Why not bargain for A7 approval?

[Putncalls]

Doesn't the buyer have to ask for Certification after a certain amount of time?

[Palm]

Nope. Buyer is to notify Operator once the last agreed upon appraisal well is drilled and fully tested. Only time limit is that any additional wells beyond initial 2 must be agreed upon and are not to unreasonably delay drilling of carried exploration well or FID. Attorneys can have field days with terms like "unreasonably".

The spirit of this agreement is cooperation and being sure that an LNG project is justified. There's nothing in it about "if seller becomes tight on funds it can demand Certification to force Buyer to pay up before Buyer is ready."

[Stavros]

To clarify one point ...

SPA Clause 6.2 "Conduct of Appraisal Program":

The Buyer acknowledges the Appraisal Work Program must be carried out to keep the PRL 15 Title in good standing and that after Completion it will procure the Operator to use all reasonable endeavours to ensure that the drilling of the appraisal wells proceeds in all material respects and substantially in accordance with the Appraisal Work Program

Interpretation of the phrase "all reasonable endeavours" is in-play ... http://www.glovers.co.uk/news_article232.html

"In conclusion, it is clear that an obligation to use ‘best endeavours’ places a party under a stricter obligation than one to use ‘reasonable endeavours.’ However, one should be aware of clauses in commercial contracts which subject a party to using ‘all reasonable endeavours’ as this should not be viewed in the same way as ‘reasonable endeavours.’ It is also important to consider any specific activities or services that a party is agreeing to undertake or provide, as these will be enforceable, even if they place the party at a commercial disadvantage."