Common use of MEASUREMENT OF PETROLEUM Clause in Contracts

MEASUREMENT OF PETROLEUM. 13.1 Petroleum used for internal consumption, Petroleum Operations, flared, saved and sold from the Contract Area shall be measured for volume, weight and quality by methods and appliances as prescribed by the Government and in absence thereof as per the methods and by appliances generally accepted and customarily used in the Good International Petroleum Industry Practices (GIPIP). 13.2 The Government may, at all reasonable times, inspect and test the appliances used for measuring the volume and determining the quality of Petroleum, provided that any such inspection or testing shall be carried out in such a manner so as not to unduly interfere with Petroleum Operations and may at any time be at variance with Article 13.3(b). 13.3 The Contractor shall comply with the procedure prescribed by the Government for measurement of petroleum, on various aspects including but not limited to: a. the point or points at which Petroleum shall be measured which shall include: (i) measurement at the Well Head; and (ii) measurement at the identified Delivery Points, provided that the measurement at the Well Head shall only be for the purposes of information and record and shall be submitted to the Government on a Monthly basis; b. the frequency of inspections and testing of measurement appliances and relevant procedures relating thereto; c. the consequences of a determination of an error in measurement; d. reconciliation mechanism between Petroleum Produced and Saved and Petroleum sold; and e. methods to be employed for measurement of volume, weight and quality. 13.4 The Contractor shall undertake to measure the volume and quality of the Petroleum Produced and Saved from the Contract Area with the frequency and according to procedures prescribed by the Government pursuant to Article 13.3 and in absence thereof shall apply methods, appliances, procedures consistent with Good International Petroleum Industry Practices (GIPIP). The Contractor shall not make any alteration in the method or procedures prescribed for measurement or to any of the prescribed appliances used for that purpose without the written consent of the Government. 13.5 The Contractor shall give the Government timely notice of its intention to conduct measuring operations or any agreed alteration for such operations and the Government shall have the right to supervise, either directly or through authorized representatives, such operations. 13.6 The Contractor shall keep all the records of analysis and measurement of hydrocarbons calibrations and proving of measurement system and make available to Government or its authorized agency such records on request or at the end of every quarter. Records shall be kept for the currency of the contract period. 13.7 Notwithstanding anything contained hereinabove, the Government may modify, supplement or supplant the directions issued to the Contractor on the methodology of measurement, the equipment used for the measurement and the point of measurement of petroleum and the Contractor shall be bound by such directions.

MEASUREMENT OF PETROLEUM. 13.1 Petroleum used for internal consumption, Petroleum Operations, flared, saved and sold from the Contract Area shall be measured for volume, weight and quality by methods and appliances as prescribed by the Government and in absence thereof as per the methods and by appliances generally accepted and customarily used in the Good International Petroleum Industry Practices (GIPIP). 13.2 The Government may, at all reasonable times, inspect and test the appliances used for measuring the volume and determining the quality of Petroleum, provided that any such inspection or testing shall be carried out in such a manner so as not to unduly interfere with Petroleum Operations and may at any time be at variance with Article 13.3(b). 13.3 20.1 The Contractor shall comply with the procedure prescribed by the Government for measurement of petroleum, on various aspects including but not limited to: a. the point or points at which Petroleum shall be measured which shall include: (i) measurement at the Well Head; and (ii) measurement at the identified Delivery Points, provided that the measurement at the Well Head shall only be for the purposes of information and record and shall be submitted to the Government on a Monthly basis; b. the frequency of inspections and testing of measurement appliances and relevant procedures relating thereto; c. the consequences of a determination of an error in measurement; d. reconciliation mechanism between Petroleum Produced and Saved and Petroleum sold; and e. methods to be employed for measurement of volume, weight and quality. 13.4 The Contractor shall undertake to measure the volume and quality of Total Production for each Exploitation Area at the Petroleum Produced Delivery Point and Saved from the Contract Area as necessary for compliance with the frequency Article 20.2, using measurement appliances and according to procedures prescribed by the Government pursuant to Article 13.3 and in absence thereof shall apply methods, appliances, procedures consistent accordance with Good International Petroleum Industry Practices (GIPIP)Practice and the relevant development and production plan. Total Production measurement appliances shall be installed, maintained and operated by the Contractor. If the Contractor wishes to change said measurement appliances or procedures, the Contractor shall obtain prior written approval from the Authority. The Contractor shall not make any alteration in periodically calibrate the method or procedures prescribed measurement appliances and the period for measurement or to any calibration shall be agreed with the Authority. 20.2 The Parties recognize that the required measurements may occur on the seafloor and that the location of the prescribed appliances used for that purpose without devices may introduce practical limits with regard to periodic inspection. Subject to this limitation, the written consent of the Government. 