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 95 22 4370








UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





FORM 10-QSB


(Mark One) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE


m


SECURITIES EXCHANGE ACT OF 1934





For the quarterly period ended September 30| 1995 S*t





□ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF


THE SECURITIES EXCHANGE ACT OF 1934


For the transition period from_to_








Commission file number 0-20928





VAALCO Energy, Inc. Cg





(Exact name of small business issuer as specified in its charter)


Delaware S~6 *3 ~~ ,4>~ 76-0274813





(Stale or other jurisdiction of PROr‘poor n OV (LILS. Employer


incorporation or organization) IdertificminnNo.)


NQV 16 1995


4600 Post Oak Place


Suite309 DlSCLUounc ffio. ^_


Houston, Texas I'lT'') 77027


(Address of principal executive offices) \ (Zip Code)





Issuer's telephone number (713) 6234)801











Check whether the issuer (1) filed all reports required to be filed by Section 13 or I$(d) of the Exchange Act


during (be past 12 months (or for such shorter period that the registrant was (expired to file such repotts). and (2) has been


subject to such filing requirements far the past 90 days. Yes __No_x_.


As of November 10,1995, there were otKstandmg 8,865,469 shares of Common Slock, S.10psr value per share,


i of the registrant


|

















1


 VAALCO ENERGY, INC. AND SUBSIDIARIES





Table of Contents














PARTI. FINANCIAL INFORMATION


CONSOLIDATED FINANCIAL STATEMENTS


Consolidated Balance Sheets


September 30,1995 (unaudited) and December 31, 1994................................... 3


Statements of Consolidated Operations (unaudited)


Three and nine months ended September 30,1995 and 1994............................... 4


Statements of Consolidated Cash Flows (unaudited)


Nine months ended September 30,1995 and 1994 .............................................. 5


Notes to Consolidated Financial Statements.............................................................. 6





MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL


CONDITION AND RESULTS OF OPERATIONS............................................ 9


PART n. OTHER INFORMATION................................................................... 15




































































2 2


PAST I. FINANCIAL INFORMATION





ITEM 1. FINANCIAL STATEMENTS


VAALCO ENERGY, INC. AND SUBSIDIARIES


CONSOLIDATED BALANCE SHEETS





(in thousands of dollars, except par value amounts)


September 30, December 31,


1994


(Unoadited)


ASSETS





CURRENT ASSETS:


Cash and equivalents $ 1,741 $ 1,974


Funds in escrow 67


Receivables:


Trade 27 1434


Accounts with partners 494 ---


Notes 878 963


Other 1421 1,155


Crude oil inventory 564 214


Materials and supplies 827 912


Prepaid expenses and other 133 196


Total current assets 6.786 AU15


PROPERTY AND EQUIPMENT-SUCCESSFUL EFFORTS METHOD





Wells, platforms and other production facilities 45445 42,987


Wells in progress 747 60


Equipment and other 708


454WZ "33,755


Accumulated dcprcciation,depletioo and (41486) (40.479)


Net property and equipment T27&


OTHER ASSETS:


Marketable securities 1414 729


Other long-term assets 232 239


Advances-related party 1489 1,756


Marketable securities-related party 666


TOTAL S 13.681


LIABILITIES AND STOCKHOLDERS’ EQUITY





CURRENT LIABILITIES:





Accounts payable $ 4427 $ 2.100


Accounts with partners ••• 76


Accrued liabilities 1483 761


Current portion of debt obligations ••• 3.000


Total current liabilities 6.71U 3.937


LONG TERM DEBT 4,000 1,200


FUTURE ABANDONMENT COSTS 4,172 4.172


Total liabilities i£ht 11.309





COMMITTMENTS AND CONTINGENCIES


STOCKHOLDERS' EQUITY:


Prefeared stock, S25 par value, ] 0% cumulative dividend.


500,000 authorized shares; 90,000 shares issued and outstanding


Common stock, $.10 par vaiue, 15,000,000 authorized shares; 2450 2,250


8,870,864shares issued of which 5,395 are in the treasury


in 1995 and 1994 887 887


Additional paid-in capital 11,401 11,401


Accumulated deficit (14410) (11.943)


Net unrealized gain (loss) on noncurrent marketable securities 95 (210)


Less treasury stock, at cost (13) (13)


Total stockholders' equity 410 2372


TOTAL 14492 $ 13.681


8


See notes to consolidated financial statements. 3


3


 VAALCO ENERGY, INC. AND SUBSIDIARIES


STATEMENTS OF CONSOLIDATED OPERATIONS





(Unaudited)


(in thousands of dollars, except per share amounts)





Three Months Ended September 30, Nine Months Fnded September 30,


1995 1994 1995 1994





REVENUES:


Crude oil sales $ 1541 $ 2J281 $ 3576 S 6.933


Total revenues 1,841 2.281 3576 6.933





OPERATING COSTS AND EXPENSES:


Production expenses 1552 2,165 3599 6503


Exploration costs 220 54 378 128


Depreciation, depletion, amortization and


impairment of properties 578 1,688 1,104 5.791


General and administrative expenses 457 482 1*421 1.129


Total operating costs 2507 4589 6.192 13.551


OPERATING LOSS (1564) (2,108) (2526) (6,618)


OTHER INCOME (EXPENSES)


Interest income 70 93 197 294


Interest expense and financing charges (79) (70) (270) (448)


Gain on sale of working interest 510 --- 510


Other, net 49 9 (19) 387


Total other income 550 32 427 233








LOSS BEFORE PROVISION FOR INCOME TAXES (516) (2.076) (2599) (6,385)


PROVISION FOR INCOME TAXES ■va


NET LOSS (516) (2,076) (2599) (6,385)


Preferred dividends (56) _m. (169) (169)


NET LOSS ATTRIBUTABLE TO COMMON


STOCKHOLDERS $ (572) $ (2.132) $ (2*268) $ (6.554)


LOSS PER COMMON SHARE $ (056) $ (0.24) $ (056) S (0.74)


WEIGHTED AVERAGE COMMON SHARES


OUTSTANDING 8565.469 8567568 8565.469 8569.784














See notes to consolidated financial statements.


4








4


 VAALCO ENERGY, INC. AND SUBSIDIARIES


STATEMENTS OP CONSOLIDATED CASH FLOWS


Unaudited


(in thousands of dollars)








Nine Months Ended September 30,


1995 1994


CASH FLOWS FROM OPERATING ACTIVITIES:


Net loss


$ (2,099) $ (6.385)


Adjustments to reconcile net income to net


cash provided by operating activities:


Depreciation, depletion, amortization and impairment of properties 1,104 5,791


Seismic and exploration costs 378 128


Gain on sale of working interest (510)


Change in assets and liabilities that provided (used) cash:


Funds in escrow 67 2,045


Accounts with partners 963 (1319)


Trade receivables 1,507 (1,148)


Other receivables 34 (73)


Crude oil inventory (349) 220


Materials and supplies 246 399


Prepaid expenses and other 63 54


Accounts payable (158) (482)


Accrued liabilities 447 540


Other, net _m.


Net cash provided by (used in) operating activities L693 (242)





CASH FLOWS FROM INVESTING ACTIVITIES:





Seismic and exploration costs (378) (128)


Proceeds from asset sales LOOO ---


Additions to property and equipment (2*27) (2,802)


Decrease in notes receivable 85 174


Other (net) a&L (36)


Net cadi used in investing activities (1*494) (2.792)


CASH FLOWS FROM FINANCING ACTIVITIES:





Repayments of debt obligations (200) (4,354)


Advances from related parties (232) 69


Purchase of treasury stock •mm 02)


Preferred stock dividends paid (169)


Other (24)


Net cash used in financing activities (432) (4.466)


NET CHANGE IN CASH AND EQUIVALENTS


(233) (7,500)


CASH AND EQUIVALENTS AT BEGINNING OF YEAR 1374 9.608


CASH AND EQUIVALENTS AT END OF PERIOD 2,108








SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION;


Net cadi paid for interest S 191





See notes to consolidatedfinancial statements. 5


5


VAALCO ENERGY, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


FOR THE NINE MONTHS ENDED SEPTEMBER 30,1995


1. UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS





The consolidated financial statements of VAALCO Energy, Inc. and Subsidiaries


(collectively, “VAALCO" or the "Company"), included herein are unaudited, but include


all adjustments which the Company deems necessary for a fair presentation of its financial


position and results of operations for the interim period. Such results are not necessarily


indicative of results to be expected for the full year. The Balance Sheet at December 31,


1994 has been taken from the audited financial statements at that date. These financial


statements should be read in conjunction with the financial statements and notes thereto


included in the Company's Form 10-KSB for the year ended December 31,1994.


2. CURRENT DEVELOPMENTS





The consolidated financial statements included in this report have been prepared assuming


that the Company will continue as agoing concern. As discussed below, throughout 1994


and into 1995 the Company experienced significant declines in oil production from the


West i-inapacan "A" field. Despite three sidetrack wells and two major workovers, the


production from the three producing wells declined from 6,500 barrels of oil per day


(“BOPD”) in June 1994 to approximately 1,500 BOPD in October 1995. As a result of


this decline, the financial condition and operating cash flows of the Company were


materially and adversely affected. The Company anticipates future oil production


decreases from the West Linapacan "A" field. The Company incurred capital costs of $1.5


million in June 1995 for the drilling of an additional development well in the West


Linapacan “A” field. This well was unsuccessful. No other capital expenditures are


required for 1995.


In an attempt to increase oil revenues to restore profitable operations in the Philippines,


the Company chartered a 13,000 barrel barge based storage system (See Note 5). The


barge has been utilized to produce the Nido field and to allow for the reactivation of the


Matinloc field. Use of the barge will enable the Matinloc and Nido fields to continue to


produce after the West Linapacan field is depleted. Currently, production from the


Matinloc and Nido fields is shuttled to the main storage tanker, at West Linapacan, which


can store up to 700,000 barrels of oil. In the third quarter, the Nido and Matinloc fields


produced 1,193 BOPD and 210 BOPD, respectively. Production from the West


Linapacan “A" field averaged approximately 1,717 BOPD. The Company's working


interests in the West Linapacan “A", Nido, and Matinloc fields are 29%, 34%, and 59%,


respectively.


To further reduce operating expenses, the Company renegotiated the Charter Agreement





with Terminal Installations, Inc. ("Tn”) to significantly lower day rates for the floating


production, storage and offloading system ("FPSO") (See Note 5).


Through a diversification program, undertaken by management, the Company has


acquired four blocks outside of the Philippines, two in India and two in Gabon. All four


of the blocks contain existing undeveloped discoveries. In July 1995, the Company


announced the approval of a development plan for the PY-3 field on its CY-OS/1 block


6 6





VAALCO ENERGY, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


FOR THE NINE MONTHS ENDED SEPTEMBER 30,1995


offshore India. The field contains an estimated 25.8 million barrels of proven undeveloped


reserves (4.6 million net to the Company). On July 4, 1995, the Government of India


approved the development plan submitted by the consortium. VAALCO has an 18%


interest in the development project The consortium is actively seeking financing for the


development project.


The Company is currently evaluating the commerciality of the discoveries on the


remaining three blocks. The Company believes that two of the Mocks (one in India and


one in Gabon) have exploration potential (See Item 2 Management’s Discussion and


Analysis of Financial Condition and Results of Operations - New Developments.)


In July 1995, the Company acquired a 51% working interest in two Modes offshore





Gabon. The Company successfully raised $1 million to acquire the acreage through die


sale of the remaining 49% working interest in the Mock to its partner. A $510,000 gain


was recognized in the third quarter as a result of this sale.





3. CRUDE OIL INVENTORY


Crude oil inventory at September 30,1995 and December 31,1994 represents the cost of





42,435 and 14,172 barrels, respectively, of crude oil in storage. The estimated market


value of the inventory was approximately $637,000 as of September 30, 1995 and


$214,000 as of December 31, 1994. At December 31, 1994, VAALCO's crude oil


inventory cost was in excess of its market value.


4. DEBT OBLIGATIONS





The Company has a note payable from a European institutional lender, which bears


interest at LIBOR plus 2%. In August 1995, the Company and the note holder reached an


agreement in principle to defer the entire balance of the note until January 31, 1997 in


return for the pledge of marketable securities held by the Company. The note contains


certain covenants, including a positive working capital requirement and the debtor's right


to call the note in the event the debtor concludes that a material adverse event has


occurred to the Company which will affect the Company's ability to repay the note. The


loan is guaranteed by the Company and is secured by:


a) Marketable securities owned by the Company, and


b) Chattel Mortgages on the interest of APPI-14 and API-14 on certain


production equipment


5. COMMITMENTS AND CONTINGENCIES





The Company is a party to the Charter Agreement with Terminal Installations, Inc. (''Til")


to charter the floating production, storage and offloading system for the West Linapacan


"A" field, the Nido field, and the Matinloc field. The Company anticipates funding its


obligations under the Charter Agreement through revenues generated from production


from these fields. As an additional measure to improve field profitability, the Company


was successful in negotiating the bareboat rate from approximately $35,000 per day to


7 7


VAALCO ENERGY, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


FOR THE NINE MONTHS ENDED SEPTEMBER 30,1995





$10,000 per day, effective January 1, 1995 through May 31, 1995. This was reduced to


$5,000 per day through August 15, 1995. The tanker charter rate was converted to a


revenue based formula beyond August 15, 1995. In addition, the consortium pays


approximately $13,000 per day for operating personnel manning the tanker, which cost


varies yearly.





The Company is a party to a charter agreement with Sea Glory Private Limited to charter


a 13,000 barrel barge based storage system for the Nido and Matinloc fields. The


consortium pays a bareboat rate of $800 per day.


































































































8 8


 VAALCO ENERGY, INC. AND SUBSIDIARIES


MANAGEMENTS DISCUSSION AND ANALYSIS OF


FINANCIAL CONDITION AND RESULTS OF OPERATIONS


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL





CONDITION AND RESULTS OF OPERATIONS


CAPITAL RESOURCES AND LIQUIDITY





Overview





The consolidated financial statements included in this report have been prepared assuming


that the Company will continue as a going concern. As discussed below, throughout 1994


and into 1995 the Company experienced significant declines in oil production from the


West Linapacan "A" field. Despite three sidetrack wells and two major workovers, the


production from the three producing wells declined from 6,500 BOPD in June 1994 to


approximately 1,500 BOPD in October 1995. As a result of the lack of success of the


sidetrack wells and workovers, the financial condition and operating cash flows of the


Company were materially and adversely affected. The Company relies upon revenues


from production operations in the Philippines, borrowings, sales of working interests or


other sources of equity capital to fund its operations. Barring additional sources of funds


outside the Philippines operations, the Company may experience delays in the payments to


creditors on trade debt until revenues are available from the Indian or Gabon projects


discussed below.





The Company anticipates future oil production decreases from the West Linapacan "A"


field. An additional development well was unsuccessfully drilled in the field in June, 1995


in an attempt to increase oil production levels and maintain profitable operations. The


Company incurred capital costs of $1.5 million in 1995 for the drilling of this additional


development well. No other capital expenditures are required for 1995.


In an attempt to increase oil revenues to restore profitable operations in the Philippines,


the Company chartered a 13,000 barrel barge based storage system (See Note 5). The


barge has been utilized to produce the Nido field and to allow for the reactivation of the


Matinloc field. Use of the barge will enable the Matinloc and Nido fields to continue to


produce after die West Linapacan field is depleted. Currently, production from the


Matinloc and Nido fields is shutded to the mam storage tanker, at West Linapacan, which


can store up to 700,000 barrels of cal. hi the third quarter, the Nido and Matinloc fields


produced 1,193 BOPD and 210 BOPD, respectively. Production from the West


Linapacan “A” field averaged approximately 1,717 BOPD. The Company’s working


interests in the West Linapacan "A", Nido, and Matinloc fields are 29%, 34%, and 59%,


respectively.





Based on the declining production from the Company's Philippine assets, management is


focusing its efforts on newly acquired interests. As a result, in July 1995, approximately


35% of the Company’s employees were retired from the Philippines operations office


under a severance program. The cost of the severance package was pre-accrued under the


pension fund for the Philippine employees.








9 9





 VAALCO ENERGY, INC. AND SUBSIDIARIES


MANAGEMENT'S DISCUSSION AND ANALYSIS OF


FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Charter Agreement


The Company is a party to the Charter Agreement with Terminal Installations, Inc. ("Til")


to charter the floating production, storage and offloading system for the West Linapacan


"A" field, the Nido field, and the Matinloc field. The Company anticipates funding its


obligations under the Charter Agreement through revenues generated from production


from these fields. As an additional measure to improve field profitability, the Company


was successful in negotiating the bareboat rate from approximately $35,000 per day to


$10,000 per day, effective January 1, 1995 through May 31, 1995. This was reduced to


$5,000 per day through August 15, 1995. The tanker charter rate was converted to a


revenue based formula beyond August 15, 1995. In addition, the consortium pays


approximately $13,000 per day for operating personnel manning the tanker, which cost


varies yearly.


Credit Agreement


The Company entered into a credit agreement (the "Credit Agreement") on June 23, 1993


to borrow $6 million from a European institutional lender. The loan bears interest at


LIBOR plus 2%. The Company drew down $6 million against the facility in the third


quarter of 1993. Proceeds were utilized for further development of the West Linapacan


"A" field. The Credit Agreement provided for the repayment of such loan in five


semiannual principal installments beginning June 30, 1994. hi August, the Company


reached an agreement in principle to defer the remaining balance of the note until January


31, 1997 in return for the pledge of marketable securities held by the Company. The note


contains certain covenants, including a positive working capital requirement and the


debtor's right to call the note in the event the debtor concludes that a material adverse


event has occurred to the Company which will affect the Company's ability to repay the


note. The Company experienced a negative working capital position during the first


quarter of 1995. At December 31, 1994, a portion of the Company's proven reserves


were downgraded to the non-proven category by Netherland, Sewell & Associates


(“NSA”). While this downgrade could be interpreted as a material adverse event, the


holder of the note has given no indication that they will accelerate the note; however no


assurances can be given that the note holder will not do so in the future.


New Developments


The Company is actively seeking projects to replace its Philippines operations. In


December 1994, a Production Sharing Contract ("PSC") for the Cauvery Block was


signed with the government of India. Under the terms of the PSC, the consortium of


companies presented a development plan to the government of India in June 1995. The


development plan was approved by the Indian Government in July 1995. A detailed


commerciality study of die data available for the PY-3 Held, including a reserve report


prepared by NSA, concluded that the PY-3 field contains 25.8 million barrels of proved


undeveloped reserves (4.6 million net to the Company). The initial development plan calls


for the completion of two existing wells in the field and the drilling and completion of two


new wells. The four wells will be completed subsea and connected to a floating


10


 VAALCO ENERGY, INC. AND SUBSIDIARIES


MANAGEMENTS DISCUSSION AND ANALYSIS OF


FINANCIAL CONDITION AND RESULTS OF OPERATIONS





production storage system. First year production is expected to average 10,000 BOPD


commencing in late 1996 or early 1997. Total project cost is estimated to be


approximately $44 million. Tbe Company’s interest in the field is 18% after the Indian


national oil company elected to participate in 40% of the project. A significant element of


the project is that the consortium pays no royalties to the government, and there is no


profit sharing with the government until after tax project payout. Tbe consortium of


companies which hold the production rights to the PY-3 field are actively seeking


financing for the project There can be no assurance that the consortium or the Company


will be successful in obtaining the necessary financing to develop the PY-3 field.





In addition to the Cauvery Block, the Company was informed by the Ministry of Oil and


Gas of India of the award of the exploration block covering the Gulf of Cambay, on the


West Coast of India, to a consortium operated by the Company. Tbe Company and its


partners, TATA Petrodyne Ltd., Hindustan Oil Exploration Company Ltd. and Oil and


Natural Gas Commission of India, have interests of 45%, 31.5%, 13.5% and 10%,


respectively, in the block. The award of the block is subject to the signing of a production


sharing contract by the consortium with the government.


The Gulf of Cambay Mock is a 3,590 square kilometer (870,000 acres) shallow water


exploration Mock situated in the northern part of the Gulf of Cambay. The block contains


two discoveries drilled by the Indian national oil company in 1992, as well as multiple


additional structures which have to date not been tested. The discovery wells in each field


tested at rates ranging from approximately 1,400 BOPD to 1,900 BOPD, per well.





Onshore immediately adjacent to the block is the Ghandar field, which was discovered by


the Indian national oil company in 1984 and currently produces approximately 25,000


BOPD. The Ghandar field is the second largest producing field in India, and significant


infrastructure has been developed in association with the field, including pipeline facilities


for oil transport to a refining center. It is anticipated that any developments in the Gulf of


Cambay can be integrated into this infrastructure.





In July 1995, the Company acquired a 51% working interest in two blocks offshore


Gabon. The Company successfully raised $1 million to acquire the acreage through the


sale of the remaining 49% working interest in the block to its partner. A $510,000 gain


was recognized in the third quarter as a result of this sale. The partners will share pro-rata


in future production costs and revenues. The blocks both contain previous discoveries


which the Company will evaluate for development. The Equata Block lies in northern


Gabon in 120-160 feet of water depth. It contains 10,500 acres upon which five wells


have previously been drilled, two of which each flowed oil at rates in excess of 1,300


BOPD. The Etame Block is a 750,000 acre exploration block upon which multiple wells


have been drilled, two of which resulted in discoveries. The North and South Tchibala


discoveries were further appraised by 3 and 5 wells, respectively, during the 1980's. The


North and South Tchibala discoveries lie in approximately 250 feet of water depth.


The Company is currently evaluating the discoveries on both the Equata and Etame


blocks to determine their commerciality, and if deemed commercial, expects to present a


11


 VAALCO ENERGY, INC. AND SUBSIDIARIES


MANAGEMENTS DISCUSSION AND ANALYSIS OF


FINANCIAL CONDITION AND RESULTS OF OPERATIONS


development plan for one or both blocks by year end 1995. In addition, the Company and





its partner have an obligation to obtain 1,500 kilometers of seismic and drill one well on


the Etame block daring the three year term of the License.





In October 1994, the Company acquired a waking interest in approximately 1,200 acres


in Goliad County, Texas, in exchange for cash and warrants to purchase shares of the


Company's Common Stock, $.10 par value per share (the "Common Stock”). The


warrants, have a term of three years and consist of the right to purchase 200,000 shares of


Common Stock at an exercise price of $2.50 per share and 200,000 shares of Common


Stock at an exercise price of $5.00 per share, subject to the terms and conditions of die


acquisition agreement The acreage is located over a deep Wilcox sand gas prospect that


the Company wil] analyze during 1995. In addition to the deep gas potential, there is also


the potential for a shallow Yegua sand play which will be evaluated in conjunction with


the Wilcox prospect The Company has an average 76% net revenue interest in the


acreage. The three year leases have no drilling obligation requirements.


RESULTS OF OPERATIONS





Amounts stated hereunder have been rounded to the nearest $100,000, however,


percentage changes have been calculated using actual amounts.





Three Months Ended September 30,1995 Compered to Three Months Ended September 30,


1994


Revenues





Revenues from crude oil sales recorded for the three months ended September 30, 1995 were


$1.8 million, a decrease of $.5 million, or 19%, as compared to $2.3 million for tile same period in


1994. Crude oil production decreased from 1,783 barrels of oil per day ("BOPD") in the third


quarter of 1994 to 857 BOPD for the same period in 1995. Crude oil prices received by the


Company averaged $14.79 per barrel ("Bbl") for the third quarter of 1994 compared to $13.40


per Bbl for the same period in 1995. Throughout 1994 and into 1995, the Company has


experienced significant declines in oil production from the West Linapacan "A” field.


Expenses





Production expenses for the three months ended September 30, 1995 were $1.7 million, a


decrease of $.5 million, or 24%, as compared to $2.2 million for the same period in 1994. The


decrease is primarily due to reduced storage tanker rates in 1995.


Exploration costs for the three months ended September 30, 1995 were $.2 million, an increase of


$. 1 million as compared to $. 1 million for the same period in 1994. The increase is primarily due


to costs associated with the Company’s Gabon project.





Depreciation, depletion and amortization for the three months ended September 30, 1995 was $.6


million, a decrease of $1.1 million, or 66%, as compared to $1.7 million for the same period in


12


12


 VAALCO ENERGY, INC. AND SUBSIDIARIES


MANAGEMENTS DISCUSSION AND ANALYSIS OF


FINANCIAL CONDITION AND RESULTS OF OPERATIONS


1994. The decrease is primarily due to declining production rates at the West Linapacan "A"


field.





Other Income (Expenses!


The Company recognized a $.5 million gain from the sale of a 49% working interest in its Gabon





block..


Net Loss


Net loss attributable to common stockholders for the three months ended September 30, 1995





was $.6 million, a decrease of Sl.S million, or 73%, as compared to $2.1 million for the same


period in 1994. The Company had an operating loss of $1.1 million in the third quarter of 1995


compared to $2.1 million in the third quarter of 1994. The 1995 loss was offset by a $.5 million


gain on the sale of a 49% working interest in the Gabon block.








Nine Months Ended September 30, 1995 Compared to Nine Months Ended September 30,


1994


Revenues





Revenues from crude oil sales recorded for the nine months ended September 30,1995 were $3.6


million, a decrease of $3.3 million, or 48%, as compared to $6.9 million for the same period in


1994. Crude oil production decreased from 1,511 BOPD in the first nine months of 1994 to 944


BOPD for the same period in 1995. Crude oil prices received by the Company averaged $14.35


Bbl for the first nine months of 1994 compared to $15.76 per BH for the same period in 1995.


Throughout 1994 and into 1995, the Company has experienced significant declines in oil


production from the West Linapacan "A" field.


Expenses


Production expenses for the nine months ended September 30,1995 were $3.2 million, a decrease





of $3-3 million, or 51%, as compared to $6.5 million for die same period in 1994. The decrease


is primarily due to declining production rates and expenses incurred in the first half of 1994 for


diagnostic work done on the West Linapacan "A" wells.


Exploration costs for the nine months ended September 30, 1995 were $.4 million, an increase of





$.3 million as compared to $.1 million for the same period in 1994. The increase is primarily due


to costs associated with the Company’s Gabon project.








Depreciation, depletion and amortization for the nine months ended September 30,1995 was $1.)


million, a decrease of $4.7 million, or 81%, as compared to $5.8 million for the same period in


1994. The decrease is primarily due to declining production rates at the West Linapacan "A"


field.


13 13


 VAALCO ENERGY, INC. AND SUBSIDIARIES


MANAGEMENTS DISCUSSION AND ANALYSIS OF


FINANCIAL CONDITION AND RESULTS OF OPERATIONS





Other Income (Expenses!





The Company recognized a $.5 million gain from the sale of a 49% working interest in its Gabon


block. Interest expense and financing charges for the nine months ended September 30, 1995


were $.3 million, a decrease of S.2 million, or 40%, as compared to $.5 million for the same


period in 1994. This was primarily due to the extinguishment of debt in 1994.





Net Loss


Net loss attributable to common stockholders for the nine months ended September 30,1995 was


$2.3 million, a decrease of $4.3 million, or 65%, as compared to $6.6 million for the same period


in 1994. The Company had an operating loss of $2.5 million in the first nine months of 1995


compared to $6.6 million in the first nine months of 1994. The 1995 loss was offset by a $.5


million gain on the sale of a 49% working interest in the Gabon block.





Cash Flows


Net cash provided by operating activities for the nine months ended September 30,1995 was $1.7





million, as compared to net cash used in operating activities of $.2 million for the same period in


1994. This change is primarily due to collection of accounts receivable associated with the timing


of crude oil liftings.





Net cash used in investing activities for die nine months ended September 30, 1995 was $1.5


million, a decrease of $1.3 million, or 46%, as compared to $2.8 million for die same period in


1994. The decrease is primarily due to additions to property and equipment for the major work


program in 1994.


Net cash used in financing activities for the nine months ended September 30, 1995 was $.4


million, a decrease of $4.1 million, or 90%, as compared to $4.5 million fa* the same period in


1994. The change resulted primarily from lower short term debt repayment requirements in the


first nine months of 1995.



































14 14


 PART II. OTHER INFORMATION











ITEM 5. OTHER INFORMATION.





On September 13, 1995, the Company’s shares of common stock were delisted from the Nasdaq


SmaltCap Market. These shares are now traded on the OTC Bulletin Board.





ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.


(a) Exhibits





10.1 Exploitation and Production Sharing contract between the Republic of Gabon


and VAALCO Gabon (Equata), Inc. dated July 7,1995.


10.2 Exploration and Production Sharing contract between the Republic of Gabon


and VAALCO Gabon (Etame), Inc. dated July 7,1995.


10.3 Deed of Assignment and Assumption between VAALCO Gabon (Etame), Inc.,


VAALCO Energy (Gabon), Inc. and Petrofields Exploration & Development


Co., Inc. dated September 28,1995.


10.4 Deed of Assignment and Assumption between VAALCO Gabon (Equata), Inc.,


VAALCO Production (Gabon), Inc. and Petrofields Exploration &


Development Co., Inc. dated September 28, 1995





(b) Reports on Form 8-K





None















































15 15


 SIGNATURES





In accordance with the requirements of the Securities Exchange Act of 1934, the


registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly


authorized.


VAALCO ENERGY, INC.





(Registrant)


By (j. ^_





W. Russell Scbeirman, President,


Chief Financial Officer and Director





Dated November 13,1995

































































/<*• 16


yi


 UNITED STATES


SECURITIES AND EXCHANGE COMMISSION














FORM 10-QSB


QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE


SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended September 30,1995

















VAALCO Energy, Inc.

















EXHIBITS


 INDEX TO EXHIBITS

















10.1 Exploitation and Production Sharing contract between the Republic of Gabon 2.J7


and VAALCO Gabon (Equata), Inc. dated July 7, 1995.


10.2 Exploration and Production Sharing contract between the Republic of Gabon


and VAALCO Gabon (Etame), Inc. dated July 7, 1995.


10.3 Deed of Assignment and Assumption between VAALCO Gabon (Etame), Inc., for





VAALCO Energy (Gabon), Inc. and Petrofields Exploration & Development


Co., Inc. dated September 28, 1995. f?9


10.4 Deed of Assignment and Assumption between VAALCO Gabon (Equata), Inc.,


VAALCO Production (Gabon), Inc. and Petrofields Exploration &


Development Co., Inc. dated September 28, 1995





































































































18


EXHIBIT Id.2^












































































































































2S7


 EXPLORATION AND





PRODUCTION SHARING


CONTRACT





BETWEEN THE








REPUBLIC OP GABON


AND





VAALCO GABON (STAKE), INC


 TABLE OF CONTENTS











Definitions


Scope of Application of the Contract and General


1 Provisions


2 Technical Consulting Committee


3 Exploration Periods


4 Work Commitments During the Exploration Periods





5 Preparation and Approval of Annual Work Programs and


6 Corresponding Budgets


Re1inquishments


7 Insufficiency of Exploration Work


8 Contractor's Obligations During the Exploration Periods


9 Rights in Connection with the Exploration Periods


10 Ownership of the Assets


11 Activity Reports during the Exploration Periods


12 Natural Resources


13 Utilization of the Land





14 Utilization of Facilities


15 Expiration of Contract at the End of the Exploration


16 Periods


Discovery and Exploitation Obligation


17 Application for Exclusive Exploitation Authorization


18 and Delimitation of the Exploitation Areas


Terms of Validity of the Exclusive Exploitation


19 Au thorization


State Participation








2 25.9


20 Development Program


21 Obligations of the Contractor during the Development


and Exploitation Periods


22 Contractor Rights in Connection with Exclusive


Exploitation Authorizations


23 Production Marketing Obligation


24 Recovery of Petroleum Costs





25 Production Sharing


26 Fiscal System


27 Valorization of Hydrocarbons


28 Bonuses


29 Measurement and Metering of the Hydrocarbons


30 Natural Gas


31 Currency Exchange Control





32 Exemption from the Obligation Relative to Equipment


Bonds and Investment Certificates


33 Accounting Method and Monetary Unit Used for


Bookkeeping Purposes


34 Customs System and Import and Export Documents


35 Contributions to Meeting the Needs of the Domestic


Market


36 Export of Hydrocarbons, Transfer of Title and


Regulations for Making the Hydrocarbons Available


37 Protection of Rights





3 8 Personnel


39 Training of Gabonese Nationals Other than Those


Employed by the Contractor


40 Activity Reports Relative to Development and


Exploitation Periods








3 260


41 Payments


42 Assignment of Interests


43 Application of the Contract


44 Penalties and Termination


45 Operations for the Account of the State


46 Joint Liability and Guarantees


47 Force Majeure


48 Audits, verifications and controls


49 Arbitration


50 Effective Date





Attachment 1 : Delimited Area


Attachment 2 : Accounting Agreement


Attachment 3. : Commitment set forth in Article 46









































4 261


 EXPLORATION AND PRODUCTION








SHARING CONTRACT





BETWEEN





The Republic of Gabon, herein represented by PAUL TOUNGUI,


Minister of Mines, Energy and Petroleum,





as the party of the first part,


AND





1. Vaalco Gabon (Etame), Inc., a company incorporated under the


laws of the State of Delaware, United States of America, with


main office in Houston, Texas, United States Of America, at 4600


Post Oak Place, Suite 309, and represented by Charles W. Alcorn


Jr. duly authorized to this effect;


The company Vaalco Gabon (Etame), Inc. is a subsidiary guaranteed





by its parent company Vaalco Energy, Inc., whose net assets were


US$ 13,681,000 on December 31, 1994, incorporated under the laws


of the State of Delaware, United States of America, with main


office in Houston, Texas, United States of America, signatory of


the commitment set forth in Article 46 of the Contract and the


subject of Attachment 3;


2. Vaalco Energy (Gabon), Inc., a company incorporated under the





laws of the State of Delaware, United States of America, with


main office in Houston, Texas, United States Of America, at 4600


Post Oak Place, Suite 309, and represented by Charles W. Alcorn


Jr. duly authorized to this effect;





The company Vaalco Energy (Gabon), Inc. is a subsidiary


guaranteed by its parent company Vaalco Energy, Inc., whose net


assets were US$ 13,661,000 on December 31, 1994, incorporated


under the laws of the State of Delaware, United States of


America, with main office in Houston, Texas, United States of


America, signatory of the commitment set forth in Article 46 of


the Contract and the subject of Attachment 3;


as the party of the second part,





The two above mentioned companies constitute the Contractor; The


Republic of Gabon and the Contractor being also hereinafter


called jointly "the Parties" and individually "the Party".




















5


262


Whereas:





the State is the owner of the natural resources from the


surface subsurface of its territory, from offshore areas


under its sovereignty or which are part of its economic zone,





- the discovery and production of Hydrocarbon natural


resources are an important factor for the implementation of the


economic and social development policy of the country and for the


advancement of the welfare of its in habitants,


- to this end, exploration and exploitation of the national


resources are considered to be of public usefulness,


- pursuant to Law No. 15/62 of June 2, 1962, establishing a





Mining Code in the Republic of Gabon and subsequent amendments,


to Decree No. 981/PR of October 16, 1970, establishing the


conditions for application of the Mining Code, and to Law No.


14/82 of January 24, 1983 regulating Hydrocarbons exploration and


exploitation activities, the State wishes to undertake the


exploration, exploitation, transportation, storage and marketing


of Hydrocarbons,





- it is in the State's interest that the above-mentioned


operations be carried out in strict compliance with adequate


methods and with the speed compatible with the prevailing


practices of the Hydrocarbon industry, and so as to achieve the


above-mentioned objectives;





the Contractor possesses the capital, technical and


commercial competence, the required personnel and organizational


expertise necessary to successfully carry out the operations


specified hereunder and wishes to cooperate with the state by


helping it to develop a Hydrocarbons industry thereby promoting


economic expansion of the country and the social welfare of its


inhabitants;


and, it being specified that, for the purposes of the


interpretation of this Contract, the following definitions are


adopted:


- Calendar rear signifies a period of twelve consecutive





months starting on January first and ending on the following


December thirty-first, in accordance with the Gregorian calendar;


- Contractual Year signifies a period of twelve consecutive


months from the Effective Date or the anniversary of said


Effective Date;











6 263


- tulusive Exploration Authorization signifies the


administrative instrument whereby the State authorizes Contractor


to undertake on an exclusive basis in the Delimited Area all


prospection, exploration and research work aimed at the discovery


of Hydrocarbons;


Exclusive Exploitation Authorization signifies the


administrative instrument whereby the Government authorizes


Contractor to undertake on an exclusive basis all the


development, exploitation, and production work on the Fields


within the Exploitation Area;





- Barrel signifies one US Barrel, i.e. 42 US gallons,


measured at a temperature of 60°F;


- Budget signifies the estimated expenses, broken down by


budget item, relative to the Petroleum Operations appearing in


the Annual Work Programs;


- Condensate signifies Liquid Hydrocarbons obtained through





the expansion of Natural Gas;


- Contract signifies this document and its Appendices, which


are part of the Contract, and any renewal, extension, replacement


or amendment to the Contract which may be decided by the Parties;


- Contractor signifies the State's contracting Parties, as





well as any organizations, establishments, public or private


entities, companies to which any interest may be transferred in


application of the provisions of Articles 19 or 42;


- Petroleum Costs signifies all the expenditures effectively





borne and paid by Contractor for the performance of the Petroleum


Operations, as determined according to the Accounting Agreement


in Attachment 2, for which said Contractor is recognized the


right to recovery of their amounts;


- Effective Date signifies the date on which the Contract





goes into effect, such as defined in Article 50 hereinbelow;


- State signifies the Republic of Gabon, owner of the


natural resources from the surface and subsurface of the national


territory, marine areas under its sovereignty or part of its


economic zone; the State alone owns the mining titles. Depending


on the case, it exercises the prerogatives of a Public Authority


and has the powers attributed thereto or acts as Contractor-


State, within the framework of partnerships or joint ventures


with companies or as a shareholder either through Administrations


and agents of public services or through companies it controls.


