Exhibit 10.3
PETROLEUM CONTRACT
FOR
DEVELOPMENT AND PRODUCTION
OF
THE MIAO 3 OIL FIELD
OF JILIN PROVINCE
OF
THE PEOPLE’S REPUBLIC OF CHINA
BEIJING CHINA
DECEMBER, 1997
Petroleum Contract
by and between
China National Petroleum Corporation
and
Global Oil Corporation
for
Development and Production
of
the Miao 3 Oil Field
of
Jilin Province
of
the People’s Republic of China
Beijing China
December 16th, 1997
Contents
2
Preamble
Article 1
Definitions
Article 2
Objective of the Contract
Article 3
Contract Area
Article 4
Contract Term
Article 5
Relinquishment of Contract Area
Article 6
Minimum Pilot Test Work Commitment and Expected Minimum Pilot Test Expenditures
Article 7
Management Organization and Its Functions
Article 8
Operator
Article 9
Assistance Provided by CNPC
Article 10 Work Program and Budget
Article 11 Preparation of the Overall Development Program
Article 12 Financing and Cost Recovery
Article 13 Crude Oil Production and Allocation
Article 14 Quality, Quantity, Price and Destination of Crude Oil
Article 15 Preference to the Employment of Chinese Personnel, Goods and Services
Article 16 Training of Chinese Personnel and Transfer of Technology
Article 17 Ownership of Assets and Data
Article 18 Associated Natural Gas
Article 19 Accounting, Auditing and Personnel Costs
Article 20 Taxation
Article 21 Insurance
Article 22 Confidentiality
3
Article 23
Assignment
Article 24
Environmental Protection and Safety
Article 25
Force Majeure
Article 26
Consultation and Arbitration
Article 27
Effectiveness and Terminati