Contractual Price. 1.1 The Contractual Price for each type of Hydrocarbon will be determined based on the provisions of the Hydrocarbon Revenues Law, in accordance with the procedure established in this Annex 3. 1.2 Each Period, the Considerations indicated in Articles 16.2 paragraphs (b) and (c), and 16.3 paragraphs (a) and (b), will be calculated based on the Contractual Price of each type of Hydrocarbon, that shall be determined based on the criteria established in this Annex 3. 1.3 For purposes of this Annex 3, t shall mean the sub index corresponding to the Period. In case the Petroleum Activities are conducted during a Period which does not encompass a complete Month, the Period shall be the number of Days during which this Contract was actually in effect. 1.4 The Contractual Price of Crude Oil per Barrel will be determined as follows: (a) In case that during the Period the Contractor markets under Market Rules at least fifty percent (50%) of the Crude Oil volume delivered to it during the Period or there is a commitment for such marketing (including long term sale contracts under which the price is determined by Market Rules), the Contractual Price of Crude Oil for the Period in which the marketing is registered shall be equal to the average observed sale price weighted by the corresponding volume, that the Contractor has marketed or committed to market. In the case of any volume that the Contractor sells or delivers to an Affiliate or a related party, which is in turn marketed to a third party without any intermediate treatment or processing, the sales price and volume corresponding to such Affiliate or related party transaction with a third party, may be considered in the calculation of the Contractual Price of Crude Oil during the Period. (b) In case that, during the Period, the Contractor does not market under Market Rules at least fifty per cent (50%) of the Crude Oil volume delivered to it in the Period, but the Marketer has registered marketing of the Crude Oil corresponding to the Contract Area based on Market Rules, the Contractual Price of Crude Oil shall be equal to the average price, weighted by the corresponding volume, reported by the Marketer. [illegible signatures] (c) If at the end of the corresponding Period the Contractor has not registered marketing under Market Rules, of at least fifty percent (50%) of the Crude Oil volume delivered to him during the Period, or by the Marketer, the Contractual Price of Crude Oil shall be calculated based on the corresponding formula as a function of the API grade and sulfur content corresponding to the Crude Oil extracted within the Contract Area during the Period. The foregoing considering the prices for Light Louisiana Sweet (LLS) and Xxxxx xxxxxx crudes, published during the Period by an international company specialized in the publishing of reference information on prices, according to the following:
Appears in 2 contracts
Samples: Contract for the Exploration and Extraction of Hydrocarbons (SAILFISH ENERGY HOLDINGS Corp), Contract for the Exploration and Extraction of Hydrocarbons (SAILFISH ENERGY HOLDINGS Corp)
Contractual Price. 1.1 The Contractual Price for each type of Hydrocarbon will be determined based on the provisions of the Hydrocarbon Revenues Law, in accordance with the procedure established in this Annex 3.
1.2 Each Period, the Considerations indicated in Articles 16.2 paragraphs (b) and (c), and 16.3 paragraphs (a) and (b), ) will be calculated based on the Contractual Price of each type of Hydrocarbon, that shall be determined based on the criteria established in this Annex 3.
1.3 For purposes of this Annex 3, t shall mean the sub index corresponding to the Period. In case the Petroleum Activities are conducted during a Period which does not encompass a complete Month, the Period shall be the number of Days during which this Contract was actually in effect.
1.4 The Contractual Price of Crude Oil per Barrel will be determined as follows:
(a) In case that during the Period the Contractor markets under Market Rules at least fifty percent (50%) of the Crude Oil volume delivered to it during the Period or there is a commitment for such marketing (including long term sale contracts under which the price is determined by Market Rules), the Contractual Price of Crude Oil for the Period in which the marketing is registered shall be equal to the average observed sale price weighted by the corresponding volume, that the Contractor has marketed or committed to market. In the case of any volume that the Contractor sells or delivers to an Affiliate or a related party, which is in turn marketed to a third party without any intermediate treatment or processing, the sales price and volume corresponding to such Affiliate or related party transaction with a third party, may be considered in the calculation of the Contractual Price of Crude Oil during the Period.. [illegible signatures]
(b) In case that, during the Period, the Contractor does not market under Market Rules at least fifty per cent (50%) of the Crude Oil volume delivered to it in the Period, but the Marketer has registered marketing of the Crude Oil corresponding to the Contract Area based on Market Rules, the Contractual Price of Crude Oil shall be equal to the average price, weighted by the corresponding volume, reported by the Marketer. [illegible signatures].
(c) If at the end of the corresponding Period the Contractor has not registered marketing under Market Rules, of at least fifty percent (50%) of the Crude Oil volume delivered to him during the Period, or by the Marketer, the Contractual Price of Crude Oil shall be calculated based on the corresponding formula as a function of the API grade and sulfur content corresponding to the Crude Oil extracted within the Contract Area during the Period. The foregoing considering the prices for Light Louisiana Sweet (LLS) and Xxxxx xxxxxx crudes, published during the Period by an international company specialized in the publishing of reference information on prices, according to the following:
Appears in 1 contract
Samples: Contract for the Exploration and Extraction of Hydrocarbons (SAILFISH ENERGY HOLDINGS Corp)
Contractual Price. 1.1 The Contractual Price for each type of Hydrocarbon will be determined based on the provisions of the Hydrocarbon Revenues Law, in accordance with the procedure established in this Annex 3.
1.2 Each Period, the The Considerations indicated in Articles 16.2 paragraphs (b) and (c), and 16.3 paragraphs (a) and (b), will be calculated based on the Contractual Price of each type of Hydrocarbon, that shall be determined based on the criteria established in this Annex 3.
1.3 For purposes of this Annex 3, t shall mean the sub index corresponding to the Period. In case the Petroleum Activities are conducted during a Period which does not encompass a complete Month, the Period period shall be the number of Days during which this Contract was actually in effect.
1.4 The Contractual Price of Crude Oil per Barrel will be determined as follows:
(a) In case that during the Period the Contractor markets under Market Rules at least fifty percent (50%) of the Crude Oil volume delivered to it during in the Period or there is a commitment for such marketing (including long term sale contracts under which the price is determined by Market Rules), the Contractual Price of Crude Oil for in the Period in which the marketing is registered shall be equal to the weighted average observed sale price weighted by for the corresponding volume, volume in each case that the Contractor has marketed or committed to market. In the case of that any volume that the Contractor sells or delivers to an Affiliate or a related party, which party is in turn marketed to a third party without any intermediate treatment or processing, the sales sale price and volume corresponding to such Affiliate or related party transaction with a third party, may be considered in the calculation of the Contractual Price of Crude Oil during in the Period.
