Associated Natural Gas. 13.2.1 In the event that a Discovery of Crude Oil is considered to be a Commercial Discovery, the Contractor shall state in the report referred to in Article 5.3 whether it considers that the Production of Associated Natural Gas is likely to exceed the quantities necessary for the requirements of Petroleum Operations relating to the Production of Crude Oil (including re-injection operations), and whether it considers that such excess is capable of being produced in commercial quantities. In the event the Contractor has informed the Ministry of such an excess, the Ministry and the Contractor shall jointly assess the possible markets and uses for such excess of Associated Natural Gas, both on the local market and for export (including the possibility of joint marketing of their shares of Production of that excess of Associated Natural Gas in the event such excess would not otherwise be commercially exploitable), together with the means necessary for its marketing. 13.2.2 In the event the Ministry and the Contractor should decide that the Development of the excess Associated Natural Gas is justified, or in the event the Contractor should wish to develop and produce such excess, the Contractor shall indicate in the Development and Production Plan the additional facilities necessary for the Development and Production of such excess and its estimate of the costs related thereto. The Contractor shall then proceed with the Development and Production of such excess in accordance with the Development and Production Plan submitted and approved by the Ministry under Article 5.5. A similar procedure shall be applicable if the sale or marketing of Associated Natural Gas is agreed during the Production of a Field. 13.2.3 In the event the Contractor does not consider the exploitation of the excess Associated Natural Gas is justified and if the State at any time wishes to utilize it, the Ministry shall notify the Contractor of the State’s wish, in which event: (a) the Contractor shall put at the disposal of the State free of charge the Crude Oil and Associated Natural Gas separation facilities for all or part of such excess that the State wishes to utilize; (b) the State shall be responsible for the gathering, treatment, compression and transportation of such excess Associated Natural Gas from the receiving point at the Contractor’s facilities and for bearing any additional costs and liabilities related thereto; and (c) the construction of the facilities necessary for the operations referred to in paragraph (b) above, together with the recovery of that excess by the State shall be carried out in accordance with generally accepted practice of the international petroleum industry. 13.2.4 In no event shall the Operations carried out by the State in relation to such Associated Natural Gas interfere with Petroleum Operations of the Contractor. 13.2.5 Any excess Associated Natural Gas not utilized in accordance with Articles 13.2.1, 13.2.2 and 13.2.3 shall be re-injected by the Contractor in accordance with Article 6.14. Flaring will be permitted only in accordance with the Hydrocarbons Law and is subject to the approval of the Ministry. The Contractor shall be permitted to flare Associated Natural Gas without the approval of the Ministry in the event of an emergency, provided that every effort is made to diminish and extinguish such flaring of Natural Gas as soon as possible. The Ministry has the right to offtake, free of charge, at the wellhead or gas oil separator all Natural Gas that would otherwise be re-injected or flared by the Contractor.
Appears in 2 contracts
Samples: Production Sharing Contract (Kosmos Energy Ltd.), Production Sharing Contract (Kosmos Energy Ltd.)
Associated Natural Gas. 13.2.1 In the event that a Discovery of Crude Oil is considered to be a Commercial Discovery, the Contractor shall will state in the report referred to in Article 5.3 5.3 whether it considers that the Production of Associated Natural Gas is likely to exceed the quantities necessary for the requirements of Petroleum Operations relating to the Production of Crude Oil (including re-injection reinjection operations), and whether it considers that such excess is capable of being produced in commercial quantities. In the event If the Contractor has informed the Ministry of such an the excess, the Ministry and the Contractor shall will jointly assess the possible markets and uses for such this excess of Associated Natural Gas, both on the local market and for export (including the possibility of joint marketing of their shares of Production of that excess of Associated Natural Gas in the event such excess would not otherwise be commercially exploitable), together with the means necessary for its marketing.
13.2.2 In the event the Ministry and the Contractor should decide that the Development of the excess Associated Natural Gas is justified, or in the event the Contractor should wish to develop and produce such excess, the Contractor shall will indicate in the Development and Production Plan the all additional facilities necessary for the Development and Production of such the excess in the Development and Production Plan, and its estimate of the costs related theretocosts. The Contractor shall will then proceed with the Development and Production of such the excess in accordance with the Development and Production Plan submitted presented to and approved by the Ministry under Article 5.55.5. A similar procedure shall will be applicable applied if the sale or marketing of Associated Natural Gas is agreed on during the Production of a Field.
13.2.3 In the event If the Contractor does not consider the exploitation of the excess Associated Natural Gas is justified and if the State at any time wishes to utilize it, the Ministry shall will notify the Contractor of the State’s 's wish, in which event:
(a) the Contractor shall will put all or part of the excess Associated Natural Gas that the State wishes to ship at the State's disposal of the State free of charge at the outlet of the separation facilities of Crude Oil and Associated Natural Gas.
(b) the State will be responsible for the resulting costs, responsibilities, and operations in all the additional installations of Crude Oil and Associated Natural Gas separation facilities for that are not included in the Contractor’s Development and Production Plan or all or part of such excess that the State wishes to utilize;
(b) the State shall be responsible additional installations and those already existing, including additional installations for the gathering, treatment, compression and transportation of such excess Associated Natural Gas from the receiving point at the Contractor’s facilities and for bearing any additional costs and liabilities related theretotransport; and
(c) the construction of the facilities necessary for the operations referred to installations mentioned in paragraph (b) aboveitem (b), together with the recovery recuperation of that this excess by on the State shall part of the State, will be carried out in accordance with generally accepted practice practices of the international petroleum industry, without holding back or reducing the Contractor's uncompensated production under the approved Development and Production Plan.
13.2.4 In no event shall case may the Operations operations carried out by the State in relation to such with this Associated Natural Gas interfere with Petroleum Operations of the Contractor's Petroleum Operations.
13.2.5 13.1.5 Any excess Associated Natural Gas that is not utilized used in accordance with Articles 13.2.113.2.1, 13.2.2 13.2.2, and 13.2.3 shall 13.2.3 will be re-injected reinjected by the Contractor in accordance with Article 6.146.14. Flaring of this Associated Natural Gas will be permitted only in accordance with the Hydrocarbons Law Act and is will be subject to the approval of the Ministry. The Contractor shall be permitted to may flare Associated Natural Gas without the approval of the Ministry in the event of an emergency, provided that every effort is all necessary efforts are made to diminish reduce and extinguish such the flaring of this Natural Gas as soon as possibleit is commercially practical. The Except in the case of gas flaring in an emergency or in connection with a short-term test, the Ministry has the right to collect (“offtake”), free of charge, at in the wellhead or in the gas and oil separator all Natural Gas that would otherwise be re-injected flared or flared reinjected by the Contractor, being that the State will pay the costs resulting from such collection (“Offtake”) under the terms of Article 13.2.3.
Appears in 2 contracts
Samples: Production Sharing Contract (Kosmos Energy Ltd.), Production Sharing Contract
Associated Natural Gas. 13.2.1 22.2.1 For the purposes of this Article, Associated Natural Gas shall be Natural Gas which is not considered Non-Associated Natural Gas. In the event that of a Discovery of Crude Oil is considered to be a Commercial Discoverycontaining Associated Natural Gas, the Contractor CONTRACTOR shall state specify in the report referred to in Article 5.3 11.4 of this Contrat whether it considers that or not production of the Production of Associated Natural Gas is likely to exceed the quantities necessary (after processing of said Natural Associated Gas for the requirements purpose of separating Crude Petroleum) exceeds the volumes utilised for Petroleum Operations relating to the Production of Crude Oil (including re-injection operationsand fuel), and whether it considers that such excess is capable of being produced in commercial quantitiessurplus may be available for marketing. In Should the event CONTRACTOR advise the Contractor has informed the Ministry of such an excessSTATE that a marketable surplus exists, the Ministry and the Contractor Parties shall jointly assess the possible markets and uses marketing outlets for such excess of Associated Natural GasGas surplus, in respect of both on the local market and for the export market (including the possibility of the joint marketing sale of their shares share of Production production of that excess of such surplus Associated Natural Gas in the event such excess would surplus is not otherwise be commercially exploitablesuitable for commercial exploitation in any other manner), together with as well as the means necessary for its marketing.
13.2.2 In commercial Exploitation. Should the event the Ministry and the Contractor should decide Parties agree that the Development development for sale of the excess Associated Natural Gas is justifiedwarranted, or the CONTRACTOR shall specify, in the event the Contractor should wish Exploitation Work Programme and corresponding Budget referred to develop and produce such excessin Article 11.7 of this Contact, the Contractor shall indicate in the Development and Production Plan the additional facilities necessary installations required for the Development development and Production production of this surplus and the estimated applicable costs. In such excess and its estimate of event, the costs related thereto. The Contractor CONTRACTOR shall then be free to proceed with the Development development and Production production of such excess this surplus, in accordance with the Development Exploitation Work Programme and Production Plan submitted and corresponding Budget approved by the Ministry under Operating Committee pursuant to the provisions of Article 5.511.7 above, and the provisions of this Contract applicable to Crude Oil shall apply "mutatis mutandis" to the surplus Associated Natural Gas, subject to the special provisions referred to in Article 22.3 below. A similar procedure shall be applicable apply if it is decided to proceed with the sale or marketing of the Associated Natural Gas while Exploitation of the field is in progress.
22.2.2 Should the CONTRACTOR conclude that Exploitation of the surplus Associated Natural Gas is agreed during not warranted, and should the Production of a Field.
