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Exhibit 10.57    
    

Conformed
Copy 

Dated 12 June 2003  

         DEED OF CONSENT AND AMENDMENT

in respect of the financing

of FPSO "HAEWENE BRIM"  

          

  

Contents 

	Clause
 
	 	 
	 	Page

	1	 	Interpretation	 	2
	

2	
 	

Representations and warranties by each party	
 	

2
	

3	
 	

Effective Time	
 	

3
	

4	
 	

Amendments, clarifications and supplementary provisions	
 	

3
	

5	
 	

Costs and indemnities	
 	

3
	

6	
 	

Further assurance	
 	

4
	

7	
 	

Law and jurisdiction	
 	

4
	

8	
 	

Miscellaneous	
 	

5
	

Schedule 1 Definitions	
 	

7
	

Schedule 2 Documents and evidence required as conditions precedent (Beneficiaries)	
 	

13
	

Schedule 3 Amendments	
 	

16
	

Schedule 4 Clarifications	
 	

34
	

Schedule 5 Supplementary Provisions	
 	

35
	

Schedule 6 The Banks and Financial Institutions	
 	

39

  

THIS DEED OF CONSENT AND AMENDMENT is dated 12 June 2003, and made BETWEEN: 

	(1)
	THE BANKS AND FINANCIAL INSTITUTIONS whose names and addresses are set out in schedule 6, as Banks;

	(2)
	BARCLAYS BANK PLC, acting through its investment banking division, BARCLAYS CAPITAL, as
Arranger;

	(3)
	FORTIS BANK (NEDERLAND) N.V., as Arranger;

	(4)
	ING BANK N.V., as Arranger;

	(5)
	ING BANK N.V., as Facility Agent;

	(6)
	BARCLAYS BANK PLC, as General Security Trustee, Credit Security Trustee and Facility Security Trustee;

	(7)
	BARCLAYS BANK PLC, acting through its investment banking division, BARCLAYS CAPITAL, as
technical bank;

	(8)
	BLUEWATER (HAEWENE BRIM) N.V., as hull owner;

	(9)
	BLUEWATER (HAEWENE BRIM) N.V., as Lessor's Agent;

	(10)
	PIERCE PRODUCTION COMPANY LIMITED;

	(11)
	BLUEWATER ENERGY N.V.;

	(12)
	BLUEWATER HOLDING B.V.;

	(13)
	AURELIA ENERGY N.V.;

	(14)
	BLUEWATER OFFSHORE PRODUCTION SYSTEMS LIMITED;

	(15)
	LUDULIA ASSET FINANCE B.V.;

	(16)
	REFUGIO B.V.;

	(17)
	RANBERGER HOLDING N.V.;

	(18)
	BLUEWATER ENERGY SERVICES B.V.

	(19)
	HILL SAMUEL LEASING (NO.4) LIMITED, as Lessor;

	(20)
	ALICE EXPLORATION FOUNDATION, ARIEL EXPLORATION FOUNDATION, ASTERIX EXPLORATION FOUNDATION AND OLA DUNK II FOUNDATION, as Standby
Purchasers;

	(21)
	ING BANK N.V., acting through its Amsterdam head office, as Equipment Account Bank; and

	(22)
	ING BANK N.V., acting through its Amsterdam head office, as Security Trustee Account Bank. 

WHEREAS:  

	(A)
	Pursuant
to the Credit Agreement, the Banks have agreed to make available to the Borrowers a credit facility of up to $600,000,000, upon the terms and conditions therein contained.

	(B)
	The
Bluewater Agent has requested that the Beneficiaries enter into and, as applicable, consent to the entry into of each of the Topsides Documents and the transactions thereby
contemplated, in each case, in consideration of the security to be granted in favour of and the agreements to be concluded for the benefit of the Beneficiaries under and pursuant to the Topsides
Documents. 

1

 

THIS DEED WITNESSES as follows: 

1      Interpretation  

	1.1
	Definitions

In
this Deed, words and expressions defined in the Deed of Proceeds and Priorities (as defined in schedule 1) (whether by reference to another document or agreement or otherwise) and/or in the
Credit Agreement Supplemental Agreement (as defined in schedule 1) and/or in schedule 1 shall, unless otherwise defined herein or the context otherwise requires, have the same meanings
when used herein. 

	1.2
	Headings 

Clause
headings and the table of contents are inserted for convenience of reference only and shall be ignored in the interpretation of this Deed. 

	1.3
	Construction

In
this Deed, unless the context otherwise requires: 

	1.3.1
	references
to clauses and schedules are to be construed as references to clauses of, and schedules to, this Deed and references to this Deed include its schedules;

	1.3.2
	references
to (or to any specified provision of) this Deed or any other document shall be construed as references to this Deed, that provision or that document as in force for the
time being and as amended in accordance with the terms thereof with the consent of all relevant parties pursuant to any relevant provision of this Deed and clause 16.3 of the Deed of Proceeds
and Priorities;

	1.3.3
	references
to a "regulation" include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any Government
Entity;

	1.3.4
	words
importing the plural shall include the singular and vice versa;

	1.3.5
	references
to a time of day are to the time in London, England, on the relevant day; and

	1.3.6
	references
to a statutory provision shall be deemed to include references to that provision as from time to time replaced, amended and re-enacted.

	1.4
	References
in this Deed to the Facility Agent, the Technical Bank, the General Security Trustee, the Credit Security Trustee, the Facility Security Trustee, any Arranger, any Bank or
any Hedging Provider and references to all or any obligations and liabilities of any one or more of those persons shall be strictly construed as references to that person or (as the case may be) those
obligations and liabilities of that person solely in its capacity as such. 

2      Representations and warranties by each party  

Each
of the parties to this Deed represents and warrants (as regards itself only) to each of the other parties to this Deed as follows: 

	2.1.1
	it
is duly incorporated and validly existing under the laws of its jurisdiction of incorporation, and has the corporate power and authority to enter into and perform its obligations
under this Deed; and

	2.1.2
	it
has power to execute, deliver and perform its obligations under this Deed, and all necessary corporate, shareholder and other action has been duly obtained or taken to authorise
the execution, delivery and performance of the same. 

2

 

3      Effective Time  

The
Effective Time shall be the time at which the Facility Agent, acting as agent of the General Security Trustee pursuant to clause 7.18 of the Deed of Proceeds and Priorities, determines in
writing that each of the conditions specified in schedule 3 has been fulfilled to its satisfaction. 

4      Amendments, clarifications and supplementary provisions  

	4.1
	With
effect from the Effective Time or, where indicated in schedule 3, the Ranberger Release Time, the Transaction Documents shall be amended in the manner set out in
schedule 3.

	4.2
	With
effect from the Effective Time, the Transaction Documents shall be clarified in the manner set out in schedule 4.

	4.3
	With
effect from the Effective Time or, in the case of paragraph 8 thereof, the date hereof, the Transaction Documents shall be supplemented in the manner set out in
schedule 5. 

5      Costs and indemnities  

	5.1
	Expenses

Aurelia
Energy shall pay to each of the Beneficiaries, on a full and unqualified indemnity basis, on demand by that Beneficiary, all and any Losses: 

	5.1.1
	paid,
suffered or incurred by that Beneficiary in connection with the negotiation, preparation, execution, completion and, where relevant, registration of this Deed and the Topsides
Documents (or any of them) and of any amendment of, or the granting of any waiver or consent under or pursuant to, this Deed and the Topsides Documents (or any of them) together with interest at the
Default Rate, in each case, from the date of that demand to the date of payment (after as well as before judgment); and

	5.1.2
	paid,
suffered or incurred by that Beneficiary, or by any manager, agent, officer or employee for whose liability, act or omission that Beneficiary may be answerable, in
contemplation of, or otherwise in connection with, the exercise, enforcement or preservation of all or any rights, interests, powers and remedies of that Beneficiary under or pursuant to this Deed and
the Topsides Documents (or any of them) together with interest at the Default Rate, in each case, from the date of that demand to the date of payment (after as well as before judgment).

	5.2
	Value
added tax 

All
amounts payable pursuant to this clause 8 shall be paid together with any value added tax or similar tax (if any) properly chargeable thereon. 

	5.3
	Stamp
and other duties 

Aurelia
Energy shall pay all stamp, documentary, registration or other like duties or taxes (including any duties or taxes payable by any Beneficiary) imposed on or in connection with this Deed and
the Topsides Documents (or any of them) and shall indemnify each of the Beneficiaries against any Losses paid, suffered or incurred by any of them by reason of any delay or omission by Aurelia Energy
to pay such duties or taxes. 

3

 

6      Further assurance  

Each
of the parties to this Deed covenants with the other parties hereto that it will (at no expense to any Beneficiary and at the cost and expense of Aurelia Energy) from time to time execute, sign,
perfect, do and (if required) file, record, register and enrol every further deed, assurance, agreement, instrument, act and thing which such other party may reasonably require for the purposes of
effecting and/or perfecting the reassignments, discharges and releases contemplated by this Deed. 

7      Law and jurisdiction  

	7.1
	Law

This
Deed is governed by, and shall be construed in accordance with, the laws of England and Wales. 

	7.2
	Submission
to jurisdiction 

For
the benefit of the General Security Trustee and each other Beneficiary, each of LBV, RBV, Ranberger, Aurelia Energy, BHB, the Lessor's Agent, PPC, BH, Bluewater Energy and the Bluewater Agent and
each Standby Purchaser irrevocably and unconditionally agrees that any legal action or proceeding arising out of or in connection with this Deed may be brought in the English courts, which shall have
jurisdiction to settle or determine any dispute or claim arising out of or in connection with this Deed, and irrevocably and unconditionally submits to the exclusive jurisdiction of the English
courts. 

	7.3
	Process
agents 

Each
of LBV and RBV irrevocably and unconditionally designates, appoints and empowers Norose Notices Limited at the address of its registered office for the time being (presently of Kempson House,
Camomile Street, London EC3A 7AN, England) (marked for the attention of the Director of Administration, reference AJBD/AA51820), and each of Ranberger, Aurelia Energy, BHB, the Lessor's Agent, BH,
Bluewater Energy and the Bluewater Agent and each Standby Purchaser irrevocably and unconditionally designates, appoints and empowers WFW Legal Services Limited at the address of its registered office
for the time being (presently of 15 Appold Street, London EC2A 2HB, England), in each case to receive, for it and on its behalf, service of process issued out of the English courts in any legal action
or proceeding arising out of or in connection with this Deed. 

	7.4
	Non
exclusivity 

The
submission to such jurisdiction shall not (and shall not be construed so as to) limit the right of the General Security Trustee or any other Beneficiary to take any legal action or proceeding
against any of LBV, RBV, Ranberger, Aurelia Energy, BHB, the Lessor's Agent, PPC, BH, Bluewater Energy, the Bluewater Agent or any Standby Purchaser in any other court of competent jurisdiction nor
shall the taking of any legal action or proceeding in any one or more jurisdictions preclude the taking of any legal action or proceeding in any other jurisdiction, whether concurrently or not. 

	7.5
	Proceedings
against the Beneficiaries 

4

 

Each
of LBV, RBV, Ranberger, Aurelia Energy, BHB, the Lessor's Agent, PPC, BH, Bluewater Energy and the Bluewater Agent and each Standby Purchaser agrees that only the English courts and not those of
any other jurisdiction shall have jurisdiction to settle and determine any dispute or claim which any of LBV, RBV, Ranberger, Aurelia Energy, BHB, the Lessor's Agent, PPC, BH, Bluewater Energy, the
Bluewater Agent or any Standby Purchaser may have against the General Security Trustee or any other Beneficiary arising out of or in connection with this Deed. 

8      Miscellaneous  

	8.1
	Transaction
Documents 

It
is agreed by each of the parties hereto that this Deed is: 

	8.1.1
	a
Facility Document and a Transaction Document and is supplemental to the Deed of Proceeds and Priorities. Accordingly, all references in any Transaction Document or any Transfer
Certificate to the Deed of Proceeds and Priorities (howsoever referred to) shall include a reference to this Deed; and

	8.1.2
	a
Lease Document under and as defined in each of the Uisge Gorm Head Lease, the Glas Dowr Head Lease, the Bleo Holm Topsides Head Lease and the Additional Head Lease respectively.

	8.2
	Consent—Topsides
Documents 

Each
of the parties hereto hereby expressly, in each case, for all purposes of the Transaction Documents and to the extent that such consent is required, with effect from the Effective Time,
acknowledges and consents to: 

	8.2.1
	the
entry into by each of the parties hereto of each of the Topsides Documents to which it is, or is to be, a party; and

	8.2.2
	the
transactions contemplated by each of the Topsides Documents, 

and
expressly waives all or any breaches of the terms of the Transaction Documents which would otherwise occur as a result of any of the foregoing matters. 

	8.3
	Authority
and instructions 

Each
of (a) the Facility Beneficiaries hereby authorises and instructs each of the Facility Agent, the Technical Bank and the Facility Security Trustee, (b) the Credit Beneficiaries
hereby authorises and instructs the Credit Security Trustee, and (c) the Beneficiaries hereby authorises and instructs the General Security Trustee, in each case, to enter into, execute and
deliver this Deed and each of the Topsides Documents to which the Facility Agent, the Technical Bank, the Facility Security Trustee, the General Security Trustee or, as the case may be, the Credit
Security Trustee is to be a party and all other documents and instruments (including, without limitation, any further documents or instruments which amend or waive any breach of, or default under, or
otherwise excuse any performance of, or give any consent under, any provision of any Transaction Document) which may be reasonably requested by the Lessor or the Bluewater Agent in connection with all
or any of the matters referred to in this Deed and which are acceptable to the Facility Agent, the Technical Bank, the Facility Security Trustee, the General Security Trustee or, as the case may be,
the Credit Security Trustee. 

	8.4
	No
implied waivers, remedies cumulative 

5

 

Except
as otherwise expressly provided in this Deed, no failure or delay on the part of any party hereto to exercise any power, right or remedy under this Deed shall operate as a waiver thereof, nor
shall any single or partial exercise by such party of any power, right or remedy preclude any other or further exercise thereof or the exercise of any other power, right or remedy. The remedies
provided in this Deed are cumulative and are not exclusive of any remedies provided by law. 

	8.5
	No
partnership 

This
Deed shall not, and shall not be construed so as to, constitute a partnership between the parties or any of them. 

	8.6
	Secured
Obligations 

Nothing
contained in this Deed shall, as between any Obligor and the Beneficiaries (or any of them), affect or prejudice any powers, rights or remedies of any Beneficiary against any Obligor in
respect of any of the Secured Obligations. Nothing contained in this Deed shall, as between any Obligor and the Facility Beneficiaries (or any of them), affect or prejudice any powers, rights or
remedies of any Facility Beneficiary against any Obligor in respect of any of the Facility Obligations. Nothing contained in this Deed shall, as between any Obligor and the Credit Beneficiaries (or
any of them), affect or prejudice any powers, rights or remedies of any Credit Beneficiary against any Obligor in respect of any of the Credit Obligations. 

	8.7
	Counterparts

This
Deed may be entered into in the form of two or more counterparts, each executed by one or more of the parties hereto, and, provided all the parties hereto shall so execute this Deed, each of the
executed counterparts, when duly exchanged or delivered, shall be deemed to be an original but, taken together, they shall constitute one instrument. 

	8.8
	English
language 

All
certificates, instruments and other documents to be delivered under or supplied in connection with this Deed shall be in the English language or shall be accompanied by a certified English
translation upon which the recipient shall be entitled to rely. 

	8.9
	Severability
of provisions 

Each
of the provisions of this Deed is severable and distinct from the others and if at any time one or more of those provisions is or becomes invalid, illegal or unenforceable under the laws of any
jurisdiction neither the validity, legality and enforceability of the remaining provisions of this Deed nor the validity, legality and enforceability of those provisions in any other jurisdiction
shall in any way be affected or impaired thereby. 

	8.10
	Assignees
and pledgees 

Each
party hereto which is an assignee and/or pledgee of the rights of any other party hereto agrees that, as such assignee and/or pledgee, it shall be bound by any restrictions on the exercise of
those rights imposed on the assignor and/or pledgor by any provision of this Deed. 

	8.11
	Deed
of Proceeds and Priorities 

        The
provisions of each of clauses 20, 23, 24 and 27 of the Deed of Proceeds and Priorities shall be deemed incorporated mutatis mutandis in this Deed as if all references therein to
"this Deed" were references to this Deed. 

IN WITNESS whereof this Deed has been duly executed as a deed and delivered the day and year first above written. 

6

 

 
 

Schedule 1
  Definitions    
    

"Credit Agreement Supplemental Agreement" means the credit agreement supplemental agreement dated of even date herewith and made between the Bluewater
Agent and the Facility Agent; 

"Deed of Proceeds and Priorities" means the trust deed and deed of proceeds and priorities dated 28 January 2003 between (1) the banks and
financial institutions listed in schedule 1 thereto, (2) Barclays Bank PLC, acting through its investment banking division, Barclays Capital, as arranger, (3) Fortis Bank
(Nederland) N.V., as arranger, (4) ING Bank N.V., as arranger, (5) ING Bank N.V., as facility agent, (6) Barclays Bank PLC, acting through its investment banking division,
Barclays Capital, as technical bank, (7) Barclays Bank PLC, as general security trustee, (8) Barclays Bank PLC, as credit security trustee, (9) Barclays Bank PLC, as facility
security trustee, (10) Bluewater Holding B.V., Bluewater Energy Services B.V., Bluewater Offshore Production Systems Limited, Bluewater (Haewene Brim) N.V., Bluewater (Munin) N.V., Ranberger
Holding N.V., Luludia Asset Finance B.V. and Refugio B.V., as borrowers and security parties, (11) Aurelia Energy N.V., Bluewater (Bleo Holm) N.V., Bluewater (Floating Production) Limited,
Bluewater (Glas Dowr) N.V., Bluewater (Malta) Limited, Bluewater (New Hull) N.V., Bluewater (UK) Limited, Bluewater Energy N.V., Bluewater Equipment Leasing Limited, Bluewater Offshore Productions
Systems N.V., Bluewater Operations (UK) Limited, Bluewater Terminal Systems N.V., Bluewater Norway ANS, Lufeng Development Company ANS, Pierce Production Company Limited, Bluewater
Brasil Ltda., Bluewater Floating Productions B.V., Bluewater International B.V., Bluewater Offshore Production Systems Nigeria Limited, Bluewater Offshore Productions System (USA) Inc.,
Bluewater Services (UK) Limited and Bleo Holm Standby Purchaser N.V., as guarantors and security parties, (12) Bluewater Energy Services B.V., as Bluewater agent, (13) Hill Samuel
Leasing (No. 4) Limited, as lessor, (14) Alice Exploration Foundation, Ariel Exploration Foundation and Asterix Exploration Foundation, as Standby Purchasers, (15) ING Bank N.V.,
acting through its Amsterdam head office, as equipment account bank, and (16) ING Bank N.V., acting through its Amsterdam head office, as security trustee account bank, as from time to time
amended and supplemented; 

"Effective Time" means the time determined in accordance with clause 3; 

"Haewene Brim Standby Purchaser" means Ola Dunk II Foundation; 

"Intertrust (Antilles)" means Intertrust (Antilles) N.V.; 

"Intertrust (Curaçao)" means Intertrust (Curaçao) N.V; 

"Ranberger Release Time" has the meaning given thereto in paragraph 8(l) of schedule 5; 

"Topsides Documents" means each of the documents listed in Appendix A to this schedule 1. 

7

  

 
 

Appendix A
  Document List    
    

(Italics denote that the relevant document will be issued only on closing)  

	 
	 	Document
 
	 	Parties

	A	 	Transfer of title: Ranberger to Lessor	 	 
	
1.	
 	

Sale Agreement, dated 8 April	
 	

(1) Ranberger

(2) Lessor

(3) BHB as Lessor's Agent
	
2.	
 	
Sale Date Memorandum	
 	
(1) Ranberger

(2) Lessor

(3) BHB as Lessor's Agent
	
3.	
 	
Certificate of Deviating Condition (Topsides)	
 	
(1) BHB
	
B	
 	

Topsides lease documents	
 	

 
	
4.	
 	

Lease, dated 8 April 2003	
 	

(1) Lessor

(2) PPC

(3) Bluewater Energy
	
5.	
 	
Acceptance Certificate	
 	
(1) PPC

(2) Lessor
	
6.	
 	

Addendum No. 1 to the Haewene Brim Topsides' Charter, dated 7 April 2003	
 	

(1) Ranberger

(2) PPC
	
C	
 	

Lessor security	
 	

 
	
7.	
 	

Restated Guarantee, together with related Deed of Restatement, dated as of 8 April 2003	
 	

(1) Aurelia Energy

(2) Bluewater Energy

(3) BH

(4) Lessor
	
8.	
 	

First Deposit Deed, dated 8 April 2003	
 	

(1) Bluewater Energy

(2) Lloyds

(3) Lessor
	
9.	
 	

Second Deposit Deed, dated 8 April 2003	
 	

(1) Bluewater Energy

(2) Lloyds

(3) Lessor
	
10.	
 	

Holding Account Deed, dated 8 April 2003	
 	

(1) Bluewater Energy

(2) Lloyds

(3) Lessor
	
11.	
 	

Deed of Release and Reassignment — existing Holding Account Deed -dated 8 April 2003	
 	

(1) Lessor

(2) Bluewater Energy

(3) Lloyds
	
12.	
 	

Contingency Account Deed, dated 8 April 2003	
 	

(1) PPC

(2) Lloyds

(3) Lessor
	 	 	 	 	 

8

 

	
13.	
 	

Forex Indemnity Letter	
 	

(1) Lessor

(2) PPC

(3) Aurelia Energy
	
14.	
 	

Rent Account Deed	
 	

(1) PPC

(2) Lloyds

(3) Lessor
	
15.	
 	

Letter of Credit, dated 8 April 2003	
 	

(1) BNS

(2) Lessor
	
16.	
 	
Effective Date Notice (Letter of Credit)	
 	

(1) BNS
	
D	
 	

L/C documents	
 	

 
	
17.	
 	

Reimbursement Agreement, dated 8 April 2003	
 	

(1) BH

(2) BNS
	
18.	
 	

Deposit Agreement and Deposit Charge, dated 8 April 2003	
 	

(1) BNS

(2) BH
	
19.	
 	

L/C Guarantee, dated 8 April 2003	
 	

(1) Aurelia Energy

(2) BNS
	
E	
 	

Standby documents	
 	

 
	
20.	
 	

Standby Put Option Deed, dated 8 April 2003	
 	

(1) Lessor

(2) Haewene Brim Standby Purchaser
	
21.	
 	

Standby Lease Agreement, dated 8 April 2003	
 	

(1) Haewene Brim Standby Purchaser

(2) BH

(3) PPC
	
22.	
 	

Standby Sub-Lease Agreement, dated 8 April 2003	
 	

(1) BH

(2) PPC
	
F	
 	

Additional Lessor/Bluewater documents	
 	

 
	
23.	
 	

Lloyds Support Letter to Bluewater	
 	

(1) Lloyds

(2) Aurelia Energy

(3) PPC
	
24.	
 	

Risk Transfer Agreement, dated 8 April 2003	
 	

(1) BH

(2) PPC
	
25.	
 	

Protocol Agreement, dated 8 April 2003	
 	

(1) Lessor

(2) Bluewater Agent

(3) LBV

(4) RBV
	
26.	
 	

Contribution Agreement, dated 7 April 2003	
 	

Borrowers and Guarantors under the RCF who are Aurelia Group Members (as defined in the RCF)
	
G	
 	

Bank documents	
 	

 
	
27.	
 	

Lloyds Guarantee to the Banks	
 	

(1) Lloyds

(2) Credit Security Trustee
	 	 	 	 	 

9

 

	
28.	
 	

Recognition of Rights Deed	
 	

(1) General Security Trustee

(2) Credit Security Trustee

(3) BHB

(4) Lessor's Agent

(5) PPC

(6) Bluewater Energy

(7) BH

(8) Bluewater Agent

(9) Lessor

(10) Haewene Brim Standby Purchaser

(11) Bleo Holm Topsides Standby Purchaser

(12) Glas Dowr Standby Purchaser

(13) Uisge Gorm Standby Purchaser

(14) Equipment Account Bank

(15) Security Trustee Account Bank
	
29.	
 	

Credit Agreement Supplemental Agreement	
 	

(1) Facility Agent

(2) Bluewater Agent
	
30.	
 	