(b) In case that, that during the Period, Period the Contractor does not market under Market Rules at least fifty per cent (50%) of the Crude Oil volume delivered to it in the Period, but the Marketer has registered marketing of the Crude Oil corresponding to the Contract Area based on Market Rules, the Contractual Price of Crude Oil shall be This English version is only a translation of the Model Contract included in the Bidding Guidelines that govern the Bidding Process CNH-R01-L01/2014, and is provided only for reference. In the event of any dispute or discrepancy, the Spanish version shall prevail and be treated as the correct version (for all intents and purpose). equal to the weighted average price, weighted by price for the corresponding volume, reported by the Marketer. [illegible signatures].
(c) If at the end of the corresponding Period the Contractor has not registered marketing under Market Rules, Rules of at least fifty percent (50%) of the Crude Oil volume delivered to him the Contractor during the Period, or by the Marketer, the Contractual Price of Crude Oil shall be calculated based on the corresponding following formula as a function of the API grade gravity degrees and sulfur content corresponding to the Crude Oil extracted within in the Contract Area during in the Period. The foregoing considering the prices for Light Louisiana Sweet (LLS) and Xxxxx xxxxxx crudes, crudes published during in the Period by an international company specialized in the publishing of reference information on prices, according to the following:
i. If the Contractor marketed less than fifty percent (50%) of the Crude Oil volume delivered to it in the Period, or if marketing was carried out by the Contractor or the Marketer with Related Parties, the Contractual Price of the Crude Oil will be the average of the prices calculated using the corresponding formula at the date of each marketing transaction, using the marker prices at such date, weighted based on the volume involved in each transaction carried out in the Period.
ii. If there was no marketing because the volume of Crude Oil produced in the period and registered at the Measurement Point was kept in storage under the ownership of the Contractor or the Marketer, the Contractual Price of Crude Oil will be calculated using the corresponding formula, considering the simple average of the marker prices during the Period. The referenced formulas to calculate the Contractual Price of the Crude Oil are: API Grade of Crude Oil extracted in the Contract Area Applicable formula to calculate the Contractual Price of Crude Oil 21.0° < ≤ 31.1° , = 0.198 ∙ LLSt +0.814 ∙ Xxxxxx – 2.522 ∙ S 31.1o < API ≤ 39.0o , = 0.167 ∙ LLSt +0.840 ∙ Xxxxxx – 1.814 ∙ S 39.0o < API , = 0.0800 ∙ LLSt +0.920 ∙ Xxxxxx Where: , = Contractual Price of Crude Oil in Period t. = Adjustment parameter for quality, using weighted average API Gravity Degrees of Crude Oil produced in the Contract Area. LLS t = Average market price of Louisiana Light Sweet Crude (LLS) in Period x. Xxxxx t = Average market price of Xxxxx Xxxxx [ICE] in Period t. = Adjustment parameter for quality, using the value of the weighted average sulfur content of Crude Oil produced in the Contract Area, using two decimal points (for example, 3.00 will be used for 3%). The formulas to calculate the Contractual Price may be updated in this Contract to reflect the structural adjustments in the Hydrocarbons market, based on the information that the Ministry of Finance publishes in the annual report referenced in article 5 of the Hydrocarbon Revenues Law. In case that prices for LLS and Xxxxx xxxxxx crudes are no longer published, the Ministry of Finance shall establish a new formula taking into account other marker crudes that have trading liquidity and reflect market conditions. In case a Crude Oil in the market has the same quality characteristics (same API degrees and sulfur content) than that of the Crude Oil produced in the Contract Area during the corresponding Period, the Contractual Price of Crude Oil will be the one according to subparagraph (c), and will be calculated considering the market price that is Free On Board (FOB), instead of estimated value using the corresponding formula. Regarding the previous paragraph, the Contractor must present the documents with the verifiable information, published during the Period by an international company specialized in publishing reference information on prices, which proofs that the proposed Crude Oil has the same API degrees and sulfur content than that of the Crude Oil produced in the Contract Area, according to the measurements carried out by CNH during the Period.
(d) In case that the Contractual Price of Crude Oil in the immediately preceding Period or in the two immediately preceding Periods was determined using the formulas established in subparagraph (c) of this subsection, and that during the Period there is marketing of Crude Oil by the Contractor or the Marketer in accordance with subparagraphs (a) and (b) of this subsection, the Contractual Price of Crude Oil in the Period will be determined using the following formula, as long as the difference between the estimated price based on the formula and the observed price during the marketing of Crude Oil based on Market Rules in Period is less or equal than fifty per cent (50%) of the observed price: × ∑12 ,− − ∑12 ,− , = =0 =1 , = Contractual Price of Crude Oil in Period . = Observed Price in marketing of Crude Oil based on Market Rules in Period . =0 ∑12 ,− =Sum of Volume of Production of Crude Oil registered at Measurement Point in Periods , − 1 and if applicable, − 2. =1 ∑12 ,−=Sum of Contractual Value of Crude Oil in Period − 1, and if applicable, − 2. ,= Volume of production of Crude Oil registered at the Measurement Point in Period . In case that the difference between the price estimated by the formula and the observed price during the Crude Oil marketing based on Market Rules in the Period is greater than fifty percent (50%) of the observed price, the Contractual Price of Crude Oil shall be determined as follows:
i. If the price estimated by the formula is greater than the observed price, the Contractual Price shall be: , = × 1.5
ii. If the price estimated by the formula is less than the observed price, the Contractual Price shall be: , = × 0.5 Any variation in the Contractual Value of Crude Oil produced during the preceding Period or the two immediately preceding Periods, which persists considering the determination of the Contractual Price in accordance with this subparagraph (d) and the price observed under Market Rules, may be settled within three (3) following Periods through the adjustments determined by the Ministry of Finance, as part of its verifications functions, in accordance with subsection 8.4 of this Annex 3.
