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1971,



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42' 30"
21 21' 42"
59' 20" 2121'42"

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16' 30"

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38 04' 00"
21 47' 25"
37 51' 15"
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JOHN C. STERGE


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AN-CAR-OIL Co. ING.
JOHN C. STERGE

AGREEMENT
FOR FOR AND DEVELOP-
MENT OF HYDROCARBONS AREA OF
- EAST AND NORTH - WEST OF
PELOPONNESE
PREAMBLE
WHEREAS, pursuant to 1etter dated J uly 15th,
1971 of AN-CAR,OIL Corporation Inc. to the Ministry
of National of the of Greece, pre-
liminary discussions were held in Athens,
representatives of the GREEK ST and the
AN-CAR-OIL Corporation Inc. regarding the possi-
bility of tbe GREEK STATE granting exploration and
development rights for hydrocarbons, and
WliEREAS, by said negotiations the basic principles
were established for the conclusion of a direct Agre-
-ement between the GREEK ST and said
OIL- Corporation Inc., pursuant to the provisions of
Article 5 of -Law 3948/1959, <<Re: Research, explora-
and eiploitation of hydrocarbons)) such Agreement
to be ratified by Law, and
WHEREAS, AN-CAR-OIL Company Inc. is incor-
under the laws- of the State of Delaware, of
tbe United .States of America, with its registered of-
fices in Boston (One Boston Place ), Massachusetts,
.. s. -

Now t.herefore
Between:
1. The Kingdom of Greece, to
as Greek State lawfully representecJ by Mi-
nister of National Economy, Mr. G. Pezoponlos
and
2. AN-CAR-OIL Company Inc., hereinafter referred
as th_e Co:rporation or Lessee, represented by
J ohn C. Sterge, acting by virtne of a
special Action of its Board of Directors, dated Novem-
ber 3, 1971 and attached hereto in the original and
an official translation.
The present Agreement has been concluded, following
the concurring opinion of the Board of Mines under
the following terms and conditions : '
Article 1.
Original Exploration Area.
For the purpose of carrying out the work of explora-
tion for and development of hydrocarbons, the Greek
State concedes hereby to the Corporation a sea and
land area in the North-East Block of the Peloponnese
and in the North- West Block of the Peloponnese, of
about 6.500 square kilometers, the boundaries of which
are delineated in the general map of Greece, Pelopon-
nese Sheet, scale 1 : 400.000 of the Army Hydrographic
Service, issued in 1957, attached to the present Agre-
ement and herein-after referred to as SCHEDULE
signed by both contracting parties and constitn-
ting an integral part of the present Agreement.
The said area is defined by a polygonal line joining
the following points:
NORTH - WEST BLOCK
From point which is lying on the sea-shore which
has a _ Latitude of 37 42' 30" and a Longitude
of 19' 18" to point Latitude 37 42' 30"
and Longitude 21 21' 42" From there to point
(Gamma), Latitude 37 59' 20" and Longitude
21 21' 42" From there to point D on the sea-
shore with Latitude 37 59' 20" and Longitude
16' 30" From there, (towards the north and
east) following the of sea -shore to point with
Latitude 38 18' 50" and Longitude 21 47' 18"
From there to point with Latitude 38 04' 00"
and Longitude 21 47' 25" From there to point
with Latitude 37 51' 15" and L()ngitude 21
37' 30" From there to point (Etta) with Latitude
40' 50" and Longitude 21 53' 48" From
there to point with Latitude 37 33' 40"
and Longitude 21 53' 48" From there to point
with Latitude 37 33' 40" and Longitude 21 36'
42" From there to point with Latitude 37 38'
40" and Longitude 21 38' 54" From there to _
point L with Latitude 37 43' 40" and Longitude
21 31' 54" From there to point on the sea-
shore of the Golf of Kyparissia with Latitude 37 38'
25" and Longitude 21 25' 50" From there,
following the Jimit of the sea -shore, to the original
point
NORTH - EAST BLOCK
From point on the sea-shore of Argolikon Bay
with Latitude 25' 10" and Longitude 22 44'
42" to point with Latitude 37 25' 10" and
Longitude 39' 10" From there to point Gamma
of the sea-shore of the Gulf of Corinth with Latitude
03' 30" and Longitude 22 37' 00" From
'there eastward along the limit of the sea-shore of Co-
rinth Bay and the Saronikos Bay through the Canal
and f9llowing south along the sea-shore to point D
834
( Delta) with Latitude 37 25' 00' and Longitude
30' 00" From there to point on the island of
Ilvdra 'vith Latitude 37 30" and Longitude
2:Jo 36' 20" From follpwing \Vestwarcl
Iimit sea to 'vith 37 18'
00" and Longitude 23 26' 00" From there to
point (Etta) on the island of Spetsai with Lati-
tucle 37 14' 00" and Longitude 23 08' 36"
From there following the coast northwest to point
\Vith Latitude 37 17' 00" and Longitude ;
23 05' 08" And trom there to point
Article 2.
Right to Renewal and Reduction
of the original Exploration area
1. The original exploration area is granted to the
Corporation for a period of three (3) years from the
effective date of this Agreement.
2. At least one month before the end of the third
year the shall notify the Greek State of
the areas which it has selected to surrender at the end
of the third year. The areas to be so surrendered
measure at least 25 per cent of the area of the original
exploration area.
3. Provided the Corporation has carried out its
investment and working obligations during the first
years as specified in Articles 3 and 4 of this Agre-
ement and provided it has carried out the surrenders
specified under item 2 above, the areas retained by
the Corporation shall be held by it in full right for
another period of two years (renewal period from the
end of the third through the end of the fifth year from
the effective date of this Agreement ).
4. Provided before the end of the fifth year or of
Lhe automatic extension thereof, if any, as provided
for in Artirle 21 item 8 b) of this Agreement., no dis-
covery of in quantities which, in the
Corporation's opinion, would ensure an economic ex-
ploitation, been made by Corporation and pro-
vided therefore, not applied for
a development concession as stated in Article 5, item
1, any areas held by the corporation under this Agre-
ement that time shall be surrendered to the Greek
St.ate anfl the Agreement shall be terminated.
[>. Jf at any time the first five years from the
of Agreement or the automatic ex-
if any, as provided for in Article 21
8 b) of Agreement, the Corporation makes a
of at any point of the then
by it exploration area in quantities which, in the
Corporation's opinion, would ensure the possibility
of an economic operation for it and Corporation selects
a development concession, as per Article 5, items 1
2, then :
a) One ( 1) month before the end of the fifth year
from the effective date of this Agreement or of the
automatic extension thereof, if any, as provided for
in Article 21 item 8 b) of this Agreement, the Corpora-
tion shall notify the Greek State of the areas which
it has selected to surrender at the end of the fifth
year from the effective date of this Agreement or of
its automatic extension, if any, as above stated. The
areas to be so surrendered shall measure at least 50
per cent of the original area.
b) The Corporation shall have the right, after the
end of the fifth year from the effective date of this
Agreement, to hold for the duration of the said deve-
lopment con?ession, all exploration areas still held by
the after the areas selected as provided for
in sub-item a) above, have been surrendered. There-
fore, if discoveries of hydrocarbons are made and spaces
selected in the original area as same may
have been reduced as provided for in ite.m 2 of this
Article and under the conditions foreseen at the be-
ginning of this item, then the total of the expl?ration
areas 'vhich Corporation shall have the r1ght to
hold by virtue of this item 5 shall be equal to 25 per
cent of the total area of the original exploration area
minu.s the areas, if any, voluntarily surrendered by
the Corporation before the end of the fifth year from
the effective date of this Agreement, and minus the
areas of the development concessions held -by the -Gor-
poration at the end of the fifth year, and of the auto-
matic, if any, extension thereof as aforestated.
6. The choice of the to be surrendered under
the stipulations of items 2 and 5 above, shall be made
by the Corporation solely in itS own judgment and the
areas surrendered may be in several non-continuous
blocks, provided, however, that each block
measures not less than fifty square kilometers. -
Each time that the Corporation makes its choice
of the areas to be surrendered it shall submit at the
same time an aoourate description and map scale
1 : 10.000 showing the location of the area'S surrendered
and the areas retained.
The Greek National Triangulation system or geogra-
phical coordinates will be used to define the areas to
be surrendered ahd to be retained.
Article 3
Investment obligations of the Corporation
1. During the first five years from the effeotive date
of this Agreement, the Corporation shall be obliged
to invest the following amounts for oarrying out the
exploration operations under this . Agreement and ac-
cording to the following program :
U . .S. Dollars
1st Year : Seismic exploration andfor any
other geological and geophysical work to
determine structural anomalies .......... $ 250.000
2nd ear : Seismic exploration and, in addi-
tion, any other geological or geophysical
work to determine the existence of struc-
tural anomalies. If AN-CAR-OIL Co. Inc.
decides to drill a deep well, it can do so
and the money to be spent for this reason,
not exceeding U.S.$ 100,000, will be offset
with the amount of $ 250.000 -$ 250.000
3rd ear : On -shore deep well ... $ 800.000
or
off-shore deep well and for com-
plementary geological and geo-
physical research, if necessary $ 1.300.000
4th Year: On-shore deep well ... $ 800.000
or
off-shore deep well and for com-
plementary geological and geo-
physical research, if necessary $ 1.300.000
ear : On -shore deep well ... $ 800.000
or
off -shore deep well ........
$ 1.300.000
-------..,..---
i.e Total in U.S. Dollars . . . 2.900.000 or
2. If the Corporation retains any exploration areas
the of. the fifth year, as stipulated in Article
2, Item 5, 1t shall be obligated to invest the following
amo.unts in work in the exploration areas
retain.ed by It after the end of the fifth year fro:tn the
effect1ve date of this Agreement :

