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ContractDate Posted: 2009-08-28 07:08:20
If the Initial Commercial Production has not occurred because of nothing but the absence of gas transmission and using network against willingness of the contractor on producing, could the contract negotiations on new additional period as such be permitted. Could the contractor adds the assumption on the bid? Could the contractor negotiate with the GoA and amend the EPSC on the relational contents？
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Date Answered: 2009-08-28 07:08:21
The Ministry agree that development of a market for gas from Sheberghan will be a very important factor in the development of the gas fields in question. The Ministry is looking forward to assisting the successful bidder in this task.
As previously stated, Exhibit F and H are the only negotiable parts of the EPSC. The remainder of the Model EPSC is not to be modified or amended beyond insertion of company name of Contractor and other similar identifying particulars in the places where such information shall be included in the Contract. It should be noted that this tendering process does not permit any contract negotiations as such.
The Model EPSC paragraph 7.1. (1) reads:
”Notwithstanding any other provision of this Contract, in the event that Initial Commercial Production has not occurred within eighteen (18) months, in the case of a Liquid Hydrocarbons Discovery, or thirty-six (36) months, in the case of a Non-Associated Natural Gas Discovery, or such longer period as the Ministry of Mines may have agreed in the Development Programme and Development Programme Budget, as from the date of declaration of Commercial Discovery for a Field, the Contractor shall relinquish the area comprising such Field and shall forfeit any rights relating to such Field and any production therefrom.
Thus, the Contractor may propose, and the Government may agree, on a longer retention period if required in order to ensure gas offtake. The Model EPSC Article 7.1 (i) and (j) regulate the adoption of the Development Programme and Development Programme Budget.”
As previously stated, Exhibit F and H are the only negotiable parts of the EPSC. The remainder of the Model EPSC is not to be modified or amended beyond insertion of company name of Contractor and other similar identifying particulars in the places where such information shall be included in the Contract. It should be noted that this tendering process does not permit any contract negotiations as such.
The Model EPSC paragraph 7.1. (1) reads:
”Notwithstanding any other provision of this Contract, in the event that Initial Commercial Production has not occurred within eighteen (18) months, in the case of a Liquid Hydrocarbons Discovery, or thirty-six (36) months, in the case of a Non-Associated Natural Gas Discovery, or such longer period as the Ministry of Mines may have agreed in the Development Programme and Development Programme Budget, as from the date of declaration of Commercial Discovery for a Field, the Contractor shall relinquish the area comprising such Field and shall forfeit any rights relating to such Field and any production therefrom.
Thus, the Contractor may propose, and the Government may agree, on a longer retention period if required in order to ensure gas offtake. The Model EPSC Article 7.1 (i) and (j) regulate the adoption of the Development Programme and Development Programme Budget.”