(e) In order for the price resulting from the marketing carried out by the Contractor to be considered in the determination of the Contractual Price of Crude Oil, the Contractor must have indicated prior to the closing of the Period the relevant characteristics of the marketing carried out, including the aspects to determine the applicable price under Market Rules. Notwithstanding, the Contractor shall report the total revenues, the volume of Crude Oil and the average weighted price it obtains as a result of the marketing of the Crude Oil allocated to it as Considerations.
Appears in 1 contract
Samples: Contract for the Exploration and Extraction of Hydrocarbons
Contractual Price. 1.1 The Contractual Price for each type of Hydrocarbon will be determined based on the provisions of the Hydrocarbon Revenues Law, in accordance with the procedure established in this Annex 3.
1.2 Each Period, the The Considerations indicated in Articles 16.2 15.2 paragraphs (b) and (c), and 16.3 15.3 paragraphs (a) and (b), will be calculated based on the Contractual Price of each type of Hydrocarbon, that shall be determined based on the criteria established in this Annex 3.
1.3 For purposes of this Annex 3, t shall mean the sub index corresponding to the Period. In case the Petroleum Activities are conducted during a Period which does not encompass a complete Month, the Period period shall be the number of Days during which this Contract was actually in effectforce.
1.4 The Contractual Price of Crude Oil per Barrel will be determined as follows:
(a) In case that during the Period the Contractor markets under Market Rules at least fifty percent (50%) of the Crude Oil volume delivered to it during in the Period or there is a commitment for such marketing (including long term sale contracts under which the price is determined by Market Rules), the Contractual Price of Crude Oil for in the Period in which the marketing is registered shall be equal to the weighted average observed sale price weighted by for the corresponding volume, volume in each case that the Contractor has marketed or committed to market. In the case of that any volume that the Contractor sells or delivers to an Affiliate or a related party, which party is in turn marketed to a third party without any intermediate treatment or processing, the sales sale price and volume corresponding to such Affiliate or related party transaction with a third party, may be considered in the calculation of the Contractual Price of Crude Oil during in the Period.
(b) In case that, that during the Period, Period the Contractor does not market under Market Rules at least fifty per cent (50%) of the Crude Oil volume delivered to it in the Period, but the Marketer has registered marketing of the Crude Oil corresponding to the Contract Area based on Market Rules, the Contractual Price of Crude Oil shall be equal to the weighted average price, weighted by price for the corresponding volume, reported by the Marketer. [illegible signatures].
(c) If at the end of the corresponding Period the Contractor has not registered marketing under Market Rules, Rules of at least fifty percent (50%) of the Crude Oil volume delivered to him the Contractor during the Period, or by the Marketer, the Contractual Price of Crude Oil shall be calculated based on the corresponding following formula as a function of the API grade gravity degrees and sulfur content corresponding to the Crude Oil extracted within in the Contract Area during in the Period. The foregoing considering the prices for Light Louisiana Sweet (LLS) and Xxxxx xxxxxx crudes, crudes published during in the Period by an international company specialized in the publishing of reference information on prices, according to the following:
i. If the Contractor marketed less than fifty percent (50%) of the Crude Oil volume delivered to it in the Period, or if marketing was carried out by the Contractor or the Marketer with Related Parties, the Contractual Price of the Crude Oil will be the average of the prices calculated using the corresponding formula at the date of each marketing transaction, using the marker prices at such date, weighted based on the volume involved in each transaction carried out in the Period.
ii. If there was no marketing because the volume of Crude Oil produced in the period and registered at the Measurement Point was kept in storage under the ownership of the Contractor or the Marketer, the Contractual Price of Crude Oil will be calculated using the corresponding formula, considering the simple average of the marker prices during the Period. The referenced formulas to calculate the Contractual Price of the Crude Oil are: API Grade of Crude Oil extracted in the Contract Area Applicable formula to calculate the Contractual Price of Crude Oil 21.0° < ≤ 31.1° , = 0.198 ∙ LLSt +0.814 ∙ Xxxxxx – 2.522 ∙ S 31.1o < API ≤ 39.0o , = 0.167 ∙ LLSt +0.840 ∙ Xxxxxx – 1.814 ∙ S 39.0o < API , = 0.0800 ∙ LLSt +0.920 ∙ Xxxxxx , = Contractual Price of Crude Oil in Period t. = Adjustment parameter for quality, using weighted average API LLS t = Gravity Degrees of Crude Oil produced in the Contract Area. Average market price of Louisiana Light Sweet Crude (LLS) in Xxxxx t = Period t. Average market price of Xxxxx Xxxxx [ICE] in Period t. = Adjustment parameter for quality, using the value of the weighted average sulfur content of Crude Oil produced in the Contract Area, using two decimal points (for example, 3.00 will be used for 3%). The formulas to calculate the Contractual Price may be updated in this Contract to reflect the structural adjustments in the Hydrocarbons market, based on the information that the Ministry of Finance publishes in the annual report referenced in article 5 of the Hydrocarbon Revenues Law. In case that prices for LLS and Xxxxx xxxxxx crudes are no longer published, the Ministry of Finance shall establish a new formula taking into account other marker crudes that have trading liquidity and reflect market conditions. In case a Crude Oil in the market has the same quality characteristics (same API degrees and sulfur content) than that of the Crude Oil produced in the Contract Area during the corresponding Period, the Contractual Price of Crude Oil will be the one according to subparagraph (c), and will be calculated considering the market price that is Free On Board (FOB), instead of estimated value using the corresponding formula. Regarding the previous paragraph, the Contractor must present the documents with the verifiable information, published during the Period by an international company specialized in publishing reference information on prices, which proofs that the proposed Crude Oil has the same API degrees and sulfur content than that of the Crude Oil produced in the Contract Area, according to the measurements carried out by CNH during the Period.