835
U.S. Dollars
per sq. km.
a) For the whole p_eriod of the 1st three years 900
b) For the whole of the 3 following years 1,500
c) For the whole penod of the 3 following years 2,250
d ) Every 3 years after the end of the 9th year
(after-.the end of the 14th year from the ef-
fective date of this Agreement) .......... . 3,000
. 3. a) A!ly amounts invested by the Corporation in
explorat1on and development operations under
Agreement during the initial three year period and the
following periods as mentioned under item 3
of Article 2, in excess of its investment obligations for
each of these 'years shall be credited against the invest-
ment obligations of the following year or years.
Any invested by the Corporation in its
exploration under this Agreement, during
any one of the per1ods of three years, mentioned in
2 of this Article, in e:x:cess of the specifically men-
tiOned investments for the corresponding time period,
shall be credited against the ob1igatory investments
for e:x:ploration of the following period or periods of
three years each.
b) If by the of the year mentioned in item 1 of
Article or of any one of the periods mentioned in
2 of this Article, in this latter case during its deve-
lopment Qperations, the Corporation has failed to in-
vest the above mentioned obligatory amounts, under
this_ Agreement, which shalt include any credits as
_provided for- in a) above, the. Corporation pay
1n cash. to the Greek State the difference between the
obligatory amount for that year or period and the
amount actually invested during the same year
period. These payments shall be effected not later than
three after the end of the corresponding year
or period, and such payments shall be deemed to con-
complete compliance by the Corporation with
1ts investment obligation for the corresponding year
or period.
c) lf by the end Qf either the 4th or 5th years of
the exploratory operations mentioned in item 1 of this
Article, the Corporation has failed to invest the obli-
gatorj amounts referred to in this it-em; corresponding
to each of said years, including the credits, if any,
provided for in sub-item a) although tlie Cor-
p_oration shall have performed its contractual obliga-
corresponding to each of the said years, then
Corporation is entitled to spend tbe djfference between-
the ob]igatory amount corresponding to each of the
years and the amount actually speni for this year,
tbe drilling of an additional exploratory well (in
addition to those.... provided for by item1 hereof),
which must be completed before the end of the 5th
year of the exploration opera:tions. Providing a prior
will be reached with the Greek State, the
!lbove difference may be invested by the Corporation,
total or in part, in the performance of complemen-
tary seismic and geophysical syrveys and reconnaissance.
If by the end of the 5th year or its extension, if any,
as provided for in item 8 of Article 21 hereof, of the
expJoration pperations referred to in item 1 of this
Article; the above difference has not been
invested in total or in part, as set forth this sub-:item
?bligations of the 4th and 5th years of the period of
1ts exploration operations.
a) The obligatory amounts mentioned
this shall include any expenditures, whether
Inside or outside Greece of whatever nature
that are paid or by the in and fo;
of operations under this Agreement,
but not to organization expenses
administrative and overhead expenses, fees fo;
by and any third par-
purchase or Iease of and suppHes, in-
cluding any spare parts therefor, and materials and
( except as set forth sub-item c) below)
however, that administrative
general ex:pens_es may not be against the
set forth in Article in an
amou.nt 10 per cent of said obligations as
In 1 of the present Article for the res-
pective periods.
b) For the purpose of item 4, sub-item a) only :
be tak-en to be all expenses
w1th the formation of the Cor-
poration and the negotiation of this Agreement prior
to the date of its ratification by Law.
Administrative expen'l3es shaH be taken to be all
expenses by the City of BOSTON office of Corpo-
ration and expenses charged or incurred by the com-
pany and(or subsidiaries or affiliates of the parent
company for technical and advice and
managerial aid in order to carry out the purpose of
this Agreement.
General expenses shall be taken to include :
(1) Rent of and administrative offices
in Greece and all such expenses as are connected
the maintenance of said offices, such as light, heating,
telephone, etc.
(2) Purchase of furniture and equipment for said
offices and any expenses connected with the installa-
tion of said offices.
(3) Purchase, maintenance and expenses for opera-
tion of passenger cars in Greece, for the use of the
General Manager and of the administrative staff.
(4) Travel expenses of foreign managerial and admi-
nistrative personnel.
(5) Expenses connected with trips abroad of mana-
geriai and administrative personnel for business.
(6) Representation expenses of the entire personnel
in Greece.
c) lf at any the Corporation pnrchases drilling
rigs for the purpose of carrying ont deep exploration
and development wells in accordance \vith details
agreed by this Agreement capable of reaching the depth
defined in Article 4, item 4, the Corporation shall
have the right to credit against the investment obli-
gations mentioned in this Article not more than 20
per cent of the purchase price (including cost of tran-
sportation to Greece) not to exceed normal rental for
this type of rig per calendar year, beginning with the
calendar year when the rig is used for the first time in
Greece until such time as the total purchase price is
so credited.
c ), then tke balance thereof, remaining still uninvested
shall be paid in cash by the Corporation to the Greek
This payment shall be effected not later than
three months after the end of the 5th year or its exten-
sion, if any, as prov-ided for in Article 21, item 8, and
payment shall be deemed to constitute complete
C9mpliance by the . Corporation witb its investment
d) If, on the contrary, drilling operations are car-
ried out by a contractor or by a rig rented to the Cor-
poration by one of its affBiates or by a third party,
then the entire fees of the contractor or the entire rent
will be credited against the obligations
mentioned in this Article whenever payments to the
contractor, to the affiliate or to a third party are made.
/
836
Article 4.
Working Obligations- Exploration
1. The shall have to start geological
or geophysical work on its exploration area not later
than tl1ree months after the effective date of this Ag-
reement and all the exploration area shall be surveyed
in detail by means of geological andfor geophysical
methods during the first two years after effective
date of this Agreement, for the primary purpose of
enabling the Corporation to determine the best possible
Jocations for the drilling of exploration wells.
2. Subject to the provisions of item 1 of Article 3
hereof, the driHing of one deep exploration well shall
be started and completed within 30 months at the la-
test from effective date of this Agreement.
3. Dnring the period from the end of the second to the
end of the fifth year, the Corporation shall drill such
deep exloration wells as are provided for in item 1 of
3.
4. The above mentioned exploration wells shall be
drilled by means of a rig capable of reaching a depth of
at least 4.000 meters, unless seismic information shows
the sedimentary formations to be drilled, require a rig
with a greater capability.
5. The locatlon of the above mentioned exploration
weJls shaH be selected by the Corporation in its own j1ld-
gment.
6. The exploration wells completed in excess of the
minimum nnmber in one year shall be credited against
the working obligations of the foJlowing year or years.
7. deep exploration well shall mean a well of a depth
of not less than 2.600 meters measured from the rig's
rotary table provided, however, that for the pnrposes
of this Article the following wells shall be deemed to be
deep exploration wells.
a) Any exploration well in which a discovery of hy-
drocarbons is made at any depth of less than 2.600 me-
ters in qnantit.ies which in the Corporation's opinion
wonld ensnre_ an economic_aiJy profitable operation for
the and prov1ded the Corporation makes
the notification foreseen in Article 5, item 1) of this
on the basis of this discovery.
1>) Any exploration well in the crystalline or
Pranite basement is enconntered at .any depth between
50 2.600 If, however, the crystalJine or
basement Js encountered at any depth before
tl1e well 750 meters, such exploration well
be deemed to a deep expJoration well, and
II_l case the. shalJ have to drill one addi-
well, shall have to be drilled to a depth of
2.600 meters, or nntil. discovery of hydrocarbons, as
nnder. a) above, or the crystalline or granite base-
ment Is enconntered 1n IL at any depth or until the cir-
arise \vhich are foreseen c) below,
of these events occurs first.
, exploration well with respect to which the
Corporation agree that fnrther
not lf this Agreement is reached be-
fore \veH l1as reacl1ed the depth of 750 meters then
such well shaH not be deemed to be ; deep
\Vell and the Corporation shall have to drill
o?e well to a depth of 2.600 meters, or until
of it, as under a) above, or
the or basement is encountered
1n at any depth, or nntil the Greek State and the Cor-
that further drilling of this well is not
J of these three events occurs first.
In the cases foreseen under b) and c) above the me-
terage drilled in the original well added to the
of the replacement well shall not be less than 2.600 me-
ters. If the condition provided for in the preceding sen-
tence is not complied with within the established time
Iimits, the Corporation shall be obligated to pay to the
Greek State an amount of U.S. dollars 350, for each me-
ter by which the total added meterage of the original
and of the replacement well falls short of 2.600 meters.
Upon payment of this amount the original and the re-
placement well taken together shall be deemed to be one
deep exploration well under the terms of this Art1cle.
8. If the Corporation wishes to discontinue the dril-
ling of any one of its exploration wells at any depth,
without having discovered hydrocarbons in it, and to
abandon said well, the Corporation shall have the right
to do so in its own free judgment, nnder reservation of
the replacement through another well as stipulated in
this Article . However, if in this case the Greek State
has serious technical reason.s to believe that hydrocar-
bons could be disco.vered in this well at a greater depth,
then the Greek State shall have the right to request the
Corporatton to continue the drilling of this well, provi-
ded this request is made to the Corporation before the
rig is removed from location and provided further
'that the Greek State shall not have the right to request
that this well be drilled the depth capability of
the rig.
The Corporation shall have to comply with the above
request of the Greek State, provided, however, that:
a) This additional drilling shall be carried out at the
the Greek State, which shall reimburse the
Corporation for all the expenses incurred for such dril-
, ling, according to the same rate the Corporation had
been paying, including a charge for depreciation of all
the machinery and equipment used for such drilling at
the rates foreseen in the attached hereto Schedule
and an overhead of 10 per cent. Such reimbursements
shall be made a monthly basis apd not later than
thirty days after the presentation by the
of a monthly bill.
I
b) The Greek State shall assume all risks connected
with this additional drilling and full responsibility for
a!l damages suffered by the Corporation or by third par-
as a result of same, except in the case of gross negli-
gence on the part of the Corporation.
c) Sh?uld this additional drilling cause any delays in
the fulfillment by the Corporation of its working obli-
gations under this Article, such delays will be added to
the period during whic:h any of these obligations are re-
quired to be performed.
d) case hydrocarbons are discovered in the above
during this additional drilling in quan-
the C?rporation's opinion would ensure
an operation for the Corpora-
tion, then Corporation shall have the right to apply
for a Development Concession with respect
to as stipulated in Article 5 of this Agree-
ment, It however, that in this latter
case the. shall have to pay to the Greek
State days after the Corporation notifies the de-
an amount which shall be equal to the double
of all the amounts charged by the Corporation to the
Greek State for this additional drilling (plus interest at
the of 10 cent per annum), all of which amounts
so shall. be as expenditures of the Corpo-
of its obligations under Article 3.
Article 5.
Right of the Corporation
to receive development concessions
Number and duration of same.
1. during any time C()rporation holds ex-
areas under th1s Agreement a discovery of

837
in quantities which in the Corporation's
would ensure economically profitable opera-
tiOn f?r th.e ( commercial production ), is
an explorat10n we!J drilled in any such explo-
area, the after having submitted
satisfactory proof of such discovery to the Greek State
shall have the right to select an area referred to
ghout this as or Develop-
the well Iocated wi-
the terms of items 2 ), 3) and 4) of this
and ac?ordance with the procedure for noti-
the foreseen in Article 11 of Law 3948/
1959.
2. the momet. of notification. to the Ministry
of Economy conformity with Article 11 of
Law 3948/1959, of the selected area, the Corporation
becomes automatically Lessee of the so selected area or
areas.
. 3. The area ?f each development 'conces-
SIOn shall be square kilometers of any
shape by the Corporation. However, if the
Corporation can prove to the Greek State that the pro-
area of the producing field exceeds fifty square
tl1en the Corporation shall have the right to
a measuring more than fifty
square but case more than one hun-
dred square kilometers.
4. The number of development concessions which the
is entitled to select and hold in full right by
of Agreement is unlimited and each new well
o.f hydrocarbons, drilled by the Cor-
any of exploration areas, but oustide its
development concessions, shall entitle the Corporation
to select and hold a new development concession under
the conditions set forth in this Article.
5 .. The duration of the lease of each development con-
of the Corporation shall be twenty eight (28)
years from the date of the notification of the declara-
tion.
the Corporation has complied with its obli-
under this Agreement applicable to each deve-
lopment .concession under consideration, this period of
twenty (28) years shall be automatically extended
for another ten years under the applicable terms of this
Agreement, provided however that any amendment of
the Law 3948/1959 applicable to the exploitation of hy-
drocarbons generally shall be applicable to the so exten-
ded concession or concessions, except that no change in
La'Y 3948/1959 shall have. the effect of altering the
of the ten years extension.
Article 6.
Development and production obligations
of the Corporation
1. As soon as, in accordance with Article 5 of this
Agreement, the Corporation notifies the declaration
for the areas selected by i.t foreseen in Article 11 of Law
3948/1959, it shall proceed diligently with the drilling
delineation and development wells, using such spa-
of the wells as, in the opinion of the Corporation's
technici'ans and in a:ccordance with international tech-
nical standards, is best suited to ensure the maximum
economic ultimate recovery.
2. Notwithstanding the provisions of item 3) below,
the Corporation shall carry out continuous producing
operations in a workman-Iike manner in 1\CCordance
the internationally recognized rules of good oil
exploitation and always with a view to ensure the
maximum economic ultimate recovery.
3; However, at no time shall the Corporation be obli-
ged by the Greek State to produce hydrocarbons from
its installations existing at any given time at a which
according to international oil field practice:
a) is technically unsound; or
b) is detrimental to the scope of maximum economic
ultimate recovery; or
c) is uneconomic, i.e., does not ensure a profit to the
Corporation from its operations.
.In case the State finds that the development
and operations of the Corporation do
not comply with the principles set forth in items 1 ), 2)
and 3) above, the Greek State shall give notice in wri-
ting to the Corporation for initiating compliance \vithin
one month from such notification. It is, of course, un-
derstood that if the Corporation has objections to such
suggestions, it may refer to Arbitration i accordance
with Article 26 of this Agreement pending which the
Corporation shall not be obligated to initiate complian-
ce as above mentioned .
Article 7.
Authorized operations of the Corporation
and restrictions
1. The Corporation shall have the right to carry out
geological, geophysical and any other exploration ope-
rations for the purpose of discovering hydrocarbons by
any method and to carry out reconnaissance geological
drilling and deep exploration drilling for the same pur-
pose withinthe exploration area and development con-
cessions at any time held by the Corporation under this
Agreement.
2. The Corporation shall have the right to develop
the reserves of hydrocarbons discovered by it, to drill
development wells and to produce hydrocarbons disco-
vered by it.
.3. The Corporation shall have the rigl1t to store the
hydrocarbons produced by it, to submit them to preli-
menary treatment (such as separation of water and bot-
tom sediments, desulphurization, separation of natural
gasoline from natural gases) and to transport them.
4. The Corporation shall be the owner of all the hy-
drocarbons produced by it and shall have the right free-
ly to dispose of them either by selling on the domestic
market or by exporting them, however within the limi-
tations set forth in Articles 9 and 12 of this Agreement.
5. For the exercising of the rights enumerated in this
Article, and for complying with its obligations under
this Agreement the Corporation shall have the right
after complying with the existing legal formalities to
build or canse to be bnilt andfor operate andfor rent
from third parties storage tanks, field gathering lines
and trnnk pipelines for gas and crnde oil, separators,
plants for the primary treatment of the hydrocarbons
prodnced by it, as for example gasoline separation
plants, desnlphnrization plants, etc. branch railway
lines, storage and loading facilities at railway stations
and in the Greek ports, honsing facilities for its emplo-
yees and workmen, warehonses, mechanical shops, tele-
phone and radio commnnication facilities, and all other
installations necessary for the efficient carrying ont of
its operations under this Agreement. E?nch installations
may be bnilt andfor operated by the only
to the extent that in the Corporation's jndgement the
existing installations owned by the Greek State or any
Governmental agency are not snfficient and proper for
the Corporation's pnrposes or when their is
nomic for the Corporation.
6. The Corporation shall also have the right exclnsi-
vely for the fnlfillment of its operations nnder this Agree-
ment to reclaim lands or create islands within the ex-
ploration areas at any time haeld by it under this Agree-
ment, provided permission to do so is obtained from the
838