13.2.3 In the event the Contractor does not consider the exploitation of the excess Associated Natural Gas is justified and if the State STATE at any time wishes decide to utilize itutilise such Associated Natural Gas, the Ministry STATE shall notify advise the Contractor of the State’s wishCONTRACTOR, in which event:
(a) The CONTRACTOR shall make available to the Contractor shall put STATE, free of charge, at the disposal outlet of the State free separator of charge the Crude Oil and Associated Natural Gas separation facilities for Gas, all or part of such excess that surplus which the State wishes STATE elects to utilizelift;
(b) the State The STATE shall be responsible for the gathering, treatmentprocessing, compression compressing and transportation of transporting such excess Associated Natural Gas surplus from the receiving point at the Contractor’s facilities separator referred to above, and for bearing any it shall assume all additional costs and liabilities related risks associated with the Petroleum Operations pertaining thereto; and;
(c) the The construction of the facilities infrastructure necessary for the operations referred to in paragraph (bb) above, together with as well as the recovery lifting of that excess such surplus by the State STATE, shall be carried out in accordance with the generally accepted practice of practices in the international petroleum industry, and in a manner which does not hinder the production, lifting and transport of Crude Oil by the CONTRACTOR.
13.2.4 In no event shall the Operations carried out by the State in relation to such 22.2.3 Any surplus of Associated Natural Gas interfere with Petroleum Operations which is not utilised pursuant to the provisions of the Contractor.
13.2.5 Any excess Associated Natural Gas not utilized in accordance with Articles 13.2.1, 13.2.2 22.2.1 and 13.2.3 22.2.2 above shall be re-injected by the Contractor CONTRACTOR. However, the CONTRACTOR shall have the right to flare such gas in accordance with Article 6.14. Flaring will be permitted only in accordance with the Hydrocarbons Law and is subject to the approval of the Ministry. The Contractor shall be permitted to flare Associated Natural Gas without the approval of the Ministry generally accepted practices in the event of an emergencyinternational petroleum industry, provided the CONTRACTOR shall furnish the Operating Committee with a report which justifies that every effort is made to diminish this gas cannot be utilised profitably for the purpose of increasing the recovery of Crude Petroleum by means of reinjection, and extinguish in such flaring event, the Minister in charge of Natural Gas as soon as possible. The Ministry has hydrocarbons shall approve the right to offtake, free of charge, at the wellhead or gas oil separator all Natural Gas that would otherwise be re-injected or flared by the Contractorflaring.
Appears in 2 contracts
Samples: Production Sharing Contract, Production Sharing Contract
Associated Natural Gas. 13.2.1 In the event that a Discovery of Crude Oil is considered to be a Commercial Discovery, the Contractor shall state in the report referred to in Article 5.3 whether it considers that the Production of 18.1.1 The Associated Natural Gas is likely to exceed produced from the quantities necessary Oil Field within the Contract Area shall be primarily used for the requirements of Petroleum Operations relating purposes related to the Production operations of production and production enhancement of Oil Field such as gas injection, gas lifting and power generation.
18.1.2 Based on the principle of full utilization of the Associated Natural Gas and with no impediment to normal production of the Crude Oil (including re-injection operations), and whether it considers that such excess is capable of being produced in commercial quantities. In the event the Contractor has informed the Ministry of such an excessOil, the Ministry and Overall Development Program of the Contractor Oil Field shall jointly assess include a plan of utilization of the possible markets and uses for such excess of Associated Natural Gas, both on the local market and for export (including the possibility of joint marketing of their shares of Production of that . If there is any excess of Associated Natural Gas in the event Oil Field after utilization pursuant to Article 18.
1.1 herein (hereafter referred to as “excess Associated Natural Gas”), the Operator shall carry out a feasibility study regarding the utilization of such excess would not otherwise Associated Natural Gas of such Oil Field. Such feasibility study, if carried out before the Development Operations of the Oil Field, shall be commercially exploitable)included as part of the feasibility study on the development of the Oil Field. With respect to the Oil Field already under commercial production, together with if a further feasibility study on the means necessary utilization of its excess Associated Natural Gas is required, such study shall be carried out by the Operator and a report thereon shall be submitted to JMC for its marketing.
13.2.2 In review and discussion. If the event Parties decide to utilize the Ministry excess Associated Natural Gas of the Oil Field, the construction of facilities for such utilization and the Contractor should decide that the Development production of the excess Associated Natural Gas shall be carried out at the same time as the Oil Field construction and production.
18.1.2.1 If the Parties agree that the excess Associated Natural Gas of the Oil Field has no commercial value, then such gas shall be disposed of by the Operator subject to relevant regulations concerning the environmental protection, provided that there is justifiedno impediment to normal production of the Crude Oil.
18.1.2.2 If any Party to the Contract considers unilaterally that the excess Associated Natural Gas of the Oil Field has commercial value, or such gas may be utilized by that Party at its own expense without affecting timing and optimal development of the Oil Field concerned, the amount of “cost recovery oil” and “allocable remainder oil” due to the other Party to the Contract which does not invest in such utilization.
18.1.2.3 If the event Parties agree that excess Associated Natural Gas of the Contractor should wish to develop and produce such excessOil Field has commercial value, the Contractor shall indicate make further investment in its utilization, and the Development and Production Plan aforesaid new investment shall not affect either the additional facilities necessary for proportion of “cost recovery oil” by the Development and Production Parties stipulated in Article 13.2.2 hereof or the proportion of the “allocable remainder oil” by the Parties stipulated in Article 13.2.3 hereof. If the Parties disagree on the commercial utilization of such excess and its estimate of the costs related thereto. The Contractor shall then proceed with the Development and Production of such excess in accordance with the Development and Production Plan submitted and approved by the Ministry under Article 5.5. A similar procedure shall be applicable if the sale or marketing of Associated Natural Gas is agreed during of that Oil Field, they shall, guided by the Production principle of a Field.
13.2.3 In mutual benefit, carry out further negotiations to reach an agreement in writing. If the event Parties fail to reach agreement through negotiations, CNPC shall reserve the Contractor does not consider the exploitation right to dispose of the excess Associated Natural Gas is justified and if of the State at any time wishes said Oil Field unilaterally. If CNPC decides to utilize itthe said excess Associated Natural Gas, the Ministry shall notify the Contractor of the State’s wish, in which event:
(a) the Contractor shall put at have the disposal right to join in the utilization of the State free of charge the Crude Oil and Associated Natural Gas separation facilities for all or part of such excess that the State wishes to utilize;
(b) the State shall be responsible for the gathering, treatment, compression and transportation of such said excess Associated Natural Gas from the receiving point at the Contractor’s facilities and for bearing any additional costs and liabilities related thereto; and
within three (c3) the construction of years after the facilities necessary for utilizing the operations referred to in paragraph (b) above, together with the recovery of that excess by the State shall be carried out in accordance with generally accepted practice of the international petroleum industry.
13.2.4 In no event shall the Operations carried out by the State in relation to such Associated Natural Gas interfere with Petroleum Operations of the Contractor.
13.2.5 Any said excess Associated Natural Gas not utilized are completed unilaterally by CNPC in accordance with Articles 13.2.1an Associated Natural Gas utilization program formulated by CNPC. If the Contractor decides in writing to participate in the utilization of the said excess Associated Natural Gas within the three (3) years mentioned above, 13.2.2 and 13.2.3 then, the Contractor shall pay CNPC an amount of money, in addition to the cost spent by CNPC on the said utilization of excess Associated Natural Gas up to the date of Contractor’s submission of the written notice to CNPC. Such amount shall be re-injected equal to two times (200%) of the foregoing costs for utilization of the excess Associated Natural Gas and such amount of money shall not be charged into the Joint Account and shall not be deemed the recoverable costs. Thereafter, the costs to be incurred in such utilization of excess Associated Natural Gas shall be provided by the Contractor in accordance with Article 6.14. Flaring will be permitted only solely in accordance with the Hydrocarbons Law and is subject provisions herein. If the Contractor decides, after the three (3) years mentioned above, not to participate in the approval utilization of the Ministry. The excess Associated Natural Gas, the Contractor shall be permitted deemed to flare have waived all its rights to use the said excess Associated Natural Gas without the approval of the Ministry in the event of an emergency, provided that every effort is made to diminish and extinguish such flaring of Natural Gas as soon as possible. The Ministry has the right to offtake, free of charge, at the wellhead or gas oil separator all Natural Gas that would otherwise be re-injected or flared by the ContractorGas.
Appears in 2 contracts
Samples: Petroleum Contract (MIE Holdings Corp), Petroleum Contract (MIE Holdings Corp)
Associated Natural Gas. 13.2.1 In the event that a Discovery of Crude Oil is considered to be a Commercial Discovery, the Contractor shall state in the report referred to in Article 5.3 5.3 whether it considers that the Production of Associated Natural Gas is likely to exceed the quantities necessary for the requirements of Petroleum Operations relating to the Production of Crude Oil (including re-injection operations), and whether it considers that such excess is capable of being produced in commercial quantities. In the event the Contractor has informed the Ministry of such an excess, the Ministry and the Contractor shall jointly assess the possible markets and uses for such excess of Associated Natural Gas, both on the local market and for export (including the possibility of joint marketing of their shares of Production of that excess of Associated Natural Gas in the event such excess would not otherwise be commercially exploitable), together with the means necessary for its marketing.
