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Wednesday, August 1, 2012

Jordanian Petroleum Exploration Basic PSA Conditions and Fiscal Terms:


* All terms, articles and annexes are negotiable, have the same force and effect and when completed the PSA takes the power of law and published in the official Gazette.

* The exploration period lasts about (6) years is divided into two Terms whereas the development period is (25) years. The commitments for each exploration term usually include the drilling of 1 or 2 wells and / or seismic surveys. The contract terminates if no commercial discovery is made by the end of the first or second exploration term. However, contractor could voluntarily relinquish the license at any time if relevant requirements are satisfied.

* Contractor has the exclusive right to conduct petroleum operations in the described area to any delivery points in Jordan. The rights include construction of roads, pipelines, telecommunication systems, landing fields and other facilities.

* NRA shall support and provide every assistant to contractor in obtaining all necessary approvals, licenses, and permissions from relevant Jordanian authorities.

* Contractor shall bear all expenses of petroleum operations and shall look only for cost recovery share, which he is entitled to under the relevant terms of contract.

* The budget for each exploration term is approximately USD (10) millions but compliance with work commitments shall relieve contractor of the requirement to expend the minimum expenditure obligation. All items entered into the country are exempted from duties if required for petroleum operations. The exemptions of all temporary entries shall be guaranteed from a licensed bank in Jordan 200.000 US$.

* Contractor enjoys free currency exchange, free use of land with the right to export all petroleum, which he is entitled to.

* The model contract contains many other articles on relinquishments, conduct of operations, training and production bonuses, Assignment, gas, supply of internal demand and general provisions.

* The annexes to the contract include provisions on area, accounting procedures, tax implementation provisions, form of bank guarantee, performance bond and Parent Company Guarantee.

A full copy of the model contract can be provided to the interested oil companies upon request from:
Middle East Geological Forum Company
info@megf-jo.com
saudnabulsi@gmail.com
00962777460539

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