-
Armyand Naval Command which permission shall not
be withheld 'vithout any serious reason.
7. Upon the Corporation's request, submitted timely
each time, the Greek State shall render all lawful
stance to the Corporation in obtaining the permits and
authorizations from any and all competent authorities,
including the military authorities, necessary to reach
the objective s described in the preceding items. Should
the lack of or delay in obtaining the said permits and
authorizations render impossible or necessarily delay
the carrying out of any of the Corporation's obligations
under this Agreement, such or any
delay in the performance by the Corporation of its obli-
gations under this Agreement resulting therefrom shall
not constitute a transgression of the terms of this Agree-
ment and shall be treated as a case of majeurs>>
under Article 25 of this Agreement.
8. During the performance of seismic measurements
in the sea, the Corporation undertakes the obligation
to cause explosions through compressed air-guns or
by use of another method applied t"o eliminate destruc-
tion of m,arine life. Only exceptional cases \Vhen
above methods do JlOt produce satisfactory results
will the use of explosive material be allowed.
9. Geophysical research, drilling . and exploitation
of oil discovered under seawaters shall take place under
the following conditions :
a) An Admiralty representative shall be permitted
to follow all such research, tl1e Corporation giving him
adeqnate advance notice for this pnrpose.
b) Operations should not canse snbstantial trans-
formations of beaches and sea bottoms of the area.
c) Navigation in the area defined in Article 1 shonld
not be nnfavorably affected, and special care shall
be taken to avoid any damage to nndersea in
the area.
d) Operations in aJignments of Radio Sea Lights
etc. shall be prohibited, and any floating means to be
eventually nsed should comply with the rules for avoi-
colJision at sea and aJl installations and other
objec.ts in the sea shall be illuminated as regula-

e) For any mattcrs of a navigation natnre it is ne-
cessary t.o in t.ime to Department of Hydro-
of Greek Navy the reqnircd information
order to relevant annonncements and in-
to seafarers.
f) be obliged to submit the
the of Harbor Police, Ministry
of and Communi-
:
of a11 floating eqnipment and advance
to nearcst, Barbor Anthority of their sailing
schednles ;
(2). table giving fnll details of foreign and local
staff to engage and advance notice to the
nearest Harbor Anthority of any change.
(3) The characteristics of its telecommu-
nications eqnipment.
g) event any object of archaeological
yalne of antiqnities in general shall be discovered
_the conrse of research, the shall be
to snspend aB its operations in the area con-
and _to. notify urgently appropriate Ant.i-
so that the latter may take all neces-
sary for the protecti?D: of snch antiquities.
. h) . can be or discontinued
should such action be considered neces-
sar.Y for. reasons of National Security, and the instal-
1n use shall be removed from the area until
such time as the reasons causing discontinuation of
operations will have disappeared, without any ?bli-
gation for indemnity on the part of the State, proVIded,
however, that any such interruption or discontinuance
of operations shall be considered to have been caused
by force majeure>> under Article 25 of this Agreement,
Article 8.
Stremmatikos Payment
The Corporation is obligated to pay to the Greek
State a of 1,000 Drachmae per annum
per square kllometer of the area of all deveiopment
concessions at any time held by the Corporation under
this Agreement. The payment of this stremmatikos
will start from the moment the Corporation becomes
the Iessee of a concession.
Article 9.
Royalties
1. The Corporation shall pay to the Greek State a
royalty of fifteen per cent (15 %) on all hydrocarbons
( crude oil, natural gas and natural gasoline) produced .
and measured by it as per item 3) of this Article 1n
the course of its operations under this Agreement,
freed from water and foreign substances.
The quantities of produced hydrocarbons 11sed by
the Corporation for its own operations fOr fuel, or for
the purpose of repressuring, or unavoidable losses in
the course of the operation (principally gas flared)
shall not be subject to the payment of 'royalty.
2. The royalty crude oil and natural gas shall
be paid in cash unless the Greek State elects to take
these royalties in kind as hereinafter provided. Two
months before the beginning of each calendar semester
the Greek State shall notify the COrporation in writing
whether it desires to take . all or part of its royalties
for crude oil and/or. natural gas in kirnl- during the
ensning semester. Once the Greek State has notified
its choice to the Corporation no change in the manner.
of collecting the royalties shall be made up to the end
of the ensuing calendar semester, unless a mutually
satisfactory written agreement is arrived at between
the Greek State and the Corporation on this subject.
The royalty on natural gasoline shall always be paid
in cash.
3. The quantities of hydrocarbons subject to royalty
shall be measured at the field storage tanks for crude
oil, at well-head for natural gas, and at the separation
plants for natural gasoline. The Corporation shall be
obligated to install for this purpose . adequate measu-
ring devices complying with the standards usually
adopted in international oil field practice.
4. The, royalty in kind on crude oil shall be taken
delivery of by the Greek State at the field storage tanks
of the Corporation within forty days from the end of
each month to which the royalty applies,
another arrangement is arrived at by mutual
wr1tten agreement between the Greek State and the
Corporation, and the Corporation shall be . oQligated
to store at the sole risk of the Greek State,
that the Corporation will be responsible for any 1oss
or from its negligence, the royalty
crude to be delivered to the Greek State in its field
storage tanks free of charge during this period of forty
In case the Greek State does not take delivery
o_f 1ts royalty oil within the above specified pe-
the Corporation shall have the choice of either
freely of in which case the royalty on
shall be pa1d In cash or of continuing to store
It for. the account of the Greek State against an ap-
propriate storage charge, which shall amount- to the
actual storage c()st plus 10 per cent.
5. to crude oii-andfor natural gas delivered to
the Greek State as royalty shalJ pass at the point where
the delivery the.reof is effected.
6. Should <:orporation own and operate in Greece.
trunk for the transportation of crude
and gas the Greek State may request the
Corporat10n to transport the quantities belonging to
the by means of these pipelines . either to their
or. to any point located these pi _
peliUes. shall be carried out by
the at cost, plus 10 per cent.
present shal! not be interpreted as an obli-
of the . _to any pipelines or
to those which
or . operates, nor to erect any additional in-
to such pipelines or other tran-
unless another agreement is ar-
at the Greek State and the Corpora-
for purpose.
. t_ime when the Corporation becomes
an exporter of crude oil and establishes a
posted pice i:o Greece, the amount of cash to be paid
to Greek _State. as royalty shall be calculated ap-
by_. the Greek State Refinery or
other Greece for crude oil pur-
by them from the Corporation, as such is spe-
Article 12, item 9 a).
time the Corporation becomes an expor-
of. crude oil and establishes a posted
pr1ce m Greece, the amount of cash to be paid to the
Greek State as royalty on crude oil by it in Greece
applying said posted price, as such
12, item 9 b ).
8. The value of the royalty on natural gasoline shall
be the actual realized by the
the month to which the royalty
applies, minus manufacturing costs and tran-
expenses from t.he field storage tanks to
the point of delivery.
9. The value of the royalty on natural gas subject
to royalty shall be calculated, if paid in cash, the
sales revenue. realized by the Corporation per
meter gas sold during the month to which
the royalty payment applies, minus treating costs and
transportation expenses from wellhead to 'the point
of delivery. .
10. royalties in cash shall be payable every
months January and July of each year.
Article 10.
Taxes
1. The Corporation shall be subject to the income
tax for limited stock corporations at a fixed rate of
5_0 per cent on the net profits derived from its opera-
during a. business period and determined as set
forth in item 7) of this Article, whatever the rate in
force from time to time for other corporations may be.
From the amount of income tax for a business period
computed in accordance with this Article there shall
subtracted ,the amount of the royalties paid du-
the business period either in cash or in kind pur-
to Article 9 of this Agreement and, from the
the Corporation has net income from the. con-
cession, the amounts of Stremmatikos payment pur-
to Article 8 of this Agreement in order to ar-
at the net amount of income tax to be paid by
Corppration._ in respect of the business period. It
agreed that the royalties provided for by Article
9 of this Agreement are to be paid any production
of hydrocarbons whether the Corporations operations
result in a net profit or loss. It is further agreed that
839
the and tax rates set in Articles 9 and
10 of. Agr_eement shall remain unchanged for
of Agreement and the substraction
of. the from the income tax ,vill un-
duri!lg tl1is Agreement, and the Corporation
In of s?ch undertaking agrees and de-
clares that Agreement or any after-
wards shall not to raise any objection or
spute to the of 50 per ce!lt 01_1 the net profits
as above,_ and wlll accept in all
cases the contractnal effectiveness and validity of this
clanse.
2. net amount of the income tax
under 1) above is entitled to credit under La,v
2548/1953 ratifying Convention of February 20,
between the States of and the
of Greece for avoidancc of double taxa-
tion. Taxes which may be paid in Onited States
by the Corporation during the cnrrency of above
menti_oned Convention between tlie tJnited States of
and the Kingdom of Greece or after its ter-
shall not affect the tax on the Corporation's
net payable to the Greek State in accordance
with item 1) above.
3. Excepting the mining suiface fee (Stremmatikos)
p_rovided .for in 8 of this Agreement, the royal-
for article 9 of this Agreement and
tax _on its net profits. provided for in item 1) of
Corporat10n, its property, operations
and from operations under this Agree-
as well as any machinery, spare parts, acces-
tools and of any kind imported from
a_broad for the Corporation's opera-
under Agreement (with the exception of
fnel of any kind) as well as hydrocarbons prodn-
ced by the Corporation under this Agreement (with
the exception of refined products of any kind ), shall
be exempted from all taxes, whether direct or indi-
rect or of whatsoever kind or nature duties fees
withholdings, fiscal stamps or any
other special assessments, whether levied regularly or
which might be levied occasionally for special purpo-
ses, in favor of the Greek State, or any Greek autho-
rity or legal in general, of any third party,
except of clearly for services or rights
-(retributory contributions) of any kind and for em-
ployers' insurance contributions to insurance funds
and organizations.
This Agreement, as well as any other agreement or
contract. pursuant theretowhich might be signed for
acquisition of the exploration and development
-on hydrocarbons within the areas described in
Article 1 of this Agreement or related to purposes of
this Agreement are exempt from taxes, duties, stamp
duties, contributions, fees and withholdings in favor
of the Greek State, or any Greek authority or legal
entity, and, in general, of any third party.
The provisions of any laws of the Greek State re-
garding the minimum fees that shall be paid
shall not be applicable to lawyers perform ser-
vices in connection with this Agreement.
Fees of notaries, in force from time to time for the
-preparation of any agreement related to the purpo-
ses of this Agreement and the fees (from time to time
in force) of salaried or nonsalaried recorders for pus-
sible recording of agreements and of the present
Agreement may not in each case excee(l 10.000 Dra-
chmae.
4. Foreign shareholders of Corporation,
ded they are domiciled or reside abrcad, are exempt-
ed as regards their income from the Corporation,
840