Standby Purchaser DPP Supplemental Deed	
 	

(1) Haewene Brim Standby Purchaser

(2) General Security Trustee
	
31.	
 	

Lessor's Agent DPP Supplemental Deed	
 	

(1) BHB as Lessor's Agent

(2) General Security Trustee
	
32.	
 	

Lessor's Agent General Assignment Supplemental Deed	
 	

(1) BHB as Lessor's Agent

(2) General Security Trustee
	
33.	
 	

Standby Purchaser Assignment	
 	

(1) Haewene Brim Standby Purchaser

(2) General Security Trustee
	
34.	
 	

Covenant to Pay	
 	

(1) Haewene Brim Standby Purchaser

(2) General Security Trustee
	
35.	
 	

Standby Purchaser Account Charge	
 	

(1) General Security Trustee

(2) Haewene Brim Standby Purchaser

(3) Assigned Account Bank
	
36.	
 	

Standby Purchaser Instructing Parties Letter	
 	

(1) Intertrust (Antilles)

(2) Intertrust (Curaçao)

(3) General Security Trustee

(4) BH
	
37.	
 	

Notices of Assignment of Insurances, with Loss Payable Clauses	
 	

(1) General Security Trustee

(2) BHB

(3) PPC

(4) Lessor

(5) Haewene Brim Standby Purchaser
	
38.	
 	

Partial Release of BHB Mortgage (Topsides)	
 	

(1) General Security Trustee
	
H	
 	

Enterprise documents	
 	

 
	 	 	 	 	 

10

 

	
39.	
 	

Restated Quiet Enjoyment Letter (Banks)	
 	

(1) Facility Agent

(2) Enterprise

(3) PPC

(4) BHB

(5) Haewene Brim Standby Purchaser

(6) Aurelia Energy
	
40.	
 	

Quiet Enjoyment Letter (Lessor)	
 	

(1) Lessor

(2) Enterprise

(3) PPC

(4) BHB

(5) Aurelia Energy

(6) BH

(7) Haewene Brim Standby Purchaser

(8) Facility Agent
	
41.	
 	

Letter Agreement to the Enterprise Field Contract	
 	

(1) Enterprise

(2) PPC

(3) BHB

(4) Ranberger

(5) Aurelia Energy

(6) BH

(7) Haewene Brim Standby Purchaser
	
42.	
 	

Deed of Amendment and Restatement (restated Quiet Enjoyment Letter (Banks))	
 	

(1) Enterprise

(2) PPC

(3) BHB

(4) Aurelia Energy

(5) Haewene Brim Standby Purchaser

(6) Facility Agent
	
43.	
 	

Guarantee Confirmation	
 	

(1) Aurelia Energy

(2) BH

(3) Enterprise
	
I	
 	

Tax side letters	
 	

 
	
44.	
 	

Tax Consultation Side Letter dated 8 April 2003	
 	

(1) Lessor

(2) PPC
	
45.	
 	

Rate of Writing Down Allowances Side Letter dated 8 April 2003	
 	

(1) Lessor

(2) PPC
	
46.	
 	

Indexation Relief Side Leter dated 8 April 2003	
 	

(1) Lessor

(2) PPC
	
47.	
 	

Pooling Benefits Side Letter	
 	

(1) Lessor

(2) PPC

(3) LBV

(4) RBV

(5) BOPS

(6) Bluewater Energy
	 	 	 	 	 

11

 

	
48.	
 	

Excluded Obligations Letter	
 	

(1) Lessor

(2) Bluewater Energy

(3) Bluewater Agent

(4) RBV

(5) LBV

(6) PPC
	
49.	
 	

Mawson Letter	
 	

(1) Lessor

(2) PPC

(3) RBV

(4) LBV

(5) BML
	
J	
 	

Bleo Holm documents	
 	

 
	
50.	
 	

Partial Release of BBH Mortgage (Bleo Holm Topsides)	
 	

(1) General Security Trustee
	
51.	
 	

Certificate of Deviating Condition (Bleo Holm Topsides)	
 	

(1) BBH

12

  

 
 

Schedule 2
  Documents and evidence required as conditions precedent (Beneficiaries)
  (referred to in clause 3)    
    

1      Corporate documents  

	1.1
	Constitutive
Documents 

Copies
of the Constitutive Documents of each Obligor other than the Lessor who is a party to a Topsides Document (the "Relevant Obligors"), certified
(in a certificate dated no earlier than fourteen (14) days prior to the date of this Deed) by an officer of that Relevant Obligor as: 

	(i)
	being
true, correct and complete;

	(ii)
	not
having been amended, modified or revoked; and

	(iii)
	being
in full force and effect;

	1.2
	Corporate
authorisations 

Copies
of the resolutions of the directors and, where required by the laws of any Relevant Jurisdiction in relation to that Relevant Obligor, the stockholders of each Relevant Obligor approving those
Topsides Documents to which that Relevant Obligor is, or is to be, a party and authorising the entry into, execution and delivery thereof and the performance of that Relevant Obligor's obligations
thereunder, certified (in a certificate dated no earlier than fourteen (14) Banking Days prior to the date of this Deed) by an officer of that Relevant Obligor as: 

	(i)
	being
true, complete and correct;

	(ii)
	being
duly passed at meetings of the directors of that Relevant Obligor, and, where required by the laws of any Relevant Jurisdiction in relation to that Relevant Obligor, of the
stockholders of that Relevant Obligor, duly convened and held;

	(iii)
	not
having been amended, modified or revoked; and

	(iv)
	being
in full force and effect;

	1.3
	Specimen
signatures 

Copies
of the signatures of each of the persons who have been authorised on behalf of each Relevant Obligor to sign those Topsides Documents to which that Relevant Obligor is, or is to be, a party and
to give notices and communications, including notices of drawing, under or in connection with those Topsides Documents, certified (in a certificate dated no earlier than fourteen (14) Banking
Days prior to the date of this Deed) by an officer of that Relevant Obligor as being the true signatures of those persons; 

	1.4
	Certificate
of incumbency 

A
list of the directors and other officers of each Relevant Obligor specifying the names and positions of those persons, certified (in a certificate dated no earlier than fourteen (14) Banking
Days prior to the date of this Deed) by an officer of that Relevant Obligor to be true, complete and up to date; 

	1.5
	Lessor 

In
relation to the Lessor, each of the documents referred to in the foregoing paragraphs and in paragraph 2 below to the extent that, and in substantially the same form as, provided in
connection with the Transaction Documents; and 

	1.6
	Lloyds

13

 

Evidence
of the authority of Lloyds to issue the Lloyds Bank Guarantee and evidence of the authority of the signatories thereto to execute and deliver the same. 

2      Consents  

Consents
and approvals 

A
certificate (dated no earlier than fourteen (14) Banking Days prior to the date of this Deed) by an officer of that Relevant Obligor that no consents, authorisations, licences or approvals
of, or registrations or declarations with, any Government Entity are required by that Relevant Obligor to authorise, or otherwise in connection with, the execution, delivery, entry into, validity,
enforceability, priority or admissibility in evidence of, or the performance by that Relevant Obligor of its obligations under, those Topsides Documents to which that Relevant Obligor is, or is to be,
a party. 

3      Documents  

Topsides
Documents 

An
original duly executed copy of each of the Topsides Documents, excluding any Topsides Document which is not entered into at or prior to the Effective Time in respect of which the Credit Security
Trustee determines (in its absolute discretion) that the absence of such Topsides Document being entered into does not and will not adversely affect all or any of the rights and interests of the
Credit Beneficiaries or any of them. 

4      Insurances  

	4.1
	Insurances

Evidence
that the Equipment and each part thereof is insured in accordance with the provisions of the Additional Head Lease and the Facility Documents (except to the extent that those provisions may,
pursuant to clause 12.4, be amended or waived in connection with all or any of the matters referred to in this Deed) and that all requirements of the Additional Head Lease and the Facility
Documents (except to the extent that those requirements may, pursuant to clause 12.4, be amended or waived in connection with all or any of the matters referred to in this Deed) in relation to
that insurance have been complied with (including, without limitation, confirmation from each protection and indemnity association or other insurer with which the Equipment and each part thereof is,
or is to be, entered for insurance or insured against protection and indemnity risks (including oil pollution risks) that all necessary declarations required by the association or insurer for the
removal of any oil pollution exclusion have been made and that any such exclusion does not apply to the Equipment or any part thereof); and 

	4.2
	Insurance
opinion 

An
opinion from the Insurance Consultant in relation to the insurances effected or to be effected in respect of the Equipment and each part thereof. 

5      Equipment  

	5.1
	Ownership 

Evidence
that title to the Equipment has been transferred to the Additional Equipment Lessor in accordance with the terms of the Additional Sale and Conversion Agreement; and 

	5.2
	Encumbrances

14

 

Evidence
that no Encumbrances are registered against the Haewene Brim Vessel or any part thereof except the BHB Mortgage. 

6      Third parties  

	6.1
	Consents

Evidence
that each party (other than the parties to this Deed) to the Topsides Documents and each party (other than the parties to this Deed) to the Assigned Documents in relation to the Haewene Brim
Topsides has given every consent, approval or waiver that is required from it in respect of the transactions contemplated by the Topsides Documents; and 

	6.2
	Conditions
precedent 

Evidence
that all conditions to the obligations of the parties to the Topsides Documents to which it is party under and pursuant to those Topsides Documents (except, if applicable, the release,
reassignment, consent and amendments to be given and effected under this Deed) have been satisfied in full or unconditionally and irrevocably waived, that no Insolvency Event has occurred in relation
to any such party or, if any has, any consequence of that Insolvency Event does not, and may not, in the opinion of the Facility Agent, have a material adverse effect on the ability of the Obligors to
satisfactorily perform their respective obligations under the Facility Documents and will not, and may not, result in the occurrence of any Default and that the Effective Time has occurred under and
as defined in the Additional Sale and Conversion Agreement. 

7      Accounts  

        Evidence that the Additional Assigned Account of the Haewene Brim Standby Purchaser and the Equipment Account in relation to the Additional Equipment Lessor has
been opened. 

8      Opinions  

	8.1
	Netherlands
opinion 

An
opinion of Norton Rose Amsterdam, special legal advisers in The Netherlands to the Credit Beneficiaries; 

	8.2
	Netherlands
Antilles opinion 

An
opinion of Smeets Thesseling Van Bokhorst Spigt, special legal advisers in The Netherlands Antilles to the Credit Beneficiaries; 

	8.4
	English
opinion 

An
opinion of Norton Rose, special legal advisers in England to the Credit Beneficiaries; 

	8.6
	Further
opinions 

Such
further opinions as may be required by the Credit Security Trustee. 

9      Process agents  

        A copy, certified as a true copy by that Obligor's solicitors or by such other person as may be acceptable to the Facility Agent, of a letter from each Obligor's
(other than those Obligors incorporated under the laws of England and Wales) process agent for service of proceedings accepting its appointment under each of the Topsides Document in which it is or is
to be appointed as that Obligor's process agent. 

15

 

10    Registration  

        Such statutory forms duly signed by all or any of the Obligors as may be required to perfect the security contemplated by the Topsides Documents. 

 
 

Schedule 3
  Amendments    
    

A     Definitions  

        In each of schedule 2 to the Deed of Proceeds and Priorities and schedule 9 to the Credit Agreement: 

	1
	The
following definitions shall be deleted: Haewene Brim Topsides, Haewene Brim Topsides Financial Schedule and Haewene Brim Topsides Lease, and each reference in the Transaction
Documents to any of those definitions shall be disregarded.

	2
	With
effect from the Ranberger Release Time, the following definitions shall be deleted: Ranberger Advance, Ranberger Credit, Ranberger Excluded Assigned Property, Ranberger
Liabilities, Ranberger Obligations, Ranberger Outstanding Indebtedness and Ranberger Owner, and each reference in the Transaction Documents to any of those definitions shall be disregarded.

	3
	The
following definitions shall be inserted: 

"Haewene Brim Topsides" has the meaning attributed to the expression "Equipment" in the Haewene Brim
Topsides Sale Agreement; 

"Haewene Brim Topsides Credit" means, at any time, the principal amount of the Advance drawn down by BH pursuant to paragraph 8 of
schedule 5 to the Haewene Brim Topsides Deed of Consent, less the aggregate of all amounts received by the Facility Agent and applied in repayment of that amount pursuant to clause 4.2
of the Credit Agreement; 

"Haewene Brim Topsides Credit Agreement Supplemental Agreement" means the credit agreement supplemental agreement dated
[    ] 2003 between the Bluewater Agent and the Facility Agent, in relation to the Haewene Brim Topsides; 

"Haewene Brim Topsides Deed of Consent" means the deed of consent and amendment dated [    ] 2003 and made between,
amongst others, certain of the parties to the Deed of Proceeds and Priorities, in relation to the Haewene Brim Topsides; 

"Haewene Brim Topsides Head Lease" means the Additional Head Lease (as defined in the Haewene Brim Topsides Credit Agreement Supplemental Agreement); 

"Haewene Brim Topsides Outstanding Indebtedness" means, at any time, the aggregate of (i) the Haewene Brim Topsides Credit at that time and all
interest accrued thereon and all fees then due and payable in relation thereto, and (ii) all other amounts then due and payable by BH and/or PPC to the Facility Beneficiaries or any of them
under and pursuant to the Facility Documents or any of them, to the extent that such amounts relate to the Haewene Brim Topsides; 

"Haewene Brim Topsides Risk Transfer Agreement" means the risk transfer agreement dated 8 April 2003 between BH and PPC, in relation to the
Haewene Brim Topsides; 

"Haewene Brim Topsides Sale Agreement" has the meaning attributed to the expression "Additional Sale and Conversion
Agreement" in the Haewene Brim Topsides Credit Agreement Supplemental Agreement;" 

	4
	Paragraph (a)(C)
of the definition of Assigned Property shall be deleted in its entirety. 

16

 
	5
	Part (v)
of the definition of Liabilities shall be deleted in its entirety and the other parts of that definition shall be renumbered accordingly.

	6
	With
effect from the Ranberger Release Time, in the definition of Limited Recourse Company, the word "Ranberger," shall be deleted.

	
7
	Paragraph (vii)
 of the definition of Payment Documents shall be deleted and replaced with the following: "(vii) in relation to the Haewene Brim Topsides, the Haewene
Brim Topsides Risk Transfer Agreement and the Haewene Brim Topsides Deed of Consent, and"

	8
	Paragraph (vii)
of the definition of Sub-Lease shall be deleted and replaced with the following: "(vii) In relation to the Haewene Brim Topsides, the Haewene Brim
Topsides Head Lease, and"

	9
	Each
reference in the Transaction Documents to the Haewene Brim Quiet Enjoyment Letter shall be deemed to be a reference to the document listed at paragraph 39 of
Appendix A to schedule 1.

	10
	Each
reference in the Transaction Documents to the Haewene Brim Recognition of Rights Agreement shall be deemed to be a reference to the document listed at paragraph 28 of
Appendix A to schedule 1. 

B     Credit Agreement  

	1
	Clause 4.2.7(iii) of
the Credit Agreement shall be deleted and replaced with the following: 

"(iii)
All amounts received from BH, by way of on-payment of amounts received by BH from PPC pursuant to the Haewene Brim Topsides Risk Transfer Agreement and/or paragraph 7 of
schedule 5, shall be treated as having been applied against that part of the amounts referred to in the foregoing paragraphs which form part of Haewene Brim Topsides Outstanding Indebtedness
and, in the case of the amounts referred to in clause 4.2.5, in or towards payment of the Haewene Brim Topsides Credit and that proportion of any amount prepaid pursuant to clause 2.8.1,
clause 2.8.4 or clause 2.8.8 which the amount of the Haewene Brim Topsides Credit at the time of prepayment bears to the amount of the Credit (other than L/C Undrawn Advances, if any) at
that time and any amount prepaid pursuant to clause 2.8.2 or clause 2.8.5 as a result of any disposal of the Haewene Brim Topsides, a Total Loss in relation to the Haewene Brim Topsides
or, as the case may be, the expiration or other termination of the Payment Documents in relation to the Haewene Brim Topsides shall be treated as having been applied in or towards repayment of the
Haewene Brim Topsides Credit." 

	2
	With
effect from the Ranberger Release Time, clause 4.5.3 of the Credit Agreement shall be deleted in its entirety and the heading of clause 4.5 of the Credit Agreement
shall be amended accordingly.

	3
	With
effect from the Ranberger Release Time, part (iii) of the proviso to clause 21.4 of the Credit Agreement shall be deleted in its entirety.

	4
	Clause 22.9
of the Credit Agreement shall be deleted and replaced with the following:

	5
	"22.9
Each of BH and PPC hereby authorises the Facility Agent (to the exclusion of BH and PPC) to make any calculation pursuant to paragraph 7 of schedule 5." 

C     Deed of Proceeds and Priorities  

	1
	With
effect from the Ranberger Release Time, in clause 11.2.5 of the Deed of Proceeds and Priorities, the words "and the Ranberger Liabilities at that time" and the words "and
Ranberger" (in each place in which those words appear) and the words "and the amount of the Ranberger Liabilities at that time" shall each be deleted. 

17

 

D     PPC Account Charge  

	1
	Part (ii)
of clause 7.2 of the PPC Account Charge shall be deleted and replaced with the following: 

"(ii)
By transfer to the BH Assigned Account, the amount or amounts then due and payable by the Pledgor under and pursuant to the Haewene Brim Topsides Risk Transfer Agreement and/or the Haewene Brim
Topsides Deed of Consent (or, if less, the balance of the Account Receivables at that time in relation to the Account)," 

	2
	The
penultimate paragraph of clause 7.2 of the PPC Account Charge shall be deleted and replaced with the following: 

"The
Pledgor covenants to the Pledgee that it will pay to the BH Assigned Account all amounts payable by it to BH under and pursuant to the Haewene Brim Topsides Risk Transfer Agreement and/or the
Haewene Brim Topsides Deed of Consent." 

E     Protocol Agreement  

	1
	In
clause 11.4 of the document listed at paragraph 25 of Appendix A to schedule 1 (the Protocol Agreement), the words from "WFW Legal....." to and including
"London EC2A 2HB" shall be deleted and replaced with "Norose Notices Limited at the address of its registered office for the time being (presently of Kempson House, Camomile Street, London EC3A 7AN,
England) (marked for the attention of the Director of Administration, reference AJBD/AA51820)".

	2
	In
clause 11.5 of the document listed at paragraph 25 of Appendix A to schedule 1 (the Protocol Agreement), the words from "WFW Legal....." to and including
"London EC2A 2HB" shall be deleted and replaced with "Norose Notices Limited at the address of its registered office for the time being (presently of Kempson House, Camomile Street, London EC3A 7AN,
England) (marked for the attention of the Director of Administration, reference AJBD/AA51820)". 

F      Standby Put Option Deed  

        The document listed at paragraph 20 of Appendix A to schedule 1 (the Standby Put Option Deed) shall be amended as follows: 

	1
	In
clause 2.1, the words "and, to the extent applicable, any Equipment Rights" shall be inserted after the words "the Haewene Brim Equipment".

	2
	In
clause 2.3, the words "and, to the extent applicable, the Equipment Rights" shall be inserted after the words "the Haewene Brim Equipment".

	3
	In
clause 1.2, the following definition shall be inserted:

	4
	"Equipment Rights" has the meaning attributed thereto in the Sale Agreement;"

	5
	In
clause 3.1, the words "and, to the extent applicable, any Equipment Rights" shall be inserted after the words "the Haewene Brim Equipment" and the word "(a)" shall be deleted.

	6
	In
clause 3.2.6, the words "and, to the extent applicable, any Equipment Rights, in each case" shall be inserted after the words "the Sale Agreement".

	7
	In
clause 3.2.5, the words "other than Lessor's Liens" shall be inserted at the end.

	8
	In
clause 3.2.7, the words "other than in respect of any breach by the Lessor of the warranty referred to in clause 3.2.6" shall be inserted at the end. 

18

  

 
 

Amendments to the Bleo Holm Topsides Head Lease    
    

	•
	With
effect from the date hereof, the front page shall be amended after the words "and as amended by an Amendment Deed dated 28 January 2002" by inclusion of the
words "and as further amended by a Third Amendment Agreement dated [    •    ] 2003".

	•
	With
effect from the date hereof, the introductory sentence shall be amended by the replacement of the word "and" in line 1 after "1999" with the word "as" and by the
inclusion of the words ", and as further amended by the Third Amendment Agreement dated [    •    ] 2003" after the words "dated 28
January 2002".

	•
	With
effect from the date hereof the Bleo Holm Topsides Head Lease shall be amended in clause 1.1:

	(a)
	by the inclusion, in the correct alphabetical sequence, of the following new definitions: 

"BHB" means Bluewater (Haewene Brim) N.V., a company incorporated under the laws of the Netherlands Antilles, with company number 88020, having its
legal seat in Curaçao, whose registered office is at Landhuis Joochi, Kaya Richard J. Beaujon z/n, Curaçao, the Netherlands Antilles; 

"DPP Supplemental Deeds" means together (i) the deed supplemental to the Deed of Proceeds and Priorities dated [ ] and
made between the Haewene Brim Standby Purchaser and the General Security Trustee and (ii) the deed supplemental to the Deed of Proceeds and Priorities dated on or about the date hereof and made
between BHB (in its capacity as the Lessor's agent) and the General Security Trustee; 

"Haewene Brim" means the floating production storage and offloading facility "Haewene Brim" registered at the Port of Registry under official number
2001-C-1696 comprising of the Haewene Brim Hull and the Haewene Brim Equipment, to the extent attached to the Haewene Brim Hull from time to time; 

"Haewene Brim Equipment" shall have the meaning attributed to the term "Haewene Brim Equipment" in the Haewene Brim Lease; 

"Haewene Brim Hull" means the tanker "Haewene Brim" (ex "Berge Hugin") purchased by BHB from Navion Hugin AS and Bergesen d.y. Hugin Shipping AS and
registered in the name of BHB under the laws and flag of the Flag State but, for the avoidance of doubt, excluding the Haewene Brim Equipment; 

"Haewene Brim Lease" means the lease in relation to the Haewene Brim Equipment dated 8 April 2003 and made between the Lessor, PPC, and Bluewater
Energy; 

"Haewene Brim Lease Documents" shall have the meaning attributed to the term "Lease Documents" in the Haewene Brim Lease; 

"Haewene Brim Standby Lease Agreement" shall have the meaning attributed to the term "Standby Lease Agreement" in the Haewene Brim Lease; 

"Haewene Brim Standby Purchaser" means Ola Dunk II Foundation, a stichting formed in the Netherlands Antilles with foundations registry number 4464
whose registered office is at Landhuis Joochi, Kaya Richard J. Beaujon z/n, Curaçao, the Netherlands Antilles; 

"Haewene Brim Transaction Documents" shall have the meaning attributed to the term "Transaction Documents" in the Haewene Brim Lease; 

19

 

"PPC" means Pierce Production Company Limited a company incorporated under the laws of England and Wales with company registration number 3492253 whose
registered office is at 400 Capability Green, Luton, Bedfordshire, LU1 3L, England; 

"Second Amendment Agreement" means the amendment agreement dated 21 February 2003 and made between the parties to the Amendment Agreement
pursuant to which, inter alia, the Credit Agreement, the Glas Dowr Head Lease and the Guarantee were amended; 

"Third Amendment Agreement" means the deed of amendment and consent entered into or, as the context may require, to be entered into between the parties
to the Deed of Proceeds and Priorities pursuant to which, inter alia, the parties to the Deed of Proceeds and Priorities consented to the entering into of the Haewene Brim Lease Documents and the
Other Leases and certain of the Other Lease Documents were or, as the context may require, are to be amended to reflect the entering into of the Haewene Brim Lease; 

	(b)
	by
the deletion of the definition of "Bluewater Group" and the replacement thereof by the following definition: 

"Bluewater Group" shall have the meaning attributed to that clause in the Haewene Brim Lease; 

and
all references in the Bleo Holm Topsides Head Lease to the "Bluewater Group" shall, with effect from the date of this Deed, be deemed to be references to the Bluewater Group as defined above; 

	(c)
	in
the definition of "Credit Agreement" by the inclusion of the words "as amended by the Credit Agreement Supplemental Agreement dated
[    •    ] and made between the Bluewater Agent and the Facility Agent" after the words "The Bluewater Agent";

	(d)
	in
the definition of "Deed of Proceeds and Priorities", by the inclusion of the words ", as amended and supplemented by the DPP Supplemental Deeds" after the words "as security
trustee account bank" in the last line;

	(e)
	in
the definition of "Deposit Bank", by the replacement of the words "Lloyds Bank Plc" with the words "Lloyds TSB Bank plc";

	(f)
	in
the definition of "First Deposit Deed" by the inclusion of the words "as amended by the Third Amendment Agreement" in the third line after the words "in relation to the First
Account";

	(g)
	in
the definition of "Glas Dowr Head Lease" by the inclusion of the words "and as further amended by the Second Amendment Agreement and by the Third Amendment Agreement" in the last
line after the words "28 January 2002";

	(h)
	by
the deletion of the definition of "Holding Account" and the replacement thereof by the following definition: 

"Holding Account" means the account number 0753977, sort code 30-00-02 entitled "Bluewater Energy N.V. Uisge Gorm/Glas Dowr/Bleo
Holm/Haewene Brim Account" opened or to be opened by Bluewater Energy with the Deposit Bank, the operation of which is to be governed by the Holding Account Deed; 

and
all references in the Bleo Holm Topsides Head Lease to the "Holding Account" shall, with effect from the date of this Deed, be deemed to be references to the "Holding Account" defined above; 

20

 

	(i)
	by
the deletion of the definition of "Holding Account Deed" and the replacement thereof by the following definition: 

"Holding Account Deed" means the holding account agreement and deed of assignment and charge entered into or, as the context may require, to be entered
into on or about the date of the Haewene Brim Lease between Bluewater Energy, the Lessor and the Deposit Bank in relation to the Holding Account; 

all
references in the Bleo Holm Topsides Head Lease to the "Holding Account Deed" shall, with effect from the date of this Deed, be deemed to be reference to the "Holding Account Deed" defined above; 

	(j)
	in
the definition of "Other Equipment" by the deletion of the word "and" and the replacement thereof by a "," and the inclusion of the words "and the Haewene Brim Equipment" after the
words "Glas Dowr";

	(k)
	by
the deletion of the definition "Other Lease Documents" and the replacement thereof by the following definition: 

"Other Lease Documents" means together the Uisge Gorm Charter Documents, the Glas Dowr Charter Documents and the Haewene Brim Lease Documents; 

all
references in the Bleo Holm Topsides Head Lease to the "Other Lease Documents" shall, with effect from the date of this Deed, be deemed to be references to "Other Lease Documents" as defined
above; 

	(l)
	by
the deletion of the definition of "Other Lease" and the replacement thereof by the following definition: 

"Other Lease" means the Uisge Gorm Head Lease, the Glas Dowr Head Lease and the Haewene Brim Lease; 

all
references in the Bleo Holm Topsides Head Lease to the "Other Lease" shall, with effect from the date of this Deed, be deemed to be references to "Other Lease" as defined above; 

	(m)
	by
the definition of "Reference Banks" and the replacement thereof by the following definition: 

"Reference Banks" means the principal London offices of each of National Westminster Bank plc, Lloyds TSB Bank plc (formerly known as Lloyds Bank Plc),
Barclays Bank PLC and HSBC Holdings plc (formerly known as Midland Bank PLC); 

all
references in the Bleo Holm Lease to the "Reference Banks" shall, with effect from the date of this Deed, deemed references to the "Reference Banks" defined above; 

	(n)
	in
the definition of "Second Deposit Deed" by in inclusion of the words "as amended by the Third Amendment Agreement" in the third line after the words "in relation to the Second
Account"; and

	(o)
	in
the definition of "Uisge Gorm Head Lease" by the inclusion of the words "and as further amended by the Third Amendment Agreement" in the last line after the words "28
January 2002". 