The State may be referred to as, "the Ministry in charge of








7


2f>4


Hydrocarbons", "the Administration" or "The Departments in charge


of Hydrocarbons", or, in general, "the Administration";


- Exploration Well signifies any well intended to detect a


Field or to determine its extension and magnitude;


- Development Well signifies any well intended to produce


Hydrocarbons from the Field;


- C.7.A. Franc signifies the currency defined in Title II of


the Monetary Cooperation Convention between the Member Countries


of the Bank of the Central African States (B.E.A.C.) and the


Republic of France, signed in Brazzaville on November 23, 1972;


- Natural Gas signifies methane, ethane, propane, butane


and, more generally, all gaseous Hydrocarbons, either dry or wet,


whether or not associated with liquid Hydrocarbons;


- Field signifies an accumulation of Hydrocarbons in the


subsurface;


- Hydrocarbons signifies Crude Petroleum, Condensates, and


Natural Gas;


- Operator signifies the company duly designated by the


Contractor to conduct and perform the Petroleum Operations in the


name and on behalf of, and under the responsibility of the


latter;





- Petroleum Operations signifies all Hydrocarbon


prospecting, exploration, development, production, transportation


and storage operations and, more generally, all other operations


directly connected with the above, carried out under this


Contract, with the exception of refining and marketing


operations;


- Crude Potroleun signifies crude mineral oil, condensate,


asphalt, ozokerite and any type of Hydrocarbons and bitumen, both


solid and liquid, in their natural state or obtained from Natural


Gas through condensation or extraction;


- Total Available Production signifies the total Hydrocarbon


production from the exploitation of all the Fields located within


the Delimited Area, computed on said area after degassing,


dehydration, stabilization, decantation, desalting and gasoline


recovery (for the Natural Gas) , at the time when it is sent


towards the evacuation lines or, if no pipelines are available,


towards storage facilities; the following is deducted from this


production:








8


- Hydrocarbons re-injected into the Field or used in


the Petroleum Operations, under the conditions set


forth in Article 26.1,b of the Contract;


Hydrocarbons burned or destroyed provided that





Contractor has abided by the regulations in force and


the guidelines and applicable recommendations of the


Administration.


- net Production, signifies the Total Available Production of


Hydrocarbons less the proportional mining royalty;


- nnailnlnor Production signifies the Net Production less the


removals of hydrocarbons made by Contractor in connection with


the recovery of the Petroleum Costs;


- limwi work Program signifies all the Petroleum Operations


that Contractor agrees to perform during a Calendar Year in the


Delimited or Exploitation Area, appearing in a document


describing on an itemized basis these Petroleum Operations;


- Affiliated Company signifies a company or any other


business:


- which controls one or more companies comprising


Contractor,


- or which is controlled by one or more companies


forming Contractor,


- or which is controlled by a company that itself





controls the Contractor.


Such control signifies the direct or indirect ownership of more


than fifty percent of the stock of the capital of the controlled


company and thus entitling the controlling company to the


absolute majority of the voting rights;


- Mon-Affiliated Casqpany or fbird Party signifies a company





or any entity other than the Parties which does not fall under


the preceding definition.


- Ubdarlifting signifies a situation in which one of the


Parties, at a given time and in proportion to its rights, has


failed to remove and dispose of the full share of Hydrocarbons to


which it is entitled in application of the provisions of the


Contract;


- Overliftino signifies a situation in which one of the


Parties, during a given period, has already removed and disposed





9


2€(i


of a quantity of Hydrocarbons in excess of that to which it is


entitled in application of the provisions of the Contract;


- Delimited Area signifies the surface area within the


perimeter described in Attachment 1;


- Exploitation Area signifies a surface area located within


the Delimited Area on which the State grants the Contractor,


according to the applicable laws and the Contract, an Exclusive


Exploitation Authorization.


The above having been stated, the following is mutually agreed


and established:

























































































10 ZG7


ARTICLE 1





GENERAL CONDITIONS


1.1





This Contract is a Hydrocarbon exploration and production sharing


agreement. Its clauses are governed by the laws and regulations


in effect in Gabon.


1.2


It defines the rights and obligations of the Parties, governs


their mutual relationship and establishes the rules and terms for


exploration, exploitation and production sharing. It applies to


the Petroleum Operations that Contractor is to perform on an


exclusive basis in the Delimited Area and any Exploitation Area,


it being understood that all substances and products other than


Hydrocarbons are beyond the Contract's scope of application.





1.3


For all the work required for performance of the Petroleum


Operations, Contractor is required to comply with generally


accepted Hydrocarbon


industry practices.


1.4


Contractor shall supply all the financial and technical means


necessary for the proper performance of the Petroleum Operations.


Subject to written approval of the Petroleum Operations, the


Contractor may use Third Parties or Affiliated Companies Funds


for the financing of corresponding investments.





The Contractor shall send to the Hydrocarbon Services a certified


copy of the loans agreements and contracts which have been


obtained and must be concluded under the condition that the


above-mentioned approval has been obtained.


However, interest, agios, financial charges of any nature and





currency exchange losses arising from such financing, whatever


their source and payment terms, are deductible for the purposes


of Article 26.4 or chargeable to Petroleum Costs which give rise


to recovery under Articles 24 and 26.10, only in the cases and


according to the modalities and restrictions provided in said


Articles and in the Accounting Agreement.





1.5


The Contractor shall alone bear the financial risk attached to


the performance of the Petroleum Operations, subject to the


provisions of Article 19.

















11 2fS


1.6


Throughout the term of the Contract, the total production


originating from the Petroleum Operations will be shared between


the Parties according to the terms defined in Articles 24, 25,


and 26.





1.7


The Delimited Area is defined in Attachment 1.





1.8


In the month following the Effective Date, the Contractor shall


inform the Administration of the name of the designated Operator


who will be responsible for performing the Petroleum Operations.


The Operator, in the name and on behalf of the Contractor, shall





communicate to the Administration all reports, information and


data mentioned in the Contract as well as any contract or


convention binding the companies comprising the Contractor. The


Operator will act as the designated representative of all the


companies forming the Contractor, for the performance of the


Petroleum Operations. The Contractor may at any time designate


another Operator, subject to prior approval from the


Administration.





1.9


For the practical terms of performance of this Contract, the


person responsible for Departments in charge of Hydrocarbons


represents the State; he makes all the decisions, grants any


necessary or useful authorization for the performance of the


Petroleum Operations.


1.10





During the term of the Contract, the State may at any time and


particularly at the time of participation pursuant to the


provisions of Article 19, delegate the management of its rights


and obligations resulting from said participation to a company or


organization of its choice.












































12


2f9


 ARTICLE 2





TECHNICAL CONSULTING COMMITTEE


2.1


Within the month following the Effective Date, a Technical


Consulting Committee will be formed. It will be composed of the


same number of members representing the State and the Contractor.


The representatives of the State will be designated from among


the Administration supervisory staff, from the General


Hydrocarbon Department and from the land, financial, or customs


Administration. The Chairman of the Technical Consulting


Committee shall be selected from among the representatives from


the General Hydrocarbons Department.





2.2


The Technical Consulting Committee is a body responsible for


issuing opinions, suggestions and recommendations on:


the exploration, development and production work on


discovered Fields, and on the related expenditures;


- the application of the Field conservation rules pronounced


by the Administration or, in the absence of such rules,


based on commonly accepted Hydrocarbon industry practice;


- anti-pollution measures and safety and health regulations


on the work sites;





- the choice between purchasing or renting, by the


Contractor, of major equipment and facilities, in


application of the provisions of Article 10.2;


- the programs and budgets provided by Articles 5.1 and


20.1, before they are submitted to the Administration for


approval


- the conditions for personnel employment, in accordance


with the provisions of Article 38;


- the provisions to be taken by Contractor for the training


of Gabonese personnel in application of the provisions of


Article 39 and the implementation of said provisions;


Within the framework of its powers, the Technical Consulting





Committee may assign studies to subcommittees created for that


purpose.

















13 270





2.3


The opinions, suggestions and recommendations of the Technical


Consulting Committee will be adopted by majority of votes, each


member being entitled to one vote and with the authority to


represent only one other member of the Committee.


The Technical Consulting Committee deliberates validly if at





least two thirds of its members are present or represented; the


presence of the Chairman or of his representative, if the former


is unable to attend, is indispensable.





2.4


The Technical Consulting Committee meets at least twice a year in


the exploration period and at least four times a year during the


development and exploitation period. Meetings are called at the


initiative of the Contractor or the Administration and convened


by summons from the Chairman of the Technical Consulting


Committee issued at least fifteen days prior to the meeting date.


In emergencies, the members meet as quickly as possible or


consult by telex.


Contractor may request that the Technical Consulting Committee be





convened in an extraordinary meeting in order to submit specific


questions to it.


The agenda is prepared by the Party requesting the meeting; the


documents necessary for the proper conduct of the meeting are


prepared by Contractor or, if applicable, by the Administration.


Contractor will hold the office of Secretary of the Technical


Consulting Committee.


2.5





The expenses deriving from the activity of the Technical


Consulting Committee, as well as those borne by the


Administration within this context, will be borne by Contractor


and considered as Petroleum Costs.


















































14 2*71





 ARTICLE 3





EXPLORATION PERIODS





3.1


On the effective date, the Contractor is granted an Exclusive


Exploration Authorization on the Delimited Area for a first


period of three years Contractual Years. This period may be


extended at Contractor's request, presented at least forty-five


days before expiration of this period, by a maximum of three


months to permit Contractor to complete any drilling then in


progress.





This extension will be granted by decision of the Departments in


charge of Hydrocarbons.


Nevertheless, Contractor shall make its best effort to start





drilling so that, under normal circumstances, the drilling


operations can be completed before the normal expiration of the


above-mentioned period.





3.2


If, during the first extension period granted pursuant to Article


3.1, the Contractor has fulfilled the obligations deriving from


this Contract, in particular the work obligations defined in


Article 4, the Exclusive Exploration Authorization shall be


extended at the request of Contractor for a second period of


three Contractual Years.


The second period may also be extended by a maximum of three


months for the same reasons and under the same conditions as


those stated in Article 3.1


Contractor must file its renewal application for the second





period at least thirty days prior to expiration of the first


period. If Contractor has benefited from the extension described


in Article 3.1, the above-mentioned thirty-day term is counted


from the end of said extension, in order to allow Contractor to


examine and evaluate the results from drilling and to determine


the desirability of filing a renewal application. Renewal will be


granted through edict from the Minister of Hydrocarbons.


3.3





At the end of the first period, in the event that that the


Exclusive Exploration Authorization is not renewed. Contractor


must surrender all the Delimited Area, with the exception of the


Exploitation Areas or surface areas for which it has filed an


application for an Exclusive Exploitation Authorization which is


being processed.














15 2~2


 ARTICLE 4





WORK CamOTMaiTS dories tee exploration period


4.1


During the exploration period defined in Article 3.1, Contractor


shall perform at least the following work:


- acquire and process 1,500 km of 2-D seismic data and shoot


one 3-D seismic survey;


Re-process and make a reinterpretation of existing,


available seismic data


- Prepare a feasibility study of the development of the


Tchibala North and South discoveries within the first six


months;


- drill one exploration well.


In order to carry out this work program under the best technical


conditions in accordance with generally accepted Hydrocarbon


industry practices, Contractor will invest an a mount estimated


at US$ 7,800,000.


Contractor is required to start the geological and geophysical


work covered by the above commitments within four months after


the Effective Date.


4.2


During the second exploration period defined in Article 3.2,


Contractor shall carry out the following minimum work:


- acquire and process 2,000 km of 2-D seismic data and shoot


a 3-D seismic survey if the exploration well was a


discovery;


- drill two exploration wells.


In order to carry out this work program under the best technical


conditions in accordance with generally accepted Hydrocarbon


industry practices, Contractor will invest an amount estimated at


US$ 14,500,000.


4.3 The above-specified wells will be drilled to a minimum depth


2,500 (two thousand five hundred) meters or until the Gamba


geological formation is penetrated for at least fifty meters if


it extends beyond the contractual depth. If at 2,500 meters, said


geological formation has not been encountered, the Parties will











16


meet in order to examine the desirability of continuing the Well


in the interest of each.


Drilling will be stopped at a lesser depth than originally


estimated if, having drilled the well in accordance with approved


practices of the Hydrocarbon industry, the stoppage is justified


by one of the following reasons:


- the Gamba formation is encountered at a lesser depth than


the contractual depth; in this case, the Parties will meet


to examine the desirability of continuing the well in the


interest of each;


- basement is encountered at a lesser depth than projected;





continuation of drilling presents an obvious hazard


because of the presence of abnormal formation pressure;


- rock formations are encountered the hardness of which


renders it impractical to continue drilling with standard


equipment;


- Hydrocarbon-bearing formations are encountered which,


before being penetrated, must be protected by setting


casing, thus preventing attainment of the contractual depth.


In the event that drilling is stopped for any of the above-listed


reasons, the well shall be considered to have been drilled to the


contractual depth, provided that the Contractor timely presents


its reasons to the Administration and the Administration accepts


these reasons as justified.


4.4


The Contractor is required to meet its work commitments for an


exploration period even if this entails for the Contractor


exceeding the amount estimated for that period.


On the other hand, if Contractor has met the work commitments for


an amount less than the amount estimated for that period, it is


considered to have met those commitments.





4.5


If the Administration notices that Contractor has not met its


work commitments during an exploration period, it will so advise


Contractor in writing. The procedure provided by Article 48.10 is


then applicable, as required.




















17 274


 ARTICLE 5








PREPARATION AND APPROVAL OF ANNUAL WORK PROGRAMS AND


CORRESPONDING BUDGETS





5.1


Within a maximum of two months after the Effective Date,


Contractor shall submit to the Administration for approval an


Annual Work Program and the corresponding Budget for the entire


Delimited Area, specifying the Petroleum Operations for the


period from the Effective Date until the following December 31.


By September 30 of the Calendar Year, Contractor shall submit to


the Administration for approval an Annual Work Program and the


corresponding Budget for the entire Delimited Area, specifying


the Petroleum Operations it intends to perform during the


subsequent Calendar Year.


The Annual Work Program and the corresponding Budget mentioned





above shall be examined by the Technical Consulting Committee, in


accordance with the provisions of Article 2.2 prior to being


submitted for Administration approval? the advice, suggestions


and recommendations of the Technical Consulting Committee must be


attached.


5.2





If the Administration believes that modifications of the


Petroleum Operations planned in the Annual Work Program are


necessary or useful, it shall notify the Contractor in writing,


within thirty days after receipt of the Program, stating the


requested modifications and including any justifications it deems


appropriate. The Administration and the Contractor will meet as


soon as possible in order to study the modifications requested


and in order to prepare by mutual agreement the Annual Work


Program and the corresponding Budget in their final form.


In any case, the parts of the Annual Work Program for which the





Administration did not request modifications are considered


approved and must be completed by the Contractor within the


initially agreed times.





If the Administration does not address a request for


modifications to the Contractor before expiration of the thirty-


day period, the Annual Work Program and the corresponding Budget


shall be deemed thereby approved.




















18


27J


5.3


If the information acquired as the operations progress or


particular circumstances justify certain minor changes in the


Petroleum Operations planned in the Annual Work Program which do


not affect the pursuit of the primary objectives by the


Contractor, the Contractor may make the corresponding changes


after approval from the Hydrocarbon Departments, provided that


the basic established objectives are not changed.


 ARTICLE 6





XBLmQuisBHBrrs





6.1


Contractor may relinquish all or part of the Delimited Area,


subject to application of the provisions of Article 7.


6.2





During the first exploration period defined in Article 3.2, only


to the entire Delimited Area may be relinquished/ subject to the


provisions of Article 6.5


6.3


During the second exploration period defined in Article 3.2, all





or part of the Delimited Area may be relinquished.


6.4


Contractor must inform the Administration in writing of its


decision to relinquish acreage, specifying, if applicable, the


part of the Delimited Area which is to be relinquished. Said


relinquishment becomes effective sixty days after receipt of the


above-mentioned written notice, tinless the Administration agrees


to the effectiveness of the waiver for an earlier date.


Within thirty days after the effective date of the





relinquishment, Contractor must submit to the Administration a


detailed report, together with appropriate supporting


documentation, on the work performed in the Delimited Area and


the corresponding expenses.





6.5


When relinquishing areas held under en exploration contract,


Contractor has the right to retain the Exploitation Areas or


surface areas for which it has filed an application which is


being processed.


6.6


In the event of a partial relinquishment, each of the


relinquished areas must be sufficiently large to allow further


hydrocarbon operations to be carried out and must be of simple


shape and defined by geographic coordinates.





6.7


Partial relinquishment during the second exploration period does


not cause the Contractor's work commitments defined in Article


4.3 to be reduced; the part of work not yet completed on the


effective date of the partial relinquishment is carried over to


the remaining part of the Delimited Area.











20





277


 ARTICLE 7








INSUFFICIENCY OF EXPLORATION WORK








7.1


In the event of relinquishment of all of the Delimited Area, as


described in Articles 6.1 or 6.2, and if Contractor's work


commitments as defined in Article 4, have not been met.


Contractor is required to pay to the State, within thirty days


after the effective date of the relinquishment, on the basis of


provisions of Article 6.4, a compensation equal to the cost of


the exploration commitments which have not been met at the date


of the relinquishment.


7.2


Within thirty days of the expiration of either the first or the





second exploration period defined in Article 3, Contractor


presents to the Administration a detailed report, with


appropriate supporting documents, on the work performed in the


Delimited Area and on the corresponding expenditures.





7.3


If at the expiration date of any of the exploration periods.


Contractor has failed to meet its work obligations as defined in


Article 3, Contractor is required to pay to the State, within


thirty days following the date of expiration of the period


involved, a compensation corresponding to the value of the work


not done, as estimated on that date,


7.4





In the event of a delay in the payment of the compensation due to


the State under the terms of Article 7.1 and 7.3 these amounts


due will bear interest, calculated from the day the payments were


due until the date of payment by Contractor , at the annual


discount rate of the Bank of Central African States (B.E.A.C.)


plus three percentage points.


7.5


If the compensations estimated in Article 7.1 and 7.3 are less





than those actually due, the difference, plus the interest


defined in Article 7.6, calculated from the day on which these


compensation payments should have been made, is paid to the State


as soon as possible.


7.6





The amounts which have not been paid on the dates due are


increased by a penalty interest defined by the annual discount


rate of the Bank of Central African States (B.E.A.C.) plus three


percentage points.











21


278





ARTICLE 6





CONTRACTOR'S OBLIGATIONS DURING TBS EXPLORATION PERIODS


8.1


The Contractor furnishes all the necessary funds for the expenses


required for the performance of the Petroleum Operations defined


in the Annual Work Program.


The Contractor will perform the Petroleum Operations by using





either its own materials, equipment and supplies or those


acquired or rented to this effect, subject to the provisions of


Article 10.3.





8.2


The Contractor is responsible for the performance of the Annual


Work Programs. The work must be performed under the best


conditions of cost and efficiency; in general, the Contractor


will utilize all appropriate means for the execution of the


Annual Work Programs under the best economical and technical


conditions for the Parties, in accordance with the most


appropriate practices generally accepted in the Hydrocarbon


industry.


8.3





The Contractor agrees to take all practical measures in order to;


a) ensure protection of the aquifers encountered:





- while drilling, through proper cementing of the


casing in the wells,


- when abandoning unproductive wells, by applying





cement plugs so as to isolate the formations under


pressure from other reservoir horizons and from the


surface.





b) carry out the tests necessary to determine the value of


the Hydrocarbon shows encountered while drilling and the


exploitability of any Fields discovered.





8.4


The facilities erected and work performed by the Contractor


offshore under this Contract shall, according to their nature and


the circumstances, be built, positioned, marked, buoyed, equipped


and maintained in such fashion as to permanently allow free safe


passage to navigation at all times in the waters of the Delimited


Area.

















22


279


Independently of the above provisions, in order to facilitate


navigation, the Contractor shall install sound or visual devices


approved or required by the competent authorities and maintain


them to the satisfaction of said authorities.





8.5


At the time of construction and maintenance of the facilities


necessary for the performance of the Petroleum Operations, the


Contractor shall not disturb any previously installed cemetery or


any existing building used for religious purposes. Moreover,


Contractor must not in any way cause any problem which may affect


normal use of a building without the occupants' consent. The


Contractor is required to pay due compensation for damage or


disturbance thereby caused to Third Parties.


8.6





In application of the International Convention on the Pollution


of Sea Water by Hydrocarbons signed in London on May 12, 1954,


its amendments and implementation provisions, the Contractor


undertakes to take all the necessary precautions to prevent


marine pollution.


To this effect, the State may decide, in agreement with the





contractor, on any additional measures it may deem necessary in


order to ensure preservation of the marine zone.


8.7


Under similar conditions of price, quality, and delivery,


Contractor agrees to use Gabonese companies for its procurement,


work and service contracts.


For all contracts that may reach or exceed one million US dollars





(US$ 1,000,000), the choice of companies shall be by call for


bids.


A copy of all the contracts mentioned in the preceding paragraph


concluded by the Contractor and pertaining to the Petroleum


Operations will be addressed to the Administration as soon as


said contracts are signed.


The Contractor will inform the Departments in charge of


Hydrocarbons at least fifteen days in advance of the date, time


and place of opening of the bids. The person responsible for


these Departments or his representatives may participate in the


opening and examination of the bids.


The information made available to the participants in the opening





and examination of the bids must be communicated at the same time


to the Departments in charge of Hydrocarbons.











23


280


A list: of all the contracts concluded by the Contractor during


each calendar quarter for performance of the Petroleum Operations


is forwarded for information to the Administration, within


fifteen days following the end of said calendar quarter. For each


contract, the subject and the amount, together with the name of


the co-contracting party will be specified. The Contractor


forwards to the Administration copies of the contracts which may


be requested by the latter.












































































































































24 281





 ARTICLE 9





RIGHTS IN CONNECTION WITH TEE EXPLORATION PERIODS


9.1





Subject to the special provisions of the Contract, Contractor has


the rights the exercise whereof affects the performance of the


Petroleum Operations in the Delimited Area and to all possible


facilities to that end. These rights include specifically:





a) Pull responsibility for the administration, control,


and conduct of all the Petroleum Operations,-





b) The option to exercise the rights and powers conferred


by the Contract through independent agents and independent


contractors whose salaries, expenses, and fees it pays in


compliance with the regulations in force in Gabon on


financial transactions and subject to the provisions of


Article 8.7.





9.2


Subject to the regulations in effect and the provisions of


Article 8.5, the Contractor will have the right to clear the


land, to excavate, drill, bore, construct, erect, place, procure,


operate, administer maintain ditches, tanks, wells, trenches,


excavations, dams, canals, water mains, plants, reservoirs,


basins, offshore and onshore storage facilities, primary


distillation units, first extraction gasoline separation units,


sulfur plants and other facilities for the production of


Hydrocarbons, in addition to pipelines, pumping stations,


generator sets, power plants, high voltage lines, telephone,


telegraph, radio systems and Other communications facilities,


factories, warehouses, offices, sheds, houses for employees,


hospitals, schools, premises, ports, docks, harbors, dikes,


jetties, dredges, breakwaters, underwater piers and other


facilities, ships, vehicles, railways, roads, bridges,


ferryboats, airlines, airports and other transportation


facilities, garages, hangars, workshops, foundries, repair shops


and all related auxiliary services and, in general, all that


which is necessary for performance of the Petroleum Operations.





The location of these facilities may be selected by the


Contractor subject to the regulations and provisions of Articles


8.5, 13 and 14.


























25


282


9.3


The agents, employees and representatives of the Contractor or of


its subcontractors shall be allowed to enter or leave the


Delimited Area and to have free access in keeping with their


functions to all the facilities installed by the Contractor for


performance of the Petroleum Operations.


















































































































































26





283


 ARTICLE 10








OWNERSHIP OF TBS ASSETS


10.1


The real property such as wells, buildings and associated


equipment, piers, roads, bridges, canals, ports, docks, dikes,


jetties, water mains, pipelines, reservoirs, basins, railways,


land, structures, warehouses, offices, plants and permanently-


installed machinery and equipment purchased or built by the


Contractor, as well as all movables thereby purchased or


manufactured within the framework of the Petroleum Operations are


the property of the State.


The Contractor may utilize at no charge said real property and





movables within the framework of the Contract. The Contractor may


also use said property for other petroleum operations under other


contracts to which it is a party, subject to payment of a


properly calculated rental price, approved by the Administration.


These proceeds are entered in the Petroleum Costs account and


will reduce said Costs. They are paid to the State if the


Petroleum Costs yet to be recovered correspond only to


exploitation expenses.





The Contractor will contract, regarding these assets, on behalf


of the State, all the necessary insurance policies, according to


generally accepted practices. The insurance premiums paid to this


effect are included in the Petroleum Costs. The indemnities


collected in the event of claim are entered in the Petroleum


Costs account and will reduce said Costs. They are paid to the


State if the Petroleum Costs yet to be recovered correspond only


to exploitation expenses, unless they are allocated to


replacement of lost or destroyed assets.





10.2


The provisions of Article 10.1 above are not applicable to assets


belonging to Third Parties or Affiliated Companies and leased to


Contractor under a lease or simple rental agreement.


10.3





Under equivalent economic conditions. Contractor commits itself


to give priority to buying goods instead of leasing or renting.


For major equipment and facilities, before opting for purchase or


lease. Contractor shall procure the opinion, suggestions and


recommendations of the Technical Consulting Committee and submit


its duly justified choice for the Administration's approval. This


choice will become final after the approval from the


Administration has been obtained.











27


284


At the time of review of the Annual Work Program and


corresponding Budget, the Administration will designate the major


equipment and facilities appearing on said documents, for which


the Technical Consulting Committee must be consulted and the


Administration's approval requested.





















































































































































28


2R5


 ARTICLE 11





ACTIVITY REPORTS DURING TEE EXPLORATION PERIODS


11.1


The State, through the Departments in charge of Hydrocarbons,


will have access to all the original data in connection with the


Petroleum Operations, such as geological, geophysical,


petrophysical, drilling and exploitation reports, in addition to


any technical, accounting and financial information which it may


deem useful for the exercise of its power of verification.


11.2


Immediately after they have been prepared or obtained, the


Contractor shall furnish the following reports or documents to


the person responsible for the Departments in charge of


Hydrocarbons:


a) a copy of the geophysical survey and interpretation


reports and a complete set of maximum processed seismic


profiles on stable transparent material, such as "Mylar"; a


copy of the magnetic tapes will be kept by the Contractor


and made available to the person responsible for the


Departments in charge of Hydrocarbons ,-


b) a copy of the daily telexes on the wells being drilled





and a copy of the spud-in and end-of-drilling reports for


each well drilled, in addition to a complete set of all logs


recorded in reproducible form;





c) a copy of the reports on production tests performed and


of any study pertaining to the commencement of production of


a well;


d) a copy of each core sample analysis report,





A representative portion of the cores or cuttings obtained at


each well and samples of the fluids produced during the


production tests will also be furnished within a reasonable


period. Any core samples and cuttings in the Contractor s


possession at the time of expiration of the Contract will be


delivered to the person responsible for Hydrocarbons.


11.3


During the second half of each month, the Contractor shall


furnish to the Departments in charge of Hydrocarbons a report on


the Petroleum Operations of the previous month.

















29


286


11.4


Contractor is required to inform the Departments in charge of


Hydrocarbons in the shortest possible time of any discovery of


mineral substances and to report on any pertinent observations or


information relative thereto.





11.5


The State is the owner of any original documents, reports


prepared or obtained by the Contractor or samples relative to the


Petroleum Operations, geological, geophysical, and petrophysical


work, synthesis reports, well logs, even if in the Contractor's


possession, to be used within the framework of the Petroleum


Operations. The Contractor may retain copies of these samples,


documents and reports for the requirements of the Petroleum


Operations.


Each Party assumes the obligation, each as applicable to it, in





its own behalf and in the behalf of the service companies or


consultants working for it, to consider these documents, reports,


operations, studies and samples confidential and not to reveal


them to Third parties without prior consent from the person


responsible for the Departments in charge of Hydrocarbons. This


obligation continues, for the State, during the exploration


periods defined in Article 3 and, in the event of total


surrender, in application of the provisions of Article 6, until


the effective date of said surrender, and, for the Contractor,


even after the end of the Contract.


Each entity forming the Contractor may, without the consent of


the other entities or of the Administration, disclose the


following confidential information and data:





a) To each company interested in good faith in the


realization of an eventual transfer or of assistance in the


framework of Petroleum Operations, after the undertaking by


said company to keep this information confidential and to


use it only for the realization of said transfer or


assistance; or





b) To any independent professional consultants operating


within the framework of the Petroleum Operations, after


obtaining from them a similar confidentiality agreement,


provided that the Contractor reports immediately to the


Administration the names of said consultants and the


information and data disclosed thereto; or


c) To any bank or financial institution with which the


Contractor is attempting to obtain or obtains financing,


after obtaining a similar confidentiality agreement from


these concerns,











30 287


d) When and insofar as the regulations of a recognized


stock exchange require it, unless this is in conflict with


the laws of Gabon,


e) Within the framework of any contentious judicial,


administrative or arbitrage procedure.


With prior written consent from the Administration, the


Contractor may exchange with any interested party any


confidential information or data of this type against other


similar information or data.





































































































31


288


 ARTICLE 12





NATURAL RESOURCES


The Contractor shall have the right, if applicable, in exchange


for payment of any applicable royalty and subject to compliance


with the regulations in force and the provisions of Article 8.5,


to remove and use the topsoil, fully-grown timber, clay, sand,


lime, gypsum, stones (other than precious stones) and other


similar substances which may be necessary for the performance of


the Petroleum Operations.





The Contractor shall make reasonable use of such materials for


the performance of the Petroleum Operations.


The Contractor may take or use the water necessary for the


Petroleum Operations provided that existing irrigation or


navigation does not thereby suffer and that land, houses or


watering points are not thereby deprived of their use.



















































































32 289





 ARTICLE 13








UTILIZATION OF LAND


13.1


The State will make available to Contractor for the needs of the


Petroleum Operations, the State-owned land necessary for said


operations. The Contractor may construct and maintain, above and


below grade, the facilities necessary for the Petroleum


Operations. The Contractor shall not request the use of said land


unless it has a real need therefor and it shall refrain from


claiming any land occupied by buildings or properties utilized by


the Administration. The Contractor shall compensate the State for


any damage to the land caused by the construction, maintenance


and use of its facilities.


Subject to the regulations in force, the Administration will


authorize the Contractor to construct, use and maintain


telecommunication systems and pipelines, above and below grade


and along land which does not belong to the State, provided the


construction, maintenance and use of these systems cause the


least possible damage and that they are in accordance with the


regulations.


13.2





In the event it is necessary for the Contractor, in order to


perform the Petroleum Operations, to occupy and use land


belonging to private parties, the Contractor shall endeavor to


reach an amicable agreement with the property owners to determine


equitable compensation for the loss of use suffered. In the event


of disagreement, the Contractor shall inform the Administration


which can:





- either set a compensation to be paid by the Contractor, if


the occupation of the land is of short duration. The amount of


the compensation will then take into account the effective use of


the land by the landowner at the time of occupation.


- or expropriate the land, in accordance with the applicable





regulations, if the occupation is long-lasting or makes it


henceforth impossible to resume the original use of the land. The


rights are acquired and recorded by the Government in the


latter's name but the Contractor is entitled to free use thereof


for the Petroleum Operations for the entire duration of the


Contract. The costs, expenses and indemnities resulting from the


expropriation procedure will be borne by the Contractor.




















33





2S0


 ARTICLE 14








UTILIZATION OF FACILITIES


14.1





The Contractor will have the right to utilize, under the


provisions of common law, for the needs of the Petroleum


Operations any railway, tramway, road, airport, landing field,


canal, river, bridge or waterway and any telecommunication


network, whether owned by the State or by private companies,


against payment of any royalties in force or to be established by


mutual agreement, in exchange for this use and their


construction, operation and maintenance. The Contractor will also


have the right to use for the Petroleum Operations any means of


land, sea or air transportation, subject to the laws and


regulations governing the use of such means of transportation.


14.2





The State will have the right in exceptional cases to use any


transportation and communication facility installed by the


Contractor, such as in case of national necessity due to national


catastrophes, disasters, internal or external peril. The


Contractor shall make all its facilities available to the State


at the latter's simple request or requisition. In such case, the


request shall come from the Minister in charge of Hydrocarbons.


14.3





The State can construct, operate and maintain, above and below


the land made available to the Contractor or along roads,


railways, airports, landing fields, canals, bridges, flood


protection dams, police stations, military installations,


pipelines and telecommunication networks, provided this does not


compromise or significantly hinder the performance of the


Petroleum Operations, except in case of national necessity.



























































34 291


 ARTICLE 15





EXPIRATION (XF CONTRACT AT THE END OF THE EXPLORATION PERIOD





If, during Che exploration periods. Contractor has made no


discovery of Hydrocarbon deposits presumed to be commercially


exploitable or declared as such and giving entitlement to an


Exclusive Exploitation Authorization, the Contract is terminated


at expiration of said period.


Expiration of the Contract will not relieve the Contractor of its


contractual obligations arisen prior to the date of said


expiration and not yet honored, entirely or in part, on said


expiration day. The Contractor is required to meet these


obligations in accordance with the regulations and the


contractual provisions; the validity thereof is extended to this


effect.




























































































35





292


 ARTICLE 16





DISCOVERY AND EXPLOITATION OBLIGATION


16.1





If the Contractor discovers Hydrocarbons, it shall notify the


Administration in writing within ten days after completion of the


tests making it possible to presume the existence of a field.


16.2





The commercial or presumed commercial nature of a Field is


determined by the Parties. The Parties shall meet to this effect


and shall record their agreement on this matter in a jointly


signed document.


16.3


To this end, Contractor is required to supply all information





enabling the Administration to make a detailed review of the data


relative to the discovered Field and to make its decisions in


full cognizance of the facts as to the commercially exploitable


nature of the discovery. This information is to be supplied as it


is obtained by Contractor.





16.4


Provided Contractor has met its commitments and obligations under


the Contract, and especially Article 16.3, a Field considered to


be commercially exploitable in application of the above


provisions will entitle it to an Exclusive Exploitation


Authorization on the area involved which will be considered an


Exploitation Area after the effective date of this Exclusive


Exploitation Authorization and will be limited to the presumed


size of the Field, projected to the surface, determined on the


basis of available geological and geophysical data.





The Exclusive Exploitation Authorization is granted by official


decision of the Minister of Hydrocarbons at Contractor's request,


filed in the form and terms of Article 17.1





16.5


If the Contractor makes several commercially exploitable


discoveries within the Delimited Area, each of these will entail


a separate Exclusive Exploitation Authorization corresponding to


a separate Exploitation Area. However, for the requirements of


Articles 24, 25 and 26.1, the overall production from the


Exploitation Areas of the Delimited Area is taken into account.


16.6





The quantities of Hydrocarbons produced before a Field is


declared commercially exploitable in application of the








36


293


provisions of Article 16.2, will be measured in accordance with


the provisions of Article 29 and will be subject to the


provisions of Articles 24 to 26, with the exclusion of those used


for the needs of the Petroleum Operations or lost, provided,


however, that for these quantities the Contractor supplies to the


Administration all useful explanations and justifications.


16.7





For any Field declared or presumed commercially exploitable in


accordance with the provisions of Article 16.2, the Contractor


assumes the obligation to perform all useful and necessary


Petroleum Operations for exploitation of said Field.





The Contractor is required to inform the Administration in


writing of the starting date of production as soon as this is


effective.


After the award of an Exclusive Exploitation Authorization, the





State shall not require that the Contractor continue exploitation


of the corresponding Field if it provides evidence, on the basis


of the technical information acquired on the Field and of


accounting and financial justifications, of the non profitability


of the exploitation.





In this case, the Exclusive Exploitation Authorization expires on


the date on which the operations or the production are stopped


and the corresponding Exploitation Area becomes free on said


date. The State has then the right to exploit the Field on its


own, without being required to pay any indemnity to the


Contractor.


16.8


Except for duly justified exceptional circumstances, if


production from a Field has not begun within three years after


the date of award of the Exclusive Exploitation Authorization,


this authorization is canceled and the Contractor's rights are


considered voluntarily relinquished. Cancellation is pronounced


by decree from the Minister in charge of Hydrocarbons.









































37 294


 ARTICLE 17





APPLICATION FOR EXCLUSIVE EXPLOITATION AUTSORIZATION AND


DELIMITATION OF EXPLOITATION AREAS


17.1


To obtain an Exclusive Exploitation Authorization, Contractor


must file an application with the Minister in charge of


Hydrocarbons.


