  
 26.3 Charterer’s Force Majeure Termination Right. If any condition of Force Majeure continues for a
period of ninety (90) consecutive Days, Charterer shall have the right to terminate this Charter at any time after such ninetieth (90th) Day on thirty (30) Days prior written notice to Owner. A termination of this Charter under the provisions of
this Clause 26.3 shall be subject to payment by Charterer of the U.S. dollar amount obtained by multiplying the applicable Early Termination Payment by a factor of 0.95. In addition, Charterer shall pay to Owner all reasonable FPSO
Demobilization Costs. 
  
 26.4 Owner’s Force Majeure
Termination Right. If any condition of Force Majeure continues for a period of two hundred-forty (240) consecutive Days and Charterer has not terminated the Charter hereunder, Owner may request in writing that the 

			
	 percentage of Hire Rate payable to Owner be increased from its then current 
	  	 

			
	 	  	Hire Rate with effect from the two hundred and forty-first (241st) Day of such

 Force Majeure event onwards. Charterer shall reply in writing within seven (7) Days after
receipt of such notice from Owner either accepting or rejecting such increased Hire Rate request. In the event Charterer rejects such request or fails to respond to such request within seven (7) Days after receipt of the request, Owner may terminate
this Charter upon giving ten (10) Days’ prior written notice of termination to Charterer, and Charterer shall be required to pay Owner the Early Termination Payment 

			
	and Owner’s Demobilization Costs. In the event Charterer accepts Owner’s request, Charterer shall pay Owner 	  	 

			
	 	  	the Hire Rate from the two hundred and forty first (241st) Day of such Force Majeure onwards until the Force Majeure

 event ceases; provided, however, that Owner may at any time after three hundred (300)
consecutive Days of such Force Majeure elect to terminate this Charter by notice in writing to Charterer and shall be entitled to be paid the Early Termination Payment and Owner’s Demobilization Costs. 
  

 77 

 ARTICLE 27 
 PATENT INDEMNIFICATION 
  
 27.1 Owner’s Indemnification Obligation. Owner shall save, indemnify, defend, protect and hold harmless Charterer Group from any Claims suffered or incurred by Charterer Group based on a claim that the FPSO, or any
design or technology with respect thereto, or any item of equipment or part thereof furnished hereunder by Owner Group (including all Owner Property) or their use by Charterer infringes any intellectual property rights or patents of any Third
Party. Charterer shall notify Owner promptly in writing for the defense of same. Owner shall pay all damages and costs awarded therein against Charterer and in addition shall reimburse Charterer for its legal costs and expenses incurred in
connection with such claim. In case the FPSO, or any design or technology with respect thereto, or any item of equipment or any part thereof or their use by Charterer is held in such suit to constitute infringement or if Charterer is restrained by
any court order from keeping or using the same, Owner shall, at its own expense, either procure for Charterer the right to continue using the FPSO or said design, technology or equipment in the same manner as before, or replace the same with
non-infringing components or equipment, or modify it so it becomes non-infringing, in both cases without diminishing the efficiency or effectiveness of the FPSO or other equipment. 
  
 27.2 Charterer’s Indemnification Obligation. Charterer shall save, indemnify, defend, protect and
hold harmless Owner Group from any Claims suffered or incurred by Owner Group based on a claim that any item of Charterer Property or any design or technology with respect thereto or part thereof furnished by Charterer Group infringes any
intellectual property rights or patents of any Third Party. Owner shall notify Charterer promptly in writing for the defense of same. Charterer shall pay all damages and costs awarded therein against Owner and in addition shall reimburse
Owner for its legal costs and expenses incurred in connection with such claim. 
  
 27.3 Intellectual Property Ownership and License. All intellectual property made discovered or developed solely by Owner prior to, in course of, or by reason of, the performance of the FPSO Work or the
other Services for Charterer required by the terms of this Charter shall be the property and copyright of Owner and is to be considered to be confidential information of Owner (to which Article 32 will apply). Owner shall grant and does hereby grant
to Charterer and the Co-Venturers a worldwide, non-assignable, non-exclusive, royalty free, irrevocable and perpetual license to use such intellectual property for any of its operations under this Charter. 
  
 27.4 Improper Use. Notwithstanding the foregoing, neither
Owner nor Charterer shall have any liability to the other for any indemnification and hold harmless provisions hereunder with respect to any infringement claim based on use of the product or equipment in question either (i) with other equipment,
products or software not within the Specifications; or (ii) in any manner inconsistent with the terms of this Charter. 
  

 78 

 ARTICLE 28 
 INDEMNITIES AND LIABILITIES 
  

																	
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

 79 

																			
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

	 	

  

 80 

															
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

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 ARTICLE 29

 INSURANCES 
  
 29.1 General. Without limiting any of its obligations and responsibilities under this Charter, including without limitation Article
28, with effect from the Contract Date (unless otherwise specifically provided in this Article 29), Owner shall obtain and maintain, or cause to be obtained and maintained, in full force and effect, insurance with a financially sound and reputable
insurance company or companies and a protection and indemnity club acceptable to Charterer on terms and conditions and with policy limits that are customary for owners and operators of an FPSO in similar circumstances and as provided hereafter, and
shall comply with all requirements of the national, local and/or other governmental authority(ies) and/or appropriate and/or regulatory authority(ies) where the FPSO Work and the other Services are to be performed and the FPSO Site is located. All
such insurance shall be primary and noncontributory and shall be exclusive of any existing valid and collectible insurance carried by Charterer Group for those risks and liabilities expressly assumed by Owner under this Charter. Reasonable
deductibles are acceptable and shall be for the account of the responsible Party in accordance with this Charter unless otherwise provided in the FPSO Operating and Maintenance Agreement. Owner shall be entitled to assign all or any of its rights
under the insurances to be obtained and maintained by Owner, by way of security, to Owner’s Lenders, provided that pursuant to the provisions of the QEL, Lender honors (i) Charterer’s rights under this Charter to receive a reimbursement of
insurances in certain situations as per Clause 29.6 and (ii) Owner’s obligations to repair the FPSO in the event of any loss or damage to the FPSO or its equipment, provided in each case Charterer continues to pay required Hire Rate under the
terms of this Charter. 
  

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 29.2 Policy Provisions with Respect to all Policies and Coverages. 
  

	 	(i)	30-Day Notice Provisions. All of the policies required to be obtained by Owner shall contain thirty (30) Day notice provisions for material change or cancellation to
be provided to Charterer by insurers (or, if insurers will not provide direct notice, such notice will be provided to Charterer by Owner), except in respect of war and terrorism coverage where customary notice of cancellation provisions shall apply,
and such policies shall have adequate territorial and navigation limits for the location of the FPSO Work and the other Services, including, without limitation, off-shore operations at the FPSO Site. 

  

	 	(ii)	Certificates of Insurance. Within twenty (20) days of the Contract Date, Owner shall furnish to Charterer certificates of insurance coverage for the insurance the
Owner is obligated to provide under this Article 29 (except for those insurances Owner is not required to obtain until a later date pursuant to the terms of this Article 29 which shall be provided by Owner at such times), signed by an authorized
representative of the broker or insurers evidencing the coverages, limits, endorsements and extensions required under this Charter. Commencement or performance of FPSO Work or Services without delivering such certificate of insurance shall not
constitute a waiver of Owner’s obligation to provide the required insurance. Charterer shall have the right to withhold payment of Owner’s invoices for any payments under this Charter until receipt of such certificates. Renewal
certificates shall be obtained by Owner as and when necessary and forwarded to Charterer as soon as they are available, but in any event within fourteen (14) Days prior to each renewal date. Owner shall furnish the Charterer from time to time on
request, and in any event at least annually, with copies of all insurance policies, cover notes and other documents evidencing the creation and renewal of the insurance required under this Charter. 

  

	 	(iii)	Contractor’s or Subcontractor’s Insurance. Owner shall ensure that any Subcontractor engaged by Owner or Contractor procures and maintains insurance
consistent with but not overlapping with the insurance provided in this Article 29 (having regard to the nature of the work performed by Builder, Contractor or any such Subcontractor), together with such other insurance as may be required by law.
Any deficiencies in the coverage or limits of their Subcontractors’ insurance and any and all deductibles shall be the sole responsibility of Owner. 

  

	 	(iv)	Minimum Requirements. The limits specified in Clauses 29.3 and 29.4 are minimum requirements and shall not be construed as being a limitation of either liability or
indemnity or as constituting acceptance by Charterer of responsibility for financial or other liabilities or indemnities in excess of such limits. 

  

	 	(v)	Charterer’s Rights on Owner’s Failure to Provide Insurance. If Owner fails or refuses to obtain any insurance required under this Article 29 or to provide
Charterer with written evidence of insurance when required, Charterer shall have the right but not the obligation, to procure this insurance at Owner’s expense (to the extent of additional insurance costs thereby arising), and any amounts paid
by Charterer for this purpose shall immediately become due and payable by Owner to Charterer. 

  

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	 	(vi)	Notice of Claims. Owner shall notify Charterer immediately upon receipt of any notice of claims, incidents or demands or of any situation which may give rise to such
claims or demands being made under the insurance required under this Article 29. Written notice shall be given as soon as possible and not later than five (5) calendar Days after the Owner becomes aware of the occurrence of any accident. For serious
accidents (including but not limited to death or serious injuries) notice shall be given immediately after the Owner becomes aware of the occurrence of any such accident and shall be confirmed in writing by Owner. 

  

	 	(vii)	Assistance by Each Party. Each Party shall give to the other all reasonable assistance that may be required for the preparation and negotiation of insurance claims.

  

	 	(viii)	Prevention of Loss or Damage. Owner shall at all times take all necessary precautions to prevent loss or damage to the work performed in connection with the FPSO Work,
the other Services and this Charter, the FPSO, or any part thereof, the Additional Equipment and other Charterer Property and Owner shall not do anything or permit any of its Subcontractors and Contractor and Contractor Group to do anything whether
on or off the FPSO Site which would or might render void or voidable any policy of insurance required under this Article 29. 

  

	 	29.3	Insurances and Coverages 

  

	 	(i)	“Construction All-Risk” Policy. At all times after the Contract Date and during refurbishment and conversion of the FPSO and installation, hook up, testing,
mobilizing, commissioning and until the Delivery Date, Owner shall purchase and maintain, at its sole unreimbursable cost and expense “Construction All-Risk” insurance for full replacement value against all risks of physical loss or damage
to the FPSO and Additional Equipment, including equipment, materials and structures supplied to or provided by Owner or Charterer, whether at the Builder’s on-shore yard or facility, in transit and/or at the FPSO Site, and which are to be
incorporated into the FPSO, except construction tools, equipment and other property belonging to or rented by Owner or Contractor or their Subcontractors. Such Construction All Risk Policy shall include trip and tow and transportation insurance
covering the FPSO (including Additional Equipment) and other property referenced above.  

  

	 	(ii)	Other Required Coverages Prior to Ready for Hydrocarbons Date. Prior to the Ready for Hydrocarbons Date, all relevant insurance required of Owner (and, where
applicable, its Subcontractors including Builder and its Subcontractors) under this Charter shall be endorsed specifically to include the following: 

  

	 	

			
	 	 	 
	 	 	 

  

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	 	(iii)	Other Required Coverages After Ready Hydrocarbons Date. After the Ready for Hydrocarbons Date, all relevant insurance required of Owner (and, where applicable, its
Subcontractors and Contractor and its Subcontractors) under this Charter shall also be endorsed to include the coverages in Clause 29.3(ii) above and shall also include, if necessary in the circumstances, towers liability coverage when towing of the
FPSO is required and coverage for anchor handling operations to the extent same are being performed by Owner, Contractor or Charterer and their Subcontractors. 

  

	 	(iv)	Additional Insured/Joint Entrant Provisions. All insurance required of Owner and its Subcontractors under this Charter shall also contain endorsements that insurers
will have no rights of recovery or subrogation against Charterer in respect of claims which are the responsibility of Owner under this Charter. In addition, prior to the Ready for Hydrocarbons Date, Charterer shall be named as an additional insured
(except with respect to protection and indemnity club coverage) and after the Ready for Hydrocarbons Date, with respect to Charterer interest in such insurance, Charterer shall be named as an additional insured and shall be entered as a joint
entrant with respect to all protection and indemnity club coverage. Such Owner’s agreement to name Charterer as additional insured prior to the Ready for Hydrocarbons Date is made subject to the following conditions: (a) Charterer shall have
the benefit of being named as additional insured (only with respect to claims, demands, suits and actions, resulting from activities and operations connected with this Charter; and (b) the naming of Charterer as an additional insured is not intended
to and shall not derogate from the division of risk and indemnity agreements described in this Charter. Other than in respect of pollution after the Ready for Hydrocarbons Date, Charterer shall not be entitled to assert a claim against Owner’s
P&I Club insurance and other insurances with respect to liabilities and losses assumed by Charterer or as to which Charterer indemnifies Owner under Article 28. 

  

 88 

	 	(v)	Marine Hull and Machinery Coverage. Marine Hull and Machinery Insurance and on all vessels and marine craft (whether navigable or not) and equipment, including but not
limited to hull and machinery owned, leased, chartered or hired by Owner, for no less than the replacement value of such vessels and marine craft insurance providing coverage against losses or damage by such perils and risks on “new for
old” conditions, including war, strikes and confiscation cover. Marine Hull and Machinery Insurance coverage on the FPSO and Additional Equipment—shall commence on and from the Contract Date. Such insurance shall also provide coverage for
any testing, commissioning and related activities before the Delivery Date, to the extent not provided under clause 29.3 (i). 

  

	 	(vi)	P&I Coverage. 

  

							
	 (a)
	  	From the Contract Date. Protection and Indemnity Insurance for the FPSO (including Additional Equipment)
	 	  	and all other Owner owned, non-owned or hired waterborne craft/vessels including but not limited to crew (including Charterer’s Personnel on board or associated with the FPSO
Work, the Services and FPSO operations who have been approved by insurers, unless Charterer is named as a joint entrant), Third Party liability, pollution, wreck, collision, towers liability, anchor handling liability and contractual liability
arising from or in connection with the FPSO Work and other Services under this Charter performed up to the Ready for Hydrocarbons Date to the standard scope and limits of P&I cover and in the case of the FPSO cover for an
	 	  	FPSO entry up 	 	 	  	 

  

							
	(b)	  	From the Ready for Hydrocarbons Date. On and after the Ready for Hydrocarbons Date, with respect to such Protection and Indemnity Insurance and other insurance coverage in
Clause 29.3(vi)(a) above, Owner’s
	 	  	pollution insurance coverage in respect of such liability shall be 	  	 	  	per occurrence,
	 	  	(such amount is referred to as “Pollution Limit”). Owner’s right to limit pollution liability by statute, convention, law or regulation shall be as
set forth in Clause 28.3(i).

  

	 	(vii)	General Liability and Umbrella Coverage. 

  

							
	(a)	  	From Contract Date to Ready for Hydrocarbons Date. General Liability/ Excess Liability on a per accident basis against claims for Third Party property damage (including
loss of use arising therefrom) and personal injury (including bodily injury or death) relating to the FPSO, and as may be required and to the levels required by statute or similar regulation in countries where any such Services are to be performed,
shall be obtained by
	 	  	Owner, 	  	 	  	with respect to Third
	 	  	Party bodily injury and/or property damage (except to the extent this is satisfied by the Protection and Indemnity Insurance in which case this limit does not
apply).

  

 89 

	 	

					
	 (b)
	  	  From the Ready for Hydrocarbons Date. On and after the Ready for Hydrocarbons Date, such General
	 	  	  Liability/ Excess Liability coverage in Clause 29.3(vii)(a) above and in this Clause 29.3(vii)(b) shall cover
	 	  	  Charterer (to the extent of Owner and Contractor’s responsibility under this Charter and the FPSO Operating
	 	  	  and Maintenance Agreement), Owner, Contractor, and Owner and Contractor’s relevant Affiliates on an
	 	  	  occurrence and per accident basis for the same third party property damage and personal injury or death as
	 	  	  required in said Clause 29.3(vii)(a) 	  	 

  

	 	(c)	Additional General Liability Coverages. Such insurance in sub-clauses (a) and (b) above of this Clause 29.3(vii) shall include coverage for: contractual liability; broad form
property damage; independent contractors; products liability and completed operations liability; severability of interest; in rem; and personal injury; shall be subject to watercraft exclusion, provided that watercraft are not excluded under
Owner’s P&I coverage. 

  
 29.4 Other
Required Insurance Provisions, Limits and Coverages. All insurance required of Owner under this Charter shall include the following with limits not less than and coverage not inferior to those specified below, all acceptable to
Charterer: 
  

	 	(i)	Workers’ Compensation/Employer’s Liability. Workers’ Compensation and Employer’s Liability Insurance (including but not limited to maritime
liability coverage) or similar statutory social insurance as required by applicable law at the FPSO Site and all other sites where the Services will be performed or P & I coverage (in respect of employer’s liabilities to crew) providing
coverage for all Owner’s employees and agents engaged in accomplishing the Services. Owner shall ensure that its Subcontractors and Contractor and its Subcontractors maintain insurance for such purpose in respect of their employees. Such
insurance shall be endorsed so that claims formulated by Owner Group’s Personnel against Charterer are treated as claims against Owner and covered by such insurance. Such insurance may, with respect to, the FPSO crew be substituted by cover
under Protection and Indemnity Insurance. All such insurance shall be endorsed so that claims by Owner Group’s Personnel against Charterer are treated as claims against Owner and covered by Owner’s insurance. 

  

	 	(ii)	Automobile Coverage. At all times during the Term, Automobile Liability Insurance covering all owned, hired, leased, rented and non-owned automobiles and automotive
equipment, used by Owner Group (including Contractor Group) in connection with the execution of the FPSO Work and other Services, as may be required and to the levels required by statute or similar regulation in countries where such Services are to
be performed. 

  

	 	(iii)	Removal of Debris Coverage. From and after the Sailaway Date, there shall be included under the Protection and Indemnity Insurance or the 

  

 90 

					
	 	 	 	 	 
	Marine Hull and Machinery Insurance or other insurance, a separate limit of 	 	 	 	of voluntary removal

 of debris coverage, which shall apply if Charterer reasonably determines that the wreck or
debris from the FPSO interferes with Charterer’s current or expected operations or wreck or debris from the FPSO subjects Charterer to potential liability or damage. 
  

	 	(iv)	Other Insurance. Any other insurance which may be required by applicable law. 

  
 29.5 Insurances under the FPSO Operating and Maintenance Agreement; No Duplication. From and after the
Delivery Date, Owner shall purchase and maintain all insurances on the FPSO and Additional Equipment required by this Charter. All Protection and Indemnity Insurance coverage taken out in Owner’s name with its P&I Club shall name Charterer,
in its capacity as an FPSO charterer, and Contractor as joint entrants in such P&I Club with respect to the FPSO and its operations in accordance with the standard scope and limits of P&I cover for an FPSO In addition, with respect to all
other insurances, Contractor and Charterer shall be named as additional insureds and in the case of Contractor, loss payee. Charterer shall reimburse Owner for all insurance costs under this Article 29 arising after the Delivery Date; provided that
Owner shall not be entitled to such reimbursement to the extent Contractor has been reimbursed under the FPSO Operating and Maintenance Agreement for such insurance coverage. 
  
 29.6 Insurance Proceeds. In the event of requisition or seizure (under Article 20) or an actual or
constructive total loss (under Article 21) of the FPSO, Owner shall be entitled to that portion of the insurance proceeds applicable to the FPSO as more fully described in the Specifications. Subject always to lender’s rights to receive
assigned insurance proceeds in accordance with Clause 29.1, Owner shall pay to Charterer any insurance amounts due and owing to Charterer (including but not limited to Additional Equipment) if any, under this Charter within fifteen (15) Days after
Owner receives payment from insurers (under its insurance coverage described in this Article 29) as a result of the risks referred to in this Article, if its insurers make such payment. 
  
 ARTICLE 30 
 NOTICES 
  
 All notices and certificates sent by either Party to
the other shall be in writing and shall be by personal or courier delivery or registered letter, return receipt requested, or by facsimile. 
  
 If such notice is to Owner, it shall be sent to: 
  

							
	 	 	 Malaysia International Shipping Corporation Berhad        
	 	 
	 	 	 Level 28, Menara Dayabumi,
	 	 
	 	 	 Jalan Sultan Hishamuddin
	 	 
	 	 	 50050 Kuala Lumpur
	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

  

 91 

									
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	With copy to:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

  
 If such notice is to
Charterer, it shall be sent to: 
  

									
	 	 	Murphy Sabah Oil Co., Ltd.	 	 	 	 	 	 
	 	 	Level 26, Tower 2, Petronas Twin Towers	 	 	 	 	 	 
	 	 	Kuala Lumpur City Centre, 50088	 	 	 	 	 	 
	 	 	Kuala Lumpur, Malaysia	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

  
 Any notices provided for herein shall
be deemed to have been given or delivered, unless otherwise expressly provided herein, at the time of receipt when delivered in person or by courier at the specified address of the other Party, as shown by personal messenger’s or courier’s
delivery or tracking receipt. Time of receipt in this context shall be construed to be the following normal Business Day at the location of the recipient if received after normal working hours in this location. Notices sent by registered letter
shall be deemed delivered on the (3rd) Business Day after the registered letter’s post mark. Notices sent by
facsimile shall be deemed received at the time of receipt in a legible form if sent by facsimile addressed to the recipient at the facsimile number at which it is to receive facsimiles. Time of receipt in this context shall be construed to be the
following normal Business Day at the location of the recipient if received after the normal business hours in such location. Either Party may change its address or facsimile number for receiving notices by giving not less than fourteen (14) Days
prior notice in writing to the other Party of such change. 
  
 ARTICLE 31 
 APPLICABLE LAW AND ARBITRATION 
  
 31.1 Governing Law. This Charter and all Appendices shall be governed, construed and interpreted
exclusively by the laws of Malaysia applying the general principles of international law, excluding any choice of law or conflicts of law rules that would require the application of the laws (other than the general principles of international law)
of another jurisdiction. 
  
 31.2 Dispute
Resolution. 
  

	 	(i)	Uncitral Rules; Administering Authority. Subject to Clause 31.3 and Clause 31.4, any dispute, controversy or Claim arising out of or in relation to or in connection with this
Charter and all Appendices, including without limitation any dispute as to the construction, validity, interpretation, enforceability, performance, expiry, termination or breach of this Charter whether based on contract, tort or equity, shall be
exclusively and finally settled by arbitration without the right to appeal in accordance with the UNCITRAL ARBITRATION RULES currently in force as of the date of this Charter and with this Article 31 the appointing and administering authority shall
be the Malaysian Regional Centre of Arbitration (“RCA”). Any Party may submit such a dispute, controversy or claim to arbitration by notice to the other Party. 

  

 92 

	 	(ii)	Number of Arbitrations. The arbitration shall be heard and determined by three (3) arbitrators. Each side shall appoint an arbitrator of its choice within fifteen (15)
Days of the submission of a notice of arbitration. The Party-appointed arbitrators shall in turn appoint a presiding arbitrator of the tribunal within thirty (30) Days following the appointment of both Party-appointed arbitrators. If the
Party-appointed arbitrators cannot reach agreement on a presiding arbitrator of the tribunal or one Party refuses to appoint its Party-appointed arbitrator within said thirty (30) Day period, the appointing authority for the implementation of such
procedure shall be the RCA, who shall appoint an independent arbitrator who does not have any financial interest in the dispute, controversy or claim. All decisions and awards by the arbitration tribunal shall be made by majority vote.

  

	 	(iii)	Venue and Procedures. Unless otherwise expressly agreed in writing by the Parties to the arbitration proceedings: 

  

	 	(a)	The arbitration proceedings shall be held in Kuala Lumpur, Malaysia; 

  

	 	(b)	The arbitration proceedings shall be conducted in the English language and the arbitrator(s) shall be fluent in the English language; 

  

	 	(c)	The arbitrator(s) shall be and remain at all times wholly independent and impartial; 

  

	 	(d)	The arbitration proceedings shall be conducted under the UNCITRAL Rules, as amended from time to time (the “Uncitral Rules”), which Rules are deemed to be
incorporated by reference into this Article 31; 

  

	 	(e)	Any procedural issues not determined under the UNCITRAL Rules shall be determined by the applicable laws of England, other than those laws which would refer the matter to another
jurisdiction; 

  

	 	(f)	The costs of the arbitration proceedings (including attorneys’ fees and costs) shall be borne in the manner determined by the arbitrators; 

  

	 	(g)	The decision of a majority of the arbitrators shall be: (i) reduced to writing; (ii) final and binding without the right of appeal; (iii) the sole and exclusive remedy regarding any
Claims or other claims, counterclaims, issues or accountings presented to the arbitrators; and (iv) promptly paid in United States dollars free of any deduction or offset; 

  

	 	(h)	Any costs or fees incident to enforcing the award, shall to the maximum extent permitted by law be charged against the Party resisting such enforcement; 

  

 93 

	 	(i)	Except as provided in Clause 28.5, no special, incidental, indirect, consequential, exemplary or punitive damages (including loss of profit, loss of production, etc.) shall be
allowed; 

  

	 	(j)	The award shall include interest from the date determined by the arbitration award, and from the date of the award until paid in full, at the Agreed Interest Rate;

  

	 	(k)	Judgment upon the award may be entered in any court having jurisdiction over the Person or the assets of the Party owing the judgment or application may be made to such court for a
judicial acceptance of the award and an order of enforcement, as the case may be; 

  

	 	(l)	The arbitration shall proceed in the absence of a Party who, after due documented and verified notice, fails to answer or appear. An award shall not be made solely on the default of
a Party, but the arbitrator(s) shall require the Party who is present to submit such evidence as the arbitrator(s) may determine is reasonably required to make an award; and 

  

	 	(m)	If the Parties or others who are bound to this or another similar agreement initiate multiple arbitration proceedings, the subject matters of which are related by common questions
of law or fact and which should result in conflicting awards or obligations, then the Parties hereby agree that all such proceedings shall be consolidated into a single arbitral proceeding. 

  
 31.3 Small Disputes. For disputes where the total
amount claimed by either Party does not exceed one hundred thousand United States dollars (U.S. $100,000) and in the case of any other dispute where the Parties so agree in writing, the arbitration shall be conducted in accordance with the Small
Claims Procedure of the London Maritime Arbitration Association. 
  
 31.4 [Intentionally Blank]. 
  
 31.5 Arbitration Provisions Survive. Article 31 shall survive termination of this Charter for any cause. 
  
 ARTICLE 32 
 CONFIDENTIAL INFORMATION

  
 32.1 Confidential Data. 

 

	 	(i)	Owner’s Confidentiality Obligations. Owner acknowledges that all commercial and technical information or data and any other information and data reasonably
understood to be of a confidential nature (whether written, verbal or in electronic form) obtained by Owner Group, or disclosed to Owner Group in the performance of this Charter from Charterer or Charterer Group and/or the Government is confidential
information. Owner warrants that Owner Group shall hold such 

  

 94 

 confidential information strictly confidential and shall not disclose such confidential information to
anyone without the prior written consent of Charterer. Moreover, Owner warrants that Owner Group shall not in any manner use such confidential information in a manner injurious to Charterer or detrimental to the achievement of Charterer’s
objectives. Subject to Clause 27.3, all data, logs, charts, drawings, tracings, documents, calculations, computer printouts and items of a similar nature, produced or developed from Charterer confidential information in connection with this Charter
shall be Charterer’s property, and shall be furnished to Charterer at any time at Charterer’s written request and not later than redelivery of the FPSO; and Charterer shall thereafter have the unrestricted right to use such items. The
above confidentiality obligation shall not apply to confidential information that is provided or disclosed by Owner to: 
  

	 	(a)	an Affiliate, provided such Affiliate agrees in writing to be bound by the provisions of this Article 31; 

  

	 	(b)	the extent such confidential information is required to be furnished in compliance with any applicable laws, or pursuant to any legal proceedings or because of any order of any
court or arbitration tribunal binding upon Owner (but with prior notice to Charterer); 

  

	 	(c)	to outside professional consultants or contractors of Owner provided that they agree in writing to keep the confidential information confidential and agrees in writing not to
disclose the same or use it for any purpose other than that for which it was disclosed; 

  

	 	(d)	a bank or other financial institution to the extent appropriate to Owner’s financing arrangements provided that such bank or financial institution agrees in writing to keep the
confidential information confidential and agrees in writing not to disclose the same or use it for any purpose other than that for which it was disclosed; 

  

	 	(e)	the extent confidential information must be disclosed pursuant to any rules or requirements of any government or stock exchange having jurisdiction over Owner, or its Affiliates; or

  

	 	(f)	the extent that any data or information which, through no fault of Owner Group becomes a part of the public domain. 

  

	 	(ii)	Charterer’s Confidentiality Obligations. Charterer agrees to similarly hold and keep confidential all data and information owned by Owner and Owner Group pursuant
to Clause 27.3. The rights and obligations of Owner set out in Clause 32.1(i) with respect to all Charterer confidential information shall likewise be deemed to apply to Charterer with respect to such Owner confidential information as if
incorporated, mutatis mutandis, in this Clause 32.1(ii) for the benefit of Owner Group. 

  

 95 

 32.2 Press Releases; Announcements. Owner shall ensure that no member of Owner Group makes
any press release or public announcement or publishes any information relating to this Charter without the prior written authorization from Charterer; provided, however, Owner shall not be prohibited from making any press release or public
announcement if necessary to comply with the applicable laws, rules or requirements of any government or stock exchange having jurisdiction over Owner, or its Affiliates. 
  
 32.3 Confidentiality Provisions Survival. Article 32 shall survive termination of this Charter. 
  
 ARTICLE 33 
 ENTIRE AGREEMENT 
  
 This Charter together with its Appendices represents the entire understanding, and constitutes the whole agreement, in relation to its subject matter and supersedes any previous agreement or understanding between the Parties (whether oral
or written) with respect to the matters set forth in this Charter. In the event of any conflict between the provisions of this Charter with the terms or provisions of any Appendix, the terms and provisions of this Charter shall prevail and control.

  
 Whenever the same obligations are required to be performed under the
provisions of both this Charter and the FPSO Operating and Maintenance Agreement, performance of such obligation under either the Charter or the FPSO Operating and Maintenance Agreement shall constitute a performance of the required obligation;
provided, however, that it shall never be an excuse for failure to perform such obligation under either such agreement that either Owner or Contractor was waiting for the other Party to perform under one or both such agreements. Any such failure to
perform shall constitute a breach by the Party required to perform such obligations under the provisions of the respective agreement. 
  
 ARTICLE 34 
 SURVIVAL 

 
 The provision in certain Articles and Clauses that such Articles or Clauses shall survive
termination of this Charter shall not affect and shall be without prejudice to the validity of all other Articles or Clauses in the event of a dispute after termination of this Charter. 
  
 ARTICLE 35 
 RISK ZONE 
  
 35.1 Dangerous
Location. Unless the prior written consent of Owner is obtained, the FPSO shall not be required to continue to or remain in any place (including the Field or the FPSO Site if applicable) nor be used for any service which will cause the FPSO
to be within an area which is dangerous or hazardous to the FPSO, its Master or crew on board the FPSO, as reasonably determined by Owner or Master, (“Risk Zone”), due to any actual or threatened act of war, hostilities,
warlike operations, acts of piracy or of hostility or malicious damage against the FPSO or its cargo by any Person whatsoever, revolution, civil war or civil commotion. 
  

