Common use of LIFTING, MARKETING AND DOMESTIC SUPPLY OBLIGATION Clause in Contracts

LIFTING, MARKETING AND DOMESTIC SUPPLY OBLIGATION. ‌ (a) The quantity of production to which TPDC is entitled pursuant to Article 11 herein shall be delivered to TPDC or its nominee at the Delivery Point, at which title in production will pass to TPDC or its nominee subject to the terms of the agreement referred to in sub-article (b) of this Article. TPDC shall be responsible for costs associated with its lifting entitlement after the Delivery Point. The Contractor, and in the event of Joint Operations, TPDC shall be responsible for all costs prior to the Delivery Point. (b) Within six months after the Minister’s approval of a development plan, the Contractor shall propose to TPDC an offtake procedure to govern the method whereby the parties will nominate and lift their respective shares of Crude Oil. The details of such procedure shall be discussed and agreed upon between TPDC and the Contractor for the Minister’s approval. The major principles of such procedure shall include the following: (i) lifting by the parties shall be carried out so as to avoid interference with Petroleum Operations; (ii) lifting rights and schedules will be subject to operational tolerances and constraints so that each party shall be entitled to lift full cargo loads; (iii) within reasonable limits and subject to future correction of imbalances, each party may lift more or less than its lifting entitlement so as to allow the lifting of full cargo loads. (iv) In general, priority for lifting shall be given to the party having the greatest unlifted lifting entitlement. (c) The Contractor shall, if requested by the Minister with at least three months advance notice, market abroad on competitive terms all or part of TPDC’s lifting entitlement subject to payment by TPDC of direct costs normally borne by a seller in such transactions as may be agreed by TPDC but excluding any commission or marketing fee in respect of such service. (d) TPDC shall use its share of production from all Crude Oil production in Tanzania to meet the requirements of the domestic market of Tanzania. If there is domestic demand in excess of TPDC’s total entitlement then the Contractor may be required to sell Crude Oil in Tanzania on a pro rata basis with other producers in Tanzania (except TPDC) according to the quantity of Crude Oil of each producer. TPDC shall give the Contractor at least three months notice in advance of said requirements and the term of the supply will be on an annual basis. The volume of Crude Oil which TPDC may require the Contractor to sell to meet the requirements of the domestic market shall not exceed the share of Profit Oil. (e) Crude Oil sold pursuant to sub-article (d) of this Article shall be paid for in foreign exchange at a price determined in accordance with Article 12 of this Agreement.

LIFTING, MARKETING AND DOMESTIC SUPPLY OBLIGATION. ‌ (a) The quantity of production to which TPDC is entitled pursuant to this Article 11 XI herein shall be delivered to TPDC or its nominee at the Delivery Point, at which point title in production will pass to TPDC or its nominee subject to the terms of the agreement referred to in sub-article (bSection 11.6(b) of this Articlebelow. TPDC shall be responsible for costs associated with its lifting entitlement after the Delivery Point. The ContractorPanAfrican Tanzania, and in the event of Joint Operations, Operations TPDC and PanAfrican Tanzania jointly shall be responsible for all costs prior to the Delivery Point. (b) Within six months after the MinisterMinistry’s approval of a development plan, the Contractor PanAfrican Tanzania shall propose to TPDC an offtake procedure to govern the method whereby the parties will nominate and lift their respective shares of Crude Oil. The details of such procedure shall be discussed and agreed upon between TPDC and the Contractor PanAfrican Tanzania for the MinisterMinistry’s approval. The major principles of such procedure shall include the following: (i) lifting Lifting by the parties shall be carried out so as to avoid interference with Petroleum Operations;. (ii) lifting Lifting rights and schedules will be subject to operational tolerances and constraints so that each party shall be entitled to lift full cargo loads;. (iii) within Within reasonable limits and subject to future correction of imbalances, each party may lift more or less than its lifting entitlement so as to allow the lifting of full cargo loads. (iv) In general, priority for lifting shall be given to the party having the greatest unlifted lifting entitlement. (c) The Contractor PanAfrican Tanzania shall, if requested by the Minister Ministry with at least three months advance notice, market abroad on competitive terms all or part of TPDC’s ’S lifting entitlement subject to payment by TPDC of direct costs normally borne by a seller in such transactions as may be agreed by TPDC but excluding any additional commission or marketing fee imposed by PanAfrican Tanzania in respect of such service. (d) TPDC shall use its share of production from all Crude Oil production in Tanzania to meet the requirements of the domestic market of Tanzania. If there is domestic demand in excess of TPDC’s total entitlement entitlement, then the Contractor PanAfrican Tanzania may be required to sell Crude Oil in Tanzania on a pro rata basis with other producers in Tanzania (except TPDC) according to the quantity of Crude Oil of each producer. TPDC shall give the Contractor PanAfrican Tanzania at least three six months notice in advance of said requirements and the term of the supply will be on an annual basis. The volume of Crude Oil which TPDC may require the Contractor PanAfrican Tanzania to sell to meet the requirements of the domestic market shall not exceed the PanAfrican Tanzania’s share of Profit Oil. (e) Crude Oil sold pursuant to sub-article (dSection 11.6(d) of this Article above shall be paid for in foreign exchange U.S. Dollars at a price determined in accordance with Article 12 Section 11.5(a)(ii)(B)(y) of this Agreement.