from aJl taxes, regular or or Ie-yied. for
special purposes, duties, withholdJngs, contributions
or other exactions in favor of the Greek State, or any
Greek or legal entity, or any third party,
by reason of their capacity as shareholders of the Cor-
:roration.
5. All costs, expenses and incurred _by the
Corporation whether or outs1de 1ll con-
nection \Yith its and under
this Agreement prior to the business perio.d during
which the first time it derives gross rece1pts from
the sales of hydrocarbons derived from its
under this Agreernent shall be totalled and
zed by it over a pe!iod o_f not ten
ness periods w1th the f1r_st
it derives gross as above de-
scribed.
6. Should the Corporation sho\v a net loss from its
operations dnring a business period_ after has obtai-
ned its first developrnent tlns loss shall
be carried forward bv the Corporation and consoli-
dated with the financial resuJts from its operations,
whether profit or loss, of the following business pe-
riod or periods.
result, if it shows a loss, shall again be carried
forward by the Corporation and consolidated with
the financial results of the next business period or
periods. This consolidation sl1all be repeated until a
net profit is shown or the present Agreement is t.er-
minated. The Corporation shall not have any claims
against the Greek Stat.e for losses sustained as a re-
sult of its operations unc!er this Agreement..
7. The term profitsn of the Corporation as
used in tllis Article shall mean in respect of each bu-
siness period tl:e profits shown after deducting frorn.
the gross receipt.s of Corporation derived frorn its
operation under this all costs, expenses and
chargcs })y it in operat.ions under this
Agreen1ent incurrerl inside or Greece.
costs, expenses ancl refened to in the
preceding sentencc and in item 5) of Article shall
incllHic not bo lirnite(l to, set forth in Sche-
of t11is Agreement and shall be permitted as
irrespcctive of rest.rictions in force or t.o
be irnpose<l to The ex-
penses of Greece aftcr t.he commencement of
commercial as in a) b) hereinbelow,
are not to exceed 10 per cent of total yearly expen-
of the Corporat.ion inside of Greece :
a) in item 1 b) of
are of Greece.
1>) Expcnclit for item 1 a) of
S(hednJe cxpenses item 1 d) of SclJe-
dnJr n for t.he Corporation
of Greece by other rompanies are controlled
or indirectly by - CAR - OIL Co. Inc. or
of its affiliated companies.
above costs, expenses and charges shall not
inclnfle, the roya1ties provided for in Article
9 of this Gross receipts shaJI the
artnu1 receipts from sale of produced hydrocarbons.
The pricc for oil sold for shali be tl1at
act nally FOB sea terminal. Gross receipts for
domcstic sales of oil sl1all be the receipts.
Thc of the gross receipts and the costs
expenses and charges shall be in accordance
practices and princip!es as generaily accepted
in the internationrl petrolenm
In case royaities ure paiJ in kind the
to. 9 of this Agreement, the
valne of royalt.Ies as determined pursuant to said
Article 9 shali be added to the gross receipts of
Corporation in computing profits under. this
Article.
is attached to this Agreement which,
being dnly signed by the parties hereto, the
items of cost, expenses, charges and other
of the Corporation under this item.
8. a) The Corporation shali close its
within two months from the eiid of each bus1ness
period will be of one calendar year's durati?n.
b) The auditing of the books of the
wiil b.e made in accordance with Greek Laws.
c) 'fhe Corporation pay the total tax amount
assessed on the basis of its declaration within three
months from the submission of such deciaration.
d) The provisions in force from time to time regar-
ding the assessment of tax against the tax on income
of the current business period have lno in
this case, the obligations deriving from Article 9 of
the present Agreement for the monthly or semi-annual
payments of amounts foreseen by the above p_rovisi?ns
remaining, however, in force, and the Corporat1on
only obliged to pay each year the income tax on the
profits of the preceding business period.
e) The provisions of legislation from time to time in
force regarding additional taxes for inexact declaratio!ls
have no application in this instance, provided the dif-
ferences arisen as regards the tax due do not result
from alterations of the business period's results due
to the fault of the Corporation, but are due to a mis-
take or to a different interpretation by the Corporation
of the provisions applicable in this instance.
f) The remaining provisions of legislation in force
from time to time regarding tax on the of Ie-
gal entities, regulating the procedures for submission
of tax declarations of income, for the notification of
the invitation for administrative settlement of the
dispute, for the notification of the audit sheets, for
the opposition against such audit sheets as well as for
appeals against the relative decisio)ls and the assess-
ment of tax are applicable in this instance.
g) It is understood that the provisions of ArtiQle
21 of the present Agreement do not apply to any trans-
gression of obligations of the Corporation under this
Article.
Article 11
Import and Export of Machinery
Equipment and Materials
1. Corporation shall have the right to import
from abroad and to use for its operations under this
Agreement all machinery and equipment, including
any spare parts thereof, and of any materials of wha-
tever nature, in the judgment of the Gorporation
are necessary and best suited for the carrying out of
its operations. The present Agreement is in lieu of any
necessary license required in each instance for the im-
portation into Greece of such. machinery, equipment,
spare parts and other materials. ,
2. The machinery, equipment, spare parts and ma-
terials of any kind whatsoever mentioned under 1)
above, except fuels and lubricants, but including vehi-
cles, marine vessels and platforms, whether selfmoving
or not, upon which machinery, instruments, cranes,
or any other kind of accessories necessary for the ope-
rations of the Corporation are fixed, as well as the re-
lat.ive tractors, and finally, jeeps or equivalent vehicles
of whatever kind not exceeding six at the beginning
of operations and then one for each calendar year,
shall be exempt from import duties and 'all other taxes,
charges, fees and stamp duties, as well as from taxes
levied on behalf of third parties upon ,importation.

841
. 3. The shall free to export at any
all the and materials in-
cluding spare parts, and any kind of ve'ssels
platforms of. imported by it into Greece
accordance 1 ) and 2) of Article
except as otherwise provided in 22 of this
and su?h not be subject to any
or liCense in each instance nor
to the paym.ent of any export duties or
any other taxes, charges, fees and stamp duties.
4. Corporatior: sell or otherv>ise dispose
the obJects 1mported by terms of this
Article, withQut reexsporting them Greece it shall
be responsible for paying such duties other
t3:xes, .rees and stamp duties in accordance
w1th then in force, which may be appli-
cable 1n case. this responsibility shall
not apply 1f the sale made to the Greek State or to
another Company or contractor entitled to the same
exemptions as the Corporation under the provisions
of this Article.
Artic]e 12.
Domestic Consumption and Exports
' 1. The Greek State and the Corporation agree
primary objective of this Agreement is to supply
hydrocarbons to the so
as to cover its needs and to relieve the Greek national
from the necessity of using foreign exchancre
for the importation of hydrocarbons into Greece. t>
2. Suitable crude oil as used in this Article 12
shall mean crude oil which does not contain unique
technical characteristics or differs substantially as
its gravity or quality crude oil re-
by the Greek -State Refinery or prediscovery
which would substantially increase the ope-
costs of said or prediscovery refineries
order to produce the pattern of products required
by State, thereby creating an economic har-
for or them or the addition of major instal-
would be required in order to process said crude
Oil.
. 3. After the Corporati6n has the
production as defined in Article 5, item 1) of this
Agreement of crude oil in Greece; the Corporation shall
have the obligation to supply indigenous crude oil,
extent the Corporation has sufficient suitable
crude oil therefor, to the Greek State Refi-
nery and any other refinery existing and operating in
Greece as well as to such other refineries as shall come
into operation in consequence of agreements between
the Greek State and any other contractor that shall
be signed before the discovery by the Corporation of
comrn9fcially exploitable jndigenous crude oil with
the amount of crude oil which each such refinery may
require, from time to time, for the rnanufacture of
products which each such refinery has the
r1ght or obligation to supply for domestic consumption.
The supply of crude oil- to such refineries shall be
scheduled sufficiently in advance to permit production,
delivery and refinery operations to be in a normal and
efficient manner. The obligation to supply and to ac-
cept -such crude oil shall be subject to normal force
majeure provisions.
4. a) The Corporation shall have the right at any
time to export any production that is in excess of the
whic!_\-the has the obligation to
supply under item 3 of this Article freely in any manner
and by any means and under any conditions determi-
ned by it without any special license but under normal
practice in each instance and without paying
any export .duties or other taxes, duties and
and to. of such abroacl as
13. In this
the to eXJ)UI't uantities
of by It excess of slipulated
3 above, providecl able markets
for such are to the Corporation.
The \VIll notlfy the Greek State in \Vriting
such markcts are not to it, at
tnne State to pnrchase or to
be the excess at
ancl conditions
duration of SUC}l are
upon by the Corporation and the Greek State
\Vithin the of Article 6, item 3. ' '
b) the exports indigenous
crude dunng a calender quarLer at prices are
lo\ver than the prices Greek State Refinery
and the other pursuant to V
b) of t_his Article, shall a vailable
to the Greek calendar
an equal of oil at ave-
rage of the net prices realized on snch sales during
quarter by the Corporation, : (1)
Greek State makes cl'Ude available to one
of the domestic refineries for into petro-
products to be sold in the dornestic and
(2) that the quantity of crude oil furnished the
Greek State hereunder be in partial
of, and not in addition to the crude oil
supply obligations set forth in 3 of
Thc Greek State may indigcnous crude oil
available to one or <Jf thc refineries
and conditions of its the extent
that Greek State transfers its right to such
oil to one or rnore dornestic refineries, the respective
of the Corporation and the refineries to
supply and purchase indigenous crnde oil shall be
duced in each case by the amonnt of crude oil so trans-
ferred to each refinery by the Greek State.
5. In order that the Corporation its
obligations as set forth in item 3 of this Article, to snp-
ply indigenous crude oil to the Greek State Refinery
and other domestic refineries existing at the time of ini-
tial commercial discovery, Greek State obliO.ates
itself to ensure the crude oil produced by the Cor-
poration in Greece, provided such crude is suitable
the of this Article 12, item 2, will be given
priority of purchasc by all such refineries over crude
oil imported from abroad. With respect to the imported
crude oil \vhich the Corporation's indigenous crude oil
will displace, the Corporation or its affiliates through
any contracts \Vhich provide it or them \vith the
right to import crude oil, will thereafter continne to be
entitled to supply Greek State Refinery and other
domestic refineries with crude oil in an amonnt
equal to at least the same percentage of total quantities
of crude oil imported into Greece as it did at the time
of the initial commercial discovery. The Corporation
shall have no obligation to produce anfl supply indige-
nous crude oil in with itern 3 of this Article,
in excess of the quantities wl1ich \vill he the-
reunder.
6. In order to fulfill at earliest time the
primary objective of this Agreernent, as stated in 1
of this Article, the Greek State further agrees:
a) That and after the effective datc of this Agree-
ment and at all fluring thc validity of the presen-
tly existing crude contracts and any extensions
or substitutions thereof, evcry possible effort be
made within the limitations of said contracts to ensure
842

of at the possi_ble_ time by
Greek State Refinery of any
oil produced by the Corporation up to the total
of refinery.
b) from and after effec.tive date of
Greek State shall exercise every effort to
cnsnre, insofar as existing contractual obligations shall
permit, that all ne'\v contractual obligations for the sup-
of oil or prodncts and all renewals, .
or substitutions of either presently existing or future
or supply contracts shall contain every
reasonable provision which is within the po-
wer of Greek State to permit the of the
amonnts of indigenons crude oil as defined in item 3 of
this Article in Greek refineries at ear]iest possible
time aftcr commercial crude oil production begins.
Howevcr, the provisions of item 6 b) will not apply to
supply contracts that are for periods of one
)'Car or Jess which are signed prior to the commence-
of proclnction of crnde oil in commercial quanti-
tics.
c) despite exercising its best efforts, the Greek
Stat.e is prevented from achieving the objective fore-
seen in item 5 and item 6, paragraphs a) and b) of this
the Greek State shall nevertheless be obligated
to ensure that the Greek State Refinery and the other
refineries purchase an amount of suitable in-
digenous crude oil produced by the Corporation equal
to at Jeast thirty per cent of the of the Greek
State Refinery.
(l) Notwithstanding "''l1at is stated above jn this item
6, the Corporation shall not possess any right either le-
gal or by_ any way arising of the terms of this Agree-
ment to Interferi), oppose, or ask the Greek State to mo-
dify or change in any manner terms of the Agree-
rnont the supply of crude or products or
of refinories in Greece tl1e Greek
up to the of this Agreement
or probably in fut.nre prior to the date
notifies Greek State it
<.rnde oil c.ornrncrcial qnant.i-
ties or so Jong as the Greek
Stutc }H'ovides for in (;reek t-efineries of the
oil and delivered to the
State up to obligations defined
/} lern
7. there be of suitable
oi! in (;reece a any during validity of
c:orporation's obligation to
Greek State's obligation refening to the
of of. snitablc crnde produced
l)y be limited to the per-
t.he of Corporation bears to the
t.otnl of crude oil in Greece by all

