Overhead refers to indirect personnel and administrative costs incurred by the Operator in supporting the venture and allocated to the Joint Account based on equitable allocation keys, primarily through personnel time-writing. Time-writing rates may be calculated by the Operator and, where applicable, externally or statutorily certified for compliance with the relevant Accounting Procedure.

The underlying overhead cost pools, allocation keys and applied rate calculations may alternatively be reviewed within a Joint Venture Audit, if applicable, or through a dedicated Overhead Audit conducted jointly by partners under the same Operator.

Overhead Audits examine the composition of G&A cost pools, including salaries and related costs, taxes, office, IT, and admin expenses. Third-party invoices charged to the overhead pool are assessed for contractual eligibility and appropriate indirect allocation. Personnel costs are tested on a sample basis, anonymized where required. The review ensures that only contractually permitted overhead costs are included, while corporate costs remain with the Operator and no duplication occurs with PCO and cost from affiliates.

Allocation mechanisms, primarily time-writing, are evaluated for consistent and correct application between venture-related and corporate activities. Organizational structures, activity descriptions, and time records are assessed to validate proper attribution. Applied rates are independently recalculated to confirm an accurate cost base and compliant rate derivation.

The objective is to ensure transparent, equitable, and contractcompliant overhead charges, including independent confirmation of allocation methodologies and applied time-writing rates.