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Common use of Associated Natural Gas Clause in Contracts

Associated Natural Gas. In the event of a discovery of a commercially exploitable deposit of Crude Petroleum containing Associated Natural Gas, the Contractor shall indicate in the report provided for in Article 9.3 here above whether he considers that the production of such Associated Natural Gas is likely to exceed the quantities necessary for the purposes of Petroleum Operations relative to the production of Crude Petroleum, including therein the operations of reinjection, and whether it considers that such excess is likely to be produced in marketable quantities. In the case where the Contractor will have advised the Minister of such an excess amount, the Parties shall jointly evaluate the possible markets for such excess amount, both on the local and the export markets, including therein the possibility of a joint marketing of their shares of production of such excess amount as well as the means necessary for its marketing. In the case where the Parties should agree to exploit the excess amount of the Associated Natural Gas, or in the case where the Contractor should decide to exploit such amount for export, the Contractor shall indicate in the development and production program referred to in Article 9.5 here above the additional facilities necessary for the development and exploitation of such excess amount and his estimate of the costs pertaining thereto. The Contractor must then proceed with the development and the exploitation of such excess amount pursuant to the development and production program submitted and approved by the Minister within the terms set forth in Article 9.5 here above, and the provisions of this Contract applicable to the Crude Petroleum shall apply mutatis mutandis to the excess quantity of Natural Gas, subject to the special provisions set forth in Articles 15.7 to 15.9 here below. A similar procedure to that described in the paragraph here above shall be followed if the marketing of the Associated Natural Gas is decided upon during the course of the exploitation of a deposit.

Appears in 4 contracts

Samples: Exploration and Production Contract, Exploration and Production Contract, Exploration and Production Contract (Kosmos Energy Ltd.)

Associated Natural Gas. 22.2.1 For the purposes of this Article 22, Associated Natural Gas shall be Natural Gas which is not considered Non-Associated Natural Gas. In the event of a discovery of a commercially exploitable deposit of Crude Petroleum Discovery containing Associated Natural Gas, the Contractor CONTRACTOR shall indicate specify in the report provided for referred to in Article 9.3 here above 11.4 of this Contract whether he considers that the or not production of such the Associated Natural Gas is likely to exceed the quantities necessary (after processing of said Natural Associated Gas for the purposes purpose of separating Crude Petroleum) exceeds the volumes utilised for Petroleum Operations relative to the production of Crude Petroleum, (including therein the operations of reinjectionre-injection and fuel), and whether it considers that such excess is likely to surplus may be produced in available for marketing. Should the CONTRACTOR advise the STATE that a marketable quantities. In the case where the Contractor will have advised the Minister of such an excess amountsurplus exists, the Parties shall jointly evaluate the possible markets assess marketing outlets for such excess amountAssociated Natural Gas surplus, in respect of both on the local market and the export markets, market (including therein the possibility of a the joint marketing sale of their shares share of production of such excess amount surplus Associated Natural Gas in the event such surplus is not suitable for commercial exploitation in any other manner), as well as the means necessary for its marketingcommercial Exploitation. In the case where Should the Parties should agree to exploit the excess amount that development for sale of the Associated Natural GasGas is warranted, or the CONTRACTOR shall specify, in the case where the Contractor should decide Exploitation Work Programme and corresponding Budget referred to exploit such amount for exportin Article 11.7 of this Contact, the Contractor shall indicate in additional installations required for the development and production program referred of this surplus and the estimated applicable costs. In such event, the CONTRACTOR shall be free to in Article 9.5 here above the additional facilities necessary for the development and exploitation of such excess amount and his estimate of the costs pertaining thereto. The Contractor must then proceed with the development and production of this surplus, in accordance with the exploitation of such excess amount Exploitation Work Programme and corresponding Budget approved by the Operating Committee pursuant to the development and production program submitted and approved by the Minister within the terms set forth in provisions of Article 9.5 here 11.7 above, and the provisions of this Contract applicable to the Crude Petroleum shall apply "mutatis mutandis mutandis" to the excess quantity of surplus Associated Natural Gas, subject to the special provisions set forth referred to in Articles 15.7 to 15.9 here Article 22.3 below. A similar procedure shall apply if it is decided to that described in proceed with the paragraph here above shall be followed if the sale or marketing of the Associated Natural Gas is decided upon during the course while Exploitation of the exploitation field is in progress. 22.2.2 Should the CONTRACTOR conclude that Exploitation of the surplus Associated Natural Gas is not warranted, and should the STATE at any time decide to utilise such Associated Natural Gas, the STATE shall advise the CONTRACTOR, in which event: a) The CONTRACTOR shall make available to the STATE, free of charge, at the outlet of the separator of Crude Oil and Natural Gas, all or part of such surplus which the STATE elects to lift; b) The STATE shall be responsible for gathering, processing, compressing and transporting such surplus from the separator referred to above, and it shall assume all additional costs and risks associated with the Petroleum Operations pertaining thereto; c) The construction of infrastructure necessary for the operations referred to in paragraph b) above, as well as the lifting of such surplus by the STATE, shall be carried out in accordance with the generally accepted practices in the international petroleum industry, and in a depositmanner which does not hinder the production, lifting and transport of Crude Petroleum by the CONTRACTOR. 22.2.3 Any surplus of Associated Natural Gas which is not utilised pursuant to the provisions of Articles 22.2.1 and 22.2.2 above shall be re-injected by the CONTRACTOR. However, the CONTRACTOR shall have the right to flare such gas in accordance with Law n°2011/25 of December 14, 2011 of the development of Associated Gas, as well as generally accepted practices in the international petroleum industry, provided the CONTRACTOR shall furnish the Operating Committee with a report which justifies that this gas cannot be utilised profitably for the purpose of increasing the recovery of Crude Petroleum by means of reinjection, and in such event, the Minister in charge of Hydrocarbons shall approve the flaring.