 96 

 35.2 Risk Zone Procedures. If the FPSO is in, or brought in or ordered within any Risk Zone
(even though it may already be at the Operating Area): 
  

	 	(i)	Risk Zone Insurances. Owner may insure its interest in the FPSO for such terms as it deems fit up to its open market value against any of the risks likely to be
involved, and Owner shall provide written notice to Charterer of the amount of any increase in insurance premiums and the period of time such premiums are payable (including the correspondence from the underwriters), and Charterer shall, within five
(5) Days of receipt notify Owner whether Charterer will at its sole option, elect to either: (a) pay on demand any additional or increase in the insurance premiums (and for the period of time), paid by Owner; or (b) terminate this Charter, with no
further obligations to Owner, except for payment of the Early Termination Payment and subject to Charterer’s rights and obligations under Article 25; 

  

	 	(ii)	Removal of the FPSO. If Owner so requests, the FPSO will endeavor to leave the Risk Zone and proceed to a safe place; 

  

	 	(iii)	Failure to Obtain Risk Zone Insurances. If, notwithstanding paragraph (i) above, Owner is unable to maintain insurance coverage (or such insurance is only obtainable
with materially reduced coverage) in consequence of such risks, Charterer must allow the FPSO to move to a safe place and Charterer shall have the right to terminate this Charter on notice to Owner, with no further compensation payable to Owner
except for any payments required under Article 26 (Force Majeure), including, but not limited to, Clause 26.3; and 

  

	 	(iv)	Hire Rate While FPSO is in Risk Zone. Notwithstanding, the provisions concerning Downtime and Shutdown contained elsewhere in the Charter, the Hire Rate shall continue
to be payable during the FPSO’s presence in the Risk Zone and any transportation to a safe location, until termination of this Charter pursuant to the applicable provisions of this Charter. 

  
 ARTICLE 36 
 ENGLISH LANGUAGE AND INTERPRETATION 
  
 36.1 Communications. The English language shall be used throughout in communications, reports, correspondence and other documentation as
transmitted between the Parties. 
  
 36.2 Headings.
The topical headings used in this Charter are for convenience only and shall not be construed as having any substantive significance or as indicating that all of the provisions of this Charter relating to any topic are to be found in any particular
Article. 
  
 36.3 Singular; Plural. Reference to
the singular includes a reference to the plural and vice versa. 
  
 36.4 Gender. Reference to any gender includes a reference to all other genders. 
  

 97 

 ARTICLE 37 
 SUCCESSORS AND ASSIGNS 
  
 Subject to
Article 24, this Charter shall inure to the benefit of and be binding upon the permitted successors and assigns of the Parties. The change of control, merger, reorganization, sale of stock or assets or other transaction affecting ownership, control
or structure of Charterer and its Affiliates, whether by operation of law or otherwise, shall have no effect on this Charter or the enforceability hereof. 
  
 ARTICLE 38 
 WAIVER; CUMULATIVE
REMEDIES 
  
 38.1 No Waiver. It is hereby
expressly stated and agreed that no actions taken by or on behalf of Charterer in checking, verifying, reviewing, consenting to, approving, testing or inspecting the FPSO or any part thereof (hereinafter referred to as “Charterer
Actions”) at any time shall in any way whatsoever have the effect or be construed as having the effect of waiving or modifying the duties, responsibilities, obligations or liabilities of Owner Group to properly perform its obligations
in accordance with the requirements of this Charter, or at law, and Owner shall not be entitled nor shall it seek to rely on Charterer Actions to excuse, mitigate or defend any failure(s) in performance on its part arising under this Charter or at
law. 
  
 38.2 Waiver in Writing. Without prejudice
to the provisions of Clause 38.1, none of the provisions in this Charter shall be considered as waived by either Party unless a waiver is given in writing by such Party. No such waiver shall be a waiver of any past or future default, breach or
modification of any of the other provisions of this Charter unless expressly set forth in such written waiver. 
  
 38.3 Powers Cumulative. Without prejudice to Clause 31.2, and except to the extent otherwise expressly provided in this Charterer, all
rights, powers and remedies provided hereunder are cumulative and not exclusive of any rights, powers or remedies provided by law or otherwise. 
  
 ARTICLE 39 
 PARTIAL INVALIDITY

  
 The illegality, invalidity or unenforceability of a provision of this
Charter under any law shall not affect the legality, validity or enforceability of that provision under another law or the legality, validity or enforceability of another provision or the remainder of this Charter. Whenever a provision is held to be
invalid or unenforceable, the Parties shall negotiate in good faith to adopt a replacement provision to carry out the Parties’ original intention to the extent permitted by applicable law. 
  
 ARTICLE 40 
 MODIFICATIONS 
  
 There shall be no modification of this Charter except by written consent of both Parties. 
  

 98 

 ARTICLE 41 
 EXECUTION BY FACSIMILE AND/OR COUNTERPARTS 
  
 41.1 Facsimile Signatures. The Parties agree that the signature of a Party to this Charter transmitted by facsimile machine shall be accepted as an original signature. A Party shall promptly furnish an
original signature page of this Charter if requested by another Party. 
  
 41.2 Counterparts. The Parties further agree that this Charter may be executed in several original counterparts, and each such counterpart shall be deemed an original agreement for all purposes; provided no Party shall be
bound to this Charter unless and until all Parties have executed a counterpart. 
  
 ARTICLE 42 
 RIGHTS OF THIRD PARTIES 
  
 This Charter is in no way intended to, and does not, confer or grant any rights to any named
or unnamed Third Parties, and any such rights granted to Third Parties under applicable law are hereby excluded except for (i) indemnity, defense and hold harmless rights specifically extended to Owner Group or Charterer Group under the provisions
of this Charter and (ii) that Charterer shall have the benefit of all Subcontractor warranties and indemnities given to Owner or otherwise in connection with the FPSO and the Services. No provisions of this Charter may be enforced by any Person not
a signatory to this Charter unless such Person has signed a Novation Agreement agreeing to be bound by the provisions hereof or has taken an assignment and assumed the obligations of either Party hereunder pursuant to the provisions of Article 24.

  
 ARTICLE 43 
 CROSS REFERENCES 
  
 Owner hereby acknowledges and confirms that it has received a copy of the Operating and Maintenance Agreement. 
  
 ARTICLE 44 
 MISCELLANEOUS 
  
 44.1 General Provisions. This Charter shall be construed without regard to the identity of the person who drafted the various provisions hereof. Each provision of this Charter shall be construed as
though both Parties participated equally in its drafting. Consequently, the Parties acknowledge and agree that any rule of construction that a document is to be construed against the drafting Party shall not be applicable to this Charter. The word
“includes” and its derivatives means “includes, but is not limited to” and corresponding derivative expressions. 
  
 44.2 General Survival. In order that the Parties may fully exercise their rights and perform their obligations arising under this Charter,
such provisions of this Charter as are necessary to ensure such exercise or performance shall survive the completion or termination of this Charter for any cause whatsoever. 
  

 99 

 44.3 Host Country Requirements. In addition to the terms, conditions and obligations
contained within this Charter (inclusive of the Appendices), the following shall, in connection with the performance of the FPSO Work and the other Services to be performed hereunder, apply: 
  

	 	(i)	Local Employment and Training. Owner shall and shall cause Owner Group to make all reasonable efforts to employ and train citizens of Malaysia in connection with the
Services. Owner may employ citizens, lawful permanent residents or other lawful temporary residents, if, in its reasonable opinion, and not contested by the appropriate ministry, no Malaysian citizens can be found with sufficient skill and technical
qualifications. Owner shall promptly provide to Charterer upon Charterer’s written request details on the personnel employed and their residence when employed. 

  

	 	(ii)	Buy Malaysian Provisions. In the performance of the Services, Owner shall and shall cause Owner Group to give preference to goods and services that are produced in
Malaysia or rendered by the citizens, lawful permanent residents or other lawful temporary residents of Malaysia, provided such goods and services are offered at equally advantageous conditions with regard to quality, price and immediate
availability in quantities and to the specifications required. 

  

	 	(iii)	Good Relations with Government Authorities. Owner shall and shall cause Owner Group to make positive efforts to maintain good relations with the public and the
Government authorities of Malaysia during the whole course of performance of Services under this Charter. 

  

	 	(iv)	Transfer of Technology. In the procurement of facilities, supplies, and services required for the Services, Owner shall use its Best Efforts to observe the following:

  

	 	(a)	the enhancement of effective local (especially Bumiputra) participation in the Services and FPSO Work; and 

  

	 	(b)	the transfer of technology to local (especially Bumiputra) firms and companies with the objective of developing local technical and managerial capabilities; and

  

	 	(c)	the need to minimize outflow of foreign exchange. 

  

	 	(v)	Malaysian Priority. In pursuance of the provisions of sub-clause (iv) above, Owner shall, unless otherwise approved in writing by Charterer, use Best Efforts to comply
with the following: 

  

	 	(a)	give priority to locally-manufactured goods in the procurement of facilities, goods, materials, supplies, and services; 

  

	 	(b)	give priority to Malaysian suppliers or manufacturers for facilities, goods, materials, and supplies; and 

  

 100 

	 	(c)	give priority to services and research facilities, professional or otherwise, which are rendered by Malaysians or firms or companies incorporated or licensed in Malaysia,

  
 in all cases provided that such goods or
services are competitive in terms of price, quality availability, terms and conditions of supply or service and reliability. 
  
 44.4 Waiver of Sovereign Immunity. Each Party hereby agrees that all of the transactions contemplated by this Charter shall constitute
commercial activities. To the extent that either Party may be entitled in any jurisdiction whatsoever to claim for itself or any of its agencies, instrumentalities, properties or assets, immunity, whether characterized as sovereign or a similar type
of immunity or as arising from an act of state or sovereignty, from suit, execution, set-off, attachment or other legal process of any nature whatsoever, it hereby expressly and irrevocably waives such immunity and hereby agrees not to claim or
permit to be claimed on its behalf or on behalf of any of its agencies or instrumentalities any such immunity. Without limiting the generality of the foregoing, the Parties hereby expressly waive any right to claim sovereign or similar immunity
under the laws of Malaysia, or any similar law in any other jurisdiction in the world. 
  
 44.5 FTL. 
  
 In
the event Owner’s Affiliate is a contractor or subcontractor for the supply of the Fluid Transfer Line and related services, then, notwithstanding anything to the contrary in this Charter, any act or omission by such Owner’s Affiliates or
its subcontractors (“FTL Affiliate”) under such agreement shall not be considered an act, omission, or breach of Owner or Owner Group under this Charter; provided always that Owner shall not be entitled to rely upon this Clause in
circumstances where the FTL Affiliate in performing its scope of work has acted improperly or in bad faith to disrupt or interrupt the FPSO Work or Services under the Charter. 
  
 [Signatures on following page.] 
  

 101 

 EXECUTED by the Parties in two originals by their respective duly authorized officers, 
  

																					
	OWNER:	 	 	 	 	 	 	 	CHARTERER:	 	 	 	 	 	 
						
	 MALAYSIA INTERNATIONAL
 SHIPPING
CORPORATION BERHAD
	 	 	 	MURPHY SABAH OIL CO., LTD.	 	 	 	 	 	 
					
	By:	 	  

	 	 	 	By:	 	  

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
									
	Witness:	 	 	 	 	 	 	 	 	 	Witness:	 	 	 	 	 	 
					
	By:	 	  

	 	 	 	By:	 	  

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  

 102 

																					
	 	 	 	 	LIST OF APPENDICES	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  

 103Floating, Production,Storage and Offloading vessel operating maintenance agr.

 EXHIBIT 10.5B 
  
 FPSO OPERATING AND MAINTENANCE AGREEMENT 
  
 for 
  
 FPSO HULL NO. 2284 
  
 KIKEH FIELD, BLOCK K 
 OFFSHORE SABAH,
MALAYSIA 
  
 between 
  
 MALAYSIA INTERNATIONAL 
 SHIPPING CORPORATION BERHAD 
  
 and 
  
 MURPHY SABAH OIL CO., LTD. 
  
 CONTRACT NUMBER 
 Murphy/Kikeh/K003B 

 TABLE OF CONTENTS 
  

							
	 1.
	 	DEFINITIONS	  	2
	 2.
	 	THE FPSO AND MANAGEMENT	  	18
	 	 	2.1.	  	Documentation, Management, Manning, Operation, Supervision and Maintenance	  	18
	 	 	2.2.	  	Standard of Services	  	18
	 	 	2.3.	  	Schedule of Responsibilities	  	18
	 	 	2.4.	  	Structural Alterations	  	18
	 	 	2.5.	  	Contractor Obligations	  	19
	 	 	2.6.	  	Specifications	  	19
	 3.
	 	DELIVERY, REDELIVERY AND SURVEY	  	19
	 	 	3.1.	  	Delivery	  	19
	 	 	3.2.	  	Redelivery	  	19
	 	 	3.3.	  	Redelivery Survey	  	19
	 	 	3.4.	  	Deliverables	  	20
	 4.
	 	CONTRACTOR’S OBLIGATIONS	  	21
	 	 	4.1.	  	Timely Performance	  	21
	 	 	4.2.	  	Performance of the Services	  	21
	 	 	4.3.	  	Contractor Personnel	  	22
	 	 	4.4.	  	Safety of Contractor’s Personnel	  	23
	 	 	4.5.	  	Drug and Alcohol Policy	  	24
	 	 	4.6.	  	General Management and Operating Responsibilities	  	24
	 	 	4.7.	  	Compliance with Laws	  	25
	 	 	4.8.	  	Reports and Communications	  	25
	 	 	4.9.	  	Engine Logs and Records	  	25
	 	 	4.10.	  	Performance Data	  	26
	 	 	4.11.	  	Contractor Guarantee	  	26
	 	 	4.12.	  	Deliverables	  	26
	 	 	4.13.	  	Operations Manuals	  	26
	 	 	4.14.	  	Documentation	  	26
	 	 	4.15.	  	FPSO Operations Affecting Processing of Crude Oil	  	27
	 	 	4.16.	  	Compliance	  	27
	 	 	4.17.	  	Entry and Departure Authorizations	  	27
	 	 	4.18.	  	Evidence of Authorizations, Approvals, etc.	  	27
	 	 	4.19.	  	Rate Savings	  	28
	 5.
	 	MAINTENANCE, REPAIR AND DRYDOCKING	  	28
	 	 	5.1.	  	Machinery and Hull	  	28
	 	 	5.2.	  	Maintenance and Repair	  	28
	 	 	 	  	 	  	 
	 	 	5.4.	  	Minimal Interruption/Annual Maintenance Allowance	  	29
	 	 	5.5.	  	Actual Hours Worked	  	30
	 	 	5.6.	  	No Adjustment of Fixed Fee	  	31
	 	 	5.7.	  	Drydocking Due to Contractor Breach	  	31
	 	 	5.8.	  	Inspections/Tests	  	34
	 	 	5.9.	  	Company’s Inspection Rights	  	34
	 	 	5.10.	  	Company Notification	  	34
	 	 	5.11.	  	Contractor to Remedy Defects	  	34
	 	 	5.12.	  	Equipment Replacement	  	34
	 	 	5.13	  	FPSO Assistance	  	35
	 6.
	 	ADDITIONAL CONTRACTOR FURNISHED PERSONNEL	  	35
	 7.
	 	COMPANY OBLIGATIONS	  	35
	 	 	7.1.	  	Company’s Instructions	  	35
	 	 	7.2.	  	Consents and Approvals	  	35
	 	 	7.3.	  	Company Assistance	  	36
	 	 	7.4.	  	Company Costs	  	36
	 	 	7.5.	  	Company Supplied Items	  	37
	 	 	7.6.	  	Company Guarantee	  	37
	 8.
	 	TITLE TO SPARE PARTS	  	37
	 	 	8.1.	  	Company Property	  	37
	 	 	 	  	 	  	 

  

 i 

							
	 	  	8.3.	  	Procedures on Termination	  	37
	 9.
	  	USE OF THE FPSO	  	38
	 	  	9.1.	  	Use	  	38
	 	  	9.2.	  	Company’s Lay Up Rights	  	38
	 	  	9.3.	  	FPSO Relocation	  	38
	 	  	9.4.	  	Third Party Oil	  	38
	 10.
	  	TERM OF AGREEMENT	  	39
	 	  	10.1.	  	Commencement Date/Term	  	39
	 	  	10.2.	  	Early Termination	  	39
	 	  	10.3.	  	Renewal Options	  	39
	 	  	10.4.	  	Compensation	  	39
	 	  	10.5.	  	Extended Term	  	39
	 11.
	  	RELATIONSHIP OF THE PARTIES	  	39
	 	  	11.1.	  	Independent Contractor	  	39
	 	  	11.2.	  	No Authority	  	40
	 	  	11.3.	  	Control of FPSO	  	40
	 	  	11.4.	  	Compensation Adjustment/Change of Law	  	40
	 	  	11.5.	  	Indemnity as to Contractor Personnel Wages	  	40
	 	  	11.6.	  	Supervision and Control	  	41
	 	  	11.7.	  	No Mineral or Hydrocarbon Deposit Rights	  	41
	 	  	11.8.	  	No Exemption from Health, Safety and Environmental Laws	  	41
	 	  	11.9.	  	Control of Crude Oil Production	  	41
	 12.
	  	REPRESENTATIONS AND WARRANTIES	  	41
	 	  	12.1.	  	Contractor Fully Informed	  	41
	 	  	12.2.	  	Other Representations and Undertakings of Contractor	  	42
	 	  	12.3.	  	Company Representations and Warranties	  	44
	 13.
	  	VARIATIONS	  	45
	 	  	13.1.	  	Generally	  	45
	 	  	13.2.	  	Company’s Request for Variation	  	46
	 	  	13.3.	  	Variation Proposal	  	46
	 	  	13.4.	  	Contractor’s Variation Proposal; Variation Order	  	47
	 	  	13.5.	  	Increase in Compensation	  	47
	 	  	13.6.	  	Variation Order Costs	  	47
	 	  	13.7.	  	Implementation of Variation Order	  	47
	 	  	13.8.	  	Written Authorization	  	48
	 	  	13.9.	  	Alteration and Installation of Additional Equipment	  	48
	 	  	13.10.	  	Company’s Right of Audit	  	48
	 	  	13.11.	  	Variation Order Procedures and Formats	  	48
	 14.
	  	CONTRACTOR COMPENSATION	  	48
	 	  	14.1.	  	Attachment B	  	48
	 	  	14.2.	  	Fixed Fee Adjustment; Downtime; Shutdown	  	48
	 15.
	  	REIMBURSABLE COSTS AND TIME RATES	  	51
	 16.
	  	MANNER OF PAYMENT	  	51
	 	  	16.1.	  	Procedures	  	51
	 	  	16.2.	  	Commencement and Cessation of O&M Compensation	  	54
	 	  	16.3.	  	Failure to Pay	  	54
	 	  	16.4.	  	No Payment Delays	  	54
	 	  	16.5.	  	Invoice Disputes	  	54
	 	  	16.6.	  	Contractor’s Invoices	  	55
	 	  	16.7.	  	Change in Payment Instructions	  	55
	 	  	16.8.	  	Payment Currency	  	55
	 	  	16.9.	  	Excess Shutdown	  	55
	 	  	16.10.	  	Adjustments	  	56
	 	  	16.11.	  	No Obligation	  	56
	 17.
	  	AUDIT	  	56
	 	  	17.1.	  	Audit Rights	  	56
	 	  	17.2.	  	Survival of Audit	  	57
	 18.
	  	LIENS	  	57
	 	  	18.1.	  	No Liens	  	57
	 	  	18.2.	  	Payments	  	57

  

 ii 

							
	 	  	18.3.	  	Liens Arising by Operation of Law	  	57
	 	  	18.4.	  	Contractor Discharge of Encumbrances	  	58
	 19.
	  	HEALTH, SAFETY AND ENVIRONMENTAL OBLIGATIONS	  	58
	 	  	19.1.	  	Contractor Representations and Warranties	  	58
	 	  	19.2.	  	Safe Work Environment	  	58
	 	  	19.3.	  	Contractor’s Safety Program	  	58
	 	  	19.4.	  	Helicopters/Marine Traffic	  	58
	 	  	19.5.	  	HS&E Regulations and Procedures	  	58
	 	  	19.6.	  	FPSO Terminal Operations Manual	  	59
	 	  	19.7.	  	Contractor Compliance	  	59
	 20.
	  	TAXES	  	59
	 	  	20.1.	  	Taxes and Duties	  	59
	 	  	20.2.	  	Statutory Exemptions	  	60
	 	  	20.3.	  	Company’s Tax Indemnity	  	60
	 	  	20.4.	  	Contractor’s Tax Indemnities	  	60
	 	  	20.5.	  	Certain Malaysian Tax and Customs Duties Requirements	  	61
	 	  	20.6.	  	Tax Savings	  	63
	 21.
	  	CONFLICTS OF INTEREST	  	64
	 	  	21.1.	  	Commissions/Fees	  	64
	 	  	21.2.	  	Corrupt Payments	  	64
	 	  	21.3.	  	Claims	  	64
	 22.
	  	TITLE TO THE FPSO	  	64
	 23.
	  	PARTY REPRESENTATIVES AND PERSONNEL	  	64
	 	  	23.1.	  	Contractor Representative	  	64
	 	  	23.2.	  	Company Representative	  	65
	 24.
	  	TERMINATION	  	65
	 	  	24.1.	  	Termination by Company	  	65
	 	  	24.2.	  	Other Company Termination Rights	  	66
	 	  	24.3.	  	Contractor Termination Rights	  	68
	 	  	24.4.	  	Article 32 Termination	  	69
	 	  	24.5.	  	Contractor’s Material Breach - Procedures	  	69
	 	  	24.6.	  	Termination Procedures	  	69
	 	  	24.7.	  	Redelivery of FPSO	  	70
	 	  	24.8.	  	Demobilization Costs	  	70
	 25.
	  	ASSIGNMENT AND SUBCONTRACTING	  	70
	 	  	25.1.	  	Company Assignment	  	70
	 	  	25.2.	  	No Release of Prior Liability	  	71
	 	  	25.3.	  	Assignment to Affiliate of Contractor	  	71
	 	  	25.4.	  	Novation Agreement	  	71
	 	  	25.5.	  	Company’s Right to Review Subcontracts	  	72
	 	  	25.6.	  	Breach of Agreement by Contractor or Subcontractor	  	72
	 26.
	  	PATENT INDEMNIFICATION	  	72
	 	  	26.1.	  	Contractor’s Indemnification Obligations	  	72
	 	  	26.2.	  	Company’s Indemnification Obligations	  	73
	 	  	26.3.	  	Intellectual Property Ownership and License	  	73
	 	  	26.4.	  	Improper Use	  	73
	 27.
	  	INDEMNITIES AND LIABILITIES	  	73
	 	  	27.1.	  	Indemnification	  	73
	 	  	27.2.	  	Contractor Group Personnel Personal Injury	  	75
	 	  	27.3.	  	Company Group Personnel Personal Injury	  	76
	 	  	27.4.	  	[Intentionally Left Blank]	  	76
	 	  	27.5.	  	Pollution Loss	  	76
	 	  	27.6.	  	Wreck Removal	  	77
	 	  	27.7.	  	Intentionally Left Blank	  	77
	 	  	27.8.	  	No Consequential Damages	  	77
	 	  	27.9	  	Intentionally Left Blank	  	77
	 	  	27.10	  	Third Party Liability	  	77
	 	  	27.11.	  	Both-to-Blame Collision Clause	  	79
	 	  	27.12.	  	General Average	  	79
	 	  	27.13.	  	INDEMNITIES ABSOLUTE	  	79

  

 iii 

							
	 	  	27.14.	  	Indemnities Covered by Insurance	  	80
	 	  	27.15.	  	No Reimbursement	  	80
	 	  	27.16.	  	Survival of Indemnification	  	80
	 28.
	  	INSURANCE	  	80
	 	  	28.1.	  	General	  	80
	 	  	28.2.	  	Policy Provisions with Respect to all Policies and Coverages.	  	81
	 	  	28.3.	  	Insurances and Coverages	  	82
	 	  	28.4.	  	Other Required Insurance Provisions, Limits and Coverages	  	84
	 	  	28.5.	  	Insurance Proceeds.	  	85
	 	  	28.6.	  	No Duplication	  	85
	 	  	28.7.	  	No Reimbursement	  	86
	 29.
	  	REQUISITION OR SEIZURE	  	86
	 	  	29.1.	  	Government Action.	  	86
	 	  	29.2.	  	Indemnification.	  	86
	 30.
	  	ACTUAL OR CONSTRUCTIVE TOTAL LOSS	  	87
	 	  	30.1.	  	Total Loss Termination	  	87
	 	  	30.2.	  	Removal of Wreck and/or Debris	  	87
	 	  	30.3.	  	Mitigation of Company’s Exposure	  	87
	 31.
	  	RISK ZONE	  	87
	 	  	31.1.	  	Dangerous Location	  	87
	 	  	31.2.	  	Increase in Costs	  	88
	 	  	31.3.	  	Risk Zone Payments	  	88
	 32.
	  	FORCE MAJEURE	  	88
	 	  	32.1.	  	Force Majeure	  	88
	 	  	32.2.	  	O&M Compensation During Force Majeure	  	88
	 	  	32.3.	  	Force Majeure Termination Rights	  	89
	 	  	32.4.	  	Contractor’s Force Majeure Termination Right	  	89
	 33.
	  	HOST COUNTRY REQUIREMENTS	  	90
	 	  	33.1.	  	Citizens of Malaysia	  	90
	 34.
	  	NOTICES	  	91
	 35.
	  	CONFIDENTIAL INFORMATION AND DATA	  	92
	 	  	35.1.	  	Confidential Information and Data	  	92
	 	  	35.2.	  	Reciprocal Provisions	  	93
	 	  	35.3.	  	Press Releases; Announcements	  	93
	 	  	35.4.	  	Confidentiality Provisions Survival	  	93
	 36.
	  	ENGLISH LANGUAGE AND INTERPRETATION	  	93
	 	  	36.1.	  	Communications	  	93
	 	  	36.2.	  	Headings	  	93
	 	  	36.3.	  	Singular/Plural	  	93
	 	  	36.4.	  	Gender	  	93
	 37.
	  	APPLICABLE LAW AND ARBITRATION	  	94
	 	  	37.1.	  	Governing Law	  	94
	 	  	37.2.	  	Dispute Resolution	  	94
	 	  	37.3.	  	Small Disputes	  	96
	 	  	37.4.	  	No O&M Compensation	  	96
	 	  	37.5.	  	Arbitration Provisions Survive	  	96
	 38.
	  	ENTIRE AGREEMENT	  	96
	 	  	38.1.	  	Entirety	  	96
	 	  	38.2.	  	Failure to Perform	  	96
	 39.
	  	SURVIVAL	  	96
	 40.
	  	SUCCESSORS AND ASSIGNS	  	96
	 41.
	  	WAIVER; CUMULATIVE REMEDIES	  	97
	 	  	41.1.	  	No Waiver	  	97
	 	  	41.2.	  	Waiver in Writing	  	97
	 	  	41.3.	  	Powers Cumulative	  	97
	 42.
	  	PARTIAL INVALIDITY	  	97
	 43.
	  	MODIFICATIONS	  	97
	 44.
	  	EXECUTION BY FACSIMILE AND/OR COUNTERPARTS	  	97
	 	  	44.1.	  	Facsimile Signatures	  	97
	 	  	44.2.	  	Counterparts	  	98

  

 iv 

							
	 45.
	  	RIGHTS OF THIRD PARTIES	  	98
	 46.
	  	CROSS REFERENCES	  	98
	 47.
	  	MISCELLANEOUS	  	98
	 	  	47.1.	  	General Provisions	  	98
	 	  	47.2.	  	General Survival	  	98
	 	  	47.3.	  	Waiver of Sovereign Immunity	  	98

  

 v 

																	
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

 vi 

 
FPSO OPERATING 
 AND MAINTENANCE
AGREEMENT 
  
 This FPSO Operating and Maintenance Agreement (together with all
of the Attachments appended hereto, this “Agreement”) is made and entered into as of the 31st day of January, 2005. 
  
 BETWEEN: 
  
 MURPHY SABAH OIL CO., LTD., a company incorporated under the laws of The Bahamas and having a place of business at the address set forth in Article 34 hereof (referred to as “Company”).

  
 and 
  
 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD a Malaysian company with its registered office at the address set forth in Article
34 hereof (referred to as “Contractor”). 
  
 In addition
to the main body of this Agreement, this Agreement consists of the following parts, all of which are appended hereto: 
  

																			
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 -            
	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  
 WHEREAS, Company, as
“Charterer”, and Contractor, as “Owner” have, concurrently herewith, entered into the FPSO Charter Contract (as hereinafter defined), for the design, construction, refurbishment and charter of the FPSO
(as hereinafter defined) to be moored at the Kikeh Field located in Block K, offshore Sabah, Malaysia; and 
  
 WHEREAS, Company and Contractor have agreed that Contractor shall perform the Services (as hereinafter defined) in respect of the FPSO, all as more fully set forth in this Agreement; and 
  
 WHEREAS, Company and Contractor desire to enter into this Agreement to govern their
respective rights, duties and obligations in respect of the performance of the Services. 
  

 1 

 NOW THEREFORE, in consideration of the premises and the mutual covenants set forth below, IT IS AGREED as follows:

  

	1.	DEFINITIONS 

  
 The following definitions shall be used for interpreting this Agreement. There are also definitions provided elsewhere in this Agreement that shall also be used for the purpose of interpreting this Agreement.

  

			
	Accrued Fixed Fee	 	Shall mean the total amount of the Daily Fixed Fee due Contractor, if any, which accrues on a Day by Day basis during the Fixed Fee Accrual Period.
		
	Accrued O&M Compensation	 	Shall mean the Accrued Fixed Fee and the First and Second Accrued Reimbursables.
		
	Actual Flow Rate	 	Shall have the meaning given to it in Clause 14.2.
		
	Additional Equipment	 	Equipment for the FPSO that is provided and owned exclusively by Company, including but not limited to Company Supplied Items (except the DTU, the Fluid Transfer Lines, Riser Facilities and
Umbilicals), Subsea Related Equipment and Company Communications Equipment, but expressly excluding the FPSO.
		
	Affiliate(s)	 	In relation to any Person, any entity (incorporated or unincorporated) that controls that Person, is controlled by that Person or is controlled by another entity which also controls that
Person, and, “control” and “controlled” means a shareholding (or voting right) of greater than fifty percent (50)% of another entity, provided that any joint venture entity (whether incorporated or unincorporated) between any
entity or joint venture in which both Contractor and IHC, Inc. S.A. or their Affiliates, has any interest shall be deemed to be an Affiliate of Contractor irrespective of the percentage interest therein held by either Contractor or IHC, Inc.
S.A.
		
	Agreed Interest Rate	 	A floating interest rate, compounded monthly, equal to two percentage points (2%) per annum above LIBOR.

  

 2 

					
		
	Annual Budget	 	Shall have the meaning ascribed thereto in Part A Section I.B.1 of Attachment B.
		
	Annual Maintenance Allowance	 	The time allowed for maintenance and repairs of the FPSO, in any contract year of the Term, during which O&M Compensation shall be payable regardless of any Shutdown, as set
forth
	 	 	in Clause 5.4, which shall be calculated with respect to a percentage equal to 	 	 
	 	 	of the total time (in hours) that exists in the eight (8) contract years of the Primary Term, or that exists in the three (3) contract years of any Secondary Term, and which shall
be allocated as per the Annual Maintenance Allowance Schedule pursuant to the terms of Clause 5.4.
		
	 Annual Maintenance Allowance
 Schedule
	 	Shall have the meaning given to it in Clause 5.4(i) through 5.4(iii).
		
	Assessment	 	Shall have the meaning ascribed thereto in Attachment B.
		
	Attachment	 	Shall mean an attachment to this Agreement.
		
	Best Efforts	 	All efforts having the highest likelihood of accomplishing their intended purpose in light of (i) the ability of the Party charged with exercising such efforts to take such action
and (ii) the justifiable expectations of the Party to which the benefit of such efforts will accrue, if successful.
		
	Bonus	 	Shall have the meaning ascribed thereto in Attachment B.
		
	Business Day	 	Means a Day on which banks are open for business in Malaysia.
		
	Charter	 	The FPSO Charter Contract by and between Owner and Charterer.
		
	Christmas Tree	 	The system of pipes, valves, gauges and related equipment, located on and around the DTU or attached to any subsea wellheads, that controls the flow of Crude Oil, gas and other
hydrocarbons produced from, and the flow of water and gas injection to, the Wells.
		
