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ContractDate Posted: 2009-08-18 13:08:06
Will Force Majeure periods be granted in the event of hostilities affecting the ability of operators to safely conduct field activities?
Answer
Date Answered: 2009-08-18 13:08:48
The conditions that can be considered force majeure are defined in the Contract:
EPSC Article 30.1: “Except as otherwise provided in this Article, each party shall be excused from complying with the terms of this Contract, except for the payment of monies due, for so long as such compliance is prevented by strikes, wars (declared or undeclared), acts of God or by any act or cause that is reasonably beyond the control of such party”.
EPSC Article 30.2 clarifies that: “The Parties agree that the political and security conditions prevailing in the Contract Area in particular and in the Islamic Republic of Afghanistan in general on the Effective Date shall not constitute Force Majeure for either Party”. This second paragraph did not appear in a previous version of the Model EPSC.
EPSC Article 30.1: “Except as otherwise provided in this Article, each party shall be excused from complying with the terms of this Contract, except for the payment of monies due, for so long as such compliance is prevented by strikes, wars (declared or undeclared), acts of God or by any act or cause that is reasonably beyond the control of such party”.
EPSC Article 30.2 clarifies that: “The Parties agree that the political and security conditions prevailing in the Contract Area in particular and in the Islamic Republic of Afghanistan in general on the Effective Date shall not constitute Force Majeure for either Party”. This second paragraph did not appear in a previous version of the Model EPSC.