13.2.2 In the event the Ministry and the Contractor should decide that the Development of the excess Associated Natural Gas is justified, or in the event the Contractor should wish to develop and produce such excess, the Contractor shall indicate in the Development and Production Plan the additional facilities necessary for the Development and Production of such excess and its estimate of the costs related thereto. The Contractor shall then proceed with the Development and Production of such excess in accordance with the Development and Production Plan submitted and approved by the Ministry under Article 5.55.5. A similar procedure shall be applicable if the sale or marketing of Associated Natural Gas is agreed during the Production of a Field.
13.2.3 In the event the Contractor does not consider the exploitation of the excess Associated Natural Gas is justified and if the State at any time wishes to utilize it, the Ministry shall notify the Contractor of the State’s 's wish, in which event:
(a) the Contractor shall put at the disposal of the State free of charge the Crude Oil and Associated Natural Gas separation facilities for all or part of such excess that the State wishes to utilize;
(b) the State shall be responsible for the gathering, treatment, compression and transportation of such excess Associated Natural Gas from the receiving point at the Contractor’s facilities and for bearing any additional costs and liabilities related thereto; and
(c) the construction of the facilities necessary for the operations referred to in paragraph (b(b) above, together with the recovery of that excess by the State State, shall be carried out in accordance with generally accepted practice of the international petroleum industry.
13.2.4 In no event shall the Operations carried out by the State in relation to such Associated Natural Gas interfere with Petroleum Operations of the Contractor.
13.2.5 Any excess Associated Natural Gas not utilized in accordance with Articles 13.2.113.2.1, 13.2.2 13.2.2 and 13.2.3 13.2.3 shall be re-injected by the Contractor in accordance with Article 6.146.14. Flaring will be permitted only in accordance with the Hydrocarbons Law and is subject to the approval of the Ministry. The Contractor shall be permitted to flare Associated Natural Gas without the approval of the Ministry in the event of an emergency, provided that every effort is made to diminish and extinguish such flaring of Natural Gas as soon as possible. The Ministry has the right to offtake, free of charge, at the wellhead or gas oil separator all Natural Gas that would otherwise be re-injected or flared by the Contractor.
Appears in 1 contract
Samples: Production Sharing Contract
Associated Natural Gas. 13.2.1 In the event that 21.5.1 If a Discovery of Crude Oil is considered to be contains Associated Natural Gas (ANG), the Investor shall declare in the proposal for the declaration of the said Discovery as a Commercial Discovery, the Contractor shall state in the report referred to Discovery as specified in Article 5.3 5, whether it considers that (and by what amount) the Production estimated production of Associated Natural Gas is likely anticipated to exceed the quantities necessary of Associated Natural Gas which shall be used in accordance with Article 21.4 (such excess being hereinafter referred to as the “Excess Associated Natural Gas”). In such an event the Investor shall indicate whether, on the basis of the available data and information, it has reasonable grounds for believing that the requirements Excess Associated Natural Gas could be commercially exploited in accordance with the terms of Petroleum Operations relating to this Agreement along with the Production of the Crude Oil (including re-injection operationsfrom the Exploitation Field(s), and whether it considers that such excess is capable the Investor intends to so exploit the Excess Associated Natural Gas.
21.5.2 Based on the principle of being produced in commercial quantities. In the event the Contractor has informed the Ministry of such an excess, the Ministry and the Contractor shall jointly assess the possible markets and uses for such excess full utilisation of Associated Natural Gas, both on a proposed Development and Production Preliminary Plan for a Discovery shall, to the local market and extent practicable, include a plan for export (including the possibility utilisation of joint marketing of their shares of Production of that excess of any Associated Natural Gas in including estimated quantities to be flared, re-injected, and to be used for Petroleum Operations; and, if the event such excess would not otherwise be Investor proposes to commercially exploitable), together with exploit the means necessary for its marketing.
13.2.2 In the event the Ministry and the Contractor should decide that the Development of the excess Excess Associated Natural Gas is justified, or in for sale.
21.5.3 If the event Investor wants to produce the Contractor should wish to develop and produce such excess, the Contractor shall indicate in the Development and Production Plan the additional facilities necessary for the Development and Production of such excess and its estimate of the costs related thereto. The Contractor shall then proceed with the Development and Production of such excess in accordance with the Development and Production Plan submitted and approved by the Ministry under Article 5.5. A similar procedure shall be applicable if the sale or marketing of Excess Associated Natural Gas is agreed during the Production of a FieldInvestor shall submit its proposals for such exploitation to the Ministry.
13.2.3 In 21.5.4 If the event Investor does not want to produce the Contractor does Excess Associated Natural Gas, the Investor should not consider the exploitation of the excess Associated of Natural Gas is as justified and if the State Government, at any time wishes time, would want to utilize utilise it, the Ministry Agency shall notify the Contractor of the State’s wishInvestor thereof, in which event:
(a) the Contractor Investor shall put at make available to the disposal Republic of the State Croatia free of charge at the Crude Oil and Associated Natural Gas separation facilities for all or part of such excess the Excess Associated Natural Gas that the State wishes Republic of Croatia intends to utilizelift, to the extent that such usage does not interfere with Investor’s existing usage;
(b) the State Republic of Croatia shall be responsible for the gathering, treatment, compression and transportation of such that excess Associated Natural Gas from the receiving point at the Contractor’s facilities above-mentioned separation facilities, and for bearing shall bear any additional costs and liabilities related thereto; and, including costs of constructing the above-mentioned facilities and related costs;
(c) the construction of the facilities necessary for the operations referred to in paragraph (b(b) above, together with the recovery lifting of that excess by the State Republic of Croatia, shall be carried out in accordance with generally accepted practice International Good Oilfield Practice and in such a manner as not to hinder the production, lifting and transportation of Crude Oil by the Investor.
(d) all costs related to facilitating the use of the international petroleum industrynatural gas referred to in paragraph (a) shall, for the avoidance of any doubt, constitute recoverable costs pursuant to this Agreement.
13.2.4 In no event shall the Operations carried out by the State in relation to such Associated Natural Gas interfere with Petroleum Operations of the Contractor.
13.2.5 Any excess Associated Natural Gas not utilized in accordance with Articles 13.2.1, 13.2.2 and 13.2.3 shall be re-injected by the Contractor in accordance with Article 6.14. Flaring will be permitted only in accordance with the Hydrocarbons Law and is subject to the approval of the Ministry. The Contractor shall be permitted to flare Associated Natural Gas without the approval of the Ministry in the event of an emergency, provided that every effort is made to diminish and extinguish such flaring of Natural Gas as soon as possible. The Ministry has the right to offtake, free of charge, at the wellhead or gas oil separator all Natural Gas that would otherwise be re-injected or flared by the Contractor.
Appears in 1 contract
Samples: Production Sharing Agreement
Associated Natural Gas. 13.2.1 In the event that a Discovery of Crude Oil is considered to be a Commercial Discovery, the Contractor shall state in the report referred to in Article 5.3 whether it considers that the Production of 18.1.1 The Associated Natural Gas is likely to exceed produced from the quantities necessary Oil Field within the Contract Area shall be primarily used for the requirements of Petroleum Operations relating purposes related to the Production operations of production and production enhancement of Oil Field such as gas injection, gas lifting and power generation.
18.1.2 Based on the principle of full utilization of the Associated Natural Gas and with no impediment to normal production of the Crude Oil (including re-injection operations), and whether it considers that such excess is capable of being produced in commercial quantities. In the event the Contractor has informed the Ministry of such an excessOil, the Ministry and Overall Development Program of the Contractor Oil Field shall jointly assess include a plan of utilization of the possible markets and uses for such excess of Associated Natural Gas, both on the local market and for export (including the possibility of joint marketing of their shares of Production of that . If there is any excess of Associated Natural Gas in the event Oil Field after utilization pursuant to Article 18.
1.1 herein (hereafter referred to as “excess Associated Natural Gas”), the Operator shall carry out a feasibility study regarding the utilization of such excess would not otherwise Associated Natural Gas of such Oil Field. Such feasibility study, if carried out before the Development Operations of the Oil Field, shall be commercially exploitable)included as part of the feasibility study on the development of the Oil Field. With respect to the Oil Field already under commercial production, together with if a further feasibility study on the means necessary utilization of its excess Associated Natural Gas is required, such study shall be carried out by the Operator and a report thereon shall be submitted to JMC for its marketing.
13.2.2 In review and discussion. If the event Parties decide to utilize the Ministry excess Associated Natural Gas of the Oil Field, the construction of facilities for such utilization and the Contractor should decide that the Development production of the excess Associated Natural Gas shall be carried out at the same time as the Oil Field construction and production.
18.1.2.1 If the Parties agree that the excess Associated Natural Gas of the Oil Field has no commercial value, then such gas shall be disposed of by the Operator subject to relevant regulations concerning the environmental protection, provided that there is justifiedno impediment to normal production of the Crude Oil.
18.1.2.2 If any Party to the Contract considers unilaterally that the excess Associated Natural Gas of the Oil Field has commercial value, or such gas may be utilized by that Party at its own expense without affecting timing and optimal development of the Oil Field concerned, the amount of “cost recovery oil” and “allocable remainder oil” due to the other Party to the Contract which does not invest in such utilization.
18.1.2.3 If the event Parties agree that excess Associated Natural Gas of the Contractor should wish to develop and produce such excessOil Field has commercial value, the Contractor shall indicate make further investment in its utilization, and the Development and Production Plan aforesaid new investment shall not affect either the additional facilities necessary for proportion of “cost recovery oil” by the Development and Production Parties stipulated in Article 13.2.2 hereof or the proportion of the allocable remainder oil” by the Parties stipulated in Article 13.2.3 hereof. If the Parties disagree on the commercial utilization of such excess and its estimate of the costs related thereto. The Contractor shall then proceed with the Development and Production of such excess in accordance with the Development and Production Plan submitted and approved by the Ministry under Article 5.5. A similar procedure shall be applicable if the sale or marketing of Associated Natural Gas is agreed during of that Oil Field, they shall, guided by the Production principle of a Field.