	Claims	 	All claims, losses, liabilities, suits, demands, judgments, and causes of action of any kind

  

 3 

			
	 	 	(including, but not limited to, those for bodily injury, illness, loss of consortium, death, property damage, loss or destruction, and wrongful termination of employment) in any way arising
under or relating (directly or indirectly) to: (i) this Agreement; (ii) any subcontract or other agreement executed in connection herewith; or (iii) the operation of the FPSO or any helicopter, tanker, shuttle tanker, supply or crew boat or other
vessel used in connection with the Services or with respect to the operations of the FPSO, including, without limitation, claims for any and all damages (including, without limitation, punitive and exemplary damages), expenses, bonding fees,
penalties, assessments, costs (including, without limitation, attorneys’ fees and other legal costs and expenses), and losses, and whether asserted by either Party or an injured Person (as to personal injury or property damage) or such
Person’s spouse, heirs, survivors or legal representative, or those Persons or entities entitled to assert claims on account of bodily injury, illness, loss of consortium or support, death, or damage to or loss of personal property, and
irrespective of whether any of same arises in contract, tort or strict liability.
		
	Classification Society	 	American Bureau of Shipping (“ABS”) or another equivalent body agreed by the Parties in writing.
		
	Closing	 	Shall have the meaning ascribed thereto in the Charter.
		
	Commercial Operations	 	The production, receiving, storage and processing of Crude Oil, the processing and compression of natural gas, injection of water into the Wells and storing and off-loading of Processed Oil
in accordance with the Specifications and the Classification Society’s FPSO Classification certificate.
		
	Company Communications Equipment	 	Certain equipment owned by Company to be installed by Contractor for ship to shore communications, satellite transmissions, fax transmissions and other similar communications equipment
required by Company for communicating and transferring voice, videos, data and information.

  

 4 

					
		
	Company Group	 	Any or all of Company and its respective Affiliates, any Co-Venturer, its and their contractors and subcontractors and the Personnel of any entity mentioned above; but excluding
Contractor Group and excluding Petronas and any other Government entity or instrumentality party to the PSC (other than Petronas Carigali SDN BHD, which shall be considered part of Company Group).
		
	Company Guarantee	 	The guarantee of Company’s performance under this Agreement given by Company Guarantor, the form of which is appended as Attachment G-2 and referenced in Clause 1.1(a)(v) and
Clause 3.4(v).
	 	 	 	 	 
			
	Company Guarantor	 	 	 	.
		
	Company Property	 	All equipment, property, facilities, vessels, if any, consumables, materials of Company Group (whether owned by Company Group or owned by or leased or rented from Third Parties),
including, without limitation, the Additional Equipment, the Wells, Christmas Tree, Riser Facilities and Umbilicals, and the Crude Oil and Processed Oil on board the FPSO, regardless of whether the Crude Oil and Processed Oil is owned by Company and
the Co-Venturers, the Government or a Third Party, the Fluid Transfer Lines and the DTU.
		
	Company Representative	 	Such person as Company shall designate from time to time (or any other member of Company Group appointed by Company or such Person to be such Person’s alternate), who shall
carry out technical and administrative co-ordination of the duties of Company as set out in Clause 23.2, and who shall be entitled to be and remain on the FPSO at any time.
		
	Company Supplied Items	 	Such information, services and equipment, including the Additional Equipment, for which Company shall have the responsibility to provide to Contractor as set forth in Attachment B
or elsewhere in this Agreement.

  

 5 

					
	Contract Date	 	The date of this Agreement as first set forth above in the preamble to this Agreement.
		
	Contractor Group	 	Any or all of Contractor, its Affiliates, Contractor’s Personnel, representatives and agents and the Subcontractors and any contractors (including their subcontractors) of
Contractor’s Subcontractors and the Personnel of any Person mentioned in this definition, other than Petronas or any other Government entity or instrumentality party to the PSC.
		
	Contractor Guarantee	 	The guarantee of Contractor’s performance under this Agreement given by Contractor Guarantor, the form of which guarantee is appended as Attachment G-1 and referenced in
Clause 3.4(v) and Clause 4.11.
	 	 	 
			
	Contractor Guarantor	 	 	 	.
		
	Contractor Property	 	All equipment, property, facilities, consumables, materials, including Contractor Supplied Items, (whether owned, leased or rented) of Contractor Group, including, without
limitation, the FPSO.
		
	Contractor Representative	 	Such person as Contractor shall designate from time to time in writing, who shall carry out technical and administrative co-ordination of the Services to Company as set out in
Clause 23.1.
		
	Contractor Supplied Items	 	Such information, services and equipment for which Contractor shall have the responsibility to provide to Company as set forth in Attachment B to this Agreement.
		
	Cost Target	 	Shall have the meaning ascribed thereto in Part A, Section II.B.1 of Attachment B.
		
	Co-Venturer	 	Any party to the PSC other than Petronas..
		
	Crude Oil	 	Liquid petroleum and other hydrocarbons produced at the wellhead in a liquid state at atmospheric pressure]
		
	Daily Fixed Fee	 	Shall mean the per Day U.S. dollar amount of the quarterly Fixed Fee, as specified in Attachment B.

  

 6 

			
	Day or day	 	The period commencing at 00.01 hours of any day and ending at 24.00 hours on the same day.
		
	Deliverables	 	Shall mean, collectively, (i) the certified copy of corporate resolutions of Contractor required by Clause 3.4(i), (ii) a copy of the letter from the Bank Negara Malaysia required by Clause
3.4(iii), (iii) the FPSO Operations and Maintenance Manuals required by Clause 4.13, (iv) the Contractor Guarantee required by Clause 3.4(v), (v) the HS&E General Regulations and Procedures required by Clause 19.5, (vi) the FPSO Terminal
Operations Manual required by Clause 19.6, (vii) the documentation required by Clause 20.2 (including the certificate of exemption referred to therein), (viii) certificates or evidence of the FPSO Insurance Cover as required by Article 28 and
Contractor’s initial Cost Target required by Part A, Section II.B of Attachment B.
		
	Delivery Date	 	Shall have the meaning ascribed thereto in the Charter.
		
	Demobilization Costs	 	The Contractor Group’s reasonable and documented Reimbursables incurred in connection with the Services required to demobilize the FPSO to a nearby location in Malaysia, as more fully
set forth in Attachment B.
		
	Downtime	 	Any time pursuant to the provisions of this Agreement or the Charter commencing at and during which there is a reduction, restriction, suspension or complete cessation of the flow of Crude
Oil to the FPSO for any reason, including but not limited to, (i) a reduction or cessation of water injection or gas purification or compression which causes Company to order a reduction, restriction, suspension or cessation of Crude Oil production
or processing, or (ii) subject to the provisions of Clause 14.2, the FPSO is unable to produce, receive, process, store or offload (or any combination of the foregoing) Crude Oil or Processed Oil (as the case may be) in compliance with the
Specifications and the

  

 7 

			
	 	 	terms of this Agreement or the Charter; and such reduction, restriction, suspension or cessation is not due to: (a) the Well stream being outside the parameters set forth in the
Specifications; (b) the offloading vessel (for any reason not attributable to Contractor Group or the FPSO) being unable to receive the Processed Oil; (c) any malfunction or operational default of Company’s Fluid Transfer Line, the DTU,
Company’s subsea equipment, Riser Facilities, Wells and Umbilicals or Additional Equipment (other than, with respect to the Additional Equipment, any malfunction or operational default due to the default of, or breach by, any of Contractor
Group of any obligations of this Agreement or the Charter) (d) any Sole Fault of Company Group; or (e) an event of Force Majeure.
		
	DTU	 	A facility attached to the mudline used to support the Christmas Tree and Wells which is located near to the FPSO Site and is used to control the flow of hydrocarbons from the
casinghead.
		
	Early Payment Commencement Date	 	The sixty-first (61st) Day after the Fixed Fee Accrual
Date.
		
	Encumbrance or Encumbrances	 	One or more liens, mortgages, charges, repairman’s or shipyard’s lien, maritime liens, or security interests, encumbrances, or liens for (i) unpaid insurance premiums or calls, (ii)
judgments, (iii) port charges, (iv) annual charges or (v) fees of the FPSO’s Flag State or liens of any other kind on or against the FPSO, or any portion thereof, its earnings or insurances.
		
	Extended Term	 	Any extension of the Term which occurs pursuant to the provisions of Clause 10.5.
		
	Field	 	Kikeh Field, Block K, offshore Sabah, Malaysia.
		
	First Accrued Reimbursables	 	Shall mean the total amount of Reimbursables which accrues during the First Reimbursables Accrual Period.
		
	First Reimbursables Accrual Date	 	Shall mean the Ready for Risers Date.

  

 8 

			
		
	First Reimbursables Accrual Period	 	Shall mean the period commencing on, and including, the First Reimbursables Accrual Date and continuing until, and including, the Day immediately before the earlier to occur of (i) the Early
Payment Commencement Date, or (ii) the Ready for Hydrocarbons Date.
		
	Fixed Fee	 	Shall have the meaning given in Attachment B to this Agreement.
		
	Fixed Fee Accrual Date	 	The date which is the forty-third (43rd) Day after the
Ready for Commissioning Date.
		
	Fixed Fee Accrual Period	 	Means the period commencing on, and including, the Fixed Fee Accrual Date and continuing until, and including the Day immediately before the earlier of (i) the Early Payment Commencement
Date, or (ii) the Ready for Hydrocarbons Date.
		
	Flag State	 	The country or state where the FPSO is registered, as approved in writing by Company.
		
	Fluid Transfer Lines	 	Equipment provided by Company comprising three (3) ten (10) inch in diameter production lines, one (1) ten (10) inch in diameter water injection line and one (1) Umbilical from and to the DTU
from the FPSO.
		
	Force Majeure	 	An occurrence resulting from circumstances (other than strikes, industrial disputes or lockouts caused by or involving a Party’s or any Subcontractors’ own workforces, except if
part of a nation-wide general strike or except if a strike by the workforce of any shipyard and other than mere shortage of labor, materials, equipment or supplies) that are beyond the control of the Party affected which delays or prevents the due
performance of the provisions of this Agreement and which, by the exercise of due diligence, such Party is unable to prevent or overcome (including, but not limited to, earthquakes, floods (except inclement weather or storms of the ordinary seasonal
nature), wars, expropriation, intervention of civil or military authorities of government, explosions or fires, riots, insurrections, sabotage or blockades), provided that the affected Party gives written notice to the other Party no later than five
(5)

  

 9 

			
		
	 	 	Days after the Party giving notice is first made aware of the occurrence, the facts and circumstances giving rise to it and the obligation or performance which is delayed or is prevented by
it.
		
	FPSO	 	The registered floating, production, storage and offloading tanker facility (including the Mooring System and the Process Equipment and all Additional Equipment that is installed on the FPSO
by Owner Group), that is to be designed, engineered and constructed or refurbished and modified and capable of producing, receiving, and processing Crude Oil, injecting water into the reservoir as needed, separating associated natural gas and water
from the Crude Oil produced, processing, purifying and compressing the separated associated natural gas and storing and exporting Processed Oil to an offloading tanker, and all engines, generators, pumps, storage tanks, valves, computer hardware,
anchors, tools, machinery and equipment belonging thereto and a part thereof, all as more particularly described in the Specifications.
		
	FPSO Classification	 	ABS Class +A1 Oil Production and Storage, or such other designation used by ABS to classify a floating production and storage vessel.
		
	FPSO Insurance Cover	 	The insurance described in Article 28, to be procured and maintained by Contractor, or by Owner on Contractor’s behalf.
		
	 FPSO Operations and Maintenance
 Manuals
	 	Shall have the meaning ascribed thereto in Clause 4.13.
		
	FPSO Site or Site	 	The location in the Kikeh Field designated in Attachment D to which Owner is to deliver, moor, install and charter the FPSO.
		
	FPSO Terms and Conditions of Sale	 	Shall have the meaning ascribed thereto in the Charter.
		
	FPSO Terminal Operations Manual	 	Shall have the meaning ascribed thereto in Clause 19.6.
		
	Full Flow Rate	 	Shall have the meaning set forth in Clause 14.2.

  

 10 

			
	Gas Compression Run Time	 	Shall have the meaning ascribed thereto in the Charter.
		
	Gas Compression Testing	 	Shall have the meaning ascribed thereto in the Charter.
		
	Gas Compression Testing Period	 	Shall have the meaning ascribed thereto in the Charter.
		
	Government	 	The government of Malaysia and of any other relevant jurisdiction where the Services may be performed, and any agency, ministry, taxing authority, administrative subdivision, entity or
instrumentality thereof, including without limitation, the Ministry of Mines and Energy or its equivalent in any other appropriate jurisdiction.
		
	Gross Negligence	 	Such an entire want of care and lack of judgment as to establish that the act or omission in question was the result of actual conscious indifference to the rights, welfare, or safety of the
Persons or property affected by it.
		
	Group	 	Either Company Group or Contractor Group, as the context may require.
		
	HS&E	 	Shall have the meaning set forth in Clause 19.5.
		
	Indemnified Party	 	Has the meaning given to it in Article 27.
		
	Indemnifying Party	 	Has the meaning given to it in Article 27.
		
	Key Personnel	 	Such Contractor Personnel identified as Key Personnel in Attachment C.
		
	LIBOR	 	The one-month London Interbank Offered Rate as displayed on Reuters Screen Page LIBOR for United States dollar deposits at 11:00 a.m., London time, two Business Days prior to the first Day of
the period for which such rate is required, or if not so displayed, then the rate per annum published by the Financial Times of London on such Day as the one month LIBOR for U.S. dollar deposits, failing which the rate shall be the rate
quoted by Citibank N.A., London on such Day for such one-month period.

  

 11 

			
		
	Malaysia	 	Malaysia and all of its states, territories and protectorates and including all of its and their territorial waters, continental shelf and exclusive economic zone.
		
	Master	 	The Person in charge of the FPSO during the performance of the Services, which Person shall be appointed by the Contractor and shall be a member of Contractor Group.
		
	Mooring System	 	The single buoy mooring system equipment to safely moor the FPSO at the Site.
		
	Notice of Readiness – FPSO Commissioning	 	Shall have the meaning ascribed thereto in the Charter.
		
	Novation Agreement	 	The agreement referenced in Article 25 hereof, the form of which is attached hereto as Attachment I.
		
	O&M Compensation	 	The compensation (including Accrued O&M Compensation) for Contractor’s performance of the Services, including the management, operations and maintenance of the FPSO under this
Agreement, all as set forth in Articles 14, 15 and 16 of this Agreement, and in Attachment B.
		
	O&M FPSO Work	 	Shall have the meaning given in Clause 4.2(ii).
		
	Operating Area	 	Those areas offshore Sabah, Malaysia (including the Field) or elsewhere offshore Malaysia in which Co-Venturers may from time to time conduct operations.
		
	Option	 	Shall have the meaning ascribed thereto in the Charter.
		
	Owner	 	Malaysia International Shipping Corporation Berhad, the owner of the FPSO.
		
	Owner Group	 	Shall have the meaning ascribed thereto in the Charter.
		
	Owner Property	 	Shall have the meaning ascribed thereto in the Charter, expressly including the FPSO.
		
	Party or Parties	 	Company or Contractor or both as the context requires and their assignees permitted under this Agreement who have signed a Novation Agreement.

  

 12 

			
	Permitted Encumbrance	 	Any (i) Encumbrance for liens or Claims arising by law in the ordinary course of business for debts or maritime claims not yet due, or (ii) any Encumbrance in favor of Owner’s lenders in
connection with the financing of the FPSO or performance of Owner’s obligations under the Charter as will be specifically set out in the QEL.
		
	Person	 	Any individual, partnership, joint venture, legal entity, limited liability company, corporation, or unincorporated organization, including either Party.
		
	Personnel	 	The Master, officers, directors, employees, representatives, agents or invitees (as the case may be) of Contractor or of Contractor Group or of Company or of Company Group (as the case may
be).
		
	Petronas	 	Petroliam Nasional Berhad, the national oil company of Malaysia with its registered office at Tower 1, Petronas Twin Towers, Kuala Lumpur City Centre, 50088 Kuala Lumpur,
Malaysia.
		
	Pollution Limit	 	Shall have the meaning given in Clause 28.3(vi)
		
	Primary Term	 	The period commencing on the Delivery Date and ending on the date eight (8) years after the Delivery Date.
		
	Process Equipment	 	All process equipment installed on board the FPSO to separate, treat and process the fluid stream (Crude Oil and other liquids) received by the FPSO into Processed Oil and liquid waste and gases
and the compression of natural gas, as needed, the design and specification of which are described in the Specifications.
		
	Processed Oil	 	Crude Oil that has been processed on board the FPSO and is suitable for storage and export in accordance with the Specifications.
		
	PSC	 	The Production Sharing Contract, dated 27 January, 1999, for the exploration,

  

 13 

			
	 	 	development and production of hydrocarbons executed by Company, Petronas and Petronas Carigali SDN BHD, covering the Field; and any additional parties to the PSC as may be signatories from time
to time.
		
	Rate Savings	 	The costs and expenses Contractor may save, if any (with respect to Reimbursable Costs and Time Rates), by its reasonable endeavors (as agreed between the Parties) to reduce and save costs and
expenses associated with any event of Downtime, Shutdown, Lay-Up, Force Majeure, relocation or demobilization, or any other event during which Contractor, using reasonable efforts, may reduce and save costs and expenses otherwise payable by Company
in consideration of Contractor’s performance of the Services.
		
	RCA	 	Has the meaning set forth in Clause 37.2(i).
		
	Ready for Commissioning Date	 	The date on which Owner delivers its Notice of Readiness – FPSO Commissioning to Charterer.
		
	Ready for Hydrocarbons Date	 	Shall have the meaning ascribed thereto in the Charter.
		
	Ready for Risers Date	 	Shall have the meaning ascribed thereto in the Charter.
		
	Redelivery	 	Transfer and hand-over of the management and operation of the FPSO from Contractor to Owner, or from Contractor to Company, all in accordance with the terms of this Agreement.
		
	Redelivery Date	 	Shall mean the date of the Redelivery.
		
	Redelivery Survey	 	Shall have the meaning given in Clause 3.3.
		
	Reimbursable Costs	 	Shall have the meaning given in Attachment B to this Agreement.
		
	Reimbursables	 	Shall mean collectively, the Reimbursable Costs and the Time Rates.
		
	Riser Facilities	 	Umbilicals and risers extending from the Fluid Transfer Line and subsea Wells to and connected with the FPSO, as described in Attachment E to this Agreement.

  

 14 

			
	Risk Zone	 	Shall have the meaning ascribed thereto in Clause 31.1.
		
	Run Time	 	Shall have the meaning ascribed thereto in the Charter.
		
	Sailaway Date	 	Shall have the meaning ascribed thereto in the Charter.
		
	Second Accrued Reimbursables	 	Shall mean the total amount of Reimbursables which accrues during the Second Reimbursables Accrual Period.
		
	Second Reimbursables Accrual Date	 	Shall mean the Ready for Hydrocarbons Date.
		
	Second Reimbursables Accrual Period	 	The period commencing on, and including, the Second Reimbursables Accrual Date and continuing until, and including the Day immediately before the Successful Run Completion Date.
		
	Secondary Term	 	Any of the periods of three (3) years after the Primary Term that the Charter is extended pursuant to the terms thereof, not to exceed a total of fifteen (15) years, in addition to the Primary
Term.
		
	Services	 	Collectively, the documentation, management, manning, operation, supervision and maintenance services for the FPSO, including, without limitation, the Redelivery Survey and the O&M FPSO Work
to be provided by Contractor under this Agreement pursuant to its terms, as more fully described herein and in the Attachments hereto, which Services shall expressly exclude those to be performed in connection with the DTU Wells, Christmas Tree,
Riser Facilities, Umbilicals and the Fluid Transfer Lines (which shall be the exclusive responsibility of Company).
		
	Shutdown	 	Any time under this Agreement commencing when there is a cessation of Crude Oil production or processing which is due to the default of, or breach of any obligations under this Agreement by any
of Contractor Group.
		
	Shutdown Period	 	Any period of time during the Term commencing when Shutdown first occurs and ending when the FPSO has recommenced processing Crude Oil.

  

 15 

			
	Sole Fault	 	The act or omission of any Person and such act or omission was not contributed, in any material way, to or caused by (i) the act or omission of any other Person outside of such Person’s
Group, or (ii) any Force Majeure event or any other event outside of the control of the first Person.
		
	Specifications	 	The description and specifications of the FPSO set out in Appendix D to the Charter, entitled “FPSO Description and Specifications”.
		
	Subcontractor	 	Any entity to whom Contractor has subcontracted any of its obligations or any of the Services under this Agreement.
		
	Subsea Related Equipment	 	Systems on board the FPSO to control the subsea valve functions, the operation of the Fluid Transfer Lines and the collection of data related to subsea Wells.
		
	Successful Run Commencement Date	 	Means the date on which the first successfully completed Run Time begins.
		
	Successful Run Completion Date	 	Means the date on which the first successful Run Time is completed to Charterer’s satisfaction.
		
	Supply Base	 	The Company’s supply base and facilities at Labuan Island, Malaysia.
		
	Term	 	Collectively, the Primary Term, any Secondary Term and any Extended Term of this Agreement.
		
	Third Party or Third Parties	 	Means any party not a member of Contractor Group or Company Group.
		
	Third Party Claim	 	Has the meaning given to it in Article 27.
		
	Time Rates	 	Shall have the meaning given in Attachment B to this Agreement.
		
	Topsides Equipment	 	Subsea Related Equipment, Process Equipment, and other equipment placed on or in the FPSO to monitor and control the subsea equipment, pipes and valves provided by Company, including a master
control station, a hydraulic power unit with respect to the

  

 16 

			
	 	 	subsea trees and manifolds, electrical power unit for the subsea equipment, uninterruptible power supply and topsides umbilical termination assemblies.
		
	Umbilicals	 	Equipment provided by the Company that provides for various services between the FPSO and the DTU and subsea Wells and other subsea facilities.
		
	UNCITRAL	 	The United Nations Commission on International Trade Law.
		
	Variation Order	 	A change in or revision to the Specifications, Services or any schedule in the Attachments appended hereto and agreed in writing between the Parties and issued pursuant to Article
13.
		
	Water Injection Module	 	The equipment on board the FPSO to lift, treat and inject seawater.
		
	Well or Wells	 	Any Crude Oil well or wells in the Field that Company may designate and connect to the FPSO in accordance with this Agreement.
		
	Willful Misconduct	 	An act or failure to act by any Person which was intended to cause (or which was in reckless disregard of or wanton indifference to the possibility that the act or failure to act would cause)
damage or harm giving rise to delay or suspension of the performance of this Agreement; and “supervisory personnel” for the purposes of this definition shall mean any employee of a Party who functions at a management level, or an officer
or director.

  
 The headings in this Agreement are
inserted for convenience only and shall be ignored in construing this Agreement. 
  
 Unless the context otherwise requires, in this Agreement the singular shall include the plural and vice versa, and unless otherwise provided in this Agreement, the use of the words “year” or “month” shall mean a calendar
year or month, respectively. 
  
 All provisions of and obligations, agreements,
undertakings, indemnities, governing law and dispute provisions, representations and warranties of the Parties set forth in this Agreement shall bind the Parties and be applicable for the full Term. 
  

 17 

	2.	THE FPSO AND MANAGEMENT 

  

	 	2.1.	Documentation, Management, Manning, Operation, Supervision and Maintenance. Subject to the terms and provisions of this Agreement, Company appoints Contractor to
provide for the continued documentation required of the FPSO to provide the Scope of Services set forth in Attachment A on the Company’s behalf, and to manage, man, operate, supervise and maintain the FPSO, including but not limited to the
Additional Equipment, the Mooring System and all other machinery, engines, computers, generators and all other equipment onboard the FPSO, commencing on the Delivery Date, all in accordance with the provisions of this Agreement and the Attachments
hereto. Notwithstanding the foregoing, no component of the Services to be provided and performed by Contractor hereunder shall include the performance of any service for the DTU or the Fluid Transfer Lines, which obligation for the performance of
all services for or required by the DTU Wells, Christmas Tree, Riser Facilities, Umbilicals or Fluid Transfer Lines shall remain the responsibility of Company. Notwithstanding the foregoing, Contractor shall perform the onboard operation of subsea
equipment in accordance with Company’s written instructions. 

  

	 	2.2.	Standard of Services. Contractor undertakes to provide the Services on behalf of Company in accordance with the terms and provisions of this Agreement (including the
Attachments) and in accordance with first class FPSO operating, maintenance and management practices. 

  

	 	2.3.	Schedule of Responsibilities. Contractor shall, subject to it receiving the O&M Compensation pursuant to the terms of this Agreement, provide and/or pay for (as
the case may be) all items required of Contractor or referred to as being its responsibility under this Agreement, including those items set forth in Attachment B. 

  

	 	2.4.	Structural Alterations. Company, as Charterer of the FPSO, shall have the right, pursuant the terms of the Charter and this Agreement, to have the Contractor make
structural alterations to the FPSO or install additional equipment (including process equipment) and other Company Property with notice to Contractor. Contractor shall be responsible for repair and maintenance of any such alteration or additional
equipment, and Clause 13.8 shall be applicable if such alteration or additional equipment causes a variation to or increase in Contractor’s costs to perform the Services, or if Contractor is requested by Company and agrees to undertake such
alteration or installation pursuant to a Variation Order. Company acknowledges that Contractor is relying upon the accuracy of the information provided by Company, including information relating to the reservoir properties of the Field and the soil
and environmental information given by it. Company will meet any additional costs that may be incurred by Contractor as a result of errors, omissions or inaccuracies in this information, except for obvious errors, omissions or inaccuracies
Contractor knew or ought to have known or discovered. Notwithstanding the foregoing, Company shall assume no liability for inaccuracies in information to the extent such inaccuracies in information fall within the ranges set forth in the
Specifications. 

  

 18 

	 	2.5.	Contractor Obligations. Pursuant to the provisions of this Agreement, Contractor shall perform the Services and Contractor’s other obligations under this
Agreement during the Term. 

  

	 	2.6.	Specifications. Contractor and Company each agree it has reviewed the Specifications and accepted them. However, the Parties agree that if there is any conflict or
discrepancy between the provisions of Part A of Appendix D and Part B of Appendix D of the Charter, the Specifications set forth in Part A of Appendix D shall prevail. 

  

	3.	DELIVERY, REDELIVERY AND SURVEY 

  

	 	3.1.	Delivery. Delivery to and management and operation of the FPSO by Contractor under this Agreement will take effect as of the Delivery Date. Subject to the relevant
provisions of this Agreement, including those which contemplate the reduction or cessation of O&M Compensation, Reimbursables shall begin to accrue and become payable, and the Fixed Fee shall begin to accrue and become payable, pursuant to the
terms of Articles 14, 15 and 16 of this Agreement. 

  

	 	3.2.	Redelivery. 

  

	 	(i)	Redelivery of the FPSO to Owner by Contractor, or to Company by Contractor (in the event Company exercises the Option and Closing occurs), shall occur, as soon as practical (and in
any event within ninety (90) Days following the expiration or termination of this Agreement (unless terminated by reason of the occurrence of total loss or a constructive total loss, requisition or as otherwise provided in Article 29 or Article 30),
or unless otherwise instructed by Company be demobilized by Contractor by such date. On expiration or termination of this Agreement for any reason whatsoever, the FPSO shall be redelivered on an “AS IS, WHERE IS, WITH ALL FAULTS” BASIS,
WITHOUT ANY WARRANTIES, WHETHER EXPRESS OR IMPLIED, IN REGARD TO ITS CONDITION OR OPERABILITY. 

  

	 	(ii)	Upon termination of this Agreement and Redelivery of the FPSO to Owner, Company shall, if required by the terms of Clause 24.8, pay to Contractor the Demobilization Costs in the
event the FPSO is demobilized following such termination. 

  

	 	3.3.	Redelivery Survey. 

  

	 	(i)	 In the event Charterer exercises the Option to acquire the FPSO pursuant to the terms of the FPSO Terms and Conditions of Sale, a survey of the FPSO will be
conducted to determine the FPSO’s condition on the termination of the Charter pursuant to the terms of the FPSO Terms and Conditions of Sale. If Charterer does not exercise the Option, the Parties may nevertheless elect, if they so agree in
writing, to have a survey of the FPSO conducted to determine the FPSO’s condition on termination of this Agreement (referred to as the 

  

 19 

	 	 
“Redelivery Survey”). Both Parties shall have the right to witness and have their respective representatives present during the
Redelivery Survey. The Parties shall engage the Classification Society to conduct the Redelivery Survey, if possible, not less than ninety (90) Days prior to termination of the Charter. 

  

	 	(ii)	If Company has not elected to exercise the Option, and the Parties have elected to have a survey of the FPSO conducted pursuant to the terms set forth in this Agreement, unless
otherwise agreed in writing, the Redelivery Survey will be conducted by the Classification Society. The costs of the Classification Society for such Survey and inspection of the FPSO carried out under this Clause 3.3 will be shared equally by
Company and Contractor and will not be subject to reimbursement as a Reimbursable Cost or otherwise. 

  

	 	(iii)	Except as may be required by the terms of the FPSO Terms and Conditions of Sale (in the event Company exercises the Option and Closing occurs), Company shall have no obligation to
pay for or contribute to any costs or expenses associated with any items of repair or maintenance required of the FPSO on Redelivery, or recommended by the Classification Society as a result of the Redelivery Survey. 

  

	 	3.4.	Deliverables. In addition to the Contractor deliverables otherwise required under this Article 3 or elsewhere in this Agreement, Contractor shall deliver the documents
listed below to Company, and Company shall deliver to Contractor the documents listed under Company’s name below: 

  

	 	(i)	At or prior to the Contract Date, Contractor shall deliver to Company a certified copy of corporate resolutions of Contractor authorizing the execution, delivery and performance of
(a) this Agreement and all transactions contemplated hereby by Contractor, and (b) the Contractor Guarantee and any obligations by Contractor Guarantor. 

  

	 	(ii)	In addition, at the Contract Date, Contractor shall have received a duplicate original of the Charter duly executed by the Owner. 

  

	 	(iii)	Prior to submitting its first invoice to Company pursuant to this Agreement, Contractor shall deliver to Company a valid and effective letter from Bank Negara Malaysia approving of
the receipt by Contractor of all O&M Compensation in United States dollars. 

  

	 	(iv)	At or prior to the Contract Date, Company shall deliver to Contractor the following documents: 

  

	 	(a)	a certified copy of corporate resolutions of Company authorizing the execution, delivery and performance of this Agreement and all documents and transactions contemplated
hereby by Company; and 

  

 20 

	 	(b)	a written notice from Company advising that Petronas has awarded Company the right to proceed with the FPSO Services under the terms and conditions of this Agreement.

  

	 	(v)	Simultaneously with the delivery of Owner Guarantee (as defined in the Charter) and the delivery of Charterer Guarantee (as defined in the Charter), as such deliveries are required
by the terms of the Charter, Contractor shall deliver Contractor Guarantee to Company, and Company shall deliver Company Guarantee to Contractor. 

  

	4.	CONTRACTOR’S OBLIGATIONS 

  

	 	4.1.	Timely Performance. Contractor shall timely perform all of the Services contemplated by this Agreement with due diligence and in a good, workmanlike and safe manner in
accordance with (i) the highest standards of international maritime and petroleum industry practices of a first class FPSO vessel contractor under the same or similar circumstances as those at the FPSO Site, (ii) the FPSO Operations and Maintenance
Manuals, (iii) the Specifications, (iv) instructions of Company made in accordance with, and without prejudice to, Contractor’s rights under this Agreement, (v) all applicable law, and (vi) the terms of this Agreement, including the
Attachments. Contractor shall, in carrying out and performing its duties hereunder, employ the same degree of care and diligence as though Contractor was in fact the owner of the FPSO. 

