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Obligations of the Contractor

Liabilities and Indemnities | Governing Law; Arbitration | Representative Office of K | Payment Procedures |


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5.1. The Contractor shall, and shall ensure that the Contractor Group, perform the services under the present Contract in a safe and efficient manner in accordance with existing laws.

 

5.2. The Customer has, and shall maintain in force, valid rights to maintain and operate field facilities and equipment in accordance with the requirements set force for each category (type) of such facilities and equipment, as well as technological modes and schedules of operation and maintenance of facilities (equipment, wells, etc.) agreed by the Customer.

 

5.3. The Contractor shall, and shall ensure that the Contractor Group employs qualified personnel only for rendering services under the present Contract, provided that such personnel shall have all permits, certificates and licenses required by the existing law.

5.4. The Contractor shall:

5.4.1. ensure fulfillment of Customer`s monthly regular orders related to oil production volumes and performance of geological and technical works.

5.4.2. ensure timely execution of Commissioning Acts, Acts of temporary conservation of wells during their operation, documentation for well abandonment and Acts of conservation period extension and other documents, provisioned by the present Contract and applicable laws and agree such acts and documentation with the Customer and state authorities if needed.

5.4.3. ensure the inspection of the wells under conservation no less than twice a year followed by registration of such inspections and their results in the Wells under conservation Register of inspections.

5.4.4. ensure the inspection of abandoned wells no less than once a year followed by registration of such inspections and their results in the Abandoned Wells Register of inspections.

 

5.5. The Contractor shall prepare the documentation related to operational activities of the Contractor (Contractor Group) at the Facilities during the period of the present Contract execution and agree such documentation with the Customer, including without limitation the documentation related to fire precautions and safety, as well as instructions to the Contractor on its actions in emergency cases and hazards.

 

5.6. The Contractor shall, and shall ensure that the Contractor Group on its own account and by its own means, obtain, and maintain in force, at its cost all permits, approvals and licenses required under applicable law (including regulations related to environmental, construction, safety, etc.) in connection with the performance of the present Contract. Original documents or their copies evidencing the receipt of such approvals shall be provided by Contractor to Customer promptly upon Customer’s request. In the event that such approvals or permits are required to be obtained in the name of the Customer, Contractor shall use its best efforts to assist Customer in the obtaining of such approvals or permits. Upon signing the present Contract the Contractor shall deliver to the Customer all licenses obtained by the Contractor and Contractor Group and required in connection with the performance of the present Contract.

 

5.7. The Contractor is allowed to involve the third party in performance of the services under the present Contract only upon obtaining prior written consent of the Customer, provided, however, that in spite of such prior written consent of the Customer the Contractor in any case bears the responsibility for the proper fulfillment by the third party of the terms of the present Contract, and is liable for any losses (expenses, fines, penalties, contributions and payments) caused by participation of the third party in performance of the present Contract.

 


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