13.2.3 In mutual benefit, carry out further negotiations to reach an agreement in writing. If the event Parties fail to reach agreement through negotiations, CNPC shall reserve the Contractor does not consider the exploitation right to dispose of the excess Associated Natural Gas is justified and if of the State at any time wishes said Oil Field unilaterally. If CNPC decides to utilize itthe said excess Associated Natural Gas, the Ministry shall notify the Contractor of the State’s wish, in which event:
(a) the Contractor shall put at have the disposal right to join in the utilization of the State free of charge the Crude Oil and Associated Natural Gas separation facilities for all or part of such excess that the State wishes to utilize;
(b) the State shall be responsible for the gathering, treatment, compression and transportation of such said excess Associated Natural Gas from the receiving point at the Contractor’s facilities and for bearing any additional costs and liabilities related thereto; and
within three (c3) the construction of years after the facilities necessary for utilizing the operations referred to in paragraph (b) above, together with the recovery of that excess by the State shall be carried out in accordance with generally accepted practice of the international petroleum industry.
13.2.4 In no event shall the Operations carried out by the State in relation to such Associated Natural Gas interfere with Petroleum Operations of the Contractor.
13.2.5 Any said excess Associated Natural Gas not utilized are completed unilaterally by CNPC in accordance with Articles 13.2.1an Associated Natural Gas utilization program formulated by CNPC. If the Contractor decides in writing to participate in the utilization of the said excess Associated Natural Gas within the three (3) years mentioned above, 13.2.2 and 13.2.3 then, the Contractor shall pay CNPC an amount of money, in addition to the cost spent by CNPC on the said utilization of excess Associated Natural Gas up to the date of Contractor’s submission of the written notice to CNPC. Such amount shall be re-injected equal to two times (200%) of the foregoing costs for utilization of the excess Associated Natural Gas and such amount of money shall not be charged into the Joint Account and shall not be deemed the recoverable costs. Thereafter, the costs to be incurred in such utilization of excess Associated Natural Gas shall be provided by the Contractor in accordance with Article 6.14. Flaring will be permitted only solely in accordance with the Hydrocarbons Law and is subject provisions herein. If the Contractor decides, after the three (3) years mentioned above, not to participate in the approval utilization of the Ministry. The excess Associated Natural Gas, the Contractor shall be permitted deemed to flare have waived all its rights to use the said excess Associated Natural Gas without the approval of the Ministry in the event of an emergency, provided that every effort is made to diminish and extinguish such flaring of Natural Gas as soon as possible. The Ministry has the right to offtake, free of charge, at the wellhead or gas oil separator all Natural Gas that would otherwise be re-injected or flared by the ContractorGas.
Appears in 1 contract
Associated Natural Gas. 13.2.1 (a) In the event that of a Discovery commercial discovery of Crude Oil is considered to be a Commercial DiscoveryOil, the Contractor shall state in the report referred to in Article 5.3 whether inform NOCAL if it considers that the Production production of Associated Natural Gas is likely to exceed the quantities necessary for the requirements of the Petroleum Operations relating related to the Production production of Crude Oil (including re-injection operationsreinjection operations and field or platform use), and whether if it considers that such excess is capable of being produced in commercial quantities. In the event the Contractor has shall have informed the Ministry NOCAL of such an excess, the Ministry and the Contractor Parties shall jointly assess evaluate the possible markets and uses outlets for such that excess of Associated Natural Gas, both on the local market and for export (including the possibility of joint marketing of their shares of Production of that excess of Associated Natural Gas in the event such excess would not otherwise be commercially exploitablemarketing), together with the means necessary for its marketing.
13.2.2 In . If the event the Ministry and the Contractor should decide Parties agree that the Development development of the excess Associated Natural Gas is justified, or in the event the Contractor should wish wishes to develop and produce such excessthat excess Associated Natural Gas, the Contractor shall indicate in the Development development and Production Plan production plan referred to in Article 11.3(c) the additional facilities necessary for the Development development and Production exploitation of such that excess and its estimate of the costs related thereto. The Contractor shall then have the right to proceed with the Development development and Production production of such that excess in accordance with the Development development and Production Plan submitted and production plan approved by NOCAL under the Ministry under terms provided by Article 5.511.3(f), and the provisions of the Contract applicable to Crude Oil shall apply, mutatis mutandis, to the excess of Natural Gas, unless otherwise specifically provided by this Article 21. A similar procedure shall be applicable if the sale or marketing of Associated Natural Gas is agreed decided during the Production exploitation of a Field.
13.2.3 In the event (b) After NOCAL and the Contractor does not consider have decided that the exploitation development of the excess Associated Natural Gas is justified pursuant to Article 21.3(a), if the Contractor does not submit a development and production plan providing for the development and production thereof or if the Contractor does not wish to participate in the development of excess Associated Natural Gas and therefore there has been no decision that the development of excess Associated Natural Gas is justified, and if the State at any time NOCAL wishes to utilize itsuch excess Associated Natural Gas, the Ministry NOCAL shall notify the Contractor of the State’s wishthereof, in which event:
(ai) NOCAL shall present the Contractor with a development and production plan for such excess Associated Natural Gas. NOCAL shall use its best efforts to take into consideration any documented concerns of the Contractor regarding the technical feasibility of simultaneous operations or any additional costs to be incurred by the Contractor thereto, further subject to the requirement that such work or the operation of such facilities by NOCAL will not prejudicially affect (other than on a short term temporary basis attributable to the construction or placing of such facilities) the production, lifting and transportation of Crude Oil by the Contractor. If the Contractor has any concerns regarding such plan, NOCAL and the Contractor shall work together in good faith to resolve any outstanding concerns regarding the technical feasibility and risks of simultaneous operations and the additional costs to be incurred by the Contractor;
(ii) NOCAL and the Contractor may elect to convene the Gas Committee in order to facilitate the production of Associated Natural Gas by NOCAL;
(iii) the Contractor shall put at the disposal of the State make available to NOCAL free of charge at the Crude Oil and Associated Natural Gas separation facilities for all or part of such the excess Associated Natural Gas that the State NOCAL wishes to utilizelift;
(biv) the State NOCAL shall be responsible for all the costs for the gathering, treatmentprocessing, compression compressing and transportation transporting of such the excess Associated Natural Gas from the receiving point at the Contractor’s facilities above mentioned separation facilities, and for bearing shall bear any additional costs and liabilities related theretothereto separate to the provisions agreed to in this Contract; and
(cv) the design, placement and construction of the NOCAL’s facilities necessary for the operations referred to in paragraph (b) above, together with the recovery lifting of that excess by the State NOCAL, shall be carried out in accordance with generally accepted practice Good International Petroleum Industry Practice, subject to the requirement that such work or the operation of such facilities will not prejudicially affect (other than on a short term temporary basis attributable to the international petroleum industry.
13.2.4 In no event shall construction or placing of such facilities) the Operations carried out production, lifting and transportation of Crude Oil by the State in relation to such Associated Natural Gas interfere with Petroleum Operations of the Contractor.
13.2.5 (c) Any excess of Associated Natural Gas which is not utilized under Article 21.3(a) and Article 21.3(b) shall be reinjected by the Contractor. However, the Contractor shall have the right to flare said gas in accordance with Articles 13.2.1, 13.2.2 and 13.2.3 shall be re-injected by the Contractor in accordance with Article 6.14. Flaring will be permitted only in accordance with the Hydrocarbons Law and is subject to the approval of the Ministry. The Contractor shall be permitted to flare Associated Natural Gas without the approval of the Ministry in the event of an emergencyGood International Petroleum Industry Practice, provided that every effort is made the Contractor furnishes NOCAL with a report demonstrating that said gas cannot be economically utilized by means of reinjection to diminish and extinguish such flaring improve the rate of Natural Gas as soon as possible. The Ministry has recovery of Crude Oil pursuant to the right to offtake, free provisions of charge, at the wellhead or gas oil separator all Natural Gas that would otherwise be re-injected or flared by the ContractorArticle 15.
Appears in 1 contract
Samples: Production Sharing Contract
Associated Natural Gas. 13.2.1 In the event that a Discovery of Crude Oil is considered to be a Commercial Discovery, the Contractor shall will state in the report referred to in Article 5.3 5.3 whether it considers that the Production of Associated Natural Gas is likely to exceed the quantities necessary for the requirements of Petroleum Operations relating to the Production of Crude Oil (including re-injection reinjection operations), and whether it considers that such excess is capable of being produced in commercial quantities. In the event If the Contractor has informed the Ministry of such an the excess, the Ministry and the Contractor shall will jointly assess the possible markets and uses for such this excess of Associated Natural Gas, both on the local market and for export (including the possibility of joint marketing of their shares of Production of that excess of Associated Natural Gas in the event such excess would not otherwise be commercially exploitable), together with the means necessary for its marketing.
13.2.2 In the event the Ministry and the Contractor should decide that the Development of the excess Associated Natural Gas is justified, or in the event the Contractor should wish to develop and produce such excess, the Contractor shall will indicate in the Development and Production Plan the all additional facilities necessary for the Development and Production of such the excess in the Development and Production Plan, and its estimate of the costs related theretocosts. The Contractor shall will then proceed with the Development and Production of such the excess in accordance with the Development and Production Plan submitted presented to and approved by the Ministry under Article 5.55.5. A similar procedure shall will be applicable applied if the sale or marketing of Associated Natural Gas is agreed on during the Production of a Field.