  

	 	4.2.	Performance of the Services. 

  

	 	(i)	 Subject to the terms and upon the conditions of this Agreement, throughout the Term Contractor shall, at its sole cost and expense but subject to its receipt of the
O&M Compensation as set forth in Attachment B, perform the Services, which shall include, but not be limited to, the management, manning, supervision, operation and maintenance of the FPSO, the management and operation of the Additional
Equipment, the O&M FPSO Work and the Redelivery Survey (if such Redelivery Survey is agreed in writing by the Parties), and shall maintain the FPSO in a good state of repair, order and condition in order that the FPSO remains fit for the service
required of her as described in this Agreement and the Specifications. In particular, Contractor shall ensure that the FPSO is at all times classified as a floating production storage and offloading vessel with the Classification Society and shall,
subject to Contractor’s receipt of the O&M Compensation as provided in Attachment B, pay the costs and take such actions to meet all requirements made by the Classification Society to maintain the FPSO Classification. Further, Contractor
shall maintain the FPSO and Additional Equipment in the same state of repair, order and condition as on the Delivery Date, and Contractor shall maintain the FPSO and Additional Equipment in the same state of repair, order and condition as described
in the Specifications, with exception for normal wear and tear. Contractor 

  

 21 

	 	 
shall undertake and maintain a timely preventative maintenance program and take steps to make repairs or correct deficiencies promptly and effectively in
accordance with acceptable standards of first class commercial ship management, maritime industry practices and petroleum industry practices. In addition to other obligations and duties hereunder, Contractor shall provide or perform all of the
Services described in the Attachments and in this Agreement. Unless expressly provided to the contrary in this Agreement, Contractor’s obligations to pay for costs and expenses to perform the Services shall be subject to a right of
reimbursement in respect of any such costs and expenses qualifying as Reimbursable Costs in accordance with Attachment B. 

  

	 	(ii)	Unless otherwise expressly provided in this Agreement (including as provided in Article 27), the O&M Compensation shall cover and include all the costs and expenses incurred or
to be incurred by Contractor to provide or perform all of the Services and there shall not be any other payments made by Company for Contractor’s provision or performance of the Services. Subject to the provisions of Clause 3.3, any repair,
maintenance, part or equipment replacement or overhaul of the FPSO or Additional Equipment required by the Classification Society or for which Contractor is obligated under this Agreement to perform in connection with the Services, including, but
not limited to, any work under Clause 5.8 (such work is herein referred to collectively, as the “O&M FPSO Work”), shall subject to Contractor’s receipt of the O&M Compensation as provided in Attachment B, be
undertaken and paid for by Contractor; provided, however, if the O&M FPSO Work is or is likely to be insured under the FPSO Insurance Cover enabling Contractor to make a claim for such work, Contractor shall promptly notify Company of such
O&M FPSO Work and Contractor shall inquire and, if appropriate, make a claim with the underwriters for payment under such FPSO Insurance Cover. Contractor shall file any such claim, and Company and Contractor shall jointly participate in the
pursuit of the claim with and endeavor to obtain insurance proceeds from the underwriters under the FPSO Insurance Cover. Contractor shall nevertheless perform the O&M FPSO Work as required, and Company shall pay Contractor the O&M
Compensation associated with the performance of such O&M FPSO Work; provided that all insurance proceeds (net of any deductions in respect of any deductible amounts) received from or paid by any member of the underwriters to any member of
Contractor Group in respect of such O&M FPSO Work shall be credited against the corresponding O&M FPSO Work costs paid by Company; 

  

	 	4.3.	Contractor Personnel. 

  

	 	(i)	 Contractor shall, in connection with the performance of the Services, provide or shall cause to be provided all Personnel as agreed in the Annual Budget for each
year of the Term, which shall include all Personnel required by applicable law and the Classification Society. 

  

 22 

	 	 
For the first contract year of the Term, Personnel shall be selected based upon (a) the procedures as set forth in Attachment B, (b) the proposed list of
Personnel (including Key Personnel) as set forth in Attachment C, and (c) the prior written agreement of the Parties. Such Personnel shall include all Personnel required for both marine crew and operating the FPSO, the Additional Equipment and the
Mooring System. Contractor represents and warrants that such Personnel are and shall at all times be competent and qualified to perform the Services as contemplated by this Agreement and will meet and comply with all applicable Malaysian laws and
regulations regarding such Personnel. Contractor shall not reassign or permit reassignment of Key Personnel without the prior written consent of Company, which consent shall not be unreasonably withheld; provided however, Company shall have the
continuing right to request upon reasonable cause shown that Contractor remove or substitute or cause to be removed or substituted any or all such Key Personnel or other Contractor Personnel (including any Personnel of any member of Contractor
Group), and upon such request, Contractor shall substitute, or cause to be substituted, such Personnel at a time in line with normal crew change activities, unless safety considerations require earlier substitution. All additional costs of any such
removal and substitution(resulting from the misconduct or incompetence of such Personnel as determined by Company), including any Reimbursable Costs and Time Rates incurred in connection with any such removal and substitution where additional to
costs that otherwise would have been incurred, shall be paid by Contractor and shall not be subject to recovery by Contractor as Reimbursable Costs or Time Rates. Key Personnel shall be fluent in both written and spoken English. The Master and all
officers and crew working onboard the FPSO shall be trained in accordance with the relevant provisions of the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, 1978 (“STCW”), as
amended in 1995, and the STCW Code, including any future amendments, supplements or replacements of such convention or code, and shall hold valid certificates of competence in accordance with the requirements of the law of the Flag State, and all
production personnel shall hold valid certificates of competence in accordance with the requirements of the relevant Classification Society. Such personnel shall be trained in accordance with, and otherwise comply and have all of the rights and
benefits of all applicable Malaysian labor and safety laws. 

  

	 	4.4.	Safety of Contractor’s Personnel. Contractor shall provide or shall ensure that all Contractor Group Personnel (and Company Group Personnel while on board
the FPSO) are provided with all necessary protective clothing; including, but not limited to, hardhats, gloves, non-slip, steel-toed safety boots, overalls, and ear and eye protection. In the event any Contractor Group Personnel are incapacitated
through injury or illness, Contractor shall be responsible for providing medical treatment and for such Personnel’s replacement without undue delay and shall immediately notify Company of same. 

  

 23 

	 	4.5.	Drug and Alcohol Policy. Contractor Group shall comply with Company’s drug and alcohol use policies including, without limitation, testing for drug,
alcohol or illegal substance use, and inspection for possession of drugs, alcohol or illegal substances and/or weapons. 

  

	 	4.6.	General Management and Operating Responsibilities. The general obligation of Contractor to manage, operate and maintain the FPSO set forth in this Article 4
shall, in consideration of Contractor receiving the O&M Compensation (unless otherwise expressly provided in this Agreement), include, but not be limited to the following duties and obligations: 

  

	 	(i)	protect and promote Company’s interests in all matters relating to the safe and efficient operation, manning, maintenance and management of the FPSO; 

 

	 	(ii)	manage and operate the FPSO, the Mooring System and the Additional Equipment on behalf of Company prudently, safely and efficiently and to ensure at all times the availability and
supply of an adequate complement of properly qualified and experienced Master, officers, crew and production operations personnel and spare parts commensurate with the operation of the FPSO as an FPSO in accordance with first class ship operating
and petroleum industry practice and requirements of the Classification Society to maintain the FPSO in class; 

  

	 	(iii)	all repair, maintenance and operation of the FPSO, Mooring System and Additional Equipment; 

  

	 	(iv)	arrange for all surveys by the Classification Society to maintain the FPSO Classification; 

  

	 	(v)	comply with manufacturer’s operations and maintenance requirements of the FPSO and Additional Equipment and all other equipment installed thereon including, without limitation,
the Process Equipment and the Mooring System; 

  

	 	(vi)	ensure that local and/or international maritime, safety and cargo custody standards are maintained in accordance with first class shipping and FPSO practice;

  

	 	(vii)	issue instructions to the Master to keep full and correct log books and to furnish Company with true and accurate copies of such log books when required; 

 

	 	(viii)	 arrange, supervise, implement and effect all maintenance and repairs and, if required due to any damage and, subject to Company’s approval which shall not be
unreasonably withheld, drydocking of the FPSO, if required; including the obligation that all Classification Society and 

  

 24 

	 	 
statutory certificates are kept valid as required by the operational status of the FPSO and Additional Equipment or as Company may additionally request;

  

	 	(ix)	keep proper and correct records of all surveys, repairs, drydockings and all other matters relating to maintenance of the FPSO, Mooring System and Additional Equipment;

  

	 	(x)	make all reasonable arrangements to ensure the safety of the FPSO, Mooring System and Additional Equipment from unlawful acts and prevent unauthorized persons from boarding the
FPSO; however, if armed security is required, this will be arranged for and provided by Company at its expense; 

  

	 	(xi)	arrange for the victualling and storing of the FPSO for its operational status and the number of Personnel onboard; 

  

	 	(xii)	procure, handle and effect payment for and store spare gear and spare parts for the FPSO and Additional Equipment as required by the Classification Society and as necessary to
properly maintain and repair the FPSO; 

  

	 	(xiii)	notify Company and assist in investigating and compiling information in pursuit and settlement of all insurance, salvage and other claims or demands in connection with the FPSO; and

  

	 	(xiv)	perform all management and operations responsibilities under this Agreement in such a manner that it duly observes and complies with all applicable regulations issued or adhered to
by the Government or any international agency, body or agreement to which the Government is a member or signatory (and any revisions thereof or amendments thereto); and 

  

	 	(xv)	procure and maintain during the Term the FPSO Insurance Cover. 

  

	 	4.7.	Compliance with Laws. In the performance of this Agreement, Contractor and its Personnel shall comply fully with all applicable present and future laws and
regulations of the country of the FPSO’s flag and registry, of Malaysia and any other applicable jurisdiction. 

  

	 	4.8.	Reports and Communications. All reports and all communications sent to Company shall be in the English language or, if not in English, shall be accompanied by a
quality translation (at Contractor’s expense, but subject to reimbursement, with prior Company approval, under the provisions of Attachment B) in English, unless otherwise agreed in writing by Company’s Representative.

  

	 	4.9.	Engine Logs and Records. Contractor shall ensure that the Master shall keep full and correct deck and engine logs (including daily Crude Oil and Processed Oil
inventories, records and reports as well as monthly fuel/water reports as instructed by Company). These will be available for inspection by Company 

  

 25 

	 	 
as required. Contractor shall ensure that the Master furnishes Company when required to do so with a true copy of the logs and with properly completed
loading and discharging sheets and other returns as Company may reasonably require. 

  

	 	4.10.	Performance Data. Contractor shall ensure that the FPSO and all Contractor Property will function without error or interruption
relating to the manner in which it captures, stores, uses, manipulates or reports data which includes an indication of or a reference to a day, month or year or any component thereof (“Performance Data”). Without limiting the
generality of the foregoing, such equipment shall be capable of processing century Performance Data and is capable of processing leap year Performance Data. 

							
	 	 	 	 	 	  	 
	4.11.	 	 Contractor Guarantee.    
	  	 
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 

  

	 	4.12.	Deliverables. In connection with the performance of the Services, Contractor shall deliver the Deliverables to Company pursuant to the requirements of this
Agreement. 

  

	 	4.13.	Operations Manuals. Not later than ninety (90) Days prior the Sailaway Date, Contractor shall deliver to Company proposed manuals to govern all marine and oil
processing and production operations in respect of the FPSO (“FPSO Operations and Maintenance Manuals”). Such manuals shall be prepared in compliance with and shall cover and include provisions to govern the operations of the
FPSO including at least the criteria set forth in this Agreement including the Specifications. After receipt of the proposed manual, Company shall have sixty (60) Days to review and provide any additional recommendations to the extent that Company
believes the proposed manual does not meet the above described criteria. Contractor shall include all such recommendations made by Company. 

  

	 	4.14.	Documentation. Contractor undertakes that the FPSO shall maintain on board at all times during the Term such valid vessel and FPSO documentation and
classification as may from time to time be required to enable the FPSO to carry out all required operations as an FPSO under this Agreement without delay, let, or hindrance. Contractor further undertakes that: 

  

	 	(i)	it shall be responsible for any fine or penalty or similar sanction arising from its failure to fulfill its obligations under this Clause 4.14; and 

  

	 	(ii)	the Downtime and Shutdown provisions of this Agreement shall apply for any period during which there is a reduction, suspension or complete cessation of FPSO Crude Oil production as
a result of action taken against the FPSO owing to Contractor’s failure (which shall be considered a breach of this Agreement by Contractor), to have such valid documentation on board the FPSO. 

  

 26 

	 	4.15.	FPSO Operations Affecting Processing of Crude Oil. Contractor shall in accordance with and subject to the requirements of this Agreement (including the
Specifications set forth in Attachment D), comply in all respects with Company’s instructions as to the flow rates of water, oil and gas while the FPSO is at the FPSO Site and processing and/or producing Crude Oil. 

  

	 	4.16.	Compliance. If at any time during the Term, Contractor is in material breach of or material default under any provision of this Agreement and after receiving
notice from Company of such material breach or material default, either fails or refuses to immediately commence to remedy the same and thereafter to diligently cure such breach or default, Company may, if it so elects, instruct Contractor to cease
performance of the Services (or any component thereof as requested by Company). In such event, Contractor shall, upon the receipt of such instruction, immediately cease the performance of the Services (or the required component thereof), as
instructed by Company until such breach or default is cured to Company’s satisfaction, and, without prejudice to the other terms and conditions of this Agreement, the provisions of Article 14 and Clause 16.9 shall apply during the entirety of
such cessation. 

  

	 	4.17.	Entry and Departure Authorizations. Contractor shall, in connection with the performance of the Services, secure and obtain any and all authorizations and
permits required for Contractor Property to enter, to proceed to, to remain and to operate in the Operating Area. Notwithstanding the above, and without prejudice to Article 20, prior to Contractor’s payment of any Government duties, fees,
taxes, or charges in respect of Contractor Property required by Contractor from time to time during the Term, Contractor shall notify Company and both Contractor and Company shall cooperate and use Best Efforts to eliminate or mitigate such duties,
fees and taxes; provided, Company shall pay all import and export charges (including clearance and brokerage charges), customs and excise duties imposed in Malaysia on Contractor Property required to perform the Services and on Company Property
(including any required customs bonds in relation to such Company Property and Contractor Property); provided, further, however, if Contractor fails or refuses to comply with Company’s reasonable and lawful request or instructions to eliminate
or mitigate such duties, fees, taxes or charges then to the extent such failure or refusal by Contractor resulted in Company’s payment of duties, fees, taxes or charges Contractor shall, without the right of reimbursement under the provisions
of Attachment B to this Agreement, pay or reimburse Company (as the case may be) for such duties, fees, taxes and charges; and Company shall have the right to deduct any such duties, fees, taxes or charges it paid from payments otherwise due
Contractor hereunder. 

  

	 	4.18.	Evidence of Authorizations, Approvals, etc. Contractor shall promptly furnish to Company at any time upon Company’s request, such evidence of the authorizations,
approvals, actions, and/or registrations, referred to in Clause 4.17 of this Agreement. 

  

 27 

	 	4.19.	Rate Savings. Contractor shall, throughout the Term, use all reasonable efforts to achieve Rate Savings in connection with its performance of the Services.

  

	5.	MAINTENANCE, REPAIR AND DRYDOCKING 

  

	 	5.1.	Machinery and Hull. Contractor shall maintain the FPSO’s continuous machinery survey cycle and the annual class inspections of the FPSO’s hull and
other parts of the FPSO required by the Classification Society. 

  

	 	5.2.	Maintenance and Repair. Contractor shall maintain and repair, or cause to be maintained and repaired, the FPSO, the Mooring System and Additional Equipment
throughout the Term (or any extension or renewal), and shall at all times maintain, repair and preserve the FPSO, Mooring System and Additional Equipment in good condition, working order and repair, ordinary wear and tear excepted, so that the FPSO
shall be tight, staunch, strong and well and sufficiently tackled, appareled, furnished, equipped and in every respect seaworthy and so that the FPSO, Mooring System and Additional Equipment are in good operating condition and conform to the
Specifications. Contractor shall maintain, repair and preserve the FPSO, Mooring System, Additional Equipment and other associated equipment so as to entitle it to the FPSO Classification and to conform to the Specifications. The FPSO, Mooring
System and Additional Equipment shall be repaired and overhauled by Contractor whenever reasonably necessary. The FPSO shall be dry-docked, cleaned and the bottom painted by Contractor only when required by applicable regulations of the
Classification Society to maintain the FPSO Classification, provided, however, that pursuant to the provisions of the Charter and this Agreement, drydocking should not be required during the initial twenty (20) year period of the Term. Contractor
shall give Company written notice of any such proposed drydocking ninety (90) days in advance if practicable but otherwise as long in advance as may be practicable under the circumstances. 

							
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 

  

 28 

											
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 

  

	 	5.4.	Minimal Interruption/Annual Maintenance Allowance. 

  

	 	(i)	Contractor shall perform all maintenance and repairs of the FPSO, the Mooring System and the Additional Equipment so as to cause minimal reduction in or to prevent the complete
cessation of the flow of oil or water injection capabilities. As and from the Delivery Date, Contractor and Owner shall together be allowed one (1) combined Annual Maintenance Allowance per contract year (or prorata for part thereof) of the Term,
(a) to perform planned maintenance and/or repairs on the FPSO and its equipment and/or (b) to avoid Downtime or Shutdown Assessments to the Fixed Fee, at Contractor’s option, and during which O&M Compensation shall be payable in full. Such
Annual Maintenance Allowance shall be proposed by Contractor and agreed by Company in accordance with the terms of this Clause 5.4. Not later than sixty (60) Days prior to the commencement of the Primary Term, and not later than sixty (60) Days
prior to the commencement of any Secondary Term, Contractor shall submit to Company a preliminary schedule of Annual Maintenance Allowance (the “Preliminary Schedule of Annual Maintenance Allowance”) for such Term which shall set forth the
number of hours of Annual Maintenance Allowance Contractor anticipates allocating to each contract year of the Primary Term, or to each contract year of any Secondary Term, as the case may be. Such Preliminary Schedule of Annual Maintenance
Allowance shall be drawn up to ensure that the aggregate number of Maintenance Allowance hours during the Primary Term or during any Secondary Term shall be the number of hours equal to the total number of hours calculated by Contractor (and agreed
in writing by Company) to occur during the 

					
	 relevant term (Primary Term or any Secondary Term) 
	  	 	 	For the avoidance of doubt, the Parties

					
	agree that each full contract year shall contain 	  	 	 	hours.

  

	 	(ii)	Concurrently with Contractor’s submittal to Company of its proposed Cost Target for each year of the Term, in accordance with the requirements of Attachment B, Contractor shall
also submit to Company a written Proposed Schedule of Annual Maintenance 

  

 29 

	 	    	Allowance which shall set out how Contractor desires to utilize and allocate its hours of Annual Maintenance Allowance during the forthcoming contract year and for successive years
to the end of the Primary Term or of any Secondary Term. The Parties agree that all Annual Maintenance Allowance hours budgeted in any Annual Maintenance Allowance Schedule shall be fixed for the first contract year of any such Schedule; provided,
however, that the hours allocated to any subsequent contract year or years in any Annual Maintenance Allowance Schedule may be varied by the next Annual Maintenance Allowance Schedule presented by Contractor. This Proposed Schedule of Annual
Maintenance Allowance shall be based on the Preliminary Schedule of Annual Maintenance Allowance but amended as and if necessary to take account of the actual maintenance and repair situation then existing. The total hours in such Proposed Schedule
of Annual Maintenance Allowance when added to the aggregate of all Annual Maintenance Allowance already used in the 

					
	 then current Primary or Secondary Term, shall never exceed 
	 	 	 	of the total time of the Primary or Secondary

	 	    	Term in question. 

  

	 	(iii)	No later than fifteen (15) Business Days prior to the end of each contract year during any Term, provided Company has received Contractor’s Proposed Schedule of Annual
Maintenance Allowance for the forthcoming year within the time limit set forth in subclause (ii) above, Company shall review and agree in writing with Contractor such Proposed Schedule of Annual Maintenance Allowance presented by Contractor, which,
once agreed, shall be referred to as the “Annual Maintenance Allowance Schedule”. 

  

	 	(iv)	The Fixed Fee shall be subject to reduction in accordance with Clauses 14.2 and 16.9 for any period of Shutdown or Downtime in excess of the Annual Maintenance Allowance Schedule
for that contract year. 

  

	 	(v)	Contractor may roll any Annual Maintenance Allowance hours which remain unused as of the last Business Day of the contract year of any Annual Maintenance Allowance Schedule for the
Primary Term or any Secondary Term into the next Annual Maintenance Allowance Schedule presented by Contractor; provided, however, that at the end of the Primary Term or any Secondary Term, the hours of Annual Maintenance Allowance that were not
used during any contract year of such Term may not be rolled into and used in any contract year of any following Term. 

  

	 	(vi)	In the event that any Annual Maintenance Allowance hours remain unused upon the expiration of the Primary Term, or upon the expiration of any Secondary Term, the provisions of
Clause 9.2(xiii) of the Charter shall apply to all such unused Annual Maintenance Allowance hours. 

  

	 	5.5.	Actual Hours Worked. [Intentionally Left Blank] 

  

 30 

	 	5.6.	No Adjustment of Fixed Fee. Subject to Contractor’s compliance with the requirements of Clause 5.4, the Fixed Fee shall not be subject to the terms of
Clause 14.2(ii) for as long as the Annual Maintenance Allowance set forth in the applicable Annual Maintenance Allowance Schedule has not been exceeded; provided, for any period of maintenance and/or repair requiring or causing Downtime or Shutdown,
after such Annual Maintenance Allowance as set forth in the applicable Annual Maintenance Allowance Schedule has been exceeded, the provisions of Article 14 and Clause 16.9 shall, without prejudice to other terms and conditions of this Agreement, be
applicable. 

  

	 	5.7.	Drydocking Due to Contractor Breach. 

							
	 	 	 	 	 	 	 
	 (i)      
	 	 Unauthorized Drydocking. 
	 	 	 	a drydocking of the FPSO or

	 	    	repair work on the FPSO which requires removal of the FPSO from the FPSO Site must take place (“Offsite Repair Work”), the following provisions shall apply,
concerning O&M Compensation and drydocking and repair costs and expenses : 

  

	 	(a)	Owner/Contractor Breach; Classification Society or Government Requirement. If any such drydocking or Offsite Repair Work is required due to (I) breach or failure of
any of the obligations, representations or warranties of either of Owner under the Charter or Contractor under this Agreement, (II) requirement or recommendation of the Classification Society, or (III) requirement or order of any Government body or
authority (which, in the case of both sub-clauses (II) and (III) of this Clause 5.7(i)(a), is not due to any event contemplated in Clauses 5.7(i)(b) or 5.7(i)(c) below), then subject to any remaining unused Annual Maintenance Allowance (during which
O&M Compensation is payable), O&M Compensation shall cease to be payable to Contractor from the time of commencement of the Shutdown Period, as such Shutdown Period commencement may be extended by any such unused Annual Maintenance
Allowance. 

  

	 	(b)	Company’s Primary Fault. If any such drydocking or Offsite Repair Work is required for any reason primarily caused by a breach of this Agreement by any of Company
Group, Company shall continue to pay the O&M Compensation during any such drydocking or Offsite Repair Work. 

  

	 	(c)	Force Majeure Event. If any such drydocking or Offsite Repair Work is required due to any Force Majeure event, without any such drydocking or Offsite Repair Work being
primarily caused by the existence of any pre-existing defects in or outstanding repairs needed to the FPSO or its equipment (as determined by an independent surveyor acceptable to both Contractor and Company) in breach of Charterer’s
obligations and warranties under the Charter or Contractor’s duties and obligations under this Agreement, Company shall pay the Force Majeure rates set forth in Clause 32.2 of this Agreement until the FPSO has been returned to the FPSO Site and
Full Flow Rates have resumed. 

  

 31 

	 	(d)	Costs and Expenses. 

  
 (1) In the case of any unscheduled drydocking or Offsite Repair Work all costs and expenses related to such unscheduled
drydocking or Offsite Repair Work (collectively, “FPSO Drydocking Costs”) shall be paid and borne by the Parties in the manner set forth in sub-clause (d)(2) below. The FPSO Drydocking Costs include: the costs and expenses of
(A) shutting down all systems on the FPSO and disconnecting the FPSO from the Riser Facilities and unhooking the FPSO and its turret from the Mooring System at the FPSO Site, (B) transporting the FPSO from the FPSO Site and subsequently returning it
to the FPSO Site from the drydocking or repair location, (C) the drydocking, upgrades and repairs, capital improvements or maintenance required and (D) all costs and expenses of returning the FPSO to the FPSO Site and having it reclassified by the
Classification Society and of reconnecting the FPSO and its turret to the Mooring System and Riser Facilities at the FPSO Site after such drydocking or Offsite Repair Work. 
  
 (2) All FPSO Drydocking Costs in sub-clause (d)(1) shall be borne and paid as follows: (A) by Contractor,
in the case of any event under either Clause 5.7(i)(a) or Clause 5.7(i)(c) above; and (B) by Company in the case of an event under Clause 5.7(i)(b) above. 
  

	 	(ii)	Excessive Drydocking - Company Cancellation Rights; Company’s Costs. 

  

	 	(a)	Drydocking Due to Contractor Breach or Contractor’s Fault. After the FPSO has been in drydock or Offsite Repair Work is being performed, due to the reasons
described in Clause 5.7(i)(a) or Clause 5.7(i)(b) above, for one hundred eighty (180) Days or more, Company shall have the right, upon giving three (3) Days prior written notice at any time after such one hundred-eightieth (180th) Day to terminate this Agreement. Upon any such termination, Contractor shall, without receiving any component of O&M
Compensation (except as otherwise provided in Clause 5.7(iv) below), perform or cause to be performed and shall bear and pay all costs, risks and expenses of: (I) recovery of the Mooring System, (II) the release or discharge of Contractor or
Subcontractor Personnel, and (III) towing and anchor handling vessel charges, import or export fees or duties and surveys of the FPSO; provided, however, that in the case of a termination by Company in any case where the drydocking or Offsite Repair
Work was primarily due to reasons set forth in Clause 5.7(i)(b), Company shall pay Contractor any FPSO Drydocking Costs for work performed prior to the effective date of Company’s termination (but not subsequent to such date).

  

	 	(b)	Drydocking Due to Force Majeure Event. If the unscheduled drydocking or Offsite Repair Work was due to reasons set out in Clause 5.7(i)(c) above, Contractor’s and
Company’s termination rights and time periods pertaining to such termination rights set forth in Clauses 32.3 and 32.4 of this Agreement shall apply. 

  

 32 

	 	(c)	Company’s Costs and Expenses. Contractor shall not be liable for any of Company Group’s costs and expenses during any period after Shutdown under this Clause
5.7 except to the extent that Owner or Contractor uses the services of Company Group in undertaking Contractor’s responsibilities and obligations described in this Clause 5.7. 

  

	 	(iii)	No O&M Compensation until Completion of Post Drydocking FPSO Commissioning. 

  

	 	(a)	No O&M Compensation until FPSO Back at the FPSO Site. If the FPSO leaves the drydock or such off-FPSO Site facility where work on the FPSO was performed for
reasons set forth in Clause 5.7(i)(a) above, and Company has not terminated this Agreement, Contractor shall not receive any O&M Compensation again until the FPSO: (I) has arrived on the FPSO Site in compliance with the Specifications, (II) is
fully and safely moored in accordance with Attachment A of this Agreement in a position in accordance with such Attachment A and no further actions are required by Contractor to connect the FPSO to the Riser Facilities, (III) is classified with the
FPSO Classification as required hereunder, and (IV) successfully re-performs the FPSO Commissioning (and all of the above is certified by the Classification Society confirming that the FPSO meets the requirements of (I), (II), (III) and (IV) above
in this sub-clause (iii)). Furthermore, in the case of reasons under Clause 5.7(i)(a), the period of time commencing at the time Contractor recommences Crude Oil processing operations until the time when Full Flow Rates are resumed shall be
considered Downtime for O&M Compensation purposes. 

  

	 	(b)	O&M Compensation in Other Cases. If drydocking or Offsite Repair Work is necessary due to reasons in Clause 5.7(i)(b) above, O&M Compensation shall continue to
be paid. If such drydocking or Offsite Repair Work was necessary for reasons in Clause 5.7(i)(c) above, Company shall continue to pay the Force Majeure rate set out in Clause 32.2 until all events in (I), (II), (III) and (IV) above of sub-clause
5.7(iii)(a) have been completed and Full Flow Rates have been resumed. 

  

	 	(iv)	Company’s Termination Payments for Termination under Clause 5.7(ii). In the event Company terminates this Agreement pursuant to its termination rights in Clauses
5.7(ii)(a) and 5.7(ii)(b) above, the following termination payment provisions shall apply: 

  

	 	(a)	In the case of termination where drydocking or Offsite Repair Work was due to events in Clause 5.7(i)(a) above, Company shall not be required to pay Demobilization Costs.

  

 33 

	 	(b)	In the case of termination where drydocking or Offsite Repair Work was due to events in Clause 5.7(i)(b) above, Company shall pay the Demobilization Costs. 

 

	 	(c)	In the case of termination where drydocking or Offsite Repair Work was due to events in Clause 5.7(i)(c) above, Company shall not be required to pay the Demobilization Costs.

  

	 	5.8.	Inspections/Tests. Contractor shall arrange for the inspections and tests in respect of any O&M FPSO Work and Services, work under a Variation Order, and other
work performed by Contractor Group, including in any drydock or repair yard or otherwise and any other inspections or tests to be carried out by Contractor Group. Company may, at its own cost and risk, attend these inspections and tests on the FPSO
or elsewhere. Contractor shall give Company prior written notice (sufficient to allow Company Group Personnel to be present) of any inspection or test to be conducted and of any changes to the time of any inspection or test. If Company is properly
given prior written notice and Company Group Personnel fail to be present at an inspection or test, Contractor may nevertheless conduct the particular inspection or test; provided however, the Classification Society must certify all inspections and
tests which may affect Classification Society requirements have complied with the applicable Classification Society rules. Company’s failure to witness any inspection or test shall not relieve Contractor of any obligations hereunder.

  

	 	5.9.	Company’s Inspection Rights. Company’s representatives may inspect any aspect of the Services, the O&M FPSO Work, work under a Variation Order or other
work performed and materials at all times wherever such work is being performed or the materials are being stored, to ensure the work is being performed in accordance with the Specifications or a Variation Order. 

  

	 	5.10.	Company Notification. Company shall have the right to notify Contractor if the installation or utilization of equipment, materials, spare parts or maintenance work are
defective or not in compliance with the applicable Variation Order, the Specifications or Classification Society requirements. 

  

	 	5.11.	Contractor to Remedy Defects. If the inspections and tests identify any matter in respect of which the FPSO does not comply with the applicable Variation Order, as
to Specifications or Classification Society requirements in relation thereto, Contractor shall, at its sole cost and expense (which shall not be subject to reimbursement as a Reimbursable Cost or Time Rate or pursuant to the Fixed Fee), remedy the
defect and submit it for further inspection or testing. 

  

	 	5.12.	 Equipment Replacement. If any equipment or machinery or any component part thereof of either the FPSO or the Additional Equipment is damaged,
defective or breaks at any time during the Term and such equipment, machinery or component part must be replaced, the costs of any replacement thereof shall, subject as hereinafter provided, be borne by the Company. In the case of replacement of
equipment, machinery or any component part thereof which is covered by or subject to any manufacturer’s, supplier’s or vendor’s warranty or guarantee, Contractor shall use Best Efforts either (i) to 

  

 34 

	 	 
recover from such manufacturer, supplier or vendor the costs (or part thereof) paid by Contractor for such damaged, defective or broken equipment or
machinery, or (ii) to receive from such manufacturer, supplier or vendor replacement equipment or machinery that is not damaged, defective or broken. In the case of (i) above, all amounts recovered by Contractor shall be credited against
corresponding amounts paid by Company for such damaged, defective or broken equipment or machinery and, in the case of (ii) above, all replacement equipment and machinery received from a manufacturer, supplier or vendor as aforesaid, shall be
utilized by Contractor to replace the damaged, defective or broken equipment or machinery of the FPSO or the Additional Equipment (as the case may be), and Company shall have no obligation to pay for such replacement equipment or machinery as a
Reimbursable Cost or otherwise. 

