SALIENT TERMS OF THE PRODUCTION SHARING AGREEMENT

• The PSA shall be for a maximum period of thirty (30) years;
  
• There will be a maximum exploration period of six (6) years in two (2) commitment phase of three (3) years each;
  
• At end of the Exploration Period, there shall be total relinquishment of all areas except those areas in which hydrocarbons have been discovered and for which an Appraisal Program of a Development and Production Plan has been drawn up, any Petroleum Field subject to unitization or any Gas Holding Area, and any Retained Exploration Area;
  
• The Production Period for any Petroleum Field shall extend from the Production Date to the end of the Agreement period, which will not exceed twenty-two (22) years;
  
• PetroleumBRUNEI will have the option and right to participate for an undivided interest of up to fifteen (15%) Percentage Interest in the PSA;
  
• There shall be a percentage allocation of recoverable costs from the production of crude oil and natural gas in each Quarter;
  
• There will be a favourable and fair profit oil and profit gas splits between PetroleumBRUNEI and the Contractors;
  
• There shall be Royalties and fixed Income (Petroleum) Taxes to be payable by the Contractor for both crude oil and natural gas;
  
• The Contractor will also need to make monetary contribution for research and development to be determined at the end of each Calendar Quarter from both cost oil/gas and its share of profit oil/gas;
  
• PetroleumBRUNEI will provide assistance in relation to matters of administrative and logistical support for nominal monetary annual payments;
  
• The contractor would be required to contribute their allocated petroleum for emergency supply, domestic fuel and feedstock requirements as and when required at a fixed volume and rate;
  
• There will be a joint establishment and management of a special “ Abandonment, Removal and Restoration Fund ” to be initiated early in the exploration phase of the agreement period to serve the purposes of abandonment and removal of installations and equipment as well as site restoration and in keeping with Health, Safety and Environmental (HSE) requirements;