13.2.3 In the event If the Contractor does not consider the exploitation of the excess Associated Natural Gas is justified and if the State at any time wishes to utilize it, the Ministry shall will notify the Contractor of the State’s 's wish, in which event:
(a) the Contractor shall will put all or part of the excess Associated Natural Gas that the State wishes to ship at the State's disposal of the State free of charge at the outlet of the separation facilities of Crude Oil and Associated Natural Gas.
(b) the State will be responsible for the resulting costs, responsibilities, and operations in all the additional installations of Crude Oil and Associated Natural Gas separation facilities for that are not included in the Contractor’s Development and Production Plan or all or part of such excess that the State wishes to utilize;
(b) the State shall be responsible additional installations and those already existing, including additional installations for the gathering, treatment, compression and transportation of such excess Associated Natural Gas from the receiving point at the Contractor’s facilities and for bearing any additional costs and liabilities related theretotransport; and
(c) the construction of the facilities necessary for the operations referred to installations mentioned in paragraph (b) aboveitem (b), together with the recovery recuperation of that this excess by on the State shall part of the State, will be carried out in accordance with generally accepted practice good practices of the international petroleum industry, without holding back or reducing the Contractor's uncompensated production under the approved Development and Production Plan.
13.2.4 In no event shall case may the Operations operations carried out by the State in relation to such with this Associated Natural Gas interfere with Petroleum Operations of the Contractor's Petroleum Operations.
13.2.5 Any excess Associated Natural Gas that is not utilized used in accordance with Articles 13.2.113.2.1, 13.2.2 13.2.2, and 13.2.3 shall 13.2.3 will be re-injected reinjected by the Contractor in accordance with Article 6.146.14. Flaring of this Associated Natural Gas will be permitted only in accordance with the Hydrocarbons Law and is will be subject to the approval of the Ministry. The Contractor shall be permitted to may flare Associated Natural Gas without the approval of the Ministry in the event of an emergency, provided that every effort is all necessary efforts are made to diminish reduce and extinguish such the flaring of this Natural Gas as soon as possibleit is commercially practical. The Except in the case of gas flaring in an emergency or in connection with a short-term test, the Ministry has the right to offtakecollect, free of charge, at in the wellhead or in the gas and oil separator all Natural Gas that would otherwise be re-injected flared or flared reinjected by the Contractor, being that the State will pay the costs resulting from such collection under the terms of Article 13.2.3.
Appears in 1 contract
Associated Natural Gas. 13.2.1 In a) Associated Natural Gas produced within the event that Agreement Area shall be used primarily for purposes related to the Production Operations and production enhancement including, without limitation, oil treating, gas injection, gas lifting and power generation.
b) Based on the principle of full utilisation of the Associated Natural Gas and with no impediment to normal production of the Crude Oil, any Development Plan shall include a Discovery plan of Crude utilisation of Associated Natural Gas. If there is any excess Associated Natural Gas remaining in any Oil is considered Field after utilisation pursuant to be a Commercial DiscoveryArticle 16.1.a) above (hereafter referred to as "Excess Associated Natural Gas"), the Contractor shall state in carry out a feasibility study regarding the report referred to in Article 5.3 whether it considers commercial utilisation of such Excess Associated Natural Gas.
i) If Georgian Oil and Contractor agree that the Production of Excess Associated Natural Gas is likely has no commercial value, then Operator shall act under the plan approved by Coordination Committee, so that not to exceed interfere with normal oil production. Besides, in order to avoid any doubt, both the quantities plan and the Operator's activities under the plan shall exclude pollution and correspond to relevant standards effective in Georgia, which shall be agreed with the State Agency for Regulation of Oil and Gas Resources in Georgia.
ii) If Georgian Oil and Contractor agree that Excess Associated Natural Gas has commercial value, they will endeavour to enter into gas sales agreement(s) and/or other commercial and/or technical arrangements with Third Parties required to develop such Natural Gas. Investments in the facilities necessary for production, transportation and delivery of Excess Associated Natural Gas shall be made by the requirements Contractor. The construction of Petroleum Operations relating facilities for such Production and utilisation of the Excess Associated Natural Gas shall be carried out at the same time as the Development Operations, or at any time as may be agreed to by the Production of Crude Parties.
iii) If either Georgian Oil (including re-injection operations), and whether it or Contractor considers that such excess is capable of being produced in Excess Associated Natural Gas has commercial quantities. In value while the event the Contractor other considers that Excess Associated Natural Gas has informed the Ministry of such an excessno commercial value, the Ministry and the Contractor shall jointly assess the possible markets and uses for one who considers Excess Associated Natural Gas to have commercial value may utilise such excess of Excess Associated Natural Gas, both on the local market at its own cost and for export (including the possibility of joint marketing of their shares of Production of that excess of Associated Natural Gas in the event such excess would not otherwise be commercially exploitable), together with the means necessary for its marketing.
13.2.2 In the event the Ministry and the Contractor should decide that the Development of the excess Associated Natural Gas is justified, or in the event the Contractor should wish to develop and produce such excess, the Contractor shall indicate in the Development and Production Plan the additional facilities necessary for the Development and Production of such excess and its estimate of the costs related thereto. The Contractor shall then proceed with the Development and Production of such excess in accordance with the Development and Production Plan submitted and approved by the Ministry under Article 5.5. A similar procedure shall be applicable if the sale or marketing of Associated Natural Gas is agreed during the Production of a Field.
13.2.3 In the event the Contractor does not consider the exploitation of the excess Associated Natural Gas is justified and if the State at any time wishes to utilize it, the Ministry shall notify the Contractor of the State’s wish, in which event:
(a) the Contractor shall put at the disposal of the State free of charge the Crude Oil and Associated Natural Gas separation facilities for all or part of such excess that the State wishes to utilize;
(b) the State shall be responsible for the gathering, treatment, compression and transportation of such excess Associated Natural Gas from the receiving point at the Contractor’s facilities and for bearing any additional costs and liabilities related thereto; expense and
(c) the construction of the facilities necessary for the operations referred to in paragraph (b) above, together with the recovery of that excess by the State shall be carried out in accordance with generally accepted practice of the international petroleum industry.
13.2.4 In no event shall the Operations carried out by the State in relation to such Associated Natural Gas interfere with Petroleum Operations of the Contractor.
13.2.5 Any excess Associated Natural Gas not utilized in accordance with Articles 13.2.1, 13.2.2 and 13.2.3 shall be re-injected by the Contractor in accordance with Article 6.14. Flaring will be permitted only in accordance with the Hydrocarbons Law and is subject to the approval of the Ministry. The Contractor shall be permitted to flare Associated Natural Gas without the approval of the Ministry in the event of an emergency, provided that every effort is made to diminish and extinguish such flaring of Natural Gas as soon as possible. The Ministry has the right to offtake, free of charge, at the wellhead or gas oil separator all Natural Gas that would otherwise be re-injected or flared by the Contractor.
Appears in 1 contract
Associated Natural Gas. 13.2.1 22.2.1 For the purposes of this Article, Associated Natural Gas shall be Natural Gas which is not considered Non Associated Natural Gas. In the event that of a Discovery of Crude Oil is considered to be a Commercial Discoverycontaining Associated Natural Gas, the Contractor CONTRACTOR shall state specify in the report referred to in Article 5.3 11.4 of this Contrat whether it considers that or not production of the Production of Associated Natural Gas is likely to exceed the quantities necessary (after processing of said Associated Gas for the requirements purpose of separating Crude Petroleum) exceeds the volumes utilised for Petroleum Operations relating to the Production of Crude Oil (including re-injection operationsreinjection and fuel), and whether it considers that such excess is capable of being produced in commercial quantitiessurplus may be available for marketing. In Should the event CONTRACTOR advise the Contractor has informed the Ministry of such an excessSTATE that a marketable surplus exists, the Ministry and the Contractor Parties shall jointly assess the possible markets and uses marketing outlets for such excess of Associated Natural GasGas surplus, in respect of both on the local market and for the export market (including the possibility of the joint marketing sale of their shares share of Production production of that excess of such surplus Associated Natural Gas in the event such excess would surplus is not otherwise be commercially exploitablesuitable for commercial exploitation in any other manner), together with as well as the means necessary for its marketing.
13.2.2 In commercial Exploitation. Should the event the Ministry and the Contractor should decide Parties agree that the Development development for sale of the excess Associated Natural Gas is justifiedwarranted, or the CONTRACTOR shall specify, in the event the Contractor should wish Exploitation Work Programme and corresponding Budget referred to develop and produce such excessin Article 11.7 of this Contact, the Contractor shall indicate in the Development and Production Plan the additional facilities necessary installations required for the Development development and Production production of this surplus and the estimated applicable costs. In such excess and its estimate of event, the costs related thereto. The Contractor CONTRACTOR shall then be free to proceed with the Development development and Production production of such excess this surplus, in accordance with the Development Exploitation Work Programme and Production Plan submitted and corresponding Budget approved by the Ministry under Operating Committee pursuant to the provisions of Article 5.511.7 above, and the provisions of this Contract applicable to Crude Oil shall apply “mutatis mutandis” to the surplus Associated Natural Gas, subject to the special provisions referred to in Article 22.3 below. A similar procedure shall be applicable apply if it is decided to proceed with the sale or marketing of the Associated Natural Gas while Exploitation of the field is in progress.
