Paragraph 28 Unit developmentI1

If at any time at which this licence is in force the F1OGA shall be satisfied that the strata in the Licensed Area or any part thereof form part of a single geological Petroleum structure or Petroleum field (hereinafter referred to as “an Oil Field”) other parts whereof are formed by strata in areas in respect of which other licences granted in pursuance of the Act are then in force, and the OGA shall consider that it is in the national interest in order to secure the maximum ultimate recovery of Petroleum and in order to avoid unnecessary competitive drilling that the Oil Field should be worked and developed as a unit in co-operation by all persons including the Licensee whose licences extend to or include any part thereof, the following provisions of this clause shall apply.

Upon being so required by notice in writing by the F2OGA the Licensee shall co-operate with such other persons, being persons holding licences under the Act in respect of any part or parts of the Oil Field (hereinafter referred to as “the other Licensees”) as may be specified in the said notice, in the preparation of a scheme (hereinafter referred to as “a Development Scheme”) for the working and development of the Oil Field as a unit by the Licensee and the other Licensees in co-operation, and shall, jointly with the other Licensees, submit such scheme for the approval of the OGA.

The said notice shall also contain or refer to a description of the area or areas in respect of which the F3OGA requires a Development Scheme to be submitted and shall state the period within which such scheme is to be submitted for approval by the OGA.

If a Development Scheme shall not be submitted to the F4OGA within the period so stated or if a Development Scheme so submitted shall not be approved by the OGA, the OGA may F5itself prepare a Development Scheme which shall be fair and equitable to the Licensee and the other Licensees, and the Licensee shall perform and observe all the terms and conditions thereof.

If the Licensee shall object to any such Development Scheme prepared by the F6OGA he may within 28 days from the date on which notice in writing of the said scheme shall have been given to him by the OGA refer the matter to arbitration in the manner provided by clause 44 of this licence.