(d) In case that the Contractual Price of Crude Oil in the immediately preceding Period or in the two immediately preceding Periods was determined using the formulas established in subparagraph (c) of this subsection, and that during the Period there is marketing of Crude Oil by the Contractor or the Marketer in accordance with subparagraphs (a) and (b) of this subsection, the Contractual Price of Crude Oil in the Period will be determined using the following formula, as long as the difference between the estimated price based on the formula and the observed price during the marketing of Crude Oil based on Market Rules in Period is less or equal than fifty per cent (50%) of the observed price: × ∑12 ,− − ∑12 ,− , = =0 =1 Where: , = Contractual Price of Crude Oil in Period . = Observed Price in marketing of Crude Oil based on Market Rules in Period . =0 ∑12 ,− =Sum of Volume of Production of Crude Oil registered at Measurement Point in Periods , − 1 and if applicable, − 2. =1 ∑12 ,−=Sum of Contractual Value of Crude Oil in Period − 1, and if applicable, − 2. ,= Volume of production of Crude Oil registered at the Measurement Point in Period . In case that the difference between the price estimated by the formula and the observed price during the Crude Oil marketing based on Market Rules in the Period is greater than fifty percent (50%) of the observed price, the Contractual Price of Crude Oil shall be determined as follows:
i. If the price estimated by the formula is greater than the observed price, the Contractual Price shall be: , = × 1.5
ii. If the price estimated by the formula is less than the observed price, the Contractual Price shall be: , = × 0.5 Any variation in the Contractual Value of Crude Oil produced during the preceding Period or the two immediately preceding Periods, which persists considering the determination of the Contractual Price in accordance with this subparagraph (d) and the price observed under Market Rules, may be settled within three (3) following Periods through the adjustments determined by the Ministry of Finance, as part of its verifications functions, in accordance with subsection 8.4 of this Annex 3.
(e) In order for the price resulting from the marketing carried out by the Contractor to be considered in the determination of the Contractual Price of Crude Oil, the Contractor must have indicated prior to the closing of the Period the relevant characteristics of the marketing carried out, including the aspects to determine the applicable price under Market Rules. Notwithstanding, the Contractor shall report the total revenues, the volume of Crude Oil and the average weighted price it obtains as a result of the marketing of the Crude Oil allocated to it as Considerations.
1.5 The Contractual Price of the Condensates will be determined per Barrel based on the following:
(a) In case that during the Period the Contractor markets under Market Rules at least fifty percent (50%) of the volume of Condensates delivered to it in the Period or there is a commitment for such marketing (including long term sale contracts under which the price is determined by Market Rules), the Contractual Price of Condensates in the Period in which the marketing is reported shall be equal to the weighted average observed sale price for the volume in each case that the Contractor has marketed or committed to market. In case that any volume that the Contractor sells or delivers to an Affiliate or a related party is in turn marketed to a third party without any intermediate treatment or processing, the sale price and volume corresponding to such Affiliate or related party transaction may be considered in the calculation of the Contractual Price of Condensates in the Period.
(b) In case that during the Period the Contractor does not market under Market Rules at least fifty per cent (50%) of the Condensates volume delivered to it in the Period, but the Marketer has registered marketing of the Condensates corresponding to the Contract Area based on Market Rules, the Contractual Price of Condensates shall be equal to the weighted average price for the corresponding volume, reported by the Marketer.
(c) If at the end of the Period the Contractor has not registered marketing under Market Rules of at least fifty percent (50%) of the volume of Condensates delivered to the Contractor during the Period, the Contractual Price shall be calculated considering the average price for Xxxxx xxxxxx crude published in Period t by an international company specialized in the publishing of reference information on prices, according to the following:
i. If the Contractor marketed less than fifty percent (50%) of the volume of Condensates delivered to it in the Period, or if marketing was carried out by the Contractor with Related Parties, the Contractual Price of the Condensates will be the average of the prices calculated using the formula at the date of each marketing transaction, using the crude marker price at such date, weighted based on the volume involved in each transaction carried out in the Period.
ii. If there was no marketing because the volume of Condensates produced in the period and registered at the Measurement Point was kept in storage under the ownership of the Contractor or the Marketer, the Contractual Price of the Condensates will be calculated using the corresponding formula, considering the simple average of the marker price during the Period. , = 6.282 + 0.905, , = Contractual Price of Condensates in Period t. , = Price of Xxxxx Xxxxx [ICE] in Period t. The formula to determine the Contractual Price may be updated in this Contract to reflect structural adjustments in the Hydrocarbons market, based on information published by the Ministry of Finance in the annual report referenced to in article 5 of the Hydrocarbon Revenues Law. In the event prices for the Xxxxx xxxxxx crude are no longer published, the Ministry of Finance shall establish a new formula considering another marker or markers that have trading liquidity and reflect market conditions.
(d) In the case that the Contractual Price of Condensates in the immediately preceding Period or in the two Immediately Preceding Periods was determined using the formula established in subparagraph (c) of this subsection, and that during the relevant Period there is marketing of Condensates by the Contractor or the Marketer in accordance with subparagraphs (a) and (b) of this subsection, the Contractual Price of Condensates in the Period will be determined using the following formula, as long as the difference between the estimated price based on the formula and the observed price during the marketing of Condensates based on Market Rules in Period is less or equal than fifty per cent (50%) of the observed price: × ∑12 ,− − ∑12 ,− , = =0 =1 , = Contractual Price of Condensates in Period . = Observed Price in marketing of Condensates based on Market Rules in Period . =0 ∑12 ,− =Sum of Volume of Production of Condensates registered at Measurement Point in Periods , − 1, and if applicable, − 2. =1 ∑12 ,−=Sum of Contractual Value of Condensates in Period − 1, and if applicable, − 2. ,= Volume of production of Condensates registered at the Measurement Point in Period . In case that the difference between the price estimated by the formula and the observed price during the Condensates marketing based on Market Rules in the Period is greater than fifty percent (50%) of the observed price, the Contractual Price of Condensates shall be determined as follows:
i. If the price estimated by the formula is greater than the observed price, the Contractual Price shall be: , = × 1.5
ii. If the price estimated by the formula is less than the observed price, the Contractual Price shall be: , = × 0.5 Any variation in the Contractual Value of Condensates produced during the preceding Period or the two immediately preceding Periods, which persists considering the determination of the Contractual Price in accordance with this subparagraph (d) and the price observed under Market Rules, may be settled within the three (3) following Periods through the adjustments determined by the Ministry of Finance, as part of its verifications functions, in accordance with subsection 8.4 of this Annex 3.
(e) In order for the price resulting from the marketing carried out by the Contractor to be considered in the determination of the Contractual Price of the Condensates, the Contractor must have indicated prior to the close of the Period the relevant characteristics of the marketing carried out, including the aspects to determine the applicable price based on Market Rules. Independently of the foregoing, the Contractor shall report the total revenues, the volume of Condensates and the average weighted price it obtains as a result of the marketing of the Condensates allocated to it as Consideration.
