NATIONAL OIL CORPORATION

2004


NATIONAL OIL CORPORATION Exploration -IV) Exploration & & Production Production Sharing Sharing (EPSA (EPSA-IV)

Here is few other example of EPSA-IV: 1-The term of the Agreement is now composed of two separate periods. An exploration period and an exploitation periods. The Exploitation period extends for 25 and 30 years for crude oil & liquids HC production and natural gas respectively.


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The exploration period can be extended under certain conditions as illustrated below;
extensions
Appraisal

The exploration period

to decide commerciality

Drilling

Lack of Gas market


NATIONAL OIL CORPORATION

EPSA-IV Management; 1- Petroleum operation will be conducted under the control and supervision of a management committee which will be appointed soon after ratification. 2- The management committee will make all important decisions such as work programs and budgets.


NATIONAL OIL CORPORATION

EPSA-IV Management; 3- All decisions shall be made unanimous vote of its members. by


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Operatorship; 1- During exploration period, a general manager appointed by the Foreign company who will manage the day to day operation under the control and supervision of the management Committee which Committee shall make its decision unanimously. 2- As soon as a commercial discovery is declared, the Operatorship shall be transferred to jointly owned company.


NATIONAL OIL CORPORATION

Operatorship; 3- the management will composed of three members appointed by the parties to the EPSA and shall make all decisions by simple majority vote of its members.


NATIONAL OIL CORPORATION Fiscal -IV) Fiscal terms termsand andwinner winnerselection selectionfor for(EPSA (EPSA-IV)

Bonus
The EPSA-IV requires payments of three types of bonus.
1- A signature Grant which will be a secondary bidding parameter in the form of {B} x amount. 2- A commercial discovery bonus (fixed value).


NATIONAL OIL CORPORATION Fiscal -IV) Fiscal terms termsand andwinner winnerselection selectionfor for(EPSA (EPSA-IV)

Bonus
AND
3- A cumulative production bonus. Payable upon achieving certain cumulative production.

Note that all Bonuses are non recoverable


NATIONAL OIL CORPORATION Fiscal -IV) Fiscal terms termsand andwinner winnerselection selectionfor for(EPSA (EPSA-IV)

NOC is responsible to discharge such tax and royalty and an official receipt from relevant authority will be issued.


NATIONAL OIL CORPORATION

Arbitration; 1- Any arbitration under the EPSA will conducted in accordance with ICC rules. 2- Ruling will be binding on the parties.


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Abandonment and site restoration; 1- Abandonment of all wells and facilities will be an obligation on the parties. 2- All costs related thereto will be share equally. 3- Funding will be through an escrow account arrangement to be set up during production.


NATIONAL OIL CORPORATION

Gas clause 1- A revised gas clause, clearly sets up the rights and obligations of each party. 2- Domestic gas prices are linked to the international market prices. 3- Since market demand drives development strategy and decision, NOC has linked market availability with further appraisal and development.


NATIONAL OIL CORPORATION

Gas clause 4- Domestic and international marketing will be made jointly. gas