21

 

	•
	Amendments to the First Deposit Deed

With
effect from the date hereof the First Deposit Deed shall be amended in clause 1.2: 

	(a)
	in
the definition of "Head Lease" by the inclusion of the words "as amended by the Third Amendment Agreement dated [    •    ]
2003" after the words "Lessor to BML" in the last line;

	(b)
	by
the deletion of the definition of "Holding Account" and the replacement thereof by the following definition: 

"Holding Account" means the account number 0753977, sort code 30-00-02 entitled "Bluewater Energy N.V. Uisge Gorm/Glas Dowr/Bleo
Holm/Haewene Brim Account" opened or to be opened by Bluewater Energy with the Deposit Bank, the operation of which is to be governed by the Holding Account Deed; 

and
all references in the First Deposit Deed to the "Holding Account" shall, with effect from the date of this Deed, be deemed to be references to the "Holding Account" defined above; 

	(c)
	by
the deletion of the definition of "Holding Account Deed" and the replacement thereof by the following definition: 

"Holding Account Deed" means the holding account agreement and deed of assignment and charge entered into or, as the context may require, to be entered
into on or about the date of the Haewene Brim Lease between Bluewater Energy, the Lessor and the Deposit Bank in relation to the Holding Account; 

all
references in the First Deposit Deed to the "Holding Account Deed" shall, with effect from the date of this Deed, be deemed to be reference to the "Holding Account Deed" defined above; and 

	(d)
	by
the deletion of the definition of "Other Lease" the replacement thereof by the following definition; 

"Other Lease" means each of (i) the head lease in relation to the floating production storage and offloading facility "Uisge Gorm" dated 14
December 1994 and made between the Lessor and Refugio B.V., as the same has been amended and/or restated from time to time, (ii) the head lease in relation to the floating production
storage and offloading facility "Glas Dowr" dated 8 August 1996 and made between the Lessor and Ludludia Asset Finance B.V., as the same has been amended and/or restated from time to time, and,
(iii) the lease in relation to the topsides processing plant for the floating production storage and offloading facility "Haewene Brim" dated 8 April 2003 and made between the Lessor,
Pierce Production Company Limited and Bluewater Energy N.V, as the same has been amended and/or restated from time to time, and "Other Leases" means
collectively (i), (ii) and (iii) above. 

all
references in the First Deposit Deed to the "Other Lease" shall, with effect from the date of this Deed, be deemed to be references to the "Other Lease" defined above. 

	•
	Amendments to the Second Deposit Deed

With
effect from the date hereof the Second Deposit Deed shall be amended in clause 1.2: 

	(a)
	in
the definition of "Head Lease" by the inclusion of the words "as amended by the Third Amendment Agreement dated [    •    ]
2003" after the words "Lessor to BML" in the last line; 

22

 

	(b)
	by
the deletion of the definition of "Holding Account" and the replacement thereof by the following definition: 

"Holding Account" means the account number 0753977, sort code 30-00-02 entitled "Bluewater Energy N.V. Uisge Gorm/Glas Dowr/Bleo
Holm/Haewene Brim Account" opened or to be opened by Bluewater Energy with the Deposit Bank, the operation of which is to be governed by the Holding Account Deed; 

and
all references in the Second Deposit Deed to the "Holding Account" shall, with effect from the date of this Deed, be deemed to be references to the "Holding Account" defined above; 

	(c)
	by
the deletion of the definition of "Holding Account Deed" and the replacement thereof by the following definition: 

"Holding Account Deed" means the holding account agreement and deed of assignment and charge entered into or, as the context may require, to be entered
into on or about the date of the Haewene Brim Lease between Bluewater Energy, the Lessor and the Deposit Bank in relation to the Holding Account; 

all
references in the Second Deposit Deed to the "Holding Account Deed" shall, with effect from the date of this Deed, be deemed to be reference to the "Holding Account Deed" defined above; and 

	(d)
	by
the deletion of the definition of "Other Lease" the replacement thereof by the following definition; 

"Other Lease" means each of (i) the head lease in relation to the floating production storage and offloading facility "Uisge Gorm" dated 14
December 1994 and made between the Lessor and Refugio B.V., as the same has been amended and/or restated from time to time, (ii) the head lease in relation to the floating production
storage and offloading facility "Glas Dowr" dated 8 August 1996 and made between the Lessor and Ludludia Asset Finance B.V., as the same has been amended and/or restated from time to time, and,
(iii) the lease in relation to the topsides processing plant for the floating production storage and offloading facility "Haewene Brim" dated 8 April 2003 and made between the Lessor,
Pierce Production Company Limited and Bluewater Energy N.V, as the same has been amended and/or restated from time to time, and "Other Leases" means
collectively (i), (ii) and (iii) above. 

all
references in the Second Deposit Deed to the "Other Lease" shall, with effect from the date of this Deed, be deemed to be references to the "Other Lease" defined above. 

23

 

 
 

Amendments to the Glas Dowr Head Lease    
    

	•
	With
effect from the date hereof, the front page shall be amended by the inclusion of the words "and as further amended by a Third Deed of Amendment dated
[    •    ] 2003" after the words "dated 28 January 2002" in the last line.

	•
	With
effect from the date hereof, the introductory sentence shall be amended by the replacement of the words "and" in line 1 after the words "27 April, 1998" with a ",", and
further by the inclusion of the words, "and as further amended by a Third Amendment Agreement dated [    •    ] 2003" after the words "dated 28
January 2002".

	•
	With
effect from the date hereof the Glas Dowr Head Lease shall be amended in clause 1.2:

	(a)
	By
the inclusion, in the correct alphabetical sequence, of the following new definitions; 

"BHB" means Bluewater (Haewene Brim) N.V., a company incorporated under the laws of the Netherlands Antilles, with company number 88020, having its
legal seat in Curaçao, whose registered office is at Landhuis Joochi, Kaya Richard J. Beaujon z/n, Curaçao, the Netherlands Antilles; 

"DPP Supplemental Deeds" means together (i) the deed supplemental to the Deed of Proceeds and Priorities dated [ ] and
made between the Haewene Brim Standby Purchaser and the General Security Trustee and (ii) the deed supplemental to the Deed of Proceeds and Priorities dated [ ] and made
between BHB (in its capacity as the Lessor's agent) and the General Security Trustee; 

"Haewene Brim" means the floating production storage and offloading facility "Haewene Brim" registered at the Port of Registry under official number
2001-C-1696 comprising of the Haewene Brim Hull and the Haewene Brim Equipment, to the extent attached to the Haewene Brim Hull from time to time; 

"Haewene Brim Equipment" shall have the meaning attributed to the term "Haewene Brim Equipment" in the Haewene Brim Lease; 

"Haewene Brim Hull" means the tanker "Haewene Brim" (ex "Berge Hugin") purchased by BHB from Navion Hugin AS and Bergesen d.y. Hugin Shipping AS and
registered in the name of BHB under the laws and flag of the Flag State but, for the avoidance of doubt, excluding the Haewene Brim Equipment; 

"Haewene Brim Lease" means the lease in relation to the Haewene Brim Equipment dated 8 April, 2003 and made between the Lessor, PPC, and Bluewater
Energy; 

"Haewene Brim Lease Documents" shall have the meaning attributed to the term "Lease Documents" in the Haewene Brim Lease; 

"Haewene Brim Standby Lease Agreement" shall have the meaning attributed to the term "Standby Lease Agreement" in the Haewene Brim Lease; 

"Haewene Brim Standby Purchaser" means Ola Dunk II Foundation, a stichting formed in the Netherlands Antilles with foundations registry number 4464
whose registered office is at Landhuis Joochi, Kaya Richard J. Beaujon z/n, Curaçao, the Netherlands Antilles; 

"Haewene Brim Transaction Documents" shall have the meaning attributed to the term "Transaction Documents" in the Haewene Brim Lease; 

"PPC" means Pierce Production Company Limited a company incorporated under the laws of England and Wales with company registration number 3492253 whose
registered office is at 400 Capability Green, Luton, Bedfordshire, LU1 3L, England; 

24

 

"Second Amendment Agreement" means the amendment agreement dated 21 February 2003 and made between the parties to the Amendment Agreement
pursuant to which, inter alia, the Credit Agreement, the Glas Dowr Head Lease and the Guarantee were amended; 

"Third Amendment Agreement" means the deed of amendment and consent entered into or, as the context may require, to be entered into between the parties
to the Deed of Proceeds and Priorities pursuant to which, inter alia, the parties to the Deed of Proceeds and Priorities consented to the entering into of the Haewene Brim Lease Documents and the
Other Leases and certain of the Other Lease Documents were or, as the context may require, are to be amended to reflect the entering into of the Haewene Brim Lease; 

	(b)
	in
the definition of "Bleo Holm Topsides Head Lease" by the inclusion of the words "as amended by the Third Amendment Agreement" in the last line after the words "conditions therein
contained";

	(c)
	by
the deletion of the definition of "Bluewater Group" and the replacement thereof by the following definition: 

"Bluewater Group" shall have the meaning attributed to that clause in the Haewene Brim Lease; 

and
all references in the Glas Dowr Head Lease to the "Bluewater Group" shall, with effect from the date of this Deed, be deemed to be references to the Bluewater Group as defined above; 

	(d)
	in
the definition of "Credit Agreement" by the inclusion of the words "as amended by the Credit Agreement Supplemental Agreement dated
[    •    ] and made between the Bluewater Agent and the Facility Agent" after the words "The Bluewater Agent";

	(e)
	in
the definition of "Deed of Proceeds and Priorities", by the inclusion of the words ", as amended and supplemented by the DPP Supplemental Deeds" after the words "as security
trustee account bank" in the last line;

	(f)
	in
the definition of "Deposit Bank", by the replacement of the words "Lloyds Bank Plc" with the words "Lloyds TSB Bank plc";

	(g)
	in
the definition of "First Deposit Deed" by the inclusion of the words "as amended by the Third Amendment Agreement" in the last line after the words "Deed of Amendment and
Restatement";

	(h)
	by
the deletion of the definition of "Holding Account" and the replacement thereof by the following definition: 

"Holding Account" means the account number 0753977, sort code 30-00-02 entitled "Bluewater Energy N.V. Uisge Gorm/Glas Dowr/Bleo
Holm/Haewene Brim Account" opened or to be opened by Bluewater Energy with the Deposit Bank, the operation of which is to be governed by the Holding Account Deed; 

and
all references in the Glas Dowr Head Lease to the Holding Account shall, with effect from the date of this Deed, be deemed to be references to the Holding Account defined above; 

25

 

	(i)
	by
the deletion of the definition of "Holding Account Deed" and the replacement thereof by the following definition: 

"Holding Account Deed" means the holding account agreement and deed of assignment and charge entered into or, as the context may require, to be entered
into on or about the date of the Haewene Brim Lease between Bluewater Energy, the Lessor and the Deposit Bank in relation to the Holding Account; 

all
references in the Glas Dowr Head Lease to the "Holding Account Deed" shall, with effect from the date of this Deed, be deemed to be reference to the Holding Account Deed defined above; 

	(j)
	by
the deletion of the definition "Other Charter Documents" and the replacement thereof by the following definition: 

"Other Charter Documents" means together the Uisge Gorm Charter Documents, the Bleo Holm Lease Documents and the Haewene Brim Lease Documents; 

all
references in the Glas Dowr Head Lease to the "Other Charter Documents" shall, with effect from the date of this Deed, be deemed to be references to "Other Charter Documents" as defined above; 

	(k)
	by
the deletion of the definition of "Other Lease" and the replacement thereof by the following definition: 

"Other Lease" means the Uisge Gorm Head Lease, the Bleo Holm Topsides Head Lease and the Haewene Brim Lease; 

and
all references in the Glas Dowr Head Lease to the "Other Lease" shall, with effect from the date of this Deed, be deemed to be references to "Other Lease" as defined above; 

	(l)
	by
the deletion of the definition of "Reference Banks" and the replacement thereof by the following definition: 

"Reference Banks" means the principal London offices of each of National Westminster Bank plc, Lloyds TSB Bank plc (formerly known as Lloyds Bank Plc),
Barclays Bank PLC and HSBC Holdings plc (formerly known as Midland Bank PLC); 

all
references in the Glas Dowr Lease to the "Reference Banks" shall, with effect from the date of this Deed, deemed references to the "Reference Banks" defined above; 

	(m)
	in
the definition of "Second Deposit Deed" by in inclusion of the words "as further amended by the Third Amendment Agreement" in the last line after the words "Deed of Amendment"; and

	(n)
	in
the definition of "Uisge Gorm Head Lease" by the inclusion of the words "and as further amended by the Third Amendment Agreement" in the last line after the words "28
January 2002"; 

    •     Amendments to the First Deposit Deed

        With
effect from the date hereof the First Deposit Deed shall be amended in clause 1.2: 

	(a)
	in
the definition of "Head Lease" by the inclusion of the words "and, as amended by the Third Amendment Agreement dated
[    •    ] 2003" after the words "Deed of Amendment and Restatement" in the last line; 

26

 

	(b)
	by
the deletion of the definition of "Holding Account" and the replacement thereof by the following definition: 

"Holding Account" means the account number 0753977, sort code 30-00-02 entitled "Bluewater Energy N.V. Uisge Gorm/Glas Dowr/Bleo
Holm/Haewene Brim Account" opened or to be opened by Bluewater Energy with the Deposit Bank, the operation of which is to be governed by the Holding Account Deed; 

and
all references in the First Deposit Deed to the "Holding Account" shall, with effect from the date of this Deed, be deemed to be references to the "Holding Account" defined above; 

	(c)
	by
the deletion of the definition of "Holding Account Deed" and the replacement thereof by the following definition: 

"Holding Account Deed" means the holding account agreement and deed of assignment and charge entered into or, as the context may require, to be entered
into on or about the date of the Haewene Brim Lease between Bluewater Energy, the Lessor and the Deposit Bank in relation to the Holding Account; 

all
references in the First Deposit Deed to the "Holding Account Deed" shall, with effect from the date of this Deed, be deemed to be reference to the "Holding Account Deed" defined above; and 

	(d)
	by
the deletion of the definition of "Other Lease" the replacement thereof by the following definition; 

"Other Lease" means each of (i) the head lease in relation to the floating production storage and offloading facility "Uisge Gorm" dated 14
December 1994 and made between the Lessor and Refugio B.V., as the same has been amended and/or restated from time to time, (ii) the head lease in relation to the floating production
storage and offloading facility "Bleo Holm" dated 29 January 1999 and made between the Lessor, Bluewater Malta Limited and Bluewater Energy, as the same has been amended and/or restated from
time to time, and, (iii) the lease in relation to the topsides processing plant for the floating production storage and offloading facility "Haewene Brim" dated 8 April 2003 and made
between the Lessor, Pierce Production Company Limited and Bluewater Energy N.V, as the same has been amended and/or restated from time to time, and "Other
Leases" means collectively (i), (ii) and (iii) above. 

all
references in the First Deposit Deed to the "Other Lease" shall, with effect from the date of this Deed, be deemed to be references to the "Other Lease" defined above. 

	•
	Amendments to the Second Deposit Deed

With
effect from the date hereof the Second Deposit Deed shall be amended in clause 1.2: 

	(a)
	in
the definition of "Head Lease" by the inclusion of the words "and, as amended by the Third Amendment Agreement dated
[    •    ] 2003" after the words "Deed of Amendment and Restatement" in the last line;

	(b)
	by
the deletion of the definition of "Holding Account" and the replacement thereof by the following definition: 

"Holding Account" means the account number 0753977, sort code 30-00-02 entitled "Bluewater Energy N.V. Uisge Gorm/Glas Dowr/Bleo
Holm/Haewene Brim Account" opened or to be opened by Bluewater Energy with the Deposit Bank, the operation of which is to be governed by the Holding Account Deed; 

27

 

and
all references in the Second Deposit Deed to the "Holding Account" shall, with effect from the date of this Deed, be deemed to be references to the "Holding Account" defined above; 

	(c)
	by
the deletion of the definition of "Holding Account Deed" and the replacement thereof by the following definition: 

"Holding Account Deed" means the holding account agreement and deed of assignment and charge entered into or, as the context may require, to be entered
into on or about the date of the Haewene Brim Lease between Bluewater Energy, the Lessor and the Deposit Bank in relation to the Holding Account; 

all
references in the Second Deposit Deed to the "Holding Account Deed" shall, with effect from the date of this Deed, be deemed to be reference to the "Holding Account Deed" defined above; and 

	(d)
	by
the deletion of the definition of "Other Lease" the replacement thereof by the following definition; 

"Other Lease" means each of (i) the head lease in relation to the floating production storage and offloading facility "Uisge Gorm" dated 14
December 1994 and made between the Lessor and Refugio B.V., as the same has been amended and/or restated from time to time, (ii) the head lease in relation to the floating production
storage and offloading facility "Bleo Holm" dated 29 January 1999 and made between the Lessor, Bluewater Malta Limited and Bluewater Energy, as the same has been amended and/or restated from
time to time, and, (iii) the lease in relation to the topsides processing plant for the floating production storage and offloading facility "Haewene Brim" dated 8 April 2003 and made
between the Lessor, Pierce Production Company Limited and Bluewater Energy N.V, as the same has been amended and/or restated from time to time, and "Other
Leases" means collectively (i), (ii) and (iii) above. 

all
references in the Second Deposit Deed to the "Other Lease" shall, with effect from the date of this Deed, be deemed to be references to the "Other Lease" defined above. 

28

  

 
 

Amendments to the Uisge Gorm Head Lease    
    

	•
	With
effect from the date hereof, the front page shall be amended after the words "and as amended by an Amendment Deed dated 28 January 2002" by inclusion of the
words "and as further amended by the Third Amendment Agreement dated [    •    ] 2003".

	•
	With
effect from the date hereof, the introductory sentence shall be amended by the inclusion of the words ", and as further amended by the Third Amendment Agreement dated
[    •    ] 2003" after the words "dated 28 January 2002" in the last line.