  

	 	5.13	FPSO Assistance. In the event that at any time during the Term, 

  

	 	(i)	as an agreed alternative to FPSO drydocking or Offsite Repair Work for which Contractor would otherwise be responsible under Clause 5.7(i)(a), the FPSO must be assisted at the FPSO
Site by another vessel of any kind in order for the FPSO to remain at the FPSO Site conducting Commercial Operations; or 

  

	 	(ii)	the FPSO is assisted at the FPSO Site by another FPSO, at Contractor’s sole option, in order for the FPSO the FPSO to remain at the FPSO Site conducting Commercial Operations;

  
 Company shall not be required to pay any costs
or expenses of the assisting vessel by way of either increased O&M Compensation or by any other means. Nor shall Company be required to pay any costs or expenses of transporting such assisting vessel to the FPSO Site, mooring it or securing it
to the FPSO or the Mooring System or for any other costs of operation while such assisting vessel is on and operating at the FPSO Site, except for the normal O&M Compensation agreed to in this Agreement. This Clause does not create any
obligation on the part of Contractor to provide a replacement FPSO. 
  

	6.	INTENTIONALLY LEFT BLANK 

  

	7.	COMPANY OBLIGATIONS 

  

	 	7.1.	Company’s Instructions. The instructions of Company shall be consistent with the provisions of this Agreement. Such instructions shall be confirmed in
writing by Company Representative prior to implementation. 

  

	 	7.2.	Consents and Approvals. Subject to the provisions of this Agreement regarding Contractor’s obligations to obtain and maintain certain consents,
authorizations, approvals, permits and licenses, Company shall obtain and maintain such consents, authorizations, approvals, permits and licenses for which it is responsible pursuant to the terms of this Agreement, including those required under the
PSC (“Government Approvals”), to enable Company to perform its obligations under this Agreement and Company shall save, indemnify, defend, protect and hold Contractor Group harmless from and

  

 35 

	 	    	against any cost, expense, Claim, demand or liability suffered or incurred by Contractor as a result of Company’s failure to comply with this Clause
7.2. Contractor agrees to provide all reasonable assistance and co-operation as may be required to assist Company in obtaining and maintaining the Government Approvals. 

  

	 	7.3.	Company Assistance. Company agrees to provide all reasonable assistance and co-operation as may be required to assist Contractor in obtaining and maintaining
any consents, authorizations, approvals, licenses for which Contractor is responsible including visas or work permits for Contractor Group Personnel that Contractor may be required to obtain in Malaysia. 

  

	 	7.4.	Company Costs. Company shall, except as hereinafter provided, bear and pay for the following reasonable costs incurred by Contractor following the Delivery Date
without limitation to Contractor’s right of reimbursement for Reimbursable Costs as set forth in Attachment B: 

  

	 	(i)	all costs associated with the repair of any damage or accident to the FPSO and Additional Equipment not payable by Contractor pursuant to the terms of this Agreement;

  

	 	(ii)	all costs arising from corrosion in the FPSO’s cargo tanks and cargo lines unless due to the Gross Negligence or Willful Misconduct of any member of Contractor Group (in which
case, such costs shall be the sole responsibility of Contractor); 

  

	 	(iii)	subject to a Variation Order, all costs of modifications or repairs of the FPSO after the Delivery Date required as a result of any change in the laws or regulations of Malaysia, or
any change in the Classification Society’s requirements, or change in the FPSO’s flag or registry, in each case occurring after the Contract Date; 

  

	 	(iv)	all bunkers, fuel, lubricants and chemicals suitable for the FPSO’s requirements; 

  

	 	(v)	subject to the provisions of Clause 5.7 and Clause 5.13 and except as set forth therein, support vessels (including all support vessels required by the Master on disconnection from
and reconnection of the FPSO to the Riser Facilities, during offloading or discharging operations, and during bad weather or emergencies of any kind); 

  

	 	(vi)	transportation of Contractor Group’s Personnel, Contractor Property and spare parts between the point of arrival in Malaysia (which shall be Labuan) and the FPSO; and

  

	 	(vii)	facilities for the receipt and removal of slops and other oil residues from the FPSO, as well as all ship’s waste beyond the capacity of the FPSO’s incinerator (unless
caused by the Gross Negligence or Willful Misconduct of any member of Contractor Group), when required by the Master. 

  

 36 

	 	7.5.	Company Supplied Items. Company undertakes to provide and/or pay for (as the case may be) all items referred to as being Company’s responsibility under Attachment
B and as set forth elsewhere in this Charter. 

									
	 	 	 	 	 	 	 	 	 
	7.6.    	 	 Company Guarantee.    
	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

  

	8.	TITLE TO SPARE PARTS 

  

	 	8.1.	Company Property. Subject to Clause 8.3 hereto, all spare parts, stores and provisions provided by Contractor Group at its expense, if any, shall become Company
Property when Contractor receives from Company the Reimbursable Costs, if any, associated with such spare parts, stores and provisions. Notwithstanding the foregoing, all spare parts and machinery or equipment when permanently installed on the FPSO
shall, , become part of the FPSO and Owner Property, unless Company exercises the Option and Closing occurs or when installed on the Additional Equipment, shall become part of such Additional Equipment and shall become Company Property. Contractor
shall keep accurate records of all spare parts and other equipment or material imported. 

									
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

  

	 	8.3.	 Procedures on Termination. In the event the Charter terminates or is cancelled for any reason other than Company’s exercise of the Option in
connection with the acquisition of the FPSO, Company shall not be required to take over, pay for, reimburse to or purchase from Contractor or any Subcontractor of Contractor any component of Contractor Property (including, without limitation, spare
parts, tools, equipment, materials, moveable property and consumables onboard the FPSO or onshore) and whether or not purchased for Company’s account pursuant to the terms hereof. or Contractor shall, following the effective date of any
termination or cancellation of this Agreement (except for termination for the reasons set out in Clauses 24.1 (i), 24.1 (ii) or 24.3), take over from and reimburse Company for all spare parts, tools, equipment, movable property and consumables
onboard the FPSO and onshore which are owned by Company and which have been purchased or ordered by Contractor (or any Subcontractor) for use in connection with the Services and for which Contractor (or any Subcontractor) has received from Company
Reimbursable Costs associated with the purchase of such spare parts, tools, equipment, materials, moveable property and/or consumables. Contractor shall, within ten (10) Business Days of any such termination or cancellation, reimburse to Company (in
United States dollars) an amount equal to all Reimbursable Costs previously received by Contractor from 

  

 37 

	 	 
Company in connection with the purchase of such spare parts, tools, equipment, materials, moveable property and consumables, discounted by 10% per year or
pro rata for part thereof) (discounted annually from the previous year’s calculated value) for each year or part thereof between the date of receipt by Contractor of the related Reimbursable Costs and the date of termination or cancellation of
the Charter and this Agreement. In the event that this Agreement is terminated in accordance with Clause 24.1 (i), 24.1(ii) or 24.3 then Contractor shall not be required to reimburse Company for any such spare parts, tools, equipment, movable
property and consumables onboard the FPSO and onshore which have been purchased or ordered by Contractor (or any Subcontractor) for use in connection with the services, and all such items shall be deemed to be part of the FPSO and Owner
Property. 

  

	9.	USE OF THE FPSO 

  

	 	9.1.	Use. Contractor shall provide meals and accommodations for up to 10 of Company Group Personnel. Any additional Company Group Personnel shall be provided meals and
accommodations based on the availability of space. Contractor shall be entitled to its Reimbursable Costs associated with this Clause, if any, such Reimbursable Costs are incurred by Contractor. 

  

	 	9.2.	Company’s Lay Up Rights. Company shall have the option of laying up the FPSO at an agreed safe port or place for all or any part of the Term, in which case the
O&M Compensation (less all Rate Savings realized by Contractor) shall continue to be payable during any period of lay-up until Charterer terminates the Charter and this Agreement. If Company, having exercised such lay-up option, desires the FPSO
again to be installed at the FPSO Site or other Company location, Contractor will, upon receipt of written notice from Company to such effect, immediately take steps to restore the FPSO to service as promptly as reasonably possible. This lay-up
option granted to Company may be exercised one or more times during the Term. 

  

	 	9.3.	FPSO Relocation. Under the Charter, Charterer has the right to relocate the FPSO at any time to any other location within the territorial waters of Malaysia. Company
agrees that Contractor shall be compensated for additional and reasonable actual and documented Reimbursable Costs and Time Rates (if any) of Contractor in the performance of the Services required to relocate the FPSO to the new location pursuant to
the terms of this Agreement and Attachment B. During any relocation, Company shall continue to pay the O&M Compensation. 

  

	 	9.4.	Third Party Oil. Subject to the Variation Order provisions of Article 13, Company shall have the right to have the FPSO receive and process Crude Oil, water and gas
and to store and offload Processed Oil produced by or belonging to Third Parties without any increase in the Fixed Fee; provided Company shall meet any additional Reimbursable Costs and Time Rates, if any are required, to receive, process, store, or
offload such Third Party Crude Oil. 

  

 38 

	10.	TERM OF AGREEMENT 

  

	 	10.1.	Commencement Date/Term. This Agreement shall become effective as of the Contract Date. The Term of this Agreement shall commence as of the Delivery Date, and shall, as
hereinafter provided, continue in effect thereafter throughout the Term until terminated in accordance with the termination provisions hereof, or as otherwise provided in this Agreement. 

  

	 	10.2.	Early Termination. With effect from the Delivery Date, the period of this Agreement shall be not less than the Primary Term except where this Agreement is cancelled or
terminated earlier in accordance with the terms hereof. 

  

	 	10.3.	Renewal Options. This Agreement shall, at the sole option of Company by notice in writing to Contractor provided at least nine (9) months prior to the expiration of
the then current Term, continue for one or more Secondary Terms of three (3) years each up to a maximum of fifteen (15) additional years beyond the Primary Term, unless otherwise earlier terminated in accordance with the provisions of this
Agreement. Company’s failure to notify Contractor within the time period set forth above shall be deemed to be Company’s election not to extend this Agreement for a Secondary Term. In the event the term of the Charter is renewed or
extended this Agreement shall be extended for the same period. 

  

	 	10.4.	Compensation. The compensation payable by Company to Contractor during the Term shall be as set out in this Agreement, including Attachment B, unless reduced or
otherwise adjusted as contemplated by the terms of this Agreement. 

  

	 	10.5.	Extended Term. On expiration of the Primary Term and any Secondary Term, the applicable term then ending (whether the Primary Term or Secondary Term) shall be
automatically extended for an additional period which period shall equal the number of Days of Shutdown recorded by the Parties during the respective term of this Agreement (i.e., during the Primary Term or Secondary Term in question); subject,
however, to a maximum extended period of thirty (30) Days of Shutdown for the Primary Term and a maximum of ten (10) Days of Shutdown for each Secondary Term. 

  

	11.	RELATIONSHIP OF THE PARTIES 

  

	 	11.1.	Independent Contractor. In the performance of this Agreement, Contractor is and shall remain an independent contractor, maintaining complete and exclusive
control over Contractor Group Personnel. Where Contractor is required to furnish Personnel, such Personnel shall at all times remain in the employment of Contractor or other members of Contractor Group. Without prejudice to Article 27,
Contractor shall assume all responsibilities and obligations and shall save, indemnify, defend, protect and hold harmless Company Group from all losses, Claims or demands with regard to such Personnel that may be imposed by virtue of any applicable
laws and regulations imposed by any authority having jurisdiction including, but not limited to visas, permits, wages, benefits or other amounts due to such Personnel provided always that nothing in this Clause shall limit or affect
Contractor’s entitlement to receive approved Time Rates and Reimbursable Costs, pursuant to the provisions of Article 14. 

  

 39 

	 	11.2.	No Authority. 

  

	 	(i)	Nothing in this Agreement shall be construed to appoint or constitute one Party as a representative or agent of the other, and the Parties shall have no authority to commit or bind
the other or any of its respective Affiliates. Nothing in this Agreement shall be construed to appoint or constitute one Party as a representative or agent of the other, and the Parties shall have no authority to commit or bind the other or any of
their respective Affiliates. 

  

	 	(ii)	Company enters into this Agreement on its own behalf and for its own benefit. Accordingly, Contractor shall look only to Company for the performance of this Agreement (Company being
in all respects fully responsible for such performance, except to the extent any operations or performance are being performed by the Owner under the Charter), and waives any and all rights to make or pursue any Claim against the Co-Venturers with
respect to operations under this Agreement or the PSC. 

  

	 	11.3.	Control of FPSO. Subject to the provisions of Article 27, the Master shall be in charge of the FPSO and shall be responsible for, and have ultimate authority in
relation to the safe operation of the FPSO, and the safety and discipline of all persons on board the FPSO. 

  

	 	11.4.	Compensation Adjustment/Change of Law. Subject to the provisions of Article 20.6 if after the Contract Date there are any changes in the laws and regulations of
Malaysia or any change in the Classification Society requirements or any change in the FPSO’s flag or registry requirements with which Contractor is obligated to comply and which affects the cost of Contractor’s performance of its
obligations under this Agreement, there shall, subject to the provisions of Article 13, be a corresponding adjustment (up or down) in the compensation payable to Contractor as Time Rates and/or the Reimbursable Costs, so that Contractor is in no
better or worse financial position. Contractor shall promptly notify Company of any such change and provide documentation reasonably satisfactory to Company to evidence such change and the effect it may have on Contractor’s financial position
(including its position with respect to Time Rates and any Reimbursable Costs ) in respect of this Agreement. 

  

	 	11.5.	Indemnity as to Contractor Personnel Wages. Contractor shall be responsible for and shall save, indemnify, defend, protect and hold Company Group harmless from
any liability for payment of all wages, salaries, benefits and other remuneration and for payment of all taxes and contributions required by governmental authorities (including any political subdivision thereof) applicable to Contractor Group
Personnel, including, without limitation, payment in compensation for an accident, injury or occupational disease. Nothing in this Clause shall limit or affect Contractors’ entitlement to receive approved Reimbursable Costs or Time Rates under
this Agreement. 

  

 40 

	 	11.6.	Supervision and Control. Without prejudice to Article 27, the performance of the Services shall be always under the supervision and control of Contractor, provided
that Company may inspect the performance of the Services from time to time and advise Contractor of any substandard performance. Company and the Government shall have access at all times to the FPSO and all places where the Services are being
performed for the purpose of inspecting the performance of the Services. The inspection of any aspect of the performance of the Services, which does not interfere with the Services, shall not excuse Contractor from any obligation hereunder. The
failure on the part of Company or others to inspect the Services, to witness, test, to discover defects or to fail to reject Services performed by Contractor that are not in accordance with this Agreement shall not relieve Contractor from liability
or obligation under this Agreement. 

  

	 	11.7.	No Mineral or Hydrocarbon Deposit Rights. Contractor and any other members of Contractor Group, and their respective officers, directors, employees, agents,
subcontractors, successors and assigns shall have no equitable, legal or other interests in any mineral and hydrocarbon deposits which are known or which might be discovered by Company. If any such Persons assert or attempt to establish or establish
any interest in the mineral or hydrocarbon deposits, Contractor shall save, indemnify, defend, protect and hold harmless Company Group from and against all Claims, losses, damages and costs (including legal costs) resulting therefrom.

  

	 	11.8.	No Exemption from Health, Safety and Environmental Laws. Contractor shall not, without the prior, express, written and clear consent of Company (which consent shall
not be unreasonably withheld), apply to or petition, or enter into negotiations with, or agree with the Government or any Government representative for a variation of or exemption from laws and regulations concerning safety, health, pollution (air,
water, noise) and environmental protection relating to this Agreement or the Services. 

  

	 	11.9.	Control of Crude Oil Production. At all times during the Term, Company, through Company Representative, shall have control of the direction of Crude Oil production
from the Wells. 

  

	12.	REPRESENTATIONS AND WARRANTIES 

  

	 	12.1.	Contractor Fully Informed. By agreeing to perform the Services and by entering into this Agreement, Contractor represents and warrants that, as of the Contract Date,
(i) it has fully acquainted itself with the information contained in this Agreement and the Attachments and knows of no reason why any physical or material aspects would interrupt or delay the diligent performance of its obligations in accordance
with this Agreement; and (ii) it is fully acquainted with the nature of the duties it undertakes to perform in this Agreement and knows of no reason and anticipates no interruptions, whether by labor disputes or otherwise, which would prevent it
from diligently performing its obligations in accordance with this Agreement. 

  

 41 

	 	12.2.	Other Representations and Undertakings of Contractor. Contractor represents, warrants, covenants and undertakes that the following is or will be (as appropriate) true
and correct: 

  

	 	(i)	As of the Contract Date (unless otherwise stated below), 

  

	 	(a)	it is duly organized and validly existing under the laws of Malaysia; 

  

	 	(b)	it has the full power and authority to execute, deliver and perform its obligations under this Agreement and to enter into and carry out the transactions contemplated herein
and, except for Permitted Encumbrances, there are no Encumbrances on, over or relating to the FPSO; 

  

	 	(c)	the execution, delivery and performance of this Agreement has been duly authorized, executed and delivered, this Agreement constitutes a valid and binding obligation of
Contractor, enforceable according to its terms and such execution, delivery and performance is not in breach, conflict with or in contravention of applicable law, rule or regulation or court order or decree or of Contractor’s corporate
organizational documents or any mortgage, indenture, agreement or undertaking to which Contractor is a party or by which it is bound or which otherwise affects or covers the FPSO, nor does such execution, delivery or performance require consents
under any other agreement to which Contractor is party or is bound; 

  

	 	(d)	there are no Third Party rights that limit or restrict the ability of Contractor to perform its obligations under this Agreement (including the Services) and all permits,
licenses, and other rights that are the obligation of Contractor in connection with this Agreement have been obtained; 

  

	 	(e)	there are no material actions, suits or proceedings pending, or to the knowledge of Contractor, threatened against or affecting it or the FPSO that would, if determined
adversely thereto, impair the ability of Contractor to perform its obligations under this Agreement; 

  

	 	(f)	there are no petitions filed or threatened to be filed, orders entered or resolutions passed for the winding up, receivership, bankruptcy or reorganization of Contractor,
Contractor has not made an assignment for the benefit of creditors, nor has a receiver or administrator been, about to be or threatened to be, appointed to its assets; 

  

	 	(g)	there are no defaults or events of default existing or potentially likely to exist by Contractor with regard to this Agreement; 

  

 42 

	 	(h)	there is no information known to Contractor which would cause the information disclosed by Contractor pursuant to this Agreement in any provided documents to be materially
incorrect or misleading; 

  

	 	(i)	Contractor has and will have the necessary expertise and is ready and able to perform its obligations (including the Services) hereunder in accordance with the terms of this
Agreement; 

  

	 	(j)	the use of the FPSO as contemplated hereunder will comply with all applicable safety, health and environmental laws and regulations; and 

  

	 	(k)	the Specifications, the O&M FPSO Work and the other Services to be performed by Contractor hereunder comply with all applicable safety, health and environmental laws and
regulations. 

  

	 	(ii)	On the Delivery Date, Contractor will be deemed to have certified to the Company that: 

  
 (a) on the Delivery Date, the FPSO is (1) classed by the Classification Society in compliance with its FPSO 

			
	Classification and the Specifications, (2) 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 and (4) has a provisional FPSO Classification from the Classification Society; 

 
 (b) the FPSO has all required certificates of financial responsibility
and other certificates concerning pollution required by applicable law; and 
  
 (c) all representations, warranties, covenants and undertakings set forth in Clause 12.2(i) are true and correct and will be performed, as appropriate, as of such Delivery Date. 
  

	 	(iii)	Prior to the Delivery Date and throughout the Term of this Agreement: 

  

	 	(a)	this Agreement, will remain, duly authorized, executed and delivered by Contractor and will constitute a valid and binding obligation of Contractor, enforceable against it in
accordance with its terms; 

  

 43 

	 	(b)	except as otherwise permitted by this Agreement, Contractor agrees (by way of an undertaking and not by representation of fact) that it will not change its jurisdiction of
incorporation or organization, merge or otherwise combine with another entity or transfer all or substantially all of its assets to another entity without Company’s prior written consent; provided however that notwithstanding anything to the
contrary contained in this Agreement, Company shall not withhold consent to a proposed transfer or assignment of this Agreement, and any rights hereunder, by Contractor if: (1) such transfer or assignment is to an Affiliate of Contractor financially
and technically capable of performing the Services and satisfactory to Company; (2) the Contractor Guarantee remains in full force and effect in accordance with its terms such that the guarantee of Contractor’s obligations under this Agreement
in favor of Company is not adversely affected by such transfer or assignment; (3) the Company, Contractor and any acceptable Contractor Affiliate have executed a Novation Agreement satisfactory to Company, pursuant to the provisions of Article 25 of
this Agreement, whereby such permitted transferee takes assignment and Novation of this Agreement and other relevant matters; and (4) following such assignment, Contractor and Contractor Affiliate shall remain Affiliates throughout the Term;

  

	 	(c)	Contractor shall continue to have full power and authority to perform all of its obligations under this Agreement and to carry out all of the transactions contemplated by the terms
of this Agreement. 

  

	 	12.3.	Company Representations and Warranties. Company represents and warrants that the following is and will be, as appropriate, true and correct: 

 

	 	(i)	As of the Contract Date: 

  

	 	(a)	it is a corporation duly organized and validly existing under the laws of The Bahamas with a branch office in Malaysia; 

  

	 	(b)	it has, the full power and authority to execute, deliver and perform its obligations under this Agreement and to enter into and carry out the transactions contemplated
herein; 

  

	 	(c)	the execution, delivery and performance of this Agreement will not be in breach, conflict or contravention of applicable law, rule or regulation or court order or decree or
Company’s Memorandum and Articles of Association, or any mortgage, indenture, agreement or undertaking to which Company is a party or by which it is bound, nor require the consents (that have not been obtained) under any other agreement to
which Company is party or bound and this Agreement has, by proper corporate action, been duly authorized, executed and delivered by Company and all steps necessary have been taken to constitute this Agreement a valid and binding obligation of
Company; 

  

 44 

	 	(d)	the Company Group is entitled to develop, produce and process Crude Oil, inject water and export Processed Oil from the FPSO Site by use of the FPSO;

  

	 	(e)	there are no material actions, suits or proceedings pending, or to the knowledge of Company threatened, against or affecting it that would, if determined adversely thereto,
substantially impair the ability of Company to perform its obligations under this Agreement; 

  

	 	(f)	subject to the provisions of the PSC, there are no Third Party rights that limit or restrict the ability of Company to perform its obligations under this Agreement and all
permits, licenses, and other rights that are obligation of Company in connection with this Agreement have been or will be obtained; 

  

	 	(g)	there are no petitions filed or threatened to be filed, orders entered or resolutions passed for the winding up or bankruptcy of Company, Company has not made an assignment
for the benefit of creditors, nor, to its knowledge, has a receiver or administrator been, about to be or threatened to be, appointed to its assets; 

  

	 	(h)	there are no material defaults or events of default by Company existing or potentially likely to exist with regard to this Agreement; and 

  

	 	(i)	there is no information known to Company which would cause the information disclosed by Company pursuant to this Agreement in any provided documents to be materially
incorrect or misleading. 

  

	 	(ii)	On the Delivery Date, by taking delivery of use and possession of the FPSO, Company will be deemed to have restated and certified to Contractor that all of its representations and
warranties in Clause 12.3(i) are true and correct. 

  

	13.	VARIATIONS 

  

	 	13.1.	Generally. 

  

	 	(i)	Variations in the Services or variations to the Specifications shall only be made in accordance with the provisions of this Article 13. 

  

	 	(ii)	Without limiting the foregoing and for illustrative purposes only, the following would be regarded as a variation in the Services or the Specifications, without prejudice to the
provisions in this Article regarding Variation proposals: 

  

 45 

	 	(a)	the FPSO receives Crude Oil having characteristics different from those set forth in the Specifications which thereby affects the operability of the FPSO or necessitates
re-engineering or equipment modifications; provided, that such change in Crude Oil is not caused by Contractor Group; 

  

	 	(b)	instructions are issued by Company which would result in a change to the Specifications; or 

  

	 	(c)	any change in applicable law, including any treaty, decree, regulation, or Classification Society requirement occurring after the Contract Date which has an adverse impact on
either Party in connection with its performance of this Agreement; or 

  

	 	(d)	information or data for which Company is responsible under this Agreement is found to be inaccurate, inadequate, incomplete, or materially differs from actual conditions
thereby giving rise to delay or cost consequences. 

  

	 	(iii)	Without limiting the foregoing and for illustrative purposes only the following would not be regarded as a variation in the Services or the Specifications: 

 

	 	(a)	activities or resources to the extent necessitated, in whole or in part, by the act, error, negligence or omission of Contractor Group; or 

  

	 	(b)	activities or resources to the extent necessitated, in whole or in part, by Contractor Group’s failure to comply with any provision of this Agreement. 

 

	 	13.2.	Company’s Request for Variation. Company may, at its sole discretion, at any time, and from time to time, request in writing a variation to the Services, the
O&M FPSO Work or to the Specifications and Contractor shall (subject to this Article) implement said variation and said variation shall not in any way be construed as invalidating this Agreement or any ancillary document, but shall form part of
the Services. However, Contractor shall not be obligated to proceed with any variation which would entail changes to the FPSO or the Services or the Specifications that are in Contractor’s reasonable opinion, outside the general intent of this
Agreement, or would, in Contractor’s reasonable opinion, render the FPSO unsafe as determined by the Classification Society. 

  

	 	13.3.	Variation Proposal. If Contractor receives any document, request or instruction from Company or an event (other than as specified in Clause 13.1(iii)) occurs, either
of which Contractor considers would constitute a variation to the Services, the O&M FPSO Work or the Specifications, it shall as soon as is reasonably practical advise Company as to the circumstances or happening of said occurrence. In that
case, or if Company requests a variation with reasons therefor under Clause 13.2, Contractor shall issue a written variation proposal to Company providing: 

  

	 	(i)	a detailed technical narrative description of that which Contractor considers constitutes the variation with a full and precise list of impacts and interfaces; and

  

 46 

	 	(ii)	a detailed calculation as to increase or decrease in O&M Compensation payable to Contractor required for performing the proposed variation. 

  

	 	13.4.	Contractor’s Variation Proposal; Variation Order. On receipt of a written variation proposal from Contractor, Company may accept or reject it in its reasonable
discretion. If Company reasonably determines that a variation proposal constitutes a variation in the Services and accepts the variation proposal, Contractor shall issue a Variation Order for signature by both Parties incorporating the terms of the
variation proposal. A Variation Order when so signed by both Parties shall be binding on both Parties, Contractor shall execute the change as provided by such Variation Order, and the subject matter of and Company’s performance under the
Variation Order shall be governed by the provisions of this Agreement. 

  

	 	13.5.	Increase in Compensation. Any Variation Order under this Agreement that causes an increase in the Reimbursable Costs, the Time Rates or the Fixed Fee payable to
Contractor pursuant to the applicable Annual Budget shall include such increase payable in accordance with any of the following, as Contractor and Company may in writing agree: 

  

	 	(i)	by payment of an agreed lump sum amount in advance; or 

  

	 	(ii)	by a change to the Reimbursable Costs, the Time Rates or the Fixed Fee; or 

  

							
	 (iii)      
	 	failing agreement as to (i) or (ii), on the basis of actual documented costs 	 	 	  	by payment

	 	    	after satisfactory performance and completion of the Variation Order. 

  

	 	13.6.	Variation Order Costs. The basis for the costs referred to in Clause 13.5 includes all costs directly arising from performance of the applicable Variation Order; that
is, Subcontractor costs, materials costs and Contractor’s reasonable overhead costs. If the Variation Order is performed by Contractor Personnel, then the cost referred to in Clause 13.5 above shall be limited to the actual additional wage
costs incurred by Contractor and actual additional travel accommodation and subsistence charges directly arising from such Variation Order. Contractor shall, in accordance with Clause 13.3(ii), have presented Company with a detailed calculation that
will be the budgetary cost basis of the applicable Variation Order. 

  

	 	13.7.	Implementation of Variation Order. Contractor shall not commence implementation of a variation with respect to the Specifications (other than in the instance of an
emergency as determined in Contractor’s reasonable discretion to be notified immediately to Company in writing) until it has received a Variation Order signed by Company Representative in respect of such variation to the Specifications.

  

 47 

	 	13.8.	Written Authorization. Contractor shall not invoice and Company will not be obliged to pay any compensation in respect of any variation which has not been authorized
by Company by means of a written Variation Order signed by Company. 

  

	 	13.9.	Alteration and Installation of Additional Equipment. Company shall, prior to the Delivery Date, have the right to issue proposals for alterations to or installation of
additional equipment on the FPSO, with the consent of Contractor which consent shall not be unreasonably withheld. Contractor may be invited by Company to tender for such alteration or installation work and if Contractor is awarded such work,
Contractor and Company will enter into a separate written agreement to cover such alteration or installation. If such work is awarded to a Third Party, such work shall be performed in strict compliance with Contractor’s safety standards and
shall be integrated into the systems onboard the FPSO in a manner reasonably requested by Contractor. If an alteration or installation of equipment on the FPSO increases the costs or time of Contractor’s performance of the Services, Contractor
shall have the right to issue a Variation proposal under this Article 13 and the Parties shall endeavor to mutually agree upon a Variation Order or amendment of this Agreement to cover such increased costs. 

  

	 	13.10.	Company’s Right of Audit. Company shall be entitled to audit all payments for Variation Orders under which compensation is payable in accordance with Clause
13.5(ii) (expressly excluding the Fixed Fee aspect of such Variation Order) and Clause 13.5(iii). Company shall be entitled to perform such audit during and after the Term. Charterer’s right to audit will terminate two (2) years after the end
of the Term. 

  

	 	13.11.	Variation Order Procedures and Formats. Company and Contractor agree, promptly after the Contract Date, to create and institute Variation Order procedures and formats,
which will be agreed to by the Parties in writing. 

  

	14.	CONTRACTOR COMPENSATION 

  

	 	14.1.	Attachment B. Subject to the terms of this Agreement and to those of Attachment B to this Agreement, Company shall pay O&M Compensation to Contractor (as set forth
in Attachment B), in the manner provided in this Article 14, and in Article 15 and Article 16 hereof. Reimbursable Costs and Time Rates shall begin to accrue as of the Ready for Risers Date, and the Fixed Fee shall, subject to the provisions of
Clause 16.1(i)(b), begin to accrue as of the Successful Run Commencement Date. 

  

	 	14.2.	Fixed Fee Adjustment; Downtime; Shutdown. The Fixed Fee shall be subject to adjustment as follows: 

  

	 	(i)	Subject to the provisions of Part A, Section I.C.3.d of Attachment B, upon the expiration of each calendar quarter of the Term, Downtime shall be calculated in respect of each such
quarter with reference to the operation of the FPSO during such relevant quarter. Subject to the provisions of Clause 14.2(xii) below, all unused and available Annual Maintenance Allowance hours as set forth in the applicable Annual

  

 48 

 Maintenance Allowance Schedule for the contract year in which any Downtime occurs may be used by
Contractor as a credit against each quarterly Downtime calculation, provided that Contractor notifies Company in writing whenever it intends to utilize the Annual Maintenance Allowance for such purpose. Based on the result of each such quarterly
Downtime calculation, the compensation otherwise payable by Company to Contractor in respect of the Fixed Fee for each such calendar quarter shall be adjusted (up or down) by a percentage of such Fixed Fee as follows: 

																			
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 

  

	 	(ii)	Whenever a Downtime event occurs during a contract year of the Term outside of the Annual Maintenance Allowance as such Annual Maintenance Allowance is set forth in the applicable
Annual Maintenance Allowance Schedule for such contract year, Quarterly Downtime Percentage shall be calculated as the sum of the actual hours (or part thereof) recorded in each calendar quarter during which there is Downtime as follows:

  

											
	          (a)	    	Daily Downtime (hours)	  	=  	 	(Full Flow Rate – Actual Flow Rate)	  	x  24	  	 
	 	    	(hours)	  	 	 	Full Flow Rate	  	  

  
 where

  
 “Full Flow Rate” means the average of the
oil production flow rate for the most recent three (3) Days where no Downtime has been recorded 
  
 and 
  
 “Actual Flow Rate” means the actual oil production flow rate recorded during the Day on which Downtime occurred. 
  

	 	(b)	Quarterly Downtime Percentage shall equal the sum of daily Downtime (hours), calculated as per (a) above during the quarter in question divided by the total number of hours for
the quarter in question. 

  

 49 

	 	(c)	The above formula will also apply for any period of time following a Shutdown Period as the Wells are brought back on stream until Full Flow Rate has once more been achieved.