The aforementioned application, as well as the attachments and


data provided, must be written in French or must be accompanied


by a duly certified translation. They are to be dated and signed


by the applicant.


The application, as well as the attachments and data provided,


must be prepared in triplicate; the first two copies, one of


which must have a stamp, are to be filed with the Directorate of


Hydrocarbons, the third is to be filed with the Minister in


charge of Hydrocarbons.


The applicant must prove his identity and indicate the elected


domicile; if the applicant is acting as a proxy, it must prove


its identity, its domicile and its powers.


The applications presented in application of this Article must





provide, for all companies making up the Contractor, information


concerning their registered offices, authorized capital and the


full names, nationalities, titles, and addresses of the persons


making up, according to the bylaws, the management, the


administration and the board of these companies and persons with


signatory power.


Any application filed for a company must include the powers of


attorney of the person(s) who signed the application, as well as


a certified copy of the bylaws of the company, of the certificate


of its incorporation and of the balance sheets of the last three


financial years.


The application must include:


- the proposed limits of the Exploitation Area, which must





be strictly confined to the presumed size of the Field


discovered, as projected to the surface;





supporting documents (geological and geophysical


interpretations, wireline logs, etc.) used as basis for


determination of the presumed extent of the Field;














38 29J





 - the provisional estimate of recoverable reserves and the


annual production of the Field;


- a plat of map on a scale of 1:200,000 showing the





geographic boundaries of the Area of the application;


- a report summarizing the results of the exploration


efforts carried out in the Delimited Area and providing the


location, a description and the characteristics of the


Field;


- a general outline of the development plan for the Field


and an estimate of the capital expenditure required for the


development and the exploitation of the Field;


- a provisional program for the training of Gabonese





Nationals.





17.2


Any later modification in the bylaws, legal form or capital of


the companies forming the Contractor, as well as any change of


the individuals mentioned in the fifth paragraph of Article 17.1,


must be reported without delay to the Minister in charge of


Hydrocarbons and to the person responsible for the Departments in


charge of Hydrocarbons.





The Contractor is to send annually to the aforementioned copies


of its constituent entities’ balance sheets and accounting


records submitted for approval to their stockholders’ meetings


and any reports from their management and administration


presented at these meetings to this effect.





17.3


The right to obtain an Exclusive Exploitation Authorization will


remain in effect only if the application is received by the


Administration within six months after the date of the signature


of the document specified in Article 16.2 and, in any case,


before the expiration date of the second exploration period. If a


reply is not received within the above-mentioned time frame after


receipt of the application, the latter is considered accepted by


the Administration.


17.4





The applications for renewal of the Exclusive Exploitation


Authorization mentioned in Article 18.1 must be presented not


later than 90 days prior to the expiration date of the previous


Exclusive Exploitation Authorization under the same forms as


those set forth in Article 17.1.














39


296


17.5


If, during the course of the year following the award of an


Exclusive Exploitation Authorization, the extensions of the Field


appear to be greater than those of the Exploitation Area, the


Minister of Hydrocarbons will grant by Edict to the Contractor,


at the latter's request, within the framework of the previously


granted Exclusive Exploitation Authorization, an additional


surface area such that the entire Field may thus be covered, on


the condition, however, that said additional surface area is part


of the initial Delimited Area. The Contractor may not benefit


from such an extension if the surface area in question has


already been awarded to a third party or is the subject of an


application for award then being reviewed.


























































































































40


297


 ARTICLE 18





TERM OF VALIDITY OF THE EXCLUSIVE EXPLOITATION AUTBORIZATIOU


18.1


The Exclusive Exploitation Authorization is granted to the


Contractor through Edict by the Minister in charge of


Hydrocarbons; it will go into effect on the date of the award.


Its maximum duration is ten years.





If, at the end of ten-year term, commercial exploitation of an


Exploitation Area is still possible, the Exclusive Eaqploitation


Authorization for that Exploitation Area is renewed at the


Contractor's request, through Edict from the Minister of


Hydrocarbons for a maximum of five years, provided that the


Contractor has met its obligations and commitments under this


Contract.





The Exclusive Exploitation Authorization is renewed a second time


for a maximum of five years, under the same conditions as stated


above.


When a renewal is considered and taking into account the





financial results obtained by the Parties during the preceding


period, said Parties may agree to new provisions for Articles 24


through 2 6.


18.2


At any time, the Contractor may relinquish an Exclusive


Exploitation Authorization. The Contractor must inform the


Administration by letter of its decision to relinquish it and


this renunciation will become effective sixty days after receipt


of this letter, unless the Administration agrees to a closer date


of effectiveness of said renunciation. in the event of


relinquishment, the Exploitation Area becomes free on the


effective date of the relinquishment.


18.3





The Contract expires on the date of expiration of the last


Exclusive Exploitation Authorization or, when applicable, on the


effective date of the above-mentioned relinquishment; however,


the Parties are not released from their contractual obligations


arisen prior to expiration of the Contract which may not yet have


been honored, entirely or in part, on the date of said


expiration. The Parties are required to comply with the


regulations and contractual provisions; the validity of these is


extended to this effect.

















41


298


 ARTICLE 19








STATE PARTICIPATION


19.1


As soon as a Field is placed on production, the state


automatically participates, at a rate of 7.5 percent, in the


rights and obligations deriving from the Contract, unless it


expressly waives the right to participate within ninety days


after the above-mentioned production starting date.


The State participates, at the above-mentioned percentage, in the


Petroleum Costs regarding development and exploitation of the


Exploitation Area, except for any exploration expense.





If the State wishes to take an additional interest, it will


inform the Contractor in writing, specifying the percentage


interest which it decides to hold. The conditions for acquisition


of the additional interest are mutually agreed upon between the


Parties.


19.2


The State may at any time transfer to an entity of its choice all


or part of its interest.


This state may, however, transfer its interest only to a company





controlled by the State or to a company with a well established


technical and financial reputation; if the assignee is a


subsidiary, or a branch office, the State will assure that the


parent company guarantees its commitments as per provisions in


Article 46.2. The Contractor will be consulted prior to any


transfer of interest.


The rights and obligations arising from the partnership





agreements binding the entities comprising the Contractor must in


no event limit the State's rights or aggravate its obligations


under its participation, nor shall they decrease the extent or


effects of said participation.





19.3


As from the date on which production begins, the State


reimburses, in cash or in kind, its share of the Petroleum Costs


incurred for development since the award date of the Exclusive


Exploitation Authorization to the companies forming the


Contractor, in addition to the sums corresponding to the calls


for funds for the Petroleum Costs advanced by the other partners


for the exploitation costs.

















42


293


The above-mentioned choice of payment is exercised by the State


through letter addressed to the Contractor within ninety days;


failing this, it is considered having opted for payment in kind.





If the State chooses to pay in cash, payment will be made from


the net proceeds from the sale of the production share to which


it is entitled as a result of its participation, in accordance


with the provisions of Article 41.


If the State chooses to pay in kind, payment will be made at the


end of each calendar month, by turning over a portion of the


production to which it is entitled as a result of its


participation.


Whatever the method of payment, the amount to be paid by the





State is. limited to seventy percent of the net production, or as


the case may be, of the portion of the production to which it is


entitled as a result of its participation during the calendar


month considered. The unpaid balance, if any, is added to the


payments owed at the end of the following month; this carrying


forward shall not, however, cause the above-mentioned seventy


percent limit to be exceeded. Consequently, the total of any


balances and of subsequent calls for funds is obligatory only to


the above limit, and the surplus will be carried forward and paid


under the same conditions defined hereinabove.





Payments made on behalf of the State which have not been


recovered by Contractor, constitute a credit due to the


Contractor and can be recovered without limitations from the last


lifting preceding the expiration of the Contract.


For the purposes of this Article, the quantities of Hydrocarbons


turned over as payment by the State will be calculated at the


"Fixed Price" defined in Article 27.


19.4





The Contractor will keep up-to-date a "State-Participation"


account. This account will be debited with the Petroleum Costs


that are attributable to the State by reason of the period prior


to its assumption of its participation, as well as at the end of


each calendar month, of its monthly share of the Petroleum Costs.


The account is credited, at the end of each calendar month, by


the Fixed Price of the Hydrocarbons delivered as payment by the


State for said month and by the amounts paid by the latter.


The payments owed by the State as reimbursement of its share of


Petroleum Costs for development and exploitation, are increased,


if applicable, by simple interest calculated at the annual


discount rate of the Bank of Central African States (B.E.A.C.).











43


3v0


 ARTICLE 20





OSVKLOPMSMT PROGRAM


20.1


Within one hundred and eighty (180) days after the award of an


Exclusive Exploitation Authorization, the Contractor must prepare


and submit to the Administration for approval a detailed


development and production program specifying notably:


- item by item, the equipment and operations necessary for


placement into production, such as the number of development


wells, the number of platforms, the pipelines, the


production, processing, storage and loading facilities


required;





- the corresponding cost estimates;


- the projected schedule for performance of the above-





mentioned work, equipment and facilities;


- the estimated production starting date;


the estimate of recoverable reserves and annual





production.


This development and production program must have been examined


by the Technical Consulting Committee, in accordance with Article


2.2, before being submitted to the Administration together with


the Committee's advice, suggestions and recommendations.


20.2


If the Administration believes that modifications to the above-


mentioned development and production program are necessary or


desirable, it must inform the Contractor in writing, specifying


the modifications which it requests, supported by those


justifications which it may deem useful.





The Administration and the Contractor will then meet, as soon as


possible, in order to examine the changes requested and prepare,


through mutual agreement, the program in its final form. This


program is considered approved on the date of said agreement.





In any case, the parts of the program for which the


Administration did not request changes will be considered


approved and the Contractor will be able to realize them within


the initially planned periods of time.














44


3vl


If, at the time of expiration of the above-mentioned term, the


Administration has not presented to the Contractor any request


for modifications, the program is considered approved.




































































































































































45


3uZ


 ARTICLE 21





OSLXOATXQKff OP THE CONIKACTOR DORINQ TEE DEVELOPMENT JkMD


EXPLOITATION PERIODS





21.1


Unless otherwise stipulated. Articles 5, 8, 10, and 11 of the


Contract are applicable, jnutatis mutandis, to Petroleum


Operations conducted within the scope of the Exclusive


Exploitation Authorizations.


21.2





Upon obtaining an Exclusive Exploitation Authorization, the


Contractor agrees to proceed with diligence to drill the


necessary development wells with such intervals between wells as


to guarantee maximum economic recovery for the Parties, of the


Hydrocarbons contained in the Field, in keeping with


internationally accepted good practices in the Hydrocarbon


industry.


Except for duly evidenced unusual circumstances, the Contractor





must start these development operations no later than six months


after acceptance by the Administration of the development and


production program defined in Article 20.


21.3


In the performance of its production operations, the Contractor


is required to observe all the internationally accepted standards


and practices of the Hydrocarbon industry which make it possible


to obtain optimum economic recovery of Hydrocarbons contained in





the Field for the Parties.


21.4


The Contractor is required to proceed, as soon as technically


feasible, with enhanced recovery program studies for the Field


and to implement at the appropriate time this process if, under


economic conditions acceptable to the Parties, it can lead to an


improvement in the rate of recovery of the Hydrocarbons contained


in the Field.





21.5


The Contractor agrees to provide the Administration with all the


reports, studies, results from measurements, tests and trials,


and documents which make it possible to verify the proper


exploitation of the Fields in order to guarantee that the


exploitation is being conducted in the proper conditions, in


particular, in the light of the above provisions.




















46


3u3


In particular, it is required to carry out the following


operations on each producing well:


- measurement of the production of Hydrocarbons daily,





monthly and annually;


- monthly control of the gas-oil ratio;


- annual measurement of reservoir pressure, on a carefully





selected group of wells, representing at least one half of


the wells in the Field.


The Contractor is required to implement every recommendations


made by the Administration, in agreement with the Contractor, on


the subject of conservation of the Fields and to comply with the


regulations in effect regarding pollution and the safety of


property and persons.


21.6


The Contractor is required to annually produce from each Field


quantities of Hydrocarbons in accordance with generally accepted


international Hydrocarbon industry practices, in particular in


applying the standards for proper conservation of the Fields


making optimal recovery of the Hydrocarbon reserves possible in


normal economic conditions for the Parties.





21.7


The Contractor contributes annually to a Hydrocarbon Support Fund


created for the purpose of developing petroleum research in


Gabon. Contractor's contribution to the Hydrocarbon Support Fund


is calculated on the basis of the Total Available Production


equal to the C.F.A. Franc equivalent of US$ 0.05 per Barrel


produced. This contribution will not be included in the Petroleum


Costs.


The Hydrocarbon Support Fund will be managed by the Minister of


Hydrocarbons.









































47


304


 ARTICLE 22








CONTRACTOR RJ0EHT5 IN CONNECTION WITH EXCLUSIVE EXPLOITATION


AUTHORISATIONS


22.1


Unless otherwise stipulated, Articles 9, 12, 13 and 14 of the


Contract are applicable mutatis mutandis to Petroleum Operations


conducted within the scope of Exclusive Exploitation


Authorizations.


22.2


The Contractor is entitled, subject to regulations in effect, to


build, utilize, operate and maintain all the Hydrocarbon


production, storage and transportation facilities which are


necessary for the production, transportation, delivery and


loading of the products extracted, subject to the provisions of


Article 10.3.


22.3


If no available or sufficient evacuation means exist, the


Contractor can, under the conditions set forth by the


regulations, construct a pipeline that will allow it to evacuate


the production. To that end, the Contractor will submit for the


approval of the Administration, and before the commencement of


any work, plans corresponding to the layout it has established


and to the projected location of all the pipelines it intends to


build. All the pipelines crossing or running along roads or


thoroughfares {other than those reserved for the Petroleum


Operations) shall be built so asl not to obstruct traffic. The


conditions of transportation and the safety regulations for these


structures will comply with the applicable'~regulations in force.


22.4


Within the limits of available capacity not used by the


Contractor and at normal and nondiscriminatory prices. Contractor


is required to allow free use by Third parties of the Hydrocarbon


transportation, processing and storage infrastructures set up for


the needs of the Petroleum Operations.


The pricing conditions applied shall be duly evidenced and


submitted for approval to the Departments in charge of


Hydrocarbons. The rate is to be established so that it permits


recovery of the cost of operation of the installation, including


a portion of the cost price of the facilities at least equal' to


the fiscal depreciation in effect or usually applied in Gabon and


computed on the original acquisition value, plus a reasonable


profit margin representing remuneration for the capital invested


for the construction of the given infrastructure.











48


ARTICLE 23





PRODUCTION MARKETING OBLIGATION


23.1





As soon as the production of a Hydrocarbon Field becomes regular.


Contractor is required to make every effort to ensure the best


valorization of the extracted product such that the marketing of


the share of these products to which it is entitled does not


unfavorably affect the prices of Gabonese Hydrocarbons on the


international market.





23.2


The Contractor is required to make every effort so that the


prices obtained for exported Gabonese Hydrocarbons are in


agreement with those existing on the international market at the


time of the sale, for equivalent quality, quantity, freight and


payment terms.











































































































49


306


ARTICLE 24





RECOVERY QT PETROLEUM COSTS


24.1





The Contractor is entitled to recover the Petroleum Costs it has


defrayed within the Delimited Area, by lifting a portion of the


Hydrocarbon production exclusively from that area. The recovery


of Petroleum Costs may not in any case be achieved by drawing on


the production of Hydrocarbons from Fields outside the Delimited


Area.


For the application of the foregoing paragraph, the Contractor





shall keep a Petroleum Cost Account, in compliance with Article


26.9 and the Accounting Agreement.


24.2


Contractor is entitled to recover the Petroleum Costs after


production begins and as production progresses.


This cost recovery right gives the Contractor the right to lift a





portion of the Net Production. These liftings are limited to the


balance of the Cost Account, and, for any Calendar Year, shall


not exceed seventy (70%) percent of the Net Production obtained


during said year.


The Hydrocarbons lifted by Contractor under the provisions of





this Article are valued at the 'Fixed Price' as defined in


Article 27, for the purposes of the Petroleum Cost Account


mentioned in Article 26.9.





24.3


The State will enjoy a preference right on the quantities of


Hydrocarbons to which the Contractor is entitled within the scope


of the recovery of Petroleum Costs, when these quantities are


offered to Third Parties.


For the purposes of the application of the above provisions, the


quantities of Hydrocarbons that are given over within the scope


of exchanges required by technical constraints inherent in the


Contractor's facilities, or that are intended to save time and


transportation efforts, will not be considered as sales to Third


Parties but on the condition that the quantities exchanged are


actually intended for meeting the Contractor's needs or those of


its Affiliated Companies.





In exchange for the quantities of Hydrocarbons that are purchased


in application of the above provisions, the State will pay to the


Contractor a sum equal to the product of said quantities times


the price agreed to by the Parties. This price is determined by








50 3

reference to prices found on the international market at the time


of the sale, for equivalent quality, quantity, freight and


payment terms.


The amounts paid by the State to the Contractor within the scope





of the preference right stipulated above will be posted to the


credit of the Petroleum Cost Account, these therefore being


considered as having been recovered in cash.





24.4


When the State exercises its preference right stipulated in


Article 24.3, the Contractor will send to the Administration, no


later than fifteen days following the date of the loading of the


quantity of Hydrocarbons given over to the State, the


corresponding invoice made out in United States dollars.


Within ninety days following the reception of that invoice, the


State will effect payment in freely exchangeable currency,


according to the regulations in force. The amount due will be


paid into the Contractor’s account in a bank established in


Gabon. Should the State not make payment in the above time frame,


the amount due will carry an annual interest rate that is at most


equal to the discount rate of the Bank of Central African States


(B.E.A.C.). If payment of an invoice is not made by the State


within the above mentioned time frame, the preference right of


the State is suspended for as long as the last invoice remains


unpaid.


Regardless of the means employed to recover Petroleum Costs, by





drawing from the Hydrocarbons in conformity with Article 24.2, by


cash payments in application of Article 24.3, or by a combination


of these two methods, the total recovery, during a Calendar Year,


expressed in terms of the quantity of Hydrocarbons, may not, for


any reason, exceed the percentage of the Net Production for that


Calendar Year set in Article 24.2.


24.6





If in the course of a Calendar Year the Net Production from the


Delimited Area fails to permit the Contractor to recover


Petroleum Costs in application of the provisions of Articles 24.1


to 24.5, the amount of Petroleum Costs that are not recovered in


that Calendar Year will be carried forward to succeeding Calendar


Years until full recovery of the Petroleum Costs or expiration of


the Contract.


























51


308


24.7


In the event of the discovery in the Delimited Area of deposits


producing Hydrocarbons of differing quality, the recovery of the


Petroleum Costs shall be by payment in kind or payment in cash in


accordance with this Article, by taking into account each of the


qualities, proportionally to the Total Available Production.









































































































































52


3o9


 ARTICLE 25





PRODUCTION SHARING





25.1


After deduction by the Contractor on a part of the Net Production


for the recovery of the Petroleum Costs in application of the


provisions of Article 24, the Remaining Hydrocarbon Production is


shared between the State and the Contractor in the following


terms:


a) When the average daily Total Available Production from the


Delimited Area for a given calendar month is equal to or less


than ten thousand (10,000) Barrels, the Remaining Production is


shared between:


- the State: fifty (50%) percent


- the Contractor: fifty (50%) percent.


b) When the average daily Total Available Production from the





Delimited Area for a given calendar month is greater than ten


thousand Barrels and equal to or less than twenty-five thousand


(25,000) Barrels, the Remaining Production is shared between:


- the State: fifty-five (55%) percent





- the Contractor: forty-five (45%) percent.


c) When the average daily Total Available Production from the


Delimited Area for a given calendar month is greater than twenty-


five thousand Barrels, the Remaining Production is shared


between:


- the State: sixty (60%) percent


- the Contractor: forty (40%) percent.


In the event of a discovery in the Delimited Area of Hydrocarbons


of different qualities, the sharing between the State and


Contractor of the Remaining Hydrocarbon Production is made


separately for each quality, proportionally to the Total


Available Production.


The Contractor is entitled to its share of Hydrocarbons from the


start of the production and as it develops.


25.2


The State draws its share of the production as defined in Article


25.1 above, in kind.














53 310





However, the Contractor is required, when requested by the State,


to sell all or part of the latter’s share of Hydrocarbons under


the terms of the above-mentioned Article and reimburse the State.


In this case, Contractor will make its best effort to obtain a


sales price on the market at least equivalent to the "Fixed


Price' defined in Article 27. When this operation occurs.


Contractor will receive a sales commission in an amount


established by mutual agreement with reference to the applicable


customary business practice.


In the event Contractor is unable to sell the State's share of


the production at a price at least equal to the "Fixed Price',


Contractor will inform the state of the best price proposed. The


State will then inform Contractor whether it accepts the sale


price Contractor can obtain or prefers to receive the quantities


involved in kind.





25.3


The State may request payment of the proceeds from sales of its


production share made by the Contractor in the foreign currency


of its choice. The choice of payment currency shall be made known


to Contractor at the time of the request mentioned in Article


25.2, second paragraph. In the absence of notification, payment


shall be made in the currency in which the "Fixed Price' defined


in Article 27 is expressed.


25.4





The State has a preference right on the Contractor’s share of


production defined in Article 25.1, under the same conditions anH


following the same procedures as those set forth in Articles 24.3


and 24.4.

































































54


311


 ARTICLE 26





FISCAL SYSTEM


In connection with the Petroleum Operations performed in the


Delimited Area, the Contractor is subject to the following taxes


and royalties:


- a) the bonuses specified in Article 28; these are payable in


cash;


- b) a proportional mining royalty, during the production phase,


the rates of which are defined as follows:


- three percent (3%) when the Total Available Production


during a calendar month is equal to or less than five


thousand (5,000) Barrels per day;


- six percent (6%) when the Total Available Production


during a calendar month is greater than five thousand


(5,000) and equal to or less than seven thousand five


hundred (7,500) Barrels per day;


- nine percent (9%) when the Total Available Production


during a calendar month is greater than seven thousand


five hundred (7,500) and equal to or less than ten


thousand (10,000) Barrels per day;


twelve percent (12%) when the Total Available


Production during a calendar month is greater than ten


thousand (10,000) and equal to or less than fifteen


thousand (15,000) Barrels per day;


fifteen percent (15%) when the Total Available


Production during a calendar month is greater than


fifteen thousand (15,000) and equal to or less than


twenty-five thousand (25,000) Barrels per day;


- seventeen point five percent (17,5%) when the Total


Available Production during a calendar month is greater


than twenty-five thousand (25,000) Barrels per day;


The total Available Production subject to the proportional


mining royalty is reduced by the following quantities:


1/ quantities lost or burned at the time of the production


tests or at the production, gathering or storage


facilities on the Exploitation Area, provided that the


Contractor has abided by the applicable regulations and











55


312


the guidelines and recommendations of the Administration


on this matter;


21 reinjected into the Field of the Exploitation Area;


3/ used for preparation of drilling fluids for the





requirements of the Delimited Area;


4/ used for operations performed, after drilling, on wells


of the Field of the Exploitation Area;


5/ consumed in the turbine engines providing the energy


used:


i) to drive the necessary pumping units on the wells of


the Field of the Exploitation Area,


ii) to gather the Hydrocarbons on the Exploitation Area,





iii) to operate the drilling facilities established on


the Delimited Area for the requirements of said Area.


The quantities lifted or used downstream from the point


where the Total Available Production is discounted for the


above-mentioned requirements are acceptable deductions from


the proportional mining royalty base only after exceptional


authorization from the Administration, issued upon justified


request from the Contractor.


The proportional mining royalty is paid either in kind or in


cash, at the State's option. If the latter has failed to let


its choice be known, it will be considered having opted for


payment in cash.


When the proportional mining royalty is paid in cash, it is


computed on the FOB value of the Hydrocarbons. For


determination of this FOB value, the price adopted is the


"Fixed Price* defined in Article 27.





Payment in cash of the proportional mining royalty is made


to the office of the tax collector not later than the


twenty-eighth of each month, on the basis of the average


monthly production of the preceding calendar quarter.


Adjustment is made not later than January 28th of each year,


for the preceding Calendar Year, on the basis of the taxable


Total Available Production of said year and of the


corresponding "Fixed Price*.


At the start of production and during the period when the


above-mentioned average monthly production cannot be








56


313


determined, the amount of the royalty is calculated on the


basis of the effective production of each month considered


and is paid within the same above-mentioned periods of time.


If the State wishes to receive in kind all or part of the


proportional mining royalty, it advises the Contractor in


writing to this effect at least one hundred eighty days in


advance, specifying the quantity which it wishes to receive


in this form during the period considered.


The proportional mining royalty is not included in the





Petroleum Costs.


c) the annual surface royalty set forth by the regulations in


effect. This royalty, included in the Petroleum Costs, is


paid in cash, in advance and per full Calendar Year, on the


basis of the surface area held on January 1st of each year


and, for the first year, on the surface area held on the


Effective Date;


d) the duties and taxes collected at the time of importation by





the Customs Administration, such as defined in Article 34;


e) The Tax on Profits and Revenues (Corporate Tax), which each


entity forming the Contractor has to pay, and which is


calculated applying the general tax rate in force and in


accordance with the provisions of Article 26.1. Payment of


the Corporate Tax is made to the appropriate tax


administration, by the State, for the account of the above


mentioned entities. In accordance with Article 26.3, this


quantity is included in the portion due to the State under


provisions of Article 25.1.








The Corporate Tax thus due for a given Calendar Year and


paid to the State in kind, is determined on the basis,


notably, of the gross revenue consisting of the turnover


from the quantity of Hydrocarbons available thereto in


application of Articles 24 and 25, or their equivalent in


cash, as well as from the quantities delivered to the State


as payment for the Corporate Tax and, on the other hand,


from deductible expenses, including the bonuses as defined


in Article 28, the cost of materials, interests, and


payments into the Hydrocarbon Support Fund, as defined in


Article 21.7, as indicated and defined in the tax laws in


effect and in Article 26.1. The pertinent taxable profit is


that from the Annual Statistical and Fiscal Declaration


mentioned in Articles 26.4 and 26.5.














57


314


26.2


In regards to the fiscal and customs regulations, each company


which makes up the Contractor is treated as a distinct entity.


However, if one of these units does not meet its fiscal


obligations resulting from this Contract, the other entities will


be substitutes thereof.


26.3





The quantity of Hydrocarbons which the State receives during any


Calendar Year in application of Article 25.1 includes:


a) the part representing the mining rights other than the


annual surface royalty and the proportional mining


royalty as defined in Article 26.1 abov.e;





b) and, in accordance with the provisions of the above


Article 26.1 e), the part which represents the


corporate tax to be imposed on the companies which make


up the Contractor of the Hydrocarbon operations carried


out in the Delimited Area, and computed at the rates


defined in the tax laws in effect.


26.4


Each company forming the Contractor will keep, by Calendar Year,





separate accounting records for the Petroleum Operations,


rendering it possible to detemjine, in particular, the profit and


loss balance statement and a detailed balance sheet showing both


the results of said operations and the assets and liabilities


pertaining and related thereto. This accounting system must be in


compliance with the applicable regulations in effect in Gabon,


such as the General Accounting Plan for Companies. It has to


include, in particular, all the data required for the preparation


of the Annual Statistical and Fiscal Statement and its


attachments.


26.5


Each of the companies forming the Contractor is required to


deliver to the person responsible for the Departments in charge


of Hydrocarbons, not later than April 30 of each year, a copy of


the tax return regarding the Corporate Tax pertaining to the


previous Calendar Year, such as required by the applicable tax


regulations.


The profit and loss account and the balance sheet must clearly





show the amount of amortization and of write-offs done during the


year. As far as the expenditures which have not yet been


amortized are concerned, these amortizations are calculated and


accounted for as the difference, if it is positive, between the


maximum of the Cost Recovery Account as defined in Article 24.2











58 31 5





and the total of the charges debited to the profit and loss


account.





26.6


The Tax Administration, after examining the above-mentioned


documents, will issue to each one of the companies forming the


Contractor, within sixty days after the date of presentation, the


originals of the tax statements and all other documents


certifying that it has met its fiscal obligations resulting from


the applicable regulations, subject to the Administration's


rights to audit and recovery set forth by the regulations in


force.





Regarding tax regulations, the value of Hydrocarbons available to


the Contractor during a Calendar Year, in application of Articles


24 and 25.1 is considered as representing the recovery of


Petroleum Costs and the net profit after Corporate Tax.


26.7





Apart from the bonuses defined in Articles 28.1 and 28.2, the


taxes, rights and royalties established in Article 26.1, the


duties and taxes collected by the Customs Administration, as


established in Article 34, the contribution to the Hydrocarbon


Support Fund, established in Article 21.7, payments made under


provisions of Article 39 and, with the exception of the property


tax on structures due under common law on residential buildings,


the Contractor is exempted, in connection with the Petroleum


Operations, from any other taxes, royalties, duties, imposts and


contributions.


The Contractor's suppliers, subcontractors, service contractors


and Affiliated Companies are exempted from the domestic Turnover


Tax and the tax on transactions due on sales made, work performed


and services rendered within the framework of the Contract.





The profit earned by the companies forming the Contractor within


the framework of the Petroleum Operations is exempt from any tax


and withholding at the source due in connection with distribution


to stockholders or partners or allocation thereof.


When by mistake, one of the companies forming the Contractor has


been assessed with taxes, duties, imposts, withholding or


royalties from which it is exempted in application of the


provisions of this Article, it may charge the amount thereof to


the Petroleum Costs, if it is not released from this payment


obligation one year after filing a claim to this effect with the


proper Administration. This charge is subject to written prior


approval from the Minister of Hydrocarbons, so that the grounds


thereof may be verified.











59





w /


The above-mentioned exemptions are not applicable to duties and


taxes due for services rendered by Gabonese Administrations,


communities and public institutions used by the Contractor.


However, the rates applied to the Contractor, its contractors,


carriers and clients, and its agents must correspond to the


magnitude of the services rendered and be non-discriminatory.


More specifically, the Contractor will still be subject to local,


municipal and port charges in effect; however, the rates thereof


must not be discriminatory in regards to the Contractor with


respect to those applied to companies conducting similar


activities.


26.8





Assignments of any nature between the companies signing the


Contract and their Affiliates are exempted from all duties and


taxes due in this connection to the Registration Administration.


26.9


Concurrently with the obligation to keep an accounting system in


accordance with that established by the applicable regulations


and the provisions of the Contract, the Contractor will keep a


Petroleum Costs Account in which to enter, on one hand, all the


recoverable expenses, pursuant to the provisions of the Contract


and of the Accounting Agreement, incurred for the requirements of


the Petroleum Operations, as they are actually incurred and, on


the other hand, the recovered amounts of the Petroleum Costs, as


this recovery takes place, in addition to receipts and proceeds


of any nature to reduce or deduct from the Petroleum Costs, as


they are collected.


The Petroleum Costs Account shall be subdivided into subaccounts





making it possible specifically to show:


a) exploration expenses: payments of any nature connected


with geological, geophysical, drilling well equipment


and production testing operations (as well as all


related operations) aimed at discovering Hydrocarbons;


b) appraisal expenses: payments of any nature connected





with geological, geophysical, drilling, well equipment


and production testing operations aimed at determining


if the Field discovered is commercially exploitable and


at determining its boundaries;





c) development expenses: payments of any nature, such as:


drilling, well equipment and production testing,


installation of platforms and pipelines and all other


operations performed for the production.











60





317


transportation/ processing and storage of Hydrocarbons


at the loading terminal;





d) exploitation expenses: payments of any nature connected


with the study, the management and the execution of


operations directly or indirectly connected with


Hydrocarbon exploitation and maintenance of production,


processing, storage and transport facilities.





In order to be considered as Petroleum Costs, the above-mentioned


expenses must be strictly necessary for the requirements of the


Petroleum Operations and must meet the criteria stated in the


Accounting Agreement.


Expenses incurred in connection with non deductible costs, those


the recovery of which is excluded by express provisions of the


Contract or of the Accounting Agreement, those of a sumptuary or


exaggerated nature, gratuities not authorized by the regulations


and, in general, all those expenses which are not required for


proper management of the Petroleum Operations, are not


recoverable; consequently, they must not be debited to the


Petroleum Costs Account.


At any time, the balance of the Petroleum Costs Account shall





show the amount not yet recovered by the Contractor.


The practical methods for application of the provisions of this


Article 26 are defined in the Accounting Agreement, Attachment


No. II of the Contract.


26.10


1 The Petroleum Costs account is debited notably for the





expenses linked to:


a) construction, manufacturing, creation, realization,





purchase, renting, maintenance and repair of the


assets, including consumable materials;





b) exploration and research;


c) taxes, rights and duties assessed and paid in Gabon;





d) personnel and personnel environment;





e) services rendered by Third Parties, Affiliated


Companies and companies constituting the Contractor,


including technical assistance;














61


318


f) insurance policies subscribed and settlements of


damages;


g) legal costs;





h) interest, agios and financial charges paid to


creditors, for their real amount and insofar as the


loans and debts to which they are linked are necessary


for the Petroleum Operations and correspond to a real


financing need for these Operations.





However, the expenses of such nature are not chargeable


to the Petroleum Costs, giving right to recovery,


according to articles 24, 26.9, in the following cases:


-in general, when the loans and debts to which they


are linked are not necessary for the financing needs


of the Petroleum Operations;


- when they are linked to the loans and debts of the


Contractor, which may be contracted for financing


prospection and exploration operations;


- when they are linked and up to the portion of the





loans and debts which exceeds of the amount of


development and production expenses.





The interest paid to shareholders, Affiliated Companies


and companies constituting the Contractor for the


amounts thereby lent or advanced are admitted within


the same limits and under the same conditions as


hereinabove, but, moreover, within the maximum limit of


the interest computed at the annual discount rate of


the Banque des Etats de 11Afrique Centrale plus two


points.


i) the exchange losses incurred in connection with the


Contractor's loans and debts, under the same conditions


and following the same procedures as those provided in


paragraph h) hereinabove.


Moreover, the Contractor should not be covered against


exchange losses or loss of profits arising from risks


pertaining to the origin of the Contractor's own funds


and to self-financing, and the losses which may be thus


incurred cannot, in any case, be considered as


Petroleum Costs; they can, consequently, neither be


entered in the Petroleum Costs account nor give right


to recovery. The same provisions are applicable for











62


319


insurance premiums and costs of policies which the


Contractor would have subscribed to cover such risks.


The exchange losses incurred and directly linked to


claims concerning Petroleum Operations and directly


handled in foreign currency are also chargeable to the


Petroleum Costs;


j) the costs incurred for controls and verifications made


by the Administration;


k) overhead expenses, under the conditions provided in the





Accounting Attachment.


2 Payments made for costs, charges or expenses not directly


attributable to Petroleum Operations, those for which the


deduction or the offsetting is excluded under the provisions of


the Contract or of the Accounting Attachment, or those which are


not necessary for the needs of said Petroleum Operations are not


chargeable to the Petroleum Costs. This concerns notably payments


made for:


a) costs of capital increase;





b) marketing costs;


c) costs related to the period prior to the Effective


Date;


d) costs of independent audits paid by the Contractor


within the framework of particular relations between


the companies constituting the Contractor;


e) bonuses and Hydrocarbons Support Fund provided by


articles 21.7 and 28;


f) costs incurred for meetings, studies and works realized


within the Joint Operating Agreement between the


companies forming the Contractor;


g) interest, agios and financial charges which do not meet


the conditions set forth in paragraph 1, h) hereinabove


and in Article 1.4;


h) any exchange losses which may be incurred and which do


not meet the conditions set forth in paragraph 1, i)


hereinabove;


i) exchange losses which constitute losses of profit


arising from risks connected with the origin of the








63 320


Contractor’s own funds and self-financing, such as set


forth in paragraph 1, i), 2nd part hereinabove.





3 The following shall be deducted from the Petroleum Costs:


a) the proceeds from the quantities of Hydrocarbons which





belong to the Contractor according to the provisions of


article 24, by the corresponding Fixed Price, such as


defined in Article 27;


b) the amounts which may be received for the recovery of





Petroleum Costs, according to the provisions of Article


24.3;


c) all other related, closely related or accessory


receipts, revenues, proceeds and profits, directly or


indirectly linked to the Petroleum Operations and such


as enumerated in the Accounting Attachment.


26.11


The Accounting Agreement, which is an integral part of the


Contract, establishes, although not mentioned in the Contract,


the definition and nature of the expenses to be considered as


Petroleum Costs, those which do not entail recovery and,


limitations of the amount of the expenses which may entail entry


in the Petroleum Costs. It establishes the Contractor's


obligations regarding procedures and presentation of accounting


records for the Petroleum Costs, reports, minutes, statements and


information to be furnished to the Administration.






























































64


321


 ARTICLE 27





VALORIZATION OF HYDROCARBONS


27.1


The quantities of Hydrocarbons,


- drawn for the recovery of the Petroleum Costs according to


provisions of Article 24,





- representing the proportional mining royalty mentioned in


Article 26.1, b,


- constituting the Contractor's gross revenue specified in


Article 26.1,e, second paragraph,


- representing the State's share of production marketed by


the Contractor at the State's request, in application of the


provisions of Article 25.2,


- delivered in order to contribute to the satisfaction of


the internal consumption needs pursuant to the provisions of


Article 35,


- received as payment from the State, in application of the


provisions of Article 19.4,


are valorized by application of the price set by the Admini¬


stration for Gabonese Hydrocarbons, hereinafter referred to as


the "Fixed Price".