	•
	With
effect from the date hereof the Uisge Gorm Head Lease shall be amended in clause 1.2:

	(a)
	by
the inclusion, in the correct alphabetical sequence, of the following new definitions: 

"BHB" means Bluewater (Haewene Brim) N.V., a company incorporated under the laws of the Netherlands Antilles, with company number 88020, having its
legal seat in Curaçao, whose registered office is at Landhuis Joochi, Kaya Richard J. Beaujon z/n, Curaçao, the Netherlands Antilles; 

"DPP Supplemental Deeds" means together (i) the deed supplemental to the Deed of Proceeds and Priorities dated
[                        ] and made between the Haewene Brim Standby Purchaser and the General Security Trustee and (ii) the
deed supplemental to the Deed of Proceeds and
Priorities dated [                        ] and made between BHB (in its capacity as the Lessor's agent) and the General Security
Trustee; 

"Haewene Brim" means the floating production storage and offloading facility "Haewene Brim" registered at the Port of Registry under official number
2001-C-1696 comprising of the Haewene Brim Hull and the Haewene Brim Equipment, to the extent attached to the Haewene Brim Hull from time to time; 

"Haewene Brim Equipment" shall have the meaning attributed to the term "Haewene Brim Equipment" in the Haewene Brim Lease; 

"Haewene Brim Hull" means the tanker "Haewene Brim" (ex "Berge Hugin") purchased by BHB from Navion Hugin AS and Bergesen d.y. Hugin Shipping AS and
registered in the name of BHB under the laws and flag of the Flag State but, for the avoidance of doubt, excluding the Haewene Brim Equipment; 

"Haewene Brim Lease" means the lease in relation to the Haewene Brim Equipment dated    8 April 2003 and made between the Lessor,
PPC, and Bluewater Energy; 

"Haewene Brim Lease Documents" shall have the meaning attributed to the term "Lease Documents" in the Haewene Brim Lease; 

"Haewene Brim Standby Lease Agreement" shall have the meaning attributed to the term "Standby Lease Agreement" in the Haewene Brim Lease; 

"Haewene Brim Standby Purchaser" means Ola Dunk II Foundation, a stichting formed in the Netherlands Antilles with foundations registry number 4464
whose registered office is at Landhuis Joochi, Kaya Richard J. Beaujon z/n, Curaçao, the Netherlands Antilles; 

"Haewene Brim Transaction Documents" shall have the meaning attributed to the term "Transaction Documents" in the Haewene Brim Lease; 

"PPC" means Pierce Production Company Limited a company incorporated under the laws of England and Wales with company registration number 3492253 whose
registered office is at 400 Capability Green, Luton, Bedfordshire, LU1 3L, England; 

29

 

"Second Amendment Agreement" means the amendment agreement dated 21 February 2003 and made between the parties to the Amendment Agreement
pursuant to which, inter alia, the Credit Agreement, the Glas Dowr Head Lease and the Guarantee were amended; 

"Third Amendment Agreement" means the deed of amendment and consent entered into or, as the context may require, to be entered into between the parties
to the Deed of Proceeds and Priorities pursuant to which, inter alia, the parties to the Deed of Proceeds and Priorities consented to the entering into of the Haewene Brim Lease Documents and the
Other Leases and certain of the Other Lease Documents were or, as the context may require, are to be amended to reflect the entering into of the Haewene Brim Lease; 

	(b)
	in
the definition of "Bleo Holm Topsides Head Lease" by the inclusion of the words "as amended by the Amendment Agreement and as further amended by the Third Amendment Agreement" in
the last line after the words "conditions therein contained";

	(c)
	by
the deletion of the definition of "Bluewater Group" and the replacement thereof by the following definition: 

"Bluewater Group" shall have the meaning attributed to that clause in the Haewene Brim Lease; 

and
all references in the Uisge Gorm Head Lease to the "Bluewater Group" shall, with effect from the date of this Deed, be deemed to be references to the Bluewater Group as defined above; 

	(d)
	in
the definition of "Credit Agreement" by the inclusion of the words "as amended and supplemented by the Credit Agreement Supplemental Agreement dated
[    •    ] and made between the Bluewater Agent and the Facility Agent" after the words "The Bluewater Agent";

	(e)
	in
the definition of "Deed of Proceeds and Priorities", by the inclusion of the words ", as amended and supplemented by the DPP Supplemental Deeds" after the words "28
January 2002" in the second line;

	(f)
	in
the definition of "Deposit Bank", by the replacement of the words "Lloyds Bank Plc" with the words "Lloyds TSB Bank plc";

	(g)
	in
the definition of "First Deposit Deed" by the inclusion of the words "as amended by the Third Amendment Agreement" in the last line after the words "Amendment and Restatement";

	(h)
	in
the definition of "Glas Dowr Head Lease" by the inclusion of the words "and as further amended by the Third Amendment Agreement" in the last line after the words "28
January 2002";

	(i)
	by
the deletion of the definition of "Holding Account" and the replacement thereof by the following definition: 

"Holding Account" means the account number 0753977, sort code 30-00-02 entitled "Bluewater Energy N.V. Uisge Gorm/Glas Dowr/Bleo
Holm/Haewene Brim Account" opened or to be opened by Bluewater Energy with the Deposit Bank, the operation of which is to be governed by the Holding Account Deed; 

and
all references in the Uisge Gorm Head Lease to the "Holding Account" shall, with effect from the date of this Deed, be deemed to be references to the "Holding Account" defined above; 

30

 

	(j)
	by
the deletion of the definition of "Holding Account Deed" and the replacement thereof by the following definition: 

"Holding Account Deed" means the holding account agreement and deed of assignment and charge entered into or, as the context may require, to be entered
into on or about the date of the Haewene Brim Lease between Bluewater Energy, the Lessor and the Deposit Bank in relation to the Holding Account; 

all
references in the Uisge Gorm Head Lease to the "Holding Account Deed" shall, with effect from the date of this Deed, be deemed to be reference to the "Holding Account Deed" defined above; 

	(k)
	by
the deletion of the definition "Other Charter Documents" and the replacement thereof by the following definition: 

"Other Charter Documents" means together the Glas Dowr Charter Documents, the Bleo Holm Lease Documents and the Haewene Brim Lease Documents; 

all
references in the Uisge Gorm Head Lease to the "Other Charter Documents" shall, with effect from the date of this Deed, be deemed to be references to "Other Charter Documents" as defined above; 

	(l)
	by
the deletion of the definition of "Other Lease" and the replacement thereof by the following definition: 

"Other Lease" means the Glas Dowr Head Lease, the Glas Dowr Head Lease and the Haewene Brim Lease; 

all
references in the Uisge Gorm Topsides Head Lease to the "Other Lease" shall, with effect from the date of this Deed, be deemed to be references to "Other Lease" as defined above; 

	(m)
	by
the deletion of the definition of "Reference Banks" and the replacement thereof by the following definition: 

"Reference Banks" means the principal London offices of each of National Westminster Bank plc, Lloyds TSB Bank plc (formerly known as Lloyds Bank Plc),
Barclays Bank PLC and HSBC Holdings plc (formerly known as Midland Bank PLC); 

all
references in the Usige Gorm Lease to the "Reference Banks" shall, with effect from the date of this Deed, deemed references to the "Reference Banks" defined above; and 

	(n)
	in
the definition of "Second Deposit Deed" by in inclusion of the words "as amended by the Second Amendment Agreement" in the fourth line after the words "in relation to the Second
Account";

	•
	Amendments to the First Deposit Deed

With
effect from the date hereof the First Deposit Deed shall be amended in clause 1.2: 

	(a)
	in
the definition of "Head Lease" by the inclusion of the words "and, as amended by the Third Amendment Agreement dated
[    •    ] 2003" after the words "Deed of Amendment and Restatement" in the last line; 

31

 

	(b)
	by
the deletion of the definition of "Holding Account" and the replacement thereof by the following definition: 

"Holding Account" means the account number 0753977, sort code 30-00-02 entitled "Bluewater Energy N.V. Uisge Gorm/Glas Dowr/Bleo
Holm/Haewene Brim Account" opened or to be opened by Bluewater Energy with the Deposit Bank, the operation of which is to be governed by the Holding Account Deed; 

and
all references in the First Deposit Deed to the "Holding Account" shall, with effect from the date of this Deed, be deemed to be references to the "Holding Account" defined above; 

	(c)
	by
the deletion of the definition of "Holding Account Deed" and the replacement thereof by the following definition: 

"Holding Account Deed" means the holding account agreement and deed of assignment and charge entered into or, as the context may require, to be entered
into on or about the date of the Haewene Brim Lease between Bluewater Energy, the Lessor and the Deposit Bank in relation to the Holding Account; 

all
references in the First Deposit Deed to the "Holding Account Deed" shall, with effect from the date of this Deed, be deemed to be reference to the "Holding Account Deed" defined above; and 

	(d)
	by
the deletion of the definition of "Other Lease" the replacement thereof by the following definition; 

"Other Lease" means each of (i) the head lease in relation to the floating production storage and offloading facility "Glas Dowr" dated 8
August 1996 and made between the Lessor and Ludludia Asset Finance B.V., as the same has been amended and/or restated from time to time, (ii) the head lease in relation to the floating
production storage and offloading facility "Bleo Holm" dated 29 January 1999 and made between the Lessor, Bluewater Malta Limited and Bluewater Energy, as the same has been amended and/or
restated from time to time, and, (iii) the lease in relation to the topsides processing plant for the floating production storage and offloading facility "Haewene Brim" dated 8
April 2003 and made between the Lessor, Pierce Production Company Limited and Bluewater Energy N.V, as the same has been amended and/or restated from time to time, and
"Other Leases" means collectively (i), (ii) and (iii) above. 

all
references in the First Deposit Deed to the "Other Lease" shall, with effect from the date of this Deed, be deemed to be references to the "Other Lease" defined above. 

	•
	Amendments to the Second Deposit Deed

With
effect from the date hereof the Second Deposit Deed shall be amended in clause 1.2: 

	(a)
	in
the definition of "Head Lease" by the inclusion of the words "and, as amended by the Third Amendment Agreement dated
[    •    ] 2003" after the words "Deed of Amendment and Restatement" in the last line;

	(b)
	by
the deletion of the definition of "Holding Account" and the replacement thereof by the following definition: 

"Holding Account" means the account number 0753977, sort code 30-00-02 entitled "Bluewater Energy N.V. Uisge Gorm/Glas Dowr/Bleo
Holm/Haewene Brim Account" opened or to be opened by Bluewater Energy with the Deposit Bank, the operation of which is to be governed by the Holding Account Deed; 

32

 

and
all references in the Second Deposit Deed to the "Holding Account" shall, with effect from the date of this Deed, be deemed to be references to the "Holding Account" defined above; 

	(c)
	by
the deletion of the definition of "Holding Account Deed" and the replacement thereof by the following definition: 

"Holding Account Deed" means the holding account agreement and deed of assignment and charge entered into or, as the context may require, to be entered
into on or about the date of the Haewene Brim Lease between Bluewater Energy, the Lessor and the Deposit Bank in relation to the Holding Account; 

all
references in the Second Deposit Deed to the "Holding Account Deed" shall, with effect from the date of this Deed, be deemed to be reference to the "Holding Account Deed" defined above; and 

	(d)
	by
the deletion of the definition of "Other Lease" the replacement thereof by the following definition; 

"Other Lease" means each of (i) the head lease in relation to the floating production storage and offloading facility "Glas Dowr" dated 8
August 1996 and made between the Lessor and Ludludia Asset Finance B.V., as the same has been amended and/or restated from time to time, (ii) the head lease in relation to the floating
production storage and offloading facility "Bleo Holm" dated 29 January 1999 and made between the Lessor, Bluewater Malta Limited and Bluewater Energy, as the same has been amended and/or
restated from time to time, and, (iii) the lease in relation to the topsides processing plant for the floating production storage and offloading facility "Haewene Brim" dated 8
April 2003 and made between the Lessor, Pierce Production Company Limited and Bluewater Energy N.V, as the same has been amended and/or restated from time to time, and
"Other Leases" means collectively (i), (ii) and (iii) above. 

all
references in the Second Deposit Deed to the "Other Lease" shall, with effect from the date of this Deed, be deemed to be references to the "Other Lease" defined above. 

33

 

 
 

Schedule 4    
    
    Clarifications    
    

	1
	Neither
LBV nor RBV is a contracting party to the document listed at paragraph 26 of Appendix A to schedule 1 (the Contribution Agreement) and each of LBV and RBV
has signed it only to acknowledge and be aware of the terms of the document agreed between the contracting parties to it, and all relevant provisions of that document shall be construed accordingly.

	2
	It
is agreed and acknowledged that the respective rights and obligations of the parties thereto under the document listed at paragraph 26 of Appendix A to
schedule 1 (the Contribution Agreement) are in all respects subject to the rights of the Beneficiaries and the obligations and liabilities of the Obligors under and pursuant to the Facility
Documents including, without limitation, clauses 4, 5 and 15 of the Deed of Proceeds and Priorities and clause 4.6 of the Facility Guarantee.

	3
	It
is agreed that the reference in the second sentence of clause 12.11.4 of the Additional Head Lease to any amount received by the Lessor shall include any amount received by
PPC as agent for the Lessor.

	4
	For
the avoidance of doubt, it is agreed and acknowledged that references in clauses 12.8, 12.9, 12.10, 12.11 and 12.12 of the Additional Head Lease and elsewhere in the Additional Head
Lease to additional equipment shall in no circumstances include the Haewene Brim Vessel or any part thereof. 

34

 
 
 

Schedule 5    
    
    Supplementary Provisions    
    

LBV and RBV  

	1
	Each
obligation and liability of LBV to the Lessor under or pursuant to the Topsides Documents to which LBV is, or is to be, a party shall be deemed to be a Residual Obligation as
defined in and for the purposes of the Glas Dowr BOPS Assumption Deed, including, in particular, clauses 2 and 3 thereof which shall apply mutatis mutandis to those Topsides Documents. Each of BOPS
and Bluewater Energy hereby expressly acknowledges and agrees to the foregoing.

	2
	Each
obligation and liability of RBV to the Lessor under or pursuant to the Topsides Documents to which RBV is, or is to be, a party shall be deemed to be a Residual Obligation as
defined in and for the purposes of the Uisge Gorm BOPS Assumption Deed, including in particular, clauses 2 and 3 thereof which shall apply mutatis mutandis to those Topsides Documents. Each of BOPS
and Bluewater Energy hereby expressly acknowledges and agrees to the foregoing.

	3
	It
is agreed that, notwithstanding anything in the Topsides Documents to the contrary, and without prejudice to paragraphs 1 and 2 above, the provisions of clause 27 of the Deed
of Proceeds and Priorities shall apply to all monies, obligations and liabilities which are to be paid, repaid, performed, satisfied or discharged by LBV and/or RBV under or pursuant to the Topsides
Documents (or any of them) as if all references therein to the Beneficiaries (or any of them) included a reference to each of the other parties to the Topsides Documents. In addition, by way of
supplement to clause 27.5 of the Deed of Proceeds and Priorities, notwithstanding anything to the contrary in the Topsides Documents, neither LBV nor RBV shall be obliged or liable to pay any
amount or incur any cost or other Loss under or pursuant to any of the Topsides Documents unless and until it has first been indemnified in full against the relevant amount, cost and/or Loss (as the
case may be). 

Sale Agreement  

	4
	The
Lessor expressly agrees and acknowledges for the benefit of the Credit Beneficiaries that the obligations of the Lessor under the clauses listed in clause 14 of the document
listed at paragraph 28 of Appendix A to schedule 1 (the Recognition of Rights Deed), and the obligations of the Lessor under that clause 14, shall apply in circumstances
where clause 6.1 of the document listed at paragraph 1 of Appendix A to schedule 1 (the Sale Agreement) applies. 

Confidentiality  

	5
	Notwithstanding
any provision in the Topsides Documents to the contrary, each of the parties hereto agrees that no other party hereto shall be in breach of any confidentiality
undertaking or restriction as a result of the disclosure to the other parties hereto of the Topsides Documents (or any of them). 

35

 

Enterprise documents  

	6
	It
is agreed and acknowledged that the Lessor's obligations under clause 21.6.2 of the Additional Head Lease and the rights of PPC and Bluewater Energy to require the performance
of those obligations (together those obligations and rights being "Clause 21 Rights and Obligations") are in all respects subject to the rights
of the Facility Agent, the Banks and the General Security Trustee under the Haewene Brim Recognition of Rights Agreement, the Deed of Proceeds and Priorities, the Haewene Brim Quiet Enjoyment Letter
and the other Facility Documents (the "Superior Rights") and, accordingly, to the extent that the Lessor, PPC and Bluewater Energy may have agreed in
the Additional Head Lease that any of the Clause 21 Rights and Obligations may or shall be subject to the rights of Enterprise under the Additional Equipment Lessor Enterprise Consent Letter
(the "Enterprise Rights"), or that the Clause 21 Rights and Obligations or the Enterprise Rights shall otherwise be in conflict with the Superior
Rights, then, unless and until all of the Credit Obligations have been paid, repaid, performed, discharged and satisfied in full, the Superior Rights shall prevail and may be exercised, as between the
Lessor, PPC, and Bluewater Energy on the one hand, and the Facility Agent, the Banks and the General Security Trustee on the other hand, as if they were not subject to the Enterprise Rights. 

Risk Transfer Agreement  

	7
	With
respect to the Risk Transfer Agreement, it is agreed and acknowledged as follows:

	(a)
	In
accordance with clauses 4, 5 and 15 of the Deed of Proceeds and Priorities, all rights, title and interest of BH and PPC respectively under and pursuant to the Risk Transfer
Agreement (together "RTA Rights") are subject and subordinate in all respects to the Facility Rights, the Secured Performance Bond Rights, the Hedging
Rights, the LBV Rights, the RBV Rights, the Equipment Lessor Rights and the Lessor Rights, in each case, in relation to the Secured Property in relation to the Haewene Brim Topsides;

	(b)
	Without
prejudice to the generality of paragraph (a) above, it is hereby expressly agreed and acknowledged that the rights of BH under and pursuant to clauses 2.2, 2.4(b) and
2.4(g) of the Risk Transfer Agreement (being part of the RTA Rights) are subject in all respects to the rights of the Beneficiaries under and pursuant to General Assignment, and that all of the RTA
Rights (without limitation) have been assigned absolutely to the General Security Trustee as security trustee for and on behalf of the Beneficiaries pursuant to the General Assignment and comprise
Secured Property;

	(c)
	With
respect to clause 3.1, it is agreed and acknowledged that all payments to be made to BH under the Risk Transfer Agreement shall be made to the BH Assigned Account and to
no other account;

	(d)
	If
during any relevant period (as defined in clause 4.1.1(a)(i) of the Credit Agreement), the aggregate of the amounts paid by PPC to BHB under the Haewene Brim Vessel
Lease and the amounts paid by PPC to BH under the Risk Transfer Agreement as Lessee Payments are less than the amount of all Earnings, other than Non-Restricted Earnings, in relation to
the Haewene Brim Vessel and the Haewene Brim Topsides, PPC shall, in partial satisfactions of its obligations pursuant to the Facility Guarantee, pay to BH on the first Repayment Date to occur after
the end of the relevant period (as so defined) an amount equal to such shortfall. 

36

 

Credit Agreement  

	8
	With
respect to the Credit Agreement, it is agreed and acknowledged as follows:

	(a)
	On
the date on which the Effective Time occurs or is to occur (but, for the avoidance of doubt, not conditional upon the occurrence of the Effective Time), BH shall be entitled to
draw down an additional Advance under the Credit Agreement in the amount of [          ] Dollars ($[          ])  [Please
provide figures] ("BH Advance");

	(b)
	Subject
to the following provisions of this paragraph 8, all of the terms and conditions of the Credit Agreement in relation to an Advance shall apply to the BH Advance;

	(c)
	The
BH Advance shall not be a General Advance and accordingly clause 2.5.3 shall not apply to the BH Advance;

	(d)
	The
notice period required under clause 2.4 for the issue of the Drawdown Notice in respect of the BH Advance shall be reduced from the fourth Banking Day before the proposed
Drawdown Date to the second Banking Day before the proposed Drawdown Date (as specified in the relevant Drawdown Notice);

	(e)
	BH
shall be entitled to apply the proceeds of the BH Advance in making payments under the Topsides Documents;

	(f)
	Simultaneously
with the occurrence of the Effective Time, Ranberger will sell the Haewene Brim Topsides to the Lessor;

	(g)
	Ranberger
is required by the terms of the Transaction Documents to apply the proceeds of that sale ("Proceeds") in payment to the
Equipment Account Bank for application in accordance with clause 11 of the Deed of Proceeds and Priorities;

	(h)
	Ranberger,
with the agreement of the other Borrowers, wishes to apply the whole amount of the Proceeds in prepayment of the Credit;

	(i)
	Notwithtstanding
clause 2.8.8 of the Credit Agreement or any other provision of the Transaction Documents to the contrary, Ranberger shall be entitled to apply the whole amount
of the Proceeds in prepayment of the Credit ("Ranberger Prepayment"), provided only that Ranberger gives notice in accordance with clause 2.8.8
as varied by the following paragraph;

	(j)
	The
notice period required under clause 2.8.8 for the Ranberger Prepayment shall be reduced from five (5) Banking Days to two (2) Banking Days;

	(k)
	The
Ranberger Prepayment shall be applied first in prepayment of the Ranberger Credit as contemplated by clause 4.2.7(iii) and secondly in prepayment of the General
Advances;

	(l)
	Upon
the receipt by the Facility Agent of the Ranberger Prepayment ("Ranberger Release Time"), clause 4.5.3 shall apply and
Ranberger shall be released and discharged from all of its obligations and liabilities under the Facility Documents;

	(m)
	With
effect from the Ranberger Release Time, the BH Advance shall replace the Ranberger Credit and, pursuant to the provisions of schedule 3, shall become the Haewene Brim
Topsides Credit. 

37

 

Additional Equipment Lessor Enterprise Consent Letter  

	9
	With
respect to the Additional Equipment Lessor Enterprise Consent Letter, it is agreed and acknowledged that if the Lessor notifies the Facility Agent or the General Security Trustee
(as applicable) in writing that the Lessor wishes to exercise its rights under paragraph 4(h) thereof, the Facility Agent or the General Security Trustee (as applicable) shall promptly notify
the Banks of that notification, the Banks shall promptly consider whether they agree to the exercise of rights notified to them and shall promptly notify the Facility Agent or the General Security
Trustee (as applicable) whether or not they agree and the Facility Agent or the General Security Trustee (as applicable) shall, within ten (10) Banking Days of the receipt by it of the
notification from the Lessor, notify the Lessor in writing whether the Majority Banks agree to the exercise of rights notified to them. If the Majority Banks do so agree, the Facility Agent or the
General Security Trustee (as applicable) shall promptly notify Enterprise pursuant to paragraph 4(h) of the Additional Equipment Lessor Enterprise Consent Letter. 

Haewene Brim Quiet Enjoyment Letter  

	10
	With
respect to the Haewene Brim Quiet Enjoyment Letter, it is agreed and acknowledged that, notwithstanding anything to the contrary in the Transaction Documents, the obligations of
the Facility Agent, the Banks and the General Security Trustee under the Transaction Documents are in all respects subject to the obligations of the Facility Agent, the Banks and the General Security
Trustee under the Haewene Brim Quiet Enjoyment Letter and, accordingly, to the extent that any such party agrees under the Haewene Brim Quiet Enjoyment Letter to take or not to take any action and the
same would otherwise be in breach of any obligation of such party under the Transaction Documents or otherwise contrary to any agreement of such party under the Transaction Documents, such party shall
not be required or entitled to to take or not to take (as the case may be) the relevant action under the Transaction Documents. 

38

  

 
 

Schedule 6    
    
    The Banks and Financial Institutions    
    

	Bank
 
	 	Address
 
	 	 
	 	 
	 	 

	Fortis Bank (Nederland) N.V.	 	Coolsingel 93	 	 	 	3012 AE Rotterdam	 	The Netherlands
	

Barclays Bank PLC	
 	

5 The North Colonnade	
 	

Canary Wharf	
 	

London E14 4BB	
 	

United Kingdom
	

Swedbank (Foreningssparbanken AB (publ)	
 	

Brunkebergstorh 8	
 	

Shipping H821	
 	

SE-105 34 Stockholm	
 	

Sweden
	

Banque Artesia Nederland N.V.	
 	

Herengracht 539 -543	
 	

PO Box 274	
 	

1000 AG Amsterdam	
 	

The Netherlands
	

ABC International Bank PLC	
 	

Arab Banking Corp. House	
 	

1-5 Moorgate	
 	

London	
 	

United Kingdom
	

Mizuho Corporate Bank Limited	
 	

River Plate House	
 	

7-11 Finsbury Circus	
 	

London EC2M &DH	
 	

United Kingdom
	

Allied Irish Banks PLC	
 	

St Helen's	
 	

1 Unterschaft	
 	

London EC3A 8AB	
 	

United Kingdom
	

Deutshe Schiffsbank AG	
 	

Domshof 17	
 	

 	
 	

D-28195 Bremen	
 	

Germany
	

Schiffshypothekenbank zu Lubeck AG	
 	

Brandstwiete 1	
 	

 	
 	

20457 Hamburg	
 	

Germany
	

Den Norske Bank N.V.	
 	

PO Box 1171-Sentrum	
 	

 	
 	

N-0107 Oslo	
 	

Norway
	

Baryerische Landesbank Girozentrale, London Branch	
 	

Bavaria House	
 	

13-14 Appold Street	
 	

London EC2A 2NB	
 	

United Kingdom
	

NIB Capital Bank N.V.	
 	

Carnegieplein 4	
 	

PO Box 380	
 	

2501 The Hague	
 	

The Netherlands
	

The Royal Bank of Scotland PLC	
 	

5 th Floor	
 	

135 Bishopsgate	
 	

London EC2M 3UR	
 	

United Kingdom
	

ScotiaBank Europe PLC	
 	

33 Finsbury Square	
 	

Scotia House	
 	

London EC2A 1BB	
 	

United Kingdom
	

The Governor & Company of the Bank of Scotland	
 	

4th Floor, New Uberior House	
 	

11 Earl Grey Street	
 	

Edinburgh EH3 9 BN	
 	

United Kingdom
	

Nordea Bank Norge ASA	
 	

Middelthunsgt 17	
 	

PO Box 1166	
 	

N-0107 Oslo	
 	

Norway
	

Landesbank Schleswig-Holstein Gironzentrale	
 	

Martensdamm 6	
 	

 	
 	

D-24103 Kiel	
 	

Germany
	

Nedship Bank N.V.	
 	

Parklaan 2	
 	

PO Box	
 	

3016 BB Rotterdam	
 	

The Netherlands
	

ING Bank N.V.	
 	