13.5 The Contractor shall give the Government timely notice of its intention to conduct measuring operations or any agreed alteration for such operations and the Government Authority’s authorized representatives shall have the right to supervisebe present at and to observe Delivery Point Total Production measurement and to examine or inspect the measurement appliances or procedures used. The Authority shall have the right to authorize an internationally recognized inspection company to conduct such inspections and examinations. Inspections and examinations by or on behalf of the Authority shall not interfere in any material way with the Contractor’s Petroleum Operations or be conducted in such a manner as to introduce safety, either directly health or through authorized representativesenvironmental hazards. During inspections by the Authority, the Contractor shall provide transportation, food and housing at the relevant locations to the Authority representatives under the same conditions as it provides such operationstransportation, food and housing to its own personnel. Representatives of the Authority shall use the Contractor’s transportation to offshore facilities within the Contract Area to ensure the safety of the representatives of the Authority. 13.6 20.3 If a measuring error is discovered by either the Authority or the Contractor, the Contractor shall use its best efforts to determine the correct Total Production figures for the period during which there was a measuring error and the corrected figures shall be used. The Contractor shall keep all submit for the records Authority’s approval a report detailing the source and nature of analysis the measuring error and measurement the corrections to be applied. Where the appliances and procedures used have caused an overstatement or understatement of hydrocarbons calibrations and proving of measurement system and make available to Government or its authorized agency such records on request or at measured quantities, the end of every quarter. Records error shall be kept deemed to have existed since the date of the last calibration of the appliances, unless the contrary can be justified by the Party benefitting from such error. Retrospective adjustments to related payments and Petroleum Costs Account balances shall be made within thirty (30) days of the determination of the amount of the error. If there was an overpayment, it shall be adjusted as a credit against subsequent payments due under the relevant Article or Articles of this Contract. If there is an underpayment, it shall be adjusted by payment by the Contractor within twenty (20) days from such determination in the manner required for the currency of initial payment. If the contract period. 13.7 Notwithstanding anything contained hereinabove, the Government may modify, supplement or supplant the directions issued to the Contractor on the methodology of measurement, the equipment used for the measurement and the point of measurement of petroleum Authority and the Contractor disagree over a measurement issue, either one may submit the issue to Expert Determination in accordance with Article 31.9. 20.4 All costs relating to the measurement, maintenance, calibration, inspection, error determination (other than adjustment of revenues) and audit of Total Production and all other costs contemplated in this Article 20 shall be bound by such directionsconsidered Petroleum Costs.

MEASUREMENT OF PETROLEUM. 13.1 Petroleum used for internal consumption, consumption for Petroleum Operations, flared, saved and sold from the Contract Area shall be measured for volume, weight and quality by methods and appliances as prescribed by the Government and in absence thereof as per the methods and by appliances generally accepted and customarily used in modern oilfield and petroleum industry practices and approved by the Good International Petroleum Industry Practices (GIPIP)Management Committee and the Government. 13.2 The Government may, at all reasonable times, inspect and test the appliances used for measuring the volume and determining the quality of Petroleum, provided that any such inspection or testing shall be carried out in such a manner so as not to unduly interfere with Petroleum Operations and may at any time be at variance with Article 13.3(b)Operations. 13.3 The Contractor Before commencement of production from the Contract Area, the Parties shall comply with the procedure prescribed by the Government mutually agree on: (a) methods to be employed for measurement of petroleum, on various aspects including but not limited to:volumes of Petroleum production; a. (b) the point or points at which Petroleum shall be measured which shall include:and the respective shares allocated to the Parties in accordance with the terms of this Contract; (ic) measurement at the Well Head; and (ii) measurement at the identified Delivery Points, provided that the measurement at the Well Head shall only be for the purposes of information and record and shall be submitted to the Government on a Monthly basis; b. the frequency of inspections and testing of measurement appliances and relevant procedures relating thereto;thereto;and c. (d) the consequences of a determination of an error in measurement; d. reconciliation mechanism between Petroleum Produced and Saved and Petroleum sold; and e. methods to be employed for measurement of volume, weight and quality. 13.4 The Contractor shall undertake to measure the volume and quality of the Petroleum Produced and Saved from the Contract Area at the agreed measurement point consistent with generally accepted modern oilfield and petroleum industry practices with the frequency and according to procedures prescribed by the Government agreed pursuant to Article 13.3 and in absence thereof shall apply methods, appliances, procedures consistent with Good International Petroleum Industry Practices (GIPIP)13.3. The Contractor shall not make any alteration in the agreed method or procedures prescribed for measurement or to any of the prescribed approved appliances used for that purpose without the written consent of the Management Committee and the Government. 13.5 The Contractor shall give the Government timely notice of its intention to conduct measuring operations or any agreed alteration for such operations and the Government shall have the right to be present at and supervise, either directly or through authorized authorised representatives, such operations. 13.6 The Contractor shall keep all the records of analysis and measurement of hydrocarbons calibrations and proving of measurement system and make available to Government or its authorized agency such records on request or at the end of every quarter. Records shall be kept for the currency of the contract periodrequest. 13.7 Notwithstanding anything contained hereinabove, the Government may modify, supplement or supplant the directions issued to the Contractor on the methodology of measurement, the equipment used for the measurement and the point of measurement of petroleum and the Contractor shall be bound by such directions.