22.2.2 Should the CONTRACTOR conclude that Exploitation of the surplus Associated Natural Gas is agreed during not warranted, and should the Production of a Field.
13.2.3 In the event the Contractor does not consider the exploitation of the excess Associated Natural Gas is justified and if the State STATE at any time wishes decide to utilize itutilise such Associated Natural Gas, the Ministry STATE shall notify advise the Contractor of the State’s wishCONTRACTOR, in which event:
(a) The CONTRACTOR shall make available to the Contractor shall put STATE, free of charge, at the disposal outlet of the State free separator of charge the Crude Oil and Associated Natural Gas separation facilities for Gas, all or part of such excess that surplus which the State wishes STATE elects to utilize;lift;
(b) the State The STATE shall be responsible for the gathering, treatmentprocessing, compression compressing and transportation of transporting such excess Associated Natural Gas surplus from the receiving point at the Contractor’s facilities separator referred to above, and for bearing any it shall assume all additional costs and liabilities related thereto; andrisks associated with the Petroleum Operations pertaining thereto;
(c) the The construction of the facilities infrastructure necessary for to the operations referred to in paragraph (bb) above, together with as well as the recovery lifting of that excess such surplus by the State STATE, shall be carried out in accordance with the generally accepted practice of practices in the international petroleum industry, and in a manner which does not hinder the production, lifting and transport of Crude Oil by the CONTRACTOR.
13.2.4 In no event shall the Operations carried out by the State in relation to such 22.2.3 Any surplus of Associated Natural Gas interfere with Petroleum Operations which is not utilised pursuant to the provisions of Article 22.2.1 and 22.2.2 above shall be reinjected by the Contractor.
13.2.5 Any excess Associated Natural Gas not utilized CONTRACTOR. However, the CONTRACTOR shall have the right to flare such gas in accordance with Articles 13.2.1, 13.2.2 and 13.2.3 shall be re-injected by the Contractor in accordance with Article 6.14. Flaring will be permitted only in accordance with the Hydrocarbons Law and is subject to the approval of the Ministry. The Contractor shall be permitted to flare Associated Natural Gas without the approval of the Ministry generally accepted practices in the event of an emergencyinternational petroleum industry, provided the CONTRACTOR shall furnish the Operating Committee with a report which justifies that every effort is made to diminish this gas cannot be utilised profitably for the purpose of increasing the recovery of Crude Petroleum by means of reinjection, and extinguish in such flaring event, the Minister in charge of Natural Gas as soon as possible. The Ministry has hydrocarbons shall approve the right to offtake, free of charge, at the wellhead or gas oil separator all Natural Gas that would otherwise be re-injected or flared by the Contractorflaring.
Appears in 1 contract
Samples: Production Sharing Contract
Associated Natural Gas. 13.2.1 In 16.1.1 Associated Natural Gas produced within the event that Contract Area shall be used primarily for purposes related to the Production Operations and production enhancement, including, without limitation, oil treating, gas injection, gas lifting and power generation.
16.1.2 Based on the principle of full utilisation of the Associated Natural Gas and with no impediment to normal production of the Crude Oil, any Development Plan shall include a Discovery plan of Crude utilisation of Associated Natural Gas. If there is any excess Associated Natural Gas remaining in any Oil is considered Field after utilisation pursuant to be a Commercial DiscoveryArticle 16.
1.1 (hereafter referred to as "Excess Associated Natural Gas"), the Contractor shall state carry out a feasibility study regarding the commercial utilisation of such Excess Associated Natural Gas. If Georgian Oil and the Contractor agree that Excess Associated Natural Gas has no commercial value, then such Natural Gas shall be disposed of by the Contractor through reinjection, venting, flaring or otherwise as may be provided in an approved Development Plan, and subject to approval from the State Agency. If Georgian Oil and the Contractor agree that Excess Associated Natural Gas has commercial value, they will endeavour to enter into gas sales agreement(s) and/or other commercial and/or technical arrangements with Third Parties required to develop such Natural Gas. Investments in the report referred to in Article 5.3 whether it facilities necessary for production, transportation and delivery of Excess Associated Natural Gas shall be made by the Contractor. <PAGE> If either Georgian Oil or the Contractor considers that Excess Associated Natural Gas has commercial value while the Production other considers that Excess Associated Natural Gas has no commercial value, the one who considers Excess Associated Natural Gas to have commercial value may utilise such Excess Associated Natural Gas, at its own cost and expense and without impeding the production of Crude Oil and without affecting the shares of Crude Oil and Natural Gas otherwise to be allocated under the other provisions of this Contract, but if such Excess Associated Natural Gas is likely not so utilised at any time or from time to exceed time, then such Excess Associated Natural Gas shall be disposed of by the quantities necessary for Contractor, in a manner approved by the requirements State Agency.
16.1.3 Investments made in conjunction with the utilisation of Petroleum Operations relating to the Production of Crude Oil (including re-injection operations), both Associated Natural Gas and whether it considers that such excess is capable of being produced in commercial quantities. In the event the Contractor has informed the Ministry of such an excess, the Ministry and the Contractor shall jointly assess the possible markets and uses for such excess of Excess Associated Natural Gas, both together with investments incurred after approval of a Development Plan in carrying out feasibility studies on the local market and for export (including the possibility utilisation of joint marketing of their shares of Production of that excess of Excess Associated Natural Gas in the event such excess would not otherwise be commercially exploitable)Gas, together with the means necessary for its marketing.
13.2.2 In the event the Ministry and the Contractor should decide that the Development of the excess Associated Natural Gas is justified, or in the event the Contractor should wish to develop and produce such excess, the Contractor shall indicate in the Development and Production Plan the additional facilities necessary for the Development and Production of such excess and its estimate of the costs related thereto. The Contractor shall then proceed with the Development and Production of such excess in accordance with the Development and Production Plan submitted and approved by the Ministry under Article 5.5. A similar procedure shall be applicable if the sale or marketing of Associated Natural Gas is agreed during the Production of a FieldCosts and Expenses.
13.2.3 In the event the Contractor does not consider the exploitation of the excess Associated Natural Gas is justified and if the State at any time wishes to utilize it, the Ministry shall notify the Contractor of the State’s wish, in which event:
(a) the Contractor shall put at the disposal of the State free of charge the Crude Oil and Associated Natural Gas separation facilities for all or part of such excess that the State wishes to utilize;
(b) the State shall be responsible for the gathering, treatment, compression and transportation of such excess Associated Natural Gas from the receiving point at the Contractor’s facilities and for bearing any additional costs and liabilities related thereto; and
(c) the construction of the facilities necessary for the operations referred to in paragraph (b) above, together with the recovery of that excess by the State shall be carried out in accordance with generally accepted practice of the international petroleum industry.
13.2.4 In no event shall the Operations carried out by the State in relation to such Associated Natural Gas interfere with Petroleum Operations of the Contractor.
13.2.5 Any excess Associated Natural Gas not utilized in accordance with Articles 13.2.1, 13.2.2 and 13.2.3 shall be re-injected by the Contractor in accordance with Article 6.14. Flaring will be permitted only in accordance with the Hydrocarbons Law and is subject to the approval of the Ministry. The Contractor shall be permitted to flare Associated Natural Gas without the approval of the Ministry in the event of an emergency, provided that every effort is made to diminish and extinguish such flaring of Natural Gas as soon as possible. The Ministry has the right to offtake, free of charge, at the wellhead or gas oil separator all Natural Gas that would otherwise be re-injected or flared by the Contractor.
Appears in 1 contract
Samples: Farm in Agreement
Associated Natural Gas. 13.2.1 In the event that (a) If there is a Discovery commercial discovery of Crude Oil is considered to be a Commercial Discoverywith Associated Natural Gas, the Contractor shall state in the report referred to in the Authority delivered pursuant to Article 5.3 5.7 whether it considers that the Production production of Associated Natural Gas is likely to exceed the quantities necessary for the requirements of the Petroleum Operations relating related to the Production production of Crude Oil (including re-injection operationsreinjection for the purpose of enhancing Petroleum Operations and field or platform use), and whether if it considers that such excess is capable of being produced in commercial quantities. In the event If the Contractor has shall have informed the Ministry Authority of such an excess, the Ministry and the Contractor Parties shall jointly assess evaluate the possible markets and uses outlets for such that excess of Associated Natural Gas, both on the local market and for export (including the possibility of joint marketing of their shares of Production of that excess of Associated Natural Gas in the event such excess would not otherwise be commercially exploitablemarketing), together with the means necessary for its marketing.
13.2.2 In . If the event the Ministry and the Contractor should decide Parties agree that the Development development of the excess Associated Natural Gas is justified, or in the event if the Contractor should wish wishes to develop and produce such excessthat excess Associated Natural Gas, the Contractor shall indicate in a development and production plan of the Development and Production Plan scope referred to in Article 5.9 the additional facilities necessary for the Development development and Production exploitation of such that excess and its estimate of the costs related thereto. The Contractor shall then have the right to proceed with the Development development and Production production of such that excess in accordance with the Development approved development and Production Plan submitted production plan, and approved by the Ministry under Article 5.5provisions of the Contract. A similar procedure shall be applicable if the sale or marketing of Associated Natural Gas is agreed decided during the Production exploitation of a Field.