Appears in 1 contract
Samples: Contract for the Extraction of Hydrocarbons Under Production Sharing Modality
Contractual Price. 1.1 The Contractual Price for each type of Hydrocarbon will be determined based on the provisions of the Hydrocarbon Revenues Law, in accordance with the procedure established in this Annex 3.
1.2 Each Period, the The Considerations indicated in Articles 16.2 paragraphs (b) and (c), and 16.3 paragraphs (a) and (b), will be calculated based on the Contractual Price of each type of Hydrocarbon, that shall be determined based on the criteria established in this Annex 3.
1.3 For purposes of this Annex 3, t shall mean the sub index corresponding to the Period. In case the Petroleum Activities are conducted during a Period which does not encompass a complete Month, the Period period shall be the number of Days during which this Contract was actually in effect.
1.4 The Contractual Price of Crude Oil per Barrel will be determined as follows:
(a) In case that during the Period the Contractor markets under Market Rules at least fifty percent (50%) of the Crude Oil volume delivered to it during in the Period or there is a commitment for such marketing (including long term sale contracts under which the price is determined by Market Rules), the Contractual Price of Crude Oil for in the Period in which the marketing is registered shall be equal to the weighted average observed sale price weighted by for the corresponding volume, volume in each case that the Contractor has marketed or committed to market. In the case of that any volume that the Contractor sells or delivers to an Affiliate or a related party, which party is in turn marketed to a third party without any intermediate treatment or processing, the sales sale price and volume corresponding to such Affiliate or related party transaction with a third party, may be considered in the calculation of the Contractual Price of Crude Oil during in the Period.
(b) In case that, that during the Period, Period the Contractor does not market under Market Rules at least fifty per cent (50%) of the Crude Oil volume delivered to it in the Period, but the Marketer has registered marketing of the Crude Oil corresponding to the Contract Area based on Market Rules, the Contractual Price of Crude Oil shall be equal to the weighted average price, weighted by price for the corresponding volume, reported by the Marketer. [illegible signatures].
(c) If at the end of the corresponding Period the Contractor has not registered marketing under Market Rules, Rules of at least fifty percent (50%) of the Crude Oil volume delivered to him the Contractor during the Period, or by the Marketer, the Contractual Price of Crude Oil shall be calculated based on the corresponding following formula as a function of the API grade gravity degrees and sulfur content corresponding to the Crude Oil extracted within in the Contract Area during in the Period. The foregoing considering the prices for Light Louisiana Sweet (LLS) and Xxxxx xxxxxx crudes, crudes published during in the Period by an international company specialized in the publishing of reference information on prices, according to the following:
i. If the Contractor marketed less than fifty percent (50%) of the Crude Oil volume delivered to it in the Period, or if marketing was carried out by the Contractor or the Marketer with Related Parties, the Contractual Price of the Crude Oil will be the average of the prices calculated using the corresponding formula at the date of each marketing transaction, using the marker prices at such date, weighted based on the volume involved in each transaction carried out in the Period.
ii. If there was no marketing because the volume of Crude Oil produced in the period and registered at the Measurement Point was kept in storage under the ownership of the Contractor or the Marketer, the Contractual Price of Crude Oil will be calculated using the corresponding formula, considering the simple average of the marker prices during the Period. The referenced formulas to calculate the Contractual Price of the Crude Oil are: API Grade of Crude Oil extracted in the Contract Area Applicable formula to calculate the Contractual Price of Crude Oil 21.0° < ≤ 31.1° , = 0.198 ∙ LLSt +0.814 ∙ Xxxxxx – 2.522 ∙ S 31.1o < API ≤ 39.0o , = 0.167 ∙ LLSt +0.840 ∙ Xxxxxx – 1.814 ∙ S 39.0o < API , = 0.0800 ∙ LLSt +0.920 ∙ Xxxxxx Where: , = Contractual Price of Crude Oil in Period t. = Adjustment parameter for quality, using weighted average API Gravity Degrees of Crude Oil produced in the Contract Area. LLS t = Average market price of Louisiana Light Sweet Crude (LLS) in Period x. Xxxxx t = Average market price of Xxxxx Xxxxx [ICE] in Period t. = Adjustment parameter for quality, using the value of the weighted average sulfur content of Crude Oil produced in the Contract Area, using two decimal points (for example, 3.00 will be used for 3%). The formulas to calculate the Contractual Price may be updated in this Contract to reflect the structural adjustments in the Hydrocarbons market, based on the information that the Ministry of Finance publishes in the annual report referenced in article 5 of the Hydrocarbon Revenues Law. In case that prices for LLS and Xxxxx xxxxxx crudes are no longer published, the Ministry of Finance shall establish a new formula taking into account other marker crudes that have trading liquidity and reflect market conditions. In case a Crude Oil in the market has the same quality characteristics (same API degrees and sulfur content) than that of the Crude Oil produced in the Contract Area during the corresponding Period, the Contractual Price of Crude Oil will be the one according to subparagraph (c), and will be calculated considering the market price that is Free On Board (FOB), instead of estimated value using the corresponding formula. Regarding the previous paragraph, the Contractor must present the documents with the verifiable information, published during the Period by an international company specialized in publishing reference information on prices, which proofs that the proposed Crude Oil has the same API degrees and sulfur content than that of the Crude Oil produced in the Contract Area, according to the measurements carried out by CNH during the Period.