  

	 	(iii)	Any time period during which water injection or gas compression is reduced, restricted or is not possible for any reason, and such reduction, restriction or failure causes Company
(at its option) to reduce or restrict Crude Oil production, shall be counted as Downtime. 

  

	 	(iv)	[Intentionally Left Blank] 

  

	 	(v)	Without prejudice to the other provisions of this Clause 14.2, if the ability of the FPSO to offload Processed Oil shall be reduced or restricted, such inability to offload shall
not be deemed to constitute Downtime hereunder except to the extent that such inability to offload shall reduce, restrict or suspend Crude Oil production flow to the FPSO. 

  

	 	(vi)	All Downtime shall be reported by the FPSO’s operation manager in the daily production report, which shall be co-signed by each of the Master and the Company Representative
onboard the FPSO. 

  

	 	(vii)	If Company requires cessation of all or part of the Services in accordance with Clause 4.16 hereof, including those of Attachment F of this Agreement (Health, Safety and
Environmental Obligations), and such cessation causes the reduction, restriction or suspension of Crude Oil production, such cessation shall count as Downtime. 

  

	 	(viii)	If Contractor is unable to compress associated gas and is forced to flare associated gas in excess of guidelines established by Petronas and such inability causes a cessation of
production, the Shutdown provisions of this Agreement shall apply. 

  

	 	(ix)	All time required to resume Full Flow Rate after a Shutdown shall be considered Downtime and the Fixed Fee shall be reduced as set forth in the above formula.

  

	 	(x)	Pursuant to the provisions of Clause 16.9, if Shutdown occurs at any time during any contract year of the Term for a period exceeding the unused Annual Maintenance Allowance for
such contract year as set forth in the applicable Annual Maintenance Allowance Schedule for such year, plus three (3) consecutive Days, Clause 16.9 of this Agreement shall apply during such Shutdown Period. 

  

	 	(xi)	Notwithstanding anything to the contrary contained in this Clause 14.2 or elsewhere in this Agreement, if Gas Compression Testing has not been successfully completed, and the Gas
Compression Run Time achieved, on or before the last Day of the Gas Compression Testing Period, the Downtime and Shutdown provisions of this Clause 14.2 shall immediately apply. 

  

 50 

	 	(xii)	Notwithstanding any other provision of this Agreement to the contrary, any Annual Maintenance Allowance for any contract year of the Term as set forth in the Annual Maintenance
Allowance Schedule for such contract year utilized by Owner, under the Charter, or by Contractor, under this Agreement shall be deemed concurrently utilized by both Owner and Contractor, and in no event shall the Annual Maintenance Allowance exceed
the total number of hours set forth in the Annual Maintenance Allowance Schedule for such contract year. 

  

	15.	REIMBURSABLE COSTS AND TIME RATES 

  
 Company shall reimburse Contractor in accordance with Clause 16.1(i) for documented and reasonable Reimbursable Costs, and for documented and reasonable
Time Rates, in each case incurred by Contractor in accordance with the terms of this Agreement (including those of Attachment B). 
  

	16.	MANNER OF PAYMENT 

  

	 	16.1.	Procedures. O&M Compensation (including Accrued O&M Compensation), as specified in Article 14, Article 15 and this Article 16, shall be paid in the following
manner: 

  

	 	(i)	(a) For the payment of the First Accrued Reimbursables incurred by Contractor from the First Reimbursables Accrual Date and thereafter throughout the First Reimbursables
Accrual Period, Contractor shall, at the end of the month during which the Delivery Date occurs or, if the Ready for Hydrocarbons Date fails to occur within sixty (60) Days of the Fixed Fee Accrual Date, and such failure is the Sole Fault of
Company, at the end of the calendar month during which the Early Payment Commencement Date occurs, prepare and send to Company an invoice for (1) the First Accrued Reimbursables incurred by Contractor during the First Reimbursables Accrual Period,
and (2) the Reimbursables incurred by Contractor from the Delivery Date or the Early Payment Commencement Date (whichever Date occurs first), to and including the end of the month during which such Date occurs. Subject to the provisions of Clause
16.1(i)(c), for all other payments of Reimbursables to be paid by Company to Contractor for the Services to be performed each month following the month during which the Delivery Date or the Early Payment Commencement Date occurs, as applicable,
Contractor shall, at the end of each such month (in the case of the Second Accrued Reimbursables at the end of the month during which the Successful Run Completion Date occurs), prepare and send to Company an invoice for the Reimbursables incurred
by Contractor during such month. 

  
 (b) In
the event that the Ready for Hydrocarbons Date occurs within a six (6) week period of the Ready for Commissioning Date, no Fixed Fee will accrue hereunder until the Successful Run Commencement Date. In the event the 
  

 51 

 Ready for Hydrocarbons Date fails to occur within six (6) weeks of the Ready for Commissioning Date, the
Fixed Fee shall, as hereinafter provided, accrue and Company shall, subject to the provisions of Part A, Section I.C.3.d of Attachment B, be obligated to pay to Contractor the Accrued Fixed Fee pursuant to the following terms and conditions for each
Day that the Ready for Hydrocarbons Date is delayed beyond the Day immediately preceding the Fixed Fee Accrual Date. In such event, for the payment of the Accrued Fixed Fee earned by Contractor from the Fixed Fee Accrual Date and thereafter
throughout the Fixed Fee Accrual Period, Contractor shall, at the end of the calendar quarter during which the Delivery Date occurs or, if the Ready for Hydrocarbons Date fails to occur within sixty (60) Days of the Fixed Fee Accrual Date, and such
failure is the Sole Fault of Company, at the end of the calendar quarter during which the Early Payment Commencement Date occurs, send to Company an invoice prepared in accordance with the terms of this Agreement, including Attachment B, for (1) the
Accrued Fixed Fee earned by Contractor during the Fixed Fee Accrual Period (calculated by multiplying the number of Days constituting the Fixed Fee Accrual Period by the Daily Fixed Fee), and (2) the Fixed Fee, if any, earned by Contractor from the
Delivery Date or the Early Payment Commencement Date (whichever Date occurs first) to and including the end of the calendar quarter during which such Date occurs. Notwithstanding the foregoing, the Fixed Fee shall not accrue and Company shall have
no obligation to pay to Contractor any component of the Fixed Fee for the period from the Ready for Hydrocarbons Date to and including the Day immediately before the Successful Run Commencement Date. For all other payments of the Fixed Fee, if any,
to be paid by Company to Contractor for the Services to be performed each calendar quarter during the Term following the calendar quarter during which the Delivery Date or the Early Payment Commencement Date, as applicable, occurs, Contractor shall,
at the end of each such calendar quarter, prepare and send to Company an invoice for the amounts payable (or credits to the Fixed Fee due to Downtime reduction or Shutdown) by Company for such calendar quarter. 
  
 (c) On the Ready for Hydrocarbons Date, Company shall cease paying
all O&M Compensation (including Accrued O&M Compensation) and shall, instead, commence accruing the Second Accrued Reimbursables only (and not the Fixed Fee) for each Day during the Second Reimbursables Accrual Period. Company shall
thereafter only commence paying O&M Compensation and the previously accrued but unpaid Accrued O&M Compensation once more as of the Delivery Date. 
  

 52 

 (d) Following the Delivery Date, Company shall, subject to the terms of this Article 16, and
subject further to the Downtime, Shutdown and other O&M Compensation reduction, offset and other provisions of this Agreement, continue to pay O&M Compensation, including First Accrued Reimbursables (if any remain unpaid), Second Accrued
Reimbursables, and the Accrued Fixed Fee (if due Contractor hereunder and unpaid as of the Delivery Date), throughout the remainder of the Term, pursuant to the provisions of this Agreement. 
  

	 	(ii)	Subject to the provisions of Clause 16.8, Reimbursable Costs and Time Rates incurred by Contractor pursuant to the terms of this Agreement, including Attachment B, shall reflect a
breakdown of the currencies in which such Reimbursable Costs and Time Rates were paid and Company shall, if permitted by applicable law and following Contractor’s delivery of the letter from Bank Negara Malaysia as required by the terms of
Clause 3.4, repay Contractor in US dollar equivalent at the applicable exchange rate published by Malaysia Banking Berhad Kuala Lumpur, prevailing at the opening of business on the date the cost was incurred. Company shall pay only invoices
supported by evidence verifying payment by Contractor of all items listed in such invoice within thirty-five (35) days of its receipt of same. 

					
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 

  

	 	(iv)	Subject to Contractor securing all necessary approvals and furnishing documentary evidence to Company that Contractor is duly authorized by Bank Negara Malaysia in Kuala Lumpur to
accept payment in United States dollars, all payments hereunder shall be made in immediately available freely transferable currency as provided for in Clause 16.8, without discount, setoff or deduction of any kind, except as expressly permitted by
this Agreement, by inter bank transfer, free of bank charges, to such bank or financial institution as Contractor shall designate, in writing, for credit to the account of Contractor. Subject as hereinafter provided, Company shall pay
Contractor’s invoices for the Services provided hereunder (pursuant to the terms hereof) within thirty-five (35) Days of Company’s receipt of each such invoice. Company shall have the right to withhold from payments to be made to
Contractor all amounts that it in good faith disputes, provided that Company, no later than five (5) Days prior to withholding any amounts otherwise due Contractor, shall notify Contractor that it is disputing an invoice and shall give detailed
reasons for its dispute. 

  

	 	(v)	Notwithstanding any other provision of this Clause 16.1 or any other provision of this Agreement to the contrary, in no event shall the 

  

 53 

 payment provisions of this Clause 16.1 (or the payment provisions of any other Clause of this Agreement)
require or obligate Company to pay to Contractor duplicate payments of First or Second Accrued Reimbursables, Accrued Fixed Fee, Reimbursables, Fixed Fee or any other amounts otherwise due Contractor by Company hereunder. 
  

	 	16.2.	Commencement and Cessation of O&M Compensation. O&M Compensation shall accrue and become payable in accordance with Clause 16.1, and O&M Compensation shall
cease to be payable as of the Redelivery Date or upon the termination of this Agreement, as applicable except for O & M Compensation incurred or earned prior to such termination date or Redelivery Date that remains to be invoiced/paid. Any
O&M Compensation paid in advance by Company representing compensation for a period beyond the Redelivery Date or date of termination shall be refunded by Contractor within thirty (30) days after the Redelivery Date or date of termination, as
applicable. 

  

	 	16.3.	Failure to Pay. Without prejudice to Contractor’s rights under Clause 24.3, if Company fails to make payment of any undisputed amount owing within thirty-five
(35) days of Company’s receipt of an uncontested invoice, then: 

  

	 	(i)	all money due to Contractor shall accrue interest, at the Agreed Interest Rate, from the due date of payment to the date of receipt by Contractor; and 

  

	 	(ii)	Contractor may at its absolute discretion suspend all or any part of the Services until payment has been made if such non-payment continues for thirty (30) continuous Days following
written notice from Contractor to Company that payment of such undisputed amount is overdue. No right of suspension will arise in respect of non-payment or delayed payment of an amount to the extent that payment of the amount concerned is subject to
a dispute. If Company fails to pay any such undisputed amount within such thirty (30) Day period following receipt of Contractor’s notice as aforesaid, Contractor may again give Company thirty (30) Days written notice to pay such undisputed
amount. If Company still fails to pay same within such thirty (30) Day period, Contractor shall thereafter have the right to terminate this Agreement pursuant to the provisions of Clause 24.3(i), and pursue any remedies to which it is entitled under
applicable law or this Agreement. 

  

	 	16.4.	No Payment Delays. Payment by Company shall not prejudice its rights in the future to dispute any part of any invoice including any invoice previously paid. In the
instance of dispute over any part of an invoice, Company shall not delay payment of the undisputed part of the invoice. 

  

	 	16.5.	Invoice Disputes. Any unresolved dispute concerning an amount contained within an invoice shall be resolved between the Parties as set out in Article 37. Following
resolution of the dispute or issuance of an arbitration award, any amount agreed or found to be payable by one Party to the other Party shall be paid within ten (10) Days after the date of such resolution or award (unless such award otherwise
provides), together with interest thereon at the Agreed 

  

 54 

 Interest Rate calculated for the period between the final date of payment and the date the amount was
initially due for payment; provided, however, if any delay is the justifiable result of the Party concerned failing to provide material information, interest will be payable from thirty (30) Days following receipt of such information. 
  

	 	16.6.	Contractor’s Invoices. All invoices submitted by Contractor shall: 

  

	 	(i)	refer to this Agreement and if applicable, Company’s purchase order number (which Company will furnish to Contractor); 

  

	 	(ii)	be submitted with sufficient documentation to support such invoices and permit verification by Company; and 

  

	 	(iii)	be submitted to and received by Company for the purposes of this Agreement at the address designated by Company in writing. 

  

	 	16.7.	Change in Payment Instructions. Should Contractor wish to change any bank or other financial institution to which payment is to be made, at least thirty (30) Days
prior written notice shall be given to Company of the new bank or financial institution and account details where such payment is to be made. 

  

	 	16.8.	Payment Currency. The O&M Compensation and all other payments due under this Agreement are stated in United States dollars and in the event that Contractor is not
authorized to accept United States dollars, or for any reason Contractor cannot for any period of time receive any such payment in United States dollars (by Government intervention or law, rule or regulation or otherwise), then payment shall be made
in Malaysia Ringgits. For the purpose of converting US dollars to enable payment to be made in Malaysia Ringgit, the rate of exchange to be used shall be the average of the selling and buying rates of Telegraphic Transfer published in the opening of
business rate sheet by Malayan Banking Berhad Kuala Lumpur on the due date for payment or the date the cost incurred in the case of Reimbursable Costs. If such Day falls on a Day where the rate is not available, the rate quoted immediately before
such Day shall be used. During any Secondary Term, the exchange rate shall be the Malaysian Ringgit amount equal to the selling rate in Malaysia of the U.S. Dollar, as published in said business rate sheet on the due date, discounted by the lesser
of (a) the average of the difference between the buying and selling rates at the date of exchange, or (b) the average of the difference between the buying and selling rates on December 1, 2004 as reported by Bank Negara. 

  

	 	16.9.	Excess Shutdown. Unless otherwise specifically agreed by Company in any Variation Order with Contractor, if during any contract year of the Term Shutdown occurs, and
the Shutdown Period continues for a period exceeding three (3) consecutive Days and such Shutdown does not fall within the unused and available Annual Maintenance Allowance set forth in the applicable Annual Maintenance Allowance Schedule for such
contract year, or is not due 

  

 55 

 to any drydocking agreed in writing by Company, Company shall continue to pay to Contractor an amount
equal to 

			
	 	 	of the Reimbursables (due Contractor hereunder), but the Fixed Fee due Contractor hereunder

 shall be reduced pursuant to the provisions of Clause 14.2 for any such excessive Shutdown
Period. Furthermore, the period of time commencing when Contractor recommences Crude Oil processing operations at the FPSO Site after a Shutdown until the time when Full Flow Rates are resumed shall be deemed Downtime and handled in the manner set
forth in Clause 14.2(ix) of this Agreement. 
  

	 	16.10.	Adjustments. All adjustments or deductions due to Downtime, Shutdown or other causes as provided for in Clause 14.2 or elsewhere in this Agreement or Attachment B,
shall be charged or credited by Contractor to Company on the invoice for the first calendar month which occurs following the calendar quarter in which the Downtime or Shutdown occurred. All such invoices shall state, in reasonable detail, the cause
and duration of all such Downtime or Shutdown. Company may offset against any Fixed Fee due, (i) , any disputed amounts arising under this Article 16 (provided Company complies with the five (5) Day notice provision set forth in Clause 16.1(iv)),
(ii) any Downtime, Shutdown or Force Majeure deductions under this Agreement and (iii) other reductions in O&M Compensation due or other amounts due from Contractor to Company under this Agreement and not paid by Contractor to Company within
thirty (30) Days of their due date, unless such amounts due are already reflected as a discount on Contractor’s invoices. 

  

	 	16.11.	No Obligation. Notwithstanding any other provision hereof to the contrary, in no event shall Contractor be entitled to invoice Company, nor to receive from Company,
any component of O&M Compensation (including Accrued O&M Compensation), and Company shall have no obligation or requirement to pay for any such component of O&M Compensation for the performance of the Services required of Contractor,
which Services are performed by Owner pursuant to the terms of the Charter, and for which Owner receives compensation thereunder for the performance of such Services pursuant to the terms of the Charter. 

  

	17.	AUDIT 

  

	 	17.1.	Audit Rights. Contractor shall, and shall cause its Subcontractors and Affiliates (and the Subcontractors of such Affiliates) to, in connection with the
performance of the Services, maintain books and records in accordance with generally accepted accounting principles of the appropriate jurisdiction applied on a consistent basis and shall retain such books and records for a period of not less than
two (2) years following the expiration or termination of this Agreement. Company and its duly authorized representatives shall have access at all reasonable times to the books and records maintained by Contractor and its Affiliates, and the
Subcontractors of both, relating to any reimbursable Services performed under this Agreement (including all books and records in any manner relating to Reimbursable Costs and Time Rates, including all Demobilization Costs, Bonus and Assessment
calculations, and Variation Orders if performed under a cost plus basis, if paid by Company to Contractor pursuant to the terms hereof), plus all books and records relating in 

  

 56 

	 	    	any manner to taxes, duties, fees and similar charges paid or reimbursed by Company on Contractor’s behalf), and shall have the right to audit such books and records at any
reasonable time or times during the Term, and during such two (2) year period for the purpose of determining the correctness of the charges made to Company and of compliance with this Agreement. For the purposes of audit, Company shall have the
right to examine, in Contractor’s offices, during business hours and for a reasonable length of time, books, records, accounts, correspondence, instructions, specifications, plans, drawings, receipts and memoranda insofar as they are pertinent
to these audit rights or for verifying invoices in relation thereto and shall be entitled to copies (free of charge) of all such data, documentation and supporting information. Contractor shall reconcile its books and records in accordance with the
results of any such audit, and Company or Contractor, as the case may be, shall promptly pay any adjustments necessary to give effect to such reconciliation. 

  

	 	17.2.	Survival of Audit. This Article shall survive expiration or termination of this Agreement for a period of two (2) years.. 

  

	18.	LIENS 

  

	 	18.1.	No Liens. Except for Permitted Encumbrances and Company’s lien for any unperformed Contractor obligations, subject to the Lender’s rights in the QEL
referenced in Clause 4.9 of the Charter, neither Company nor Contractor shall have the right, power or authority to create, incur, or permit to be imposed upon the FPSO any Encumbrance whatsoever. 

  

	 	18.2.	Payments. Contractor shall pay promptly all justified Claims or justified demands for labor, materials, supplies, facilities, tools and equipment arising or occurring
from any of Contractor Group’s acts or omissions under this Agreement or otherwise and shall promptly remove immediately any lien, Encumbrance, arrest or detention or charge on the FPSO arising as a result of Contractor’s failure to so
pay. Company may at its option discharge any such lien, charge, Encumbrance or Claim for which Contractor is liable under this Article, and provided that such costs or expenses are not recoverable as Reimbursable Costs, recover any costs and
expenses thereby incurred from any monies due or which may become due to Contractor under this Agreement or in the event that no further monies become due, recover the same as a debt from Contractor. Company undertakes to give Contractor reasonable
opportunity to discharge any such lien, charge, encumbrance or Claim before Company exercises its rights under this Clause. 

  

	 	18.3.	Liens Arising by Operation of Law. Certain liens or Encumbrances may attach to the FPSO from time to time by operation of law. If any action is taken to enforce any
Encumbrance on the FPSO, Contractor shall immediately notify Company thereof and take such steps as are necessary to prevent any such action from adversely affecting Company’s rights under this Agreement. In the event that, without the prior
written consent of Company, Contractor grants or suffers to exist an Encumbrance to attach to the FPSO and Contractor fails to remove such lien or Encumbrance within the time period set forth in Clause 24.2(xiii), then in addition to any other
rights Company 

  

 57 

 may have under this Agreement, Company may terminate this Agreement pursuant to the provisions of Clause
24.2(xiii), provided the termination conditions in such Clause are met whereupon Contractor shall immediately reimburse Company for any sums paid to Contractor and not earned and any other sums to which Company is entitled under this Agreement.

  

	 	18.4.	Contractor Discharge of Encumbrances. Contractor shall promptly discharge any lien or Encumbrance, other than Permitted Encumbrances, arising by operation of law
by, through, or under Contractor Group and that attaches to the FPSO and shall save, defend, protect, indemnify, and hold harmless Company Group from any Claims, liabilities, losses, or damages suffered or incurred by Company Group in
relation to such liens or Encumbrances. 

  

	19.	HEALTH, SAFETY AND ENVIRONMENTAL OBLIGATIONS 

  

	 	19.1.	Contractor Representations and Warranties. By accepting and agreeing to perform the Services under this Agreement, Contractor represents that it is fully capable of
performing the Services in compliance with and shall in all respects comply with the provisions of Attachment F to this Agreement and all applicable Malaysian and other relevant international, regional, national and local safety, health and
environmental laws and regulations and good maritime operating practice and procedures as well as international accepted standards binding upon the FPSO or Contractor and any protocols, agreements, rules, codes or standards relevant to performance
of the Services. 

  

	 	19.2.	Safe Work Environment. Contractor is responsible for providing and maintaining a safe and healthy work environment at the FPSO, for Contractor Group Personnel, Company
Group Personnel and all Third Parties. All such people at the FPSO are required to comply with Contractor’s efforts to provide and maintain a safe and healthy work environment. 

  

	 	19.3.	Contractor’s Safety Program. Company is responsible for coordinating the work of Company Group Personnel with Contractor and advising such Persons that they must
comply with Contractor’s safety program while at the FPSO. 

  

	 	19.4.	Helicopters/Marine Traffic. The Master may, during the Term, regulate the landing and taking off of helicopters and handling of launches and small boats
employed by Company whilst alongside the FPSO and may defer offloading if he sees fit, in each case for safety purposes. 

  

	 	19.5.	HS&E Regulations and Procedures. Contractor shall provide (if it has not previously done so pursuant to an existing operating and maintenance agreement with
Company) to Company a copy of Contractor’s written Health, Safety and Environmental (“HS&E”) general regulations and procedures which shall comply with all relevant laws of Malaysia and all applicable international conventions.
Company shall review these HS&E general regulations and procedures and the Parties shall mutually agree in writing on a set of HS&E general regulations and procedures (“HS&E General 

  

 58 

 Regulations and Procedures”) that comply with the laws of Malaysia and Attachment F
to this Agreement and are not in conflict with the rules and regulations promulgated by the country of the FPSO’s flag and registry, that will govern the FPSO, all Persons onboard and the performance and provision of the Services.
Notwithstanding the foregoing, Contractor agrees to conduct operations in compliance with the following standards and in the event of conflicts between the following requirements, the strictest criteria shall apply: the International Safety
Management (ISM) Code for Safe Operation of Ships and Pollution Prevention, effective July 1, 1998 and all subsequent amendments (and Contractor shall at all times be in possession of a valid Safety Management Certificate thereunder), the
International Convention for the Prevention of Oil Pollution from Ships, 1973, as amended by the Protocol of 1978 relating thereto (MARPOL 73/78) including all amendments in force and/or expected to be in force during the Term; International
Convention for the Safety of Life at Sea 1974, as modified by the Protocol of 1978, (SOLAS) and the Company provided Environmental Management Plan for the Field included in Attachment D to this Agreement. 
  

	 	19.6.	FPSO Terminal Operations Manual. Contractor shall abide by the FPSO Terminal Operations Manual agreed to in writing by Contractor and Company under this Agreement
which shall apply to and govern the offloading of tankers at the FPSO (to be referred to herein as the “FPSO Terminal Operations Manual”). 

  

	 	19.7.	Contractor Compliance. Contractor shall comply with Contractor’s written HS&E regulations and procedures in accordance with Attachment F to this
Agreement (approved in writing by Company under this Agreement). 

  

	20.	TAXES 

  

	 	20.1.	Taxes and Duties. 

  

	 	(i)	This Agreement has been entered into on the Contract Date under the current tax laws and regulations of Malaysia, including, but not limited to, turnover and services taxes, taxes
on or deductible from payments, consumption taxes, business taxes and customs duties, the Malaysian Income Tax Act 1967, as amended, and taxes on gains or net income. 

  

	 	(ii)	Subject to the provisions of Clause 20.1(iii) and Clause 20.2 of this Agreement, Company shall be authorized to withhold taxes from the payments made under this Agreement in
accordance with the laws, regulations and/or directives in force in Malaysia and all other appropriate jurisdictions from time to time. 

  

	 	(iii)	O&M Compensation and other payments described in this Agreement made by Company to Contractor are exclusive of any Malaysia services tax chargeable in Malaysia as of the Ready
for Risers Date. Company shall following the receipt of evidence satisfactory to Company of Contractor’s payment of Malaysia services tax, paid in accordance with applicable law, reimburse Contractor, pursuant to the provisions of Article 16,
for the documented cost of such Malaysia 

  

 59 

 services tax incurred by Contractor or its Subcontractors in connection with the performance of the
Services (which reimbursement shall not include any service charge or mark up or any interest, fine or penalty associated in any way with Contractor’s failure to make timely payment of such service tax). 
  

	 	(iv)	The O & M Compensation and other payments described in this Agreement further exclude: (a) taxes and related charges on services and supplies forming part of the Reimbursable
Costs, and (b) subject to Clause 20.4(iii), all Malaysian customs duties for which Company is responsible in accordance with Clause 4.17. Company shall, following the receipt of evidence satisfactory to Company of Contractor’s payment of such
taxes, duties, and related expenses, reimburse Contractor, pursuant to the provisions of Article 15, for the documented cost of such expenditures incurred by Contractor in connection with the performance of the Services. 

  

	 	20.2.	Statutory Exemptions. If Contractor claims to be exempted from any statutory withholding tax or deduction, it shall inform Company in writing and promptly provide any
necessary documentation to support such exemptions, including a certificate of exemption or preferential tax treatment from the relevant taxing authority. 

  

									
	 	 	 	 	 	 	 	 	 
	20.3.	 	 Company’s Tax Indemnity.
	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

  

									
	 	 	 	 	 	 	 	 	 
	20.4.	 	 Contractor’s Tax Indemnities.
	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

  

	 	(i)	all sales, excise, storage, value added, consumption and use taxes, licenses, permit and registration fees, income, profit, excess profit, franchise, and personal property taxes;

  

	 	(ii)	all employment taxes and contributions imposed or that may be imposed by law, trade union contracts, or regulations with respect to or measured by the compensation (wages, salaries
or other) paid to employees of Contractor including, without limitation, taxes and contribution for unemployment and compensation insurance, old age benefits, welfare funds, pensions and annuities, and disability insurance and similar items; and

  

 60 

	 	(iii)	in the event Contractor fails or refuses to comply with Company’s reasonable and lawful instructions in accordance with Clause 4.17, all customs duties applicable on the import
into and export from Malaysia of Contractor Property, Contractor’s goods, equipment and materials, including any such items imported in Company’s name and which are on the prevailing “Master List of Materials and Equipment for
Upstream Petroleum Operations Exempted from Customs Duties and Sales Taxes” (referred to below as the “Master Exemption List”). 

  

	 	20.4.1	Nothing in Clause 20.4 shall limit or affect Contractor’s entitlement to receive approved Reimbursable Costs or Time Rates under this Agreement. 

  

	 	20.5.	Certain Malaysian Tax and Customs Duties Requirements. In relation to the importation of Contractor’s equipment and materials into Malaysia:

  

	 	(i)	Any goods, equipment or materials imported overland into Malaysia for performance of the Services shall be delivered under bond to the Company’s Supply Base.

  

	 	(ii)	If Contractor’s goods, equipment or materials which fall within the Master Exemption List are to be imported in the name of Company by a route other than via the Supply Base,
Contractor shall be required to move such equipment under bond to the Company’s Supply Base. Contractor shall obtain Company’s prior written approval and shall provide sufficient notice to Company for customs clearance.

  

	 	(iii)	Importation of such goods, equipment and materials shall be made in the name of Contractor if Contractor has a warehouse at the Company’s Supply Base; otherwise, such imports
shall be made in the name of Company. 

  

	 	(iv)	If any Contractor’s goods, equipment or materials which are not listed on the Master Exemption List will not be consumed in the performance of the Services, but will be
utilized for a period of less than six (6) months, Contractor shall import such goods, equipment or materials on the basis of temporary import for re-export; and Company shall, if requested, provide reasonable assistance to enable Contractor to
obtain such exemption, at Contractor’s expense. 

  

	 	(v)	Contractor shall be responsible for the preparation of all documents required by governmental authorities in connection with the import and export of Contractor’s goods,
equipment and materials to and from Malaysia. Company agrees to use reasonable efforts to assist Contractor with respect to the documents and approvals required by Contractor under this sub-clause (v). 

  

 61 

	 	(vi)	Contractor shall be responsible for its goods, equipment and materials imported into Malaysia while such items are in Contractor’s custody. Contractor shall save,
indemnify, defend, protect and hold harmless Company Group from and against any Claims, demands and causes of action which may arise as a result of damage to, shortages, or overages in inventory of such equipment. 

 

	 	(vii)	Upon termination of this Agreement, Contractor shall, subject to the provisions of Article 8, take immediate steps to remove such equipment from Malaysia (unless such goods,
equipment or materials have been used, lawfully abandoned or consumed in the performance of the Services or lawfully transferred to Company). Unless Company agrees otherwise in writing, Contractor shall comply with all reasonable and lawful
directions and procedures as required by Company to cause such equipment to be removed as aforesaid as expeditiously as possible. 

  

	 	(viii)	If any of Contractor’s goods, equipment or materials listed in the Master Exemption List and imported in Company’s name into Malaysia are to be sold, transferred, disposed
of or otherwise dealt with prior to their removal from Malaysia, Contractor shall give prior notice to Company of its intention, and such action shall only be taken after prior written consent from Company. Company shall attempt to obtain the
necessary approvals from the relevant governmental authorities for such action. 

											
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

  

											
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

  

 62 

	 	(a)	all sales, excise, storage, consumption and use taxes, licenses, permit and registration fees, income, profit, excess profit, franchise, and personal property taxes imposed or
may be imposed on Company; 

  

	 	(b)	all employment taxes and contributions imposed or that may be imposed by law, trade union contracts, or regulations with respect to or measured by the compensation (wages,
salaries or other) paid to employees of Company including, without limitation, taxes and contribution for unemployment and compensation insurance, old age benefits, welfare funds, pensions and annuities, and disability insurance and similar items;
and 

  

	 	(c)	all customs duties which apply in Malaysia to the import into or export from Malaysia of Company Property and, subject to the requirements of Clause 4.17, all customs duties
which apply in Malaysia to the import into or export from Malaysia of Contractor Property utilized exclusively in connection with the performance of the Services. 

											
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

  

	 	(xii)	Each Party shall give prompt notice to the other of all matters pertaining to non-payment, payment under protest, claims of immunity, or exemption from any taxes or duties, to the
extent that such action or omission could impact on the tax position of the other Party. 

  

	 	20.6.	Tax Savings. Contractor agrees that any and all savings, exemptions or incentives obtained by Contractor with respect to income or corporate taxes or duties, imposts
or other taxes of any kind (including, but not limited to, those set forth in Clause 20.1(i)) from or with respect to any applicable taxing jurisdiction or authority as a result of Owner’s, the Contractor’s, the Company’s and/or any
co-venturer’s structuring (whether or not involving Subcontractors and/or Contractor) of the ownership, chartering or operation of the FPSO or the performance of the Services, shall be refunded to Company to the extent Contractor has been
compensated by Company for such amounts. 

  

 63 

	21.	CONFLICTS OF INTEREST 

  

	 	21.1.	Commissions/Fees. No member of Contractor Group shall pay any commissions or fees or grant any rebates or other remuneration or gratuity to any member of Company
Group. No member of Contractor Group shall grant any secret rebates, one to the other, nor pay any commissions or fees to the employees or officers of the other. 