Bijlmerplein 888	
 	

Loc. code HE 02.09	
 	

1102 MG Amsterdam	
 	

The Netherlands

39

 

EXECUTION PAGE  

	The Banks	 	 	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	ING BANK N.V.	 	)	 	 
	by PETER VOGIATRIS	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: ANNA BRALY	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	BARCLAYS BANK PLC	 	)	 	 
	by J. HAGARDS	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of:	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	FORTIS BANK (NEDERLAND) N.V.	 	)	 	 
	by D.J. MEULEMEESTER	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: JUULTJE VANDERWIJK	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	LANDESBANK SCHLESWIG-HOLSTEIN	 	)	 	 
	GIROZENTRALE	 	)	 	 
	by LAMBERT ADAMS	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: GUNNAR KORDES	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	NORDEA BANK NORGE ASA	 	)	 	 
	by GUNNAR NEGAARD	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of:	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	THE GOVERNOR & COMPANY OF THE	 	)	 	 
	BANK OF SCOTLAND	 	)	 	 
	by E.M. KINNEY	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: MATTHEW PONTE	 	)	 	 
	 	 	 	 	 

40

 

	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	THE ROYAL BANK OF SCOTLAND PLC	 	)	 	 
	by M.S. REME	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of:	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	BAYERISCHE LANDESBANK GIROZENTRALE,	 	)	 	 
	LONDON BRANCH	 	)	 	 
	by C. PAUFF	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: S. PRESS	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	DEN NORSKE BANK N.V.	 	)	 	 
	by M. KERTZ	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: S. LINFELD	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	NEDSHIP BANK N.V.	 	)	 	 
	by KEES OVERGAAUL	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: EVAN COHEN	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	NIB CAPITAL BANK N.V.	 	)	 	 
	by S.M. HOVERS	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: T.T. VANDERWARF	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	SCOTIABANK EUROPE PLC	 	)	 	 
	by J.G. STARK	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: D. SPARIGES	 	)	 	 
	 	 	 	 	 

41

 

	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	ABC INTERNATIONAL BANK PLC	 	)	 	 
	by D.G. GOLDEN	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of:	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	BANQUE ARTESIA NEDERLAND N.V.	 	)	 	 
	by ERWIN DE KORK	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: H.D.R. FIOSFRANG	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	SCHIFFSHYPOTHEKENBANK ZU LUBECK AG	 	)	 	 
	by	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: STEFAN ALBERTIJN	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	DEUTSCHE SCHIFFSBANK A	 	)	 	 
	by GEERT HECKMANN AND HANS-PETER MARTIN	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: VERONICA KATENKAMP	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	ALLIED IRISH BANKS PLC	 	)	 	 
	by SHARON KELLY	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of:	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	SWEDBANK (FORENINGSSPARBANKEN) AB (PUBL)	 	)	 	 
	by D. BILLSTEN	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of:	 	)	 	 
	 	 	 	 	 

42

 

	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	MIZUHO CORPORATE BANK LIMITED	 	)	 	 
	by P. AROSF	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: M.C. STEVENS	 	)	 	 
	
Arrangers	
 	

 	
 	

 
	
EXECUTED as a DEED and DELIVERED	
 	

)	
 	

 
	for and on behalf of	 	)	 	 
	BARCLAYS BANK PLC	 	)	 	 
	by J. HAGARDS	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of:	 	)	 	 
	
EXECUTED as a DEED and DELIVERED	
 	

)	
 	

 
	for and on behalf of	 	)	 	 
	FORTIS BANK (NEDERLAND) N.V.	 	)	 	 
	by D.J. MEULEMEESTER	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: JUULTJE VANDERWIJK	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	ING BANK N.V.	 	)	 	 
	by PETER VOGIATRIS	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: ANNA BRALY	 	)	 	 
	
The Facility Agent	
 	

 	
 	

 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	ING BANK N.V.	 	)	 	 
	by PETER VOGIATRIS	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: ANNA BRALY	 	)	 	 
	
The General Security Trustee	
 	

 	
 	

 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	BARCLAYS BANK PLC	 	)	 	 
	by J. HAGARDS	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of:	 	)	 	 
	 	 	 	 	 

43

 

	
The Credit Security Trustee	
 	

 	
 	

 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	BARCLAYS BANK PLC	 	)	 	 
	by J. HAGARDS	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of:	 	)	 	 
	
The Facility Security Trustee	
 	

 	
 	

 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	BARCLAYS BANK PLC	 	)	 	 
	by J. HAGARDS	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of:	 	)	 	 
	
The Technical Bank	
 	

 	
 	

 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	BARCLAYS BANK PLC	 	)	 	 
	by J. HAGARDS	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of:	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	BLUEWATER (HAEWENE BRIM) N.V.	 	)	 	 
	by MARK LAWSON	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: ALISON SPRAGUE	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	PIERCE PRODUCTION COMPANY LIMITED	 	)	 	 
	by MARK LAWSON	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: ALISON SPRAGUE	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	BLUEWATER ENERGY N.V.	 	)	 	 
	by MARK LAWSON	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: ALISON SPRAGUE	 	)	 	 
	 	 	 	 	 

44

 

	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	BLUEWATER HOLDING B.V.	 	)	 	 
	by MARK LAWSON	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: ALISON SPRAGUE	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	AURELIA ENERGY N.V.	 	)	 	 
	by MARK LAWSON	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: ALISON SPRAGUE	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	BLUEWATER OFFSHORE PRODUCTION	 	)	 	 
	SYSTEMS LIMITED	 	)	 	 
	by MARK LAWSON	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: ALISON SPRAGUE	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	LULUDIA ASSET FINANCE B.V.	 	)	 	 
	by PETER VOGIATRIS	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: ANNA BRALY	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	REFUGIO B.V.	 	)	 	 
	by PETER VOGIATRIS	 	)	 	 
	its duly authorised attorney-in-fact-	 	)	 	 
	in the presence of: ANNA BRALY	 	)	 	 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	RANBERGER HOLDING N.V.	 	)	 	 
	by ALISON SPRAGUE	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: FEI KWOK	 	)	 	 
	 	 	 	 	 

45

 

	
Bluewater Agent	
 	

 	
 	

 
	
EXECUTED as a DEED	
 	

)	
 	

 
	and DELIVERED	 	)	 	 
	for and on behalf of	 	)	 	 
	BLUEWATER ENERGY SERVICES B.V.	 	)	 	 
	by ALISON SPRAGUE	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: FEI KWOK	 	)	 	 
	
Lessor	
 	

 	
 	

 
	
EXECUTED as a DEED and DELIVERED	
 	

)	
 	

 
	for and on behalf of	 	)	 	 
	HILL SAMUEL LEASING	 	)	 	 
	(NO.4) LIMITED	 	)	 	 
	by A.R. REED	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of:	 	)	 	 
	
Standby Purchasers	
 	

 	
 	

 
	
EXECUTED as a DEED and DELIVERED	
 	

)	
 	

 
	for and on behalf of	 	)	 	 
	ALICE EXPLORATION FOUNDATION	 	)	 	 
	by ALISON SPRAGUE	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: FEI KWOK	 	)	 	 
	
EXECUTED as a DEED and DELIVERED	
 	

)	
 	

 
	for and on behalf of	 	)	 	 
	ARIEL EXPLORATION FOUNDATION	 	)	 	 
	by ALISON SPRAGUE	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: FEI KWOK	 	)	 	 
	
EXECUTED as a DEED and DELIVERED	
 	

)	
 	

 
	for and on behalf of	 	)	 	 
	ASTERIX EXPLORATION FOUNDATION	 	)	 	 
	by ALISON SPRAGUE	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: FEI KWOK	 	)	 	 
	
EXECUTED as a DEED and DELIVERED	
 	

)	
 	

 
	for and on behalf of	 	)	 	 
	OLA DUNK II FOUNDATION	 	)	 	 
	by ALISON SPRAGUE	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: MARK LAWSON	 	)	 	 
	 	 	 	 	 

46

 

	
Equipment Account Bank	
 	

 	
 	

 
	
EXECUTED as a DEED and DELIVERED	
 	

)	
 	

 
	for and on behalf of	 	)	 	 
	ING BANK N.V.	 	)	 	 
	(acting through its Amsterdam Head Office)	 	)	 	 
	by PETER VOGIATRIS	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: ANNA BRALY	 	)	 	 
	
Security Trustee Account Bank	
 	

 	
 	

 
	
EXECUTED as a DEED and DELIVERED	
 	

)	
 	

 
	for and on behalf of	 	)	 	 
	ING BANK N.V.	 	)	 	 
	(acting through its Amsterdam Head Office)	 	)	 	 
	by PETER VOGIATRIS	 	)	 	 
	its duly authorised attorney-in-fact	 	)	 	 
	in the presence of: ANNA BRALY	 	)	 	 

47

QuickLinks

Exhibit 10.57

Schedule 1 Definitions

Appendix A Document List

Schedule 2 Documents and evidence required as conditions precedent (Beneficiaries) (referred to in clause 3)

Schedule 3 Amendments

Amendments to the Bleo Holm Topsides Head Lease

Amendments to the Glas Dowr Head Lease

Amendments to the Uisge Gorm Head Lease

Schedule 4 Clarifications

Schedule 5 Supplementary Provisions

Schedule 6 The Banks and Financial InstitutionsQuickLinks
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Exhibit 10.58    
    

        Confidential material has been redacted and filed separately with the Securities and Exchange Commission.  

                   

                  

                  

                   

                   

                   

 
 

Second Supplementary Agreement    
    
    Relating to    
    
    Contract No 97.22.02    
    
    For the Provision of Production, Storage, Offtake and Transportation Services
  for the Pierce
Field    
    
    between    
    
    Enterprise Oil plc    
    
    And    
    
    Pierce Production Company Limited    

 
 
 

Contents    
    

	Section 1	 	Second Supplementary Agreement relating to Contract No. 97.22.02 for the Provision of Production, Storage, Offtake and Transportation Services for the Pierce Field
	Section 2	 	Attachment 'A' to Second Supplementary Agreement Comprising amended Clauses 1, 2, 9, 11, 12, 14, 47 and Exhibits G & H

2

 

This
Second Supplementary Agreement ("the Agreement") is made this            day of 2003. 

between

        (1)   Enterprise Oil plc, Company No 01682048 having its registered office at 8 York Road, London, SE1 7NA, in its capacity as
Pierce Operator as agent for and on behalf of the Pierce Coventurers ("Enterprise") 

and

        (2)   Pierce Production Company Limited, Company No 3492253, having its registered office at 15 Appold Street, EC2A 2HB London.
("PPC"); 

Enterprise
and PPC hereinafter referred to individually as a "Party" and collectively as the "Parties". 

Whereas:

	(A)
	The
Parties entered into a Settlement Agreement dated 7th September 2001 (the "Settlement Agreement") which recorded the resolution reached between the Parties in
relation to five issues as set out therein which had been the subject of dispute between the Parties relating to Contract No 97.22.02 for Provision of Production, Storage, Offtake and Transportation
Services for the Pierce Field dated 9th September 1997, as amended and novated (the "POSA");

	(B)
	The
Settlement Agreement contained, a Heads of Agreement (the "Heads of Agreement") setting out the principles of a second supplementary agreement to replace the first supplementary
agreement to the POSA of 22nd December 1999 (the "First Supplementary Agreement") to be applicable to any period of time under the POSA during which oil production from the Pierce
Field is maximised by maximising gas production;

	(C)
	This
Agreement sets forth the changes which the Parties have agreed to make to the POSA implementing the terms of the Settlement Agreement in relation to the said five issues and
adopting the agreed principles contained in the Heads of Agreement. 

NOW IT IS HEREBY AGREED AS FOLLOWS:  

1.    Definitions  

Subject
to Clause 2 hereof, in this Agreement, terms and expressions defined in the POSA shall, unless the context otherwise requires, bear the same meanings herein. 

2.    Amendments to POSA  

With
effect from 1st September 2001 (the "Effective Date") notwithstanding the date of signature hereof, the POSA shall be amended by substituting for Clauses 1, 2, 9, 11, 12, 14,
47 and Exhibits G and H of the POSA those versions of said Clauses and Exhibits as set forth in Attachment 'A' hereto. 

3.    Dispute Resolution  

The
"Dispute Resolution" and "Proceedings" provisions of the POSA, Clauses 41 and 42 respectively of the POSA, shall apply to any dispute, difference or claim arising between the Parties concerning
the construction, interpretation or performance of this Agreement. 

4.    Governing Law and Jurisdiction  

The
construction, validity and performance of this Contract shall be governed by and construed in accordance with the laws of England. 

3

 

5.    Entire Agreement  

	(a)
	This
Agreement together with its Attachment constitutes the entirety of the agreement between the Parties relating to the changes to be made to the POSA and any correspondence,
meeting notes, memoranda or other documentation prior to the date of this Agreement shall be disregarded in the interpretation of this Agreement and its Attachment.

	(b)
	For
the avoidance of doubt and without prejudice to the foregoing generality, the Parties acknowledge and agree that this Agreement shall supersede entirely (save for any rights and
obligations accrued prior to the Effective Date) the terms and provisions of the First Supplementary Agreement.

	(c)
	Subject
to (b) above and save as amended hereby, the POSA shall continue in full force and effect. 

IN WITNESS WHEREOF the Parties have caused this Agreement to be executed by their duly authorised signatories the day and year first above written. 

Signed
for and on behalf of 

ENTERPRISE OIL plc  

/s/ TOM BOTTS 

as
Pierce Operator on behalf of the Pierce Co-venturers 

Signed
for and on behalf of 

PIERCE PRODUCTION COMPANY LIMITED

/s/
RUUD ZOON 

4

   Attachment 'A'  

 to Supplementary Agreement  

 relating to  

 Contract No. 97.22.02  

 for the Provision of Production, Storage, Offtake and Transportation Services for the Pierce Field  

 between  

 Enterprise Oil plc  

 and  

 Pierce Production Company Limited  

 Comprising of amended Clauses 1, 2, 9, 11, 12, 14, 47  

 and Exhibits G and H  

5

 

CLAUSE 1    DEFINITIONS  

	
1.1
	For
the purposes of this Contract:— 

        "Affiliate"
means:— 

	(a)
	in
the case of a Party which is a Shell Company; any other Shell Company. "Shell Company" means any of the following;

	(i)
	N.V.
Koninklijke Nederlandsche Petroleum Maatschappij (a Dutch registered company),

	(ii)
	The
"Shell" Transport and Trading Company, p.l.c., (an English registered company); and

	(iii)
	any
company (wherever registered) which at the time in question is directly or indirectly affiliated with either or both of the companies mentioned in (i) or
(ii) above. 

        For
the purpose of this paragraph (a), 

	(1)
	a
company is directly affiliated with another company or companies if the latter is (are) beneficial owner of shares (or their equivalent) controlling more than fifty percent (50%) of
votes exercisable at a general meeting (or its equivalent) of such company;

	(2)
	a
company is indirectly affiliated with a company or companies (the parent or parents) if a series of companies can be specified beginning with the parent(s) and ending with the
particular company, so related that each company or companies except the parent(s) is directly affiliated with one or more companies in the series;

	(b)
	in
the case of a Party which is not a Shell Company,

	(i)
	if
the Party is a subsidiary of another company the Party's ultimate holding company and any subsidiary (other than the Party itself) of the Party's ultimate holding
company; or

	(ii)
	if
the Party is not a subsidiary of another company any subsidiary of the Party 

For
the purposes of this paragraph (b), the expressions "subsidiary" and "holding company" have the meanings ascribed thereto in Section 736 of the Companies Act 1985 as amended by
Section 144 of the Companies Act 1989. 

"Agreed
Daily Capacity" means the FPSO maximum gas production capacity, as determined pursuant to Clause 9.6 on a daily basis, which cannot be less than the Functional Specification, and should
reflect the proven maximum throughput of the gas compression system during full system functionality, unless otherwise agreed between the Parties pursuant to Clause 9.6 or Clause 12. 

"Available
Well Capacity" means production (bbl/d under Oil FHR Regime, MMscf/d under Gas FHR Regime) available at the dynamic riser termination assemblies at the STP Buoy from all wells made
available for production at the maximum rates consistent with the Operator's reservoir management strategy, and with a flaring strategy consistent with meeting flaring consents agreed between the
Operator and the DTI. The Available Well Capacity will be determined pursuant to Clause 9.6 on a daily basis. Produced water shall be excluded from the well capacity estimate. 

"Barrel"
means that quantity of liquid hydrocarbons which, at fifteen (15) degrees Celsius and at a pressure of one (1) bar, occupies the volume of 0.158988 cubic metres; and all
references to "Barrels" shall be construed accordingly. 

"bbl/d"
means Barrels per Day. 

6

 

"Commencement
of Commercial Production" means the successful completion of all of the following: delivery and hook-up of the Pierce Facilities (excluding such other equipment not required
to commence and maintain Production), commissioning and pressure testing of the Pierce Facilities including commencement of gas re-injection into a gas injection well, commencement of
production from a minimum of one well from each subsea site processed through to the FPSO storage tank(s); the production of one hundred thousand (100,000) barrels of Production at rates of at least
ten thousand (10,000) bbl/d with a peak rate equivalent to forty thousand (40,000) bbl/d for at least six (6) continuous hours; achievement of minimum required Turndown (in accordance with the
manufacturer's specifications); receipt of formal acceptance of the Operations Safety Case by the United Kingdom Health & Safety Executive in relation to the Pierce Field; confirmation that all
documentation has been accepted by the relevant certifying authorities as complete and correct and issue by the Pierce Operator of a certificate to the Contractor confirming that all of these criteria
have been met. Commencement of Commercial Production is agreed to be 5th March 1999. 

"Contract"
means this agreement and the Exhibits, each as they may from time to time be amended. 

"Contractor's
Equipment" means the FPSO, topsides and the equipment and facilities described in Exhibit C—Part 2—including the Contractor's stock of spare parts,
all of which shall meet the Functional Specification. 

"Contractor's
Personnel" means the persons engaged in accordance with Clause 6.1 by the Contractor, Sub-contractors or its or their Affiliates in connection with the Services. 

"Contractor's
Representative" means the person or persons appointed as such by the Contractor (and notified in writing to the Pierce Operator) to perform the functions set out in Clause 21 and,
subject to Clause 21.3, shall include any other person or persons notified in writing as an alternate. 

"Counsel's
Opinion" means, in relation to a proposed guarantee of performance, opinion(s) given by independent lawyers of high repute and standing, qualified in the law and practising in the
jurisdiction(s) of the proposed issuer's incorporation and principal place of business to the effect, inter alia, that the guarantee of performance in question is a valid and legally binding
obligation pursuant to the laws of such jurisdiction(s) and the memorandum and articles of association, statutes, by-laws or equivalent of the proposed issuer, and its performance will not
contravene any existing or announced exchange control regulations in such jurisdiction(s); such opinion(s) and lawyers to be acceptable to the Pierce Operator, acting reasonably. 

"Co-venturers
Personnel" means any employee, officer, director or contractor working as a member of staff of any of the Pierce Co-venturers. 

"Day"
means a period of time beginning at 0600 hours on any day and ending at 0600 hours on the next succeeding day and the expression "Daily" shall be construed accordingly". 

"Daily
Rate" means the payment rate set out in Clause 12.4.2. 

"Definition
of Requirements" or "DOR" means the document issued by Britoil plc on 2nd July 1997 in its capacity as operator of the Pierce Pre Development Agreement. 

"Development
Contract" means the Contract No. 97.22.01 of even date herewith and entered into between the Pierce Operator and the Contractor for the design, procurement, construction,
installation, hook-up and commissioning activities therein. 

"Dollars"
or "USD" means the lawful currency of the United States of America. 

7

 

"Exceptional
Upgrade Work Requirements" means work intended to enhance vessel performance which the Contractor and Operator agree cannot be managed within the target indicators pursuant to
Clause 12.6.1. 

"Expert"
means the person appointed as such pursuant to Clause 43. 

"Export"
means export, in accordance with the Functional Specification, of natural gas from the Pierce Field. 

"Extraordinary
Expenditure" means any item of expenditure incurred by the Contractor (or a Guarantor) in relation to a Rectification Event but Extraordinary Expenditure shall not under any
circumstances include expenditure which relates to planned maintenance, repair or renewal of the FPSO or any part thereof, or to ordinary unplanned maintenance, repair or renewal of the FPSO or any
part thereof, or to operating expenditure incurred in the provision of the Services. Any item of Extraordinary Expenditure shall be notified forthwith to the Pierce Operator. 

"Field
Area" means the areas identified as such in Exhibit E. 

"Field
Time" commences when notice of readiness (NOR) is tendered at the loading point. Field Time ends when the loading hose is disconnected upon completion of loading operation, as evidenced by the
statement of the master of the Vessel and agreed by the Operator's Representative on the FPSO. If NOR is tendered and the loading operation at the Pierce Field is delayed due to adverse weather
conditions, failure or underperformance of the Vessel or its equipment or crew, or the Vessel remains at the Pierce Field for the sole purpose of loading additional Pierce crude oil which at that time
is not yet produced (excluding delays attributable to the Pierce Equipment or to the Pierce Field), the time of such delay as evidenced by the Vessel's master's statement and agreed by the Operator's
Charterer's Representative on the FPSO, shall not count as Field Time. 

"Force
Majeure" has the meaning attributed to it in Clause 34. 

"FPSO"
means m.v. "Haewene Brim" being a floating production and oil storage vessel, all as more particularly described in the Functional Specification and referred to at Exhibit C. 

"Functional
Specification" means the functional specification attached at Exhibit A as may be amended from time to time in accordance with the provisions of Clauses 1.8 and 9.7. 

"Gas
FHR Regime" means any period of time under this contract during which oil production from the field is maximised by maximising gas production. 

"Gas
Production Efficiency" means the actual average gas production divided by the Target Gas Rate. This is expressed as a percentage, and is calculated for each day and averaged for each month. This
value cannot be greater than 100%. 

"Guarantor"
means any guarantor required pursuant to Clause 25. 

"Information"
has the meaning given to it in Clause 33. 

"Injection"
means injection, in accordance with the Functional Specification, of natural gas, produced water or seawater into the Pierce Field from the FPSO. 

"Month"
means a calendar month commencing on the first day of a calendar month. 

"Moving-in-time"
means: 

	1)
	At
the Pierce FPSO:

	1.1)
	If
the vessel is instructed by the Pierce FPSO OIM to move in directly upon arrival: Time from vessel tendering NOR until completion of mooring (excluding connection of hoses). 

8

 

	1.2)
	If,
after tendering NOR, the vessel is instructed by the OIM to wait before moving in: time from vessel being instructed by the OIM to move in until completion of mooring (excluding
connection of hoses).

	2)
	At
the discharge port:

	2.1)
	If
the vessel does not anchor: time from pilot (or first pilot, if more than one) on board until completion of mooring (excluding connection of hoses).

	2.2)
	If
the vessel anchors; time from anchor aweigh until completion of mooring (excluding connection of hoses). 

"Oil
FHR Regime" means any period of time under this contract during which Gas FHR Regime is not applicable. 

"Operating
Report" has the meaning given to it in Clause 32. 

"Operations
Budget" means the budget provided by the Contractor with the Operations Programme all as more particularly referred to in Clause 5.2. 

"Operations
Programme" means the anticipated annual work programme to be conducted by the Contractor all as more particularly referred to in Clause 5.2 and at Exhibit D. 

"Operator's
Representative" shall mean the person or persons appointed as such by the Pierce Operator (and notified in writing to the Contractor) to perform the functions set out in Clause 21
and, subject to Clause 21.2, shall include any other person or persons notified in writing as an alternate. 

"Party"
means any party which is from time to time a signatory to this Contract in its capacity as specified herein, its successors and permitted assigns in such capacity; and the expression "Parties"
shall be construed accordingly. 

"P&I
Club" means a mutual association providing Protection and Indemnity Insurance for marine vessels. 

"Performance
Incentive" means the incentive provided for under Clause 14.2(ii)(b). 

"Pierce
Co-venturers" means each of: 

MOC
EXPLORATION (U.K.) LIMITED, whose principal office is at 2-4 Toranomon 1-Chome, Minato-ku, Tokyo 105, Japan and whose branch office in the United Kingdom is at
38 Finsbury Square, London EC2A 1PX; 

AGIP
(U.K.) LIMITED, whose registered office is at Ebury Bridge House, 10 Ebury Bridge Road, London SW1W 8PZ; 

ENTERPRISE
OIL plc ("Enterprise"), whose registered office is 8 York Road, London SE1 7NA 

ENTERPRISE
OIL EXPLORATION LIMITED, whose registered office is 8 York Road, London SE1 7NA and 

in
their capacity as parties with a beneficial interest in the Pierce Field, and their respective successors and permitted assigns in such capacity. 

"Pierce
Equipment" means the equipment owned by the Pierce Co-venturers listed and/or described at Exhibit B. 

"Pierce
Facilities" are as described at Exhibit A and means all the Contractor's Equipment and all the Pierce Equipment. 