8. If Greek State notifies the Corporation with
uata t.he crude oil produced
l>y for use in the Greek
Stntc the other prediscovery refineries
obligation of Greek State t.o ensure that
is given priority of by the
and prediscovery refineries and
the. of to supply said refi-
nenes crude oil, would both be con-
tingent a satisfactory arrangement
the primary objective set ont in item 1 above
"onld be achieved. f _no such mntually satisfactory
can be then the respective obli-
of the Greek State and the Corporation, as
stated above, come to an end until such time
as such crude or other oil produced in Greece
by the Corporation becomes suitab.le for use in the
Greek State Refinery and other refineries, provided,
however, that the Greek State agrees that it. wiH cause
the Greek State Refinery and other refineries exis-
ting in Greece to purchase such unsuitable oil to the
extent that it can be utilized in the refineries, provided
that in this case the operation of said refineries
not result in any hardship them. In addition, the
Greek State agrees to extend its fullest in
promoting the nse of such crude oil as a
substitute in industries in Greece.
9. a) Before the Corporation becomes exporter
of crude oil, the price at which the Greek State Refi-
nery and any refineries existing in Greece shall
be obligated to purchase crude oil produced by the
Corporation in Greece, shall be set--at the fie1d storage
tanks of the and said price shall be the
arithmetic averaget over the applicable calendar. month,
of the posted pric.e or prices, as defined in P1att' s Oil
gram or other simila:r. publications of crude oil at Bidon
and Tripoli, Lebanon : Banias, Syria, and of .Libya,
after making the usual corrections for sp!1Cific gravity
and qnality and geographical location.
b) At the time the Corporation becomes exporter
of crude oil and the Corporation establishes in Greece
a posted price at its field storage ta,nks,. the price at
which the Greek State Refinery and other refineries
existing in Greece are obligated to purchase crude oil
.shall be said posted price. Such posted price shall take
into account general market conditions . prevailing in
Mediterranean area at that. time after considering
the quality characteristics and Iocation of crude oil
being exported.
10. Payment ,by the Greek State to the Corpora-
tion for amounts due for hydrocarbons supplied shall
be made with in sixty days froiil the date of presen-
by the Corporation of a bill herefor. If payment
not received by the Corporation within sixty days
after the Greek State's receipt of the bill therefor,
Corporation may without prejudice to any rights
It may have by law, offset sueh amounts receivable
amounts which the Corporation woulc;l other- _
be required to pay the Greek State.
11. Should the Corporation own and operate in
Greece any trunk pipelines for the transportation of
crude oil. andfor gas lines, the Greek State may
request the Corporation to transport the crude oil
a'fld/or natural gas bought by it from the
these _trunk crude oil and/or gas
nes to_ the1r or to any other point lo-
on route. The shall be car-
out by the Corporation at cost plus 10 per cent.
_present item 11 shall n.ot be interpreted as an
the Corporation to build any crude oil
_gas o.r transportation facilities in ad-
those wh1ch shall at any moment
operate, nor to erect any additional installations with
to pipelines or other transportation faci-
unless mutually satisfactory agreement is ar-
at between the Greek State and the Corpora-
to this effect in the future. .
. In order to the Drachma price of crude
the provisions . of this Article,
the market prices and transportation
charges, in foreign shall be
converted equiyalent at any monthly
of th.e da1ly rates _of exchange, as defined in
8 of Art1cle 13, which the Corporation is enti-
to purchase currency with Drachma du-
the respective calender month.
____ __:_...._. ____
843
Article 13.
Foreign Exchange
1. As long as the Corporation does not derive vnv
revenues from the sale of hydrocarbons under Ar-ti'-
cle 12, operations under this Agreement shall be f'i-
nanced by the Corporation exclusiYelv ont of fo-
reign currency funds in the manner :
a) By converting Greek cnrrency, throngh the
b nks offJcJally authorized to clcal in reek
cnrrency nnd foreign U .S. or
cnrreEcy ert.ible to U .S. in
a_mo,unts as will . cover tl1e Corpora-
s cash expenses Greek cnrrency in-
cluding any payment to the Greek State and third
parties.
. b) directly pnrchasing and(or hiring abroad with
currency funds, and importing to andfor
Greece freely and without any restrictions
such machinery, equipment, mate1ials and of
any nature whatsoever, as will be required by the
Corporation for its operation under this Agreement.
2. Once production commences, the Corporation shall
be entitled to meet its cash operating expenses in Gree-
ce, including payments to the Greek State in the form
of stremmatikos, royalties and taxes, out of the Dra-
chma revenue, obtained by the Corporation from the
sales on the domestic market nnder the terms of Ar-
ticle 12. When the Dracl1ma revenues
exceed its cash operating requirements in Greek cur-
rency, the Corporation shall be permitted to remit
abroad such Drachmas surplus funds derived
the local sale of hydrocarbons. remittances shall
be made by the conversion of Greek currency into
U.S. dollars andfor, after agreement with the Bank
of Greece, into some other currency convertible into
U.S. dollars. However, the Corporation shall also, and
alternatively, be permitted to retain such Drachmae
surplus funds in Greece and to invest such funds in
interest-bearing deposits or securities or any other
form of investment not barred to foreigners by the
general laws of Greece. The provisions of the Greek
legislation from time to time in force regarding the
blocking of claims of persons permanently residing
abroad and executable in Greece, and the blocking of
shares, bonds and other assets, are not applicable in
these cases. Investments in the stock of
shall be subject to the approval of the Greek State,
which approval, however, shall not be withheld ex-
cept for reasons of undne financial risk involved in
said investments.
3. a) The Corporation . shall also have the right to
retain abroad, and freely to dispose of, all cnrrency
proceeds that are surplus to the Corporation's cash
operating requirements in Greek currency, including
but not limited to the proceeds from the issuance of
stock, any form of loans and other advances, foreign
currency revennes obtained from export sales of
drocarbons under the terms of Article 12 or from other
sources, as well as Drachmae surplus funds remitted
from Greece under the provisions of this Article.
b) Conversely, shotlld Drachmae revenues from the
local sale of hydrocarbons be insufficient to cover the
Corporation's cash operating requirements in Greek
currency, then the Corporation shall exchange for Greek
currency, through banks or agents officially autho-
rized to, deal in Greek currency and foreign exchange,
U.S. dollars or foreign currency freely convertible into
U .S. dollars in amounts sufficient to meet its
operating requirements in Greek curency. '
c) Notwithstanding the provision of the preceding
b) of item 3 ), tl1e State will
the to make Greece
in ('l!I'fencies not freely convertible to pro-
' i ( l :
(1) Said currencies have been the
l1ydrocarbons exported from Greece. ""
(2) Corporation is unable to maint Hin in-
crease. its ,v?lnme of export sales, if it on ))Hy-
nL

tiblL into l'.S.
(;)) StHle in il:; o\\n
the use of currencies l'easible
its existing internalionnl payment ar-
s.
4. It is also of
proceeds abroad of this
shall enable the Corporation to fnllv all its fo-
reign expenses under .\ inclu-
ding the purchase and(or hii"ing of machinerv
materials and services of any natnre wha:
tsoever, as \viJl be by for its
operations undez: Agreemenl.
5. I<or purpose of OraciHnnc
venues surplus to the Corporation's
quirements in Greek cnrrency and
shall mean all Drachmae fnnds not
Corporati.on's oblig:ations and paya-
ble 30 day in GI'eck cnrre!l<:y
or local operating expenses,
royalty payments and other local currency
6. The Bank of Greece, banks agents of-
ficially authorized to deal in Greek cnrrency fo-
reign exchange, make available of
U.S. dollars or other into .s.
dollars requirecl by Corporntion to
surplus funds from Greece. Such foreign exchun"e \vill
be made available without any delay
whenever the fnnds are uppliecl for, npon the atte-
station by the Corporation proposed
sion represents a remittance of to
Corporation's cash operating rcquirements for tl1e en-
suing 30 clay period in Greek cunency. Howcver
Corporation shall undertake to Bank
it.s agenls weekly
statements as may be lJy the Bunk of
or its agents to that remittances of !'unrls
effected by Corporation in the re-
vie\V of
.under the terms of this
7. case Corporation in any
its or immovalJle assets, either f)'()rn
abroacl in 1hc Bank
gh banks or agents officially authorized to deal in
cnrrenc:y and foreign wiJI make aYnilabJe
promptly and deJay to the Hll
U .S. doJlnrs conesponding to t he HffiOUDt in
Drachmnc obtained by means of
8. a) the of uut its
nnder tllis shall l)e
te(l to buy all(] sell TorciR'n any !Jnnk
or agent officially to c,reek
and foreign and at a not less
favurable to lhe rate ge-
nerally HYailable to J'irrns Oil of transac-
tion. In rnte of a<:<;onnt
shall be taken of nH snrh
ges disconnts, exchange taxes Hn<J fees of any
kind \Vhatsoever
1
as the Greek State might autl1orize
or impose and which effectively are a part of the cost to
844

firms, as mny bc, of buying or of selling foreign
cnrrcncy.
b) fnrther: in the eve_nt the Greek State
ever a S)'"St.em of rates of exchan-

01
of multiple export premiums and import
of exchange at the
bc to buy and sell shall
nlso J>c JAss favorable the \Veighted average of
i vc rntes lawfully realized by other
t of from Greece: Such
be ":1thout

if on a bas1s, and
s!JHII be kept as as possible, as
lut.esl available trnde statist.ics or if neces-
esLirnntcs for value of

books accounts as
(;reek the
iLs of accounts only, all of
and as
its export sales and
t.o Drauhmae at the rate
in lhe item 8) of this
is entitled to
on day on
the Corpora-

10. [I' Unnk should abandon
ils fixing !Juying selJing rates for U.S.
of U.S. dollars as speci-
12) of 12 under the preceding
, be by a recogni-
by Greek State
;rHI rates to be certi-
selling rat.es
l'or 8)
Ne\v
on t
is of rnt.e:-; of CXf:hHn-
<'t'
lo
(; ,,. /{s to
IH (



ol' Hll if.s
1101'(

Hllllllill
!'0\'('l'i j I [. in
.
, HR l'ossi!s,
ol' oil Hll<l \\'U-
1 f'l' l>y in its 0\Vll
il
f SlHLt] right to
tlH'
for ils O\Vll
io'1 unly
not creute

not. if.s in any manner

:J. I I'
l1v of
daln ion "l>tninetl of
exploration
the Corporntion t.o the (:;reek State in qua-
druplicate ull sciantific duta collected during its
ti')nS including data andjor from the
Corporation's contraci,ors, provided, all
information of the Corporat!on and
and affiliates, and any and
tations arrived at by of t.hese
the study of factual data, sh_all be. cornmu-
nicated to the Greek State solely at the of the
Corporation.
\Vords scientific are meant to include
following:
a) }'or Seismic . :
(1) Complete series of seismic
for all seismic profiles measured.
(2) Complete results of velocity determinations by
refraction method.
(3) Complete series of all maps prepared speci_fically
for maps of iso-chrones or for each
or phantom horizon.
( 4) Technical report on field methods employed.
b) For the drilling exploration: '
( 1 ) vVeekly progress covering drilling opera-
tions.
(2) Stratigraphical and lithological log of the drill-
holes.
(3) Continuous series of cutt.ings.
c) For the measurements the drilled area:
Schlumberger (the different loggings ).
Copics of recordings for the following measurements
drilled area:
( 1) Electrical resistivity logging.
(2) Self -potential logging.
(3) Gamma Ray and neutron logging.
(4) Speed of seismic \vaves (velocity logging).
(5) Laterolog-Microlaterolog.
(6) Dip strike logging.
In to the above mentioned documents the
Company is obligated to submit to the Ministry of Na-
tional copies in qnadruplicate of geo-
logical and chart.s.
4. The Corporation shall the Minist.ry of N'atio-
nal of any by it for the drilling
of any wells, of the commencement. and completion of
any flrilJing- operation and of their interruption and of
the discoverv of
This obligation is .in addition to the obligation of
annual reports mentioned under
it.em 2 above. .
C>. Financial reports of shall be sub-
by the to of National
Economy within months after the end of each bu-
siness period.
The Ministry of National and other
rized services shall have the right to at reaso-
nable intervals and reasonable notice the official
re?ords and books of the Corporation in order to ascer-
the accuracy of the entries, ho\vever in such a man-
ner that the operations of the Corporation are not hin-
dered.
. 6. Authorized representatives of Ministry of Na-
and especially of the scientific and te-
of the Greelr State shall l1ave the right
to and observe the activities andtechnical
operations of the Corporation in oder to be kept inform-
to know detail on tl1e progress of same. These
shall be out in such a manner that the cur-
rent operations of Corporation are not hindered ..
7. the except.ion of generalized figures the
meterage drilled, the of \Vells and the total
p_roduction of hydrocarbons per field, all data, informa-
reports and material submitted by the... Corpora-