(d) In case that the Contractual Price of Crude Oil in the immediately preceding Period or in the two immediately preceding Periods was determined using the formulas established in subparagraph (c) of this subsection, and that during the Period there is marketing of Crude Oil by the Contractor or the Marketer in accordance with subparagraphs (a) and (b) of this subsection, the Contractual Price of Crude Oil in the Period will be determined using the following formula, as long as the difference between the estimated price based on the formula and the observed price during the marketing of Crude Oil based on Market Rules in Period is less or equal than fifty per cent (50%) of the observed price: × ∑12 ,− − ∑12 ,− , = =0 =1 , = Contractual Price of Crude Oil in Period . = Observed Price in marketing of Crude Oil based on Market Rules in Period . =0 ∑12 ,− =Sum of Volume of Production of Crude Oil registered at Measurement Point in Periods , − 1 and if applicable, − 2. =1 ∑12 ,−=Sum of Contractual Value of Crude Oil in Period − 1, and if applicable, − 2. ,= Volume of production of Crude Oil registered at the Measurement Point in Period . In case that the difference between the price estimated by the formula and the observed price during the Crude Oil marketing based on Market Rules in the Period is greater than fifty percent (50%) of the observed price, the Contractual Price of Crude Oil shall be determined as follows:
i. If the price estimated by the formula is greater than the observed price, the Contractual Price shall be: , = × 1.5
ii. If the price estimated by the formula is less than the observed price, the Contractual Price shall be: , = × 0.5 Any variation in the Contractual Value of Crude Oil produced during the preceding Period or the two immediately preceding Periods, which persists considering the determination of the Contractual Price in accordance with this subparagraph (d) and the price observed under Market Rules, may be settled within three (3) following Periods through the adjustments determined by the Ministry of Finance, as part of its verifications functions, in accordance with subsection 8.4 of this Annex 3.
(e) In order for the price resulting from the marketing carried out by the Contractor to be considered in the determination of the Contractual Price of Crude Oil, the Contractor must have indicated prior to the closing of the Period the relevant characteristics of the marketing carried out, including the aspects to determine the applicable price under Market Rules. Notwithstanding, the Contractor shall report the total revenues, the volume of Crude Oil and the average weighted price it obtains as a result of the marketing of the Crude Oil allocated to it as Considerations.
1.5 The Contractual Price of the Condensates will be determined per Barrel based on the following:
(a) In case that during the Period the Contractor markets under Market Rules at least fifty percent (50%) of the volume of Condensates delivered to it in the Period or there is a commitment for such marketing (including long term sale contracts under which the price is determined by Market Rules), the Contractual Price of Condensates in the Period in which the marketing is reported shall be equal to the weighted average observed sale price for the volume in each case that the Contractor has marketed or committed to market. In case that any volume that the Contractor sells or delivers to an Affiliate or a related party is in turn marketed to a third party without any intermediate treatment or processing, the sale price and volume corresponding to such Affiliate or related party transaction may be considered in the calculation of the Contractual Price of Condensates in the Period.
(b) In case that during the Period the Contractor does not market under Market Rules at least fifty per cent (50%) of the Condensates volume delivered to it in the Period, but the Marketer has registered marketing of the Condensates corresponding to the Contract Area based on Market Rules, the Contractual Price of Condensates shall be equal to the weighted average price for the corresponding volume, reported by the Marketer.
(c) If at the end of the Period the Contractor has not registered marketing under Market Rules of at least fifty percent (50%) of the volume of Condensates delivered to the Contractor during the Period, the Contractual Price shall be calculated considering the average price for Xxxxx xxxxxx crude published in Period t by an international company specialized in the publishing of reference information on prices, according to the following:
i. If the Contractor marketed less than fifty percent (50%) of the volume of Condensates delivered to it in the Period, or if marketing was carried out by the Contractor with Related Parties, the Contractual Price of the Condensates will be the average of the prices calculated using the formula at the date of each marketing transaction, using the crude marker price at such date, weighted based on the volume involved in each transaction carried out in the Period.
ii. If there was no marketing because the volume of Condensates produced in the period and registered at the Measurement Point was kept in storage under the ownership of the Contractor or the Marketer, the Contractual Price of the Condensates will be calculated using the corresponding formula, considering the simple average of the marker price during the Period. Where: , = Contractual Price of Condensates in Period t. , = Price of Xxxxx Xxxxx [ICE] in Period t. The formula to determine the Contractual Price may be updated in this Contract to reflect structural adjustments in the Hydrocarbons market, based on information published by the Ministry of Finance in the annual report referenced to in article 5 of the Hydrocarbon Revenues Law. In the event prices for the Xxxxx xxxxxx crude are no longer published, the Ministry of Finance shall establish a new formula considering another marker or markers that have trading liquidity and reflect market conditions.
(d) In the event that the Contractual Price of Condensates in the immediately preceding Period or in the two Immediately Preceding Periods was determined using the formula established in subparagraph (c) of this subsection, and that during the relevant Period there is marketing of Condensates by the Contractor or the Marketer in accordance with subparagraphs (a) and (b) of this subsection, the Contractual Price of Condensates in the Period will be determined using the following formula, as long as the difference between the estimated price based on the formula and the observed price during the marketing of Condensates based on Market Rules in Period is less or equal than fifty per cent (50%) of the observed price: × ∑12 ,− − ∑12 ,− , = =0 =1 , = Contractual Price of Condensates in Period . = Observed Price in marketing of Condensates based on Market Rules in Period . =0 ∑12 ,− =Sum of Volume of Production of Condensates registered at Measurement Point in Periods , − 1, and if applicable, − 2. =1 ∑12 ,−=Sum of Contractual Value of Condensates in Period − 1, and if applicable, − 2. ,= Volume of production of Condensates registered at the Measurement Point in Period . In case that the difference between the price estimated by the formula and the observed price during the Condensates marketing based on Market Rules in the Period is greater than fifty percent (50%) of the observed price, the Contractual Price of Condensates shall be determined as follows:
i. If the price estimated by the formula is greater than the observed price, the Contractual Price shall be: , = × 1.5
ii. If the price estimated by the formula is less than the observed price, the Contractual Price shall be: , = × 0.5 Any variation in the Contractual Value of Condensates produced during the preceding Period or the two immediately preceding Periods, which persists considering the determination of the Contractual Price in accordance with this subparagraph (d) and the price observed under Market Rules, may be settled within the three (3) following Periods through the adjustments determined by the Ministry of Finance, as part of its verifications functions, in accordance with subsection 8.4 of this Annex 3.
(e) In order for the price resulting from the marketing carried out by the Contractor to be considered in the determination of the Contractual Price of the Condensates, the Contractor must have indicated prior to the close of the Period the relevant characteristics of the marketing carried out, including the aspects to determine the applicable price based on Market Rules. Independently of the foregoing, the Contractor shall report the total revenues, the volume of Condensates and the average weighted price it obtains as a result of the marketing of the Condensates allocated to it as Consideration.