Appears in 3 contracts

Samples: Production Sharing Contract, Production Sharing Contract, Production Sharing Contract

Associated Natural Gas. 13.2.1 In the event of that a discovery of a commercially exploitable deposit Discovery of Crude Petroleum containing Associated Natural GasOil is considered to be a Commercial Discovery, the Contractor shall indicate state in the report provided for referred to in Article 9.3 here above 5.3 whether he it considers that the production Production of such Associated Natural Gas is likely to exceed the quantities necessary for the purposes requirements of Petroleum Operations relative relating to the production Production of Crude Petroleum, Oil (including therein the operations of reinjectionre-injection operations), and whether it considers that such excess is likely to be capable of being produced in marketable commercial quantities. In the case where event the Contractor will have advised has informed the Minister Ministry of such an excess amountexcess, the Parties Ministry and the Contractor shall jointly evaluate assess the possible markets and uses for such excess amountof Associated Natural Gas, both on the local market and the for export markets, (including therein the possibility of a joint marketing of their shares of production Production of that excess of Associated Natural Gas in the event such excess amount as well as would not otherwise be commercially exploitable), together with the means necessary for its marketing. . 13.2.2 In the case where event the Parties Ministry and the Contractor should agree to exploit decide that the Development of the excess amount of the Associated Natural GasGas is justified, or in the case where event the Contractor should decide wish to exploit develop and produce such amount for exportexcess, the Contractor shall indicate in the development Development and production program referred to in Article 9.5 here above Production Plan the additional facilities necessary for the development Development and exploitation Production of such excess amount and his its estimate of the costs pertaining related thereto. The Contractor must shall then proceed with the development Development and the exploitation Production of such excess amount pursuant to in accordance with the development Development and production program Production Plan submitted and approved by the Minister within the terms set forth in Ministry under Article 9.5 here above, and the provisions of this Contract applicable to the Crude Petroleum shall apply mutatis mutandis to the excess quantity of Natural Gas, subject to the special provisions set forth in Articles 15.7 to 15.9 here below5.5. A similar procedure to that described in the paragraph here above shall be followed applicable if the sale or marketing of the Associated Natural Gas is decided upon agreed during the course Production of a Field. 13.2.3 In the event the Contractor does not consider the exploitation of a depositthe 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.

Appears in 3 contracts

Samples: Production Sharing Contract, Production Sharing Contract, Production Sharing Contract

Associated Natural Gas. In the event of a discovery of a commercially exploitable deposit of Crude Petroleum containing Associated Natural Gas, the Contractor shall indicate in the report provided for in Article 9.3 here above 9.2 hereinabove whether he considers that the production of such Associated Natural Gas is likely to exceed the quantities necessary for the purposes of Petroleum Operations relative to the production of Crude Petroleum, including therein the operations of reinjection, and whether it considers that such excess is likely to be produced in marketable quantities. In the case where the Contractor will have advised the Minister of such an excess amount, the Parties shall jointly evaluate the possible markets for such excess amount, both on the local and the export markets, including therein the possibility of a joint marketing of their shares of production of such excess amount as well as the means necessary for its marketing. In the case where the Parties should agree to exploit the excess amount of the Associated Natural Gas, or in the case where the Contractor should decide to exploit such amount for export, the Contractor shall indicate in the development and production program programme referred to in Article 9.5 here above hereinabove the additional facilities necessary for the development and exploitation of such excess amount and his estimate of the costs pertaining thereto. The Contractor must then proceed with the development and the exploitation of such excess amount pursuant to the development and production program programme submitted and approved by the Minister within the terms set forth in Article 9.5 here abovehereinabove, and the provisions of this Contract applicable to the Crude Petroleum shall apply mutatis mutandis to the excess quantity of Natural Gas, subject to the special provisions set forth in Articles 15.7 to 15.9 here below. A similar procedure to that described in the paragraph here above hereinabove shall be followed if the marketing of the Associated Natural Gas is decided upon during the course of the exploitation of a deposit.