845
tion to the Greek State shall be treated by it as confi-
dential, unless the Corporation advices the Greek State
in writing respect to any specific that
it relieves the Greek State from its obligation.
shores, of any lorntion:c; iH
port shores and in bnys fM
hindered loading of
and \Yf'JI as to instai-
necessary for on
bays aS \Vell as SCa [}}(
of the Army NaYal IH'
\Yithont scrions
8. As an exception to the above rule, the Greek State
shall have the right to communicate to third parties
. for purposes of scientific publications or other purpo-
ses, the scientific or technical data and information sup-
plied to it by the Corporation three years after the ter-
mination of the Corporation's rigl1ts \Yith respect to any
specific exploration area or concession to \\hich this in-
formation applies or immediately upon termination of
this Agreement. The Corporation shall not unreasona-
nably withhold its consent concerning request of the
Greek State to publish or communicate to third Parties
for publication or otherwise, earJier than stipulated in
the preceding sentence, specific parts of the information
supplied to it by the Corporation, if, in the Corporation's
opinion, this may be done without harming its interests.
Article 15.
4. Any delay in the of ion
and in the of its 1/Ji::; .\-
greement "'hich is Jark an)' <H'I or
any public authority or
operations and \vhicl1 cannot be
diliqence or appropriate action by
be considered as also con-
sequences of <<forre
16.
lJse
Occupation of land Right of \vay - Right to use
and bnilding materials
1. For carrying out. Corporat.ion's opcrations 1111-
der Agreement, of gco-
physical snrveys dril\ings, t!1c ion
l1ave the right to thc of
Sub - contractors.
1. The Corporation shalll1ave the right to and
Use any indemnity, and after approval by the
Greek land as \Vell as and
water, and sites, if they are not leased, wh1ch are
necessary for carrying out the operation under
this Agreement as long as they belong to the Greek
State. In case the necessarv Iands belon to private
persons or other entities, their occupancy will be
effected on the of existing Iegislation.
2. Under reservation on the above, expropriations of
property third parties, necessary carry
out and exploitation, including
underground or surface water or
be carried out in favor of at the expense and
care of the Corporation. The provisions of the Mining
Code relating the protection of property and ex-
for the needs the exploitation
as well as the remaining provisions of Ia,vs
rnines and the applicable general or speCial laws,
are applicable in the present case by. as
long as they do not conflict with the the
present Agreement and of law 3948/1959 re : hy-
drocarhons.
3. The Greek State, municipalities and
ties as well as or possessors of rural nn-
rnovable are obliged to grant the of
way underground pipelines, for the of
orfand in case such such
installati9n is or opportune, for the
of such pipelines the surface. Furthermore,
the above mentioned are obliged to accept any neces-
sary work for use, maintenance,. or
repair the above In case, t?rough the exer-
cise of the above rights by the property
or rights of per-
sons, physical or Iegal the of the
or rights of the Greek are .an
indemnity will be paid by the to them,
is to be determined in accordance the
from time time in force for the compulsory
tion for the explQitation of mines. means of compu!-
sory expropriation it shall be to create
tudes in favor of Greek State e-
xisting provisions, for t.he use of the Inde-
mnity having to be patd by the Corporat!on. .
The has the nse,
compliance with the of 12
Law 1540/1938, of La\v 2344/1940 sea and
2. The full text of all Con-
tractors and Sub - as per itcm l)o
communicated by t.he Corporation to thc St atc.
3. The of t t t 7 of lhe
Agreement shall apply t.o Corporation all\l
above -
their foreign personnel .
the present Agreement will apply only
tion and to foreign Contractors Snb-
4. The fees paid the Contraclors an<l
ctors by the Corporation dnring nny
shall qualify as investment of 111
meaning of Article 3 of this ,
5. The work carried by Snl)-
of the sl1all
carried by the in r_neaning. ot'
ticles 4 and 6 of this Agreement.
above, in this case too, the Corporat.ion.
to all nncler :\greem<)ll/..
Article 17.
of Greek and Foreign Personncl
1. The Corporation the to
for its operations in Greece
and specialized administrative personnel, her
Greek or foreign nationals, as it <lcems
conduct of its operations.
2. Upon Corpora.tion St l:llo is o!Jii-
gated to approve for entry Gr?cce.
mits for staying, 111 <
the fore!gn personnel
t.em 1) above, except there are
affecting public a
which also applies to employed persons of (.'rer:k
nality. Such non - of these 111
dance with the shall be 1 t
to the management of In (rreec:c.
3. The foreign employees oftl1e sh.ull
to the payment of Gre?k .rax s1x ((J)
after the of
work permits, but only <Jll t.he salary !Je
to them by the for
Greece. The salary to be taxed, whet paHI
in Drachmae or abroa<l in foreign
that as an expensc in the hooki\.
In addition these employees IJe .tu be-
nefits of 2548/1953 ratifying the het\ve-

en the States of America and the_ Kingdom of
Greece for the avoidance of double Suc? re-
sidence of a foreign employee in shall
the day he is granted the regular w.orklll,
permits. Absences Greece of more that con-
secntiye days at a shall be added_ to the month
period in establishing the date on a em-
ployee shall be liable to payment of Income Tax.
The foreign employees of the sh_all pay
all other Greek taxes in accordance from
me currencv. The Corporation's tax retnrns to the
be denominate? in Drachmae,
the rnle for conversion of currency amonnts
set in items 8) and 9) of 13.
Article 19.
timc to time in force.
ft. The Corporation shall be to
nationals in all jobs not
technical or administratiYe skill. \Vith to Jobs
requiring specialized skill, it shall be of the
Corporation to employ as many Greek as
})e available from time to time and as the
in ils deem practicable for
ont of its operations under this Agreement.
Manaaerial and Freedom
The Corpo;ation shall fuB! and com-
plete managerial and the C?D-
duct of its operations and the_
of this The Corporation shall_ha_ve complete
freedom to determine and to carry ont I.ts o_wn
jndgment it,s investment policy, as as 1ts
and programs, except as
provided for in this . The Greek State, ho-
wever, any time hours and thro_ngh
its competent snpervis?ry reserves the
to the books an_d re
cords of the Corporation's Greece or-
der to ascertain the expenses related thereto.
Article 20.
Surrender
!J. With respect to labor accidents which may occur
the operations under this Agreement, the Cor-
poration is JiabJe nnder the provisio_ns of the. Penal and
of (;.reece, \Vithont the. of
courr-;e t ion accordance with Article 26 of
Agrcement. Also the Corporatio!l m?st com_rly with
Regulations of force Greece
operations.
1. At any the of this
the Corporation sha1l have t,he to surender vo-
to the Greek State all or any part of any all
exploration areas that time held by the
provided, however, if only a part of an exploration
area is surrendered such part shall measure not less than
6. HHJ Corporation shall be obligate? ,vith
year follo"'ing the year of of
as per 5, items 1) 2 ), to
for eacl1 ear t\VO one
l1y and the other by the technical ser-
vices of (.;reek State, it being t1>.at :
fifty ::;quare kilometers. . . .
2. At any time dnring the of Agreement
the Corporation shall have the right to surrender vo-
to the Greek any or all of the develop-
concessions held by it that time.
3. As from the date on which any voluntary
is effected nnder items 1) and 2) above, all the r1ghts
and obligations of the Corporation relating to a surren-
derecl exploration area (or p_art thereof) or. to a
deYelopment shall
ded, however, the Corporation shall have _all
the obligations relating to the snrrendered
area ( or part thereof) or to t,he surrendered development
concession, up to the date of the surret;tder and
a]so the shaH have the
re]at,ing the de-
concession as stipulated 3 of
this Agreement end of any of the years
in said 3, during which the surrender occurs.
oc) of the will be paid by
Sta
l1) shaJJ l>e on
of be
on the basis of
l1y (;rf'ek with the scope of
I rnirH'C gHin expe-
in of exploration for
of
for 1 rainee normaJiy
l1r six anotl1er mnt.nal!y satisfa-
is the Greek
in no e:1sc lle more

perr-;on of for position of
l>y State be to
l1y Corporation, may
it' in opinion
is for }Jj:;; assignment. Tl1e Cor-
r-;/Ja\1 alr-;o tlH' riA'ht. t,l1e
( Sl ate raince by the
I inn' r or I same above. 0\Vever
I hc ioned t.he(.-;reek State :;;hf11l
t nominat.e a

Bonks of
of acronnt of Cor-
ion in Rl1a1l lle by Corporation in
if 1 so
nlso in l in \Vit.l1 the
A"Pnerally rn]es of acronnting
in the of Greek Tax
nata.
Corporat.ion r)ermitted to its expenditnres
nau its inYestments t!.S. doJlars and t.o keep it,s books
of acconnt finanriaJ st.atements in this sa-
Article 21.
Fines and Forfeiture
Termination of Agreement by Expiration
Fines:
1. As a penalty for the transgression of any of. the
of and for the
the Corporation's obligations under it, except as
other,vise provided for in this Agreement, the Greek
State may, thirty days aHer having given a written
ning to the Corporation, at any time during the
of Agreement, impose fines on the
wl1ich shall range from U.S. dollars 1,000 to U.S. dolla!s
5,000 for each transgression, provided, however, that
case of repet,it,ion of the same transgression after the
Corporation has written warning from
Greek State the f1ne for such repeated
may go np to U.S. dollars 10,000 and provided
that in the cases specified herebelow a) to f) the
may reach up to U .S. dollars 250,000 for the first two
and U.S. dollars 300,000 after the first two years;
these cases are limited to the following:
a) Non-compliance with the investment obligations as
stipulated in Article 3.

()f. ...

b) Non:.compliance with the working obligations as
stipulated in Article 4. .
c) Non - compliance with arbitration award ren-
dered in pursuance of the stipulations of item 4) Arti-
cle 6.
d) Failure to pay assessed royalties as stipulated in
Article 9.
e) Failure to supply the needs of the domestic market
as prescribed under Article 12.
f) Non-compliance with the prescriptions of Article 23
regarding transfers.
2. The of a fine as per item 1) shall be no-
tified immediately in writing to the Corporation and
the fine shall be payable by the Co'rporation within thir-
ty days from such notification provided, however, that
the Corporation has not initiated procedures for reme-
dying the transgression or non-compliance before the
expiration of said period of thirty days and has not con-
tinued same without delays and interruptions in order
to eliminate the transgression or the non -compliance, or
did not have recourse to arbitration under Article 26
within the said period except in the case of a transgres-
sion as per sub-item c) of item 1) of this Article. Any
such recourse to arbitration shall suspend the effecti-
veness of the fine for the duration of the arbitration pro-
ceedings. Should the award of the Arbitration Court be
against the Corporation, the Corporation shall have
thirty days after notification of the final award within
which to comply therewith and compliance by the _C?r-
poration within this period shall render the
of this fine null and void.
Forfeiture
3. The Greek State shall have the right, thirty days
after having given a written warning to' the Corpora-
tion, to declare the Corporation forfeited from its rights
under this Agreement in the following cases:
a) Non-compliance with the investment obligations
as stipulated in Article 3.
b) Non-compliance with any of the final a\vards ren-
dered by the Arbitration Court foresee_n i!l Article 26_.
c) Non-compliance with the o.f
23 regarding transfers. . . .
d) Failure to re-instate the guarantee the
amount of U.S. dollars 250,000 or 300,000 (three hun-
dred thousand) three months after this guarantee beco-
mes less than U.S. dollars 250,000 or 300,000 (three
hundred thousand) for any reason whatsoever due to
the fault or negligence of the Corporation at any time
during the validity of this Agreement.
4. The forfeiture, as per item 3) above, may apply to
all the rights of the Corporation under this
or only to specific exploration or at
that time held by the on the
fact as to whether the non-compliance or the default of
the Corporation applies to the Agreement or to a
specific exploration area or In case of total
forfeiture the Agreement shall as of the effe-
ctive date thereof.
5. The decision of the Greek State to declare that
Corporation shall forfeit any or all of its rights under
Agreement shall be notified to Corpo-
ration and the forfeiture becomes days
after 1:1'uch notification, provided, however, that Cor-
poration has not initiated procedures for the
non-compliance or the default before of
said.period of ninety not pro-
cedures without delays and or. not
have recourse to arbitration under 26 the
said period, except in case of non -?OmJ?liance within the
time limits specified by the Court as per
sub-item b) of item 3) of AIIicle 21.
conrse to arbitration snspend the effcctinnrss of
t.he forfeit.ure for the of arl)itration
Should the of tiH' Conrt /)c
against. t.he
t.hirty days after notificat.ion of t.IH:> final a\Yard
\Vhich t.o compl) t
poration wit.hin this shall t
of forfeit.ure nuH and Yoid.
6. The prior concurring opinion of Conncil of Mi-
nes is required the imposition by l\liniRter of Na-
t.ional Economy of any fine on or for
t.he declarat.ion of any forfeiture by of
it.s nnder this Agreement, and a of
this opinion shall be sent to t.he
with the notification mentioned in iterns 2) n11d !')) of
this Article.
7. The notifications nnder 2) and 5) of
cle be given as soon as possible no more
two months from the on which
or non-compliance becomes kl1o\vn Greek

