Juicier target CNE or FAR, page-145

Current clauses from Senegal Petroleum Code 1998. These are the terms under which Far et al contracted with the Senegal Government. Article 26 is particularly relevant. I expect any changes to the Code would at least need to be grandfathered for current permit holders.

ARTICLE 24 During the term of an exploration permit, its holder may be authorized, at its request, to exploit the producing wells on a temporary basis, for a maximum period of two years, during which it shall carry out the delimitation and the development of the deposit, according to the provisions of Article 20. This authorization, which grants the holder, in exchange for the payment of the royalties provided in Article 41, the right to freely dispose of the hydrocarbons extracted, may be withdrawn under the same conditions in the event of noncompliance with the provisions of Article 20. It becomes void in the event of the expiration of the permit for any reason whatsoever, unless an application if filed for a concession. The procedure for the review of the temporary exploitation authorization request as well as the request for an extension of said authorization to new wells of the deposit, or for the withdrawal of the authorization, is set forth by decree. ARTICLE 25 The hydrocarbon exploitation concession is granted by decree. It confers to its holder, within the boundaries of its perimeter, the exclusive right to carry out all the petroleum operations, according to the stipulations of the convention related thereto. ARTICLE 26 Any commercial discovery of hydrocarbons made by the holder of a hydrocarbon exploration permit provides the latter with the exclusive right, provided that the request is made prior to the expiration of said permit, to obtain an exploitation concession covering the perimeter of the commercial discovery. The convention that applies to the exploitation concession is that which is described in Article 17. 12 The award of an exploitation concession entails the cancellation of the hydrocarbon exploration permit within the perimeter granted, but it shall remain in force outside of said perimeter until its expiration, without modifying the rights and obligations that arise from the hydrocarbon exploration permit. ARTICLE 27 The hydrocarbon exploitation concession is granted to the holder for a term not to exceed twenty-five years. However, the period of validity of said concession may be extended by decree for a maximum period of ten years, renewable once, according to the conditions set forth in the convention, if the holder demonstrates that a commercial production is still possible upon the expiration of the initial period, or, if applicable, upon the expiration of the first renewal period. ARTICLE 28 Any request for a hydrocarbon exploitation concession must be accompanied by a plan for the development and bringing in of the commercial discovery. This plan must contain, in particular, information regarding the amount of recoverable reserves of hydrocarbons, the expected production profile, the development scheme, estimates of the investments and costs, as well as a study that justifies the commercial nature of the discovery. The development plan must also contain an environmental impact study that includes measures to be adopted in order to guarantee the safety and health of the employees and third parties, as well as the ecological balance of the environment, and an abandonment plan that ensures the protection of the environment. ARTICLE 29 The holder of a hydrocarbon exploitation concession agrees to carry out with due diligence the development of the commercial discovery in question, and to exploit the same in accordance with the recognized practices of the petroleum industry. ARTICLE 30 The holder of an exploitation concession acquires property rights over the hydrocarbons produced at the wellhead. ARTICLE 31 For the purposes of this code, other than the buildings, the machinery, equipment and materials used for the exploitation of hydrocarbon deposits and for the storage and transportation of crude products are considered immovable goods. 13 The shares or interest in a company or firm for the exploitation of hydrocarbon deposits are movables. The material extracted, the supplies and other personal property are movables. ARTICLE 32 The exploitation of hydrocarbon deposits constitutes an act of merchant. It does not give rise to any property rights or mining royalties. ARTICLE 33 Any holder of a concession for the exploitation of hydrocarbons may waive the same fully or partially, subject to one-year advance notice. This waiver does not relieve the holder from the obligations provided in the convention and arising from the activities undertaken by the holder prior to the effective date of the waiver. In the event of a partial or total waiver, the holder of a concession must also complete the abandonment work and take all measures necessary to protect the environment.

DYOR