Considering the phased nature of the implementation of the production sharing agreement, the Investor must develop and submit for approval to the State or a representative of the State a draft Annual Work Program and Budget for approval.
It is clear that production sharing agreements determine the conditions and algorithm for the approval procedure of the draft Annual Work Program and Budget, rather than the aspect of the «fullness» of the Program itself.
It is impossible to resolve half of the practical issues in detail, but the procedure for signing amendments to the production sharing agreement is also too long, especially on the part of the State.
During the implementation of the production sharing agreement, questions arise about the investor's compliance with all components of the draft Annual Work Program and Budget under martial law, the consequences of not approving the Programs or their return or even refusing to reject the Program.
How to qualify a violation of the terms of a production sharing agreement by the State?
The rejection of the investor's proposals shall contain a detailed list of the oil and gas activities rejected by the State representative, a detailed explanation of the reasons for the rejection of any oil and gas activity, and a detailed explanation of the conditions and identify the specific proposals that the State representative considers necessary for the Operator to obtain approval.
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