Appears in 1 contract
Samples: Contract for the Exploration and Extraction of Hydrocarbons
Contractual Price. 1.1 The Contractual Price for each type of Hydrocarbon will be determined based on the provisions of the Hydrocarbon Revenues Law, in accordance with the procedure established in this Annex 3.
1.2 Each Period, the The Considerations indicated in Articles 16.2 15.2 paragraphs (b) and (c), and 16.3 15.3 paragraphs (a) and (b), will be calculated based on the Contractual Price of each type of Hydrocarbon, that shall be determined based on the criteria established in this Annex 3.
1.3 For purposes of this Annex 3, t shall mean the sub index corresponding to the Period. In case the Petroleum Activities are conducted during a Period which does not encompass a complete Month, the Period period shall be the number of Days during which this Contract was actually in effectforce.
1.4 The Contractual Price of Crude Oil per Barrel will be determined as follows:
(a) In case that during the Period the Contractor markets under Market Rules at least fifty percent (50%) of the Crude Oil volume delivered to it during in the Period or there is a commitment for such marketing (including long term sale contracts under which the price is determined by Market Rules), the Contractual Price of Crude Oil for in the Period in which the marketing is registered shall be equal to the weighted average observed sale price weighted by for the corresponding volume, volume in each case that the Contractor has marketed or committed to market. In the case of that any volume that the Contractor sells or delivers to an Affiliate or a related party, which party is in turn marketed to a third party without any intermediate treatment or processing, the sales sale price and volume corresponding to such Affiliate or related party transaction with a third party, may be considered in the calculation of the Contractual Price of Crude Oil during in the Period.
(b) In case that, that during the Period, Period the Contractor does not market under Market Rules at least fifty per cent (50%) of the Crude Oil volume delivered to it in the Period, but the Marketer has registered marketing of the Crude Oil corresponding to the Contract Area based on Market Rules, the Contractual Price of Crude Oil shall be equal to the weighted average price, weighted by price for the corresponding volume, reported by the Marketer. [illegible signatures].
(c) If at the end of the corresponding Period the Contractor has not registered marketing under Market Rules, Rules of at least fifty percent (50%) of the Crude Oil volume delivered to him the Contractor during the Period, or by the Marketer, the Contractual Price of Crude Oil shall be calculated based on the corresponding following formula as a function of the API grade gravity degrees and sulfur content corresponding to the Crude Oil extracted within in the Contract Area during in the Period. The foregoing considering the prices for Light Louisiana Sweet (LLS) and Xxxxx xxxxxx crudes, crudes published during in the Period by an international company specialized in the publishing of reference information on prices, according to the following:
i. If the Contractor marketed less than fifty percent (50%) of the Crude Oil volume delivered to it in the Period, or if marketing was carried out by the Contractor or the Marketer with Related Parties, the Contractual Price of the Crude Oil will be the average of the prices calculated using the corresponding formula at the date of each marketing transaction, using the marker prices at such date, weighted based on the volume involved in each transaction carried out in the Period.
ii. If there was no marketing because the volume of Crude Oil produced in the period and registered at the Measurement Point was kept in storage under the ownership of the Contractor or the Marketer, the Contractual Price of Crude Oil will be calculated using the corresponding formula, considering the simple average of the marker prices during the Period. The referenced formulas to calculate the Contractual Price of the Crude Oil are: API Grade of Crude Oil extracted in the Contract Area Applicable formula to calculate the Contractual Price of Crude Oil ≤ 21.0° , = 0.481 ∙ + 0.508 ∙ − 3.678 ∙ 21.0° < ≤ 31.1° , = 0.198 ∙ LLSt +0.814 ∙ Xxxxxx – 2.522 ∙ S 31.1o < API ≤ 39.0o , = 0.167 ∙ LLSt +0.840 ∙ Xxxxxx – 1.814 ∙ S 39.0o < API , = 0.0800 ∙ LLSt +0.920 ∙ Xxxxxx , = Contractual Price of Crude Oil in Period t. = Adjustment parameter for quality, using weighted average API Gravity Degrees of Crude Oil produced in the Contract Area. LLS t = Average market price of Louisiana Light Sweet Crude (LLS) in Period x. Xxxxx t = Average market price of Xxxxx Xxxxx [ICE] in Period t. = Adjustment parameter for quality, using the value of the weighted average sulfur content of Crude Oil produced in the Contract Area, using two decimal points (for example, 3.00 will be used for 3%). The formulas to calculate the Contractual Price may be updated in this Contract to reflect the structural adjustments in the Hydrocarbons market, based on the information that the Ministry of Finance publishes in the annual report referenced in article 5 of the Hydrocarbon Revenues Law. In case that prices for LLS and Xxxxx xxxxxx crudes are no longer published, the Ministry of Finance shall establish a new formula taking into account other marker crudes that have trading liquidity and reflect market conditions. In case a Crude Oil in the market has the same quality characteristics (same API degrees and sulfur content) than that of the Crude Oil produced in the Contract Area during the corresponding Period, the Contractual Price of Crude Oil will be the one according to subparagraph (c), and will be calculated considering the market price that is Free On Board (FOB), instead of estimated value using the corresponding formula. Regarding the previous paragraph, the Contractor must present the documents with the verifiable information, published during the Period by an international company specialized in publishing reference information on prices, which proofs that the proposed Crude Oil has the same API degrees and sulfur content than that of the Crude Oil produced in the Contract Area, according to the measurements carried out by CNH during the Period.