27.2


The "Fixed Price* is determined by the Administration by


reference to the official Hydrocarbon prices defined by the


Organization of Petroleum Exporting Countries (OPEC) taking into


account the international market prices for Hydrocarbons of


similar quality.


It is calculated FOB value every six calendar months for the


previous six calendar month period on the basis of pertinent data


and information; it is notified to Contractor for application and


any necessary adjustments.





If no "Fixed Price* has been provided to Contractor for a given


six calendar month period, the "Fixed Price* resulting from the


most recent notification will be used provisionally.














65


322


27.3


If, for a given period, the "Fixed Price' applied is higher than


the market price for sales to Third Parties of Hydrocarbons


originating from the Exploitation Area, the difference will be


recovered by Contractor by recording a debit in the Petroleum


Cost Account. If, conversely, the "Fixed Price' is lower than the


above-mentioned market price, the difference is credited to the


Petroleum Cost Account.





27.4


The market price mentioned in the above paragraph is determined


by the Parties who will meet periodically to this effect, on the


basis of the evolution of the international Hydrocarbon market,


in accordance with procedures to be defined.




















































































































66


323


 ARTICLE 28





BONDSES


28.1


The Contractor will pay to the State the sum of US dollars five


hundred thousand {US$ 500,000) on the Effective Date.





28.2


In addition, the Contractor shall pay to the State the equivalent


in CFA francs of:


a) five hundred thousand (500,000) US dollars at the start


of production from the Delimited Area;


b) two hundred thousand (200,000) US dollars when the rate


of Hydrocarbon production in the Delimited Area reached, for the


first time, the level of twenty thousand Barrels per day for a


period of thirty consecutive days;


c) two hundred thousand (200,000) US dollars when the rate





of Hydrocarbon production in the Delimited Area reached, for the


first time, the level of thirty thousand Barrels per day for a


period of thirty consecutive days;


Each of the amounts mentioned above will be paid within the next





thirty days after the starting date of production, for the first


amount, and within thirty days after the end of the corresponding


reference period for the other two.





28.3


The payments mentioned in Articles 28.1 and 28.2 hereinabove


cannot in any case be considered as Petroleum Costs.


















































67


324


 ARTICLE 29





MEASUREMENT AND METERING OF THE HYDROCARBONS





29.1


The Contractor shall measure and meter all the Hydrocarbons


produced after extraction of water and foreign substances.


The point where the quantities of Hydrocarbons are measured and





metered and the point where the instruments, equipment and


facilities to which they are related must mandatorily be approved


by the Administration.





The authorized Administration representatives will verify these


measurements and counts and check the instruments, facilities and


equipment used, at least once every three months. If the


Contractor wishes to modify or change said measuring instruments,


facilities and equipment, it shall inform the Administration at


least fifteen business days in advance in order to enable the


Administration representative to be present at the time of said


modification or change.





Modifications and changes affecting the points, instruments and


equipment mentioned in the above second paragraph must be


previously approved by the Administration.


29.2





In order to be deductible, the quantities of Hydrocarbons used


for the Petroleum Operations or lost must be the subject of a


monthly detailed explanatory statement addressed to the


Administration.





29.3


If any measurement errors which would result in shortages or in


excesses are detected on the instruments, facilities and


equipment used by the Contractor, said errors shall be considered


as having existed since the date when the last verifications were


or should have been made by the Administration and corrections


must be made accordingly.





All expenses and all costs incurred by Contractor, its


subcontractors and suppliers and related to the lifting of


natural gas by the State shall not be considered part of the


Petroleum Costs but shall be charged to the State which shall


reimburse Contractor in accordance with a an agreement to be


agreed upon by both parties.




















68


3ZJ


 ARTICLE 30





NATURAL 0AS


30.1





In the event of a Natural Gas discovery, the Contractor, after


carrying out the appropriate studies and after consultation with


the Administration, shall determine whether exploitation can be


undertaken commercially.


All the provisions of the Contract shall be applicable mutatis


mutandis and, more specifically, those pertaining to the Set


Price defined in Article 27, the recovery of Petroleum Costs


defined in Article 24, the Remaining Production sharing


regulations defined in Article 25, the bonuses defined in Article


28 and the royalties and taxes defined in Article 26.1 and 26.7,


if the discovery is declared commercially exploitable.


However, in order to take the conditions particular to the





exploitation of Natural Gas into account and to promote its


development, other specific benefits may be granted the


Contractor when they are duly justified.





Whenever it is necessary to determine the equivalence between


Natural Gas and Crude Oil and, more specifically, especially in


order to determine the procedures for lifting the quantities of


Hydrocarbons allocated for recovery of the Petroleum Costs


defined in Article 24, the sharing of Remaining Production


defined in Article 25, and the bonuses defined in Article 28.2,


it is agreed that one hundred sixty-five cubic meters of Natural


Gas are equal to one barrel of Crude Oil. This equivalence shall


be stated by mutual agreement.


30.2


If the Contractor does not consider the Natural Gas discovered to


be commercial, in this case, the Contractor forfeits any right to


this discovery deriving from the Contract. The State is then


entitled to exploit this discovery on its own without the


obligation to pay any indemnity to the Contractor.


30.3





Any quantity of unmarketed associated Natural Gas, apart from the


quantities used for the Petroleum Operations, shall be utilized


in order to improve the Crude Petroleum recovery rate through


reinjection pursuant to the provisions of Article 21.4. Flaring


shall be limited to the bare minimum; the Contractor is required


to comply with the applicable regulations in force and the


pertinent recommendations from the Administration.














69


326


In addition, if the Government wishes to use the associated


Natural Gas produced in the Exploitation Area and not marketed or


used by the Contractor in the above-defined conditions, the





Parties will decide by mutual agreement on any additional


technical actions which may be necessary for the shipment and use





of said Natural Gas.


















































































































































70


327


 ARTICLE 31





CURRENCY EXCHANGE CONTROL





31.1


The Contract will be governed by the currency exchange regulation


in force.





31.2


No restriction will be imposed on importation by the Contractor


of the funds intended for the performance of the Petroleum


Operations.





31.3


The Contractor will be authorized to freely convert its assets in


Gabon to-convertible currencies; it will also have the right to


export the funds it owns in Gabon in excess of its local needs,


without being discriminated against.


31.4





In addition, the Contractor will have the right not to import


into Gabon the funds intended for performance of the Petroleum


Operations requiring payment to be made abroad when due.

























































































71 32S





 ARTICLE 32





EXEMPTION FROM THE OBLIGATION RELATIVE TO EQUIPMENT B0ND8 AND


INVESTMENT CERTIFICATES





In view of the magnitude of the investments to be made by the


Contractor, the latter is exempt for the duration of the Contract


from any obligations relative to equipment bonds and investment


certificates pursuant to Ordinance No. 3/63 dated January 24,


1963, and Ordinance No. 36/67 dated August 1, 1967.




















































































































72





329


 ARTICLE 33





Jiccoasrnra johbod ahd monetary unit used for bookkeeping purposes


33.1





The Contractor's accounting records and books are kept in


accordance with the General Accounting plan of Companies in


effect in Gabon and, regarding Petroleum Costs, with the


Accounting Agreement even if the provisions of said Agreement do


not appear in the Contract The originals of said accounting


records and books as well as all supporting documentation shall


be kept in Gabon, and presented to the Administration singly at


the latter's request.





33.2


The accounting records and books for the Petroleum Operations are


kept by the Contractor in French and amounts are expressed in US


dollars. These accounting books and records are used in order to


determine the gross income, the exploitation expenditures and net


profits and in order to prepare the tax return. These provisions


also apply to the Petroleum Cost Account mentioned in Article


26.9 and in the Accounting Agreement.


The Contractor must indicate and justify the currency of origin





and the exchange rates used for keeping the accounting records


and books and the Petroleum Costs Account.


33.3


Whenever it is necessary to convert the expenditures and incomes


expressed in another currency into CFA Francs, the exchange rates


used will be equal to the arithmetic average of the daily closing


market sales rates for said currency for the month in which the


expenses were paid and the incomes received. Until the arithmetic


average of the month considered is known, the Contractor will


temporarily use the arithmetic average of, the previous month.





In the event of official devaluation or revaluation during a


given month, two arithmetic averages will be applied, the first


calculated on the basis of the daily closing market sales rates


for the period from the first of the month up to, but excluding,


the date of said devaluation and revaluation, and the second on


the basis of the daily closing selling rates for the period


starting and including the day of said devaluation or


reevaluation until the last day of the month considered.


























73





330


 ARTICLE 34





CUSTOMS SYSTEM AND IMPORT AMD EXPORT DOCUMENTS





34.1


For the duration of the Contract, the Contractor will benefit


from the following customs privileges:


- a) Within the scope of the provisions of the Customs Code,





importation by the Contractor itself, Third Parties on its behalf


and its subcontractors under the temporary admission system


{normal or special, depending on the case) of all the equipment,


materials, products, machines and tools required for the


performance of the Petroleum Operations and not owned by the


state pursuant to the provisions of Article 10.1, subject to the


provisions of Article 10.3 and provided that these goods are


necessary, exclusively intended and actually used for the


Petroleum Operations and are to be reexported after they are


used.





- b) Admission with complete exemption from all entry taxes


and duties for materials, products, equipment, machines and tools


exclusively intended and actually used for petroleum prospecting


and exploration in the Delimited Area and appearing on the list


provided in Attachment II of Deed no. 13/6S-UDEAC-35, dated


December 14, 1965 and subsequent amendments.





This exemption covers imports made directly by the Contractor


itself, by Third Parties on its behalf and by its subcontractors,


subject to presentation of a final utilization certificate.


- c) Under the same conditions as above, admission at the


comprehensive 5% reduced rate of the duties and taxes collected


at importation of materials, products, equipment, machines and


tools which, although not falling in the category of goods


mentioned in the preceding paragraphs a) and b), are nevertheless


necessary for, intended and assigned to the production, storage,


processing, transportation, shipping and transformation of


Hydrocarbons from the Exploitation Area and provided that they


appear in an approved development program.


The reduced rate benefit is granted by the Director of Customs


and Indirect Taxes at Contractor's request:


- upon presentation of a general importation program,





• or following a special admission request formalities for





the reduced rate benefits to be filed at least fifteen days


before arrival of the goods involved.














74





331


These requests must specify:


- the trade name of the goods and the corresponding customs





tariff code,


- quantities and their FOB and CIF values.





- d) Effects and furnishing for personal and household use


imported by Contractor's foreign personnel assigned to the


Petroleum Operations at the time of their change of residence are


admitted tax free pursuant to the provisions and limits


established by the Customs Code, such as Articles 17 to 20 of


Deed 13/65-UDEAC-35, dated December 14, 1965.


34.2





The Contractor, Third Parties importing on its behalf and its


subcontractors agree to import items required for the performance


of the Petroleum Operations only insofar as said goods are not


available in Gabon under similar price, quality and delivery


schedule conditions.





34.3


All the goods not covered by the above provisions are subject to


the taxes and duties levied by the Customs Administration under


the common law system.


34.4





Insofar as they have met all their customs obligations resulting


from Articles 34.1 to 34.3 and the regulations in force, the


Contractor, Third Party Importers for its account and its


subcontractors, may reexport free of all taxes and duties the


goods imported pursuant to the provisions of Article 34.1,a, and


which are no longer necessary for the performance of the


Petroleum Operations.


34.5





All importations, exportations and reexportations made under the


Contract are subject to the formalities required by the Customs


Administration.


34.6


The Contractor is jointly and severally responsible with Third


Parties importing on its behalf and with its subcontractors


towards the Customs Administration for any abuse detected in the


exercise of the benefits provided by the provisions of this


Article. Any fines, penalties and payments of any nature for


which it may be liable in this regard do not constitute Petroleum


Costs.














75





332


34.7


All customs clearing operations performed within the framework of


the Contract are subject to the provisions of Ordinance No. 20/87


of October 24, 1987.















































































































































76





333


 ARTICLE 35





comtrzbotzom to jvketim? the seeds or the domestic market





35.1


Contractor is required to contribute to meeting the consumption


needs of the Gabonese domestic market by delivering to the State


or to an organization designated by the State a quantity of


Hydrocarbons in proportion to its production share as defined in


Articles 24.2 and 25.1 as compared to the total production of


Gabon. The quantity to be delivered will be determined prior to


the end of each Calendar Year for the subsequent Calendar Year on


the basis of the projected production and domestic consumption


for the Calendar Year involved. Any necessary adjustments will be


made as soon as the actual final data is available.





35.2


The price for the sale by Contractor of the portion of


Hydrocarbons intended to meet the needs of the domestic market is


equivalent to the Set Price less a twenty-five percent discount.


It is payable in CFA Francs. The aforesaid discount is entered in


the Petroleum Costs Account.





35.3


The Hydrocarbons sold under the provisions of this Article are to


be delivered by Contractor to the place of use or consumption


designated by the Administration, using available and customary


means of transportation.













































































77





334


 ARTICLE 36





EXPORTING, TRANSFER OF TITLE AND REGULATIONS FOR NAKING THE


BYDROCARBONS AVAILABLE





36.1


Subject to the regulations in force and for the entire duration


of the Contract, the Contractor, its customers and their carriers


shall have the right to export through the export point chosen to


this effect, the share of Hydrocarbons to which the Contractor is


entitled under the terms of this Contract, after deducting all


the deliveries made to meet the needs of the Gabonese domestic


market pursuant to the preceding Article 35.





36.2


The ownership of the above-mentioned portion of Hydrocarbons is


transferred to the Contractor at the time it actually takes such


share. However, as the production is taken, the Contractor is


required to subscribe to any necessary insurance policies in


order to cover any damages or losses which may arise and affect


the Hydrocarbons.





For the accounting requirements of the Petroleum Costs, lifting


of the above-mentioned Hydrocarbons is presumed to take place at


the end of each calendar month for quantities having left during


that month the storage facilities for the evacuation pipelines or


the export loading facilities.


In case of exportation by tanker, the transfer of ownership takes


place at the connection point between the tanker and the loading


facilities.


The transfer of ownership of the Hydrocarbons assigned by the





Contractor as contribution to meeting the needs of the Gabonese


domestic market occurs CIF at the utilization site, at entry of


the storage facilities of the entities to which these


Hydrocarbons are allotted.


36.3


The Administration appoints a company or experts to monitor,


inspect and control the Hydrocarbon lifts and manage the loading


terminal and its facilities.


The expenditures entailed by these operations are reimbursed to





the Administration by the Contractor, which includes them in the


Petroleum Costs Account.





36.4


The Parties will meet periodically to establish a provisional


lifting schedule and will make their best effort to load jointly.








78


333


if this should prove necessary, in order to avoid Overlifting or


Underlifting on the part of one Party towards the other.


As soon as a sufficient quantity of Hydrocarbons is stored at the





export point to make it possible to load tankers, the first


shipments are made for the account of the State. The Hydrocarbons


are then available to the Contractor for the next tanker loading


operations for its own account, until an Underlifting situation


is created for the State.


Bach of the subsequent loading operations shall be carried out





for the account of the Party which is in an Underlifting


situation





However, if one of the Parties cannot lift its share of


production in a timely manner, the other Party will have the


option to dispose of it, provided that it later gives an


equivalent quantity of products to the defaulting Party.


The practical terms for application of the provisions of this


Article can be negotiated at any time by mutual agreement between


the Administration and the Contractor, such as within the


framework of a lifting and availability agreement.






















































































79


336


 AKTICLB 37





PROTECTION OF RIGHTS





37.1





The Contractor will take all the necessary action to achieve r,hp


objectives of the Contract and give reasonable compensation to


Third Parties for any damage which it, its employees, contractors


or subcontractors and their employees, while carrying out their


activities under the Contract, may cause to the person, property


or rights of Ibird Parties. The Contractor will be civilly liable


for all losses or damages suffered by Third Parties due to its or


their errors or negligence and shall bear the cost of all


compensation and damages payable.





37.2


The State will take all the necessary and possible actions in


order to facilitate the implementation of the Petroleum


Operations and the achievement of the objectives of the Contract


and to protect the property and rights of the Contractor, its


employees and agents on the territory of Gabon and its


appurtenances.





37.3


At the Contractor’s request and against justification, the


Administration will prohibit the construction of residential or





commercial buildings in the vicinity of facilities which may be


declared dangerous due to the Petroleum Operations and will take


the necessary precautions to prevent vessels from mooring or


going near submerged pipelines and to prohibit any interference


with the use of any other facilities required for the Petroleum





Operations, both onshore and offshore.

































































80


337


 ARTICLE 38





PERSONNEL


38.1





For the performance of the petroleum Operations, the Contractor


shall employ, insofar as possible, Gabonese national labor in the


minimum proportion of seventy-five percent of the total work


force. Specialized and qualified personnel may be recruited


outside Gabon if not available in Gabon.


The Contractor shall inform the General Hydrocarbons Department


of any available positions and of the action taken towards


recruitment of Gabonese personnel.





38.2


The competent Administration will issue, in accordance with


regulations, the necessary documents for entry of foreign


personnel into Gabon, such as visas, work permits and residence


cards. The Contractor will take the necessary measures to this


effect.


At the Contractor's request, the Administration may assist to





facilitate all immigration formalities with the proper


authorities at the entry and exit points in Gabon for the


Contractor's employees, contractors, subcontractors and agents


and their families.





38.3


The employees working for the Petroleum Operations shall be


placed under the authority of the Contractor or of its


contractors, subcontractors and agents in their capacity as


employers. Their work, working hours, salaries and any other


conditions related to their employment conditions will be


determined by the above-mentioned employers, in accordance with


the labor and social laws in force in Gabon.


38.4


The Contractor must train and take the necessary steps to ensure


promotion of its Gabonese employees in close cooperation with the


Administration. The Technical Consulting Committee is informed of


the procedures for application of application of this provision.





























338


81


 ARTICLE 39





TRAJ • it \r OF QABOHBSE NATIONALS OTBER TOUT TBOSE EMPLOYED BY TBX


CONTRACTOR





39.1


In addition to the obligation set forth in Article 38, the


Contractor must contribute to the training of other Gabonese


nationals designated by the Administration by allocating to said


training for the entire duration of the Contract:


- a) sixty thousand US dollars per Calendar Year during the


period preceding production;


• b) one hundred thousand US dollars per Calendar Year from


the start of production.


The contributions defined in the preceding paragraphs a) and b)





are allocated:


- a portion for the training of Gabonese nationals in higher


level schools or universities of international reputation;


the corresponding training program will be determined by the


Administration in charge of Hydrocarbons;


- a portion for "on-the-job" training of Gabonese nationals.


This training will take place at the Contractor's jobsites


and major centers of activity. The conditions of this on-


the-job training will be defined in each case by the Parties


through mutual agreement;





a portion for training outside the Contractor's


structures, in the form of seminars and assignments to other


companies, of Gabonese nationals designated by the


Administration.





The terms for distribution of the sums mentioned in this


Article will be decided by mutual agreement between the


Administration and the Contractor, depending on national


priorities.


39.2





The contributions mentioned in this Article are included in


the Petroleum Costs.























82 339





 ARTICLE 40





ACTIVITY REPORTS DORIMO TBE DEVELOPMENT AMD EXPLOITATION PERIOD


40.1


Unless otherwise specifically stated, the provisions of Article


11 of the Contract pertaining to the documents and data relative


to the exploration operations, the activity reports and other


information are applicable mutatis mutandis to the development,


exploitation and transportation operations.


40.2





The activity reports shall also include a statement of the


production obtained during the previous month and a statement of


the quantities of Hydrocarbons sold during the same month by the


Contractor on its own behalf and, if applicable, on behalf of the


State in application of the provisions of Article 25.2,


specifying the reference data of the sale contract and,


especially, the buyer's name, unit price and total amount of the


sale, characteristics of the Hydrocarbons sold and country of


final destination.


40.3


The monthly activity reports must also include:





- a) data concerning all the exploitation, development,


production and exploitation operations performed during the


Calendar Year, including the total quantities of


Hydrocarbons produced and sold;


- b) data concerning all transportation operations and the





location of any major facilities constructed by the


Contractor;


- c) a statement specifying the number of employees, their


title, nationality and the total amount of their salaries


and wages, as well as a report on the medical services and


equipment made available to these employees;


- d) a descriptive statement of all the capital assets





acquired or created with the indication of the date and


price or cost of acquisition.





40.4


Each entity forming the Contractor will also transmit to the


Administration in charge of Hydrocarbons by April 30 of each year


a copy of its statistical and tax declaration mentioned in


Article 26.5 and information and documentation and data to be


attached.











83


340


40.5


The Contractor will notify the Hydrocarbons Administration in


writing, as promptly as possible, of any damage of any nature


whatsoever caused to the Fields or to the production facilities


and will take all necessary action to terminate and repair said


damage.





40.6


The provisions of Article 11.5 are applicable, mutatis mutandis,


to any document or sample connected with the development,


exploitation and transport operations and the Parties are subject


to the same obligations.


























































































































84





341


 ARTICLE 41





PAYMENTS


The proceeds from Hydrocarbons sales made by either of the


Parties for the account of the other must be remitted within


thirty days following the date of the lift, unless otherwise


agreed between the Parties in consideration of specific marketing


conditions.


Any other payment to the State must be made when due unless


otherwise provided in the Contract.


Hydrocarbons transfers to the State made within the framework of


contribution to the requirements of the domestic market as


mentioned in Article 35 are paid for within thirty days and, in


the event of difficulties, within ninety days after the delivery


date.



















































































85


342


 ARTICLE 42





ASSIGNMENT OF INTERESTS


42.1





Each one of the companies forming the Contractor may assign all


or part of its interests deriving from the Contract to Third


Parties, if their good technical and financial reputation is


well-established; the assignees will then become jointly and


severally responsible, with the other companies forming the


Contractor, for fulfillment of the clauses of the Contract. The


assignor's rights and obligations related to the portion of


interest thus assigned are fully transferred to the assignees.





Nevertheless, after start-up of production, the State has a


preference right on the above-mentioned assignments under the


conditions of and in accordance with the procedures described


below. It then replaces Third party buyers at the same terms and


conditions.


42.2


Before an assignment to Third Parties goes into effect, the


assignor must obtain the approval of the Administration. This


approval can not be withheld without valid reasons. To this


effect, it is required to inform the Administration in writing,


specifying the names, capacities and nationalities of the buyers,


all data regarding their financial and technical capabilities,


their legal status in addition to the financial terms and


procedures of the assignment planned, and to deliver a certified


copy of the assignment agreement, signed and executed subject to


the suspensive condition of approval by the Administration or


waiver on the part of the State to exercise the preference right


described in Article 42.1.


If the Administration does not oppose the assignment in writing


within thirty days after the date of receipt of the above


information and if the State does not exercise its preference


right stated in Article 42.1 within the same 30-day period, this


approval is considered granted.





42.3


If, due to partial assignment of its interest, the assignor earns


a financial profit, this will be deducted from the Petroleum


Costs. If the assignment pertains to all its interests, the


assignor is subject under common law to Corporate Tax on the


amount of this profit.


For application of the preceding paragraph, the term "financial


profit" refers to the difference, if positive, between the


assignment price and the non-reevaluated amount of the Petroleum











86


343


costs not yet recovered by the assignor and confuted, in the case


of partial assignment, proportionally to the percentage interests


assigned. The assignor communicates to the Administration all


information of such nature as to enable the latter to determine


this profit.





When, in the case of partial assignment, the price obtained is


less than the share of unrecovered Petroleum Costs pertaining to


the assigned interest, the assignor records a decrease in its


accounting of said share of Petroleum Costs, it loses any right


to recover the negative difference involved.


The assignee enters in its accounting records the Petroleum Costs


not recovered by the assignor pertaining to the interest acquired


or the actual acquisition price if this is less than said


Petroleum Costs not recovered by the assignor.


The assignee cannot in any case include in the Petroleum Costs





the cost thereby incurred, corresponding to this profit and paid


to the assignor.





42.4


Each company forming the Contractor may assign freely and at any


time all or part of its interests deriving from the Contract, to


one or more Affiliates or to other companies forming the


Contractor. However, the assignor is required to inform the


Administration in writing. These assignments must not in any case


be such as to harm the State's interests, hinder performance of


the Petroleum Operations or reduce the technical and financial


capabilities of the Contractor. If the Administration deems such


to be the case, it may oppose the assignment. Furthermore, the


commitment stated in Article 46.2 involves automatically the


assignee Affiliated Company.


The provisions of Article 42.3 are applicable to the assignments





made within the framework of this Article.


42.5


Any assignments made in violation of the provisions of Articles


42.1 through 42.4 are null and void.



































87





344


 ARTICLE 43





APRLXCASTOV OF THE CONTRACT


43.1


Subject to the provisions of Article 43.4, the State guarantees


to the Contractor for the duration of the Contract the stability


of the financial and economic conditions, such as these


conditions result from the Contract and from the regulations in


force on the Effective Date.


The obligations resulting from the Contract shall not be


aggravated and the general and overall equilibrium of this


Contract shall not be affected in an important and lasting manner


for the entire period of validity hereof. However, adjustments


and modifications may be agreed upon by mutual consent.


43.2


The Parties agree to cooperate in all possible ways in order to


achieve the objectives of the Contract. The Administration will


facilitate the performance of the Contractor's activities by


granting it any necessary permit, license and access right and


making available to it all the appropriate existing facilities


and services, so that the Parties can obtain the best possible


profit from sincere cooperation. However, the Contractor shall


comply with the customary procedures and formalities and directly


contact the competent Administration departments to obtain the


approvals and authorizations necessary. It must inform the


Departments in charge of Hydrocarbons of the formalities,


contacts and correspondence it has and maintains with other


administrative departments.


43.3


Total or partial nationalization or expropriation of the


Contractor's rights entail just and equitable compensation in


accordance with internationally accepted rules and principles.


43.4


The terms and conditions of the Contract shall be modified only


in written form and through mutual agreement.






































88


 ARTICLE 44





PENALTIES AND TERMINATION


44.1


violation by the Contractor of the provisions of the Contract may


entail termination of the Contract by the Administration if,


after notification with acknowledgment of receipt to the


Contractor, pursuant to the provisions of Article 48.10., second


paragraph to correct said violation and, if applicable, the


consequences thereof, the Contractor has not given any follow-up


to the Administration's request. Termination is pronounced by


Decree.


44.2


Independently of the penalties set forth in the regulations, the


following violations of the Contract will lead to termination of


this Contract by decree, after formal notice remaining without


action fifteen days after its receipt. Contractor will be


required to provide some explanations:


- a) refusal to provide to the Administration within the


prescribed periods the information specified in Articles 5,


8.7, 11, 20.1, 21.1, 21.5, 26.5, 26.9, 33, 40 and 48.


- b) refusal to pay the bonuses and royalties within the


required periods of time in the terms and conditions defined


by Articles 26.1 b, 26.1 c and 28, as well as the sums


stipulated in Article 39.1.


- c) refusal to pay within the required periods of time the


proceeds from sale by the Contractor of the State's share of


Hydrocarbons, when the Contractor handles said sale,


pursuant to the provisions of Articles 25.2.


- d) refusal to deliver to the State its share of production


in kind, pursuant to Article 25.2 or of the mining royalty


pursuant to the provisions of Article 26.1, b;


- e) suspension or serious restriction, without legitimate


reason and in a manner prejudicial to the general interest,


of the exploitation activity of the Fields discovered in the


Delimited Area.


For the application of this paragraph and preceding provisions,


modification related to economic factors, such as variations in


the international Hydrocarbons market cannot be invoked as


constituting a legitimate reason.














89


44.3


The Administration's decision to terminate the Contract, under


the provisions of Articles 44.1 and 44.2, is communicated to the


Contractor in writing with return receipt; the latter


automatically forfeits all its interests deriving from the


Contract and its right to recover its Petroleum Costs.





44.4


Termination of the Contract does not release the Contractor from


its contractual obligations arisen prior to termination of the


Contract which may not yet have been met on the date of said


termination.


























































































































90


347


 ARTICLE 45





operatioob am BEHALF of the state


45.1





If, during the exploration periods defined in Article 3, the


State wishes to survey and test deeper geological horizons than


those proposed by the Contractor or indicated in Article 4 for a


given well, it will have the right to ask the Contractor to


continue drilling said well until the objectives set by the State


have been reached, at its exclusive expense and risk. To do so,


the Administration will address a written request to the


Contractor insofar as possible prior to the start of said well


or, if this is impossible, during the drilling, but in no case


after the Contractor has started completion or abandonment


operations on the well.


The above-mentioned request will establish the period of time





beyond which the Contractor is considered as having refused.


The State can also contract, at its own risk, a third company to


deepen a well under conditions that it is free to establish and


for the account of the State.





45.2


The Contractor may decide, before the start of the well-deepening


operations, to take charge financially of said deepening


operations, in which case the corresponding expenses are included


in the Petroleum Costs and any Hydrocarbon discovery resulting


from these well deepening operations will be considered made


within the framework of fulfillment of the Contract.


45.3


If the deepening of a well at the exclusive esq>ense and risk of


the State leads to a discovery of Hydrocarbons, the State alone


will have the right to develop and exploit the discovery and


dispose of all the Hydrocarbons produced.















































91


348


 ARTICLE 46





JOINT LIABILITY AND OUABANTBSS





46.1


The clauses of the Contract are binding for the Parties and their


respective successors and assigns. They constitute the only


agreement between them, no prior verbal or written promise or


agreement between the Parties pertaining to the purpose of the


Contract can be invoked in order to modify them or to give them a


different interpretation.


The State guarantees that no other agreement exists concerning





the Petroleum Operations in the Delimited Area.


46.2


Each of the entities comprising the Contractor will have the


option to perform the Petroleum Operations through a subsidiary


or a branch registered in Gabon and created to this effect. If


the signatory of the Contract is a subsidiary thus created, the


parent company of the signatory will give to the Administration,


prior to signature, a commitment, in accordance with the sample


enclosed with the Contract, guaranteeing proper performance by


said subsidiary of the obligations under the Contract.


In case of assignment, the commitments thus assumed by the


signatories' parent companies will be replaced, regarding the


rights assigned, by identical rights of the assignees’ parent


companies whose good financial and technical reputation is well


established; failing this, the assignment is considered null and


void.






























































92








349


 ARTICLE 4?








FORCS KAJBORB


47.1





No delay or failure by one Party to fulfill or comply with any of


the clauses, or obligations of this Contract will be considered


as a breach of said Contract if said delay, or failure, is due to


a case of Force Majeure. The duration of the resulting delay and


such period as is necessary to repair any damage caused during or


by said delay will be added to the duration set by Contract, if


applicable.


47.2





Force Majeure means any unforeseeable, unsurmountable and


irresistible event, not due to error or negligence by the


Parties, but to circumstances independent of their will.














































































































93


350


 ARTICLE 48





AUDITS, VERIFICATIONS AMD CONTROLS


48.1





The Administration has the authority to exercise overall


verification of all the Petroleum Operations; to this effect, it


has right to communication of anything which is directly or


indirectly connected with said Petroleum Operations.





The Administration's representatives may inspect, check and


verify all the phases of the Petroleum Operations and,


specifically, they may be present during the well tests. To this


effect, the Contractor is required to furnish all the necessary


assistance to the persons designated by the Administration and to


facilitate their tasks.





After the inspections, checks and controls of the Petroleum


Operations, the Administration may require that the Contractor


perform any operation which the Administration may deem necessary


in order to ensure safety and hygiene at the work sites, in the


interest of both Parties.


The State, in its capacity as Contracting Party, and the entities





forming the Contractor included under the provisions of Article


19, may undertake, at their cost, through experts of their choice


or their own employees, all the accounting, financial or


technical examinations, verifications and audits which they may


deem necessary or useful for their information on the management


and development of the Contractor's activities, on the technical


methods thereby employed and on the Petroleum Costs, as well as


in the exercise of their right to examine, check and audit these


activities and the corresponding Petroleum Costs.


Within the framework of the above-mentioned examination,


verifications and audits, the Contractor may be asked, in


accordance with the procedure set forth in Article 48.10, to make


any adjustments, corrections, amendments or modifications which


are deemed necessary, useful or justified.


48.3





The above-mentioned examinations, verifications and audits must


take place within a period of two years after the end of the


exploration periods specified in Article 3, or, in the


development and production phase, for a given Calendar Year,


within the same two-year period after the end of said Calendar


Year.

















94


351


The Contractor is notified by the Administration of the


conclusions and results of the examinations, verifications and


audits thereby conducted.


48.4





A certified copy of the reports and conclusions following these


examinations, verifications and audits must obligatorily be


delivered to the Administration when these are conducted by the


companies forming the Contractor. The Operator or the companies


forming the Contractor are required to inform the Administration


of the follow-ups given to the conclusions and recommendations of


the reports prepared after the examinations, verifications and


audits conducted.


48.5





Without any examinations, verifications and audits within the


periods specified in Article 48.3, first paragraph, no adjustment


may be made later.


48.6





Notwithstanding the above provisions, the Administration may


also, within the normal context of its right to verification and


repetition, such as set forth by the applicable regulations,


conduct at any time examinations, verifications and audits


through experts of its choice or its own employees.


48.7





For application of the provisions of this Article, the Contractor


shall deliver to the Administration, not later than April 30 of


each year, a detailed report on its activities of the preceding


Calendar Year. This report shall include specifically, in


addition to data of a technical nature, a detailed account of the


Petroleum Costs pertaining to that Calendar Year, presented in


accordance with the Accounting Agreement. The Contractor' files,


as well as the pertinent and necessary records, accounting and


technical documents and vouchers shall be available to the


interested Parties in compliance with the above provisions, and


presented at their request or requisition.


48.8





The expenses incurred by the Administration in connection with


examinations, verifications and audits conducted in application


of the provisions of the above Articles are borne by or, if


applicable, reimbursed by the Contractor and included by the


latter in the Petroleum Costs.


























95





352


48.9


Subject to the prescription periods of time set forth by the


applicable regulations and by the Contract, and notwithstanding


the provisions of Article 48.2, the Administration may request in


writing all information, justifications and clarifications, as


well as any documents, reports, studies and accounting,


financial, legal and technical records which it may dean


necessary or useful for its information on the management and


development of the Contractor's activities and on the Petroleum


Costs, as well as for the exercise of its right to examine, check


and audit these activities and the Petroleum Costs.


48.10


If the Administration considers, on the basis of the data and


information available thereto or thereby secured either from the


Contractor itself or from Third Parties, that the reports, files,


documents and accounting records contain errors, inaccuracies,


gaps or missing elements or that the Contractor has made a


mistake or committed an irregularity in the fulfillment of its


obligations and if it considers that corrections, adjustments,


amendments or modifications should be made, the Administration


shall notify the Contractor in writing to this effect within the


time frame required by law.





The Contractor has then thirty days counted from the date of


receipt of the above-mentioned notification, to make the


corrections, adjustments, amendments or modifications requested


or to present its comments, either in writing or by requesting a


meeting to this effect with the Administration. If necessary, the


Contractor may obtain, at its request, an additional period for


making the corrections, adjustments, amendments or modifications


requested by the Administration.





The Administration shall notify the Contractor in writing of its


position on the corrections, adjustments, amendments or


modifications requested and on the explanations and


justifications furnished.


If, after completion of the above procedure, a disagreement still





exists between the Administration and the Contractor, the dispute


is settled by arbitration in accordance with the provisions of


Article 49.





Nevertheless, for differences of a technical nature and prior to


the arbitration procedure, the Parties may resort to the opinion


of an expert selected through joint agreement. The above-


mentioned periods are then extended accordingly.

















96





353


48.11


The notifications and other communications specified in the


Contract are considered as given by a Party when they are


delivered into the hands of a qualified representative of the


other Party, at its domicile elected in Gabon, sent by telegram,


cable, telex or other means of telecommunication, all expenses


paid, or placed in an envelope and entrusted, as registered mail


with the proper postage, to the Postal Administration of Gabon.


The notifications and other communications shall be considered as


made on the date of receipt by the addressee.



































































































































97








354


 ARTICLE 49





ARBITRATION





49.1


If. after completion of the procedure set forth in Article 48.10,


any disputes still exist between the Parties in connection with


the application of the clauses of the Contract or regarding the


obligations resulting therefrom shall be resolved through


arbitration and, subject to the provisions hereinbelow, pursuant


to the Conciliation and Arbitration Regulations of the


International Chamber of Commerce.


The arbitration procedure is instituted by request addressed by





the applicant Party to the Secretary of the Arbitration Court


within sixty days following expiration of the thirty day period


defined in Article 48.10, 4th paragraph, plus, if applicable, the


additional period defined in the same fourth paragraph of said


Article. The starting point of proceedings is the date of receipt


of the aforesaid request by the Secretary of the Arbitration


Court.