9

 

"Pierce
Field" means the hydrocarbon accumulations known generally as North Pierce and South Pierce which underlie blocks 23/22a and 23/27, to the extent that they lie within the Field Area. 

"Pierce
Operator" means Enterprise Oil plc acting in its capacity as operator of the Pierce Field as agent on behalf of the Pierce Co-venturers, and its successors and permitted assigns in
such capacity. 

"Pierce
FPSO Offshore Installation Manager" or "OIM" means Offshore Installation Manager of the FPSO. 

"Port
Time" commences when the Vessel tenders notice of readiness (NOR) at the first discharge port. Port Time ends at the time of dropping the outbound pilot at the last discharge port. If NOR is
tendered and discharge is delayed due to failure or underperformance of the Vessel, its equipment or crew, or Owners using their allowance in accordance with Clause 13 of the TPFA, the time of
such delay, as evidenced by the Vessel's master's statement, shall not count as Port Time. 

"Pounds"
or "GBP" means the lawful currency of the United Kingdom. 

"Production"
means production, in accordance with the Functional Specification, of stabilised crude oil and/or natural gas from the Pierce Field achieved by utilising the Pierce Facilities. 

"Production
Schedule" has the meaning given to it in Clause 9.1. 

"Rate
Commencement Date" has the meaning given to it in Clause 12.2.1. 

"Reasonable
and Prudent Operator" means in relation to either Party, a person seeking in good faith to perform its contractual obligations and, in so doing and in the general conduct of its
undertaking, exercising that degree of skill, diligence, prudence and foresight which would reasonably and ordinarily be expected from a skilled and experienced operator engaged in the same type of
undertaking in the United Kingdom Continental Shelf and in similar circumstances or conditions who is complying with all relevant laws and regulations; and the expression "Standard of a Reasonable and
Prudent Operator" shall be construed accordingly. 

"Rectification
Event" means, in relation to the FPSO, an event occurring after Commencement of Commercial Production which could not reasonably have been anticipated by the Contractor at the date of
entering into this Contract and which has arisen notwithstanding the due performance by the Contractor of the Contractor's material obligations under this Contract and which requires the Contractor
(or a Guarantor) to incur Extraordinary Expenditure to ensure the due performance of the Contractor's obligations under this Contract, including the ability to achieve the Functional Specification. 

"Secretary
of State" means the Secretary of State for Trade and Industry or her successor in office or any other person for the time being responsible for carrying out the function at present carried
out by her in relation to the Pierce Field. 

"Services"
means those services referred to in Clause 5. 

"Sub-contractors"
means those persons or companies engaged by the Contractor in connection with the Services and in accordance with Clause 26. 

"Subsea
Production System" means and shall include the christmas trees, manifolds, flowlines, jumpers, risers and umbilicals which in their entirety form the subsea equipment required for the Pierce
Field and are more fully described in Exhibit A. 

10

 

"Surplus
Production Downtime Credit" means, pursuant to Clause 12.6, monthly production performance above the threshold qualifying for FHR (85%) and below threshold utilised for any monthly
incentive payments (92%) calculated in percentage times number of days in month and expressed in terms of days. 

"Target
Gas Rate" means the lesser of the Available Well Capacity and the Agreed Daily Capacity, unless otherwise agreed between the Parties pursuant to Clauses 9.6 and 12. 

"Target
Date of Commencement of Commercial Production" or "TDCCP" means 20th August 1998 or such other date as may be agreed in writing between the Contractor and the Pierce
Operator or as adjusted or varied pursuant to the Development Contract. 

"TPFA"
means the agreement between Enterprise Oil plc and Den norske stats oljeselskap a.s., entitled Tankers for Pierce Field, of even date herewith, for the transportation of Pierce crude oil. 

"Total
Loss" means an actual or constructive total loss of the FPSO. An actual total loss of the FPSO shall be deemed to have occurred on the actual date and time the FPSO was lost but in the event of
the date of the loss being unknown then the actual loss shall be deemed to have occurred on the date when there were last communications to or from the FPSO. A constructive total loss shall be deemed
to have occurred at the date and time notice of abandonment of the FPSO is given to the insurers of the FPSO provided a claim for total loss is admitted by the insurers or if the insurers do not admit
such a claim, at the date and time at which a total loss is subsequently adjudged by a competent court of law to have occurred. 

"Turndown"
means the percentage of change in capacity (referred to rated capacity) between the rated capacity and the surge point capacity at the rated head when the unit is operating at rated suction
temperature and gas composition (reference paragraph 1.4.22 of API 617, 6th Edition, dated February 1995). 

"Vessel"
means the shuttle-tanker that transports the Pierce crude oil as per the TPFA. 

"Windfall"
means that element of production incentive provided for in Clause 14.2(ii)(a). 

"Working
Day" means any day (other than a Saturday or Sunday) on which banks in the City of London and Oslo are open for all normal business. 

"Year"
means a calendar year from 1st January to 31st December inclusive. 

	1.2
	Headings
of Clauses and sections shall be disregarded in the interpretation of this Contract.

	1.3
	References
in this Contract to Clauses shall be to clauses of the main body of this Contract. References to Sections are to sections of the relevant Exhibit.

	1.4
	In
this Contract, unless the context otherwise requires, reference to the singular shall include a reference to the plural and vice versa and reference to any gender shall include a
reference to all genders.

	1.5
	The
several documents forming this Contract are to be taken as mutually explanatory of one another, but in the event of any inconsistency between the main body of this Contract and
any Exhibit the provisions of the former shall prevail.

	1.6
	The
ruling language of the Contract shall be the English language and all Services performed hereunder and the results there from shall be expressed in the English language.

	1.7
	In
the event of any conflict as between the terms of this Contract and the Development Contract, the terms of the latter shall prevail in the period up to the issue of the Completion
Certificate (as defined in the Development Contract), and thereafter the terms of this Contract shall prevail.

	1.8
	This
Contract may only be amended by an agreement in writing signed by all the Parties. 

11

 
	1.9
	Except
in the definition of Affiliate, any reference to any statute or statutory instrument in this Contract shall be a reference to the same as amended, supplemented, consolidated or
re-enacted from time to time and shall include any orders, regulations, instruments and other subordinate legislation made under the relevant statute. 

CLAUSE 2    DURATION  

	2.1
	Second
paragraph to read 

For
the avoidance of doubt in accordance with the provisions of clause 4.1 and subject always to the provisions of Clause 3, the minimum duration of this contract, including notice
periods, is to be five (5) years from Commencement of Commercial Production. 

CLAUSE 9    PRODUCTION  

	9.1
	The
Pierce Operator shall, in advance on a monthly basis, provide the Contractor with a production schedule, set taking into account the greater of the production capacity of the FPSO
as per the Functional Specification or the actual production capacity of the FPSO, stating required daily Production or Injection rates for each well and Production, Injection or Export rates for the
Pierce Field for each day of the following month (hereinafter referred to as the "Production Schedule").

	9.2
	The
Contractor performing to the Standard of a Reasonable and Prudent Operator shall use all reasonable endeavours to achieve Production, Injection and/or Export in accordance with
the Production Schedule. Consistent and substantial failure by the Contractor to meet the average monthly Production, Injection and/or Export rates, and/or consistent and substantial Production,
Injection and/or Export in excess of the said daily production rates contained in the Production Schedule contrary to the Pierce Operator's instructions, and/or consistent and substantial failure to
use reasonable endeavours to produce, inject and/or export at any rate requested pursuant to Clause 9.3 shall constitute a material default under this Contract, where any such failure arises as
a result of the action or inaction of the Contractor and/or its Sub-contractors and is not attributable to the failure of the Pierce Equipment, failure of the Pierce Field reservoir or
Force Majeure.

	9.3
	Subject
always to Clauses 9.4 and 21.4, the Pierce Operator shall have the right, on giving notice to the Contractor's Representative, to require the Contractor to reduce or increase
Production, Injection and/or Export from those rates stated in the Production Schedule issued pursuant to Clause 9.1 to such greater or lesser rate as shall be stated in the notice, and the
Contractor, performing to the Standard of a Reasonable and Prudent Operator, shall use all reasonable endeavours to comply with such instruction subject to operational constraints.

	9.4
	Notwithstanding
any other provision of this Clause 9, the Contractor shall at all times pay the highest regard to the safety of its operations and nothing in this
Clause 9 shall be construed so as to require the Contractor to maintain Production at rates which prejudice safety.

	9.5
	At
the request of the Pierce Operator the Parties undertake to discuss in good faith and agree procedures for the nomination of volumes of gas to be exported or
re-injected into the Pierce Field on a daily basis in accordance with the provisions of the gas sales and transportation arrangements to be entered into by the Pierce
Co-venturers. 

12

 
	9.6
	It
is agreed that from 1st September 2001, Gas FHR Regime applies. On a daily basis the FPSO OIM and the Operator's Representative will agree the Agreed Daily
Capacity and the Available Well Capacity. The lesser of these two (the "Target Gas Rate") will be included in the FPSO Daily Report. The Target Gas Rate supercedes any values of well rates set in the
monthly Production Schedule. If the Operator considers that the Gas FHR Regime should cease to apply (for example if oil production ceases to be constrained by gas handling capacity and becomes
constrained by oil processing capacity), he shall advise the Contractor to this effect, and the Parties shall meet to negotiate and agree in good faith the required modifications to the Target Gas
Rate, Gas Production Efficiency, Agreed Daily Capacity and any other parameters for the new regime.

	9.7
	If
the Pierce Co-venturers have wholly funded modifications to the Contractor's Equipment, to increase the Agreed Daily Capacity, then the Functional Specification shall
be amended to reflect the increase in gas compression capacity resulting from such modifications. If the Pierce Co-venturers have partially funded such modifications, then the Parties
shall meet to discuss in good faith how to amend the Functional Specification so that it reflects the increase in gas compression capacity in proportion to Pierce Co-venturers funding.

	9.8
	Flaring
rates are a function of the following parameters:

	(i)
	Flare
used versus remaining consents

	(ii)
	DTI
concerns

	(iii)
	Well
configurations

	(iv)
	Length
of predicted outage 

The
Pierce Operator is responsible for agreeing, with the regulatory authorities, flare consent for the field, and also for negotiating short-term flaring rates during periods of unplanned
Contractor Downtime. The Pierce Operator will attempt to negotiate rates that allow reasonable level of production to continue during such periods. The Parties will meet from time to time to discuss
and agree flaring rates during periods of equipment unavailability for which the Pierce Operator will be able to obtain the consent of the regulatory authorities. Rates for which consent can be
reasonably assumed are currently not less than: 

	Period of Gas Compression

System Shutdown
	 	Flaring Rate

	0-12 hours	 	30 MMscf/d
	12-24 hours	 	15 MMscf/d
	beyond 24 hours	 	8 MMscf/d

Such
rates to be to be reduced if no longer considered acceptable by the regulatory authorities. 

13

 
	9.9
	The
Contractor agrees to use best endeavours to ensure accurate metering during Gas FHR Regime. In order to ensure the reliability of gas rate measurements, a gas metering system
integrity audit has been performed to identify equipment anomalies and has determined the acceptable equipment accuracy figure / tolerance band for future use to be plus or minus four percent (4%) of
true value. Any system anomalies found during the integrity audit, or additional metering equipment identified as being necessary to achieve the agreed figure, will be identified in the final report
and will be addressed and implemented in good time. The final report will specify expected metering accuracies following the recommended upgrades and reconfiguration. Thereafter, an annual system
audit will be performed by an independent third party, at the Contractor's cost, to ensure accuracy levels are maintained. The scope of this audit will be outlined in auditor's report as part of the
initial system integrity audit. Additionally the frequency of audit will be annually, or as agreed between the Parties. Any offset or bias found as a result of any subsequent routine audit will be
quantified and corrected by suitable adjustment of meter factors, or by maintenance to metering equipment. Any such corrections to meter factors to be applied until superceded by subsequent audit
findings. Any maintenance recommended by the third party performing the audit will be implemented by the Contractor at the Contractor's expense, and will be treated as ordinary maintenance to the
Contractor equipment, and will be carried out on-line, or scheduled with regular planned shutdowns so as not to cause production loss. Failure to conduct an audit within the required time,
or failure to implement agreed recommendations of an audit report within 3 months of date of an audit, will be cause to suspend payment of the Performance Incentive until audit and/or agreed
recommendations have been implemented. 

CLAUSE 11    TRANSPORTATION  

	11.1
	The
Pierce Operator has contracted Navion ASA for the provision of dedicated shuttle tankers for the off-take, transportation and discharge of Production from the FPSO at
such ports as may be directed by the Pierce Operator all in accordance with the provisions of the TPFA which sets out the detailed arrangements for transportation of oil produced from the Pierce
Field. In the event of the Pierce operator replacing the TPFA, the terms of clause 11 shall apply mutatis mutandis to replacement arrangements for the off-take, transportation and
discharge of Production from the FPSO.

	11.2
	Under
the terms of the TPFA, the Pierce Operator may become liable for certain amounts to the operator of the shuttle tankers including but not limited to payments when said tankers
are delayed at the Pierce Field or obliged to transport less than the nominated quantity. Where such payment is not a direct consequence of the failure of Pierce Equipment, the Pierce Field reservoir,
instructions of the Pierce Operator to the operator of the shuttle tanker to load less than the Cargo specified in Clause 13 of the TPFA or instructions of the Pierce Operator pursuant to
Clause 9.3, the Pierce Operator shall recover the full amount of such payment from the Contractor in accordance with Clause 13.3. In relation to demurrage charges, on a cargo by cargo
basis, within seventy-two (72) hours of allowable laytime, demurrage charges will be passed to the Contractor after Field Time, less half the "Moving-in time", exceeds
thirty-six (36) hours and that no charge will be made to the Contractor for any Port Time exceeding thirty-six (36) hours. Where the Pierce Operator nominates a
3 day date range to the offtake tanker provider which commences earlier than the load date nominated by the Contractor consistent with production to tank tops, the Pierce Operator will not hold
the Contractor liable for time penalties attributable to Field Time in advance of 1200hrs on the load date nominated by the Contractor, or for incremental dead freight charges directly attributable to
such earlier nomination date. 

CLAUSE 12    RATES  

	12.1
	General

In
consideration of the full and satisfactory performance of the Services the Pierce Operator shall, with effect from the Rate Commencement Date pay the Contractor in accordance with the provisions
set out in this Clause 12. 

14

 
	12.2
	Rate Commencement

	 	12.2.1	 	The relevant rate payable hereunder shall be payable from the day (herein referred to as the "Rate Commencement Date") on which Commencement of Commercial Production occurs, provided that if Commencement of Commercial
Production can not be achieved or is delayed:

	a)
	due
to the failure of the Pierce reservoir to perform as expected or failure of the Pierce wells or wellheads, provided that all components of the Pierce Facilities, other than those
not required to commence and continue Production, have been delivered to the Pierce Field area and are installed, hooked up, commissioned and tested and are ready for production, as far as is
practicable, and the Pierce Operator has taken such steps as it considers necessary to establish that the failure to achieve Commencement of Commercial Production is attributable to a failure of the
Pierce reservoir or wells or wellheads, then the Rate Commencement Date shall be the date upon which Commencement of Commercial Production would have been achieved but for such failure; or

	b)
	due
to any action or inaction (including in relation to the drilling of wells) on the part of the Pierce Operator which prevents Commencement of Commercial Production, then the Rate
Commencement Date shall be that date which would have been the date upon which Commencement of Commercial Production would have been achieved but for such action or inaction. 

PROVIDED
ALWAYS that the Rate Commencement Date shall not be before the TDCCP unless agreed by both Parties. 

	12.3
	Full Hire Rate (FHR)

	 	12.3.1	 	FHR shall apply from the Rate Commencement Date until the date seven (7) days after the demobilisation of the FPSO from the Field Area except:

	(i)
	as
set out in Clause 3.9.2 (in which circumstances no rate shall be payable); or

	(ii)
	in
the event of a shutdown or Production for reclassification of the FPSO after the fifth anniversary of the Commencement of Commercial Production, for any period of
such shutdown in excess of twenty one (21) days (in which circumstances no rate shall be payable); or

	(iii)
	where
the Daily Rate is payable, as set out in Clause 12.4; or

	(iv)
	where
the Force Majeure Rate is payable as set out in Clause 12.5. 

	 	12.3.2	 	The FHR shall apply and payment shall be Operating Costs (as set out in Exhibit H) plus Hire Rate (as set out in Exhibit H) under the following circumstances:

	(a)
	when
the average rate of Production:

	(i)
	exceeds
twenty thousand (20,000) barrels of oil a day in the first thirty (30) days after Commencement of Commercial Production; or

	(ii)
	exceeds
thirty five thousand (35,000) barrels of oil a day in the second thirty (30) days after Commencement of Commercial Production; or

	(iii)
	exceeds
forty thousand (40,000) barrels of oil a day in the third thirty (30) days after Commencement of Commercial Production; or

	(b)
	in
Gas FHR Regime, in the event that all relevant Contractor's Equipment is fully operational and capable of meeting 

15

  

	(i)
	actual
gas production such that Gas Production Efficiency meets, as a minimum, 85% or

	(ii)
	actual
gas production meeting, as a minimum (100/110)% of the Functional Specification. 

In
setting the above thresholds, the Parties agree that shutdowns for any reason other than Exceptional Upgrade Works Requirements will be managed within the target indicators detailed in 12.3.2,
(b) (i) and (ii); or 

	c)
	in
the event of a Production shutdown or period of reduced production requested or caused by the Contractor including any shutdown required for ordinary maintenance or repair (but
excluding the shutdown for reclassification of the FPSO) referred to in Clause 12.3.2 (d), to the extent that there is sufficient available unutilised Surplus Production Downtime Credit
pursuant to Clause 12.6 to offset any shortfall in meeting the conditions set in 12.3.2(b); or

	d)
	in
the event of a shutdown of Production for reclassification of the FPSO after the fifth anniversary of the Commencement of Commercial Production (5th March 1999)
but subject to a maximum duration of twenty one (21) days. 

	Example #1	 	(i)	 	(ii)	 	(iii)
	Compression availability on each day of month (MMscf/d)	 	115	 	80	 	115
	Functional Specification (MMscf/d)	 	110	 	110	 	110
	Agreed Daily Capacity (MMscf/d)	 	115	 	115	 	115
	Available Well Capacity (MMscf/d)	 	120	 	120	 	60
	Target Gas Rate (MMscf/d)	 	115	 	115	 	60
	Test (i) 85% of Target Gas Rate	 	97.8	 	97.8	 	51.0
	Test (ii) 91% of Functional Specification	 	100.0	 	100.0	 	100.0
	Monthly Avg. Gas Rate to earn FHR (MMscf/d)	 	97.8	 	97.8	 	51.0
	

Example with Upgrade by PPC #2	
 	

(iv)	
 	

(iv)	
 	

(iv)
	Compression availability on each day of Month (MMscf/d)	 	125	 	80	 	125
	Functional Specification (MMscf/d)	 	110	 	110	 	110
	Agreed Daily Capacity (MMscf/d)	 	125	 	125	 	125
	Available Well Capacity (MMscf/d)	 	130	 	130	 	60
	Target Gas Rate (MMscf/d)	 	125	 	125	 	60
	Test (i) 85% of Target Gas Rate	 	106.3	 	106.3	 	51.0
	Test (ii) 91% of Functional Specification	 	100.0	 	100.0	 	100.0
	Monthly Avg. Gas Rate to earn FHR (MMscf/d)	 	100.0	 	100.0	 	51.0
	

Example with Upgrade (from Ex#1) by Pierce Partners #3	
 	

(v)	
 	

(v)	
 	

(v)
	Compression availability on each day of Month (MMscf/d)	 	125	 	80	 	125
	Functional Specification (MMscf/d)	 	120	 	120	 	120
	Agreed Daily Capacity (MMscf/d)	 	125	 	125	 	125
	Available Well Capacity (MMscf/d)	 	130	 	130	 	70
	Target Gas Rate (MMscf/d)	 	125	 	125	 	70
	Test (i) 85% of Target Gas Rate	 	106.3	 	106.3	 	59.5
	Test (ii) 91% of Functional Specification	 	109.1	 	109.1	 	109.1
	Monthly Avg. Gas Rate to earn FHR (MMscf/d)	 	106.3	 	106.3	 	59.5

	(i)
	FPSO
gas compression availability on the day is equal to the Agreed Daily Capacity of 115 MMscf/d, and there is excess well capacity, so Target Gas Rate is 115 MMscf/d.
Actual production meeting or exceeding 85% of the Target Gas Rate will earn FHR; 

16

 

	(ii)
	Compression
availability on each day of the month is 80 MMscf/d. Proven maximum throughput is still 115 MMscf/d, so Agreed Daily Capacity remains at 115 MMscf/d and
Target Gas Rate also remains at 115 MMscf/d.;

	(iii)
	Example
of how failures of Pierce Equipment affects contractual payments. Because failures of Pierce Equipment reduce Available Well Capacity from 120 to 60 MMscf/d,
the Target Gas Rate is reduced from 115 (in example (i)) to 60 MMscf/d; example (iii) also illustrates how Target Gas Rate would be reduced to equal the Available Well Capacity in event of well
testing or because field production has declined;

	(iv)
	Gas
compression upgrade (of incremental 10 MMscf/d) funded by Contractor;

	(v)
	Gas
compression upgrade (of incremental 10 MMscf/d) funded by Pierce Co-venturers. 

	 	12.3.3	 	In all other circumstances where the FHR is applicable pursuant to Clause 12.3.1, but in the event that the Contractor's Equipment is not capable of meeting the conditions set out in Clause 12.3.2(b) or
12.3.2(c):
	

 	

 	
 	

The FHR shall apply, but payment shall be Operating Costs (as set out in Exhibit H) plus a proportion of Hire Rate (as set out in Exhibit H). The proportion of Hire Rate payable will be Gas Production Efficiency divided by 85%, having a
maximum value of 100% of Hire Rate, and allowing for the use of Surplus Production Downtime Credit according to Clause 12.6.

17

 

Example
calculations are shown below:— 

	Functional Specification (MMscf/d)	 	110	 	110	 	110	 	110	 
	Agreed Daily Capacity (MMscf/d)	 	115	 	115	 	115	 	115	 
	Available Well Capacity (MMscf/d)	 	120	 	120	 	60	 	70	 
	Target Gas Rate (MMscf/d)	 	115	 	115	 	60	 	70	 
	Gas Rate required to earn FHR (MMscf/d)	 	97.75

(85% of TGR	
)	97.75

(85% of TGR	
)	51.0

(85% of TGR	
)	59.5

(85% of TGR	
)
	Gas Rate required to earn FHR (30 day month) (MMscf)	 	2933	 	2933	 	1530	 	1785	 
	Actual Production (MMscf/d)	 	50	 	50	 	50	 	50	 
	Actual Production (30 day month) (MMscf)	 	1500	 	1500	 	1500	 	1500	 
	Percentage Efficiency	 	43.5	%	43.5	%	83.3	%	71.4	%
	FHR Shortfall	 	41.5	%	41.5	%	1.7	%	13.6	%
	If Surplus Production Downtime Credit available at start of month was	 	14	 	5	(i)	1	 	1	(ii)
	Percentage of Hire Rate earned after offset	 	100	%	70.79	%%	100	%	87.96	%
	Surplus Production Downtime Credit to carry forward (days)	 	1.55	 	0	 	0.5	 	0	 

	 	 	 	 	 

18

 

	(i)	 	Production threshold is 85% of Target Gas Rate	 	85%x115x30=2933
	 	 	Actual monthly production	 	1500 (=43.5% of TGR)
	 	 	FHR shortfall	 	85%-43.5% = 41.5% of TGR
	 	 	 	 	41.5% of TGR × 30 days in month = 12.45 days
	

 	
 	

Allowing for use of Surplus Production Downtime Credit	
 	

12.45-5 = 7.45 days shortfall
	 	 	 	 	7.45/30 = 24.83%
	

 	
 	

Then Hire Rate Payment for month	
 	

HR × (85%-24.83%)/85% = HR × 70.79%
	

(ii)	
 	

Production threshold is 85% of Target Gas Rate	
 	

85%×70×30=1785
	 	 	Actual monthly production	 	1500 (=71.4% of TGR)
	 	 	FHR shortfall	 	85%-71.4% = 13.6% of TGR
	 	 	 	 	13.6% of TGR × 30 days in month = 4.07 days
	

 	
 	

Allowing for use of Surplus Production Downtime Credit	
 	

4.07-1 = 3.07 days shortfall
	 	 	 	 	3.07/30 = 10.24%
	

 	
 	

Then Hire Rate Payment for month	
 	

HR × (85%-10.24%)/85% = HR × 87.96%

	12.4
	Daily Rate

	 	12.4.1	 	The Daily Rate shall apply in the following circumstances:

	a)
	for
the duration of any Production shutdown requested or caused by the Contractor, other than as provided for in Clause 12.3.2 (c), where the Contractor's Surplus Production
Downtime Credit has been utilised pursuant to Clause 12.6.2; and

	b)
	where
the Contractor is in default or breach of its obligations hereunder in such a way as to affect Production materially or affect the safety of personnel or equipment, from the date
when the Pierce Operator has issued a notice to such effect until such time as the default or breach has been remedied to the reasonable satisfaction of the Pierce Operator or this Contract has been
terminated; and

	c)
	for
the duration of any period when the Services (or any part thereof) have been stopped or suspended on the instructions of the Operator's Representative pursuant to
Clause 21.4 other than instructions related to the performance of the Pierce Equipment; and

	d)
	for
the duration of any period of production shutdown arising out of the non-availability of a shuttle tanker. 