8. a) Termination of by expiration
shall place. when of of a\1 ex-
ploration and deYelopment any
t.ime held by the Corporation nnder a11d
all of periods of
b) t.he of the preceding
snb-item a) if Corporation during the fifth (5th) yenr
from effective date of this (the
year of the renewal period referred to in. J) of
cle 2 of this has
of an additional well (in excess of the three
wells provided for by item 1) of 3 hereof)
such operations are st.ill pending the end of saHl
year, of this shall_ be anto-
date of the
said operat.ions and of drilling of a deep \vell, 111
sense of item 7 of 4 hereof, or nntil of
expiration of six from the end f)th
year, whichever of these shall be earl1er.
9. In case of of this l)y
(item 8 above) or by forfeiture (items J, 4)
and 5) above) or by snrre11der (Article 20 ), Greek
State shall not be to a11y claim for damages or
any other indem11ity by reason of snch (it
being except _case of
all of ac-
crned up to date of snch have to
be complied by the
plicable n11der 3) of
20 ). This in no be
to pay to the Greek deposited gna-
rantee in case of tot.al as above.
22.
Disposal of Corporation's
1. At t.he of rights of t.he Corpora-
on any area, or or on
any flevelopment. co11cession, _for any of_ the reasons
2() and 21 of Agreement,
all the wells drilled by 011
rat.ion area, or thereof, or. on the
concessions, respect t.o the. s
have
carbons or the
in wells, shall be t.urnecl over to the Greek
by the Corporntion free of charge.
wells mnst be properly plng-
ged by and at the expe11se of the Corporation anfl any
potable water-bearing horizons must be properly shnt

off in snme manner. prodncing \Ve1Js shaH be
to the Greek State in full \Vorking order,
it l1eing that the Corporation
IJaVO a!J gathering,
st 1.reatment and
to extent can be done \vithout
cJamaging or enclangering the
2. as it.em 1) of Article,
l shHJl t he to dispose
in (tny of all its movable and im-
anrl of any rights of any na-
ture rJ periocJ of valiclity of this Agre-
of same for
Hny this movable or im-
y is Jocated \vithin or
011 ar-eas development
(:onr:es:;ions of
11 O'A'cvcr, Corporation desire to sell
or and any other
nn.v an exploration area
or to the
havc terminat.ed, the Greek State
to all or any
of immovable property and
of' at market
11nring vears of valiclitv of each
by the Corpora-
no sales of immovable pro-
Corporation located within
rl.eve)op.ment ronrrssion be permitted without
t of Gree){ Statc. case
is not. given immovable property
t hc of the Greek State free of
expirat.ion of valiclity of snch deve-
/,
11' nny of present

of Corpora-
or property
of snch sale exceed the
HS samc is on the
on of sale
t.hc rates in
be:
t.o gross of Corporation
snl.t) of the
fH't'Jt)(), J)roperty was
J'or purposes
ol of 10 ot' this
; total cx-
t ionNi in of
10. t il' salc of is macle
dnring Corpo
gross the
snlf'
on of snch sale of
fnll of lJOok valne of the property
sha/1 l)e allowed as a
of the Corporation
t penod \vlnrh sale took place
ns in l) h) of
to rosts expen-
nntl :}) of' \ 1
1
()
r I
. \ . . r e
() j
6. ion still any kind of
nss?ts movable
or else\vhere two years aft
t I . t. f } . , . er
, . t. such assets
be by 1he the proceeds of
be eqnaJJy bet.ween the
(.reek St.ate an<l t Corporation, it being understood
that the Corporation's share in this liquidation shall
not be subject to any taxes whether direot or
or of whatsoever kind or nature, duties, fees, withhol-
dings and/or contributions, or any other special as-
sessments, whether levied regularly or which might
be levied occasionally for special purposes, in faYor
of the Greek State, or any Greek anthority or
entity and, in general, of any third party. '"'
7. All amounts in Drachmae by the
ration through the free disposal of its movable an(l
property and of any rights of .any nature,
located in Greece, in of item 2) of this
ticle, shall be convertible into U .S. doHars at the rate
and under the conditions. stipulated in Article 13.
Article 23.
Transfers
1. The Corporation shaH have the right to assign
in whole or. in part this Agreement and to transfer
under conditions freely agreed by it any rights
t,o it under this Agreement : b
a) to another Corporation controlled by the assi-
gnor whether existing 01' to be created by the assignor;
b) to another Corporation contro1led by AN-CAR-
OIL Co., or by another Corporation controlled by
AN-CAR-OIL Co.
c) to any other third party, in this case, however,
only the written approval of the Minister of Na-
Econ?my, which approval, given in the Mini-
:ster s free Jndgment shall be limited to the person,
'vhether physical or jnridical, of the assignees.
. 2. The Minister of National Economy may, however,
the transfers foreseen under item 1
:a) and b) of this Article for reasons of nat
1
ional secn-
rity.
3. In case of transfers as per item 1, sub-itemB a)
:and b) above, Corporat.ion shall be held responsible
the Greek State, jointly and severally with
the for the fulfillment of the terms and con-
dit,ions set forth in the present Agreement.
4. In case of transfers as per item 1 ), sub-items a),
b) and c) above, all the carried out investments of
the Company, conformable to the present Agreement,
<Jharges and expenses as well as the carried out revenues
bc considered the assignee's, according to the
p_resent Agreement, the investment obliga-
t,Jons and the taxing.
Artiole 24.
Applicable Laws
1. The Greek State to the Corporation
that no general or law, or a.ny administrative
measnre, termlllate or in any manner amend this
nnless specially agreed to by the Corpo-
ratiOn.
. 2. The Corporation and its operations and property
In shall. be subject to all Greek Laws and Regu-
latiOns from to time in to the extent that
.are not in confJict \vith the terms and provisions
of Agreement.
3. Should snch a conflict exist either today or in
the the terms and of this Agreement
of the or Amendment Agreement,
any, to be entered as provided in Article 37
Item 3) belo.w, shall prevail and the stipulations of the
La,vs and Regulations \vhich are in
the terms and provisions of this Agreement
of the or Amendment Agreement,
any, shall have no effect as far as the
orporat10n and operations and property in Greece
are concerned.

849
Article 25.
Force Majeurc
'1. Failure by the Corporation to cany out any of
its obligations under this Agreement shall not give
to any claim and shall not be deemed to be a
transgression of this Agreement if such failure is due
to force majeure .. This expression shall include but
not be Iimited to acts of God, epidemics, earthquakes,
fires, explosions, floods, casual occurrences war,
revolution, civil commotions, insurrections, riots, stri-
kes, acts of public enemy, blockades, any act of the
Greek State or of any Greek authority or of any foreign
Government and any other unforeseen act or circum-
stance beyond the control of the Corporation. If by
reason of such force majeure the compliance of the
Corporation with its obligations or the enjoyment of
its rights under this Agreement is delayed, the period
of such delay shall be added to the periods fixed in
this Agreement for such compliance or sucl1 enjoyment.
2. Should the status of force majeure due to one
or more causes continue for more one continuous
year, the Corporation shall have the right to surrender
to the Greek State in writing all its rights and obliga-
under this Agreement and upon such written
snrrender this Agreement shall terminate. U such
snrrender the Corporation shall be relieved from all
its obligations of nature vis-a-vis the Greek
State this Agreement, and the Greek State as
well as the Corporation shall not have any claims against
each other for the non-fulfillment of any of the terms
of this Agreement by either party and will deliver to
each other complete and unrestricted written release.
Article 26
Arbitration
1. Except as statefl under item 2) of tl1is Article,
any controversy arising bet\veen the Greek State and
the Corporation \Vith respect to this Agreement shall
be settled by arbitration in accordance with the pro-
visions of Article 28 of 'Law 3948/1959 re : reconnais
sance, exploration and exploitation of liquid and ga-
seous hydrocarbons.
2. However, in the case of imposition of the penalty
of forfeiture as determined in Article 21, or of con-
troversies concerning differences, disputes or disagre-
ements as regards the interpretation and implementation
of the of this Agreement which entail the
penalty of forfeiture, as \vell as generally in cases cove-
red by Artic]es 3, 4, 6, 12 and 13, tl1e arbitration is
carried out in the following manner :
The party desiring arbitration the
party written notice of its desire the ques-
tions forming the object of the difference, dispute or
disagreement and naming the arbitrator appointed by
it and shall invite the other party to appoint a secoll(l
arbitrator. \'Vithin twenty days from receipt of
notice, the other party shall give tl1e party
arbitration written notice naming the arbitrator ap-
pointed by it. If the second party fails to act
the above time limit, the second arbitrator is appoin-
ted by the President of the International Court of J us-
t.ice at the at the request of the party desiring
arbitration. arbitrators so appointed shall \vithin
twenty days from the communication of the appoint-
ment of the second arbitrator, select by common agree-
ment a third arbitrator, who will be the Chairman of
the Arbitration Court. In the event that the arbitra-
tors do not agree on t of tl1e
or fail to select \Yit.llin nbon
third apJ1ointecl
of the ut on
of ur of
bitrators shall t
the notification to of
above be
common Stat.e
ration. The not by anv of
procedure in cari'ying ont
the to "itnesscs, ont
the of \vitncsses tnkc
any
S?ould any of the
or it,
accorJnnce LJeen fol-
lo\ved for tlliS l'USC
for the shaJI l1e
the period on
impediment l1ecame \vill be
by deed signe<l tl1e
untii the of <=ti'lJitrul
to continue or is
Refusal of any of tl1e to sign
does not cancel the
The decision of thc is
irrevocable and is to any
dinary means of appeaJ.
cxpenses of
fees of as
shall be borne by the
27.
Use of State 0\\nccl
the extent
in a any
ble immovable bclonging to :
a) either as a result of
foreseen in 15 of this Agreement, or
b) on tl1e basis of
Article 15, or
c) by Yirtue of
ments t.l1e
to be t/19 oJ"
operations, the Corporation shall to Lakc
care of this if it were its ownel' snfe-
the of G!'cek Stute
against of an,y I>Hl'lics.

of Greck Stalc Existence
of Rights on tl1e
The Greek State t.hat
lid rights or claims exist refening to
and deYelopmcnt of' hvd rocurbons "i
nal exploration aren in sai<l I.
any claims he thH
shall be Lo to
the Corporation this
interests of
lf, thir<l IJarL;y
right against Lhe il'
be finally !Jy of
Greek the tion ve t.o
terminate lil)erating itseH frorn ull und
850

any of the assumed under this Agreement and
the Greek State shall have to reimburse to the Corpo-
ration all amounts spent by the Corporation under
this up to the date of said termination.
Article 29.
Marketing ancl Refining

1. a any of the
sent the desires to acquHe
right to sell and Greece, petroleum
products pl'Oduced by it in Greece, Greek State
upon the Corporati?n's releyant application, shall be
obliged to grnnt to such rrght under terms and con-
ditions not less favorable tl1ose granted or to
bc by Greek Statc, the date of ap-
to any or jnridical engaged
in andjor rn Greece.
Hefining
2. a) lf at any dnring the validity of this Agree-
the of indigenous oil by the
a in exces_s the amounts
the oblrgatron to supply
under item 3, Article 12 of this Agreement, it shall
also have to constrnct and operate a refi-
nery to refine oil it the
right to export and to export the petroleum products
obtained from this crnde.
b) If at any time clnring the of this Agree-
ment existing refineries as well as do-
rcfincries comc into operation in con-
of agreements Crreek State and
any CoHII'artor be signed before the
l)y t/H) of exploi-
tablc oil, are for do-
not to-
tHI oJ' ont
of own Greek State
be
l1y in of obliga-
tions I :.!, ilern :1, gi Corporation
ull ic to

ci : 1 ) of ion of any
for
to a) cf
it f'Il1 2, 2) i f been constru-
of JH)\\"
t nle <:orJHH'at.ion con-
for of
of ex-
nny in cxcess of

is, Corporation's
ns set in 2 b)
only (1). j[ be the first
of oil in (}reere, or (2)
if I l1c crude oil
GreN'e, is t so, and if those
so or ,,aivc any rights t.hey
might to refincry.
C:orporat rig1
1
t to
or a the provision of
rtem 2 b) above, Greek St ate to permit
terms con-
be agreed upon at the
,ho\vever, that such
terms and conditions shall not be less favorable to
Corporation than those a?corded to other refineries
in Greece with the of the G:veek State Re-
finery.
e) The Corporation shall have the right, after it
commences furnishing products for domestic consum-
ption from a refinery constructed or existing re-
finery utilized under the provisions of item 2 b) above,
to first priorit.y to the capacity requirements ot'
such refinery out of its indigenous crude production :
(1) so as the products from such refinery are
made available to supply the domestic productrequi-
rements of the Greek State, and (2) provided that
the Corporation continues to carry out to the extent
of its ability any obligation it may have under item
3 of Article 12 after giving such priority to the requi-
rements of its own refinery.
f) Nothing in Article 29, item 2 b) or any other
of this Agreement be construed to place
any limitation upon the right of the Corporation or
its parent companies or any of their affiliated compa-
nies apply for the right to establish or participate
in the establishment of a refinery in Greece at any
time.
g) Throughout the present Agreement the term
Greek State Refinery shall mean the refinery exi-
sting at present and owned by the Greek State, even
if assigned in the future to a third party.
3. All rights of the Corporation under this Article
shall be exercised either by the Corporation itself or
by a related or affiliated company or companies, as
defined in Article 23 of this Agreement.
Article 30.
Guarantee
1. The Corporation is obliged to deliver to the Greek
State (General Directorate of Mines of the Ministry
of ational Economy) \vithin fifteen days from the
signing of Agreement a letter of guarantee of a
recognized Bank in Greece for an amount of U.S. Dol-
lars which amount of guarantee will be obli-
gator1ly by the Corporation to U.S. Dollars
300.000 the beginning of the third year from
the effectrve date of this Agreement. This letter of
gnarantee shall cover the good performance of the pre-
and all the obligations of the Corpo-
and all Its outstanding financial obligations to-
wards the Greek State for a period of five years from
the_ effect.ive date, of the Agreement and the Corpo-
wrthout ap.y I_IOtice, shall be obligated to
new at years said guarantee during
of t.he validity of this Agreement
and untrl It, shall exp1re or be terminated. Unless a
new letter of guarantee for the same amount is fur-
nished the Greek State by a recognized Bank in Greece
at least four months prior to expiration of the valid
letter of this Agreement will expire at the
date of exprrati?n of the valid Ietter of guarantee.
The above mentroned amount can be cashed in whole
or in part for amounts which have become finally
payable by the Corporation in accordance with the
terms of this Agreement, provided one month at least
has lapsed from the date on which such amounts have
payable. If these amount.s have not become
frnally payable two months before the expiration of
the Guarantee they may be collected before their fi-
nalization by encashment of the Guarantee unless the
'