Each Party designates its arbitrator and notifies the other Party


and the Arbitration Court of that designation within thirty days


after the start of the arbitration proceedings as defined above,


if, at the end of this period, the applicant Party has not


designated its arbitrator, it is deemed to have renounced its


request. If the defending Party has not designated its arbitrator


by the end of the same period, the other Party may directly


inform the Arbitration Court of the International Chamber of


Commerce and request that it make the said designation within the


shortest possible time.


The arbitrators shall not be of the same nationality as that of


any of the Parties.





Within forty-five days after the date of designation of the last


of them, the arbitrators thus designated select a third


arbitrator, who becomes the President of the Arbitration Court.


Failing agreement, the Arbitration Court of the International


Chamber of Commerce is requested by the more diligent Party to


make said designation within the shortest possible time.





The arbitrators are free to choose the procedure they intend to


apply.


The decision of the arbitrators is final; it is binding on the





Parties and is immediately enforceable.














98





3*6


49.2


The place of arbitration will be Paris, France. The arbitration


language will be French, the applicable law will be the law of


Gabon, and the clauses of the Contract are interpreted by


reference to Gabonese law.


49.3





Each party bears the expenses and the fees of its own arbitrator.


The expenses and the fees of the third arbitrator as well as the


other expenses related to the arbitration will be borne equally


by the Parties.


49.4





The arbitration procedure does not cause the execution of the


Parties' contractual obligations to be suspended during the


progress of the arbitration.











































































































99





3*>G


 ARTICLE 50





EFFECTIVE DATE





The Contract will be approved by Decree. The Effective Date will


be the date of signature of the Contract. In witness whereof, the


Parties have signed the Contract in ten duplicate originals.


Libreville, July 7, 1995














For the Republic of Gabon, For the Contractor


The Minister of Mines, Energy


and Petroleum,

















PAUL TOUNGUI Charles W. Alcorn, Jr.























The Minister of Finance, Economy,


Budget and Joint Ventures,

















MARCEL DOUPAMBY MATOKA
































100





3S7


 ANNEXE N° 1








ZONE DELIMITEE





La Zone Delimits d’ETAME dont les iimites sont definies comme suit, les


coordomees etant donnees dans le systeme de projection UTM, base sur


feltipsdide de Clarke 1880, fuseau 32. ayant pour origine le point


M'PORALOKO, avec:





X = 500*000 metres sir le meridien central 9° 00* 00" EST;





Y s 10*000000 metres sur l’6quateur





X Y X Y





A 659,500 9,600,500 w 683,000 9,598,000


B 659,500 9,590,500 X 684,000 9,598,000


C 645,500 9,590,500 Y 684,000 9,597,000


D 645,500 9,546,189 Z 691,000 9,597,000


E 676,500 9,519,916 Z1 691,000 9,596,000


F 676,500 9,550,000 Z2 693,000 9,596,000


G 681,500 9,550,000 Z3 693,000 9,594,000


H 681,500 9,558,500 Z4 694,000 9,594,000


1 688,000 9,558,500 Z5 694,000 9,593,000


J 688,000 9,580,000 26 695,000 9,593,000


K 723,600 9,580,000 Z7 695,000 9,592,000


L 690,600 9,614,000 Z8 696,000 9,592,000


M 676,535 9,614,000 Z9 696,000 9,591,000


N 672,000 9,609,429 Z10 697,000 9,591,000


0 672,000 9,608,000 Z11 697,000 9,590,000


P 673,000 9,608,000 Z12 696,000 9,590,000


Q 673,000 9,602,000 Z13 698,000 9,586,000


R 681,000 9,602,000 Z14 688,000 9,586,000


$ 681,000 9,601,000 Z15 688,000 9,583,800


T 682,000 9,601,000 Z16 683,000 9,588,000


U 682,000 9,600,000 Z17 665,091 9,602,240


V 683,000 9,600,000 Z18 661,498 9,598,502








La superficie de la Zone Delimitee est done rSputee 6gale a 3,073.598 km2.











3S8





104


105


 CONTRAT D' EXPLORATION








ET DE











PARTAGE DE PRODUCTION














ENTRE





LA REPUBLIQUE GABONAISE


ET





VAALCO GABON {ETAME), INC.











PERMIS MARIN D’ ETAME


No. G4-160























360


 SOMMAIRE





ARTICLES


Definitions





1 Champ cfapplication du Contrat et dispositions g^nerales


2 Comite Technique Consultatif


3 Periodes cf exploration


4 Engagements de travaux pendant les periodes cfexploration


5 Etablissement et approbation des Programmes Annuels de Travaux et


des Budgets correspondants


6 Renonciation aux droits


7 I nsuffisance de travaux cfexploration


8 Obligations duContracteurdurant les periodes cfexploration


9 Droits afferents aux periodes cfexploration


10 Propri6t$ des biens


11 Rapports cfactivites pendant les periodes cfexploration





12 Ressources natureJIes


13 Utilisation des terrains


14 Utilisation des installations


15 Expiration du Contrat a la fin des periodes cfexploration


16 Decouverte et obligation cf exploiter











2 361


17 Demands d’Autorisation Exclusive d'Exploitation et delimitation des


18 Zones d'Exploitation


Durde de validity de I'Autorisation Exclusive d'Exploitation


19 Participation de I'Etat


20 Programme de developpement


21 Obligations du Contracted durant les periodes de developpement et


22 Sexploitation


Droits du Contracteur attaches aux Autorisations Exclusives cfExploitation





23 Obligation de commercialiser ia production


24 Recuperation des Couts Petroliers


25 Partage de la production


26 Regime fiscal


27 Valorisation des Hydrocarbures


28 Bonus


29 Mesurage et comptage des Hycfrocarbures


30 Gaz Nature!


31 Cantrole des changes


32 Exemption de fobligation relative aux Bons SEquipement et aux


33 Certificats d'lnvestissements


Methode de comptabilite et Unite monetaire utilisee pour la tenue des


34 comptes


Regime douanier et documents cfimportation et tfexportation


35 Contribution a la satisfaction des besoins du march6 interieur














3 3


36 Exportation, transfert de propriety et regies de mise £ disposition des


Hydrocarbures


37 Protection des droits


38 Personnel


39 Formation de Gabonais autres que ceux employes par le Contracted


40 Rapports d'activites en periodes de developpement et d'exploitation


41 Paiements





42 Cession d'interets


43 Application du Contrat


44 Sanctions et Decheance


45 Operations pour le compte de I'Etat


46 Solidarity et Garanties


47 Force majeure


48 Examens, Verifications et Controles





49 Arbitrage


50 Entree en vigueur





Annexe 1 : Zone D6iimitee


Annexe 2: Accord Comptable


Annexe 3: Engagement prevu a I'Article 46























4 363


 CONTRAT D'EXPLORATION





ET DE


PARTAGE DE PRODUCTION





ENTRE








L'Etat Gabonais, represente par Paul TOUNGUI, Ministre des Mines, de


FEnergie et du Petrole,


Dune part,





ET


1. La societe Vaalco Gabon (Etame), Inc. socittt constitute selon les lois en





vigueur dans retat de Delaware, Etats-Unis

Houston, Texas, 77027, Etats-Unis cfAmerique, 4600 Post Oak Place, Suite 309,


representee par Charles W. Alcorn, Jr., dunerrt mandate a cet effet;


La societe Vaalco Gabon (Etame), Inc., est une filial© garantie par sa societe





mere Vaalco Energy, Inc., societe dont I'actif net s'elevait a 13'681'000 dollars


des Etats-Unis cfAmerique, au 31 decembre 1994, constitute selon les lois en


vigueur dans I’Etat de Delaware, Etats-Unis cfAmerique, ayant son siege social


& Houston, Texas, Etats-Unis d'Amtrique, signataire de Fengagement prtvu &


I'Article 46 du Contrat et objet de I'Annexe 3.


2. La socittt Vaalco Energy (Gabon), Inc., societe constitute selon les lois en


vigueur dans I'etat de Delaware, Etats-Unis d'Amtrique, ayant son siege social &


Houston, Texas, 77027, Etats-Unis cfAmerique, 4600 Post Oak Place, Suite 309,


reprtsentte par Charles W. Alcorn, Jr., dument mandate a cet effet;


La socittt Vaalco Energy (Gabon), Inc., est une filiale garantie par sa societe


mere Vaalco Energy, Inc., societe dont I'actif net s'tlevait a 13'681'000 dollars


des Etats-Unis d'Amtrique, au 31 decembre 1994, constitute selon les lois en


vigueur dans I’Etat de Delaware, Etats-Unis d'Amtrique, ayant son sitge social


a Houston, Texas, Etats-Unis d'Amtrique, signataire de ('engagement prevu a


I'Article 46 du Contrat et objet de ('Annexe 3.


D’autre part,


Les deux sodetes d-dessus constituent le Contracteur; I’Etat Gabonais et le





Contracteur sont egalement destgnes d-apres collectivement "les Parties', et


individueilement 'la Partie'.











5 3 G4


Considerant





- que I'Etat est proprietaire des ressources naturelles du sol et du sous-sol


de son territoire, des zones marines relevant de sa souverainete ou faisant


partie de sa zone economique,


- que la d^couverte de ressources nationaies en Hydrocarbures et


leur mise en valeur contribuent, pour une part importante, a la mise en oeuvre de


la politique de developpement economique et social du pays et a la promotion


du bien-etre de ses habitants,


- qu'a cet eflfet, la recherche et rexploitation des richesses


nationaies sont considerees com me des activites (futility publique,


- que, conformement a la loi n° 15/62 du 2 juin 1962 portant


institution cfun Code Minier en Republique Gabonaise, telle que modifiee par les


textes subsequents, au decret n° 981/PR du 16 octobre 1970 fixant les


conditions rfapplication du Code Minier et a la loi n° 14/82 du 24 janvier 1983


portant reglementation des activites de recherche et cfexploitation des


Hydrocarbures, I'Etat entend entreprendre des operations de recherche,


Sexploitation, de transport, de stockage et de commercialisation des


Hydrocartxjres,





- qu'il est de I'interet de I'Etat que les operations d-dessus soient


effectu6es dans le strict respect des methodes ad6quates et de la celerite


compatible avec les pratiques pr^valant dans I'industrie des Hydrocarbures, et


de maniere S atteindre les objectifs d-dessus,


- que le Contracteur dispose de capitaux suffisants, de la


competence technique et commerciale, du personnel, de la capadte


d’organisation necessaires pour mener a bien les operations specifiees d-aprds,


et qu'il desire cooperer avec I'Etat en partidpant au developpement de I'industrie


des Hydrocarbures pour favoriser ainsi ('expansion economique du pays et la


promotion sociale de ses habitants;









































6


Et etant precise que, pour I'interpretation du Contra!, sont admises les definitions


suivantes:


- Armee Civile signifie une periode de douze mois consecutifs


commengant le premier janvier et se terminant le trente-et-un decembre suivant,


selon le calendrier gregorien;


- Annee Contractuelle signifie une periode de douze mois consecutifs


commengant a la Date Effective ou ie jour armiversaire de celfe-ci;


- Autorisation Exclusive d'Exploration signifie Tacte administrate par


lequel I'Etat autorise le Contracteur & entreprendre, dans la Zone Delimiter a


titre exclusif, tous travaux et etudes de prospection, cfexploration et de


recherche ayant pour but la decouverte d'Hydrocarbures;


- Autorisation Exclusive d'Exploltation signifie Tacte administrate par


lequel I'Etat autorise le Contracteur & entreprendre, £ titre exdusif, tous travaux


de deveioppement, d'exploitation et de production de Gisements a finterieur


d'une Zone d'Exploitation;


- Baril signifie US Barrel, soit 42 gallons americains a la temperature de


60° F.





- Budget signifie festimation des depenses, poste par poste, relatives


aux Operations Petrolieres figurant dans les Programmes Annuels de Travaux;





- Condensat signifie les Hydrocarbures liquides obtenus par detente de


Gaz Nature!;


- Contrat signifie le present acte et ses Annexes qui en font partie


integrante, ainsi que tout renouvellement, extension, substitution ou modification


au Contrat que les Parties dedderaient;


- Contracteur signifie la ou les parties cocontractantes de f Etat, ainsi que


tous organismes, etablissements, personnes morales de droit public ou prive,


entreprises, auxquels un interet pourrait §tre cede par la suite en application des


dispositions des Articles 19 ou 42;


- Couts Petroliers signifie toutes les depenses effectivement supportees


et payees par le Contracteur pour la realisation des Operations Petrolieres,


determinees conformement au Contrat et a ('Accord Comptable objet de


I'Annexe 2, pour lesquelles lui est reconnu un droit a recuperation de leurs


montants;














7 3 €6


- Date Effective signifie la date d1 entree en vigueur du Contrat prevue a


TArticle 50;


- Etat signifie I’Etat Gabonais, proprietaire des ressources naturelles du


soi et du sous-sol de son territoire, des zones marines relevant de sa


souverainete ou faisant partie de sa zone economique; il est seul titulaire des


titres miniers. Suivant le cas, il exerce les prerogatives de Puissance Publtque


ctecoulant des attributs attaches & la souverainete, ou agit en a qualite


cfEtat-entrepreneur, dans le cadre dissociations avec des entreprises ou de


prise de participation, ou en qualite cfactionnaire, par rintemtediaire soit des


Administrations et des agents des services publics, soit cfentreprises controlees


par lui. L'Etat est indifferemment designe par Mle Ministere charge des


Hydrocarbures", TAcfcninistration" ou les Services charges des Hydrocarbures"


ou, dune maniere generate, ’TAdministration";


- Forage cTExploration signifie tout forage destirte a mettre en evidence





un Gisement ou a en determiner I’etendue et ^importance;


• Forage de D6vek>ppement signifie tout forage destirte a produire les


Hydrocarbures du Gisement;


- Franc C.FA signifie la mormaie definie au titre II de la Convention de


Cooperation Mortetaire entre les Etats Membres de la Banque des Etats de


I'Afrique Central© (B.E.A.C.) et la R6publique Frangaise, sigrtee a Brazzaville le


23 novembre 1972;


- Gaz Naturel signifie methane, ethane, propane, butane et, plus


generalement, tous les Hydrocarbures gazeux, humides ou secs, associes ou


non a des Hydrocarbures liquides;


- Gisement signifie accumulation d'Hydrocarbures dans le sous-sol;





- Hydrocarbures signifie Petrole Brut, Condensat et Gaz Naturel;


- Op6rateur signifie la societe dument mandates par le Contracteur pour


la conduite et la realisation des Operations P6trolieres au nom, pour le compte


et sous la responsabiiite de ce dernier;


- Operations Petrolieres signifie toutes les operations de prospection,





d'exploration, de developpement, de production, de transport, de stockage des


Hydrocarbures et, plus generalement, toutes autres operations directement iiees


aux precedentes, realisees dans le cadre du Contrat, & I'exception des


operations de raffinage et de commercialisation;














8 3f*7


- Pttrole Brut signifie huile minerale brute, condensat, asphalte,


ozocerite et toutes sortes d'Hydrocarbures et bitumes, solides ou liquides dans


leur etat naturel, ou obtenus du Gaz Natural par condensation ou extraction;


- Production Totale Disponible signifie la production totale


d'Hydrocarbures provenant de I'exploitation de tous les Gisements situes a


Cintdrieur de la Zone Delimitee, decomptee sur ladite zone apres degazage,


deshydratation, stabilisation, decantation, dessalage et degazolinage (pour le


Gaz Natural), au moment ou elle est envoyee vers les canalisations cfevacuation


ou, & defaut, vers les installations de stockage et diminuee:


. des Hydrocarbures rainjectes dais le Gisement ou utilises


pour les besoins des Operations Petrolieres, dans les conditions


prevues a I'Artide 26.1,b du Contrat;


. des Hydrocarbures brules ou detruits, sous reserve que le


Contracteur ait respecte la reglementation en vigueur et les


directives et recommandations de I'Administration en la matiere;


• Production Nette signifie la Production Totale Disponible


d'Hydrocarbures, diminuee de la redevance miniere proportionnelle;


- Production Restante signifie la Production Nette diminuee des


pr&levements d'Hydrocarbures operas par le Contracteur au titre de la


recuperation des Couts Petroliers;


- Programme Annuel de Travaux signifie ['ensemble des Operations


Petrolieres que le Contracteur s'engage e realiser au cours d’une Annee Civile


dans la Zone Delimitee ou dans une Zone d'Exploitation et figurant sur un


document decrivant, post© par poste, ces Operations Petrolieres;


- Societe Affiliee signifie une societe ou toute autre entreprise:


. qui contrdle une ou plusieurs entreprises constituant le





Contracteur,


. ou qui est contrdiee par une ou plusieurs entreprises constituant


le Contracteur,


. ou qui est contrdiee par une entreprise qui controle elle-meme le


Contracteur,


Ce contrdle signifie la propri6t6, directs ou indirecte, de plus de cinquante pour


cent du capital de la socidtd contrdlde, conferant a I'entreprise detenant le


controle la majorite absolue des droits de vote;











9 3**8


- Socidtt non AfFiltfe ou Tiers sign/fie une societe ou toute autre


entreprise, autre que les Parties, n'entrant pas dans la definition precedente;


- Sous-Enldvement signifie la situation ou I'une des Parties, a un


moment dome, n'a pas encore pris et dispose de la totalite de la part


tfHydrocarbures a laquelle elte a droit en application des dispositions du


Contrat;


- Sur-Enfavement signifie la situation ou Tune des Parties, a un moment


donne, a deja pris et dispose (June quantile cfHydrocarbures supgrieure a celle


a laquelle elle a droit en application des dispositions du Contrat;


- Zone D6Hmitee signifie la surface a I’interieur du perimetre d6crit a


rAnnexe n°1;


- Zone d'Exploitation signifie la surface situee a I'interieur de la Zone


D61imit6e sur laquelle I’Etat accorde au Contracteur, conformement d la


reglementation en vigueur et au Contrat, une Autorisation Exclusive


^Exploitation;


Ced expose, il est convenu et arrete ce qui suit:






























































10


 ARTICLE 1








DISPOSITIONS GENERALES








1.1


Le Contrat constilue un accord en vue de I'exploration et du partage de la


production des Hydrocarbures dont les clauses sont regies par les lois et


reglements en vigueur au Gabon.





1.2


Le Contrat d6finit les droits et obligations des Parties, regit leurs Nations


mutuelles et fixe les regies et modalites rfexploration, cfexploitation et de


partage de la production entre elles. II s'applique aux Operations Petrolieres que


doit realiser le Contracteur dans la Zone Delimitee et la Zone cf Exploitation,


etant entendu que les substances et produ'rts autres que les Hydrocartxres sont


places hors de son champ cf application.


1.3





Le Contracteur est tenu, pour tous les travaux necessaires executes dans le


cadre de la realisation des Operations Petrolieres, de se conformer aux regies


de I’art generalement acfrnises dans I'industrie des Hydrocartxres.


1.4


Le Contracteur est tenu de foumir tous les moyens financiers et techniques


necessaires e la bonne realisation des Operations Petrolieres. II a la faculty de


recourir, sous reserve d'obtenir I'agrement ecrit de ['Administration, aux capitaux


de Tiers et de Societes Affiliees pour le financement des investissements


correspondents, II doit etre statue sur la demande d’agrement vise ci-dessus


dans les trente jours a compter de sa date de reception. Le refus eventuel


d’agrement doit etre dument motive. Lorsqu’il s’agit d’emprunts contracts


aupres des Societes Affiliees, I’agrement n'est pas requis.


Le Contracteur est tenu de transmettre aux Services charges des Hydrocarbures





une copie certifiee conforme des conventions et contrats de prets qu'il a conclus


et qui doivent etre passes sous la condition suspensive de I'obtention de


I'agrement susvise.


Cependant, les int6rets, agios, charges financieres de toute nature, ainsi que les





pertes de change eventuelles, lies £ ce financement, quel qu'en soit I'origine et


les modalites, ne sont deductibles, pour les besoins de I'Article 26.4, ni


imputables aux CoGts Petroliers donnant lieu £ recuperation en application des


Articles 24 et 26.10, que les cas et suivant les modalites et restrictions prevus


auxdits Articles et dans rAccord Comptable.











11 370


1.5


Le Contracteur supporters seul le risque financier attache a la realisation des


Operations Petrolieres, sous reserve des dispositions de I'Article 19.


1.6





Pendant la duree du Contrat, la totalite de la production resultant des Operations


Petrolieres sera partag£e entre les Parties suivant les modalit6s et les principes


definis aux Articles 24,25 et 26.


1.7


La Zone DSlimitee est ceile qui est definie dans I'Annexe 1.





1.8


Le Contracteur, dans le mois suivant la Date Effective, notifie a I'Administration


I'entreprise designee en quality d’Operateur charge de la realisation des


Operations Petrolieres.





L'0p6rateur, au nom, pour le compte et sous la responsabilite du Contracteur,


communiquera k I'Administration tous rapports, informations et renseignements


pr6vus par la r6glementation en vigueur et par le Contrat, ainsi que tous contrats


ou conventions liant les entreprises constituant le Contracteur. L'Operateur agrt


en tant que mandataire de celles-ci pour la realisation des Operations


Petrolieres. Le Contracteur peut, k tout moment, designer un autre Operateur,


sous reserve qu'il ait obtenu ('approbation prealable de (Administration.


1.9





Dans le cadre de la mise en oeuvre des modalites d1 execution du Contrat, le


responsable des Services charges des Hydrocartxires intervient au nom de


I'Etat; il prend toutes decisions, donne tout consentement ou autorisation


necessaires ou utiles a la realisation des Operations Petrolieres.


1.10


Pendant la duree du Contrat, I'Etat peut, a tout moment, et notammerit lore (June


prise de participation dans le cadre de rArticle 19, mandater une entreprise ou


un organisme de son choix pour la gestion des droits et obligations resultant de


cette participation.






































12 371


 ARTICLE 2





COMfTE TECHNIQUE CONSULTAVF


2-1





Darts le mois suivant la Date Effective, un Comite Technique Consultatif est


constitue. || est compose, en nombre egal, de representants de fEtat et du


Contracted. Les premiers sont designes parmi les responsables de


CAdministration, en particular parmi ceux des Services charges des


Hydrocartxres, et des administrations domaniales, fiscales ou douanieres. Le


president du Comite Technique Consultatif est obligatoirement un representant


des Services charges des Hydrocarbures.


2.2


Le Comite Technique Consultatif est un organe charge cfemettre des avis,


suggestions et reoommandations sun


- les travaux d'explcration, les travaux de d£vetoppement et de production


des Gisements decouverts, et les depenses conrespondantes;





- ('application des regies de conservation des Gisements edictees par


('Administration ou, a defaut, inspirees des pratiques g6neralement actnises


dans I'industrie des Hydrocarbires;





- les mesures de prevention de la pollution et les regies de securite et


d’hygiene sur les lieux de travail;


- le choix entre I’achat ou la location par le Contracted des gros


equipements et des installations importantes en application des dispositions de


rArtide 10.2;


- les programmes de travaux et les budgets prevus aux Articles 5.1 et


20.1, avant leur presentation a rAdministration pour apfxobation;


- les conditions cfemploi du personnel, en application des dispositions de


fArtide 38;


- les mesures a prendre par le Contracteur pour la formation de Gabonais





en application des dispositions de (‘Article 39, et la mise en oeuvre de ces


dispositions;


Le Comite Technique Consultatif peut, dans le cadre de ses attributions, confier





des etudes a des sous-comites ad hoc.














13 372





2.3


Les avis, suggestions et recommandations du Comite Technique Consultatif


sont adoptes a la majorite des voix, chaque membre disposant cfune voix et ne


pouvant recevoir qu'une seule delegation de vote.





Le Comite Technique Consultatif delibere valablement si les deux tiers au moms


de ses membres sont presents ou represents, dont le president ou, en cas


d'empechement de celui-d, son representarrt.


2.4


Le Comite Technique Consultatif se reunit au moins deux fois par an en periode


d'exploration et au moins quatre fins par an en cas de decouverte et en p£riode


de developpement et Sexploitation. Les reunions se tierment a I'initiative du


Contracteur ou de I'Administration, sur convocation du president du Comity


Technique Consultatif adressee au moins quinze jours avant la date de la


reunion. En cas d'urgence, les membres se r6unissent des que possible ou se


consultent par telex.


Le Contracteur peut demander la convocation du Comite Technique Consultatif


en reunion extraordinaire lorsqull desire kii soumettre des questions


particulieres.


L'ordre du jour est propose par la Partie ayant demande la reunion; les





documents necessaires relatifs aux points de l'ordre du jour sont prepares par le


Contracteur ou, le cas echeant, par PAdministration. Le Contracteur assure le


secretariat du Comite Technique Consultatif.





2.5


Les frais occasionnes par Tactivite du Comite Technique Consultatif, airtsi que


ceux supportes par rAdministration dans ce cadre, sont £ la charge du


Contracteur et consideres comme des Courts Petroliers















































14 373


 ARTICLE 3





PERIODES ^EXPLORATION








3.1


II est octroye au Contracteur, avec effet a la Date Effective, une Autorisation


Exclusive cfExploration sir la Zone Delimitee, pour une premiere periode de


trois Armees Contractuelles. A la demande du Contracteur presentee au moins


quarante-dnq jours avant P expiration de la periode, celle-d peut 6tre prorogee


de trois mois au maximum pour permettre a celui-d Pachevement d'un un


sondage en coirs.


Cette prorogation est accorctee par decision des Services charges des


Hydrocarbures.





Le Contracteur est cependant tenu de faire de son mieux pour que, dans des


circonstances normales, les operations de sondage puissent §tre achevees


avant la fin normals de la periode.


3.2


Si le Contracteur, durant la premiere periode, prorogee s’il y a lieu en application


de PArticle 3.1, a satisfait a ses obligations resultant du Contrat, notamment aux


engagements de travaux definis a I'Article 4, PAutorisation Exclusive


d'Exploration est, a sa demande, renouveiee pour une seconde periode de trois


Annees Contractuelles.


La seconde periods peut, egalement, etre prorogee de trois mois au maximum


pour les mdmes motifs et dans ies memes conditions que celles indiquees a


PArticle 3.1.


Le Contracteur doit presenter sa demande de renouvellement pour la seconde





periode au moins trente jours avant ('expiration de la premiere. Si le Contracteur


a beneficie de la prorogation prevue & PArticle 3.1, le delai de trente jours


susvise court £ compter de la fin de cette prorogation, afin de lui permettre


d'examiner et cfevaluer les r£sultats du sondage et de juger de I'int£r6t de


presenter une demande de renouvellement. Le renouvellement est accords par


arrete du Ministre charge des Hydrocarbures.





























15 374


3.3


A la fin de la premiere periode, en cas de non renouvellement de I'Autorisation


Exclusive d’Exploration, ou a la fin de la seconde periode, le Contracteur doit


liberer I'ensemble de la Zone Delimitee, a I'exception des Zones d'Exploitation


ou des surfaces pour lesquelles il a presente une demande d'Autorisation


Exclusive d'Exploitation en cours d'instruction.
































































































































16


375


 ARTICLE 4








ENGAGEMENTS DE TRAVAUX PENDANT LES PERtODES


D’EXPLORAVON








4.1


Durant la periode d'exploration ddfinie d I'Article 3.1, !e Contracteur est tenu de


realiser au moins les travaux suivants:


-1’500 kilometres de sismique 2-D et une couverture sismique 3-D;


- Retraitement et reinterpretation des domees sismiques disponibles;


- Etude de faisabilite cfin developpement des gisements de Tchibala


Nord et Sud au cous des premiers six (6) mois;


- un (1) Forage cTExploration.


Pour realiser ce Programme de Travaux dans les conditions techniques les


meilleures g6neralement admises dans I'industrie des Hycfrocarbures, le


Contracteur investira une somme estimee a 7’800’000 dollars des Etats-Unis


d’Am6rique.


Le Contracteur est tenu de commencer les travaux g6ologiques et geophysiques


sur lesquels portent les engagements ci-dessus dans les quatre mois suivant la


Date Effective.


4.2


Durant la seconde periode d'exploration definie d I'Article 3.2, le Contracteur est


tenu de realiser au moins les travaux suivants:


- 2’000 kilometres de sismique 2-D et de la sismique 3-D en cas de


decouverte;


- deux (2) Forages cTExploration;


Pour realiser ce Programme de Travaux dans les conditions techniques les


meilleures gen^ralement admises dans I'industrie des Hydrocarbires, le


Contracteur investira une somme estimee a 14’500’000 dollars des Etats-Unis


d'Amerique.














17


4.3


Les forages prevus ct-dessus seront realises jusqu'a la profondeur cfau moins


deux mille cinq cent (2*500) metres, ou jusqu'a ce que la formation geologique


de Gamba sort reoomue sur au moins dnquarrte metres si elle s’etend au-dela


de la profondeur contractuelle. Si, a 2’500 metres, la formation visee ci-dessus


n'a pas ete rencontree, les Parties. Si, consulteront pour examiner si la poursurte


du forage presente un interet pocr elles.


Le forage est arrete a une profondeur inferieure a cede initialement prevue si,


ayant ete execute selon les regies de Tart gerteralement admises dans Cindustrie


des Hydrocarbures, Parret est justify par Tune des raisons suivantes:


- la formation de Gamba est rencontree a une profondeur


inferieure a la profondeu' contractuelle; dans ce cas, les Parties se consulteront


pour examiner si la poursurte du forage presente un interet pour elles;


- le sode est rencontre a une profondeur inferieure a celle qui etait


prevue;


- la poursurte du forage presente un clanger manifeste en raison de


['existence d'une pression de couche anormale;





- des formations rocheuses sont rencontrees, dont la durete ne permet


pas la poursurte du forage avec des equipements habituels;


- des formations petroliferes sont rencontrees, dont la traversee


necessite, pour leur protection, la pose de tubes ne permettant pas datteindre la


profondeur


contractuelle.


Le forage arrete pour les raisons ci-dessus sera repute avoir ete fore a la


profondeur contractuelle a condition que les raisons invoquees aient ete portees


en temps utile a la cormaissance de fAdministration et oonsicterees par celle-d


comme justifides.


4.4


Le Contracteur est tenu de realiser I’integralite des travaux prevus pour une


periode d'exploration consideree meme si cela doit entrainer pour lui un


depassement de la somme estimee pour cette periode.





En revanche, si le Contracteur a realise, au titre (June periode d'exploration


donnee, son engagement de travaux pour un montant interieur a la somme


estimee pour cette periode, il est consictete comme ayant remplf ses obligations.

















18


377


4.5


Lorsque ['Administration constate que le Contracteur n'a pas rempli son


engagement de travaux au titre d’une periode d'exploration donnee, el!e Ten


avise par ecrit. La procedure prevue par I'Article 48.10 est alors mise en oeuvre


en tant que de besoin.









































































































































19


3f?S


 ARTICLES








ETABUSSEMENT ET APPROBATION DES PROGRAMMES ANNUELS DE


TRAVAUX ET DES BUDGETS CORRESPONDANTS








5.1


Au plus tard deux mois apres la Date Effective, ie Contracteur soumet a


l‘Ad ministration, pour approbation, w Programme Annuel de Travaux et le


Budget correspondent, pour I'ensemble de la Zone Delimitee, specifiant les


Operations Petrolieres se rapportant £ la periode allant de (a Date Effective au


31 cfecembre suivant.


Au plus tard le 30 septembre de chaque Annee Civile, le Contracteur soumet a


rAdministration, pour approbation, un Programme Annuel de Travaux et le


Budget correspondent, pour I'ensemble de la Zone Delimitee, en specifiant les


Operations Petrolieres qu'il se propose de realiser au cours de I'Annge Civile


suivante.


Le Programme Annuel de Travaux et le Budget correspondant doivent etre





examines par le Comite Technique Consuftatif, conformement aux dispositions


de (’Article Z2, avant d'etre soumis a Tapprobation de 1'Administration; les avis,


suggestions et recommandations du Comite Technique Consultatif doivent y Stre


annexes.


5.2





Si l'Administration estime que des modifications aux Operations Petrolieres


prevues au Programme Annuel de Travaux sont necessaires ou utiles, elle doit,


dans le delai de trente jours suivant la reception de ce Programme, en informer


par ecrit (e Contracteur, en indiquant les modifications qu'elle demande,


appuyees de justifications qu'elle juge utiles. L'Administration et le Contracteur


se r6unissent alors aussi rapidement que possible pour examiner les


modifications demandees et faire de leur mieux pour etablir, cTun commun


accord, le Programme Annuel de Travaux et le Budget correspondant dans leur


forme definitive.


En tout etat de cause, les parties du Programme Annuel de Travaux pour





tesquels f Acbninistration n'aura pas demande de modifications sont consider6es


comme approuvees et devront 6tre realisees par le Contracteur dans les delate


initialement prevus.





Si, £ ('expiration du delai de {rente jours prevu ci-dessus, l'Administration n'a pas


adresse de demande de modifications au Contracteur, le Programme Annuel de


travaux et le Budget correspondant sont reputes approuves.











20 379


5.3


Si tes comaissances acquises au fur eta mesure de J'execution des travaux ou


des circonstances particulieres justifient le biervfonde de certains changements


peu importants dans les Operations Petrol ieres prevues au Programme Annuel


de Travaux, le Contracteur peut effectuer, apres avoir recueilli r approbation des





Services charges des Hydrocarbures, les modifications correspondantes, a


condition que les objectifs fondamentaux fixes ne soient pas modifies.





























































































































21 380


 ARTICLE 6





RENONOAVONAUX DROfTS


6.1





Le Con&acteur peut renoncer a ses droits resultant du Contrat sur tout ou partie


de la Zone Delimitee, sous reserve de ('application des dispositions de I'Article 7.


6.2





Durant la premiere periode ^exploration ctefinie £ rArticle 3.1, la renondation ne


peut porter que sur la totaiite de la Zone Delimitee, sous reserve des


dispositions de I'Article 6.5.


6.3


Durant la seconde periode cfexploration definie a I'Article 3.2, la renondation


peut porter sur la totality ou me partie de la Zone Delimitee.





6.4


Le Contracteur doit informer par iettre fAdministration de sa decision de


renoncer a ses droits en indiquant, eventuellement, la partie de la Zone


Delimited sur laquelle porte cette renondation. Celle-d devient effective soixante


jours apres la reception de la Iettre susvisee, & moins que rAdministration ne soit


d'accord pour que cette renondation preme effet a une date plus rapprochee.


Dans les trente jours suivant la prise d'effet de la renunciation, le Contracteur





adresse a I'Administration un rapport d6tailte, accompagne des justificatifs


appropries, sur les travaux qu'il a realises sur la Zone Delimitee, et les ddpenses


correspondantes.


6.5


En cas de renondation, le Contracteur a le droit de conserver les Zones


cfExploitation ou les surfaces pour lesquelfes it a presente une demands en


cours ^instruction.





6.6


En cas de renondation partielie, chaque surface rendue doit etre de superfide


suffisante pour permettre la realisation d'operations petrolieres, et de forme


simple ayant pour limites des paralieies et des nteridiens terrestres.





6.7


Une renondation partielie au cours de la seconde periode d'exploration n'a pas


pour effet de reduire les engagements de travaux du Contracteur definis a


I'Article 4.3; la part des travaux non encore realises a la date a laquelle la


renondation est devenue effective, est reportee sur la partie restante de la Zone


Delimitee.











22 381


 ARTICLE 7








INSUFFISANCE DE TRAVAUX D'EXPLORATION











7.1


En cas de renonciation & la totalite de la Zone Delimitee prevue aux Articles 6.1


ou 6.2, sans que les engagements de travaux, definis a I'Article 4, aient ete





remplis, le Contracteur est tenu de payer & I'Etat, dans les trente jours de la prise


d’effet de la renonciation et sur la base des indications prevues a I'Article 6.4,


une indemnite correspondant au cotit, estime a la date de la prise d'effet de la





renonciation, des travaux qui n'ont pas 6fe realises.


7.2





Dans les trente jours de la date d'expiration de I'une ou I'autre des pdriodes


d'exploration definies a I'Article 3, le Contracteur adresse a I'Administration un


rapport detaille, accompagn6 des justificatifs appropries, sur les travaux qu'il a


realises sur la Zone Delimitee et ies depenses correspondantes.


7.3


Si, a I'expiration de I'une quelconque des p6riodes cfexploration, le Contracteur





n'a pas rempli ses engagements de travaux ddfinis a I'Article 3, il est tenu de


payer a I'Etat, dans les trente jours de la date d'expiration de la p^riode


concemde, une indemnity correspondant au cout, tel qu'il peut etre estime a


cette date, des travaux non realises.


7.4





En cas de retard dans le paiement de rindemnite a verser a I'Etat en application


des Articles 7.1 et 7.3, les sommes dues a ce titre portent interet calcule a


compter de la date limite h laquelle les indemnifes auraient du etre payees, et


jusqu'a leur paiement par le Contracteur, au taux annuel tfescompte de la


Banque des Etats de I'Afrique Centrale (B.EAC) majore de trois points.


7.5





Si les sommes estimees visees aux Articles 7.1 et 7.3 sont inferieures a celles


feetlement dues, la difference, augmentee de Cinteret vis6 a rArticle 7.6, calcute


a la date a laquelle rindemnite aurait du etre versee, est payee a I'Etat dans les


meilleurs delais.





