	 	12.4.2	 	The Daily Rate payable under this Clause 12.4 shall be as follows:

	(a)
	for
a maximum of four hundred and thirty two (432) hours in a Year the Operating Costs as set out in Exhibit H, subject to indexation pursuant to Exhibit H; and

	(b)
	for
the four hundred and thirty third (433rd) hour and each subsequent hour zero.

	12.5
	Force Majeure Rate

19

 

Force
Majeure Rate shall apply during any period ("Force Majeure Period") when Production operations are delayed or suspended as a result of Force Majeure affecting any Party. The applicable Force
Majeure Rate shall be calculated as follows: 

	a)
	for
the first thirty (30) days of each separate Force Majeure Period the Force Majeure Rate shall be equal to the FHR payable pursuant to Clause 12.3.2; and

	b)
	for
each subsequent day of each separate Force Majeure Period the Force Majeure Rate shall be equal to ninety percent (90%) of the Hire Rate as set out in Exhibit H, subject to
indexation pursuant to Exhibit H.

	12.6
	Surplus Production Downtime Credit

	 	12.6.1	 	With effect from 1st September 2001, the Contractor shall be entitled to earn Surplus Production Downtime Credit provided that no Surplus Production Downtime Credit shall accrue during any Force Majeure
Period, failures of Pierce Equipment, suspensions of operations at the Pierce Operator's request and shutdowns for reclassification of the FPSO.
	

 	

 	
 	

The gas produced on any day shall count first towards meeting the FHR threshold; gas produced in excess of FHR threshold shall then count as Surplus Production Downtime Credit until the Performance Incentive threshold is met; it shall then count as
Performance Incentive gas; if the Performance Incentive threshold is higher than the Windfall threshold, then the amount of gas between the Windfall threshold and the Performance Incentive threshold shall count as both Windfall production and Surplus
Production Downtime Credit.
	

 	

 	
 	

If requested by the Contractor, the Parties will meet to discuss and agree any Exceptional Upgrade Works Requirements which will necessitate a temporary increase to the 14 day cap as set out in clause 12.6.3, such Exceptional Upgrade Works
Requirements to exclude all ordinary maintenance and repair that a Reasonable and Prudent Operator would carry out.
	

 	

12.6.2	
 	

If a production deficit occurs against FHR in any month, available accrued Surplus Production Downtime Credit shall be utilised by offset to make good the production deficit (days) caused by production shutdown or production shortfall requested or
caused by the Contractor (including shutdowns required for ordinary maintenance or repair but excluding any shutdown for reclassification of the FPSO) and the cumulative Surplus Production Downtime Credit shall be reduced by the amount
offset.
	

 	

12.6.3	
 	

Any Surplus Production Downtime Credit in any month can be accumulated and carried forward to offset a production deficit against FHR (days) in any future month. Surplus Production Downtime Credit which is not utilised in accordance with
Clause 12.6.2 during the month in which it accrued shall be carried forward and accumulated subject to a maximum available accrued Surplus Production Downtime Credit of fourteen (14) days. There shall be no time limit to the accumulation of
Surplus Production Downtime Credit. For the avoidance of doubt, any accrued Surplus Production Downtime Credit in excess of such maximum shall be deemed to have been utilised.

20

 
	12.7
	Annual Reconciliation

At
the end of any Year in which the FHR calculated in accordance with Clause 12.3.2 has at any time not been payable, the Pierce Operator will perform a reconciliation to compare the actual
total production of crude oil during such Year with the required total oil production for such Year. The same will be done for gas under Gas FHR regime. Under Gas FHR Regime, firstly: any unused part
of the capped Surplus Production Downtime Credit earned during that year can be used to calculate an adjusted Gas Production Efficiency for any month of that year in which Hire Rate has not been paid
in full, and the difference in Hire Rate can be invoiced; secondly: any Performance Incentive which the Contractor has elected to retain rather than take payment of when submitting the billing for the
relevant month may either be claimed for payment or used to recover any remaining FHR deficit for any month during that year at the time of annual reconciliation. Annual reconciliation shall also
apply to that part of the Performance Incentive payments not paid monthly (and which the Contractor does not elect to use to offset FHR deficit as above). The first period of such annual
reconciliation of FHR and Performance Incentive payments shall run from 1st September 2001 to 31st December 2001, and thereafter for twelve-month periods
ending 31st December. 

There
is no annual reconciliation of Windfall Incentive. 

Example
calculations of the Annual Reconciliation are illustrated in the attachments to this agreement. 

Any
adjustment payments payable under this Clause 12.7 shall be paid as soon as practicable and in any event no later than sixty (60) days after the end of the Year to which they relate. 

	12.8
	Revision of Rates

With
effect from the fifth anniversary of the Rate Commencement Date the Operating Costs referred to in Exhibit H shall be reviewed. The review shall consider the actual operating costs
incurred by the Contractor over the five year period. In the course of such review, the Contractor and the Pierce Operator shall provide each other with reasonable substantiation of their views. If
the review demonstrates that the actual operating costs exceed the Operating Costs referred to in Exhibit H over the five year period the Parties shall discuss and agree revised operating costs
to be effective for subsequent years and the Contract shall be amended accordingly. 

	12.9
	The
value of P0 from 5th March 2000 onwards shall be 101.15. Values of the Indicator, P1, shall be taken from the Index of "Producer
Prices (Output: Home Sales: Output of Manufactured Products)" as published in the table number 18.7 of Central Statistical Office in the Monthly Digest of Statistics. In the event that the Indicator
specified in Exhibit H ceases to be published the Parties shall consult to agree upon the substitution of a new index or indices matching as closely as possible the characteristics of the index
in question which has ceased to be published. In the event that the Parties are unable to agree on how to effect this substitution, the matter shall be referred to an Expert. 

In
the event that the Parties fail to agree on a substitute index or indices within four Months of the cessation of publication of the index in question the matter shall be referred to an Expert for
decision in accordance with Clause 43. The Parties shall furnish the Expert with all information, written or oral, and other evidence which he may reasonably require for his determination. The
Expert shall have regard in making his decision to the requirement that the substitute index or indices should match as closely as possible the characteristics of the index in question which has
ceased to be published. Any new index or indices substituted by the Expert shall be final and binding on the Parties except in the case of mistake or manifest error. 

21

 

In
the event that the base or weightings of the index in question are changed then: 

	(i)
	For
as long as indices on the immediately preceding base and weightings are published such figures shall be used for the purposes of indexation pursuant to
Exhibit H.

	(ii)
	From
the time that the indices on the immediately preceding base and weightings cease to be published, the indices on the new base and weightings shall be used for the
purpose of Indexation of the relevant rates except that the value of P0 as appropriate in the formula described in Exhibit H shall be revised at the same time by multiplying it by a
conversion factor calculated by dividing the arithmetic total of the indices on the new base and weightings by the arithmetic total of the indices on the immediately preceding base and weightings for
all those months for which indices are published on both the immediately preceding base and weightings and the new base and weightings. 

	12.10	 	Adjustment to Costs

	(i)
	In
the event of an adjustment to the Hire Rate and/or Operating Costs, as agreed between the Parties, resulting from upgrades or modifications to the Contractor's
Equipment as specifically requested by the Pierce Operator pursuant to Clause 15 or the Development Contract or in the event of a change in applicable laws, regulations or Codes of Practice
pursuant to Clause 23.2, such adjustments shall be made in the form of a Contract amendment.

	(ii)
	In
the event of a lump sum being payable to the Contractor, as agreed between the Parties, resulting from upgrades or modifications to the Contractor's Equipment as
specifically requested by the Pierce Operator pursuant to Clause 15 or the Development Contract, such lump sums shall be payable in accordance with Clause 13. 

	12.11	 	Additional Costs

	(i)
	Where
the Pierce Operator instructs the Contractor to carry out inspection, repair and maintenance of any part of the Pierce Equipment, pursuant to Clause 7.3,
the Pierce Operator shall reimburse the Contractor for such services in accordance with the approved Operations Budget, subject to Clause 7.4.

	(ii)
	Where
the Pierce Operator instructs the Contractor to procure third party materials on its behalf in support of the Services, the Contractor shall be reimbursed for
such materials at [***]. 

	12.12	 	During any period when Daily Rate is payable in accordance with Clause 12.4.1, the cost of any diesel or other fuel oil utilised by the Contractor on the FPSO shall be for the Contractor's account and any such costs
shall be deducted from payments due to the Contractor pursuant to Clause 13.3. The Parties shall provide such substantiation of volumes consumed and the costs of provision as may reasonably be required.
	

 	
 	
[***] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE
SECURITIES ACT OF 1933, AS AMENDED.
	

 	
 	

 

22

 

CLAUSE 14    INCENTIVE PAYMENTS  

	14.1
	Period

For
the twelve month period starting at the Commencement of Commercial Production and for each subsequent twelve month period starting on the anniversary of the Commencement of Commercial Production,
the Pierce Operator shall pay the Contractor a production incentive payment subject to an HSEQ performance adjustment as determined in accordance with Clauses 14.2 and 14.3 PROVIDED ALWAYS that the
Pierce Facilities are operated by the Contractor in accordance with good oil field practice to maximise oil yield and in accordance with the instructions given in Clause 9. 

	14.2
	Production Incentive

For
each twelve month period, the production incentive will be the greatest of the following: 

	(i)
	For
every Barrel of oil produced in excess of sixteen decimal four two five (16.425) million Barrels in said twelve month period, the Pierce Operator will pay to the
Contractor the sum of [***]; or

	(ii)
	The
Pierce Operator will pay to the Contractor a production incentive for gas. In Gas FHR Regime, the production incentive for gas will be divided into a windfall
element and a performance-based element:

	a)
	The  windfall element of the production incentive ("Windfall Incentive") will be payable for gas produced in excess of (100/110)% of the
Functional Specification. Incentive gas will be calculated as MMscf produced in the month in excess of the (100/110)% of the Functional Specification times days in the month and will be converted to
excess equivalent barrels using the average GOR for the month (e.g. if average gas produced in a 30-day month is 5 MMscf/d in excess of (100/110)% of Functional Specification, and average
GOR for the month is 3000 scf/stb, then Windfall Incentive is 5,000,000 / 3000 * [***]). Whatever the actual GOR, the GOR to be
used for the calculation will be capped at 5000 scf/stb. Windfall Incentive will be payable at the reduced rate of [***].
Monthly Windfall Incentive payment will not exceed [***].

	b)
	A
performance element of the production incentive ("Performance Incentive") will also be paid, calculated in part on a monthly basis,
and in part on an annual basis. Monthly and annual thresholds for the Performance Incentive will be based upon Gas Production Efficiency. 

The
threshold for payment of the performance element of the production incentive will be when Gas Production Efficiency is equal to Y%. Y shall be 92% for the monthly Performance Incentive and 91% for
the annual Performance Incentive. The Performance Incentive will be payable as: 

Performance
Incentive ($) = (Gas Production Efficiency (%)-Y%) × Z 

where
Z is one half of the Hire Rate. 

[***] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

23

 

A
monthly calculation shall be made with Y having a value of 92%, and the Performance Incentive shall be payable for each day of the month in question for which the Target Gas Rate is greater than
zero. Contractor may elect either to receive payment when submitting the billing for the relevant month or to retain entitlement to payment of the monthly Performance Incentive earned until the Annual
Reconciliation. If the Contractor elects to retain the Performance Incentive for any month, the Contractor shall have the option at the time of Annual Reconciliation of Hire Rate and Performance
Incentive payments to use such production which would otherwise have given rise to an entitlement to the Performance Incentive for offsetting any deficit in FHR. If payment of the Performance
Incentive is claimed when submitting the billing for the relevant month, the relevant production shall not be available to be used for offsetting FHR deficit at the time of Annual Reconciliation. 

An
annual calculation shall also be made in January for the preceding year, and a further Performance Incentive shall be payable using the same formula but with Y having a value of 91%, where Gas
Production Efficiency (%) = average actual performance achieved over the year, and Z = one half the then-current Hire Rate to be paid for each day of the year in question.
There shall be no revision to the previously-calculated monthly Performance Incentive payments. 

	14.3
	HSEO Performance Adjustment

If
any of the following events occurs on or in connection with the Contractor's Equipment in the twelve (12) month period, and the event in question is as a result of a significant failure of
the Contractor's Management System: 

	(a)
	a
fatality occurs; or

	(b)
	an
Incident has occurred that is classified as a High Risk Incident, with an actual outcome of severity level 3 (major injury or health effects, or work absence of more than
15 days) or greater, as defined in the Shell Incident Investigation manual 3138-001, issue 08/02. Note; All future revisions to this document will be issued to the Contractor. If
Contractor disagrees with any revisions, Contractor must notify the Operator of their disagreement within 30 days of the date of issue, otherwise revisions will apply; or

	(c)
	a
major spill in excess of one thousand (1,000) Barrels occurs, 

then
the amount payable under Clause 14.2 will be affected as follows: monthly Windfall and Performance Incentive payments for the month in which the event has occurred will be zero. Monthly
Windfall and Performance Incentive payments for the subsequent eleven months will be made at the discretion of the Pierce Operator following assessment by the Pierce Operator's Incident Review Panel
and consultation with the Contractor: if the Incident Review Panel considers that the Contractor either failed to report, investigate and/or put in place adequate controls or measures to prevent the
reoccurrence of such an incident, the Pierce Operator will have the right to withhold any monthly Windfall and Performance Incentive payments for any of the subsequent eleven months. 

24

 

Irrespective
of whether one of the above events has occurred, payment of the monthly Windfall Incentive, the monthly Performance Incentive and the annual Performance Incentive will be related to
achievement of the Health, Safety, Environmental and Quality scorecard for the asset. The scorecard will be set and agreed annually by the Pierce Operator following consultation with the Contractor,
and an HSEQ performance index will be calculated each month from the scorecard by weighting each element of the scorecard. The monthly Windfall Incentive, the monthly Performance Incentive and the
annual Performance Incentive payment as calculated based on production will be pro-rated by HSEQ performance index: outstanding HSEQ performance will result in 120% of payment; HSEQ
performance meeting target will result in 100% of payment; poor HSEQ performance will result in 0% of payment. 

	14.4
	Operating Costs

The
Parties agree that the Operating Costs set out in Exhibit H shall be subject to a challenge process with a view to reducing the Operating Costs. The challenge process will include the
implementation of an incentive scheme based on the reduction of the Operating Costs. The Parties shall in good faith agree and implement the details of such incentive scheme which will operate in
addition to that contained in Clause 14.2. 

CLAUSE 47    NOTICES  

	47.1
	Any
notices required to be served hereunder shall be in writing and may be given by delivering the same by hand or by sending a letter by pre-paid first class post or by
facsimile transmission equipment to the relevant address set out below or such other address as may be notified from time to time. All notices from the Pierce Co-venturers shall be sent by
the Pierce Operator and all notices to the Pierce Co-venturers shall be sent to the Pierce Operator. 

	

the Pierce Operator:	
 	

Enterprise Oil plc

Shell UK Exploration and Production,

1 Altens Farm Road,

Nigg,

Aberdeen AB 12 3FY
	

 	
 	

Fax:	
 	

01224 881683
	

 	
 	

Attn:	
 	

Pierce Operations Leader
	

the Contractor:	
 	

Pierce Production Company Limited

21 Guild Street

Aberdeen

AB11 6NJ
	

 	
 	

Fax:	
 	

01224 582049
	

 	
 	

Attn:	
 	

Managing Director,

Any
notice given as aforesaid shall be deemed to have been received: 

	(i)
	in
the case of delivery by hand, when delivered; or

	(ii)
	in
the case of a letter sent by first class post, on the third Working Day following the date of its dispatch; or

	(iii)
	in
the case of facsimile transmission when receipt is acknowledged. 

25

   Exhibit G—Key Contractor's Personnel  

	Operations Manager
	

OIM
	

Marine Superintendent
	

Technical Superintendent
	

Production Superintendent

Note:
To be nominated and approved pursuant to Clause 6.2. 

26

 

Exhibit H—Daily Rates ($US)  

	Year
 
	 	Year Commencing

6th March
	 	Hire Rate

(US$)
	 	Operating

Costs (US$)
	 	Accomodation

Charge (US$)

	1	 	1999	 	[***]	 	[***]	 	[***]
	2	 	2000	 	[***]	 	[***]	 	[***]
	3	 	2001	 	[***]	 	[***]	 	[***]
	4	 	2002	 	[***]	 	[***]	 	[***]
	5	 	2003	 	[***]	 	[***]	 	[***]
	6	 	2004	 	[***]	 	[***]	 	[***]
	7	 	2005	 	[***]	 	[***]	 	[***]
	8	 	2006	 	[***]	 	[***]	 	[***]
	9	 	2007	 	[***]	 	[***]	 	[***]
	10	 	2008	 	[***]	 	[***]	 	[***]
	11	 	2009	 	[***]	 	[***]	 	[***]
	12	 	2010	 	[***]	 	[***]	 	[***]
	13	 	2011	 	[***]	 	[***]	 	[***]
	14	 	2012	 	[***]	 	[***]	 	[***]
	15	 	2013	 	[***]	 	[***]	 	[***]

Notes:  

	1.
	Daily
Hire Rates are fixed in the periods indicated above.

	2.
	Daily
Operating Costs (for vessel, topsides and onshore support) are subject to indexation in accordance with paragraphs 1 and 2 below. In addition the Operating Costs are subject to
revision for years 6 onwards in accordance with Clause 12.8 and to challenge process according to Clause 14.4.

	3.
	The
Pierce Operator shall reimburse the Contractor for accommodation for additional Pierce Operator's personnel on the Contractor's Equipment in accordance with clause 21.2
using the Accommodation Rate per person per day. 

Indexation  

	1.
	It
is agreed that the Operating Costs which form part of FHR referred to in Clause 12.3.1 and form the Daily Rate referred to in Clause 12.4.1 shall be revised annually
with effect from the Rate Commencement Date (the Rate Commencement Date and each relevant anniversary thereof being referred to as "the Review Date") to reflect changes in costs from 1st
January 1997 ("the Base Date") in accordance with the following formula: 

	 	 	 	P1	 	 
	 	 	AC = BC × 	
	 	 
	 	 	 	P0	 	 

[***] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

27

 

        Where:

	AC	=	the adjusted relevant cost in Dollars;
	

BC	

=	

the Operating Costs set out for the relevant year in Exhibit H;
	

P1	

=	

the value of the Indicator most recently published by the Review Date, provisionally published valued being ignored;
	

P0	

=	

being the agreed value of the Indicator most recently published by the Base Date, provisionally published value being ignored;

and
where 

"the
Indicator" means the Index of "Producer Prices (Output: Homes Sales—Output of Manufactured Products) as published in table number 18.7 by the Central Statistical Office in the Monthly
Digest of Statistics. 

	2.
	In
respect of any indexation taking effect after a revision of rates pursuant to Clause 12.8, only that proportion of the Operating Costs referred to in Exhibit H
relating to personnel costs, maintenance costs, insurance costs and other like costs reasonably incurred by the Contractor in the day to day operation of the FPSO and agreed within 30 days of
the fifth anniversary of the Rate Commencement Date pursuant to Clause 12.8 (such amount being referred to as the "Indexed Amount") shall be subject to indexation in accordance with
paragraph 1 above. For the purposes of indexation occurring after the fifth anniversary of the Rate Commencement Date, BC shall be in the Indexed Amount, and P0 shall be the agreed
value of the Indicator most recently published by the fifth anniversary of the Rate Commencement Date, provisionally published values being ignored. 

28

 

Example (1) of Daily Production and Monthly Payment Calculations  

Production meets neither 12.3.2.(b)(i) nor 12.3.2.(b)(i) criterion  

	Day
 
	 	Available

Well

Capacity
	 	Agreed

Daily

Capacity
	 	TGR
	 	Target Gas

Rate (Min

AWC+GIC)
	 	Actual

Rate

Achieved
	 	FHR

Achieved?

(85%TGR)
	 	Comments
	 	Func

Spec

	1	 	160	 	120	 	120	 	A.D.C	 	120	 	Yes	 	 	 	110
	2	 	160	 	120	 	120	 	A.D.C.	 	120	 	Yes	 	 	 	110
	3	 	160	 	120	 	120	 	A.D.C.	 	105	 	Yes	 	Comp Trip	 	110
	4	 	160	 	120	 	120	 	A.D.C.	 	100	 	No	 	Comp Trip	 	110
	5	 	55	 	120	 	55	 	W.C.	 	55	 	Yes	 	Well testing	 	110
	6	 	160	 	120	 	120	 	A.D.C.	 	105	 	Yes	 	Comp Trip	 	110
	7	 	160	 	120	 	120	 	A.D.C.	 	90	 	No	 	Comp wash	 	110
	8	 	160	 	120	 	120	 	A.D.C.	 	95	 	No	 	Comp Trip	 	110
	9	 	160	 	120	 	120	 	A.D.C.	 	120	 	Yes	 	 	 	110
	10	 	160	 	120	 	120	 	A.D.C.	 	98	 	No	 	Comp Trip	 	110
	11	 	160	 	130	 	130	 	A.D.C.	 	130	 	Yes	 	(1) PPC funded upgrade	 	110
	12	 	160	 	130	 	130	 	A.D.C.	 	58	 	No	 	Comp Trip	 	110
	13	 	160	 	130	 	130	 	A.D.C.	 	130	 	Yes	 	 	 	110
	14	 	160	 	130	 	130	 	A.D.C.	 	110	 	No	 	Comp Trip	 	110
	15	 	55	 	130	 	55	 	W.C.	 	45	 	No	 	Well testing / Comp Trip	 	110
	16	 	55	 	130	 	55	 	W.C.	 	55	 	Yes	 	Well testing	 	110
	17	 	160	 	130	 	130	 	A.D.C.	 	130	 	Yes	 	 	 	110
	18	 	160	 	130	 	130	 	A.D.C.	 	130	 	Yes	 	 	 	110
	19	 	160	 	130	 	130	 	A.D.C.	 	80	 	No	 	Comp Trip	 	110
	20	 	160	 	130	 	130	 	A.D.C.	 	70	 	No	 	Comp Trip	 	110
	21	 	160	 	150	 	150	 	A.D.C.	 	150	 	Yes	 	(2) EO funded upgrade	 	140
	22	 	160	 	150	 	150	 	A.D.C.	 	58	 	No	 	Comp Trip	 	140
	23	 	160	 	150	 	150	 	A.D.C.	 	150	 	Yes	 	 	 	140
	24	 	160	 	150	 	150	 	A.D.C.	 	150	 	Yes	 	 	 	140
	25	 	160	 	150	 	150	 	A.D.C.	 	120	 	No	 	Comp Trip	 	140
	26	 	55	 	150	 	55	 	W.C.	 	55	 	Yes	 	Well testing	 	140
	27	 	55	 	150	 	55	 	W.C.	 	30	 	No	 	Well testing / Comp Trip	 	140
	28	 	160	 	150	 	150	 	A.D.C.	 	90	 	No	 	Comp Wash	 	140
	29	 	160	 	150	 	150	 	A.D.C.	 	80	 	No	 	Comp Trip	 	140
	30	 	160	 	150	 	150	 	A.D.C.	 	80	 	No	 	Comp Trip	 	140
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	

	Totals	 	4275.00	 	4000.00	 	3595.00	 	 	 	2909.00	 	 	 	 	 	3600.00

29

 

	Is 85% TGR achieved ?	 	No
	Is (100/110)% Monthly Avg Func Spec achieved ?	 	No
	Proportion of Hire Rate Payable (%)	 	0.95
	Surplus earned (Days)	 	0
	Volume of Incentive Earned (MMscf)	 	0.00
	Volume of Windfall Production Earned (MMscf)	 	0.00

Notes;

	(1)
	PPC
funded upgrade, hence Functional Spec remains unchanged.