---------------------
851
concessionairc Corporation furnishes a of gua-
rantee covering the amount sought.
In case for any reason \Vl1atsoever the original
of the above guarantee l)ecomes less than U .S. Dol-
lars 250.000 or 300.000 the Corporation shall have to
re-instate the guarantee in its original amount at the
latest within three months the date on 'vhich
it becomes less than U.S. Dollars 250.000 or 300.000
under the penalty stipulated in sub-item d), item 3)
Article 2'1. Such guarantee \Yill remain in force, under
the above mentioned conditions even in case that a
transfer takes place in accordance with Article 23, item
1, sub-items a) and b), of Agreement.
. 2. The non-timely delivery of the initial letter of
guarantee, foreseen in item 1 of this Article renders
the present Agreement null and void and will be con-
sidered as not having been
3. Also, in case the Corporation does not deliver
in time the supplemental Letter of of li.S.
Dollars 50.000 before the beginning of the third year
from the effective date of this Agreement, as per pa-
ragraph 1 of the present Article, the Greek State will
have the right after thirty days \Vritten notice, to de- '
clare the Corporation forfeited from all its rights
der this Agreement.-and to levy on the existing
ter of Guarantee up to that date of U.S. Doliars 250.000.
Article 31.
Exemption from Stamp Duties
The present and transfers in accordance
with Article 23, of .this Agreement, are exempt by
virtue of Article 27 of Law 3948/1959, from stamp
duties &nd contributions, fees and remaining char-
ges of whatever nature in favor of the Greek State
and of any third party.
Article 32.
Effective Date of Agreement
1. The present Agreement is subject to the timely
deposition of the guarantee referred to in Article 30
and its ratifi{)ation by the 1egislative after
which and following t.he effective datc of ,the Law ra-
tifying it, its effect and consequences commence.
2. If is ratified with
the Corporation shall not be b?und by and .
have the right to completely from A-
greement. However, the Corporation is
declare its non-acceptance of
writing within thirty days from of
Law ratifying this Agreement
the Covernment Gazette.
In case such is not submitted in
time the Corporation is considered as having accepted
such modifications.
3. In case of modification by the legislative autho-
rity of the provisions of this . and in
the thirty days limit of the of
Article has lapsed without action by the
the effect of this Agreement the ex-
piration of the above thirty day
Article 33.
Communications
Any of the Greek State to the Cor-
and Yice vorsa basis of present
shall only be valid if it is ''en
receipt or sent regist.erecl lettcr re-
ceipt and is addressed to :
a) For of
Greek State to :
Mini$try of National
General Directoratc of l\1ines
Athens- Greece
b) for of the Greek State to AN-
CAR-OIL Corporation Inc. to :
cfo Mr. John D. Fotopoulos, Connsellor at
Law, 27 Xenocratons street,
Athens-Greece
who is appointed Process Agent (Antiklitos) of the
Co'rporation in Greece.
In case of revocation the Agent,,
the Corporation must revocation an<l
full name and address of tl1e ne\v Agent ser-
vice of notices, who mnst be a of
until such time notices are YalidJy on al>O-
vementioned agent.
34.
Letter of technical and financial assistance
AN-CAR-OIL Co. Inc. declares in the event of
transfer in accordance with Article 23 item 1
a) b) and c) herein to a specified entity, it shall by
of a separate letter addressed to the Stat?,
accordance with the draft ma<le by Gree]{ Stato
and the Corporation ancl initialled by toclay,
nndertake the obligation, detaile<l to rendrJr,
in the event that this Agreement be hy La\Y
and throughout the perioc1 of of said
ment. all technical and financial
to attainment of the objectives of
and to the of its obligations arising
refrom towards t,he Greek State and especially of
as set ont in the above-mentioned letter. above
]etter has to be a for every _ac-
cording to the 1, a) b) ancl r.)
23.
Article 35.
Protection of Invcstment. Under Derroc
. 2687/19S3.
The Greek State shall grant t.o the in
any case before the beginning of the work
for in Article 4 of t.his Agreement, the pro-
vided for by virtne of Legislative De?rce
re : protect.ion and investment of for
the capital of any nature and form that he
ted from abroad, necessary or nsefnl for the
mentation of the objectives of this ac-
cordance with the foreseen 1n
Article 36.
Payments to the Greek Statc
Any claim for of the _Greek State
against the CorporatJOn Jll accor<lance pro-
visions of the present Agreeme_nt, aR Jong as
is no provision to the contrary tl1e prcRent
ment_, is payable within one month the


relat.ing thercto from the Greek State to the Corpo-
ration. Possil)Je of the Corporation to arbi-
tration \vithin above month in accordance \Vith
provisions of 26 of the present
suspends the obligation to make the
ent.ire of the arbitration pro9edure and
onc month from tl1e notification to Cor-
poration of the fina] award relating thereto.
Article 37.
Good Execution of Agreement
1. relationship bet\veen the t\VO parties shaH
l>e as to foster and maintain a harmonious spi-
rit of cooperation at aJl times during the term of this
Agreement.
The parties expressly agree that provisions of
shaJl govern the rights and obligations
of parties in carrying out the exploration
exploitation of hydrocarbon deposits in the
and sea area as in Article 1 hereof
that this Agreement embodies the entire under-
of thc parties hereto and that there are no
agreements or \Vritten or oral
than of this Agreement and annexes
thereto.
. 2. I?arties that no provi-
of Agreement shall be amended, snpplemen-
ted, or by mutnal agreement between
t in writing and signed by
of the contracting parties.
38.
V Texts
present been execnt.ed in the
(;reek and texts be
force. .
r \\'i[ne:;s Greek and Cor-
on one
onl,y
22-1-1972
t Greek t.e

of Ecnnomy
l'or .. Corporatinn Inc.
.JOIIN C. STERGE
Special
S C JI J) L R'
Costs, Expcnses and Charges
1: items of expenses and charges referred
t.n _Jtem 7 ?f 10 of the present Agreement
to attached are as follows :
costs of goods or services
l)) Administrative, anfl ex-
contribntions, patent costs, Iicensing
lees an<l research
c) allowance amortization of physical assets
( e.g. of of 20 cent per annum and
a!Jowance !or of 33.1/3 per cent per annnm
of do result in the acquisition
or. of (e.g. expenditure for the
of wells, for geophysical research ).
Amortization for buildings in big towns is limited to
a percentage of 5 per cent per annum and that for
pipelines for the transportation of hydrocarbons to
10 per cent per annnm. Any more favorable amorti-
zation percentages or other taxation incentives in force,
or to be imposed or granted in the fnture, will not be
applicable in case, except if_ these apply to similar
enterprises.
d) Allowance for expenses on sale of hydrocarbons,
inclnding brokerage and selling services
e) Losses from damage to or destruction or of
property used, produced, manufactu:red, or sold, and
not compensated for by insurance or otherwise, inclu-
ding losses arising from bad debts, claims for damages
and difference in rates of exchange in converting cur-
rencies. '
1

f) Interest indebtedness to be limited to two thirds
(2/3) of all interest paid on all amounts of loans and
finapcing by. the parent company or affiliated
companies andjor any third parties, \Vith interest rates
to be reasonable and in conformity with normal inter-
national monetary standard conditions.
g) Remuneration and rewards for services by others
whether : ( 1) acueyed or paid directly to them, or
(2) accrued or paid to others for their benefit through
insnrance, pension or other plans ;
h) The remaining unrecovered costs of property
disposed of or by sale, surrender, abangonment or
otherwise, including the unrecovered costs of drilling
wells non-productive of hydrocarbons in commercial
qnantities.
i) Rents or other payments to others for or in con-
nection with the use of any property belonging to
others, snch as land, building, machinery, equipment
etc. ( or in connection with their use) amortization as
foreseen by item 4 ), of the present Schedule
Net losses from operations, as permitted by item
6) of Article 10 of t,he Agreement. '
. k) The Str;emmatikos payment provided for in Ar-
tiCle 8 Agreement, during those . prior
to the period in which net income is realized by
the concessionaire.
1) Exploration expenses and intangible drilling ex-
penses, ( as defined in item 3 of this Schedule) that
are elected to be deducted currently as permitted by
item 2 of this Schednle. '
I
m) All other ordinary and necessary business expen-
ses that may be permitted by the' Laws of the Greek
State prevailing from time to time in connection with
the. taxation of the net profits of limited stock corpo-

2. Exploration and intangible drilling ex-,
penses, both of terms are defined in item 3 of
this _are incurred after the Corporation
'has . development concession, may
be d.educted the bnsiness period during which they
are or may be capitalized and amorti-
zed as provided in item 4 of this Schedule. The election
to deduct or. to capitalize may be made annually by
the for each business period during which
they have been incurred.
3. For .the pnrpose of this Schedule the term
shall mean all expenditures
for a ,deposit of hydrocarbons and for deter-
S::i3
mining its siz13 or expenditures related thereto. The
term shall not include expenditures for materials used
in buildings at well sites, or installations or buildings
at well sites, or drilling equipment, gathering and pro-
duction lines, casings, tankage, motors
1
boilers, machi-.
nery and the like. On the contrary, the term shall in-
clude expenditures incurred for preliminary investiga-
tions and surveys, whether ground, aerial or marine,
all expenditures for geological and geophysical work,
and all other expenditnres incurred in determining the
Iocation and extent of a deposit of hydrocarbons.
The term intangible drilling expenses shall
all expenditures for labor, fuel, repairs, maintenance,
hanqlirig of supplies and materials which are for or
incidental to drilling, cleaning, deepening or completing
wells or preparation therefor. The term shall not include
such expenditures for materials used in buildings at
well sites or other installations, or drilling equipment,
gathering and production lines, casing, tankage, mo-
tors, boilers, machinery and the like.
On the contrary, the term shall include such expen-
ditures for drilling, dynamiting and cleaning \Vclls,
clearing, draining and leveling of land, roa(l
measurements or snrveys preparatory to drilling, and
erection of rigs and tankage, of pipelines
and other installations required in tl1e or
drilling of wells producing hydrocarbons,
4. Should the Corporation elect to capitalize any
exploration expenses or int.angible (lrilling
pursuant to the provisions of item 2. of this Shedule,
t.he expenses selected to be capitalized shall be amor-
t.ized by the Corporation over a period of less
t.hree business periods beginning with the bnsiness
period in \Vhich such expenses are incurred.
For the Greek State
Athens, 22/1/1972
The Contracting parties
For AN-CAR-OIL Corpo-
ration Inc.
G. PEZOPOULOS JOHN C. STERGE
Minister of Economy Special
854



OTI:


'v v
I r,t
1. ..,.,,
400
8' ::::::::::::::::::::::: 400
2. ,, ))
3. ))
. . . . . . . . . . . . . . . . . . . . . . . 300 :
4. ,, , )) . . . ... .. .. . ...... ... . . . 700
5. , )) :>
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6.
7 ))
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200
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............................
2. .........
3.
4.

5.
. .
6. .................... ..
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8.
9. .......... , .....

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8 2, 9 40 5, 41 80 10, 81
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r.'



TC>v ..............
2. . .
3. C>v
. . . . . . . . . . . . . . .
4.
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12.



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13.
mpl

2 4 148/
1967 . . . . . . . . . . . . .

32 3221/24 1 -

59 2. .
3. .. .. ..
.............. , 500 4. "
5. .. 100 5. ..
6. TC>v 2.000 r: ..
7. -
. . . . . . . . . . . . 500 l. 'J1'Et)i
8.
. . . . 300 -
9. .".
2.
-
. . . . . . . . . . . 2.000 ..... ,
500
500
500
200
100
500
500
500

500
10. 11. xal
200

2. .
59
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. . . . . . . . . . . 5.000 5 %
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.
2. hr'

3.
w
192378/3639 1947 (RONEO 185) 178048
5321/31.7.65 (RONEO 139) 'Em
Vrrtp . .