23 3*2


7.6


Les sommes non payees aux dates prevues sont augmentees d'un interet de


retard calcule au taux annuel d'escompte de la Banque des Etats de I'Afrique


Centrale (B.E.A.C) majore de trois points.












































































































































24 383





 ARTICLE 8








OBLIGATIONS DU CONTRACTEUR DURANT LES PERIODES


DEXPLORATtON








8.1


Le Contracteur fbumit tous les foods rtecessaires au reglement des expenses


relatives a la realisation des Operations Petrofieres definies darts le Programme


Annuel deTravaux.


Le Contracteur realise les Operations Petrolieres en utilisant, sort ses mated els,


equipements et materiaux, soit des materiels, equipements et materiaux acquis a


cet effet ou lou£s, sous reserve des dispositions de [’Article 10.3.





8.2


Le Contracteur est responsable de l'ex6cution des Programmes Armuels de


Travaux. Les travaux sont realises dans les meitleures conditions cfefficacite et


de cout; d'une fagon gen§rale, le Contracteur met en oeuvre tous moyens


appropries en vue de I'execution des Programmes Annuels de Travaux en


prenant en compte les interns 6conomiques des Parties et en utilisant les


techniques les plus conformes aux regies de I'art g^neralement admises dans


/’Industrie des Hydrocarbures.


8.3


Le Contracteur s'engage a prendre toutes les dispositions pratiques pour


a) assurer la protection des nappes aqurferes rencontrees:





- au cours des forages, par me bonne cimentation du cuvelage


dans les puits,





- iors des operations cfabandon des puits non produces, par


Tapplication de bouchons de ament afin disoler les couches a


pression des autres niveaux reservoirs et de la surface;


b) effectuer les essais n£ce$saires a {'appreciation de la valour des


indices dHydrocarbures recueillis en cours de forage, et du caractere


exploitable des Gisements decouverts.























25 384





8.4


En mer, les travaux effectues et les installations erigees par le Contracteur dans


le cadre du Contrat dorvent, selon leur nature et les circonstances, etre realises,


places, indiques, balises, equipes et conserves de fagon a laisser, en


permanence et dans de bonnes conditions de securite, le libre passage a la


navigation dans les eaux de la Zone Delimitee.


Sans prejudice de ce qui precede, le Contracteur doit, pour fadliter la navigation,





installer les dispositifs sonores ou optiques approuv£s ou exig&s par les


autorites competentes, et les entretenir dune maniere qui reponde aux


prescriptions desdites autorites





8.5


Lors de la construction et de fentretien des installations n6oes$aires pour la


realisation des Operations P&rolieres, le Contracteir ne doit causer aucun


trouble a I'interieur du perimetre cfun dmetiere ou a un immeuble utilise comme


lieu cultuel, deja existant au moment des travaux. II ne doit causer aucun trouble


de nature a porter atteinte a 1‘usage normal (Jin immetfcle sans le consentement


prealable des occupants. Le Contracteur est tenu de payer des indemnites en


compensation des dommages ou des troubles causes par lui aux Tiers.





8.6


En application de la Convention Internationale sur la Pollution des Eaux de la


Mer par les Hydrocarbures signee a Londres le 12 mai 1954, des amendements


dont elle a fait I'objet et des textes pris pour assurer sa mise en oeuvre, le


Contracteur s'engage a prendre toutes les precautions necessaires pour


prevenir toute pollution marine.





A cet effet, TEtat peut decider, en accord avec le Contracted, de toute mesure


supplementaire qui lui parartrait necessaire pour assurer la preservation de la


zone marine.


8.7


A conditions de prix, de qualite et de Calais de livraison sirralaires, le Contracteur


s'engage, pour les contrats cfapprovisiormement de travaux et de services, a


faire appel a des entreprises gabonaises.





Les contrats dont le montant peut atteindre ou d^passer 1,000,000 de dollars


des Etats-Unis cfAmerique doivent faire fobjet d*un appel d'offres.


Une copie de tous les contrats vises b I’alinea precedent, condus par le


Contracteur et se rapportant aux Operations P6trolieres, sera adressee a


rAdministration des la signature desdits contrats.

















26 3S5





Le Contracteur informe les Services charges des Hydrocarbures. au moins


quinze jours a I'avance, de la date, de rheure et du lieu du depouillement des


offres. Le responsable de ces Services, ou leur representant, pourra participer a


leur depouillement et a leur etude.





Les informations mises a la disposition des participants aux operations de


depouillement et cfetude des offres doivent etre communiquees, en me me


temps, aux Services charges des Hydrocarbures.


Une liste de tous les contrats condus par le Contracteur au cours de chaque


trimestre civil, pour la realisation des Operations Petrolieres, est transmise, pour


information, a rAdministration dans les quinze jours survant la fin du trimestre


conceme. Pour chaque contrat, I'objet et le montant ainsi que le nom du


cocontractant sont precises. Le Contracteur transmet a rAdministration copie


des contrats que celle-d lui demande.




























































































27


386


 ARTICLE 9








DROITS AFFERENTS AUX PERJODES DEXPLORATTON








9.1


Sous reserve des dispositions parti culieres du Contrat, le Contracteur dispose


des droits dont Fexerace conditionne la realisation des Operations Petrolieres


dans la Zone Delimit6e et beneficie a cet effet de toutes les fadlites possibles.


Ces droits impliquent notamment:


a) L'entiere responsabilite de I'administration, de la gestion, du





controls et de la conduite des Operations Petrolieres;


b) La faculte cfexercer les droits conferes par le Contrat et les


poirvoirs en decoulant, par fintermediaire cfagents et cf entrepreneurs


independents dont il supporte les remunerations, frais et charges, conformement


£ la r£glementation en vigueur au Gabon sur les transactions finanderes et sous


reserve des dispositions de I'Article 8.7.





9.2


Sous reserve de la reglementation en vigueur et des dispositions de I'Article 8.5,


le Contracteur aura le droit de d£fricher les terrains, de creuser, peroer, forer,


construire, eriger, placer, approvisionner, faire fondionner, administrer et


entretenir des fosses, cuves, puits, tranches, excavations, barrages, canaux,


conduites d'eau, usines, reservoirs, bassins, installations d'emmagasinage en


mer et a terre, groupes de distillation primaire, groupes sdparateurs des


essences de premiere extraction, usines de soufre et autres installations de


produdion d'Hydrocarbures, ainsi que les canalisations, stations de pompage,


groupes g£n£rateurs, centrales eledriques, lignes £ haute tension, moyens de


telecommunications, fabriques, entrepdts, bureaux, baraquements, maisons


pour le personnel, hdpitaux, ecoles, locaux, ports, docks, havres, digues, jetees,


dragues, brise-lames, appontements sous-marins et autres installations, navires,


vehicules, voies fences, routes, ponts, ferry-boats, lignes aeriennes, aeroports


et autres moyens de transport, garages, hangars, ateliers, fonderies, ateliers de


reparation et tous les services auxiliaires qui s'y rapportent, et, plus


generalement, tout ce qui est necessaire a la realisation des Operations


Petrolieres.


L'emplacement de ces installations peut etre choisi par le Contracteur sous





reserve de la reglementation en vigueur et des dispositions des Artides 8.5, 13


et14.




















28 3S7





9.3


Les agents, employes et preposes du Contracteur ou de ses sous-contractants


pourront, dans le cadre de leurs fonctions, entrer dans la Zone Delimitee ou en


sortir, et acceder librement a toutes les installations mises en place par le


Contracteur pour la realisation des Operations Petrolieres.









































































































































29 3*8


 ARTICLE 10








PROPRIETE DES BIENS








10.1


Les biens immeubles tels que puits et batiments et leur materiel d’equipement,


les appontements, routes, ponts, canaux, ports, docks, digues, jetees, conduites


cfeau, canalisations, reservoirs, bassins, voies ferrees, terrains, constructions,


entrepots, bureaux, usines, ainsi que les machines et equipements etablis a


demeure, achetes ou construits par le Contracteur, ainsi que les biens meubles


acquis ou fabriqu£s par iui pour la realisation des Operations Petrolieres, sont la


propriete de I'Etat.


Le Contracteur pourra utiliser a titre gracieux ces biens meubles et immeubles


dans le cadre du Contrat. II pourra aussi les utiliser pour la realisation d'autres


operations petrolieres regies par d'autres contrats auxquels il est partie,


moyennant paiement d'un prix de location calcule d'une fagon appropriee et


approuv6 par ('Administration. Les recettes en resultant sont inscrites au compte


des CoOts Petroliers et viennent en diminution de ceux-ci. Elies sont versees a


I’Etat si les CoOts Petroliers restant e recuperer ne correspondent plus qu'a des


depenses (Sexploitation.


Pour couvrir ces biens, le Contracteur contracte, pour le compte de I'Etat, toutes





les assurances necessaires exigees par la reglementation en vigueur et


conformement aux pratiques generalement admises. Les primes d'assuranee


payees a ce titre sont incluses dans les Couts Petroliers. Les indemnites


pergues en cas de sinistre sont inscrites au compte des Courts Petroliers et


viennent en diminution de ceux-ci. Elies sont reversees a I'Etat si les Gouts


Petroliers restant a recuperer ne correspondent plus qu'a des depenses


cTexploitation, a moins qu'elles ne soient consacrees au remplacement des biens


perdus ou detruits.





10.2


Les dispositions de CArtide 10.1 ne sont pas applicables aux biens appartenant


a des Tiers ou des Sodetes Affiliees pris en location par le Contracteur en vertu


d'un bail ou d’une location simple.





























30


3S9


10.3


A conditions economiques Squivalentes, le Contracteur s'engage a donner la


priorite a I'achat des biens sur le bail ou la location.


En ce qui conceme les gros equipements et les installations importantes, le


Contracteur doit, avant d'opter pour I'achat ou la location, recueillir les avis,


suggestions et recommandations du Comit£ Technique Consultatif et soumettre


son choix, dument justifie, a ('approbation de I'Administration. Ce choix ne


devient defmitrf qu'apres I'obtention de ladite approbation.


Lors de I'examen du Programme Annuel de Travaux et du Budget





correspondant, I'Administration designe les gros equipements et les installations


importantes y figurant pour lesquels le Comite Technique Consultatif doit etre


consulte, et I'approbation de I'Administration requise.

























































































31


330


 ARTICLE 11





RAPPORTS D'ACTMTES PENDANT LES PERiODES ^EXPLORATION








11,1


L'Etat, par I'intenm^diaire des Services charges des Hydrocarbures, dispose de


toutes les donndes originales se rapportant aux Operations Petrolieres telles


que rapports g6ologiques, geophysiques, petrophysiques, de forage, de mise en


exploitation, ainsi que de toutes les informations a caract&re technique,


comptable et financier qu’il estime utiles pour I'exercice de son pouvoir de


contrdle.





11.2


Des qu’il les 6tablit ou les obtient, le Contracteur fait parvenir au responsable


des Servioes charges des Hydrocarbures les documents suivants:


a) une copie des rapports cfetudes et cfinterpretation geophysique


ainsi qu'une collection complete, sur support transparent stable tel que le


"Mylar", des profils sismiques avec traitement maximum; une copie des bandes


magndtiques est conservee par fe Contracteur et tenue a la disposition du


responsable des Services charges des Hydrocarbures;


b) une copie des telex joumaliers de sondages en oours et une





copie des rapports d'implantation et de fin de sondage pour chacun des forages,


ainsi qu'un jeu complet, sous forme reproductible, des diagraphies enregistrees;


c) une copie des rapports des tests ou essais de production


r6alis&s ainsi que toute dtude relative a la mise en debit ou en production d’un


puits;





d) une copie des rapports reiatifs aux analyses effectuees sur


carotte.


Une partie representative des carottes et des deblais de forage prelev6s dans


chaque puits, ainsi que des echantillons des fluides produits pendant les tests


ou les essais de production, sont egalement foumis dans des d6lais


raisonnables. Les carottes et deblais en possession du Contracteur a la fin du


Contrat, sont remis au responsable des Services charges des Hydrocarbures.























32


391


11.3


Au cours de la deuxieme quinzaine de chaque mois, le Contracteur fait parvenir


aux Services charges des Hydrocarbures, un rapport sur !es Operations


Petrolieres realisees au cours du mois precedent.


11.4


Le Contracteur est tenu cTinformer les Services charges des Hydrocarbures,


dans les plus brefs deiais, de toute decouverte de substances minerales et de


leur fare rapport de toutes les constatations et informations utiles s*y rapportant


11.5


L'Etat est proprietaire de tous echantillons, documents originaux, rapports etablis


ou obtenus par le Contracteur relatifs aux Operations Petrolieres, aux travaux et


etudes geologiques, geophysiques, petrophysiques, etudes de synthese,


diagraphies de sondages, meme s'ils sont a la disposition du Contracteur pour


la realisation de ces Operations Petrolieres. Le Contracteur peut detenir des


copies de ces echart&Rons, documents et rapports pour les besoins des


Operations Petrolieres.


Les Parties considered ces documents, rapports, travaux, dudes et


echantillons, comme confidentiels et s'eng agent, chacune en ce qui la conceme,


en leur nom et au nom des sodetes de services ou bureaux (fdiides travaillant


pour leur compte, k ne pas les communiquer a des Tiers sans autorisation


prealable du responsab/e des services charges des Hydrocarbures. Cette


obligation subsists, en ce qui conceme PEtat, pendant les peri odes cfexptoration


ddfinies k rArticle 3 et, en cas de renonciation rotate en application des


dispositions de l'Article 6, jusqu'a la date d'effet de cette renonciation, et, en ce


qui conceme le Contracteur, mSme apres la fin du Contrat.


Chaque entity constituent le Contracteur pourra, sans le consentement des


autres entiles ou de I'Administration, communiquer les informations et


renseignements confidential susvises:


a) k toute society interessee de bonne foi dans la realisation d'une


cession 6ventuelle ou d'une assistance dans le cadre des Operations


Petrolieres, apres obtention, de cette society, d'un engagement de garder


confidentiels ces informations et renseignements et de les utiliser aux


seuies fins de ladite cession ou assistance, ou


b) k tous consultants professionnels exterieurs, intervenant dans


le cadre des Operations Petrolieres, apres obtention, de leur part, d'un


engagement similaire de confidentiality, k condition que le Contracteur


communique sans d6lai k I'Administration, le nom desdits consultants


ainsi que les informations et renseignements qui leur ont ete reveles, ou














33


c) a toute banque ou etablissement financier aupres desquels le


Contracteur recherche ou obtient un financement, apres obtention

engagement similaire de confidentialile de la part de ces organismes,


d) lorsque et dans la mesure ou le reglemertt (Tune bourse de





valeurs reconnue rexige, sauf si le droit gabonais s'y oppose,


e) dans le cadre de toute procedure contentieuse en matiere


judidaire, acfcninistrative ou arbitrate.


Le Contracteur pourra, avec I'accord pr^alabte et ecrit de I'Administration,


echanger avec toute personne interessee, tous renseignements ou informations


confidentiels de ce type contre cfautres renseignements ou informations


similaires.



















































































34


39j


 ARTICLE 12








RESSOURCES NA TURELLES








Le Contracteur a la faculte, moyennant, le cas 6ch6ant, paiement de redevances


appropriees et sous reserve du respect de la rdglementation en vigueur et des


dispositions de I'Article 8.5, de prdlever et d’utiliser la terre de surface, le bois de


haute futaie, I'argile, le sable, la chaux, le gypse, les pierres autres que ies


pierres precieuses, ainsi que d’autres substances stmilaires n^cessaires a la


realisation des Operations Petrolieres.


Le Contracteur doit faire un usage raisonnable de ces matures pour la





realisation des Operations Petrolieres.


Le Contracteur peut prendre et utiliser i'eau n6cessaire & la realisation des


Operations Petrolieres, a condition de ne pas g&ner I'irrigation et la navigation et


que les terrains, maisons ou points d'eau n'en soient pas priv6s du fait de cette


utilisation.













































































35 394


 ARTICLE 13








U71USA VON DE TERRAINS








13.1


L'Etat mettra a la disposition du Contracteur, pour les besoins des Operations


P6tro1i£res, les terrains lui appartenant necessaires a la realisation de ces


operations. Le Contracteur pourra y construire et y entretenir, au-dessus et


au-dessous du sol, les installations necessaires. II s'abstiendra de demander


I'usage de terrains s'il n'en a pas reellement besoin, et de ceux sur lesquels sont


edifies des batiments utilises par les services de PAdministration Le Contracteur


devra indemniser I’Etat pour tout dommage cause aux terrains par la


construction, I'entretien et I'utilisation de ses installations.





L'Administration autorisera le Contracteur, dans le cadre de la reglementation, a


construire, utiliser et entretenir des reseaux de telecommunications et de


canalisations, au-dessus ou au-dessous du sol et le long et £ la limite des


terrains n'appartenant pas £ I'Etat, a la condition que la construction, I'entretien


et ('utilisation de ces r£seaux causent le moins de dommages possible et quits


soient conformes £ la reglementation.


13.2





Dans le cas ou les Operations Petrolieres n£cessitent I'occupation et Putilrsation


de terrains appartenant £ des personnes priv£e$, le Contracteur doit s'efforcer


d'aboutir avec celles-ci £ un accord fixant une indemnite equitable en


compensation de la privation de jouissance subie. En cas de desaccord, le


Contracteur doit saisir rAdministration qui peut:





- soit fixer I'indemnite £ payer par le Contracteur, si I'occupation


des terrains est de courte duree. Le montant de cette indefinite t/endra alors


compte de ('utilisation effective de ces terrains par le proprietaire au moment de


I'occupation;





- soit proceder £ (’expropriation de ces terrains conformement aux


procedures en vigueur, si leur occupation est de longue duree ou si, a Tissue de


celle-ci, ils deviement impropres £ leur usage primitif. Les droits sont acquis et


enregistres au nom de I'Etat; toutefois, le Contracteur en a la libre utilisation


pour la realisation des Operations P£troli£res pendant toute la diree du Contrat


Les frais, charges et indemnites resultant de la procedure cf expropriation sont


supportes par le Contracteur




















36 395


 ARTICLE 14








UTILISATION DES INSTALLATIONS








14.1


Four tes besoins des Operations Petrolieres, le Contracteur peut utiliser, dans


les conditions de droit commun, tout chemin de ter, tramway, route, aerodrome,


terrain rfatterrissage, canal, riviere, port, cours

telecommunications, qu'ils soient la propriete de I'Etat ou cfentreprises privees,


moyennant paiement des redevances eventuellement applicables ou a fixer cfun


commun accord, en contrepartie de cette utilisation et des couts que leur


construction, amenagement et entretien entratnent. Le Contracteur peut aussi


utiliser, pour les besoins des Operations Petrolieres, tout moyen de transport par


terre, mer ou air, a la condition de respecter les lois et reglements qui en


regissent rutilisation.





14.2


L’Etat peut utiliser, dans des cas exceptionnels, les moyens de transport et de


coffmjnication mis en place parle Contracteur, notammWrt en cas de necessite


resultant de catastrophes nationales, cataclysmes, perils interieurs ou exterieurs.


Le Contracteur met alors ses moyens a la disposition de PEtat sur requisition ou


simple demande de ceJui-d. Dans ce cas, elle sera adressee au Contracteur par


le Ministere charge des Hydrocartxres.





14.3


L'Etat peut construire, exploiter et entretenir, sur et sous les terrains mis a la


disposition du Contracteur, ou le long d'eux, des routes, chemins de fer,


aerodromes, terrains d'atterrissage, canaux, ponts, digues de protection contre


les inondations, postes de police, installations militaires, canalisations, reseau


de telecommunications, en prenant soin de ne pas mettre en peril ou d'entraver


de maniere importante les Operations Petrolieres, sauf cas de necessite


nationale.















































37


39*}


 ARTICLE 15








EXPIRATION DU CONTRATA LA FIN DES PERIODES D'EXPLORATION








Si, au cours des periodes d’exploration, le Contracteur n'a pas fait de decouverte


de Gisement d'Hydrocarbure presume commercialement exploitable, ou declare


comme tel et ouvrant droit a I'obtention cFune Autorisation Exclusive


d'Exploitation, le Contrat prend fin a I’expiration desdites periodes.


Le Contracteur n’est pas degag6 de ses obligations contractuelles nees avant





I’expiration du Contrat et qui ne seraient pas encore honorees, en totalite ou en


partie, a la date de ladite expiration. II reste tenu de les remplir conform6ment &


la r6glementation et aux dispositions contractuelles; la validite de celles-ci est


prorogee a cette fin.




























































































38 397





 ARTICLE 16








DECOUVERTEET OBLIGATION D’EXPLOfTER








16.1


En cas de decouverte dHydrocarbures, ie Contracteur devra en informer par


ecrit rAdministration dans les dix jours qui suivent la fin des essais permettant de


prosumer de rexistence dun Gisement


16.2


Le caractere commercialement exploitable ou presume tel (fun Gisement est


constate par les Parties qui se reunissent a cet effet et consigner^ leur accord


sur ce point dans un document signe conjointement





16.3


A cette fin, le Contracteur est tenu de founir a rAdministration toutes les


informations permettant un examen details des donnees relatives au Gisement


d6couvert et de se prononcer en toute connaissance de cause sur ie caractere


commercialement exploitable ou non exploitable du Gisement Ces informations


doivent dtre foumies au fur et a mesure de leur obtention par le Contracteur.





16.4


Sous reserve qu'il ait satisfait a ses engagements et obligations prevus par le


Contrat, et notamment par rArticle 16.3, in Gisement considers oomme


commercialement exploitable en application des dispositions d-dessus, dome


droit au Contracteur a line Autorisation Exclusive d Exploitation; la surface


concemee constituera, a compter de la date tf effet de cette Autorisation


Exclusive dExploitation, la Zone dExploitation. Elle sera limrtee, en projection au


niveau du sol, a Petendue presumee du Gisement, determine en fonction des


donnees geologiques et ggophysiques disponibles.


L'Autorisation Exclusive dExploitation est accordee par arrete du Ministre





charge des Hydrocarbures sur demande du Contracteur formulee dans les


formes et delais prevus a rArticle 17.1.


16.5


Si le Contracteur fait plusieurs decouvertes commercialement exploitables dans


la Zone Delimitee, chacune delies fera I'objet dune Autorisation Exclusive


dExploitation et constituera une Zone dExploitation distincte Toutefois, pour les


besoins des Articles 24, 25 et 26.1, b, il est tenu compte de la production de


I'ensemble des Zones dExploitation issues de la Zone Delimitee.

















398


39


16.6


Les quantiles d’Hydrocarbures produites avant qu'un Gisement n'ait £te d6clar6


commercialement exploitable en application des dispositions de I'Article 16.2,


sont mesur6es conformement aux dispositions de I'Article 29 et entrent dans les


quantity soumises aux dispositions des Articles 24 £ 26, a I'exclusion de cedes


utilises pour les besoins des Operations Petrolieres ou perdues, £ condition


toutefois que, pour ces demieres, le Contracteur foumisse £ ('Administration


toutes les explications et justifications utiles.


16.7





Pour tout Gisement declare ou presume commercialement exploitable


conformement aux dispositions de I'Article 16.2, le Contracteur s'engage d


realiser toutes les Operations Petrolieres utiles et n6cessaires a l'exploitation


dudit Gisement.





Le Contracteur est tenu d'informer I'Administration par 6crit de la date du ddbut


de la production d£s que celle-ci est effective.


Apr6s ('octroi d'une Autorisation Exclusive d'Exploitation, I'Etat ne contramdra





pas le Contracteur d poursuivre l'exploitation du Gisement correspondant s'il


apporte la preuve, sur la base des connaissances techniques acquises sur ce


Gisement et sur justifications comptables et financieres, de ('absence de


rentability de l'exploitation.





Dans ce cas, I’Autorisation Exclusive d'Exploitation prend fin a la date cfarret des


travaux ou de la production, et la Zone d'Exploitation correspondante devient


litre a cette date. L'Etat est alors en droit cf exploiter le Gisement pour son


compte, sans avoir k payer une quelconque indemnity au Contracteur.


16.8





Sauf drconstances exceptionnelles dument justifies, si la production cfun


Gisement n'a pas commence dans les trois arts suivant fa date (foctrui de


rAutorisation Exclusive d'Exploitation, cette demiere est armulee et les droits du


Contracteur sont consideres com me abandonnes volontairement L’annulation


est prononcee par arrete du Ministre charge des Hydrocatxires.



































399


40


 ARTICLE 17





DEMANDE DAUTORISATION EXCLUSIVE SEXPLOITATION ET


DELIMITATIONDES ZONES SEXPLOITATION








17.1


Poir obtenir une Autorisation Exclusive cTExploitation, le Contracteur doit en


faire la demande au Ministre charge des Hydrocartxjres.


Cette demande, les pieces annexes qui y sont joirrtes ainsi que les





renseignements foumis, sont rediges en lirangais ou accompagnes cfune


traduction dument certifiee; ils sont dates et sicpes par le demandeur.


La demande, les pieces annexes et les renseignements joints sont remis en trois





exemplaires, deux, dont un sir timbre, au responsable des Services chapes des


Hydrocartxjres et le troisieme au Ministre charge des Hydrocartxjres.





Le demandeur doit justifier de son identity et rappeler le domicile elu; s'il agit en


qualite de mandataire, il doit justifier de son identity, de son domicile et de ses


pouvoirs.


Les demandes presentees en application du present Article doivent foumir, sur


les entreprises constituent le Contracteur, les renseignements relatifs £ la forme


juridique, au siege social, au capital social et aux nom, pnenoms, nationality,


qualite et domicile des personnes participant statutairement a la direction, a la


gestion et a I'administration de ces entreprises et ayant la signature sodale.


Toute demande faite au b6n§fice d'une society doit etre accompagnee des





pouvoirs des signataires de la demande et d'un exemplaire certifie conforme des


statuts de la society, des pieces justificatives de $a constitution et des bilans des


trois demiers exercices.


La demande doit comprendre:





- le projet de delimitation de la Zone cf Exploitation qui doit etre


strictement drconscrite, en projection au niveau du sol, a I'etendue presumee du


Gisement decouvert;


- les pieces justificatives (interpretations geologiques,


geophysiques, des diagraphies, etc.) sur lesquelles est basee la determination


de cette etendue;














41 4d0





- I'estimation provisoire des reserves recuperables et de la


production annuelle du Gisement;





- un extrait de la carte au 1/200.000 sur lequel sont reportes les


sommets et les limites de la zone sur laquelle porte la demande;


- un memoire indiquant les resuftats des travaux cTexploration





executes dans la Zone Delimitee et donnant la position, la nature et les


caractiristiques du Gisement;





- un programme general d'exploitation du Gisement ainsi qu'une


estimation des investissements de diveloppement et de production,


- un programme privisionnel de formation et de recrutement de





nationaux.


17.2


Toute modification ulterieure de la forme juridique, des statuts ou du capital


social des entreprises constituent le Contracteur, tout changement des


personnes visies au 5eme alinia de FArticle 17.1, doivent etre portes sans delai


& la connaissance du Ministre Chargi des Hydrocarbures et du responsable des


Services Charges des Hydrocarbures.


Le Contracteur adresse annuellement a ceux-ci copie des comptes et des bilans


des entreprises le constltuant soumis pour approbation a leurs assemblies


ginirales, et de tous rapports de leurs organes de gestion et cfacfrninistration


pnisentis £ oet effet a ces assemblies.


17.3


Le droit a I'obtention d'une Autorisation Exclusive cfExploitation ne subsiste que


si la demande est parvenu© a I'Administration dans un delai de six mois suivarrt


la date de signature du document privu i rArticle 16.2 et, en tout etat de cause,


avant la date cfexpiration de la seconde peri ode cTexploration. Si dans les dilais


susvises, apres riception dudit document, une reponse n'est pas faite a la


demande, celle-d est consideree comme acceptee par FAdministratton.


17.4


Les demandes relatives aux renouvellements de rAutorisation Exclusive


cfExploitation prevus a TArtide 18.1, doivent etre presentees au plus tard 90


jours avant la date cfexpiration de TAutorisation Exclusive cfExploitation


precedente et dans les memes formes que cedes prevues a TArtide 17.1.























42 4ul


17.5


Si, dans le delai d'un an suivant I’octroi d'une Autorisation Exclusive


d'Exploitation, il apparatt que le Gisement est d'une 6tendue superieure a cede


de la Zone d'Exploitation, le Ministre Charge des Hydrocarbures accordera par


arrete, au Contracteur, k la demande de celui-ci et dans le cadre de la memo


Autorisation Exclusive d'Exploitation, une surface supplemental, de telle sorte


que le Gisement sort ainsi totalement couvert, a condition, toutefbis, que cette


surface soit comprise a I'interieur de la Zone Delimitee Le Contracteur ne pourra


pas beneficier d'une telle extension si la surface consideree a deja bte attribute


k un Tiers ou a fait robjet d’une demande en ce sens en cours cfexamen.























































































































43


4

 ARTICLE 18








DUREE DE VAUDTTE DE UAUTORfSATION EXCLUSIVE DEXPLOTTATTON








18.1


L'Autorisation Exclusive d'Exploitation est accordee au Contracteur par arrete du


Ministre charge des Hydrocarbures; elle prend effet d compter de la date de son


octroi. Sa duree maxi male est de dix ans £ compter de la date du debut de la


production.


Si, a la fin de cette duree de dix ans, (’exploitation commercials de la Zone


cfExploitation est encore possible, rAutorisation Exclusive

afferente est renouvelee, a la demande du Contracteur, par arr&te du Ministre


Charge des Hydrocarbures, poir une dun£e maximum de cinq ans, £ condition


que les obligations et ies engagements prevus par le Contrat aient ete remplis.


L’Autorisation Exclusive cfExploitation peut £tre renouvelee une seconds fois





pour une duree maximum de cinq ans, dans les m£mes conditions que


d-dessus.


Lorsqu'un renouvellement est envisage, et compte tenu des resultats financiers


obtenus par les Parties au cours de la duree precedente, celles-d peuvent


convenir de nouvelles dispositions pour les Artides 24 a 26.





18.2


Le Contracteur peut, £ tout moment, renoncer a une Autorisation Exclusive


d'Exploitation. Le Contracteur doit informer par ecrit I'Administration de sa


d£dsion de renoncer, et cette renonciation devient effective soixante jours apres


reception de cette information, £ moins que I'Administration ne soit d’accord pour


que cette renondation prenne effet plus tdt. La Zone d'Exploitation devient fibre


a la date de prise d'effet de la renonciation.


18.3


Le Contrat prend fin £ ia date d'expiration de la demiere Autorisation Exclusive


cfExploitation ou, le cas ech^ant, a la date d'effet de ia renonciation visee ci-


dessus; cependant les Parties ne sont pas degagees de leurs obligations


contractueiles nees avant I'expiration du Contrat et qui ne seraient pas encore


integralement honorees a la date de ladite expiration ou renonciation. Elle sont


tenues de ies remplir conformement & la regtementation et aux dispositions


contractueiles; la validite de celles-ci est prorogee a cette fin.

















44 403


 ARTICLE 19








PARTICIPATION DE L'ETAT








19.1


Des la mise en production cTun Gisement, I'Etat partidpe de plein droit, a


concurrence de sept virgule dnq (7.5%) pour cent, aux droits et obligations


d£coulant du Contrat, a moins qu'il ne renonce expressement a cette


participation dans un delai de quatre-vingt-dix jours suivant la date de la mise en


production susvisee.


L'Etat partidpe, a concurrence de oe pourcentage de participation, aux Couts





Petroliers relatifs au developpement et a rexploitation de la Zone d'Exploitation,


a ('exclusion de toute depense cTexptoration.





Si I'Etat veut prendre me participation supplemental, il en informe par ecrit le


Contracteur, en predsant le poircentage de participation qu'il decide de detenir.


Les conditions (facquisition de la participation supp&nentaire sont convenues


cfun commun accord.


19.2


L'Etat peut, a tout moment, ceder, a une entreprise de son choix, tout ou partie


de sa participation.


Cependant, la cession ne peut dtre realise qu'au profit d'une entreprise contrdlee





par I'Etat ou d'une entreprise de reputation technique et financi&re bien §tablie;


si le cessionnaire est une filiate ou une succursale, I’Etat exigera une garantie de


la soci6t6 mdre similaire S I'engagement prevu d I'Article 46.2. Le Contracteur


sera consults prSalablement d toute cession.





Les droits et obligations d£couiant des accords ^association liant entre elles les


entreprises constituant le Contracteur ne doivent, en aucun cas, ni limiter


I’exercice par I'Etat de ses droits, ni aggraver ses obligations, attaches a sa


participation, ni diminuer la portde et les effets de cette participation.


19.3


A compter de la date de mise en production, I'Etat rembourse aux entreprises


constituant le Contracteur, soit en nature, soit en esp&ces, sa quote-part des


CoQts Patrol iers relatifs au d6veloppement supports depuis la date d'octroi de


I’Autorisation Exclusive d'Exploitation, ainsi que les sommes correspondant aux


appels de fbnds au titre des Couts Petroliers avances par les autres partenaires


pour les couts d’exploitation.














45


404


Le choix du mode de paiement susvise est exerce par I’Etat par lettre adressee


au Contracteur avec un preavis de quatre-vingt-dix jours; a d6faut, il est cense


avoir opte pour le paiement en nature.





Si I'Etat opte de payer en especes, le paiement s'effectue sur les recettes nettes


provenant des ventes de la part de production lui revenant au titre de sa


participation, selon les modalites prevues a ('Article 41.


Si I'Etat opte de payer en nature, le paiement s'effectue & la fin de chaque mois


civil, par remise d'une partie de la part de production lui revenant au titre de sa


participation.


Quel que soit le mode de paiement, le montant a payer par I'Etat est limite a





soixante-dix pour cent, selon le cas, des recettes nettes provenant des ventes ou


de la part de production lui revenant au titre de sa participation au cours du mois


civil consid6r€. Le reliquat, s'il y a lieu, est ajoute aux sommes dues £ la fin du


mois suivant; ce report ne doit pas, cependant, avoir pour effet de ddpasser la


limite de soixante-dix pour cent ci-dessus. En consequence, le total du reliquat


Eventual et des appeis de fonds ulterieurs n'est exigible que dans !a limite


ci-dessus, le surplus etant reporte et regularise dans ies merries conditions que


ci-dessus.





Les avanoes faites pour le compte de I'Etat sur les appeis de fonds lui revenant


et non rembours6es, constituent des creances du Contracteur recuperabtes


sans limitation sur ies demiers enlevements precedant ^expiration du ContraL


Pour les besoins du present Article, les quantites dHydrocarbures remise en


paiement par I'Etat sont valorises au Prix Fixe prevu a I'Artide 27.





19.4


Le Contracteur tient & jour un compte "Participation-Etat". Ce compte est ctebite


des Couts Petroliers qui sont imputabtes £ I’Etat au titre de la periode anterieure


a sa prise de participation, ainsi que, a la fin de chaque mois civil, de sa


quote-part mensuelle des Couts Petroliers. II est credrte, a la fin de chaque mois


civil, du Prix Fixe des Hydrocarbures remis en paiement par I'Etat au litre dudit


mois et des sommes versees par lui.


Les sommes dues par I'Etat au titre du remboursement de sa quote-part des


CoOts Petroliers relatifs au dSveloppement sont augment6es, le cas ech6ant,


d'un intdret calcule au taux d'escompte annuel de la Banque des Etats de


I'Afrique Centrale.




















46 4ob


 ARTICLE 20








PROGRAMME DE DEVELOPPEMENT





20.1


Dans les cent-quatre-vi ngts jours suivant I'octroi (June Autorisation Exclusive


cfExploitation, le Contracteur doit exposer et soumettre a I'approbation de


('Administration un programme detaille de developpement et de production


spEcifiant notamment:


- posts par poste, les equipements et les travaux necessaires prevus pour


la mise en production, tels que le nombre de puits de developpement, le


nombre de plates-formes, les pipelines, les installations de production, de


traitement, de stockage et de chargement necessaires;


- les estimations des couts correspondants;


- le calendrier prevu pour la realisation des travaux, des Equipements et


installations visEs ci-dessus;


- la date prevue de debut de la production;


- ('estimation des reserves recuperaWes et de la production annueJIe.


Ce programme de developpement et de production doit avoir Ete examine par le


ComitE Technique Consultatif, conformement a {'Article 2.2, avant d'etre soumis


£ ('Administration accompagne des avis, suggestions et recommandations de


celui-ci.


20.2


Si ('Administration estime que des modifications au programme de


developpement et de production ci-dessus sort necessaires ou utiles, elle doit,


dans un dElai de quatre-vingt-dix jours suivant la reception de ce programme, en


informer par Ecrit le Contracteur en indiquant les modifications qi/elle demande,


appuyEes des justifications qu’elle juge utiles.


L'Administration et le Contracteur se reuniront a tors aussi rapidement que


possible pour examiner les modifications demandees et Etablir, cfun commun


accord, le programme dans sa forme definitive. Ce programme est considerE


approuve a la date dudit accord.

