  

	 	21.2.	Corrupt Payments. By accepting this Agreement and agreeing to perform the Services, Contractor warrants that neither it nor any member of Contractor Group has made,
will make, or will permit to be made, with respect to the Services or other matters provided for under this Agreement, any offer, payment, promise to pay or authorization of the payment of any money, or any offer or gift, or give or promise to give
or authorize the giving of anything of value, directly or indirectly, to or for the use or benefit of any official or employee of the Government or to or for the use or benefit of any Malaysian or other Government political party, official,
governmental department, agency or instrumentality thereof or any Government controlled entity or candidate for the purpose of: (i) influencing an official act or decision of that Person; (ii) inducing that Person to do or omit to do any act in
violation of his, her or its lawful duty; or (iii) inducing that Person to use his, her or its influence within the Government to affect any Government decision or secure any improper advantage. Contractor further warrants that neither it nor any
member of Contractor Group has made or will make any such offer, payment, gift, promise or authorization to or for the use or benefit of any other Person if Contractor or any member of Contractor Group knows, has a firm belief, or is aware that
there is a high probability that the other Person would use such offer, payment, gift, promise or authorization for any of the purposes described in the preceding sentence. The foregoing warranties do not apply to any facilitating or expediting
payment to secure the performance of routine Government action. Routine Government action, for purposes of this Clause shall not include, among other things, Government action regarding the terms, award, amendment, or continuation of this Agreement.
Contractor shall respond promptly, and in reasonable detail, to any notice from Company or its auditors pertaining to the above stated warranty and representation and shall furnish documentary support for such response upon request from Company.

  

	 	21.3.	Claims. Contractor shall and hereby agrees to save, indemnify, defend, protect and hold harmless Company Group from and against all Claims in connection with
the warranties and agreements contained in this Article. 

  

	22.	TITLE TO THE FPSO 

  
 The Parties acknowledge that Owner shall own and retain full legal title to the FPSO and Contractor shall have no beneficial interest in the FPSO.
Accordingly, nothing herein contained shall be construed as creating a demise of the FPSO to Contractor. 
  

	23.	PARTY REPRESENTATIVES AND PERSONNEL 

  

	 	23.1.	Contractor Representative. Contractor shall nominate by notice to Company in writing one of its Personnel as Contractor Representative for the

  

 64 

 purpose of overseeing the performance of the obligations of Contractor under this Agreement and who
shall have full authority to resolve all day-to-day matters that arise between Company and Contractor. Company shall have the right to approve nominations for Contractor Representative before any such appointment is made by Contractor. Contractor
shall not reassign Key Personnel under this Agreement without written consent of Company; which consent shall not be unreasonably withheld provided however, Company shall have the continuing right to make reasonable requests that Contractor remove
or substitute any or all Personnel whose conduct or performance justifies removal or substitution, and on such request, Contractor shall make the requested substitutions at a time in line with normal crew change activities, unless safety
considerations require earlier substitution. All costs of any such removal or substitution additional to costs that otherwise would have been incurred shall be paid by Contractor and shall not be considered a Reimbursable Cost or Time Rate for
purposes hereof. Contractor shall at all times be responsible for and shall maintain strict discipline and good order among its personnel and among its Subcontractors personnel. 
  

	 	23.2.	Company Representative. Company shall nominate by notice to Contractor in writing one of its Personnel as Company Representative for the purpose of monitoring the
performance of Contractor’s obligations under this Agreement and who shall have the full authority to resolve all day-to-day matters that arise between Company and Contractor. Company Representative shall at all times have access to the FPSO
and Contractor Group’s offices and may inspect the Services or examine the records kept on the FPSO by Contractor Group. After the Delivery Date, Company’s “Field Superintendent” will be Company
Representative and shall give all instructions of Company’s desired results for the operation of the FPSO; provided, the Contractor Representative of the FPSO shall maintain control of the FPSO at all times in order to provide these desired
results in a safe and secure manner and in accordance with this Agreement. 

  

	24.	TERMINATION 

  

	 	24.1.	Termination by Company. 

  
 Without prejudice to Company’s other termination rights set forth in this Agreement: 
  

	 	(i)	Before the Delivery Date. Company may terminate this Agreement at any time prior to the Delivery Date by giving Contractor no less than ninety (90) Days prior written
notice of termination, provided that the Charter is also terminated under its terms at the same time. 

  

	 	(ii)	After the Delivery Date and provided that the Charter is also terminated under its terms at the same time, Company may, by written notice to Contractor, terminate this
Agreement at any time after the Delivery Date and before the expiration of the Primary Term or any Secondary Term; provided, if this Agreement is in the Primary Term, Company shall give Contractor at least six (6) months prior written notice and if
this Agreement is in a Secondary Term, Company shall 

  

 65 

 give Contractor at least three (3) months prior notice. If either of such events occurs, the termination
date of this Agreement shall be the Day six (6) months (if in the Primary Term) or three (3) months (if in the Secondary Term), as the case may be, after the Day on which Contractor receives Company’s notice of termination. 

											
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

  

	 	24.2.	Other Company Termination Rights. If: 

  

	 	(i)	Contractor is in breach of any of its material obligations under this Agreement and fails to resolve such breach to Company’s satisfaction pursuant to the procedures and within
the time limits set forth in Clause 24.5; 

  

	 	(ii)	Contractor suspends payment of its debts or is unable to pay its debts as they become due, a petition is filed or an order is made or entered (and is not stayed within thirty (30)
Days of service thereof) or a resolution is passed or an involuntary petition is filed or threatened to be filed for the winding up, receivership, bankruptcy or reorganization of Contractor, or Contractor makes an assignment for benefit of all or
substantially all of its creditors, or a receiver or administrator is appointed to all or substantially all of its assets; 

  

	 	(iii)	Unless otherwise mutually agreed in writing by the Parties, Shutdown occurs and continues for a period of ninety (90) consecutive Days at any time during the Term, plus any unused
hours of Annual Maintenance Allowance, as such hours are reflected on the Annual Maintenance Allowance Schedule (unused by Owner or Contractor) for the contract year or contract years in which such ninety (90) consecutive Days of Shutdown occurs;

  

 66 

	 	(iv)	Subject to the provisions of Clause 24.1(iii) regarding the Option purchase right of Charterer, the Charter terminates for any reason, this Agreement shall also terminate, provided
that in connection with any termination under this subclause (iv), Company shall be required to pay to Contractor Demobilization Costs if such termination of the Charter is for reasons which under the provisions of the Charter would require
Charterer to pay Demobilization Costs (provided that Company shall never be required to make duplicate payments of such amounts); 

  

	 	(v)	Contractor makes any assignment prohibited by Clause 25.3 of this Agreement; 

  

	 	(vi)	Insurance required of Contractor under this Agreement is not obtained, properly maintained or lapses (provided, however, that, in the case of any insurance renewal, if Contractor
demonstrates to Company’s reasonable satisfaction prior to any such renewal that insurance coverages in any specified amount or for any specified risk listed in Article 28 is not available in the marketplace or from Owner’s P&I Club at
the time of any renewal, and Company and Contractor agree in writing to alternative amounts or coverages prior to any such renewal, then Contractor shall not be in breach under this Clause 24.2(vi), as long as no agreed insurance lapses or ceases to
be in effect at any time); 

  

	 	(vii)	The legal status of Contractor terminates; 

  

	 	(viii)	Any representation or warranty of Contractor under this Agreement: 

  

	 	(a)	shall prove to be untrue, false or materially misleading when made or for the time covered; and 

  

	 	(b)	as a consequence shall materially and adversely affect Company’s rights or benefits under this Agreement; and 

  

	 	(c)	which Contractor has failed to remedy to Company’s satisfaction within thirty (30) Days after written notice from Company; 

  

	 	(ix)	The Contractor Guarantor: 

  

	 	(a)	suspends payment of its all or substantially all of debts or is generally unable to pay its debts in the ordinary course of its business; 

  

	 	(b)	passes a resolution, commences proceedings or has proceedings commenced against it (which are not stayed within twenty-one (21) Days of service thereof on the Contractor Guarantor)
in the nature of bankruptcy or reorganization resulting from 

  

 67 

 insolvency or for its liquidation or for the appointment of a receiver, trustee in bankruptcy or
liquidator of its undertaking or assets; or 
  

	 	(c)	enters into any composition or scheme or arrangement with its creditors; 

  

	 	(x)	The Contractor Guarantee ceases to be in full force and effect before the expiry of its agreed term (as agreed in writing by Company) (unless, within ten (10) Business Days
thereafter, a replacement Contractor Guarantee, by an entity and a form satisfactory to Company, is executed and delivered to Company in substitution for the original Contractor Guarantee); 

  

	 	(xi)	[Intentionally Left Blank]; 

  

	 	(xii)	[Intentionally Left Blank]; 

  

	 	(xiii)	Contractor permits or suffers to exist any Encumbrance or other consensual or non-consensual security interest in respect of the FPSO (other than a Permitted Encumbrance), and such
encumbrance or other security interest interferes with Company’s operations at the FPSO Site or its other operations in the Kikeh Field and such Encumbrance or other security interest has not been removed by Contractor within forty (40) Days
after written notice requesting its removal has been given by Company to Contractor; or 

  
 then and in such event: 
  
 Company, in addition to any other rights it may have under this Agreement, shall have the right to immediately terminate this Agreement on demand by
giving Contractor fourteen (14) Days written notice at which time this Agreement shall terminate without further obligation on either Party except, for the Company’s accrued obligations hereunder incurred up to the termination date, including
but not limited to O&M Compensation which has been earned but not paid (whether or not invoiced). Subject to any offset under this Agreement, Company shall, as of such termination date, be relieved of all further obligations under this
Agreement. 
  

	 	24.3.	Contractor Termination Rights. If: 

  

	 	(i)	Company shall, for any reason, fail to make a payment due under this Agreement (other than disputed amounts) and such default continues after receipt by Company of Contractor’s
ultimate written demand for payment given pursuant to the provisions of Clause 16.3(ii); 

  

	 	(ii)	Company is in breach of any other of its material obligations under this Agreement, and, such failure or breach continues for a period of thirty (30) Days after written notice has
been received by Company and such breach or failure has not been remedied by Company within such thirty (30) Day period; 

  
  

 68 

	 	(iii)	Company generally suspends payments of its debts or is unable to pay its debts as they become due, a petition is filed or an order is made or entered (and not stayed within thirty
(30) Days of Service) or an involuntary petition or an order is made or a resolution is passed for the winding up or bankruptcy of Company, or Company makes an assignment for benefit of creditors, or a receiver or administrator is appointed to its
assets; or 

  

	 	(iv)	(a) Company Guarantor suffers or initiates any of the events outlined in Clause 24.2(ix) above with respect to Company Guarantor or its operations, or (b) the Company Guarantee
ceases to be in full force and effect and is not replaced with a Company Guarantee satisfactory to Owner within the time period set forth in Clause 24.2(x); 

  
 then and in such event: 
  
 Contractor may, at its option, terminate this Agreement (a) in the case of Clause 24.3(i), upon seven (7) Days, (b) in the case of Clause 24.3(ii) or
(iii), upon sixty (60) Days, and (c) in the case of Clause 24.3(iv), upon fourteen (14) Days prior written notice to Company. If this Agreement is terminated as aforesaid, Company shall remain liable to Contractor for all amounts owing, earned and
unpaid under Article 16 (whether or not invoiced) less any credits or offset under Article 16 for all Services performed until the date of termination plus Contractors’ Demobilization Costs. 
  

	 	24.4.	Article 32 Termination. Contractor’s duties and Services under this Agreement may also be terminated by Company in accordance with the provisions of Clause 32.3,
and by Contractor in accordance with the provisions of Clause 32.4. 

  

	 	24.5.	Contractor’s Material Breach - Procedures. In the event of Contractor’s material breach under Clause 24.2(i) above, Company shall notify Contractor in
writing to cure such breach. Contractor shall then use Best Efforts to cure the breach within thirty (30) Days after it receives such written notice from Company. If it fails to either (i) cure such breach, or (ii) demonstrate to Company’s
reasonable satisfaction, by delivering a detailed written proposal to Company, that it will be able to cure such breach within a reasonable period of time, Company may terminate this Agreement by giving Contractor a further fifteen (15) Days written
notice, upon the expiration of which notice, this Agreement shall terminate 

  

	 	24.6.	Termination Procedures. In addition to the other provisions of this Agreement which apply to Redelivery on termination of the Charter, or Contractor’s duties and
Services under this Agreement, the following shall be applicable: 

  

	 	(i)	Contractor shall conduct Redelivery of the FPSO, to Company or to Owner, as instructed by Company in writing, as soon as possible in accordance with Company’s instructions, and
the terms of this Agreement. Redelivery shall be subject to the provisions of Article 3 hereof and those of Article 8. 

  
  

 69 

	 	(ii)	The FPSO’s logbooks shall, following the termination of this Agreement, remain onboard the FPSO. Company shall, following termination of this Agreement, have the right to make
a photostatic copy of the logbooks covering the Term and the period prior thereto. 

  

	 	24.7.	Redelivery of FPSO. Contractor shall return the FPSO to the Owner, or as otherwise specified by Company, to Company, if Company has exercised the Option and Closing
has occurred, as soon as possible and in accordance with Company’s instructions upon termination of the Charter and, subject to the provisions of Clause 24.1(iii), Contractor’s duties and Services under this Agreement. Termination of this
Agreement by either Contractor or Company shall be without prejudice to the Parties’ rights under this Agreement accrued up to the termination date, including Contractor’s right to receive O&M Compensation payable under this Agreement
pursuant to its terms less any credits or offsets under Article 16 for the Services performed until the date of termination. 

  

	 	24.8.	Demobilization Costs. On termination of this Agreement, unless it is a termination by Company pursuant to the provisions of Clause 5.7(ii)(a) (for reasons in Clause
5.7(i)(a) or Clause 5.7(i)(c), or Clause 24.2 (except for the requirements of Clause 24.2(iv)) or Article 29 or Article 30, Company shall pay to Contractor the Demobilization Costs (as permitted by Attachment B) which are associated directly with
Contractor’s performance of the Services required to demobilize the FPSO. Demobilization shall be deemed to have occurred whenever the FPSO proceeds or is transported to an anchorage, berth or lay-up site for any period of time, standby or
lay-up. 

  

	25.	ASSIGNMENT AND SUBCONTRACTING 

  

	 	25.1.	Company Assignment. Company may not assign its rights and obligations under this Agreement to any other Person except: 

  

	 	(i)	to an Affiliate of Company (in respect of which, at the time of the assignment, there is no intention or expectation that it will cease to be an Affiliate); or

  

	 	(ii)	to any party other than an Affiliate of Company with the prior written consent of Contractor, which shall not be unreasonably withheld or unduly delayed. 

 
 Any assignment referred to in this Clause 25.1 shall be subject to the
further condition that the Charter shall have been similarly assigned and that the assignee shall perform all the obligations of Company under this Agreement from the effective date of the assignment. Further, Company shall provide and keep in
effect the Company Guarantee or shall cause equivalent security to be furnished with respect to the assignee’s obligations hereunder. 
  
 Notwithstanding any provision to the contrary contained in this Agreement, no prior consent shall be required in the event of a corporate merger or
consolidation or sale of stock or other conveyance where the principal effect of such transaction is the change of control or corporate merger or 
  

 70 

 consolidation of the ultimate owner of either Party with or into another Person provided that the
resulting entity is of the same or better credit rating than Company, as determined by Standard and Poor’s Rating Services or by Moody’s Investor’s Services immediately after such merger or consolidation and such entity agrees to
obtain and provide a guarantee in substantially similar format to that provided by Company. 
  

	 	25.2.	No Release of Prior Liability. Except with respect to an assignment to an Affiliate, with effect from the effective date of an assignment pursuant to Clause 25.1,
Company shall be relieved from directly performing its obligations under this Agreement but no such assignment shall relieve Company from any liability of Company prior to the effective date of such assignment or any liability of Company Guarantor
under the Company Guarantee. 

  

	 	25.3.	Assignment to Affiliate of Contractor. Except as otherwise provided below, Contractor shall have no right to assign any or all of its rights, obligation, duties or
Services under this Agreement to any other Person; except that (i) Contractor may assign all of its rights and obligations hereunder to an Affiliate if the provisions of Clause 4.11 continue to be satisfied pursuant to its terms and the requirements
of Clause 25.4 are satisfied in full. Any such assignment shall not relieve Contractor of its obligations hereunder except as may be otherwise provided in the Novation Agreement. Contractor shall be expressly entitled to assign all or part of its
O&M Compensation and/or insurance proceeds under this Agreement to Owner’s lenders. Contractor shall have the right to subcontract its obligations in respect of parts of the Services and its obligations to reputable Subcontractors, and
Contractor shall periodically provide to Company a current list of all Subcontractors. Any such assignment or subcontract shall not: 

  

	 	(i)	relieve Contractor or Contractor Guarantor of any of the obligations or liabilities under this Agreement; 

  

	 	(ii)	remove Contractor’s responsibility for the acts or omissions of any assignee or Subcontractor or other members of Contractor Group; nor 

  

	 	(iii)	require Company to pay any compensation whatsoever other than that payable in accordance with this Agreement. 

  

	 	25.4.	Novation Agreement. 

  

	 	(i)	In the event Contractor elects to assign all of its rights and obligations under this Agreement to an Affiliate, Company, Contractor and such Contractor Affiliate shall enter into a
Novation Agreement (the form of which is appended hereto as Attachment I), which Novation Agreement shall, with respect to this Agreement and the Services to be assigned, set forth the parties rights and obligations thereunder with respect to such
assignment but Contractor shall, if a substitute or equivalent guarantee acceptable in writing to Company is not provided by Contractor under the Novation Agreement, guarantee performance by any permitted assignee of all of Contractor’s
obligations under this Agreement, which obligations shall continue to be supported by the Contractor Guarantee which shall remain in full force and effect. 

  

 71 

	 	(ii)	If any of the Services and this Agreement have been novated to an Affiliate in connection with a transfer as permitted hereby: 

  

	 	(a)	Contractor shall procure that no material right of the Company under any contract or subcontract for the Services or the O&M FPSO Work is waived; and

  

	 	(b)	unless this Agreement has been terminated, Contractor shall procure that no contracts or subcontracts for the Services or O&M FPSO Work are, by reason of such novation,
terminated. 

  

	 	25.5.	Company’s Right to Review Subcontracts. Without prejudice to the provisions of Attachment B hereto, prior to execution of a subcontract, Contractor shall,
following the Contract Date, submit for Company’s review, comment and prior written approval such subcontract, in its final unredacted form, that Contractor proposes to enter into for the performance of any aspect of the Services.

  

	 	25.6.	Breach of Agreement by Contractor or Subcontractor. No subcontract or breach or default of or by any Subcontractor or other member of Contractor Group shall relieve
Contractor from any obligation under this Agreement, and Contractor shall be responsible for any act, neglect, or omission of any Subcontractor or other member of Contractor Group as though such act, neglect, or omission were that of Contractor
under the provisions of this Agreement. 

  

	26.	PATENT INDEMNIFICATION 

  

	 	26.1.	Contractor’s Indemnification Obligations. Contractor shall save, indemnify, defend, protect and hold harmless Company Group from any Claims suffered or
incurred by Company Group based on a claim that the FPSO, or any design or technology with respect thereto, or any item of equipment or part thereof furnished hereunder by Contractor Group (including all Contractor Property) or their use by Company
infringes any intellectual property rights or patents of any Third Party. Company shall notify Contractor promptly in writing for the defense of same. Contractor shall pay all damages and costs awarded therein against Company and in addition
shall reimburse Company for its legal costs and expenses incurred in connection with such claim. In case the FPSO, or any design or technology with respect thereto, or any item of equipment or any part thereof or their use by Company is held in such
suit to constitute infringement or if Company is restrained by any court order from keeping or using the same, Contractor shall, at its own expense, either procure for Company the right to continue using the FPSO or said design, technology or
equipment in the same manner as before, or replace the same with non-infringing components or equipment, or modify it so it becomes non-infringing, in both cases without diminishing the efficiency or effectiveness of the FPSO or other equipment.

  

 72 

											
	 	 	 	 	 	 	 	 	 	 	 
	26.2.	 	 Company’s Indemnification Obligations.    
	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

  

	 	26.3.	Intellectual Property Ownership and License. All intellectual property made discovered or developed solely by Contractor prior to, in course of, or by reason of, the
performance of the Services for Company required by the terms of this Agreement shall be and remain the property and copyright of Contractor and is to be considered to be confidential information of Contractor (to which Article 35 will apply).
Contractor shall grant and does hereby grant to Company and the Co-Venturers a worldwide, non-assignable, non-exclusive, royalty free, irrevocable and perpetual license to use such intellectual property for any of its operations under this
Agreement. 

  

	 	26.4.	Improper Use. Notwithstanding the foregoing, neither Contractor nor Company shall have any liability to the other for any indemnification and hold harmless provisions
hereunder with respect to any infringement claim based on use of the product or equipment in question either (i) with other equipment, products or software not within the Specifications; or (ii) in any manner inconsistent with the terms of this
Agreement. . 

  

	27.	INDEMNITIES AND LIABILITIES 

  
 Under this Agreement, the indemnities and hold harmless provisions set forth in the Clauses of this Article 27 set out below shall apply to and bind
the Parties. 
  

	 	27.1.	Indemnification. 

											
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

											
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

  

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	 	27.14.	Indemnities Covered by Insurance. 

  
 Each Party agrees that it has and during the Term will maintain, and will cause each Subcontractor, to have and maintain adequate insurance to cover all
of its indemnity obligations under this Agreement and all other contracts and agreements executed or contemplated in connection herewith. 
  

	 	27.15.	No Reimbursement. In no event shall any cost or expense of any member of the Contractor Group incurred in connection with any aspect of the Article 27 regarding
Contractor’s indemnification obligations to Company, qualify for reimbursement hereunder as a Reimbursable Cost, a Time Rate, or any component of the Fixed Fee unless such cost or expense, reasonably construed, would qualify as a Reimbursable
Cost in accordance with the principles set forth in Attachment B, Part A, Section B.  

  

	 	27.16.	Survival of Indemnification. This Article 27 shall survive termination of this Agreement. 

  

	28.	INSURANCE 

  

	 	28.1.	General. 

  
 Without limiting any of its obligations and responsibilities under this Agreement, including without limitation Article 27, with effect from the Contract
Date (unless otherwise specifically provided in this Article 28), Contractor shall obtain and maintain, or cause to be obtained and maintained, in full force and effect, insurance with a financially sound and reputable insurance company or companies
and a protection and indemnity club acceptable to Company on terms and conditions and with policy limits that are customary for owners and operators of an FPSO in similar circumstances and as provided hereafter, and shall comply with all
requirements of the national, local and/or other governmental authority(ies) and/or appropriate and/or regulatory authority(ies) where the FPSO Work and the other Services are to be performed and the FPSO Site is located. All such insurance shall be
primary and noncontributory and shall be exclusive of any existing valid and collectible insurance carried by Company Group for those risks and liabilities expressly assumed by Contractor under this Agreement. Reasonable deductibles are acceptable
and shall be for the account of the responsible Party in accordance with this Agreement unless otherwise provided in the Charter. Contractor shall be entitled to assign all or any of its rights under the insurances to be obtained and maintained by
Contractor, by way of security, to Owner or Contractor’s lenders. 
  

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	 	28.2.	Policy Provisions with Respect to all Policies and Coverages. 

  

	 	(i)	30-Day Notice Provisions. All of the policies required to be obtained by Contractor shall contain thirty (30) Day notice provisions for material change or cancellation
to be provided to Company by insurers (or, if insurers will not provide direct notice, such notice will be provided to Company by Contractor), except in respect of war and terrorism coverage where customary notice of cancellation provisions shall
apply, and such policies shall have adequate territorial and navigation limits for the location of the FPSO Work and the other Services, including, without limitation, off-shore operations at the FPSO Site. 

  

	 	(ii)	Certificates of Insurance. Within twenty (20) days of the Contract Date, Contractor shall furnish to Company certificates of insurance coverage for the insurance the
Contractor is obligated to provide under this Article 28 (except for those insurances Contractor is not required to obtain until a later date pursuant to the terms of this Article 28 which shall be provided by Contractor at such times), signed by an
authorized representative of the broker or insurers evidencing the coverages, limits, endorsements and extensions required under this Agreement. Commencement or performance of FPSO O&M Work or Services without delivering such certificate of
insurance shall not constitute a waiver of Contractor’s obligation to provide the required insurance. Company shall have the right to withhold payment of Contractor’s invoices for any payments under this Agreement until receipt of such
certificates. Renewal certificates shall be obtained by Contractor as and when necessary and forwarded to Company as soon as they are available, but in any event within fourteen (14) Days prior to each renewal date. Contractor shall furnish the
Company from time to time on request, and in any event at least annually, with copies of all insurance policies, cover notes and other documents evidencing the creation and renewal of the insurance required under this Agreement.

  

	 	(iii)	Contractor’s or Subcontractor’s Insurance. Contractor shall ensure that any Subcontractor engaged by Owner or Contractor procures and maintains insurance
consistent with but not overlapping with the insurance provided in this Article 28 (having regard to the nature of the work performed by Contractor or any such Subcontractor), together with such other insurance as may be required by law. Any
deficiencies in the coverage or limits of their Subcontractors’ insurance and any and all deductibles shall be the sole responsibility of Contractor. 

  

	 	(iv)	Minimum Requirements. The limits specified in Clauses 28.3 and 28.4 are minimum requirements and shall not be construed as being a limitation of either liability or
indemnity or as constituting acceptance by Company of responsibility for financial or other liabilities or indemnities in excess of such limits 

  

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	 	(v)	Charterer’s Rights on Owner’s Failure to Provide Insurance. If Contractor fails or refuses to obtain any insurance required under this Article 28 or to
provide Company with written evidence of insurance when required, Company shall have the right but not the obligation, to procure this insurance at Contractor’s expense (to the extent of additional insurance costs thereby arising), and any
amounts paid by Company for this purpose shall immediately become due and payable by Contractor to Company. 

  

	 	(vi)	Notice of Claims. Contractor shall notify Company immediately upon receipt of any notice of claims, incidents or demands or of any situation which may give rise to
such claims or demands being made under the insurance required under this Article 28. Written notice shall be given as soon as possible and not later than five (5) calendar Days after the Contractor becomes aware of the occurrence of any accident.
For serious accidents (including but not limited to death or serious injuries) notice shall be given immediately after the Contractor becomes aware of the occurrence of any such accident and shall be confirmed in writing by Contractor.

  

	 	(vii)	Assistance by Each Party. Each Party shall give to the other all reasonable assistance that may be required for the preparation and negotiation of insurance claims.

  

	 	(viii)	Prevention of Loss or Damage. Contractor shall at all times take all necessary precautions to prevent loss or damage to the work performed in connection with the
O&M FPSO Work, the other Services, the FPSO, or any part thereof, the Additional Equipment and other Company Property and Contractor shall not do anything or permit any of its Subcontractors and Contractor and Contractor Group to do anything
whether on or off the FPSO Site which would or might render void or voidable any policy of insurance required under this Article 28. 

  

	 	28.3.	Insurances and Coverages 

  

	 	(i)	Intentionally Left Blank 

  

	 	(ii)	Intentionally Left Blank 

  

	 	(iii)	Required Coverages After Delivery Date. After the Delivery Date, all relevant insurance required of Contractor (and, where applicable, its Subcontractors and
Contractor and its Subcontractors) under this Agreement shall also be endorsed to include the following: 

									
	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	 	  	 

  

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	 	(iv)	Additional Insured/Joint Entrant Provisions. All insurance required of Contractor and its Subcontractors under this Agreement shall also contain endorsements that
insurers will have no rights of recovery or subrogation against Company in respect of claims which are the responsibility of Contractor under this Agreement. In addition, after the Delivery Date, with respect to Company interest in such insurance,
Company shall be named as an additional insured and shall be entered as a joint entrant with respect to all protection and indemnity club coverage. Other than in respect of pollution after the Delivery Date, Company shall not be entitled to assert a
claim against Contractor’s P&I Club insurance and other insurances with respect to liabilities and losses assumed by Company or as to which Company indemnifies Contractor under Article 27. 

  

	 	(v)	Marine Hull and Machinery Coverage. Contractor shall obtain and maintain Marine Hull and Machinery Insurance on the FPSO (and Additional Equipment) and on all other
vessels and marine craft (whether navigable or not) and equipment, including but not limited to hull and machinery owned, leased, chartered or hired by Contractor, for no less than the replacement value of such vessels and marine craft insurance
providing coverage against losses or damage by such perils and risks on “new for old” conditions, including war, strikes and confiscation cover. Such Marine Hull and Machinery Insurance coverage on the FPSO and Additional Equipment shall
commence on and from the Contract Date.  

  

	 	(vi)	P&I Coverage. 

  
 From the Delivery Date. On and after the Delivery Date, Protection and Indemnity Insurance for the FPSO (including Additional Equipment) and all
other Contractor owned, non-owned or hired waterborne craft/vessels including but not limited to crew (including Company’s Personnel on board which have been approved by insurers, unless Company is named as a joint entrant), Third Party
liability, 
  

 83 

					
	 pollution, wreck, collision, tower’s liability, anchor handling liability and contractual liability arising from or
in

	 connection with the FPSO O&M Work and other Services under this Agreement to the standard scope and
limits

	 of P&I cover and in the case of the FPSO cover for an FPSO entry up to 
	 	 	 	amount per                

 occurrence, (such amount is referred to as “Pollution Limit”).
Contractor’s right to limit pollution liability by statute, convention, law or regulation shall be as set forth in Clause 27.5(i). 
  

	 	(vii)	General Liability and Umbrella Coverage. 

  

	 	(a)	From Delivery Date. General Liability/ Excess Liability on a per accident basis against claims for Third Party property damage (including loss of use arising therefrom) and
personal injury (including bodily injury or death) relating to the FPSO, and as may be required and to the levels required by statute or 

					
	 similar regulation in countries where any such Services are to be performed, shall be obtained by

	 Contractor, subject always to a combined single limit of 
	 	 	 	for each accident with respect

 to Third Party bodily injury and/or property damage (except to the extent this is satisfied
by the Protection and Indemnity Insurance in which case this limit does not apply) Such General Liability/ Excess Liability coverage shall cover Company (to the extent of Owner and Contractor’s responsibility under the Charter and this
Agreement), Owner, Contractor, and Owner and Contractor’s relevant Affiliates. 
  

	 	(b)	Additional General Liability Coverages. Such insurance in sub-clauses (a) of this Clause 28.3(vii) shall include coverage for: contractual liability; broad form property
damage; independent contractors; products liability and completed operations liability; severability of interest; in rem; and personal injury; shall be subject to watercraft exclusion, provided that watercraft are not excluded under
Contractor’s P&I coverage. 

  

	 	28.4.	Other Required Insurance Provisions, Limits and Coverages 

  
 All insurance required of Contractor under this Agreement shall include the following with limits not less than and coverage not inferior to those
specified below, all acceptable to Company: 
  

	 	(i)	Workers’ Compensation/Employer’s Liability. Workers’ Compensation and Employer’s Liability Insurance (including but not limited to maritime
liability coverage) or similar statutory social insurance as required by applicable law at the FPSO Site and all other sites where the Services will be performed or P & I coverage (in respect of employer’s liabilities to crew) providing
coverage for all Contractor’s employees and agents engaged in accomplishing the Services. Contractor shall ensure that its Subcontractors maintain 

  

 84 

 insurance for such purpose in respect of their employees. Such insurance shall be endorsed so that
claims formulated by Owner Group’s Personnel against Charterer are treated as claims against Contractor and covered by such insurance. Such insurance may, with respect to, the FPSO crew be substituted by cover under Protection and Indemnity
Insurance. All such insurance shall be endorsed so that claims by Contractor Group’s Personnel against Company are treated as claims against Contractor and covered by Contractor’s insurance. 
  

	 	(ii)	Automobile Coverage. At all times during the Term, Automobile Liability Insurance covering all owned, hired, leased, rented and non-owned automobiles and automotive
equipment, used by Contractor Group in connection with the execution of the Services, as may be required and to the levels required by statute or similar regulation in countries where such Services are to be performed. 

  

	 	(iii)	Removal of Debris Coverage. From and after the Delivery Date, there shall be included under the Protection 

			
	 and Indemnity Insurance or the Marine Hull and Machinery Insurance or other insurance, a separate limit of

	 	 	 of voluntary removal of debris coverage, which shall apply if Company reasonably determines

 that the wreck or debris from the FPSO interferes with Company’s current or expected
operations or wreck or debris from the FPSO subjects Company to potential liability or damage. 
  

