Cost Recovery and Production Sharing. Subject to the terms and conditions of this Agreement, the Contractor shall bear and pay all contract costs incurred in carrying out petroleum operations and shall recover contract costs only from cost oil as herein provided. All recoverable contract costs incurred by the Contractor shall, subject to the terms and conditions of any agreement relating to Non-Associated gas made pursuant to Article 12, be recovered from the value, determined in accordance with Article 13, of a volume of crude oil (hereinafter referred to as "cost oil") produced and sold from the contract area and limited in any month to an amount which equals seventy-five percent (75%) of the total production from the contract area for such month excluding any crude oil used in petroleum operations or which is lost. "Recoverable contract costs" means such costs as the Contractor is permitted to recover, as from the date they have been incurred, pursuant to the provisions of Annex C. To the extent that in any month, recoverable contract costs exceed the value of cost oil determined in accordance with Article 13, the unrecovered amount shall be carried forward and, subject to the limitation stipulated in Article 11.2, shall be recoverable in the immediately succeeding month, and to the extent not then recovered, in the subsequent month or months. The balance of crude oil available in any month after recoverable contract costs have been satisfied to the extent aforesaid (hereinafter referred to as "profit oil") shall be shared between the Government and the Contractor for each field in the following proportions: Contractor fifty percent (50%) and Minister fifty percent (50%). The quantity of cost oil actually utilized in satisfying the recoverable contract costs may be allocated by the Contractor to production from any field or fields. Subject to the provision of Article 14, the profit oil shall be shared between the Government and Contractor on a monthly basis according to their respective entitlements as specified in Article 11.4. To the extent that the actual quantities and costs required to determine cost oil and profit oil for the month in question are not known, crude oil sharing shall be calculated on an interim basis each month taking the following factors into account - unrecovered recoverable contract cost; estimated current recoverable contract cost by reference to the agreed work programme and budget supplemented by any other relevant documents or information which are accepted by C...
Cost Recovery and Production Sharing. 10.1 For purposes of Cost Recovery and Production Sharing, ring fencing around each Contract Area shall apply. In the event that a Licensee has more than one Contract Area, the calculations shall be done on a contract by contract basis. There shall be no consolidation.
Cost Recovery and Production Sharing. 11.1 Subject to the terms and conditions of this Agreement, the Contractor shall bear and pay all Contract Costs incurred in carrying out Petroleum Operations and shall recover Contract Costs only from Cost Petroleum as herein provided.
Cost Recovery and Production Sharing. 13.1 Cost Recovery For the purposes of this Article 13, all Petroleum produced and saved in the Contract Area, after deduction of Petroleum used by Contractor in the conduct of Petroleum Operations and after further deduction of the Royalty provided for in Article 34, is defined as “Available Petroleum”. 13.2 Subject to the auditing provision set forth in Article 36, Contractor shall have the right to recover all Contract Expenses incurred in the carrying out of Petroleum Operations from a maximum of _____ percent (__%) of Available Petroleum. Such maximum ______ percent (__%) of Available Petroleum used for cost recovery by Contractor (“Cost Recovery”) shall be known in general as “Cost Recovery Petroleum” and sometimes as “Cost Recovery Oil” or “Cost Recovery Gas”, as the case may be. 13.3 Contract Expenses shall be recoverable by Contractor out of Cost Recovery Petroleum as of the Calendar Year in which they are incurred, or the Calendar Year in which the Date of Commencement of Commercial Production occurs, whichever is the later. 13.4 Contractor shall be entitled in each Calendar Quarter to take delivery of the whole of the Cost Recovery Petroleum or a portion thereof (as the case may be) which, when valued in accordance with the provision of Article 14, shall be equal to the cumulative Contract Expenses to be recovered by Contractor up to that Calendar Quarter. All Contract Expenses related to Crude Oil accumulations shall be recovered from Cost Recovery Oil, and the aforesaid deliveries shall be made accordingly. All Contract Expenses related to Natural Gas accumulations shall be recovered from Cost Recovery Gas. However, should Crude Oil or Natural Gas production be insufficient for the full recovery of Crude Oil or Natural Gas Contract Expenses respectively, either production may be used for the purpose of such full recovery.. 13.5 Valuation according to Article 14 of the Cost Recovery Petroleum to be allocated to the recovery of Contract Expenses, and the assessment of the relevant volume of such Cost Recovery Petroleum delivered to Contractor for this purpose, shall be made on a Calendar Quarter basis, in accordance with the provisions of paragraph 13.9 below. 13.6 Cost Recovery of allowable Contract Expenses will include the following, and will be effected according to the following order of priority: (a) Operating Expenses; (b) Exploration Expenditures; (c) Interest Charges on Development Expenditures; (d) Development Expenditures; (e) Product...
Cost Recovery and Production Sharing. 13.1 Subject to the provisions relating to participation, the Contractor shall assume and pay all the Petroleum Costs incurred during the execution of the Petroleum Operations, and it shall recover said costs according to the procedures defined in Accounting Appendix D. The costs directly attributable to the development and production of Non-Associated Gas shall be subject to a specific agreement in accordance with the provisions of the present Contract.
Cost Recovery and Production Sharing
