Minerals Report - International Seabed Authority

explorations may continue concurrently without prejudice to relinquishment
provisions.
Relinquishment: On or before the end of the initial 3 years as from the
effective date, the contractor shall relinquish 25 % of its original contract area.
On or before the end of the initial 6 years, the contractor shall relinquish a
further 25 % of the original contract area. On or before the end of the 10 th
year, the contractor shall relinquish another area so that thereafter the area
shall not be more than. Km2 (subject to negotiation), or 20 % of the original
contract area, which ever is less. In the remaining area (the 20 % or less)
Pertamina and the contractor “shall maintain a reasonable exploration effort”.
If contractor during the 2 consecutive years does not submit exploration
programs, Pertamina may require the contractor either to submit an
exploration program or to relinquish such part of the contract area. The
contractor and Pertamina shall maintain close consultations with regard to the
relinquishment of any portion of the contract area.
Work programme and expenditures: The contractor shall commence
petroleum operations not later than 6 months after the effective date. The
contractor shall declare the minimum amount to be spent on the programme
of explorations to be carried out for the first 6 years and petroleum operations
for the further next 4 years, altogether specifying programme and minimum
expenses for the 10 years (firm commitment) in US dollar. The actual amount
spent each year can be calculated for the next year. 3 months prior to the
beginning of each calendar year, the contractor shall submit to Pertamina a
work programme and budget for that calendar year. Pertamina, within 30
days, may request or propose revisions to the programme and the budget
after which Pertamina and the contractor shall consult to reach agreement.
Changes in the detail programme are allowed during the year provided they
do not change the general objective of the work programme. Approval of the
work programme and the budget will not be unreasonably withheld.
Rights and obligations of the parties: During the first. Contract years
(negotiable), the contractor shall not have the right to sell, assign, transfer,
convey or otherwise dispose of all or any part of its rights and interest to other
than its affiliated company. The contractor shall have the following
obligations:
INTERNATIONAL SEABED AUTHORITY 858