13.2.3 In the event (b) If the Contractor does not consider that the exploitation development of the excess Associated Natural Gas is justified and if the State at any time wishes to utilize itjustified, the Ministry shall notify Authority is free to make arrangements with a third party to take on the Contractor responsibility for the utilization of the State’s wish, in which eventsuch Associated Natural Gas. In any such case:
(ai) the Contractor shall put such excess Associated Natural Gas at the disposal of the State entity designated by the Authority free of charge at the Crude Oil and Associated Natural Gas separation facilities for all or part of such excess that the State wishes to utilizefacilities;
(bii) the State such entity shall be responsible for all the gatheringcosts for the receiving, treatmentprocessing, compression compressing and transportation transporting of such the excess Associated Natural Gas from the receiving point at the Contractor’s facilities above mentioned separation facilities, and for bearing shall bear any additional costs and liabilities related thereto; and
(ciii) the design, placement and construction of the facilities necessary for utilized by such entity in receiving, processing, compressing and transporting the operations referred to in paragraph (b) above, together with the recovery of that excess by the State Associated Natural Gas shall be carried out in accordance with generally accepted practice Good International Petroleum Industry Practice, subject to the requirement that such work or the operation of such facilities will not adversely affect the international petroleum industry.
13.2.4 In no event shall the Operations carried out by the State in relation to such Associated Natural Gas interfere with Petroleum Operations production, lifting and transportation of the Contractor.
13.2.5 Any excess Associated Natural Gas not utilized in accordance with Articles 13.2.1, 13.2.2 and 13.2.3 shall be re-injected Crude Oil by the Contractor in accordance with Article 6.14. Flaring will be permitted only in accordance with the Hydrocarbons Law and is subject (other than on a short term temporary basis attributable to the approval construction, placing or maintenance of the Ministry. The Contractor shall be permitted to flare Associated Natural Gas without the approval of the Ministry in the event of an emergency, provided that every effort is made to diminish and extinguish such flaring of Natural Gas as soon as possible. The Ministry has the right to offtake, free of charge, at the wellhead or gas oil separator all Natural Gas that would otherwise be re-injected or flared by the Contractorfacilities).
Appears in 1 contract
Samples: Production Sharing Contract
Associated Natural Gas. 13.2.1 In 16.1.1 Associated Natural Gas produced within the event that Contract Area shall be used primarily for purposes related to the Production Operations and production enhancement, including, without limitation, oil treating, gas injection, gas lifting and power generation.
16.1.2 Based on the principle of full utilisation of the Associated Natural Gas and with no impediment to normal production of the Crude Oil, any Development Plan shall include a Discovery plan of Crude utilisation of Associated Natural Gas. If there is any excess Associated Natural Gas remaining in any Oil is considered Field after utilisation pursuant to be a Commercial DiscoveryArticle
16.1.1 (hereafter referred to as "Excess Associated Natural Gas"), the Contractor shall state carry out a feasibility study regarding the commercial utilisation of such Excess Associated Natural Gas. If Georgian Oil and the Contractor agree that Excess Associated Natural Gas has no commercial value, then such Natural Gas shall be disposed of by the Contractor through reinjection, venting, flaring or otherwise as may be provided in an approved Development Plan, and subject to approval from the State Agency. If Georgian Oil and the Contractor agree that Excess Associated Natural Gas has commercial value, they will endeavour to enter into gas sales agreement(s) and/or other commercial and/or technical arrangements with Third Parties required to develop such Natural Gas. Investments in the report referred to in Article 5.3 whether it facilities necessary for production, transportation and delivery of Excess Associated Natural Gas shall be made by the Contractor. If either Georgian Oil or the Contractor considers that Excess Associated Natural Gas has commercial value while the Production other considers that Excess Associated Natural Gas has no commercial value, the one who considers Excess Associated Natural Gas to have commercial value may utilise such Excess Associated Natural Gas, at its own cost and expense and without impeding the production of Crude Oil and without affecting the shares of Crude Oil and Natural Gas otherwise to be allocated under the other provisions of this Contract, but if such Excess Associated Natural Gas is likely not so utilised at any time or from time to exceed the quantities necessary for the requirements of Petroleum Operations relating to the Production of Crude Oil (including re-injection operations)time, and whether it considers that then such excess is capable of being produced in commercial quantities. In the event the Contractor has informed the Ministry of such an excess, the Ministry and the Contractor shall jointly assess the possible markets and uses for such excess of Associated Natural Gas, both on the local market and for export (including the possibility of joint marketing of their shares of Production of that excess of Excess Associated Natural Gas shall be disposed of by the Contractor, in the event such excess would not otherwise be commercially exploitable), together with the means necessary for its marketing.
13.2.2 In the event the Ministry and the Contractor should decide that the Development of the excess Associated Natural Gas is justified, or in the event the Contractor should wish to develop and produce such excess, the Contractor shall indicate in the Development and Production Plan the additional facilities necessary for the Development and Production of such excess and its estimate of the costs related thereto. The Contractor shall then proceed with the Development and Production of such excess in accordance with the Development and Production Plan submitted and a manner approved by the Ministry under Article 5.5. A similar procedure shall be applicable if the sale or marketing of Associated Natural Gas is agreed during the Production of a FieldState Agency.
13.2.3 In the event the Contractor does not consider the exploitation of the excess Associated Natural Gas is justified and if the State at any time wishes to utilize it, the Ministry shall notify the Contractor of the State’s wish, in which event:
(a) the Contractor shall put at the disposal of the State free of charge the Crude Oil and Associated Natural Gas separation facilities for all or part of such excess that the State wishes to utilize;
(b) the State shall be responsible for the gathering, treatment, compression and transportation of such excess Associated Natural Gas from the receiving point at the Contractor’s facilities and for bearing any additional costs and liabilities related thereto; and
(c) the construction of the facilities necessary for the operations referred to in paragraph (b) above, together with the recovery of that excess by the State shall be carried out in accordance with generally accepted practice of the international petroleum industry.
13.2.4 In no event shall the Operations carried out by the State in relation to such Associated Natural Gas interfere with Petroleum Operations of the Contractor.
13.2.5 Any excess Associated Natural Gas not utilized in accordance with Articles 13.2.1, 13.2.2 and 13.2.3 shall be re-injected by the Contractor in accordance with Article 6.14. Flaring will be permitted only in accordance with the Hydrocarbons Law and is subject to the approval of the Ministry. The Contractor shall be permitted to flare Associated Natural Gas without the approval of the Ministry in the event of an emergency, provided that every effort is made to diminish and extinguish such flaring of Natural Gas as soon as possible. The Ministry has the right to offtake, free of charge, at the wellhead or gas oil separator all Natural Gas that would otherwise be re-injected or flared by the Contractor.
Appears in 1 contract
Associated Natural Gas. 13.2.1 In the event that a Discovery of Crude Oil is considered to be a Commercial Discovery, the Contractor shall state in the report referred to in Article 5.3 whether it considers that the Production of Associated Natural Gas is likely to exceed the quantities necessary for the requirements of Petroleum Operations relating to the Production of Crude Oil (including re-injection operations), and whether it considers that such excess is capable of being produced in commercial quantities. In the event the Contractor has informed the Ministry of such an excess, the Ministry and the Contractor shall jointly assess the possible markets and uses for such excess of Associated Natural Gas, both on the local market and for export (including the possibility of joint marketing of their shares of Production of that excess of Associated Natural Gas in the event such excess would not otherwise be commercially exploitable), together with the means necessary for its marketing.
13.2.2 In the event the Ministry and the Contractor should decide that the Development of the excess Associated Natural Gas is justified, or in the event the Contractor should wish to develop and produce such excess, the Contractor shall indicate in the Development and Production Plan the additional facilities necessary for the Development and Production of such excess and its estimate of the costs related thereto. The Contractor shall then proceed with the Development and Production of such excess in accordance with the Development and Production Plan submitted and approved by the Ministry under Article 5.5. A similar procedure shall be applicable if the sale or marketing of Associated Natural Gas is agreed during the Production of a Field.
13.2.3 In the event the Contractor does not consider the exploitation of the excess Associated Natural Gas is justified and if the State at any time wishes to utilize it, the Ministry shall notify the Contractor of the State’s wish, in which event:
(a) the Contractor shall put at the disposal of the State free of charge the Crude Oil and Associated Natural Gas separation facilities for all or part of such excess that the State wishes to utilize;
(b) the State shall be responsible for the gathering, treatment, compression and transportation of such excess Associated Natural Gas from the receiving point at the Contractor’s facilities and for bearing any additional costs and liabilities related thereto; and
(c) the construction of the facilities necessary for the operations referred to in paragraph (b) above, together with the recovery of that excess by the State shall be carried out in accordance with generally accepted practice of the international petroleum industry.
13.2.4 In no event shall the Operations carried out by the State in relation to such Associated Natural Gas interfere with Petroleum Operations of the Contractor.
13.2.5 Any excess Associated Natural Gas not utilized in accordance with Articles 13.2.1, 13.2.2 and 13.2.3 shall be re-injected by the Contractor in accordance with Article 6.146.14. Flaring will be permitted only in accordance with the Hydrocarbons Law and is subject to the approval of the Ministry. The Contractor shall be permitted to flare Associated Natural Gas without the approval of the Ministry in the event of an emergency, provided that every effort is made to diminish and extinguish such flaring of Natural Gas as soon as possible. The Ministry has the right to offtake, free of charge, at the wellhead or gas oil separator all Natural Gas that would otherwise be re-injected or flared by the Contractor.
Appears in 1 contract
Associated Natural Gas. 13.2.1 In 18.1.1 The Associated Natural Gas produced from any Oil Field within the event that a Discovery Contract Area shall be primarily used for purposes related to the operations of production and production enhancement of Oil Fields such as gas injection, gas lifting and power generation.