LIFTING, MARKETING AND DOMESTIC SUPPLY OBLIGATION. ‌ (a) The quantity of production to which TPDC is entitled entitled, pursuant to Article 11 herein 12 herein, shall be delivered to TPDC or its nominee at the Delivery Point, at which title in production will pass to TPDC or its nominee subject to the terms of the agreement referred to in sub-article (b) of this Article. TPDC shall be responsible for costs associated with its lifting entitlement after the Delivery Point. The Where there is no Joint Operations the Contractor, and in shall be responsible for all costs prior to the Delivery Point. In the event of Joint Operations, Operations both the Contractor and TPDC shall be responsible for all costs prior to the Delivery Point. (b) Within six months after the Minister’s approval of a development planDevelopment Plan, the Contractor shall propose to TPDC an offtake off take procedure to govern the method whereby the parties will nominate and lift their respective shares of Crude Oil/Natural Gas. The details of such procedure shall be discussed and agreed upon between TPDC and the Contractor for the Minister’s approval. The major principles of such procedure shall include the following: (i) lifting by the parties shall be carried out so as to avoid interference with Petroleum Operations; (ii) lifting rights and schedules will be subject to operational operations tolerances and constraints so that each party shall be entitled to lift full cargo loads; (iii) within reasonable limits and subject to future correction of imbalances, each party may lift more or less than its lifting entitlement so as to allow the lifting of full cargo loads.; and (iv) In in general, priority for lifting shall be given to the party having the greatest unlifted lifting entitlement. (c) The Contractor shall, if requested by the Minister TPDC with at least three (3) months advance notice, market abroad on competitive terms all or part of TPDC’s lifting entitlement subject to payment by TPDC of direct costs normally borne by a seller in such transactions as may be agreed by TPDC but excluding any commission or marketing fee in respect of such service. (d) TPDC and the Contractor shall use its share of production from all Crude Oil production in Tanzania have the obligation to meet the requirements of satisfy the domestic market in Tanzania from their proportional share of Tanzaniaproduction. If there is The domestic demand in excess Natural Gas price shall be determined based on the strategic nature of TPDC’s total entitlement then the project to be undertaken by the Government. The volume of the Crude Oil/Natural Gas which TPDC and the Contractor may be required to sell Crude Oil in Tanzania supply to meet domestic market obligation shall be determined by the Parties by mutual agreement and shall be on a pro rata basis with other producers in Tanzania (except TPDC) according to the quantity United Republic of Crude Oil of each producerTanzania. TPDC shall give the Contractor at least three months one (1) month notice in advance of said requirements and the term of the supply will be on an annual basis. The volume of Crude Oil Oil/Natural Gas which TPDC may require the Contractor shall be required to sell to meet the requirements of the domestic market shall not exceed the TPDC and Contractor’s share of Profit Oil/Gas. (e) Crude Oil Oil/Natural Gas sold pursuant to sub-article (d) of this Article above shall be paid for in foreign exchange at or its equivalentat a price determined in accordance with Article 12 13 and 15 of this Agreement.

LIFTING, MARKETING AND DOMESTIC SUPPLY OBLIGATION. ‌ (a) The quantity of production to which TPDC ZPDC is entitled entitled, pursuant to Article 11 herein 12 herein, shall be delivered to TPDC ZPDC or its nominee at the Delivery Point, at which title in production will pass to TPDC ZPDC or its nominee subject to the terms of the agreement referred to in sub-article paragraph (b) of this Article. TPDC ZPDC shall be responsible for costs associated with its lifting entitlement after the Delivery Point. The Where there is no Joint Operations, the Contractor, and in shall be responsible for all costs prior to the Delivery Point. In the event of Joint Operations, TPDC Operations both the Contractor and ZPDC shall be responsible for all costs prior to the Delivery Point. (b) Within six (6) months after the Minister’s approval of a development planField Development Plan, the Contractor shall propose to TPDC ZPDC an offtake procedure to govern the method whereby the parties will nominate and lift their respective shares of Crude Oil/Natural Gas. The details of such procedure shall be discussed and agreed upon between TPDC ZPDC and the Contractor for the Minister’s approval. The major principles of such procedure shall include the following: (i) lifting by the parties shall be carried out so as to avoid interference with Petroleum Operations; (ii) lifting rights and schedules will be subject to operational operations tolerances and constraints so that each party shall be entitled to lift full cargo loads; (iii) within reasonable limits and subject to future correction of imbalances, each party may lift more or less than its lifting entitlement so as to allow the lifting of full cargo loads.; and (iv) In in general, priority for lifting shall be given to the party having the greatest unlifted lifting entitlement. (c) The Contractor shall, if requested by the Minister ZPDC with at least three (3) months advance notice, market abroad on competitive terms all or part of TPDCZPDC’s lifting entitlement subject to payment by TPDC ZPDC of direct costs normally borne by a seller in such transactions as may be agreed by TPDC ZPDC but excluding any commission or marketing fee in respect of such service. (d) TPDC ZPDC and the Contractor shall use its share of production from all Crude Oil production in Tanzania have the obligation to meet the requirements of satisfy the domestic market in Zanzibar from their proportional share of Tanzaniaproduction. If there is The domestic demand in excess Natural Gas price shall be determined based on the strategic nature of TPDC’s total entitlement then the project to be undertaken by the Government. The volume of the Crude Oil/Natural Gas which ZPDC and the Contractor may be required to sell Crude Oil in Tanzania supply to meet domestic market obligation shall be determined by the Parties by mutual agreement and shall be on a pro rata basis with other producers in Tanzania (except TPDC) according to the quantity of Crude Oil of each producerZanzibar. TPDC ZPDC shall give the Contractor at least three months one (1) month notice in advance of said requirements and the term of the supply will be on an annual basis. The volume of Crude Oil Oil/Natural Gas which TPDC may require the Contractor shall be required to sell to meet the requirements of the domestic market shall not exceed the ZPDC and Contractor’s share of Profit Oil/Gas. (e) Crude Oil or Natural Gas sold pursuant to sub-article paragraph (d) of this Article above shall be paid for in foreign exchange or its equivalent at a price determined in accordance with Article 12 13 and 15 of this Agreement.