Holders and their sub-contractors shall be bound to take out insurance policies with local insurance companies to cover civil liability and damages resulting from the conduct of petroleum operations.

The terms and conditions for such insurance policies shall be laid down by regulation.

The petroleum contract shall lay down the terms and conditions for guaranties and insurance policies which the holder is bound to take out for the State, third parties, the public and the environment, pursuant to the implementation of the code.

Notwithstanding any applicable criminal sanctions, holders of a petroleum authorization or contract who, due to their actions or that of their subcontractors, cause any physical, material or environmental damage shall , without need for proof of fault, be subject to civil liability when such damage is related directly or indirectly to the conduct of petroleum operations, related activities or facilities located

within or outside the contract area. Failing reparation in kind, the compensation paid shall fully repay the damage caused.

Where the State is not a holder, it may incur direct or indirect liability toward third parties for any damage resulting from the conduct of the holder’s petroleum operations.

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