Appears in 1 contract

Samples: Exploration and Production Contract (Kosmos Energy Ltd.)

Associated Natural Gas. (a) In the event of a discovery of a commercially exploitable deposit commercial Discovery of Crude Petroleum containing Associated Natural GasOil, the Contractor shall indicate state in the report provided for referred to in Article 9.3 here above whether he 5.3 if it considers that the production of such Associated Natural Gas is likely to exceed the quantities necessary for the purposes requirements of Petroleum the Hydrocarbons Operations relative related to the production of Crude Petroleum, Oil (including therein the operations of reinjectionreinjection operations), and whether if it considers that such excess is likely to be capable of being produced in marketable commercial quantities. In the case where event the Contractor will have advised has informed the Minister of such an excess amountexcess, the Parties shall jointly evaluate assess the possible markets outlets for such that excess amountof Natural Gas, both on the local market and the for export markets, (including therein the possibility of a joint marketing of their shares of production of that excess of Natural Gas in the event such excess amount as well as would not otherwise be commercially exploitable), together with the means necessary for its marketing. In the case where event the Parties should agree to exploit decide that the development of the excess amount of the Associated Natural GasGas is justified, or in the case where event the Contractor should decide would wish to exploit such amount develop and produce that excess for export, the Contractor shall indicate in the development and production program plan referred to in Article 9.5 here above 5.6 the additional facilities necessary for the development and exploitation of such that excess amount and his its estimate of the costs pertaining related thereto. The Contractor must shall then proceed with the development and the exploitation of such that excess amount pursuant to in accordance with the development and production program plan submitted and approved by the Minister within pursuant to the terms set forth in provisions of Article 9.5 here above5.6, and the provisions of this Contract applicable to the Crude Petroleum Oil shall apply apply, mutatis mutandis mutandis, to the excess quantity of Natural Gas, subject to the special provisions set forth unless otherwise specifically provided in Articles 15.7 to 15.9 here belowthis Contract. A similar procedure to that described in the paragraph here above shall be followed applicable if the sale or marketing of the Associated Natural Gas is decided upon during the course of the exploitation of a depositField. (b) In the event the Contractor should not consider the exploitation of the excess of Natural Gas as justified and if the Minister, at any time, would wish to utilize it, the Minister shall notify the Contractor thereof, in which event : (i) the Contractor shall make available to the Republic free of charge at the Crude Oil and Natural Gas separation facilities all or part of the excess that the Minister wishes to lift ; (ii) the Republic shall be responsible for the gathering, treatment, compression and transportation of that excess from the above-mentioned separation facilities, and shall bear any additional costs related thereto ; (iii) the construction of the facilities necessary for the operations referred to in paragraph (ii) above, together with the lifting of that excess by the Republic, shall be carried out in accordance with good international petroleum industry practice and in such a manner as not to hinder the production, lifting and transportation of Crude Oil by the Contractor. (c) Any excess of Associated Natural Gas which would not be utilized under Articles 13.2(a) and 13.2(b), shall be reinjected by the Contractor. However, the Contractor shall have the right to flare said gas in accordance with good international petroleum industry practice, provided that the Contractor furnishes the Minister with a report demonstrating that said gas cannot be economically utilized to improve the rate of recovery of Crude Oil by means of reinjection, and provided, further, that the Minister approves said flaring, which approval shall not be unreasonably withheld.

Appears in 1 contract

Samples: Production Sharing Contract

Associated Natural Gas. In the event of a discovery of a commercially exploitable deposit of Crude Petroleum containing Associated Natural Gas, the Contractor shall indicate in the report provided for in Article 9.3 here above whether he considers that the production of such Associated Natural Gas is likely to exceed the quantities necessary for the purposes of Petroleum Operations relative to the production of Crude Petroleum, including therein the operations of reinjection, and whether it considers that such excess is likely to be produced in marketable quantities. In the case where the Contractor will have advised the Minister of such an excess amount, the Parties shall jointly evaluate the possible markets for such excess amount, both on the local and the export markets, including therein the possibility of a joint marketing of their shares of production of such excess amount as well as the means necessary for its marketing. In the case where the Parties should agree to exploit the excess amount of the Associated Natural Gas, or in the case where the Contractor should decide to exploit such amount for export, the Contractor shall indicate in the development and production program referred to in Article 9.5 here above the additional facilities necessary for the development and exploitation of such excess amount and his estimate of the costs pertaining thereto. The Contractor must then proceed with the development and the exploitation of such excess amount pursuant to the development and production program submitted and approved by the Minister within the terms set forth in Article 9.5 here above, and the provisions of this Contract applicable to the Crude Petroleum shall apply mutatis mutandis to the excess quantity of Natural Gas, subject to the special provisions set forth in Articles 15.7 to 15.9 here below. A similar procedure to that described in the paragraph here above shall be followed if the marketing of the Associated Natural Gas is decided upon during the course of the exploitation of a deposit.Articles

Appears in 1 contract

Samples: Exploration and Production Contract