Opted and current at the effective date of the

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opted and current at the Effective Date of the assignment; (c) the Assignee provides performance guarantee and legal opinion in terms of this Article; (d) the addendum to the Contract giving effect to the assignment of Participating Interest is executed by all Parties; then the Government shall release the guarantee given by the assignor under Article 28.1 (a) to the extent of the amount of the guarantee provided by the assignee and where relevant the guarantee under Article28.1 (b). ARTICLE 29 TERM AND TERMINATION OF THE CONTRACT 29.1 The duration of this Contract shall commence from the date of execution of this Contract and shall continue for the period of the License and any Lease granted thereunder, unless the Contract is terminated earlier in accordance with its terms, and shall be deemed to have been terminated, if for any reason, the Contractor ceases to hold such License or Lease. 29.2 Subject to the provision of Articles 5, 14 and 29.6 and without prejudice to the provisions of Article 29.7 or any other provisions of this Contract, the Contractor shall have the right to terminate this Contract: (a) with respect to any part of the Contract Area other than a Development Area then producing, or that prior thereto had produced Petroleum, upon giving ninety (90) days written notice of its intention to do so; and (b) with respect to any Development Area in which Petroleum is being produced, or that prior thereto had produced Petroleum, or from where the production becomes uneconomical to produce, upon giving at least one hundred and eighty (180) days written notice of its intention to do so. 29.3 Any event of default that is not a Major Default (as defined under Article 29.4 below) shall be a default entitling the Government to impose fines and costs in respect thereof ( “Minor Default” ). The Contractor shall pay the fines and costs in relation to a Minor Default within a period of thirty (30) days from the determination and notice received by the Government failing which the Government shall be entitled to encash the bank guarantees (whether in part or in full). The Contractor shall reinstate the bank guarantees so encashed to their original values within a period of thirty (30) days from the date of such encashment or as otherwise specified by the Government. The Government may also require the Contractor to submit
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59 additional bank guarantees or bank guarantee(s) of higher amount than as were originally submitted upon occurrence of each such default. The quantum of fines and costs to be imposed under this Article 29.3, shall be determined as follows: (a) in respect of events that have specific fines or costs identified in respect thereof in other provisions of this Contract, only such identified fines or costs shall be imposed; (b) in respect of other events, the Management Committee shall review the impact of the default and, after giving an opportunity to the Contractor to make its submissions to the Government in this regard, determine the quantum of fine and costs with supporting reasoning and it shall be for the
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  • Winter '14
  • Bijay K Behra
  • Government, Petroleum Operations, Contract Area

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