The performance of the Extended Well Test without the use or reinjection of the Natural Gas shall be limited to a term of one hundred and eighty (180) days, unless in exceptional cases, at ANP’s discretion. SECTION THIRTEEN – DECLARATION OF COMMERCIAL FEASIBILITY Declaration of Commercial Feasibility Upon compliance with the Discovery Assessment Plan approved by ANP, the Operating Committee may, at its sole discretion, submit the Declaration of Commercial Feasibility for the Discovery. The Consortium Members, on behalf of the Operating Committee, shall take the measures required for submitting the Declaration of Commercial Feasibility to ANP. If it has not been submitted to ANP yet, the Final Discovery Assessment Report shall accompany the Declaration of Commercial Feasibility. The Declaration of Commercial Feasibility only be effective after ANP’s approval for the Final Discovery Assessment Report. Failure to submit the Declaration of Commercial Feasibility within the term established in this Agreement shall entail the lawful termination of the Agreement regarding the relevant area retained for the Discovery Assessment. Submission of one or more Declarations of Commercial Feasibility, shall not exempt the Consortium Members from performing the Minimum Exploration Program. Postponement of the Declaration of Commercial Feasibility If the main accumulation of hydrocarbons discovered and assessed in a Contract Area is Natural Gas, the Consortium Member may request to ANP an authorization to postpone the Declaration of Commercial Feasibility in up to five (5) years, in the following cases: a) lack of market for the Natural Gas to be produced, expected to be created in less than five (5) years; b) lack or inadequacy of infrastructure for handling of the Natural Gas to be produced by the Consortium Member, expected to be implemented in less than five (5) years. If the main accumulation of hydrocarbons discovered and assessed in a Contract Area is Oil, the Consortium Member may request to ANP an authorization to postpone the Declaration of Commercial Feasibility in up to five (5) years, in the following cases: lack of technology for the Production, Outflow, or refining, expected to be created in less than 5 (five) years.
Table 1: Form of Exploration Plan Spreadsheet DESCRIPTION UNIT ACTIVITIES – EXPLORATION PLAN BUDGET – EXPLORATION PLAN (R$ THOUSANDS) EXPECTED LOCAL CONTENT YEAR YEAR ONE TWO THREE FOUR ONE TWO THREE FOUR 1 – SURVEYS 1.1 – GEOPHYSICAL 1.1.1 – GRAVIMETRY ACQUISITION km PROCESSING mh INTERPRETATION mh 1.1.2 – MAGNETOMETRY ACQUISITION km PROCESSING mh INTERPRETATION mh 1.1.3 – OFFSHORE SEISMIC ACQUISITION 2D ACQUISITION km PROCESSING mh INTERPRETATION mh 3D ACQUISITION km2 PROCESSING mh INTERPRETATION mh 1.1.4 – ONSHORE 2D ACQUISITION km
Empresa Brasileira de Administração de Petróleo e Gás Natural S.A. – Pré-sal Petróleo S.A. – PPSA SAUS Quadra 04, Edifício Victoria Office sala 725 (principal place of business) Brasília – DF, CEP Avenida Rio Branco, nº 1, 4º andar, Centro (Main Office) Rio de Janeiro – RJ, CEP National Agency of Petroleum, Natural Gas and Biofuels – ANP Avenida Rio Branco nº 65, 12º ao 22º andar, Centro Rio de Janeiro – RJ, 20090-004 [insert the corporate name of the Contractor] [insert the full address of the Contractor] ANNEX IX – LOCAL CONTENT COMMITMENT Minimum Content (%) Exploration 18 Development Phase Construction of Well 25 Production Collection and Outflow System 40 Stationary Production Unit 25
communications shall be deemed received when delivered in person or on the first business day after acknowledgement of their receipt. Any Party is entitled to change its address at any time and/or require that copies of such notices are sent to another person in any other address; provided that it is informed in writing to all other Parties. Pré-Sal Petróleo S.A. (COMPANY INFORMATION) <corporate name of the contractor> <address> <CEP> – <city> – <State>, Brazil Att.: <representative> Ph.: <telephone> Fax: <fax> IN WITNESS WHEREOF, the Parties sign this Consortium Agreement through their legal representatives, on the date below, in ___________ (__) original counterparts of equal form and content, together with the undersigned witnesses. Brasília or Rio de Janeiro, ______________ ____, 20__. ________________________________ Representative of Pré-Sal Petróleo S.A. ______________________________________ Name Title Corporate name of the Contractor Witnesses: ___________________________________ ______________________________________ Name: Name: