FIRST TRANCHE PETROLEUM Clause Samples
The 'First Tranche Petroleum' clause defines the initial portion of petroleum production that is allocated to the host government or national oil company before any other distributions are made. In practice, this means that a specified volume or percentage of oil or gas produced from a project is set aside as the government's share, often before costs or profits are calculated for the contractor. This clause ensures that the host country receives a guaranteed minimum benefit from resource extraction, addressing the need for early and predictable government revenue from petroleum projects.
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FIRST TRANCHE PETROLEUM. 6.3.1 Notwithstanding anything to the contrary elsewhere contained in this Contract, the Parties shall be entitled to first take and receive each Year a quantity of Petroleum of fifteen percent (15%) of the Petroleum production of each such Year, called the "First Tranche Petroleum" before any deduction for recovery, Operating Costs and handling of production as provided under this Section VI.
6.3.2 Such First Tranche Petroleum for each Calendar Year is further shared for Crude Oil between PERTAMINA and CONTRACTOR in accordance with the sharing splits provided under clause 6.1.3.
6.3.3 For Natural Gas, such First Tranche Petroleum is shared between PERTAMINA and CONTRACTOR in accordance with the sharing split provided under clause 6.2.2.
FIRST TRANCHE PETROLEUM. 6.3.1. Notwithstanding anything to the contrary elsewhere contained in this Contract, the Parties shall be entitled to first take and receive each Year a quantity of Petroleum of twenty percent (20%) of CONTRACTOR's participating interest share of the Petroleum Production for each such Year, called the "First Tranche Petroleum ", before any deduction for investment credit and recovery of Operating Costs and handling of production as provided under this Section VI.
FIRST TRANCHE PETROLEUM. 6.3.1 Notwithstanding anything to the contrary elsewhere contained in this Contract, the Parties shall be entitled to first take and receive each Year a quantity of Petroleum of Twenty Percent (20%) of the Petroleum production for each such Year, called the “First Tranche Petroleum”, before rely deduction for recovery of Operating Costs and handling of production as provided herein under this Section VI.
6.3.2 Such First Tranche Petroleum for each Calendar Year shall further be shared for Crude Oil between PERTAMINA and CONTRACTOR in accordance with the sharing splits provided under clause 6.1.3, by apportioning it as applicable, to the respective production segments as herein above defined, at the same ratios as the production from each such segment over the total production of the Year.
6.3.3 For Natural Gas, such First Tranche Petroleum is shared between PERTAMINA and CONTRACTOR in accordance with the sharing split provided under clause 6.2.2.