47


En tout etat de cause, !es parties du programme pour lesquels I’Administration


n'aura pas demande de modifications sont considers comme approuvees et


devront Stre r^alisees par le Contracteur dans les delais injtialement pr6vus.


Si, a ('expiration du delai ci-dessus, ('Administration n'a pas adresse au


Contracteur de demande de modifications, le programme est repute approuv£.




















































































































48


4v>7


 ARTICLE 21








OBLIGATIONS DU CONTRACTOR DURANT LES PER/ODES DE


DEVELOPPEMENT ET DEXPLOTTAVON








21.1


Sauf dispositions particulieres, ies Articles 5, 8, 10 et 11 du Contrat sont


applicables, "mutatis mutandis*', aux Operations Petrolieres reaiisees dans le


cadre des Autorisations Exclusives cfExplortatjon


21.2





Des roctnoi cfune Autorisation Exclusive (/Exploitation, le Contracteur s'engage


a proc6der avec diligence a la realisation des forages de developpement


necessaires, en adoptant un espacement entre ceux-ci conforme aux regies de


Tart generalement admises dans rindustrie des Hydrocarbures et tel qu’il


permette la recuperation §conomique optimale pour Ies Parties, des


Hydrocarbures contenus dans le Gisemient.





Sauf drconstances exceptionnelles dument justifies, le Contracteur devra


commenoer Ies operations de developpement au plus tard six mois apres


Tapprobation par PAdministration du programme de developpement et de


production detini a rArticle 20.





21.3


Le Contracteur est tenu d'observer, dans la conduite des operations de


production, toutes Ies regies de I'art generalement admises dans I'industrie des


Hydrocarbures, de mani&re a assurer la recuperation economique optimale pour


Ies Parties, des Hydrocarbures contenus dans le Gisement.





21.4


Le Contracteur est tenu de realiser, des que cela est techniquement possible,


des etudes en vue de la mise en oeuvre d'un programme de recuperation


assistee sur le Gisement et de recourir, en temps utile, a ces techniques de


recuperation si elles sont susceptibles de conduire, dans des conditions


economiques satisfaisantes pour Ies Parties, a une amelioration du taux de


recuperation des Hydrocarbures contenus dans le Gisement.


21.5





Le Contracteur est tenu de foumir a ('Administration tous las rapports, etudes,


resultats des mesures, tests et essais, ainsi que Ies documents permettant de


controler ('exploitation des Gisements, en vue de s'assurer que celle-ci est


conduite dans de bonnes conditions, notamment au sens des dispositions


prdcedentes.











49


408


II est tenu, notamment, de rSaliser, sur chaque putts producteur, les operations


suivantes:





- releve de la production cTHydrocarbures joumaliere, mensuelle et


amuelle,


- contrdle mensuel du rapport gszl huile (“gas oH ratio”),





- mesure annuelle de la pression des reservoirs dun Schantillon de putts


judicieusement choisi et representant au moins la rnoftie des putts du


Gisement


Le Contracteur est tenu dappliquer touts recommandation fatte dun common


accord en mati&re de conservation des Gisements et de respecter la


regimentation en vigueur en matter© de pollution et de security des biens et des


personnes.


21.6


Le Contracteur est tenu de produire armuettement des quantity


d'Hydrocarbures de chaque Gisement conformes aux normes intemationales


generalement admises dans I'industrie des Hydrocarbures, notamment en


appliquant les regies de bonne conservation des Gisements qui assurent une


recuperation optimale des reserves d'Hydrocarbures dans des conditions


6conomiques normales pour les Parties.





217


Le Contracteur contribue annuellement a un Fonds de Soutien des


Hydrocarbures cree dans le but de faire progresser la recherche ptetroliere au


Gabon. La contribution du Contracteur & ce fonds sera calculee sur la


Production Totale Dtsponible a raison de la contre-valeur en francs C.F.A de


0,05 dollar des Etats-Unis cfAmerique par Baril. Cette contribution ne sera pas


incluse dans les Couts P&roliers.


Le Fonds de Soutien des Hydrocartxjres sera gere par le Ministre charge des





Hydrocarbures.



































50 4-)


 ARTICLE 22








DROITS DU CONTRACTEUR ATTACHES AUX AUTORISATIONS


EXCLUSIVES SEXPLOITATION








22.1


Sauf dispositions particul teres, ies Articles 9, 12, 13 et 14 du Contrat sortt


applicables, "mutatis mutandis", aux Operations P6trolteres realisees dans le


cadre des Autorisations Exclusives d'Exploitation.


22.2





Le CorAradeur peut, sous reserve du respect de la reglementation en vigueur,


construire, utiliser, faire fonctionner et entretenir toutes Ies installations de


production, de stockage et de transport des Hydrocarbures necessaires a la


production, au transport, a la livraison et au enlargement des produits extraits,


sous reserve des dispositions de fArticle 10.3.


22.3





Sil n'existe pas de capacite

peut, dans Ies conditions prSvues pa- la reglementation, construire une


canalisation permettant cfevacuer la production. A cet effet, le Contracteur remet


a TAdministration, pour approbation, et avant tout commencement des travaux,


des plans confomies au trace qu'il a etabli et it ('emplacement projete de la





canalisation qu'il se propose de realiser. Toutes Ies canalisations croisant ou


longeant des routes ou votes de passage (autres que celles affectees aux


Operations P6trolteres) sont construites de fa^on & ne pas gener le passage.


Les conditions de transport ainsi que le reglement de s6curit6 de ces ouvrages,


doivent Stre conformes a la reglementation en vigueur en la matters.





22.4


Le Contracteur est tenu, dans la limite des capacites disponibles et a des


conditions de tarif normales et non discriminatoires, de permettre I’utitisation par


les Tiers des infrastructures de transport, de traitement et de stockage des


Hydrocarbures rteaiisees dans le cadre des Operations Petrolieres.





Les conditions tarifaires appiiquees doivent etre justifiees et soumises a


('approbation pn&alable de Services charges des Hydrocarbures. Le tarif est


£tabli de maniere a permettre la recuperation des frais d'exploitation de


I’ouvrage, y compris une quote-part du prix de revient des installations au plus


6gale a I'amortissement fiscal en vigueur ou habituellement pratique au Gabon


et calcule sur la valeur d'acquisition (forigine, et la realisation cfune marge


beneficiaire raisonnable represerrtant la remuneration des capitaux investis pour


la realisation de cette infrastructure.











51 410


 ARTICLE 23








OBLIGATION DE COMMERCIAUSER LA PRODUCTION








23.1


D6s que la production d'un Gisement d'Hydrocarbures devient regul&re, le


Contracteur est tenu de tout mettre en oeuvre pour obtenir la meilleure


valorisation des produits extraits, de sorte que les conditions de


commercialisation des quantites lui revenant n'affecte pas defavorablement le


cours des Hydrocarbures gabonais sur le marchE international.





23.2


Le Contracteur est tenu de faire de son mieux pour que les prix obtenus a





I'exportation des Hydrocarbures gabonais soient conformes a ceux pratiques sur


le marchE international au moment de la vente, a quality, quantites, fret et


conditions de paiement Equivalents.




























































































52 411


 ARTICLE 24








RECUPERATION DES COUTS PETROUERS








24.1


Le Contracted a droit a la recuperation des Couts P&roliers qu’il a supportes a


I'interied de la Zone Delimitee, par prelevement dune partie de la production


dHydrocarbures provenant exdusivement de cette zone. La recuperation des


Couts Petroliers ne peut, en auan cas, s'operer par prelevement sur la


production d'Hydrocarbures provenant de gisements situes hors de cette Zone


Delimitee.


Pour I'application de I'alinea qui precede, ie Contracteur doit tenir, confbrmement


a rArticle 26.9 et a I’Accord Comptabte, un compte des Couts Peiroliers.





24.2


Le Contracteur dispose du droit a recuperation des CoCits P6troliers des le debut


et au fir et & mesure de la production


Ce droit donne au Contracteur la facUte cfoperer des prelevements cTune partie


de la Production Nette. Ces prelevements s'eflectuent a concurrence du montant


des Couts P6troliers sans, toutefois, qu*ils puissent exc£der, pour une Amee


Civile donnee, soixante-dix (70%) pour cent de la Production Nette obtenue au


cours de ladite annee.


Les Hydrocarbures prelev6s par le Contracteur, en application du present





Article, sont valorises, aux fins de comptabilisation au compte des CoGts


P6troliers vise a I'Article 26.9, au Prix Fix6 d6fini a I'Artide 27.





24.3


L'Etat dispose d'un droit de preference sur les quantites d’Hydrocarbures


revenant au Contracteur au titre de la recuperation des Couts Petroliers, lorsque


ces quantites sont ofFertes a des Tiers.


Pour I'application des dispositions qui precedent, ne sont pas considerees


comme ventes a des Tiers les quantites d'Hydrocarbures cedees dans le cadre


d'echanges necessites par des contraintes techniques inherentes aux


installations, ou destinies e realiser des economies de temps ou de transport,


mais a condition que les quantites regues en echange soient destinees


effectivement a la satisfaction des besoins du Contracteur ou de ses Societes


Affiliees.

















53


412


En contrepartie des quantiles d'Hydrocarbures achetees en application des


dispositions ci-dessus, I'Etat verse au Contracteur une somme egale au produit


desdites quantites par le prix fixe cfun commun accord par les Parties. Ce prix


est determine par reference a ceux pratiques sur le marche international au


moment de la vente, £ quality, quantite, fret et conditions de paiement


equivalentes.





Les montants verses par I'Etat au Contracteir dans fe cadre du droit de


preference sont inscrits au credit du compte des Couts Petroliers, ceux-ci £tant,


akxs, consideres r6cu peres en especes.


24.4





Quand I'Etat exerce le droit de preference prevu a PArticle 24.3, le Contracteur


adresse £ I'Administration, au plus tard quinze jours apres la date de


chargement de la quantite d’Hydrocarbures ansi cedee a I'Etat, la facture


correspondante, libellee en dollars des Etats-Unis cfAmerique.


Dans les quatre-vingt-dix joirs suivant la reception de cette facture, I'Etat


precede £ son r&glement en devises convertibles, conformement a la


r£glementation en vigueur. Le montant du est verse au compte du Contracteur


ouvert aupres dune banque etablie au Gabon. Si I'Etat n'effectue pas le


paiement dans le d£fai ri-dessus, le montant du porte intend calcule a un taux


annuel au plus egal au taux (fescompte de la Banque des Etats cfAfrique


Centrale. Si le r£giement dune facture n'est pas effectu£ dans le delai susvise,


le droit de preference sera suspendu tant que le paiement de la demiere facture


n’est pas honore.


24.5





Quel que soit le mode de recuperation des Couts Petroliers adopfe, par


preievement d'Hydrocarbures, en application de I'Article 24.2, par paiements en


especes, en application de I'Artide 24.3, ou par une combinaison de ces deux


modes, la recuperation totale, au cours d'une Annee Civile, exprimee en quantite


d'Hydrocarbures, ne peut, en aucun cas, exceder le pourcentage fix6 £ I'Artide


24.2 de la Production Nette de ladite Ann£e Civile.


24.6


Si au cours d’une Annee Civile, la Production Nette de la Zone D£limitee ne


permet pas au Contracteur la recuperation des Couts Petroliers en application


des Articles 24.1 £ 24.5, le montant des CoCits Petroliers non recuperes au cours


de cette Ann£e Civile est reporte sur les Annees Civiles suivantes jusqu'a


recuperation totale des Couts Petroliers ou la fin du Contrat.


























54 413


24.7


En cas de decouverte a I'interieur de la Zone Delimitee de Gisements


produisant des Hydrocarbures de qualites differentes, la recuperation des Couts


Petroliers est effectuee par prelevement en nature ou versements en especes,


conformement au present Article, en tenant compte de chacune des qualites,


proportionnellement a la Production Totale Disponible.
































































































































55 414


 ARTICLE 25








PART AGE DE LA PRODUCTION





25.1


Apres prelevement par le Contracteur d'une part de la Production Nette au titre


de la recuperation des CoOts P6troliers, en application des dispositions de


I'Article 24, la Production Restante cfHydrocarbures est partag6e entre I'Etat et


)e Contracteur suivant les modality ci-aptes:


a) Lorsque la moyenne journalise de la Production Totale Disponible de la Zone


Delimitee, pour un mois civil donnd, est 6gale ou interieure k dix milie (10*000)


Barils, la Production Restante est partag£e entre:


- I'Etat: cinquante (50%) pour cent


- le Contracteur: cinquante (50%) pour cent


b) Lorsque la moyenne journalism de la Production Totale Disponible de ia


Zone Delimitee, pour un mois civil donn6, est superieure a dix milie Barils, et


interieure ou egale k vingt-cinq milie (25*000) Barils, la tranche supplemental©


de la Production Restante est partag6e entre:


- I'Etat: cinquante-cinq (55%) pour cent


- le Contracteur: quarante-cinq (45%) pour cent;


c) Lorsque la moyenne joumaliere de la Production Totale Disponible de la


Zone Delimitee, pour un mois civil donne, est superieure a vingt-cinq milie Barils,


la tranche supptementaire de la Production Restante est partagee entre:


- I'Etat: soixante (60%) poir cent


- le Contracteur: quarante (40%) pour cent


En cas de d6couverte, a I'interieur de la Zone Delimitee, cfHydrocarbues de


qualites difterentes, le partage entre I'Etat et le Contracteur de la Production


Restante d'Hydrocarbures se fait separement sur chacune des qualites,


proportionnellement a la Production Totale Disponible.


Le Contracteur a droit a sa part d'hydrocarbures des le d£but et au fur et a


mesure de la production.











56


25.2


L'Etat prefeve en nature sa part de production definie a I'Article 25.1.





Toutefois, le Contracteur est tenu, lorsque I'Etat en fait la demands, d'assurer la


vente de tout ou partie des quantites d'Hydrocarbures lui revenant au titre de


rArticle susvise et de lui en verser le prix. Dans ce cas, le Contracteur fait de son


mieux par obtenir, sur le marche, un prix de vente au moins egal au Prix Fixe


defini k fArticle 27. A foccasion de cette operation, le Contracteur beneficie


(June commission de vente dont le montant est fixe cfun commun accord par


reference aux pratiques commerciales habituelles en la matiere.


Au cas ou le Contracteur ne reussit pas a obtenir un prix de vente au moins 4gal





au Prix Fixe, il en informe I'Etat en indiquant le meilleur prix qui lui est propose.


L'Etat lui fait aiors savoir s'il accepte le prix de vente que celui-ci peut obtenir ou


s'il prefers recevoir en nature les quantifes concerrfees.





25.3


L'Etat peut demander le reglement du produit des ventes de sa production


assufees par le Contracteur dans la monnaie etrartgere de son choix. Le choix


de la devise de reglement doit 6tre notrffe au Contracteir au moment de la


demande de vente visee a I'Article 25.2,2eme alinea A d^aut de notification, le


feglement s'effedue dans la monnaie dans laquelle est exprime le Prix Fixe


ddfini a I'Article 27.


25.4


L'Etat dispose d'un droit de preference sir les quantifes cfHydrocarbures


revenant au Contracteur au titre de sa part de production definie a rArticle 25.1,


dans les rrfemes conditions et suivait les monies modalites que cedes prevues


aux Articles 24.3 et 24.4.
























































57


41*;


 ARTICLE 26





REGIME FISCAL





26.1


A raison des Operations P6trolteres effectuees dans la Zone Delimitee, le


Contracteur est assujetti aux imp6ts, droits, taxes et redevances suivants:


- a) ies bonus prevus a r Article 28; ils sont payables en espdces;


- b) la redevance mini&re proportionnelle, en phase de production





d'Hydrocarbures, dont Ies taux applicables sont fbfes comme suit:


- trois pour cent (3%) lorsque le rythme de Production Total


Disponible, pendant un mois civil, est egal ou inferieur a cinq mille


(5'000) barils par jour;





- six pour cent (6%) lorsque, pendant un mois civil, le rythme de


Production Total Disponible est superieur & cinq mille (5’000) et


egal ou inferieur a sept mille cinq cent (7’500) barils par jour;


- neuf pour cent (9%) lorsque le rythme de Production Total





Dispontoie, pendant un mois civil, est superieur a sept mille cinq


cent (7’500) et 6gal ou inferieur & dix mille (10*000) barils par jour;


- douze pour cent (12%) lorsque le rythme de Production Total


Disponible, pendant un mois civil, est siperieur h dix mille (10*000)


et egal ou inferieur a quinze mille (15*000) barils par jour;


- quinze pour cent (15%) lorsque le rythme de Production Total


Disponible, pendant un mens civil, est superieur & quinze mille


(15*000) et 6gal ou inferieur a vingt-cinq mille (25*000) barils par


JOLT,


- dix-sept virgule cinq pour cent (17.5%) lorsque le rythme de


Production Total Disponible, pendant un mois civil, est superieur a


vingt-cinq mille (25*000) barils par jour


La Production Totale Disponible passible de la redevance mini&re


proportionnelle est diminu6e des quantifes:

















58 417





1/- perdues ou bailees tors cTessais de production sur la


Zone cf Exploitation ou dans les installations de production, de


collecte ou de stockage de ladite zone, sous reserve que le


Contracteur ait respect© la reglementation en vigueur et les


directives et recommandations de rAdministration;


2/- reinjectees dans les Gisements de la Zone


cf Exploitation;


3/- utilisees a la confection de fiuides de forage pour les


besoins de la Zone Delimitee;





41- utilisees a des travaux executes, apres forage, sur des


puits du Gisement de la Zone cf Exploitation;


51- oonsommees dans les moteurs ou turbines fbum'issant


Itenergie utilisee:


i) a actionner les unites de pompage necessaires


sir les puits du Gisement de la Zone cfExploitation,


ii) a collecter les Hydrocartoures sur la Zone


d1 Exploitation,


iii) d faire fonctionner les installations de forage





gtablies sur la Zone Delimitee pour les besoins de celle-ci.


Les quantites pr6lev6es ou utilisees en aval du point oCi est decomptee la


Production Totale Disponible passible de la redevance mintere proportionnelie,


pour les besoins 6num6res ci-dessus, ne sont admises en deduction de


I'assiette de la redevance miniere proportionnelie que sur autorisation


exceptionnelle de ('Administration, delivree sur demands justifi6e du Contracteur.


La redevance minidre proportionnelie est payee soit en nature, soit en especes,


au choix de I'Etat. Si celui-ci ne fait pas connaitre son choix, il est repute avoir


opte pour le paiement enesp^ces.


Lorsque la redevance miniere proportionnelie est payee en especes, elle est


calculus sur la valeur F O B des Hydrocarbures. Pour la determination de cette


valeur F O B, le prix retenu est le Prix Fixe defini a I'Article 27.




















59


418


Le rdglemerrt en especes de la redevance minjere proportionnelle est effectu6 a


la calsse du Receveur charge du recouvrement, au plus tard le vingt-huit de


chaque mois, sur la base de la production mensuelle moyenne du trimestre civil


precedent. La r£gularisation intervient au plus tard le 28 janvier de chaque


annee, pour I’Annee Civile pr6cedente, sur la base de la Production Totale


Disponible de ladite annee et du Prix Fixe y afferent.


Au debut de la production, et durant la periode ou la production mensuelle





moyenne visde ci-dessus ne peut §tre determines, le montant de la redevance


est calcule sur la base de la production effective de chaque mois considere, et


est payee dans les memes delais que ci-dessus.





Si I'Etat d6sire recevoir en nature tout ou partie de la redevance miniere


proportionnelle, il en avise le Contracteur par ecrit au moins cent quatre-vingts


jours a I'avance, en prdcisant la quantite qu'il desire ainsi recevoir durant la


periode consid6r£e.


La redevance miniere proportionnelle n'est pas incluse dans les CoQts


Petrol iers.





- c) la redevance superficial annuelie pr£vue par la


r6glementation en vigueur. Cette redevance, incluse dans les Couts


P6trofiers, est pay£e en especes, d'avance et par Annde Civile enti£re, sur la


base de la superficieauler janvier de chaque annee et, pour la premiere


annee, sur celle existant a la Date Effective;


- d) les droits et taxes pergus a I'importation par (’Administration


des Douanes tels qu'ils sont definis £ ('Article 34;


- e) I'lmpot sur les Benefices et Revenus (Impot sur les Sodet£s)





du par chaque entneprise constituant le Contracteur, calculi par application du


taux d'imposition d'application g£n6rale et conformement aux dispositions de


I'Article 26.1. Le reglement de I'impdt sur les soci£t£s est effectu6 par paiement


du montant dudit impot, a I'Administration fiscaie competente, par I'Etat, pour le


compte de I’entreprise susvis£e. Conformement £ I’Article 26.3, cette quantite est


incluse dans la part revenant a I’Etat au litre des dispositions de I’Article 25.1.


L’lmpot sur les Societes ainsi dO au titre d’une Annee Civile donnee et paye a





I’Etat en nature, est determine sur la base, notamment, du revenu brut constitue


par le chiffre d'affaires provenant de la quantite d'Hydrocarbures dont le


Contracteur dispose en application des Articles 24 et 25, ou de leur equivalent


en especes, ainsi que des quantites remises £ I'Etat en paiement de I'impdt sur


les Societes et, d'autre part, des charges deductibles, y compris les bonus vises


£ I’Article 28, les couts de materiel definis dans I'Article 21.7, les interets et le


Fonds de Soutien des Hydrocarbures, prevues et definies par la reglementation











60 41»





fiscale en vigueur et les dispositions de I'Article 26.10. Le benefice imposable y


afferent est celui qui ressort de la Declaration Annueile Statistique et Fiscale


visee aux Articles 26.4 et 26.5.








26.2


Du point de vue fiscal et douanier, chacune des entreprises constituent le


Contracteur est traitee comme une entreprise distincte. Dependant, en cas de


defaillance de I'une d'elles dans I'accomplissement de ses obligations fiscales


resultant du Contrat, les autres lui seront substitutes.





26.3


La quantite d'Hydrocarbures que I'Etat regoit au cours de chaque Annee Civile


en application de I’Artide 25.1, comprend:


- a) la part representative des droits miniers autres que ia





redevance superficiaire et de la redevance minitre proportionnelle, visees aux


paragraphes b et c de I'Artide 26.1 ci-dessus;


- b) et, conformement aux dispositions de rArticle 26.1, e) d-





dessus, la part representant rimpflt sir les Sodetes du par les entreprises


constituant le Contracteur au titre des Operations Petrolieres realistes dans la


Zone Delimitee, et calcule au taux prevu par la reglementation en vigueur.





26.4


Chaque entity constituant le Contracteur tiendra, par Annee Civile, une


comptabilitt distincte des Operations Petrolieres, qui permette cf&ablir, en


particulier, un solde caracttristique de gestion et un bilan dttaillts faisarrt


ressortir tant les resultats desdites operations que les elements cfactif et de


passif qui y sont affectes ou s'y rattachent. Cette comptabilite doit ttre conforme


a cede prevue par la reglementation en vigueur au Gabon, notamment au Plan


Comptable General des Entreprises. Elie doit en particulier, permettre


I'etablissement de Declaration Annueile Statistique et Fiscale ainsi que des


annexes qui doivent y etre jointes.


26.5


Chacune des entreprises constituant id Contracteur est tenue de remettre au


responsable des Services charge des Hydrocarbures, au plus tard le 30 avril de


chaque annee, un exemplaire de ia declaration relative a I’lmpot sur les Soci6t6s


afferent a I'Annee Civile precedente, telle qu'elle est exigee par la


reglementation fiscale en vigueur.





Le Solde Caracteristique de Gestion, ainsi que le Bilan, devront faire ressortir


plus particulierement le montant des amortissements des depenses


d'immobilisations pratiques au cours de I'exercice. Ces amortissements sont


calcules, ^ concurrence de ces depenses non encore amorties, et comptabilises











61


420


pour un montant egal a la difference, si elie est positive, entre le montant


maximale de la recuperation des Couts Petrolidres prevue a rArticle 24.2, et le


total des charges portees au debit du Solde Caracteristique de Gestion.


26.6


L'Administration fiscals, apres examen das documents vises ci-dessus, deiivre a


chacune des entreprises constituant le Contracteur, dans les soixante jours


suivant la date de leur production, les attestations fiscales et tous autres


documents certifiant qu’elle a rempli ses obligations fiscales resultant de la


reglementation en vigueur, sous reserve des droits de verification et de repetition


de fAdministration prdvus par la reglementation en vigueur.


Au regard de la reglementation fiscale, la valeur des Hydrocarbires dont le


Contracteur a la disposition au cours cfune Annee Civile, en application des


Articles 24 et 25.1, est considdree comme reprdsentant la recuperation des


Couts Petroliers et le benefice net apres Impdt sur les Societes.





26.7


En dehors des bonus prdvus aux Articles 28.1 el 28.2, des impdts, droits et


redevances prevus a PArticle 26.1, des droits et taxes pergus par (Administration


des Douanes, prevus b ('Article 34, de la contribution au Fonds de Soutien des


Hydrocartxres prevue a rArticle 21.7, de la contribution prevue b CArticle 39, le


Contracteur est exonere, a raison des Operations Petrotieres, de tous autres


impdts, redevances, droits, taxes, bonus et contrixjtions, a Pexception de la


contribution fond ere sur les propridtds bSties, exigible dans les conditions de


droit commun sur les immeubles b usage cfbabitation.





Ses foumisseurs, sous-traitants, prestataires de services et Soridtes Affiliees


sont exoneres de I'impdt sur le Chiffre cf Affaires mterieir et de la taxe sur les


transactions exigibles a ('occasion des ventes faites, des travaux executes et des


services rendus dans le cadre du Contrat.


Le benefice realist par les entreprises constituant le Contracteur dans le cadre


des Operations Pdtrolferes est exonere de tout impdt et retenue a la source


exigible a ('occasion de sa distribution aux actionnaires ou assodes, ou de leur


affectation.





Lorsque, par erreur, une des entreprises constituant le Contracteur a ete


soumise a des impdts, droits, taxes, retenues ou redevances dont elle est


exoneree en application des dispositions du present Article, elle en impute le


montant au compte des Couts Petroliers si elle n'en est pas degrevde un an


apres avoir introduit une redamation a cet effet aupres de I'Administiation


competente Cette imputation est soumise, a I'effet (fen constater le bien-fondd,


a I’agrement ecrit prealable du Ministre charge des Hydrocarbures.

















62


421


Les exonerations ci-dessus ne s'appliquent pas aux droits et taxes exigibles en


contrepartie de services rendus par les Administrations, collectivites et


etablissements publics gabonais utilises par le Contracteur. Toutefois, les tar'ifs


appliques a regard de celui-ci, de ses entrepreneurs, transporteurs et clients, et


de ses agents, doivent correspondre a I'importance des services rendus et ne


seront pas discriminatoires.


Plus particulierement, le Contracteur restera assujetti aux taxes et impdts locaux,





commmaux et portuaires en vigueur; mais ieir taux ne devra pas §tre


discrcninatoire a regard du Contracteur par rapport a celui applique aux


entreprises exergant une activite similaire.





26.8


Les cessions de toute nature entre les sorietes signataires du Contrat et leurs


Societes AFFiliees sont exonerees de tous droits ou taxes exigibles a ce titre par


('Administration de FEnregistremenL


26.9


Concurremment a robligation de tenir ir>e comptabilite conforme a celle prevue


par la reglementation en vigueur et les dispositions du Contrat le Contracteur


tient un Compte des Couts Petroliers destine a enregistrer, cfune part, toutes les


depenses recup^rables, au sens des dispositions du Contrat et de I'Accord


Comptabte, effectives pour les besoins des Operations Petrolieres, au fur et a


mesure de leur paiement effectif, et, cfautre part, les montants recuper^s des


Couts Petroliers, au fur et a mesure de cette recuperation, ainsi que, au fur et a


mesure de leur encaissement les reoettes et produits de toute nature qui


viennent en deduction ou en attenuation des Couts Petroliers.





Le Compte des Couts Petroliers sera subdivise en sous-comptes permettant,


notamment, de faire ressortir:


- a) les depenses d'exploration: les paiements de toute nature lies aux





operations de geologie, geophysique, forage, equipement de puits et essais de


production (ainsi que toutes operations connexes) destines £ decouvrir des


Hydrocarbures;





- b) les depenses depreciation: les paiements de toute nature lies aux


operations de geologie, geophysique, forage, equipement de puits et essais de


production, destinees a determiner si le Gisement decouvert est


commercialement exploitable et a en determiner les limites;


- c) les depenses de developpement: les paiements de toute nature tels


que: forage, equipement de puits et essais de production, pose de plates-formes


et de canalisations et toutes autres operations effectuees en vue de la


production, du transport, du traitement et du stockage des Hydrocarbures au


terminal de chargement;











63


422


- d) les depenses Sexploitation: les payments de toute nature lies a


I'etude, la conduite et I'exScution des travaux se rapportant directement ou


indirectement d I'exploitation et & I'entretien des installations de production, de


traitement, de stockage et de transport des Hydrocarbures.


Pour Stre considdrees comme des Couts Petroliers, les depenses susvis^es





doivent $tre strictement necessities par les besoins des Operations Petrolieres


et repondre aux criteres enoncis dans I'Accord Comptable;


Les expenses payees se rattachant a des charges non deductibles, cedes dont


la recuperation est exclue par une disposition expresse du Contrat ou de


fAccord Comptable, cedes qui presenters un caractdre somptuaire ou exag6r§,


les )ib6ra)it£s non autorisees par la r6glementation et, d'une maniere generals,


toutes les expenses qui ne sont pas necessities par le souci d'une bonne


gestion des Operations Petrolieres, ne sont pas recup6rables; elles ne doivent


pas, an consequence, etre portees au debit du Compte de CoOts Petroliers.


A tout moment, le solde du Compte des Couts Petroliers indique le montant non


encore r6cup6r6 par le Contracteur.


Les modalites pratiques duplication des dispositions du present Article 26 sont


definies dans I'Accord Comptable, Annexe n° II du Contrat.





26.10


1 - Sont notamment portees au debit du compte des Couts PetFoliers, les


depenses relatives:


a) a la construction, la t&xication, la creation, la realisation, I'achat, la


location, I'entretien et la reparation des actifs corporels, y compris ies


matieres consommables;


b) a ('exploration et a fa recherche;


c) aux impdts, droits et taxes etablis et payes au Gabon;





d) au personnel et a I'environnement du personnel;


e) aux prestations des services foumis par les Tiers, les Societes Affiliees


etles entreprises constrtuant !e Contracteur, y compris I'assistance


technique;


f) aux assurances souscrites et aux r&glements de sinistres;





g) aux frais juridiques;








64


423


h) aux interets, agios et charges financieres verses aux creanciers, pour


leur montant reel et dans la mesure ou les emprunts et dettes auxquels its


se rapportent sont necessites par les Operations Petrolieres et


correspondent a un besoin reel de financement de celles-ci.


Cependant, les depenses de cette nature ne sont pas intertables aux Couts


Petroliers dormant droit a recuperation en application du present Article et des


Articles 24 et 26.9, dans les cas suivants:


- dune maniere generate, lorsque les emprunts et dettes auxquels Its se


rapportent ne sont pas neoessites par les besoins de financement des


Operations Petrolieres;


-torsqu'ils se rapportent aux emprunts et dettes du Contracteur


eventuellement contractes pour le financement des operations de recherche et


cfexploration;


- torsqu'ils se rapportent, et a due concurrence, 4 (a part des emprunts et





dettes depassant sobcante-dix pour cent du montant des depenses de


developpement et de production;





Les interdts verses aux actionnaires, aux Societes Affiliees et aux entreprises


constituarrt le Contracteur au tttre des sommes prdtees ou avancees par eux,


sont admis dans les memos limites et sous les nr£mes conditions que enjessus,


mais, en outre, dans la limite maximum de ceux calailes au taux annuel


d’escompte de la Banque des Etats de PAfrique Centrale, majore de deux points.


i) aux pertes de change realisees liees aux emprunts et dettes du





Contracteur, dans les memes conditions et restrictions et suivant les m§mes


modaiites que celles pr6vues au paragraphe h) ci-dessus


En outre, le Contracteur ne saurait Stre garanti contre les risques de change ou





manques a gagner Ii6s & I'origine des capitaux propres investis et a son


autofinancement, et les pertes dventuellement subies de ce fait ne peuvent, en


aucun cas etre considers comme des Couts Petroliers; elles ne peuvent, par


consequent, etre inscrits au compte des Couts Petroliers, ni donner droit £


recuperation. II en est de m&me des primes et frais d'assurances que le


Contracteur viendrait a souscrire pour couvrir de tels risques.


Les pertes de change realises et directement liees aux creances se rapportant


aux Operation Petrolieres et trait6es directement en monnaie etrangere, sont


6galement imputables aux Couts Petroliers;


j) aux frais exposes a ('occasion des controles et verifications operas par


I'Administration;











65 424





k) aux frais generaux, dans les conditions fixees par I'Annexe comptable.


2- Ne sont pas imputabtes aux CoOts Petrol iers les paiements effectues en


reglement de frais, charges ou depenses non directement imputables aux


Operations Petrolieres, ceux dont la deduction ou ("imputation est exclue par les


dispositions du Contrat ou de FAnnexe Comptable, ou ceux qui ne sont pas


necessity par les besoins desdites Operations Petrolieres. II s’agit, notamment,


des paiements effectues au litre:


a) des frais cTaucpnentation de capital;





b) des frais de commercialisation;


c) des frais relatifs a la periode anterietre a la Date Effective;


d) des frais (faudit exterieur payes par le Contracteur dans le cadre des


relations particulieres entre les entreprises constituant le Contracteur


e) des bonus et Foods de Soutien des Hydrocarbures vises


respectivement aux Article 21.7 et 28;


f) des frais support&s a Foccasion des reunions, 6tudes et travaux





realises dans le cadre de I'association liant les entreprises constituant le


Contracteur;


g) des int6r6ts agios et charges financ&res qui ne repondent pas aux


conditions prfcvues au paragraphe 1, h) ci-dessus et a I'Articie 1.4;


h) des pertes de change 6ventuellement subies et qui ne repondent pas


aux conditions pr^vues au paragraphe 1, i) ci-dessus;


i) des pertes de change qui constituent des manques a gagner resultant


des risques Ii6s a I’origine des capitaux propres et a I'autofinancement


tels que prdvus au paragraphe 1, i), 2e alinea ci-dessus.


3 - Doivent venir en deduction des CoOts Petroliers, notamment:





a) le produit des quantiles d'Hydrocarbures revenant au Contracteur en


application des dispositions de I'Articie 24, par le Prix Fixe s'y rapportant


tel qu'il est d6fini & I’Articie 27;


b) le montant des sommes eventuellement pergues au titre de la


recuperation des Couts Petroliers en application des dispositions de


I'Articie 24.3;











66


42$


 c) tous autres recettes, revenus, produits et profits connexes, annexes ou


accessoires directement ou indirectemerrt lies aux Operation Petrolikres


et tels qu'ils sont 6num6r6s dans I'Annexe Comptables.








26.11


L'Accord Comptable, qui fait partie integrante du Contrat, fixe, nonobstant le


silence de celui-ci, la definition, et la nature des depenses constituent des Couts


Petroliers, cedes qui ne donnent pas lieu k recuperation, les limitations du


montant des depenses pouvant donner lieu k inscription au compte des Couts


Petroliers. II fixe ies obligations du Contracteur en matiere de procedures et de


presentation de la comptabilite des CoOts Petroliers et des rapports,


comptes-rendus, 6tats et informations a foumir k I'Administration.























































































































67


42

 ARTICLE 27





VALORISATION OES HYDROCARBURES





27.1


Les quantiles d'Hydrocarbures,


- prelevees au litre de la recuperation des Gouts Petroliers,


conformement aux dispositions de I'Artide 24,


- representant la redevance miniere proportionnelfe visee £ I'Artide


26.1,b.


- Constituant le revenu brut du Contracteur vise £ I'Artide 26.1, e, 2eme


alinea,


- representant la part de production revenant £ I'Etat et commerdafisees,


a la demande de celui-ci, par le Contracteur, en application des


dispositions de I'Artide 25.2;


- livrees dans le cadre de fa contribution a la satisfaction des besoins du


marche interieur, en application des dispositions de I’Artide 35,


- regues en paiement de I'Etat, en application des dispositions de I'Artide


19.4,


sont valorisees en appliquant le prix defini par ('Administration pour les


Hydrocarbures gabonais, appele "le Prix Fixe".


27.2


Le Prix Fixe est determine par rAdministration par reference aux prix offidels des


Hydrocarbures definis par l'Organisation des Pays Exportateurs de P£trote


(O.P.E.P.), en tenant compte des prix du marche international pour les


Hydrocarbures de qualite analogue.





II est calculi valeur F.O.B., chaque semestre civil pour le semestre civil


precedent, sur la base des elements et donnees qui sy rapportent; il est notifie


au Contracteur pour application et regularisations eventuelles


Si aucun Prix Fix£ relatif a un semestre dvil n'a eta notifie au Contracteur, il sera


fait application, £ titre provisoire, du Prix Fixe resultant de la plus recente


notification.











