Exceptional Regime for Easing the Terms of Production Sharing Contracts
The Council of Ministers approved Resolution No. 25/2020 dated 23 June 2020, adopting an Exceptional Regime for Easing the Terms of Production Sharing Contracts due to the impacts of the COVID-19 Pandemic in the global oil industry.
The Council of Ministers granted the Executive Director of the National Petroleum Agency (“ANPSTP”) full power to sign amendments to Production Sharing Contracts with regards to an extension of the deadline for the Research Period for a maximum period of 12 months, upon filing of a declaration of interest by the Contracting Party, subject to the following conditions:
• Compliance with the existing obligations and duties of the Production Sharing Contract must not be in delay, interrupted or prevented by the invocation of some event of Force Majeure;
• The Contracting Party must not be in default of any obligation stated by the Production
Sharing Contract.
The Executive Director of the ANP-STP also received full power to sign amendments to the Production Sharing Contracts that deal with changes to the Minimum Work Program and Minimum Financial Commitment of the Contract.
The granted extension will only affect the schedule of the Research Period, with no effect regarding the remaining terms and conditions in force of the Production Sharing Contract.
This Resolution entered into force immediately and shall remain valid until 30 September 2020.
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