(d) In case that the Contractual Price of Crude Oil in the immediately preceding Period or in the two immediately preceding Periods was determined using the formulas established in subparagraph (c) of this subsection, and that during the Period there is marketing of Crude Oil by the Contractor or the Marketer in accordance with subparagraphs (a) and (b) of this subsection, the Contractual Price of Crude Oil in the Period will be determined using the following formula, as long as the difference between the estimated price based on the formula and the observed price during the marketing of Crude Oil based on Market Rules in Period is less or equal than fifty per cent (50%) of the observed price: × ∑12 ,− − ∑12 ,− , = =0 =1 Where: , = Contractual Price of Crude Oil in Period . = Observed Price in marketing of Crude Oil based on Market Rules in Period . =0 ∑12 ,− =Sum of Volume of Production of Crude Oil registered at Measurement Point in Periods , − 1 and if applicable, − 2. =1 ∑12 ,−=Sum of Contractual Value of Crude Oil in Period − 1, and if applicable, − 2. ,= Volume of production of Crude Oil registered at the Measurement Point in Period . In case that the difference between the price estimated by the formula and the observed price during the Crude Oil marketing based on Market Rules in the Period is greater than fifty percent (50%) of the observed price, the Contractual Price of Crude Oil shall be determined as follows:
i. If the price estimated by the formula is greater than the observed price, the Contractual Price shall be: , = × 1.5
ii. If the price estimated by the formula is less than the observed price, the Contractual Price shall be: , = × 0.5 Any variation in the Contractual Value of Crude Oil produced during the preceding Period or the two immediately preceding Periods, which persists considering the determination of the Contractual Price in accordance with this subparagraph (d) and the price observed under Market Rules, may be settled within three (3) following Periods through the adjustments determined by the Ministry of Finance, as part of its verifications functions, in accordance with subsection 8.4 of this Annex 3.
(e) In order for the price resulting from the marketing carried out by the Contractor to be considered in the determination of the Contractual Price of Crude Oil, the Contractor must have indicated prior to the closing of the Period the relevant characteristics of the marketing carried out, including the aspects to determine the applicable price under Market Rules. Notwithstanding, the Contractor shall report the total revenues, the volume of Crude Oil and the average weighted price it obtains as a result of the marketing of the Crude Oil allocated to it as Considerations.
1.5 The Contractual Price of the Condensates will be determined per Barrel based on the following:
(a) In case that during the Period the Contractor markets under Market Rules at least fifty percent (50%) of the volume of Condensates delivered to it in the Period or there is a commitment for such marketing (including long term sale contracts under which the price is determined by Market Rules), the Contractual Price of Condensates in the Period in which the marketing is reported shall be equal to the weighted average observed sale price for the volume in each case that the Contractor has marketed or committed to market. In case that any volume that the Contractor sells or delivers to an Affiliate or a related party is in turn marketed to a third party without any intermediate treatment or processing, the sale price and volume corresponding to such Affiliate or related party transaction may be considered in the calculation of the Contractual Price of Condensates in the Period.
(b) In case that during the Period the Contractor does not market under Market Rules at least fifty per cent (50%) of the Condensates volume delivered to it in the Period, but the Marketer has registered marketing of the Condensates corresponding to the Contract Area based on Market Rules, the Contractual Price of Condensates shall be equal to the weighted average price for the corresponding volume, reported by the Marketer.
(c) If at the end of the Period the Contractor has not registered marketing under Market Rules of at least fifty percent (50%) of the volume of Condensates delivered to the Contractor during the Period, the Contractual Price shall be calculated considering the average price for Xxxxx xxxxxx crude published in Period t by an international company specialized in the publishing of reference information on prices, according to the following:
i. If the Contractor marketed less than fifty percent (50%) of the volume of Condensates delivered to it in the Period, or if marketing was carried out by the Contractor with Related Parties, the Contractual Price of the Condensates will be the average of the prices calculated using the formula at the date of each marketing transaction, using the crude marker price at such date, weighted based on the volume involved in each transaction carried out in the Period.
ii. If there was no marketing because the volume of Condensates produced in the period and registered at the Measurement Point was kept in storage under the ownership of the Contractor or the Marketer, the Contractual Price of the Condensates will be calculated using the corresponding formula, considering the simple average of the marker price during the Period. , = 6.282 + 0.905, , = Contractual Price of Condensates in Period t. , = Price of Xxxxx Xxxxx [ICE] in Period t. The formula to determine the Contractual Price may be updated in this Contract to reflect structural adjustments in the Hydrocarbons market, based on information published by the Ministry of Finance in the annual report referenced to in article 5 of the Hydrocarbon Revenues Law. In case prices for the Xxxxx xxxxxx crude are no longer published, the Ministry of Finance shall establish a new formula considering another marker or markers that have trading liquidity and reflect market conditions.
(d) In case that the Contractual Price of Condensates in the immediately preceding Period or in the two Immediately Preceding Periods was determined using the formula established in subparagraph (c) of this subsection, and that during the relevant Period there is marketing of Condensates by the Contractor or the Marketer in accordance with subparagraphs (a) and (b) of this subsection, the Contractual Price of Condensates in the Period will be determined using the following formula, as long as the difference between the estimated price based on the formula and the observed price during the marketing of Condensates based on Market Rules in Period is less or equal than fifty per cent (50%) of the observed price: × ∑12 ,− − ∑12 ,− , = =0 =1 , = Contractual Price of Condensates in Period . = Observed Price in marketing of Condensates based on Market Rules in Period . =0 ∑12 ,− =Sum of Volume of Production of Condensates registered at Measurement Point in Periods , − 1, and if applicable, − 2. =1 ∑12 ,−=Sum of Contractual Value of Condensates in Period − 1, and if applicable, − 2. ,= Volume of production of Condensates registered at the Measurement Point in Period . In case that the difference between the price estimated by the formula and the observed price during the Condensates marketing based on Market Rules in the Period is greater than fifty percent (50%) of the observed price, the Contractual Price of Condensates shall be determined as follows:
i. If the price estimated by the formula is greater than the observed price, the Contractual Price shall be: , = × 1.5
ii. If the price estimated by the formula is less than the observed price, the Contractual Price shall be: , = × 0.5 Any variation in the Contractual Value of Condensates produced during the preceding Period or the two immediately preceding Periods, which persists considering the determination of the Contractual Price in accordance with this subparagraph (d) and the price observed under Market Rules, may be settled within the three (3) following Periods through the adjustments determined by the Ministry of Finance, as part of its verifications functions, in accordance with subsection 8.4 of this Annex 3.
(e) In order for the price resulting from the marketing carried out by the Contractor to be considered in the determination of the Contractual Price of the Condensates, the Contractor must have indicated prior to the close of the Period the relevant characteristics of the marketing carried out, including the aspects to determine the applicable price based on Market Rules. Independently of the foregoing, the Contractor shall report the total revenues, the volume of Condensates and the average weighted price it obtains as a result of the marketing of the Condensates allocated to it as Consideration.
Appears in 1 contract
Samples: Contract for the Extraction of Hydrocarbons Under Production Sharing Modality
