The current forty-year terms for the above mentioned Agreements will end as of 22 December 2003 hence the signing of the two new agreements today, 17 December 2003 namely the Onshore Petroleum Mining Agreement and the Consolidated First and Second Offshore Petroleum Mining Agreement.
The new Agreements will extend the term for a further 19 years until December 31, 2022 with a further option extension beyond the said date.
Although the Second Offshore Petroleum Mining Agreement signed in February 1968 is not due for extension until the end of 2007, nevertheless both the Government and BSP viewed that this would be an excellent time to extend BSP's rights under it in tandem with the extension of the Onshore and the First Offshore Agreements.
Signing these agreements on behalf of the Government of His Majesty the Sultan and Yang Di-Pertuan of Negara Brunei Darussalam will be the Honourable Pehin Orang Kaya Setia Pahlawan Dato Seri Setia Awang Haji Abdul Rahman bin Dato Setia Haji Mohamed Taib, Minister of Industry and Primary Resources and Mark Carne, Managing Director of BSP signing on behalf of BSP.
Signing as witness on behalf of the Government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam and BSP respectively will be Yang Dimuliakan Pehin Orang Kaya Seri Utama Dato Seri Paduka Haji Awang Yahya bin Begawan Mudim Dato Paduka Haji Bakar, the Permanent Secretary, Office of the Prime Minister, and as witness on behalf of BSP, Mr Dominique Gardy, Chief Executive Officer, Shell EP International Asia Pacific.
Incorporated in the new Petroleum Mining Agreements are a number of obligations that BSP will undertake such as obligations concerning its minimum work commitment, payment of royalties and rent, relinquishment, gas supply for domestic industrial use and decommissioning and restoration. In addition, BSP will continue to enhance its programs on Bruneianisation, Local Business Development, Training, Research and Development and Community Development.
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