	 	(iv)	Other Insurance. Any other insurance which may be required by applicable law. 

  

	 	28.5.	Insurance Proceeds. 

  
 Subject always to any lender’s rights to receive assigned insurance proceeds in accordance with Clause 28.1, in the event of an actual or
constructive total loss of the FPSO, Contractor shall pay to Company all insurance amounts due and owing to Company, if any, under this Agreement within fifteen (15) days after Contractor receives payment from insurers (under its coverage described
in this Article 28) as a result of the risks referred to in this Article, if its insurers make such payment. 
  

	 	28.6.	No Duplication 

  
 In the event Owner obtains and/or maintains on Contractor’s behalf, any insurance Contractor is otherwise required to obtain and maintain pursuant
to the terms of this Article 28, and the premiums Owner pays to obtain and/or maintain such insurance are recovered by Owner under the terms of the Charter as an Insurance Reimbursable or Pre-Payments (as said terms are defined in the Charter), the
costs of such insurance and the premiums paid therefor shall not be recoverable by Contractor as a Reimbursable Cost under this Agreement. 
  

 85 

	 	28.7.	No Reimbursement 

  
 O&M Compensation due Contractor hereunder shall expressly exclude all costs and expenses (in their entirety) incurred by Contractor or by Owner, on
Contractor’s behalf, in connection with obtaining and maintaining the FPSO Insurance Cover (required by the terms of this Article 28) from the Contract Date through the Day preceding the Delivery Date. From and after the Delivery Date and
thereafter throughout the Term, the costs of Contractor’s procurement and maintenance of the FPSO Insurance Cover shall, subject to the terms of Article 15, be recoverable as a Reimbursable Cost pursuant to the terms of Attachment B.

  

	29.	REQUISITION OR SEIZURE 

  

	 	29.1.	Government Action. In the event that the FPSO or title to the FPSO should be requisitioned for use or seized by the Government or any governmental authority on
any basis (or the FPSO should be seized by any Person or governmental authority under circumstances which are equivalent to requisition of use or title), Company shall continue to pay full O&M Compensation for a period not exceeding sixty (60)
Days after such requisition or seizure. If such requisition or seizure continues for a period longer than sixty (60) Days, all O&M Compensation and other payments due under this Agreement shall cease as of the sixty-first (61st) Day (except for any O&M Compensation due Contractor under this Agreement which has accrued but remains unpaid) and this
Agreement shall terminate at such time without any notice from Company to Contractor and without payment of any Demobilization Costs by Company. 

  

	 	29.2.	Indemnification. 

  

											
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

											
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

  

 86 

											
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

  

	30.	ACTUAL OR CONSTRUCTIVE TOTAL LOSS 

  

	 	30.1.	Total Loss Termination. In the event of actual or constructive total loss of the FPSO occurring for any reason whatsoever at any time during the Term, this Agreement
shall be deemed terminated as of such loss, but Company shall continue to pay full O&M Compensation if any is due under this Agreement for a period of sixty (60) Days after the date of said loss (or if the time of such loss is uncertain, then
such loss shall be deemed to have occurred on the date the FPSO was last heard from). On the sixty-first (61st) Day
after such loss, all O&M Compensation and other compensation due under this Agreement shall cease without any notice from Company to Contractor. After such loss, Contractor shall file and use Best Efforts to pursue all insurance claims it might
have pursuant to any insurances it has on the FPSO. Should Contractor receive any insurance proceeds for the loss of the FPSO, Contractor shall promptly reimburse Company the amount of all O&M Compensation and other payments made by Company to
Contractor after the date of such loss. Any amounts owing by Contractor to Company under this Clause 30.1 shall constitute a debt of Contractor to Company until same is paid in full. In the case of any termination under this Clause 30.1, the
Demobilization Costs shall not be payable. No other payments shall be due from Company other than accrued but unpaid O&M Compensation to the date of such loss. 

  

	 	30.2.	Removal of Wreck and/or Debris. In the event that prior to the Delivery Date, during the Term or following termination of this Agreement, the FPSO suffers an actual,
total or partial loss or becomes a total or constructive total loss (as defined in the terms and provisions of the insurance policies covering the FPSO) or the FPSO is damaged, Contractor shall remove or shall cause its Subcontractor to remove the
FPSO wreck and/or debris if, and to the extent that, it is required to do so by applicable laws. 

  

	 	30.3.	Mitigation of Company’s Exposure. Contractor shall use Best Efforts to mitigate the exposure of Company in the event of a constructive total or partial loss of,
or in the event of damage to, the FPSO or the Additional Equipment under this Article. Contractor shall reimburse to Company all amounts owing to Company under this Agreement, if any, in the event of such loss within fifteen (15) Days after
Contractor receives payment from underwriters (under its insurance coverage described in Article 28 of this Agreement) of any such amount collected in connection with the Services and the constructive or total loss of the FPSO.

  

	31.	RISK ZONE 

  

	 	31.1.	 Dangerous Location. The FPSO shall not be required to continue to or remain in any place (including the Field or FPSO Site if applicable) nor be used
for any service which will cause the FPSO to be within an area which is dangerous or hazardous to the FPSO, Master or crew on board the FPSO as reasonably determined by Contractor or the Master (“Risk Zone”), due to any

  

 87 

	 	 
actual or threatened act of war, hostilities, warlike operations, acts of piracy or of hostility or malicious damage against the FPSO or its cargo by any
Person whatsoever, revolution, civil war or civil commotion. 

  

	 	31.2.	Increase in Costs. If the FPSO is in, or brought in or ordered within a Risk Zone (even though the FPSO may already be at the Operating Area), and if the wages of the
Master and/or officers and/or crew and/or the cost of provisions and/or stores for deck and/or engine room or other costs to provide the Services (including the cost of the FPSO Insurance Cover to be provided by Contractor pursuant to the
requirements of Article 28), are increased by reason of or during the FPSO’s presence in a Risk Zone, Contractor shall notify Company of any such increase, and such increased amount, , will be added to O&M Compensation and paid by Company
on production of Contractor’s invoice (and proper documentation) in accordance with Article 16. This Agreement shall terminate if the Charter is terminated in accordance with Clause 35.2 thereunder. 

  

	 	31.3.	Risk Zone Payments. Notwithstanding the provisions hereof concerning Downtime and Shutdown contained elsewhere in this Agreement, the O & M compensation shall
continue to be payable during the FPSO’s presence in the Risk Zone and any transportation to a safe location until termination of this Agreement. 

  

	32.	FORCE MAJEURE 

  

	 	32.1.	Force Majeure. Subject to the provisions of Clause 32.2, neither Party shall be liable for any failure to perform any of its obligations under this Agreement (except
for Company’s obligation to pay O&M Compensation as set forth in Clause 32.2 below, and any other payments owed Contractor by Company under this Agreement, and, in the case of Company, any payments or other amounts owed or to be credited by
Contractor to Company), or for any delay in performing any such obligations to the extent that such failure arises due to an event of Force. To the extent that a Party is delayed in performing or unable to perform its obligations under this
Agreement due to an event of Force Majeure, such inability shall not be deemed a breach of this Agreement; provided, however, such Force Majeure shall not relieve that Party of liability in the event of its failure to use due diligence to remedy the
situation and remove the Force Majeure in an adequate manner and with all reasonable dispatch, nor shall such event of Force Majeure relieve a Party of liability unless it gives written notice of the full particulars of the same to the other Party
as soon as reasonably possible after the occurrence relied on, and like notice shall be given upon termination of such Force Majeure conditions. Both Parties shall use their Best Efforts to reduce unnecessary costs associated with any event of Force
Majeure. 

  

	 	32.2.	 O&M Compensation During Force Majeure. Notwithstanding any other provisions to the contrary contained in this Agreement, during any event of Force
Majeure occurring after the Ready for Risers Date and thereafter during the Term, O&M Compensation (less all Rate Savings realized by Contractor) shall continue to accrue and, following the Delivery Date or Early Payment 

  

 88 

	 	 
Commencement Date, the components of such O&M Compensation shall be paid to Contractor for the periods set forth below: 

  

	 	(i)	For the first thirty (30) consecutive Days of Force Majeure, Contractor shall receive from Company, one hundred percent of the O&M Compensation due Contractor hereunder
(including the Fixed Fee due for such period); 

  

	 	(ii)	From and after the thirty-first (31st)
consecutive Day of Force Majeure through the one hundred eightieth consecutive Day of Force Majeure, Contractor shall receive from Company, one hundred percent (100%) of Reimbursable Costs and Time Rates, and ninety percent (90%) of the Fixed Fee
due Contractor hereunder; 

  

									
	(iii)	 	From and after the one hundred eighty-first (181st) consecutive Day of Force Majeure, Contractor shall receive
	 	 	from Company 	 	 	 	of Reimbursable Costs and Time Rates, and 	 	 

 of the Fixed Fee due Contractor hereunder; and 
  

	 	(iv)	For all periods of Force Majeure under this Agreement, Contractor shall not be entitled to any Bonus, nor be liable for any Assessment, in each case calculated with respect to the
Fixed Fee as set forth in Attachment B. 

  
 If any
Force Majeure occurs during the period when any reduced Fixed Fee is in effect under the terms of this Agreement (other than this Clause 32.2), the percentages payable as above shall be deemed to be expressed as a percentage of such reduced Fixed
Fee. Contractor shall reimburse to Company such amounts paid by Company to Contractor under this Clause 32.2 within thirty (30) Days after Contractor receives payment from underwriters with respect to such amounts (under the insurance coverage
described in Article 28), if underwriters make such payment. Contractor agrees that for any Force Majeure period it will file and use Best Efforts to obtain insurance recoveries from its underwriters or club for all insured losses due to such Force
Majeure event. 
  

	 	32.3.	Force Majeure Termination Rights. If any condition of Force Majeure continues for a period of ninety (90), or more, consecutive Days Company shall have the right to
terminate this Agreement at any time after such ninetieth (90th) Day by providing Contractor with thirty (30) Days advance notice of such election to terminate. A termination of this Agreement under the provisions of this Clause 32.3 shall be
subject to payment by Company to Contractor of the Demobilization Costs. 

  

	 	32.4.	Contractor’s Force Majeure Termination Right. If any condition of Force Majeure continues for a period of two hundred and forty (240), consecutive Days, or more,
and Company has not terminated this Agreement hereunder, 

 Contractor may request in writing that the percentage of Fixed Fee
payable to Contractor be increased from its then 

									
	 current reduced rate of 
	 	 	 	(pursuant to Clause 32.2 above) to 	 	 	 	with effect from the two hundred

 and forty first (241st) Day of such Force Majeure event onwards. Company 
  

 89 

 shall reply in writing within seven (7) Days after receipt of such notice from Contractor either
accepting or rejecting such request. In the event Company rejects such request or fails to respond to such request within seven (7) Days after receipt of this request, Contractor may terminate this Agreement upon providing ten (10) Days’ prior
written notice of 

					
	termination to Company, and Company shall be required to pay Contractor the Demobilization Costs on termination as
	set forth in Clause 32.3. In the event Company accepts Contractor’s request, Company shall pay Contractor 	 	 	 	 

 of the Fixed Fee from the two hundred and forty first (241st) Day of such Force Majeure
onwards until the Force Majeure event ceases; provided, however, that Contractor may at any time after three hundred (300) consecutive Days of such Force Majeure elect to terminate this Agreement by notice to the Company, and shall be entitled to be
paid the Demobilization Costs. 
  

	33.	HOST COUNTRY REQUIREMENTS 

  

	 	33.1.	Citizens of Malaysia. In addition to the terms, conditions and obligations contained within this Agreement (inclusive of the Attachments), the following shall apply:

  

	 	(i)	Contractor shall and shall cause Contractor Group to make all reasonable efforts to employ and train citizens of Malaysia in connection with the Services. Contractor may employ
citizens, lawful permanent residents or other lawful temporary residents, if in the opinion of Company and not contested by the appropriate ministry, no Malaysian citizens can be found with sufficient skill and technical qualifications. Contractor
shall promptly provide to Company upon Company’s written request details on the personnel employed and their residence when employed. 

  

	 	(ii)	In the performance of the Services, Contractor shall and shall cause Contractor Group to give preference to goods and services that are produced in Malaysia or rendered by the
citizens or lawful permanent residents or other lawful temporary residents of Malaysia, provided such goods and services are offered at equally advantageous conditions with regard to quality, price and immediate availability in quantities and to the
specifications required. 

  

	 	(iii)	Contractor shall and shall cause Contractor Group to make positive efforts to maintain good relations with the public and the Government authorities of Malaysia during the whole
course of performance of Services under this Agreement. 

  

	 	(iv)	In the procurement of facilities, supplies, and services required for the Services, Contractor shall use its Best Efforts to observe the following: 

  

	 	(a)	the enhancement of effective local (especially Bumiputra) participation in the Services and O&M FPSO Work; 

  

 90 

	 	(b)	the transfer of technology to local (especially Bumiputra) firms and companies with the objective of developing local technical and managerial capabilities; and

  

	 	(c)	the need to minimize outflow of foreign exchange. 

  

	 	(v)	In pursuance of the provisions of subclause (iv) above, Contractor shall, unless otherwise approved in writing by Company, use Best Efforts to comply with the following:

  

	 	(a)	give priority to locally-manufactured goods in the procurement of facilities, goods, materials, supplies, and services; 

  

	 	(b)	give priority to Malaysian suppliers or manufacturers for facilities, goods, materials, and supplies; and 

  

	 	(c)	give priority to services and research facilities, professional or otherwise, which are rendered by Malaysians or firms or companies incorporated or licensed in Malaysia,

  
 in all cases provided that such goods or
services are competitive in terms of price, quality, availability, terms and conditions of supply or service, and reliability. 
  

	34.	NOTICES 

  
 All notices by either Party to the other Party shall be in writing and shall be by personal delivery, registered letter or by facsimile. 
  
 If such notice is to Contractor, it shall be addressed to: 
  
 Malaysia International Shipping Corporation Berhad

 Level 28, Melara Dayabumi, 
 Jalan Sultan Hishamuddin, 

									
	 	 	 50050 Kuala Lumpur
	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

  
 with
a copy to: 

									
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

  
 If such notice is to
Company, it shall be addressed to: 
  
 Murphy
Sabah Oil Co., Ltd.  
 Level 26, Tower 2, Petronas Twin Towers 
 Kuala Lumpur City Centre, 50088 

									
	 	 	 Kuala Lumpur, Malaysia
	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

  

 91 

 Any notices provided for herein shall be deemed to have been given or delivered, unless otherwise
expressly provided herein, at the time of receipt when delivered in person or by courier at the specified address of the other Party, as shown by personal messenger’s or courier’s delivery or tracking receipt. Time of receipt in this
context shall be construed to be the following normal Business Day as at the location of the recipient if received after normal working hours in such location. Notices sent by registered letter shall be deemed delivered on the third (3rd) Business Day after the registered letter’s post mark. Notices sent by facsimile shall be deemed received at the time of
receipt in a legible form if sent by facsimile addressed to the recipient at the facsimile number at which it is to receive facsimiles. Time of receipt in this context shall be construed to be the following normal Business Day at the location of the
recipient if received after normal business hours in such location. Either Party may change its address or facsimile number for receiving notices by giving not less than fourteen (14) Days prior notice in writing to the other Party of such change.

  

	35.	CONFIDENTIAL INFORMATION AND DATA 

  

	 	35.1.	Confidential Information and Data. Contractor acknowledges that all commercial and technical information and data and any other information and data reasonably
understood to be of a confidential nature (whether written, verbal or in electronic form) obtained by Contractor Group, or disclosed to Contractor Group in the performance of the Services or otherwise under this Agreement from Company or Company
Group and/or the Government is confidential information. Contractor warrants that Contractor Group shall hold such confidential information strictly confidential and shall not disclose such confidential information to anyone without the prior
written consent of Company. Moreover, Contractor warrants that Contractor Group shall not in any manner use such confidential information in a manner injurious to Company or detrimental to the achievement of Company’s objectives. Subject to
Clause 26.3, all data, logs, charts, drawings, tracings, documents, calculations, computer printouts and items of a similar nature, produced or developed from Company confidential information in connection with this Agreement shall be Company’s
property, and shall be furnished to Company at any time at Company’s request and not later than Redelivery of the FPSO; and Company shall thereafter have the unrestricted right to use such items. The above confidentiality obligation shall not
apply to confidential information that is provided or disclosed by Contractor to: 

  

	 	(i)	an Affiliate, provided such Affiliate agrees in writing to be bound by the provisions of this Article; 

  

	 	(ii)	the extent such confidential information is required to be furnished in compliance with any applicable laws, or pursuant to any legal proceedings or because of any order of any
court or arbitration tribunal binding upon Contractor (but with prior notice to Company); 

  

	 	(iii)	outside professional consultants or contractors of Contractor provided that they agree in writing to keep the confidential information confidential and agree not to disclose the
same or use it for any purpose other than that for which it was disclosed; 

  

 92 

	 	(iv)	a bank or other financial institution to the extent appropriate to Contractor’s financing arrangements provided that such bank or financial institution agrees in writing to
keep the confidential information confidential and agrees in writing not to disclose the same or use it for any purpose other than that for which it was disclosed; 

  

	 	(v)	the extent confidential information must be disclosed pursuant to any rules or requirements of any government or stock exchange having jurisdiction over Contractor, or its
Affiliates; or 

  

	 	(vi)	extent that any data or information which, through no fault of Contractor becomes a part of the public domain. 

  

	 	35.2.	Reciprocal Provisions. Company agrees to similarly hold and keep confidential all information and data owned by Contractor and Contractor Group pursuant to Clause
26.3. The rights and obligations of Contractor set out in Clause 35.1 with respect to all Company confidential information shall likewise be deemed to apply to Company with respect to Contractor confidential information as if incorporated,
mutatis mutandis, in this Clause 35.2 for the benefit of Contractor Group. 

  

	 	35.3.	Press Releases; Announcements. Contractor shall ensure that no member of Contractor Group makes any press release or public announcement or publishes any information
relating to the Services or this Agreement without the prior written authorization from Company; provided, however, Contractor shall not be prohibited from making any press release or public announcement if necessary to comply with the applicable
laws, rules or requirements of any government or stock exchange having jurisdiction over Contractor or its Affiliates. 

  

	 	35.4.	Confidentiality Provisions Survival. This Article shall survive termination of this Agreement for any cause. 

  

	36.	ENGLISH LANGUAGE AND INTERPRETATION 

  

	 	36.1.	Communications. The English language shall be used throughout in communications, reports, correspondence and other documentation as transmitted between the Parties.

  

	 	36.2.	Headings. The topical headings used in this Agreement are for convenience only and shall not be construed as having any substantive significance or as indicating that
all of the provisions of this Agreement relating to any topic are to be found in any particular Article. 

  

	 	36.3.	Singular/Plural. Reference to the singular includes a reference to the plural and vice versa. 

  

	 	36.4.	Gender. Reference to any gender includes a reference to all other genders. 

  

 93 

	37.	APPLICABLE LAW AND ARBITRATION 

  

	 	37.1.	Governing Law. This Agreement and all Attachments hereto shall be governed, construed and interpreted exclusively by the laws of Malaysia applying the general
principles of international law, excluding any choice of law or conflicts of law rules that would require the application of the laws (other than the general principles of international law) of another jurisdiction. 

  

	 	37.2.	Dispute Resolution. 

  

	 	(i)	Subject to Clause 37.3, any dispute, controversy or Claim arising out of or in relation to or in connection with this Agreement and all Attachments, including without limitation any
dispute as to the construction, validity, interpretation, enforceability, performance, expiry, termination or breach of this Agreement whether based on contract, tort or equity, shall be exclusively and finally settled by arbitration without the
right to appeal in accordance with the UNCITRAL ARBITRATION RULES, currently in force as of the date of this Agreement, and with this Article 37. The appointing and administering authority shall be the Malaysian Regional Center of Arbitration
(“RCA”). Either Party may submit such a dispute, controversy or claim to arbitration by notice to the other Party. 

  

	 	(ii)	The arbitration shall be heard and determined by three (3) arbitrators. Each side shall appoint an arbitrator of its choice within fifteen (15) Days of the submission of a notice of
arbitration. The Party-appointed arbitrators shall in turn appoint a presiding arbitrator of the tribunal within thirty (30) Days following the appointment of both Party-appointed arbitrators. If the Party-appointed arbitrators cannot reach
agreement on a presiding arbitrator of the tribunal or one Party refuses to appoint its Party-appointed arbitrator within said thirty (30) Day period, the appointing authority for the implementation of such procedure shall be the RCA, who shall
appoint an independent arbitrator who does not have any financial interest in the dispute, controversy or claim. All decisions and awards by the arbitration tribunal shall be made by majority vote. 

  

	 	(iii)	Unless otherwise expressly agreed in writing by the Parties to the arbitration proceedings: 

  

	 	(a)	The arbitration proceedings shall be held in Kuala Lumpur, Malaysia; 

  

	 	(b)	The arbitration proceedings shall be conducted in the English language and the arbitrator(s) shall be fluent in the English language; 

  

	 	(c)	The arbitrator(s) shall be and remain at all times wholly independent and impartial; 

  

 94 

	 	(d)	The arbitration proceedings shall be conducted under the UNCITRAL Rules, as amended from time to time (the “Uncitral Rules”), which Rules are deemed
to be incorporated by reference into this Article 37; 

  

	 	(e)	Any procedural issues not determined under the UNCITRAL Rules shall be determined by the applicable laws of England, other than those laws which would refer the matter to
another jurisdiction; 

  

	 	(f)	The costs of the arbitration proceedings (including attorneys’ fees and costs) shall be borne in the manner determined by the arbitrators; 

  

	 	(g)	The decision of a majority of the arbitrators shall be: (i) reduced to writing; (ii) final and binding without the right of appeal; (iii) the sole and exclusive remedy
regarding any claims, counterclaims, issues or accountings presented to the arbitrators; and (iv) made and promptly paid in United States dollars free of any deduction or offset; 

  

	 	(h)	Any costs or fees incident to enforcing the award, shall to the maximum extent permitted by law be charged against the Party resisting such enforcement;

  

	 	(i)	Except as provided in Clause 27.8 special, incidental, indirect, consequential, exemplary or punitive damages (including loss of profit, loss of production, etc.) shall not
be allowed; 

  

	 	(j)	The award shall include interest from the date determined by the arbitration award, and from the date of the award until paid in full, at the Agreed Interest Rate;

  

	 	(k)	Judgment upon the award may be entered in any court having jurisdiction over the Person or the assets of the Party owing the judgment or application may be made to such court
for a judicial acceptance of the award and an order of enforcement, as the case may be; 

  

	 	(l)	The arbitration shall proceed in the absence of a Party who, after due documented and verified notice, fails to answer or appear. An award shall not be made solely on the
default of a Party, but the arbitrator(s) shall require the Party who is present to submit such evidence as the arbitrators may determine is reasonably required to make an award; and 

  

	 	(m)	If the Parties or others who are bound to this or another similar agreement initiate multiple arbitration proceedings, the subject matters of which are related by common
questions of law or fact and which should result in conflicting awards or obligations, then the Parties hereby agree that all such proceedings shall be consolidated into a single arbitral proceeding. 

  

 95 

	 	37.3.	Small Disputes. For disputes where the total amount claimed by either Party does not exceed one hundred thousand United States dollars (U.S. $100,000) and in the case
of any other dispute where the Parties so agree in writing, the arbitration shall be conducted in accordance with the Small Claims Procedure of the London Maritime Arbitration Association. 

  

	 	37.4.	No O&M Compensation. Notwithstanding any other provision of this Agreement to the contrary, in no event shall any cost or expense of any member of the
Contractor Group incurred in connection with any aspect of dispute resolution undertaken or conducted pursuant to the arbitration provisions of this Article 37 or otherwise, qualify for reimbursement hereunder as a Reimbursable Cost, a Time Rate, or
any component of the Fixed Fee. 

  

	 	37.5.	Arbitration Provisions Survive. Article 37 shall survive termination of this Agreement for any cause. 

  

	38.	ENTIRE AGREEMENT 

  

	 	38.1.	Entirety. This Agreement together with its Attachments represents the entire understanding, and constitutes the whole agreement, in relation to its subject
matter and supersedes any previous agreement or understanding between the Parties (whether oral or written) with respect to the matters set forth in this Agreement. In the event of any conflict between the provisions of this Agreement with the terms
or provisions of any Attachment, the terms and provisions of this Agreement shall prevail and control. 

  

	 	38.2.	Failure to Perform. Whenever the same obligation is required to be performed under the provisions of both the Charter and this Agreement, performance of such
obligation under either the Charter or this Agreement shall constitute a performance of the required obligation; provided, however, that it shall never be an excuse for failure to perform such obligation under either such contract that either Owner
or Contractor was waiting for the other to perform under one or both such contacts. Any such failure to perform shall constitute a breach by the party required to perform such obligation under the provisions of the respective contract.

  

	39.	SURVIVAL 

  

	    	The provision in certain Articles and Clauses that such Articles or Clauses shall survive termination of this Agreement shall not affect and shall be without prejudice to the
validity of all other Articles and Clauses in the event of a dispute after termination of this Agreement. 

  

	40.	SUCCESSORS AND ASSIGNS 

  

	    	Subject to Article 25, this Agreement shall inure to the benefit of and be binding upon the permitted successors and assigns of the Parties. The change of control, merger,

  

 96 

	    	reorganization, sale of stock or assets or other transaction affecting ownership, control or structure of Company and its Affiliates, whether by operation of law or otherwise, shall
have no effect on this Agreement or the enforceability hereof. 

  

	41.	WAIVER; CUMULATIVE REMEDIES 

  

	 	41.1.	No Waiver. It is hereby expressly stated and agreed that no actions taken by or on behalf of Company in checking, verifying, reviewing, consenting to,
approving, testing or inspecting the FPSO or any part thereof (hereinafter referred to as “Company Actions”) at any time shall in any way whatsoever have the effect or be construed as having the effect of waiving or modifying
the duties, responsibilities, obligations or liabilities of Contractor Group to properly perform its obligations in accordance with the requirements of this Agreement, or at law, and Contractor shall not be entitled nor shall it seek to rely on
Company Actions to excuse, mitigate or defend any failure(s) in performance on its part arising under this Agreement or at law. 

  

	 	41.2.	Waiver in Writing. Without prejudice to the provisions of Clause 41.1, none of the provisions in this Agreement shall be considered as waived by either Party
unless a waiver is given in writing by such Party. No such waiver shall be a waiver of any past or future default, breach or modification of any of the other provisions of this Agreement unless expressly set forth in such written waiver.

  

	 	41.3.	Powers Cumulative. Without prejudice to Clause 37.2, and except to the extent otherwise expressly provided in this Agreement, all rights, powers and remedies
provided hereunder are cumulative and not exclusive of any rights, powers or remedies provided by law or otherwise. 

  

	42.	PARTIAL INVALIDITY 

  

	    	The illegality, invalidity or unenforceability of a provision of this Agreement under any law shall not affect the legality, validity or enforceability of that provision under
another law or the legality, validity or enforceability of another provision or the remainder of this Agreement. Whenever a provision is held to be invalid or unenforceable, the Parties shall negotiate in good faith to adopt a replacement provision
to carry out the Parties’ original intention to the extent permitted by applicable law. 

  

	43.	MODIFICATIONS 

  

	    	There shall be no modification of this Agreement except by written consent of both Parties. 

  

	44.	EXECUTION BY FACSIMILE AND/OR COUNTERPARTS 

  

	 	44.1.	Facsimile Signatures. The Parties agree that the signature of a Party to this Agreement transmitted by facsimile machine shall be accepted as an original
signature. A Party shall promptly furnish an original signature page of this Agreement if requested by the other Party. 

  

 97 

	 	44.2.	Counterparts. The Parties further agree that this Agreement may be executed in duplicate original counterparts, and each such counterpart shall be deemed an original
agreement for all purposes; provided neither Party shall be bound to this Agreement unless and until both Parties have executed a counterpart. 

  

	45.	RIGHTS OF THIRD PARTIES 

  
 This Agreement is in no way intended to, and does not confer or grant any rights to, any named or unnamed Third Parties, and any such rights granted to
Third Parties under applicable law are hereby excluded except for (i) indemnity, defense and hold harmless rights specifically extended to Contractor Group or Company Group under the provisions of this Agreement and (ii) that Company shall have the
benefit of all Subcontractor warranties and indemnities given to Contractor or otherwise in connection with the FPSO and the Services. No provision of this Agreement may be enforced by any Person not a signatory to this Agreement, unless such Person
has signed a Novation Agreement agreeing to be bound by the provisions hereof or has taken an assignment and assumed the obligations of either Party hereunder pursuant to the provisions of Article 25. 
  

	46.	CROSS REFERENCES 

  
 Contractor hereby acknowledges and confirms that it has received a copy of the Charter. 
  

	47.	MISCELLANEOUS 

  

	 	47.1.	General Provisions. This Agreement shall be construed without regard to the identity of the person who drafted the various provisions hereof. Each provision of this
Agreement shall be construed as though both Parties participated equally in its drafting. Consequently, the Parties acknowledge and agree that any rule of construction that a document is to be construed against the drafting Party shall not be
applicable to this Agreement. The word “includes” and its derivatives means “includes, but is not limited to” and corresponding derivative expressions. 

  

	 	47.2.	General Survival. In order that the Parties may fully exercise their rights and perform their obligations arising under this Agreement, such provisions of this
Agreement as are necessary to ensure such exercise or performance shall survive the completion or termination of this Agreement for any cause whatsoever. 

  

	 	47.3.	Waiver of Sovereign Immunity. Each Party hereby agrees that all of the transactions contemplated by this Agreement shall constitute commercial activities. To the
extent that either Party may be entitled in any jurisdiction whatsoever to claim for itself or any of its agencies, instrumentalities, properties or assets, immunity, whether characterized as sovereign or a similar type of immunity, or as arising
from an act of state or sovereignty, from suit, execution, set-off, attachment or other legal process of any nature whatsoever, it hereby expressly and irrevocably waives such immunity and hereby agrees not to claim or permit to be claimed on its
behalf or on behalf of any of its agencies or instrumentalities any such immunity. Without limiting the 

  

 98 

 generality of the foregoing, the Parties hereby expressly waive any right to claim sovereign or similar
immunity under the laws of Malaysia, or any similar law in any other jurisdiction in the world. 
  

	48.	Lenders Rights 

  
 The Parties acknowledge that the QEL under the Charter will contain a reasonable acknowledgement of lenders rights to enforce their security if a default
occurs under the Owner’s loan arrangements. Irrespective of anything else in this Agreement, each Party agrees that nothing in this Agreement will be construed to prevent Lenders from enforcing their security against the FPSO as mortgagees /
assignees if a default occurs under the Owner’s loan arrangements and Lenders and Charterers do not agree upon a mutually acceptable way to proceed within 180 days. 
  

	49.	FTL 

  
 In the event Contractor’s Affiliate is a contractor or subcontractor for the supply of the Fluid Transfer Line and related services, then,
notwithstanding anything to the contrary in this Agreement, any act or omission by such Contractor’s Affiliates or its subcontractors (“FTL Affiliate”) under such agreement shall not be considered an act, omission, or breach of
Contractor or Contractor Group under this Agreement; provided always that Contractor shall not be entitled to rely upon this Clause in circumstances where the FTL Affiliate in performing its scope of work has acted improperly or in bad faith to
disrupt or interrupt the Services under this Agreement. 
  
 [Signatures on following page.] 
  

 99 

 EXECUTED by the Parties in two originals by their respective duly authorized and empowered officers. 

 

																					
	CONTRACTOR:	 	 	 	 	 	 	 	COMPANY:	 	 	 	 	 	 
						
	 MALAYSIA INTERNATIONAL
 SHIPPING
CORPORATION BERHAD
	 	 	 	MURPHY SABAH OIL CO., LTD.	 	 	 	 	 	 
					
	By:	 	  

	 	 	 	By:	 	  

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
									
	Witness:	 	 	 	 	 	 	 	 	 	Witness:	 	 	 	 	 	 
					
	By:	 	  

	 	 	 	By:	 	  

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  

 100 

																					
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  

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