68





427


27.3


Si, pour une periods donn&e, le Prix Fixe applique est superieur au prix du


march6 pour des ventes a des Tiers d'Hydrocarbures provenant de la Zone


d'Exploitation, la difference est recuper6e par le Contracteur, par inscription au


debit du compte des Couts Petroliers. Si, a /'inverse, le Prix Fixe est inferieur au


prix dudit marches, la difference est portee au credit du compte des Couts


Petroliers.


27.4





Le prix du march& vis£ a I'alin6a pr6c6dent est determine selon des modalites a


definir par les Parties; celles-ci se rduniront, d la demands de I’une cfentre elles,


p6riodiquement a cette fin, en fonction de revolution du march6 international des


Hydrocarbures.














































































































69 42S


 ARTICLE 28








BONUS





28.1


Le Contractor verse £ fEtat la somme de cinq cent mille (500*000) dollars des


Etats-Unis cfAmerique le jour de la Date Effective.


28.2


En outre, le Contractor versera a I’Etat la contre-valeur en francs CFA de:





- a) dnq cent mille (500*000) de dollars des Etats-Unis cfAmerique


dbs le debut de la production cfHydrocartxires dans la Zone Delimitee;


- b) deux cent mille (200*000) de dollars des Etats-Unis


cfAmerique lorsque le rythme de la production cfHydrocartoures, dans la Zone


Delimitee, atteint, pour la premiere Ibis, le niveau de vingt mille Barils par jour au


ccxrs cfune periode de trente jours oonsecutifs;


- c) deux cent mille (200*000) de dollars des Elats-Unis


cfAmerique lorsque le rythme de la production cfHydrocarbures, dans la Zone


Delimitee, atteint, pour la premiere fois, le niveau de trente mille Barils par jour


au cours d'une periode de trente jours consbcutifs.


Les montants vises au present Article sont verses dans les trente jours suivant,


pour le premier, la date du debut de la production et, pour les deux autres, la fin


de la pbriode de reference correspondante.





28.3


Les versements vises aux Articles 28.1 et 28.2 ci-dessus ne peuvent, en aucun


cas, etre consideres comme des CoOts Pbtroliers.









































70


423


 ARTICLE 29








MESURAGE ET COMPTAGE DES HYDROCARBURES








29.1


Le Contracteur doit mesurer et compter les Hydrocarbures produits, apres


extraction de Teau et des substances etrangdres.


Le point auquel s’operent te comptage et le mesurage des quanWes





cfHydrocarbures et le point ou sont etablis les instruments, appareils et


installations qui y sont affect&s, doivent obligatoirement 4tre approuves par


I'Administration.


Les agents comp6tents de rAdministration verifient ces mesurages et comptages





et contra tent les installations, instruments et appareils utilises au mans une fois


par trimestre. Si le Contracteur desire modifier ou changer ces installations,


instruments et appareils, il devra en informer!'Administration au mans quinze


jours ouvrables a ravance, de maniere a permettre au repr&sentant de celle-ci


d'etre present tors de cette modification ou de ce changement





Les modifications et changements affectant les points, instruments et appareils


vis£s au 2&me alinea ci-dessus, doivent §tre pr^alablement approuves par


I'Administration.


29.2





Les quantites d'Hydrocarbures ayant servi aux Operations P6trolteres ou


perdues, doivent, pour etre admises en diminution, faire I'objet d'un 6tat mensuel


explicatif ddtaiile transmis a I'Administration.





29.3


S'il est constate que les installations, instruments et appareils utilises par le


Contracteur conduisent a des erreurs par defaut ou par exces, celles-d sont


considerees comme commises depuis la date a laquelle les demiers contrbles


ont ete ou auraient dus etre effectu6s par I'Administration, et ies rectifications


n&cessaires sont alors operees sur cette base.
































71 430


 ARTICLE 30








GAZ NATUREL








30.1


En cas de decouverte de Qaz Naturel, le Contracteur, apres avoir precede aux


Etudes appropriEes et aprEs concertation avec I'Administration, determine si une





exploitation commerciale peut etre entrepnse.


Si la decouverte est dEclaree commerdatement exploitable, toutes les


dispositions du Contrat seront applicables "mutatis mutandis", notamment cedes


relatives au Prix FixE dEfini E I'Article 27, a (a recuperation des Couts Pelroliers


dEfinie E l’Article 24, au partage de la Production Restante defini a TAitide 25,


aux bonus definis E (’Article 28 et aux redevaices et impots enumeres et dEfinis


aux Articles 26.1. et 26.7


Toutefois, pour tenir compte des conditions particulieres cfexptortation du Gaz


Naturel et pour encourager sa mise en valeur, des avaniages particuliers


peuvent Etre consentis au Contracteur lorsqu’Hs sont justifies





Toutes les fois qu'il sera necessaire cfEtablir une Equivalence entre le Gaz


Natural et le Petiole Brut, particuliErement pour Fapptication des modalit&s de


prelevements des quantiles d’Hydrocartxjres au litre de la recuperation des


Couts Pelroliers definies a ('Article 24, du partage de la Production Restante


dEfinie a rArticle 25, ainsi que pour la determination du montant des bonus


definis a I'ArticJe 28.2, >1 est admis que cent soixante-tinq metres cubes de Gaz


Nature sont egaux a un Barit de Petiole Brut. Cette equivalence devra Etre


precfsee cfun commun accord.


30.2


Si le Contracteur estime que la decouverte de Gaz Naturel n'est pas


commerdalement exploitable, il perd tout droit sur cette dEcouverte. L’Etat est,


alors, en droit cfexploiter le Gisement decouvert pour son compte sans avoir a


payer une queloonque indemnite au Contracteur.


30.3





Les quantHEs de Gaz Naturel assode non comrnerdalisEes, E I'exdusion de


ceiles utilisees pour les Operations Petrolieres, doivent servir E amEliorer le taux


de recuperation du Petiole Brut par reinjection, dans le cadre de la mise en


oeuvre de methodes de recuperation assistee, en application des dispositions


de I'Artide 21.4. Le brulage aux torcheres devra Etre limitE au strict minimum; id


Contracteur est tenu de respecter la rEglementation en vtgueur et les


recommandations de I’Administration en la matiere.











72





431


En outre, si I'Etat veut disposer du Gaz Naturel associe produit dans la Zone


d'Exploitation et non commercialise ou utilise par le Contracteur dans les


conditions dpfinies ci-dessus, les Parties arrSteront, d'un commun accord, toutes


les mesures techniques supplementaires qui pourraient Stre necessaires pour


permettre la livraison et ('utilisation de ce Gaz Naturel.


Toutes les expenses et tous les frais, y compris les frais gen6raux, relatifs au





travail effectue par le Contracteur, ses contracteurs ou sous-traitants, concemant


f'enlevemerrt du Gaz Naturel par I’Etat, ne seront pas consideres comme faisant


partie du cout des Operations Petrolieres, mais seront imputes a I’Etat qui devra


en regler le montent au Contracteur confbrmement aux termes acceptes d’un


commun accord par les Parties.








































































































73 432


 ARTICLE 31








CONTROLS DES CHANGES











31.1


Le Contrat est regj par la reglementation relative au controle des changes en





vigueur.


31.2





Aucurte restriction ne sera apportee a 1'importation, par le Contracteur, des fonds


destines k la realisation des Operations Petrolieres.


31.3


Le Contracteur aura le droit de convertir librement ses avoirs au Gabon, en





devises convertibles et cfexporter, sans faire fobjet de discrimination, les fonds


detenus par lui excedant ses besoins locaux.


31.4





En outre, le Contracteur ne sera pas tenu d" importer les fonds destines a faire


face a des paiements echus a effectuer a i'etranger et necessrtes pa* des


Operations Petrolieres.













































































74 433


 ARTICLE 32








EXEMPTION DE LVBLfGATJON RELATIVE AUX BONS DEQU/PEMENT ET


AUX CERVHCATS D1NVEST1SSEMENTS








Eu egard a rimportance des investissements devant etre revises par le


Contracteur, ceM-ci est exempte, pendant ia duree du Contrat, des obligations





relatives aux bons cfequipement et certificats d'investissemente prevues


respectivement par les ordonnances n° 3/63 du 24 janvier 1963 et n° 36/67 du


leraout 1967.























































































































76 434


 ARTICLE 33








METHODE DE COMPTABIUTE ET UNITE M0NETA1RE U71USEE POUR LA


TENUEDES COMPTES








33.1


Les registres et livres de comptes du Contracteur sont tenus conformement au


Plan Comptable General des Entreprises en vigueur au Gabon et, en ce qui


concerns les Couts Petrol iers, a I’Accord Comptable, mdme dans le cas ou les


dispositions de celui-d ne figurent pas dans le Contrat Les originaux desdits


registres et livres de comptes, ainsi que de toutes les pieces justificatives, seront


conserves au Gabon et represented a ('Administration sur simple demande de


celle-ci.


33.2


Les registres et livres de comptes relatifs aux Operations Petrolieres sont tenus


par le Contracteur en langue franpalse et en dollars des Etats-Unis cfAmerique.


Ms sont utilises pour determiner le revenu brut, les frais Sexploitation, les


r6sultats nets et pour etablir la declaration tfimpot Ces dispositions sont


6galement applicables a la tenue du compte des Couts Patrol iers vise a rArticle


26.9 et dans I'Accord Comptable.


Le Contracteur est tenu cfindiquer et de justjfier la monnaie rforigine utilisee


pour les Operations Petrolieres et les taux de conversion retenus pour la tenue


des registres et livres de comptes et du compte des Couts Petroliers.


33.3


Toutes les fois qu'il est necessaire de converter en francs CFA les depenses ou


les recettes exprimees dans une autre monnaie, les taux de conversion utilises


seront egaux a la moyenne arithmetique des cours journal iers de ddture a la


vente de factrte monnaie retenus par la Banque des Etats de CAfrique Centrale


(B.E.A.C.) au cours du mois ou les depenses ont et6 payees ou les recettes


encaissees. En attendant que soil connue la moyenne arithmetique du mois


considers, le Contracteur utilise, a titre provisoire, la moyenne arithmetique du


mois precedent


En cas de devaluation ou de reevaluation offidelle au cours dun mois dome, i!


est fait application de deux moyennes arithmetiques, la premiere cakxilee sur la


base des cours joumaliers de ddture a la vente pour la periode allant du premier


jour du mois jusqu*au jour, non compris, de ladite devaluation ou devaluation, la


seconde sur la base des cours joumaliers de cloture a la vente pour la periode


allant du jour, inclus, de ladite devaluation ou reevaluation, jusqu'au dernier jour


du mois considere.











76


 ARTICLE 34





REGIME DOUANIER ET DOCUMENTS DTMPORTATION ET


DEXPORTATTON








34.1


Pendant la duree du Contrat, le Contracteur beneficie des avantages douaniers


ci-aprfes:


- a) Dans les conditions prevues par le Code des Douanes, ('importation


sous le regime de ('admission temporaire (normale ou speciale, selon le cas) par


le Contracteur lui-mSme, par des Tiers pour son compte et par ses


sous-traitants, de tous matdriels, materiaux, produits, machines, equipements et


outillages necessaires aux Operations Petrolieres qui ne sont pas propriete de


I'Etat en vertu des dispositions de I'Article 10.1, sous reserve du respect des


dispositions de ('Article 10.3 et a condition que ces biens soient necessaires,


exclusivement destines et effectivement affectes aux Operations Petrolieres et


qu'ils soient appetes a dtre reexportes a la fin de leur utilisation.


- b) Admission en franchise de tous droits et taxes d'entr6e, des


materiels, materiaux, produits, machines, equipements et outillages


exclusivement destines et effectivement affectes a la projection et a


I'exploration petroliere sur la Zone Delimits© et figurant sur la liste reprise a


I'Annexe II I'acte n° 13/65-UDEAC-35 du 14 decembre 1965 et des textes


modificatifs subsequents.


Cette franchise s'applique aux importations effectives directement par le


Contracteur lui-meme, par des Tiers pour son compte et par ses sous-traitants,


sous reserve de produire un certificat d'utilisation finale.


- c) Sous les memes conditions que ci-dessus, admission au taux global


reduit & 5 % des droits et taxes per$us a I'importation, des materials, materiaux,


produits, machines et outillages d'dquipement qui, n'entrant pas dans la


categorie des biens vises aux paragraphes a et b ci-dessus, sont necessaires,


destines et affectes a la production, au stockage, au traitement, au transport, £


{'expedition et a la transformation des Hydrocarbures de la Zone cfExploitation et


& condition qu'ils figurent dans un programme de d&veloppement approuve.





























77


le benefice du taux r&Juit est accorde par le Directeur General des Douanes et


Droits Indirects, a la demande du Contracteur,





- sur production cfun programme general ^importation,


- ou a la suite de demarches particulieres (^admission au benefice du





taux reduit, effectu^es par le Contracteur au moins quinze jours avant


rarrivee des biens concemes.





Ces demandes doivent preciser


- (a denomination commerciale des biens et la rubrique taifaire sous





laquelle ils sont places,


- les quantites et leir valeur FOB et GIF.





- d) Les effets et objets mobiliers k usage personnel et domestique


imports par le personnel etranger du Contracteur affecte aux activity entrant


darts le cadre de la realisation des Operations Petrolieres, a foccasion de son


changement de residence, sont admis en franchise dans les conditions et limites


frx6es par le Code des Douanes, notamment par les articles 17 a 20 de fActe


13/65-UDEAC-35 du 14 decembre 1965.





34.2


Le Contracteur, les Tiers importateurs pour son compte et ses sous-traitants,


s’engagent k ne proceder aux importations necessaires a la realisation des


Operations Pdtrolieres que dans la mesure ou les biens concemes ne sont pas


disponibles au Gabon k des conditions similaires de prix, de qualite et de d6lai


de livraison.





34.3


Les biens autres que ceux indiques par les dispositions d-dessus sont south's


aux droits et taxes pergus par {'Administration des Douanes suivant le regime de


droit commun.


34.4


Sous reserve du respect de leurs obligations en matiere douaniere, telles


qu'elles decoulent des Articles 34.1 a 34.3 et de ta regimentation en vigueur, le


Contracteur, ies Tiers importateurs pour son compte et ses sous-traitants


pourront reexporter, en exoneration de tous droits et taxes, les biens importes


dans le cadre des dispositions de ('Article 34.1, a, des qu'ils ne sont plus


necessaires aux Operations Pdtrolieres.




















78 437


34.5


Toutes les importations, exportations et reexportations effectuees dans le cadre


du Contrat sont soumises aux formalites requises par I’Administration des


Douanes.


34.6





Le Contracteur est, vis a vis de rAdministration des douanes, conjointement et


solidairement responsable, avec les Tiers importateurs pour son compte et ses


sous-traitants, de tout abus reieve a rencontre de ceux-d dans ('usage du


benefice des dispositions du present Article. Les amendes, (es penalites et les


paiements de toute nature dont ils seraient passibles de ce chef ne constituent


pas des Couts Petrol iers.


34.7





Toutes les operations de dedouanement effectuees dans le cadre du Contrat


sont soumises aux dispositions de fordonnance n° 20/87 du 24 octobre 1987.


































































































79 438


 ARTICLE 35








CONTRIBUTION A LA SATISFACTION DES BESOINS DU MARCHE


INTERIEUR








35.1


Le Contracteur est tenu de contribuer a la satisfaction des besoins du marchO


interieur en livrant a I'Etat, ou aux organismes cfOsignOs par celui-ci, une quantity


d’Hydrocarbures proportionnelle 0 sa part de production lui revenant en


application des Articles 24.2 et 25. 1, par rapport a la production totale du


Gabon. La quantite a livrer sera determinOe avant la fin de chaque Annee Civile,


pour I'Annee Civile suivante, sur la base des provisions de production et des


besoins du marche interieur pour TAnnee Civile consideree. Les ajustements


nOcessaires seront o peres dOs que les dormees definitives sont connues.


35.2


Le prix de cession par le Contracteur de la quantite d’Hydrocarbures destinee a


la satisfaction des besoins du marche intOrieur est egal aux Prix Fixe assorti d*un


abattement de vingt-cinq pour cent. II est payable en francs CFA. L'abattement


susvise est impute au Compte des Couts Petroliers.


35.3


Les Hydrocarbures cedes dans le cadre des dispositions du present Article sont


livrOs par le Contracteur au lieu d'utilisation ou de consommation designe par


I'Administration, en utilisant les moyens de transport disponibfes et habituels.

































































80


 ARTICLE 36





EXPORTATION DES HYDROCARBURES, TRANSFER! DE PROPRIETE ET


REGLES DEMISE A DISPOSITION








36.1


Sous reserve du respect de la reglementation en viguetr, le Contracteur, ses


clients et leurs transporteurs auront, pendant la duree du Contrat, le droit


tf exporter, par le point cfexportation approprie, la part cTHydrocarfoures a


laquelle le Contracteur a droit en vertu du Contrat, diminuee des livraisons faites


au titre de la contribution a la satisfaction des besoins du marche interieiff


prevue a I'Article 35.





36.2


En faveur du Contracteur, le transfert de propriete de la part cfHydrocarbures


susvis£e s'opere au moment ou if dispose effectivemerrf de cette part If est


cependant tenu de contractor, des que la production est r£alisee, toutes


assurances n£cessaires en vue de couvrir tous dommages, pertes ou prejudices


qui pourraient survenir et affecter les Hydrocartxres.





Pour les besoins de la comptabilite des Couts Petroliers, les prelevements


cfHydrocarbures susvises sont presumes s'operer a la fin de chaque mois civil


pour les quantity sorties au cours dudit mas, des installations de stockage vers


les canalisations d'evacuation ou les installations de chargement pour


I'exportation.


En cas d'exportation par navire petrolier, le transfert de propriete s'opere au


franchissement du point de raccordement au navire des installations de


chargement.


Le transfert de propriete des quantltds d'Hydrocarbures o£d6es par le





Contracteur au titre de la contribution k la satisfaction des besoins du marchd


int6rieur, s'opere CIF lieu d'utilisation, a I'entr6e des installations de stockage


des organismes attributaires de ces quantiles.





36.3


L'Administration designe une entreprise ou des experts qu'elle charge de


surveiller, d'inspecter et de controler les enlevements d’Hydrocarbures et la


gestion du terminal de chargement et de ses installations.


Les frais entratnes par ces operations sont rembours6s k ('Administration par le


Contracteur qui les inclut dans les Couts Petroliers.

















81 440


36.4


Les Parties se concerteront periodiquement pour arrfeter le programme


previsionnel de leurs enlevements et feront de leur mieux pour effectuer des


chargements conjoints, si cela s'avfcre nScessaire, pour Sviter des situations de


Sur-Enlevement ou de Sous-Enl6vement de I’une 4 regard de Cautre.


Des qu’une quantite d'Hydrocarbures disponible en stock au point d'exportation


est suffisante pour assurer ie chargement de navires patrollers, les premiers


chargements sont effectues pour le compte de I'Etat. Le Contracteur dispose


ensuite des Hydrocarbures pour tes chargements suivarrts, jusqu'a ce qu'une


situation de Sous-Enlevement soit cri6e au detriment de I’Etat.


Les chargements suivants seront effectues pour le compte de la Partie qui est en


situation de Sous-Enldvament.


Toutefois, si I'une des Parties ne peut erHever en temps utile sa part de





production, Tautre Partie aura la faculty d’en disposer, a charge pour elle de


restituer, plus tard, d la Partie qui n'a pas pu enlever sa part une quantite


dquivalente d'Hydrocarbures.





Les modalit&s pratiques d'application des dispositions du present Artide


peuvent, £ tout moment, faire I'objet d'am^nagements convenus entre


('Administration et le Contracteur, notemment dans le cadre dun accord


d'enlevement et de mise & disposition.






























































82


441


 ARTICLE 37








PROTECTION DES DROITS











37.1


Le Contractor prendra toutes les mesures necessaires pour atteindre les





objectifs du Contrat, dedommagera et indemnisera convenablement tes Tiers


pour tout prejudice ou dommage que kit-meme, ses employes, ses


entrepreneurs sous-traitants et feus employes pourraient causer £ leur





persome, a leurs biens ou a leurs droits a I'occasion des Operations Petrolieres.


II assume la responsabilite civile de tout dommage, perte ou prejudice subis par


des Tiers resultant de ses ou de leurs erreurs, fautes ou negligences, et devra


supporter toutes les reparations et dommages-inter$ts eventuellement dus


37.2


L'Etat prendra toutes les mesures necessaires et possibles pour faciliter les





Operations Petrolieres, la realisation des objectifs du Contrat et pour proteger


les biens et les droits du Contracteur, de ses employes et agents sur le territoire





national et ses dependances


37.3


A la demande du Contracteur et sur justification de celui-ci, ('Administration peut





interdire la construction de b&timents a usage cFhabitation ou professiomel a


proximite des installations dangereuses en raison des Operations Petrolieres, et


prendra les dispositions necessaires pour interdire le mouillage et le passage a


proximite des canalisations immerg^es et mettre fin a toute entrave & I'utilisation


de toute installation necessaire aux Operations Petrolieres a terre ou en mer.
























































442


83


 ARTICLE 38








PERSONNEL








38.1


Le Contracteur est tenu, pour la realisation des Operations Petrolieres,


cTemployer, dans toute la mesure du possible, la mafo-d1 oeuvre nationals dans


une proportion minimale de soixante-quinze pour cent de son effectif total. Du


personnel specialise et qualifie poura etre engage hors du Gabon s'il n'est pas


disponible dans le pays.





Le Contracteur est tenu (J informer les Services charges des Hydrocarbures des


posies disponibles et des demarches faites en vue du recrutement de Gabonais.


38.2





L'Administration competente delivre, conformement a la r6glementation, les


pieces necessaires a rentree au Gabon du personnel etranger, teltes que visas,


cartes de travail et de sejour. Le Contracteur effectue les demarches


necessaires a cet effet.





A la requete du Contracteur, lAdministration peut mtervenir pour fadliter les


formalites cfimmigration aupres des services competents, aux points cfentree et


de sortie des employes du Contracteur, de ses entrepreneurs, sous-traitarrts,


agents, ainsi que de leur famille.


38.3





Les employes travaiilant dans le cadre des Operations Petrolieres etant sous


I’autorite du Contracteur ou de ses entrepreneurs, sous-traitants et agents, en


leur quality cfemployeurs, leur travail, nombre d'heures, salaires et toutes autres


modalites relatives a leurs conditions d'emploi, sont determines par ces demiers,


confonrtement aux legislations du travail et sociale en vigueur.


38.4


Le Contracteur est tenu, en concertation avec I’Adminlstration, de former et


d'assurer la promotion de ses employes gabonais. Le Comite Technique


Consultatif est informe des modaiites at conditions d'application de la presente


disposition.


























84 443


 ARTICLE 39








FORMATION DE GABONAIS AUTRES QUE CEUX EMPLOYES


PAR LE CONTRACTEUR





39.1


Outre ('obligation prevue a /‘Article 38, le Contracted est tenu be contribuer a la


formation dautres Gabonais designes par r Administration, en consacrant a cette


formation, pendant toute la duree du Contrat


- a) soixante mille dollars des Etats-Unis cfAmerique par Annee Civile


pendant la periode precedant la mise en production;





- b) cent mille dollars des Etats-Unis cfAmerique par Annee Civile des fe


debut de la production.


Les contributions definies aux paragraphes a, b et c d-dessus sont affectees:


- pour partie, a la formation de Gabonais dans des ecoles





supdrieures ou des trvversrfos de renommee Internationale; le


programme de formation est etabli par rAdministration chargee


des Hydrocarbures;


- pour partie, a (a formation "sur le tas" de Gabonais sur les


chantiers et dans les principaux centres d'activites du Contracteur,


les conditions de cette formation sont arretees cas par cas d'un


commun accord;


- pour partie, a la formation, £ I’exteneur des structures du


Contracteur, sous forme de participation a des seminaires ou de


d&achements aupr&s d'autres soci6tes, de Gabonais choisis par


I'Administration.


Les moda!it6s de versement des sommes prevues au present Article sont


arrStees d'un commun accord entre I'Administration et te Contracteur, en


fonction des priorit6s nationals.


39.2


Les contributions prdvues au present Article sont incluses dans les CoOts


Petroliers.




















85


444


 ARTICLE 40








RAPPORTS D’ACTMTES EN PERJODE DE DEVELOPPEMENT ET


SEXPLOITATION








40.1


Sauf dispositions particulieres, les dispositions de rArticle 11 du Contrat


concemant les documents e! les donnees se rapportant aux travaux


^exploration, les rapports cfactivites et autres informations, sont applicables,


"muiatis mutandis”, aux travaux de developpement, cfexploitation, de transport et


de stockage.


40.2


Les rapports cTactivft£s doivent comporter, en outre, un etat de la production


realisee au cours du mois preo&Jerrt, ainsi qu’un 6tat des quantites


d'Hydrocarbures vendues, au cours de ce mois, par le Contracteur, tant pour son


compte que, le cas echeant, pour le compte de TEtat, en application des


dispositions de PArticle 25.2; fetat des quantites vendues indique les references


du contrat de vente, le nom de facheteur, les quantites vendues, le prix unitaire,


le montant total de la vente, les caracteristiques des Hydrocarbures vendus et le


pays de destination finale.





40.3


Les rapports cfactivites doivent comporter 6galement:


- a) les renseignements concemant toutes les operations de





developpement, de production et cfexploitation de I'Arm^e Civile concem6e,


ainsi que les quantites totales cfHydrocarbures produKes et celles vendues;





- b) les renseignements concemant toutes les operations de transport,


ainsi que I1 emplacement des principales installations construites par le


Contracteur;


- c) un €tat mentionnant le nombre cTemployes, leur qualification, leur





nationalite, le montant total de leurs salaires, et {'instruction qui leur est


dispensee, ainsi qu'un rapport sir les services et equipements medicaux mis a


leur disposition;





- d) un etat descriptif de toutes les immobilisations acquises ou cr§ees,


avec indication de la date et du prix cTacquisition ou de revient

















86 44l>


40.4


Chaque entreprise constituant le Contra cteur transmet, egalement, a


('Administration chargee des Hydrocarbures, au plus tard le 30 avril de chaque


armee, un exemplaire de sa declaration statistique et fiscale prevue a I'Article


26.5 et des documents et renseignements qui doivent y etre joints.


40 5


Le Contracteur infbrme, par ecrit, rAdministration des Hydrocartx*es, dans les


plus trefs d$lais, de tout dommage, de quetque nature qu'il soil, cause aux


Gisements ou aux installations de production. II prend toutes les mesures pour y


rem^dier et proc£der aux reparations necessaires.


40.6


Les dispositions de TArtide 11.5 s’appiiquent "mutatis mutandis" a tout document


ou echantillon relatif aux operations de developpement, cTexploitation, de


transport et de stockage, et les Pities sont soumises aux memes obligations.































































































87


 ARTICLE 41








PAIEMENTS








Le produit des ventes d'Hydrocarbures, effedudes par I'une des Parties pou S’ S-


compte de I'autre, doit dtre vers6 dans les trente jours suivant la date


I'enlevement, sauf accord contraire des Parties destine a tenir compte


conditions particudidres de commercialisation.


Tout autre paiement a FEtat doit 6tre effectue a Techeance, sauf dispositions


contraires du Contrat.


Les cessions d'Hydrocarbures faites dans le cadre de la contribution a la





satisfaction des besoins du marche rnterieur, prevue a FArtide 35, sort reglees


dans les quatne-vingt-dix jours suivant la date de fin de livraison.
















































































88 447


 ARTICLE 42








CESSION D1NTERETS








42.1


Chaque entreprise const ituant le Contracteur pourra ceder tout ou partie de ses


interns decoulant du Contrat a de$ Tiers, si la bonne reputation technique et


financiere de ceux-d est bien etablie; les cesskxmaires deviennent ators


conjointement et solidairement responsables, avec les autres entreprises


constituant le Contracteur, de ("execution du Contrat Les droits et obligations du


cedant attaches a la part des interets ainsi cedes, sont integralement transferes


aux cessionnaires.


Cependant, apres la mise en production, TEtat dispose Jm droit de preference





sur les cessions prevues d-dessus dans les conditions et suivant les modalites


indiqufees ci-apres. II se substitue alors aux Tiers acheteirs aux memes termes


et conditions.





42.2


Avant qu'une cession a des Tiers ne devienne effective, le cedant doit obtenir


I'agrement de I'Administration. Ledit agrement ne peut etre refuse sans motif


valable. A cet effet, il est tenu

nom, qualite et nationalite des acquereurs, toutes indications relatives a leurs


capacitfes financiferes et techniques, a leur statut juridique, ainsi que les


modalitfes et conditions finandfefes de la cession prqjetee, et de communiquer


une copie certifiee conforme du contrat de cession, signe et passe sous la


condition suspensive de fakement et du non exerdce par I’Etat du droit de


preference prfevus a rArticle 42.1.


Si I'Administration ne sV oppose pas par ecrit dans un delai de trente jours


suivart la date de reception des informations susvisees et si CEtat n'exerce pas


le droit de preference prevu a rArticle 42.1 dans le meme delai de 30 jours,


I'ayement est repute acquis.





42.3


Si, du fait cfune cession partielle de ses interets, le cfedant realise un profit


financier, celui-ci vient en deduction des Couts Petrol iers Si la cession porte sir


la total ite de ses interets, le cedant est soumis, a raison du montant de ce profit,


a rimpot sur les Sodetes, dans les conditions de droit commrn.




















448


89


Pour ('application de I’alinea precedent, on entend par profit financier la


difference, si elle est positive, entre le prix de la cession et le montant non


reevalue des Couts Petroliers non encore recuperes par le cedant et calcules,


en cas de cession partielle, pro portion nellement au pourcerrtage cfinterets


cedes. Le cedant communique a ('Administration toutes les informations de


nature a permettre a celle-ci de determiner ce profit.


Lorsque, en cas de cession partielle, le prix obtenu est irrferieur a la quote-part


des Couts Petroliers non r§cuperes affetWits a la participation c6dee, le cedant


n'enregistre, en diminution, dans sa comptabilite que ladite quote-part des CoGts


Petroliers; il perd tout droit a recuperation de la moins-value amsi subie.


Le cessionnaire reprend, dans sa comptabilite, soit les Couts Petroliers non


recuperes par le cedant afferents a la participation acquise, soit le prix effectif


cfacquisition si celui-d est inferieur auxdits CoGts Petroliers non recuperes par le


cedant.





Le cessionnaire ne peut, en aucun cas, indure dans les Couts Petroliers le cout


correspondant au profit vise cklessus qu'il aura paye au cedant et ainsi


supports par lui.


42.4


Chaque entreprise consbtuant le Contracteur peut cSder, librement et S tout


moment, tout ou partie de ses interets decoutant du Contrat, a une ou piusieurs


SociStSs AffiliSes ou aux autres entreprises constituant le Contracteur. Le cSdant


est, cependant, tenu cfen informer pa* Scrit ('Administration. Ces cessions ne


doivent, en aucun cas, Stre de nature a porter prejudice aux interSts de I’Etat, a


gener la realisation des Operations Petrolieres ou a reduire les capadtes


techniques et finanderes du Contracteur. Si I'Administration estime que tel est le


cas, elle peut s'opposer h ces cessions. En outre, I'engagement vise a I’Artide


46.2 couvre, ipso facto, la Societe Affiliee cessionnaire.


Les dispositions de I'Article 42.3 s'appliquent aux cessions rSalisees dans le


cadre du present Artide.


42.5





Les cessions realisees en vkriaticxi des dispositions des Articles 42.1 a 42.4 sont


nulles et de nul effet.





























449


90


 ARTICLE 43








APPLICATION DU CONTRAT








43.1


Sous reserve des dispositions de I'Article 43.4, I'Etat garantit au Contracteur,


pour la dur6e du Contrat, la stability des conditions 6conomiques et financieres


teiles qua ces conditions resultant du Contrat et d© la rSglementation en vigueur


& la Date Effective.


Les obligations decoulant du Contrat ne poutront pas 6tre aggravees, et





l'6quilibre general et global du Contrat ne sera pas affects de maniere notable et


durable pendant la duree de celui-ci, Cependant, des amenagements ou des


modifications de ses dispositions pourront Stre decides d’un commun accord.


43.2


Les Parties sont d’acoord pour cooperer de toutes les manieres possibles afin


d'atteindre les objectifs du Contrat. L'Administration facilitera au Contracteur


I'exercice de ses activites en lui accordant tous permis, licences, droits (faeces


ndeessaires en mettant a sa disposition toutes les fadlites et tous les services


appropri£s existants, de fagon que les Parties puissent retirer le meilieur profit


d'une cooperation mutuelle sincere. Toutefois, le Contracteur est tenu de se


conformer aux procedures et aux formalites d'usage et de s'adresser aux


services comp6tents de rAdministration pour obtenir les agrSments et


autorisations necessaires. II est tenu d'informer les Services charges des


Hydrocarbures des demarches, contacts ou correspondences qu'il effectue et


entretient aupres ou avec les autres services de I'Administration.


43.3





Toute nationalisation ou expropriation totale ou partietle des droits du


Contracteur donne lieu & indemnisation juste et Equitable conform^ment aux


regies et principes intemationalement reconnus.


43.4





Les termes et conditions du Contrat ne peuvent etre modifies que par 6crit et


d'un commun accord.



































91 450


 ARTICLE 44








SANCTIONS ET DECHEANCE








44.1


La violation, par le Contracteur, des dispositions du Contrat est susceptible


cfentraTner la rtsiliation de celui-d par rAdministration si, apres mise en


demeure adressee au Contracteur, conformement aux dispositions de rArticle


48.10, (favor a mettre un terme a cette violation et, s’il y a lieu, tfoperer les


rectifications, ajustements et nedressements demandes, ceHii-d n'a donne


aucune suite a la demands de PAdministration. La resiliation est prononcee par


decret


44.2


Sans prejudice des sanctions pgnaies prevues par la reglementation, les


violations ct-dessous du Contrat entrainent sa resiliation de plein droit, apres


mise en demeure non suivie cTeffet dans les quinze jours de la reception de


celled:


- a) refus de communiquer a rAdministration, dans les d£lais imparts, les


informations prevues aux les Articles 5, 8.7,11, 20.1, 21.1, 21.5, 26.5, 26.9, 33,


40 et 48;


- b) ddfaut de paiement, dans les d€lais imparts, des bonus et





redevances, dans les conditions et selon les modalitds d6finies aux Articles 26.1,


b, 26.1, c et 28, ainsi que des sommes prevues h rArticle 39.1;





- c) defaut de paiement, dans les delais, du produit de la vente de toute


quantity d'Hydrocarbures revenant d I'Etat au titre de sa part de production,


lorsque le Contracteur en assure la vente, en application de I'Article 25.2.


- d) defaut de livraison a I'Etat de sa part de production en nature, en


application de I'Article 25.2, ou de la redevaxe miniere proportionnelle en


application de ('Article 26.1, b;


- e) suspension ou restriction, sans motif legitime, de I’activite


(fexploitation du ou des Gisements decouverts dans la Zone Delimitee.





Pour I'application des dispositions du paragraphe pr6c6dent, les modifications


liees aux facteurs economiques, tels que les variations affectant le marchd


international des Hydrocarbures, ne peuvent 6tre invoqu6es comme constituant


un motif legitime.














92 451


44.3


La decision de i'Administration de r^silier le Contrat, en application des


dispositions des Articles 44.1 et 44.2, est notifiee par ecrit au Contracteur;


celui-ci est dechu de tous ses interets decoulant du Contrat et perd le droit de


recuperer ses Couts Petroliers,





44.4


La resiliation du Contrat n'a pas pour effet de liberer le Contracteur de ses


obligations contractueiles nees avant la resiliation du Contrat et qui ne seraient


pas encore honor£es a la date de ladite resiliation.























































































































452


93


 ARTICLE 45








OPERA TJONS POUR LE COMPTE DE L'ETAT








45.1


Si, au cours des periodes cfexploration prevues a rArticle 3,1'Etat veut, pour un


forage dome, reconnaltre et tester des niveaux geologiques plus profonds que


ceux proposes par le Contracteur ou prevus a rArticle 4, it demands au


Contracteur de poursuivre ledit forage jusqu'a ces objectifs, aux frais et risques


de I'Etat. A cet effet, I1 Administration adresse au Contracteur une demande ecrite


qui doit parvenir £ ceiui-ci, autant que possible, avant le commencement du


forage ou, & d6faut, au cours de celui-ci, mais en aucun cas apres le debut des


operations de completion ou cfabandon du puits.





La demande susvisee fixe le deiai au-dela duquel le Contracteur est repute avoir


refuse.


L’Etat peut egalement faire appei, a ses risques et frais, & une entreprise tierce





pour r6aliser, pour son compte et selon des conditions qu'il fixe tibrement,


Tapprofondissement du puits.


45.2


Le Contracteur pourra decider, avant le commencement des operations


d'approfondissement du puits, de prendre a sa charge le financement de ces


operations; dans ce cas, les d£penses correspondantes sont inciuses dans las


Couts Petroliers et toute decouverte d'Hydrocarbures en resultant est ators


consideree comme faite dans le cadre du Contrat.


45.3





Si I’approfbndissement d'un puits, realise aux frais et risques exclusifs de I'Etat,


conduit a une decouverte d'Hydrocarbures, I'Etat a seul le droit de developper et


d'expioiter cette decouverte et de disposer des Hydrocarbur