18.1.2 Based on the principle of full utilization of the Associated Natural Gas and with no impediment to normal production of the Crude Oil is considered to be a Commercial DiscoveryOil, the Contractor Overall Development Program of each Oil Field shall state include a plan of utilization of the Associated Natural Gas. If there is any excess Associated Natural Gas in the report any Oil Field after utilization pursuant to Article 18.
1.1 herein (hereafter referred to in Article 5.3 whether it considers that as "excess Associated Natural Gas"), the Production Operator shall carry out a feasibility study regarding the utilization of such excess Associated Natural Gas of such Oil Field. Such feasibility study, if carried out before the Development Operations of an Oil Field, shall be included as part of the feasibility study on the development of the Oil Field. With respect to any Oil Field already under commercial production, if a further feasibility study on the utilization of its excess Associated Natural Gas is likely required, such study shall be carried out by the Operator and a report thereon shall be submitted to exceed JMC for review and discussion. If the quantities necessary for Parties decide to utilize the requirements of Petroleum Operations relating to the Production of Crude Oil (including re-injection operations), and whether it considers that such excess is capable of being produced in commercial quantities. In the event the Contractor has informed the Ministry of such an excess, the Ministry and the Contractor shall jointly assess the possible markets and uses for such excess of Associated Natural Gas, both on the local market and for export (including the possibility of joint marketing of their shares of Production of that excess of Associated Natural Gas in of any Oil Field, the event construction of facilities for such excess would not otherwise be commercially exploitable), together with the means necessary for its marketing.
13.2.2 In the event the Ministry utilization and the Contractor should decide that the Development production of the excess Associated Natural Gas is justified, or in the event the Contractor should wish to develop and produce such excess, the Contractor shall indicate in the Development and Production Plan the additional facilities necessary for the Development and Production of such excess and its estimate of the costs related thereto. The Contractor shall then proceed with the Development and Production of such excess in accordance with the Development and Production Plan submitted and approved by the Ministry under Article 5.5. A similar procedure shall be applicable if carried out at the sale or marketing of Associated Natural Gas is agreed during same time as the Production of a FieldOil Field construction and production.
13.2.3 In 18.1.2.1 If the event the Contractor does not consider the exploitation of Parties agree that the excess Associated Natural Gas of an Oil Field has no commercial value, then such gas shall be disposed of by the Operator subject to relevant regulations concerning the environmental protection, provided that there is justified and if the State at any time wishes no impediment to utilize it, the Ministry shall notify the Contractor normal production of the State’s wish, in which event:Crude Oil.
(a) 18.1.2.2 If any Party to the Contractor shall put at Contract considers unilaterally that the disposal of the State free of charge the Crude Oil and excess Associated Natural Gas separation facilities for all or part of an Oil Field has commercial value, such gas may be utilized by that Party at its own expense without affecting timing and optimal development of the Oil Field(s) concerned, the amount of "cost recovery oil" and "allocable remainder oil" due to the other Party to the Contract which does not invest in such utilization.
18.1.2.3 If the Parties agree that excess that Associated Natural Gas of an Oil Field has commercial value, the State wishes Parties shall make further investment in its utilization in proportion to utilize;
(b) their respective participating interests in the State development of the Oil Field. However, the Parties' respective share in the i(degree)cost recovery oil" and i(degree)allocable remainder oili+/-allocated according to the Contract shall not be responsible for affected hereby. If the gathering, treatment, compression and transportation Parties disagree on the commercial utilization of such excess Associated Natural Gas from the receiving point at the Contractor’s facilities and for bearing any additional costs and liabilities related thereto; and
(c) the construction of the facilities necessary for the operations referred to in paragraph (b) above, together with the recovery of that excess Oil Field, they shall, guided by the State shall be carried principle of mutual benefit, carry out further negotiations to reach an agreement in accordance with generally accepted practice of the international petroleum industrywriting.
13.2.4 In no event shall the Operations carried out by the State in relation to such Associated Natural Gas interfere with Petroleum Operations of the Contractor.
13.2.5 Any excess Associated Natural Gas not utilized in accordance with Articles 13.2.1, 13.2.2 and 13.2.3 shall be re-injected by the Contractor in accordance with Article 6.14. Flaring will be permitted only in accordance with the Hydrocarbons Law and is subject to the approval of the Ministry. The Contractor shall be permitted to flare Associated Natural Gas without the approval of the Ministry in the event of an emergency, provided that every effort is made to diminish and extinguish such flaring of Natural Gas as soon as possible. The Ministry has the right to offtake, free of charge, at the wellhead or gas oil separator all Natural Gas that would otherwise be re-injected or flared by the Contractor.
Appears in 1 contract
Associated Natural Gas. 13.2.1 22.2.1 For the purposes of this Article, Associated Natural Gas shall be Natural Gas which is not considered Non-Associated Natural Gas. In the event that of a Discovery of Crude Oil is considered to be a Commercial Discoverycontaining Associated Natural Gas, the Contractor CONTRACTOR shall state specify in the report referred to in Article 5.3 11.4 of this Contrat whether it considers that or not production of the Production of Associated Natural Gas is likely to exceed the quantities necessary (after processing of said Associated Gas for the requirements purpose of separating Crude Petroleum) exceeds the volumes utilised for Petroleum Operations relating to the Production of Crude Oil (including re-injection operationsand fuel), and whether it considers that such excess is capable of being produced in commercial quantitiessurplus may be available for marketing. In Should the event CONTRACTOR advise the Contractor has informed the Ministry of such an excessSTATE that a marketable surplus exists, the Ministry and the Contractor Parties shall jointly assess the possible markets and uses marketing outlets for such excess of Associated Natural GasGas surplus, in respect of both on the local market and for the export market (including the possibility of the joint marketing sale of their shares share of Production production of that excess of such surplus Associated Natural Gas in the event such excess would surplus is not otherwise be commercially exploitablesuitable for commercial exploitation in any other manner), together with as well as the means necessary for its marketing.
13.2.2 In commercial Exploitation. Should the event the Ministry and the Contractor should decide Parties agree that the Development development for sale of the excess Associated Natural Gas is justifiedwarranted, or the CONTRACTOR shall specify, in the event the Contractor should wish Exploitation Work Programme and corresponding Budget referred to develop and produce such excessin Article 11.7 of this Contact, the Contractor shall indicate in the Development and Production Plan the additional facilities necessary installations required for the Development development and Production production of this surplus and the estimated applicable costs. In such excess and its estimate of event, the costs related thereto. The Contractor CONTRACTOR shall then be free to proceed with the Development development and Production production of such excess this surplus, in accordance with the Development Exploitation Work Programme and Production Plan submitted and corresponding Budget approved by the Ministry under Operating Committee pursuant to the provisions of Article 5.511.7 above, and the provisions of this Contract applicable to Crude Oil shall apply “mutatis mutandis” to the surplus Associated Natural Gas, subject to the special provisions referred to in Article 22.3 below. A similar procedure shall be applicable apply if it is decided to proceed with the sale or marketing of the Associated Natural Gas while Exploitation of the field is in progress.
22.2.2 Should the CONTRACTOR conclude that Exploitation of the surplus Associated Natural Gas is agreed during not warranted, and should the Production of a Field.
13.2.3 In the event the Contractor does not consider the exploitation of the excess Associated Natural Gas is justified and if the State STATE at any time wishes decide to utilize itutilise such Associated Natural Gas, the Ministry STATE shall notify advise the Contractor of the State’s wishCONTRACTOR, in which event:
(a) The CONTRACTOR shall make available to the Contractor shall put STATE, free of charge, at the disposal outlet of the State free separator of charge the Crude Oil and Associated Natural Gas separation facilities for Gas, all or part of such excess that surplus which the State wishes STATE elects to utilizelift;
(b) the State The STATE shall be responsible for the gathering, treatmentprocessing, compression compressing and transportation of transporting such excess Associated Natural Gas surplus from the receiving point at the Contractor’s facilities separator referred to above, and for bearing any it shall assume all additional costs and liabilities related risks associated with the Petroleum Operations pertaining thereto; and;
(c) the The construction of the facilities infrastructure necessary for to the operations referred to in paragraph (bb) above, together with as well as the recovery lifting of that excess such surplus by the State STATE, shall be carried out in accordance with the generally accepted practice of practices in the international petroleum industry, and in a manner which does not hinder the production, lifting and transport of Crude Oil by the CONTRACTOR.
13.2.4 In no event shall the Operations carried out by the State in relation to such 22.2.3 Any surplus of Associated Natural Gas interfere with Petroleum Operations which is not utilised pursuant to the provisions of the Contractor.
13.2.5 Any excess Associated Natural Gas not utilized in accordance with Articles 13.2.1, 13.2.2 Article 22.2.1 and 13.2.3 22.2.2 above shall be re-injected by the Contractor CONTRACTOR. However, the CONTRACTOR shall have the right to flare such gas in accordance with Article 6.14. Flaring will be permitted only in accordance with the Hydrocarbons Law and is subject to the approval of the Ministry. The Contractor shall be permitted to flare Associated Natural Gas without the approval of the Ministry generally accepted practices in the event of an emergencyinternational petroleum industry, provided the CONTRACTOR shall furnish the Operating Committee with a report which justifies that every effort is made to diminish this gas cannot be utilised profitably for the purpose of increasing the recovery of Crude Petroleum by means of reinjection, and extinguish in such flaring event, the Minister in charge of Natural Gas as soon as possible. The Ministry has hydrocarbons shall approve the right to offtake, free of charge, at the wellhead or gas oil separator all Natural Gas that would otherwise be re-injected or flared by the Contractorflaring.
Appears in 1 contract