	(2)
	EO
funded upgrade, hence Functional Spec. is changed to new tested design level. 

30

   Example (2) of Daily Production and Monthly Payment Calculations  

 Production meets the 12.3.2.(b)(i) criterion  

	Day
 
	 	Available

Well

Capacity
	 	Agreed

Daily

Capacity
	 	TGR
	 	Target

Gas Rate

(Min

AWC+GIC)
	 	Actual Rate

Achieved
	 	FHR

Achieved?

(85%TGR)
	 	Comments
	 	Func

Spec

	1	 	160	 	120	 	120	 	A.D.C	 	120	 	Yes	 	 	 	110
	2	 	160	 	120	 	120	 	A.D.C.	 	120	 	Yes	 	 	 	110
	3	 	160	 	120	 	120	 	A.D.C.	 	120	 	Yes	 	 	 	110
	4	 	160	 	120	 	120	 	A.D.C.	 	100	 	No	 	Comp Trip	 	110
	5	 	55	 	120	 	55	 	W.C.	 	55	 	Yes	 	Well testing	 	110
	6	 	160	 	120	 	120	 	A.D.C.	 	120	 	Yes	 	 	 	110
	7	 	160	 	120	 	120	 	A.D.C.	 	90	 	No	 	Comp wash	 	110
	8	 	160	 	120	 	120	 	A.D.C.	 	95	 	No	 	Comp Trip	 	110
	9	 	160	 	120	 	120	 	A.D.C.	 	120	 	Yes	 	 	 	110
	10	 	160	 	120	 	120	 	A.D.C.	 	98	 	No	 	Comp Trip	 	110
	11	 	160	 	130	 	130	 	A.D.C.	 	130	 	Yes	 	(1) PPC funded upgrade	 	110
	12	 	160	 	130	 	130	 	A.D.C.	 	130	 	Yes	 	 	 	110
	13	 	160	 	130	 	130	 	A.D.C.	 	108	 	No	 	Comp Trip	 	110
	14	 	160	 	130	 	130	 	A.D.C.	 	130	 	Yes	 	 	 	110
	15	 	55	 	130	 	55	 	W.C.	 	45	 	No	 	Well testing/Comp Trip	 	110
	16	 	55	 	130	 	55	 	W.C.	 	55	 	Yes	 	Well testing	 	110
	17	 	160	 	130	 	130	 	A.D.C.	 	90	 	No	 	Comp Trip	 	110
	18	 	160	 	130	 	130	 	A.D.C.	 	130	 	Yes	 	 	 	110
	19	 	160	 	130	 	130	 	A.D.C.	 	130	 	Yes	 	 	 	110
	20	 	160	 	130	 	130	 	A.D.C.	 	105	 	No	 	Comp Trip	 	110
	21	 	160	 	150	 	150	 	A.D.C.	 	150	 	Yes	 	(2) EO funded upgrade	 	150
	22	 	160	 	150	 	150	 	A.D.C.	 	150	 	Yes	 	 	 	150
	23	 	160	 	150	 	150	 	A.D.C.	 	150	 	Yes	 	 	 	150
	24	 	160	 	150	 	150	 	A.D.C.	 	150	 	Yes	 	 	 	150
	25	 	160	 	150	 	150	 	A.D.C.	 	150	 	Yes	 	 	 	150
	26	 	55	 	150	 	55	 	W.C.	 	55	 	Yes	 	Well testing	 	150
	27	 	55	 	150	 	55	 	W.C.	 	45	 	No	 	Well testing/Comp Trip	 	150
	28	 	160	 	150	 	150	 	A.D.C.	 	90	 	No	 	Comp Wash	 	150
	29	 	160	 	150	 	150	 	A.D.C.	 	150	 	Yes	 	 	 	150
	30	 	160	 	150	 	150	 	A.D.C.	 	130	 	Yes	 	 	 	150
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	

	Totals	 	4275.00	 	4000.00	 	3595.00	 	 	 	3311.00	 	 	 	 	 	3700.00
	

Is 85% TGR achieved ?	
 	

Yes	
 	

 	
 	

 
	Is (100/110)% Monthly Avg Func Spec achieved ?	 	No	 	 	 	 
	Proportion of Hire Rate Payable (%)	 	100.00	 	 	 	 
	Surplus earned (Days)	 	2.10	 	 	 	 
	Volume of Incentive Earned (MMscf)	 	3.60	 	 	 	 
	Volume of Windfall Production Earned (MMscf)	 	0.00	 	 	 	 

Notes;

	(1)
	PPC
funded upgrade, hence Functional Spec remains unchanged.

	(2)
	EO
funded upgrade, hence Functional Spec. is changed to new tested design level. 

31

 

Example (3) of Daily Production and Monthly Payment Calculations  

Production meets the 12.3.2.(b)(ii) criterion  

	Day
 
	 	Available

Well

Capacity
	 	Agreed

Daily

Capacity
	 	TGR
	 	Target

Gas Rate

(Min

AWC+GIC)
	 	Actual

Rate

Achieved
	 	FHR

Achieved?

(85%TGR)
	 	Comments
	 	Func

Spec

	1	 	160	 	120	 	120	 	A.D.C.	 	120	 	Yes	 	 	 	110
	2	 	160	 	120	 	120	 	A.D.C.	 	120	 	Yes	 	 	 	110
	3	 	160	 	120	 	120	 	A.D.C.	 	120	 	Yes	 	 	 	110
	4	 	160	 	120	 	120	 	A.D.C.	 	90	 	No	 	Comp Trip	 	110
	5	 	160	 	120	 	120	 	A.D.C.	 	120	 	Yes	 	 	 	110
	6	 	160	 	120	 	120	 	A.D.C.	 	120	 	Yes	 	 	 	110
	7	 	160	 	120	 	120	 	A.D.C.	 	90	 	No	 	Comp wash	 	110
	8	 	160	 	120	 	120	 	A.D.C.	 	95	 	No	 	Comp Trip	 	110
	9	 	160	 	120	 	120	 	A.D.C.	 	120	 	Yes	 	 	 	110
	10	 	160	 	120	 	120	 	A.D.C.	 	98	 	No	 	Comp Trip	 	110
	11	 	160	 	130	 	130	 	A.D.C.	 	130	 	Yes	 	(1) PPC funded upgrade	 	110
	12	 	160	 	130	 	130	 	A.D.C.	 	130	 	Yes	 	 	 	110
	13	 	160	 	130	 	130	 	A.D.C.	 	108	 	No	 	Comp Trip	 	110
	14	 	160	 	130	 	130	 	A.D.C.	 	130	 	Yes	 	 	 	110
	15	 	160	 	130	 	130	 	A.D.C.	 	45	 	No	 	Comp Trip	 	110
	16	 	160	 	130	 	130	 	A.D.C.	 	130	 	Yes	 	 	 	110
	17	 	160	 	130	 	130	 	A.D.C.	 	90	 	No	 	Comp Trip	 	110
	18	 	160	 	130	 	130	 	A.D.C.	 	130	 	Yes	 	 	 	110
	19	 	160	 	130	 	130	 	A.D.C.	 	130	 	Yes	 	 	 	110
	20	 	160	 	130	 	130	 	A.D.C.	 	105	 	No	 	Comp Trip	 	110
	21	 	160	 	150	 	150	 	A.D.C.	 	150	 	Yes	 	(2) EO funded upgrade	 	150
	22	 	160	 	150	 	150	 	A.D.C.	 	58	 	No	 	Comp Trip	 	150
	23	 	160	 	150	 	150	 	A.D.C.	 	150	 	Yes	 	 	 	150
	24	 	160	 	150	 	150	 	A.D.C.	 	100	 	No	 	Comp Trip	 	150
	25	 	160	 	150	 	150	 	A.D.C.	 	100	 	No	 	Comp Trip	 	150
	26	 	160	 	150	 	150	 	A.D.C.	 	150	 	Yes	 	 	 	150
	27	 	160	 	150	 	150	 	A.D.C.	 	50	 	No	 	Comp Trip	 	150
	28	 	160	 	150	 	150	 	A.D.C.	 	90	 	No	 	Comp Wash	 	150
	29	 	160	 	150	 	150	 	A.D.C.	 	150	 	Yes	 	 	 	150
	30	 	160	 	150	 	150	 	A.D.C.	 	150	 	Yes	 	Comp Trip	 	150
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	

	Totals	 	4800.00	 	4000.00	 	4000.00	 	 	 	3369.00	 	 	 	 	 	3700.00
	

Is 85% TGR achieved ?	
 	

No	
 	

 	
 	

 
	Is (100/110)% Monthly Avg Func Spec achieved ?	 	Yes	 	 	 	 
	Proportion of Hire Rate Payable (%)	 	100.00	 	 	 	 
	Surplus earned (Days)	 	0	 	 	 	 
	Volume of Incentive Earned (MMscf)	 	0.00	 	 	 	 
	Volume of Windfall Production Earned (MMscf)	 	5.36	 	 	 	 

Notes;

	(1)
	PPC
funded upgrade, hence Functional Spec remains unchanged.

	(2)
	EO
funded upgrade, hence Functional Spec. is changed to new tested design level. 

32

   Example (#1) of monthly production and annual reconciliation payment calculations  

Example 1; No Surplus used and all Monthly Incentive claimed  

	Month
 
	 	Available

Well

Capacity
	 	Agreed

Daily

Capacity
	 	TGR

(Min AWC+

ADC)
	 	Actual Rate

Achieved
	 	Prod Effy

%
	 	FHR

85% TGR
	 	FHR

Shortfall

mmscf
	 	FHR

Shortfall

Days
	 	FHR

Achieved?

(85% TGR)
	 	Comments
	 	Func

Spec
	 	Surplus
	 	Surplus

(Days)
	 	Cum

Surplus
	 	Cum

Surplus

(Days)
	 	Incentive

Target
	 	Incentive

earned

Avg
	 	Incentive

Earned
	 	Incentive

Claimed
	 	Windfall

	Jan	 	160	 	110	 	110	 	110	 	100.00	 	93.5	 	0	 	0.00	 	Yes	 	 	 	110	 	239	 	2.17	 	239	 	2.17	 	101.2	 	8.8	 	273	 	273	 	310
	Feb	 	160	 	110	 	110	 	110	 	100.00	 	93.5	 	0	 	0.00	 	Yes	 	 	 	110	 	216	 	1.96	 	454	 	4.13	 	101.2	 	8.8	 	246	 	246	 	280
	Mar	 	160	 	110	 	110	 	100	 	90.91	 	93.5	 	0	 	0.00	 	Yes	 	#	 	110	 	202	 	1.83	 	656	 	5.96	 	101.2	 	0	 	0	 	0	 	0
	Apr	 	160	 	110	 	110	 	100	 	90.91	 	93.5	 	0	 	0.00	 	Yes	 	#	 	110	 	195	 	1.77	 	851	 	7.73	 	101.2	 	0	 	0	 	0	 	0
	May	 	160	 	120	 	120	 	120	 	100.00	 	102	 	0	 	0.00	 	Yes	 	(1) PPC funded upgrade	 	110	 	260	 	2.17	 	1111	 	9.90	 	110.4	 	9.6	 	298	 	298	 	620
	Jun	 	55	 	120	 	55	 	55	 	100.00	 	46.76	 	0	 	0.00	 	Yes	 	Well problems	 	110	 	116	 	2.10	 	1227	 	12.00	 	50.6	 	4.4	 	132	 	132	 	0
	Jul	 	160	 	120	 	120	 	120	 	100.00	 	102	 	0	 	0.00	 	Yes	 	Good Month	 	110	 	260	 	2.17	 	1487	 	14.00	 	110.4	 	9.6	 	298	 	298	 	620
	Aug	 	160	 	120	 	120	 	115	 	95.83	 	102	 	0	 	0.00	 	Yes	 	#	 	110	 	260	 	2.17	 	1680	 	14.00	 	110.4	 	4.6	 	143	 	143	 	465
	Sep	 	160	 	150	 	150	 	140	 	93.33	 	127.5	 	0	 	0.00	 	Yes	 	EO funded upgrade	 	150	 	315	 	2.10	 	1995	 	14.00	 	133	 	2	 	60	 	60	 	109
	Oct	 	160	 	150	 	150	 	133	 	86.67	 	127.5	 	0	 	0.00	 	Yes	 	Poor month	 	150	 	78	 	0.52	 	2073	 	14.00	 	133	 	0	 	0	 	0	 	0
	Nov	 	160	 	150	 	150	 	150	 	100.00	 	127.5	 	0	 	0.00	 	Yes	 	Good Month	 	150	 	315	 	2.10	 	2100	 	14.00	 	138	 	12	 	360	 	360	 	409
	Dec	 	160	 	150	 	150	 	140	 	93.33	 	127.5	 	0	 	0.00	 	Yes	 	#	 	150	 	326	 	2.17	 	2100	 	14.00	 	138	 	2	 	62	 	62	 	113
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	

	Totals	 	 	 	 	 	44310	 	42315	 	96	 	37664	 	0	 	0	 	 	 	 	 	45030	 	2781	 	 	 	2100	 	14.00	 	40765.2	 	 	 	1871	 	1871	 	2926
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Days
	 	Volume (MMscf)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Total of Monthly FHR shortfalls at year end	 	0.00	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Days of Surplus at year end (Capped at 14 days)	 	14.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Volume of Monthly Incentives claimed at year end	 	 	 	1871	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Volume of Monthly Incentives not claimed at year end	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Surplus offered against FHR Shortfall	 	0.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reconciled Monthly FHR Shortfall (1) at year and (Days./MMscf)	 	0.00	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reconciled Surplus at year and (Days)	 	14.00	 	Carries forward until used	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Volume of Unclaimed Monthly Incentive offered against FHR Shortfalls (MMscf)	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reconciled Monthly FHR shortfalls (2) at year end (MMscf)	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reconciled Unclaimed Monthly Incentive to be claimed at Year end (MMscf)	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Annual Incentive Earned at 91% (MMscf)	 	 	 	1993	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Volume of Windfall Production Earned (MMscf)	 	 	 	2926	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Above example assumes no surplus of Incentive volumes are used to offset monthly FHR losses 

#
Where monthly Actual is less than TGR, and there are no specific comments, topsides trips are inferred. 

	(1)
	PPC
funded upgrade, hence Functional Spec remains unchanged.

	(2)
	FO
funded upgrade, hence Functional Spec, is changed in new tested design level. 

33

 

Example (#2) of monthly production and annual reconciliation payment calculations  

Example 2; End of year Surplus and unclaimed Monthly Incentive used to make up FHR annual losses  

	Month
 
	 	Available

Well

Capacity
	 	Agreed

Daily

Capacity
	 	TGR

(Min AWC+

ADC)
	 	Actual Rate

Achieved
	 	Prod Effy

%
	 	FHR

85% TGR
	 	FHR

Shortfall
	 	FHR

Shortfall

Days
	 	FHR

Achieved?

(85%TGR)
	 	Comments
	 	Func

Spec
	 	Surplus
	 	Surplus

(Days)
	 	Cum

Surplus
	 	Cum

Surplus

(Days)
	 	Incentive

Target
	 	Incentive

earned

Avg
	 	Incentive

Earned
	 	Incentive

Claimed
	 	Windfall

	Jan	 	160	 	110	 	110	 	105	 	95.45	 	93.5	 	0	 	0.00	 	Yes	 	#	 	110	 	239	 	2.17	 	239	 	2.17	 	101.2	 	3.8	 	118	 	118	 	155
	Feb	 	160	 	110	 	110	 	105	 	95.45	 	93.5	 	0	 	0.00	 	Yes	 	#	 	110	 	216	 	1.96	 	454	 	4.13	 	101.2	 	3.8	 	106	 	106	 	140
	Mar	 	160	 	110	 	110	 	105	 	95.45	 	93.5	 	0	 	0.00	 	Yes	 	#	 	110	 	239	 	2.17	 	693	 	6.30	 	101.2	 	3.8	 	118	 	118	 	155
	Apr	 	160	 	110	 	110	 	15	 	13.64	 	93.5	 	-1662	 	-15.11	 	No	 	used=40.7% FHR payable	 	110	 	0	 	0.00	 	0	 	0.00	 	101.2	 	0	 	0	 	0	 	0
	May	 	160	 	120	 	120	 	115	 	95.83	 	102	 	0	 	0.00	 	Yes	 	(1) PPC funded upgrade	 	110	 	260	 	2.17	 	260	 	2.17	 	110.4	 	4.6	 	143	 	0 (note 3	)	465
	Jun	 	55	 	120	 	55	 	50	 	90.91	 	46.75	 	0	 	0.00	 	Yes	 	wall problems	 	110	 	98	 	1.77	 	358	 	3.94	 	50.6	 	0	 	0	 	0	 	0
	Jul	 	160	 	120	 	120	 	120	 	100.00	 	102	 	0	 	0.00	 	Yes	 	 	 	110	 	260	 	2.17	 	618	 	6.11	 	110.4	 	9.6	 	298	 	0 (note 3	)	620
	Aug	 	160	 	120	 	120	 	115	 	95.83	 	102	 	0	 	0.00	 	Yes	 	#	 	110	 	260	 	2.17	 	879	 	8.28	 	110.4	 	4.6	 	143	 	143	 	465
	Sep	 	160	 	150	 	150	 	140	 	93.33	 	127.5	 	0	 	0.00	 	Yes	 	(2) EO funded upgrade	 	150	 	315	 	2.10	 	1194	 	10.38	 	138	 	2	 	60	 	60	 	109
	Oct	 	160	 	150	 	150	 	120	 	80.00	 	127.5	 	0	 	0.00	 	Yes	 	Poor month-Use surplus	 	150	 	0	 	0.00	 	961	 	8.83	 	138	 	0	 	0	 	0	 	0
	Nov	 	160	 	150	 	150	 	150	 	100.00	 	127.5	 	0	 	0.00	 	Yes	 	Good Month	 	150	 	315	 	2.10	 	1276	 	10.93	 	138	 	12	 	360	 	360	 	409
	Dec	 	160	 	150	 	150	 	140	 	93.33	 	127.5	 	0	 	0.00	 	Yes	 	#	 	150	 	326	 	2.17	 	1602	 	13.10	 	138	 	2	 	62	 	67	 	113
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	

	Totals	 	 	 	 	 	44310	 	39010	 	87.44	 	37664	 	-1662	 	-15.11	 	Yes	 	Enough surplus/incent to offset April FHR S/F	 	45030	 	2527	 	 	 	1602	 	13.10	 	40765.2	 	 	 	1407	 	957	 	2631
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Days
	 	Volume(mmscf)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total of Monthly FHR shortfalls at year end	 	-15.11	 	-1662	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Days of Surplus at year end (Capped at 14 days)	 	13.10	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Volume of Monthly incentives claimed at year end	 	 	 	967	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Volume of Monthly incentives not claimed at year end	 	 	 	440	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Surplus Offset against FHR shortfall	 	13.10	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reconciled Monthly FHR shortfalls (1) at year end (Days)	 	-2.01	 	-61	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reconciled Surplus at year end (Days)	 	0.00	 	Carries forward until used	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Volume of Unclaimed Monthly Incentive offset against FHR shortfalls (MMscf)	 	 	 	61	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reconciled Monthly FHR shortfalls (2) of year end (MMscf)	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reconciled Unclaimed Monthly Incentive to be claimed at year end (MMscf)	 	 	 	379	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Annual Incentive earned at 31% (MMscf)	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Volume of Windfall production Earned (MMscf)	 	 	 	2631	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Notes:

Above
example requires use of surplus, and unclaimed monthly incentives to offset FHR losses 

#
Where monthly Actual is less than TGR, and there are no specific comments, topsides trips are inferred. 

	(1)
	PPC
funded upgrade, hence Functional Spec remains unchanged. 
	(2)
	EO
funded upgrade, hence Functional Spec. is changed to new tested design level. 
	(3)
	Incentive
not claimed to allow for offset of FHR monthly losses at annual reconciliation 

Summary  

Annual
gas efficiency = 87.44 (>85%), so the 59.3% not paid in April can be claimed via surplus and unclaimed monthly incentive. 

Reconciled
Monthly Incentive of 376 MMscf outstanding at year end can be claimed. 

No
Annual performance incentive is payable. 

34

 

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35

  

Performance and windfall Incentives  

	HR year 1-5	 	[***]
	HR year 6-12	 	[***]
	HR year 13-15	 	[***]

 
 

Performance Incentives    
    

	Gas efficiency
 
	 	Monthly incentive
	 	Monthly incentive (30 days)
	 	Annual incentive
	 	Annual incentive (365 days)
	 	Max. incentive

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

[***] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

36

 

	Produced	 	105	 	GOR	 	3,000 Incentive	 	***
	No days	 	30	 	 	 	 	 	 	 	 

	
Monthly windfall incentives
	
MMscf

Produced
 
	
 	

GOR

2,500
	
 	

GOR

3,000
	
 	

GOR

3,500
	
 	

GOR

4,000
	
 	

GOR

4,500
	
 	

GOR

5,000

	100	 	—	 	—	 	—	 	—	 	—	 	—
	101	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	102	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	103	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	104	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	105	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	106	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	107	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	108	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	109	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	110	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	111	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	112	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	113	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	114	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	115	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	116	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	117	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	118	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	119	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	120	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	121	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	122	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	123	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	124	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	125	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

Windfall
is capped at [***]

[***] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

37

 
 
 

COMPARING ANNUAL WINDFALL AGAINST DIFFERENT PERFORMANCES    
    

	Potential incentives per year
	

Available vs actual production
	
Performance	
 	

110	
 	

115	
 	

120	
 	

125
	93%	 	102.3	 	107.0	 	111.6	 	116.3
	

Performance incentive	
 	
[***]	
 	
[***]	
 	
[***]	
 	
[***]
	
GOR
	
 	

Windfall incentives
	
2,700	
 	
[***]	
 	
[***]	
 	
[***]	
 	
[***]
	2,800	 	[***]	 	[***]	 	[***]	 	[***]
	2,900	 	[***]	 	[***]	 	[***]	 	[***]
	3,000	 	[***]	 	[***]	 	[***]	 	[***]
	3,100	 	[***]	 	[***]	 	[***]	 	[***]
	3,200	 	[***]	 	[***]	 	[***]	 	[***]
	3,300	 	[***]	 	[***]	 	[***]	 	[***]
	3,400	 	[***]	 	[***]	 	[***]	 	[***]
	3,500	 	[***]	 	[***]	 	[***]	 	[***]
	3,600	 	[***]	 	[***]	 	[***]	 	[***]
	3,700	 	[***]	 	[***]	 	[***]	 	[***]
	3,750	 	[***]	 	[***]	 	[***]	 	[***]
	3,800	 	[***]	 	[***]	 	[***]	 	[***]
	3,900	 	[***]	 	[***]	 	[***]	 	[***]
	4,000	 	[***]	 	[***]	 	[***]	 	[***]
	4,100	 	[***]	 	[***]	 	[***]	 	[***]
	4,200	 	[***]	 	[***]	 	[***]	 	[***]
	4,300	 	[***]	 	[***]	 	[***]	 	[***]
	4,400	 	[***]	 	[***]	 	[***]	 	[***]
	4,500	 	[***]	 	[***]	 	[***]	 	[***]
	4,600	 	[***]	 	[***]	 	[***]	 	[***]
	4,700	 	[***]	 	[***]	 	[***]	 	[***]
	4,800	 	[***]	 	[***]	 	[***]	 	[***]
	4,900	 	[***]	 	[***]	 	[***]	 	[***]
	5,000	 	[***]	 	[***]	 	[***]	 	[***]

[***] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

38

QuickLinks

Exhibit 10.58

Second Supplementary Agreement Relating to Contract No 97.22.02 For the Provision of Production, Storage, Offtake and Transportation Services for the Pierce Field between Enterprise Oil plc And Pierce Production
Company Limited

Contents

Performance Incentives

COMPARING ANNUAL WINDFALL AGAINST DIFFERENT PERFORMANCES

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