MEASUREMENT OF PETROLEUM. 13.1 Petroleum used for internal consumption, Petroleum Operations, flared, saved and sold from the Contract Area shall be measured for volume, weight and quality by methods and appliances as prescribed by the Government and in absence thereof as per the methods and by appliances generally accepted and customarily used in the Good International Petroleum Industry Practices (GIPIP). 13.2 The Government may, at all reasonable times, inspect and test the appliances used for measuring the volume and determining the quality of Petroleum, provided that any such inspection or testing shall be carried out in such a manner so as not to unduly interfere with Petroleum Operations and may at any time be at variance with Article 13.3(b). 13.3 20.1 The Contractor shall comply with the procedure prescribed by the Government for measurement of petroleum, on various aspects including but not limited to: a. the point or points at which Petroleum shall be measured which shall include: (i) measurement at the Well Head; and (ii) measurement at the identified Delivery Points, provided that the measurement at the Well Head shall only be for the purposes of information and record and shall be submitted to the Government on a Monthly basis; b. the frequency of inspections and testing of measurement appliances and relevant procedures relating thereto; c. the consequences of a determination of an error in measurement; d. reconciliation mechanism between Petroleum Produced and Saved and Petroleum sold; and e. methods to be employed for measurement of volume, weight and quality. 13.4 The Contractor shall undertake to measure the volume and quality of Total Production for each Exploitation Area at the Petroleum Produced Delivery Point and Saved from the Contract Area as necessary for compliance with the frequency Article 20.2, using measurement appliances and according to procedures prescribed by the Government pursuant to Article 13.3 and in absence thereof shall apply methods, appliances, procedures consistent accordance with Good International Petroleum Industry Practices (GIPIP)Practice and the relevant development and production plan. Total Production measurement appliances shall be installed, maintained and operated by the Contractor. If the Contractor wishes to change said measurement appliances or procedures, the Contractor shall obtain prior written approval from the Authority. The Contractor shall not make any alteration in periodically calibrate the method or procedures prescribed measurement appliances and the period for measurement or to any calibration shall be agreed with the Authority. 20.2 The Parties recognize that the required measurements may occur on the seafloor and that the location of the prescribed appliances used for that purpose without devices may introduce practical limits with regard to periodic inspection. Subject to this limitation, the written consent of the Government. 13.5 The Contractor shall give the Government timely notice of its intention to conduct measuring operations or any agreed alteration for such operations and the Government Authority’s authorized representatives shall have the right to supervisebe present at and to observe Delivery Point Total Production measurement and to examine or inspect the measurement appliances or procedures used. The Authority shall have the right to authorize an internationally recognized inspection company to conduct such inspections and examinations. Inspections and examinations by or on behalf of the Authority shall not interfere in any material way with the Contractor’s Petroleum Operations or be conducted in such a manner as to introduce safety, either directly health or through authorized representativesenvironmental hazards. During inspections by the Authority, the Contractor shall provide transportation, food and housing at the relevant locations to the Authority representatives under the same conditions as it provides such operationstransportation, food and housing to its own personnel. Representatives of the Authority shall use the Contractor’s transportation to offshore facilities within the Contract Area to ensure the safety of the representatives of the Authority. 13.6 20.3 If a measuring error is discovered by either the Authority or the Contractor, the Contractor shall use its best efforts to determine the correct Total Production figures for the period during which there was a measuring error and the corrected figures shall be used. The Contractor shall keep all submit for the records Authority’s approval a report detailing the source and nature of analysis the measuring error and measurement the corrections to be applied. Where the appliances and procedures used have caused an overstatement or understatement of hydrocarbons calibrations and proving of measurement system and make available to Government or its authorized agency such records on request or at measured quantities, the end of every quarter. Records error shall be kept deemed to have existed since the date of the last calibration of the appliances, unless the contrary can be justified by the Party benefitting from such error. Retrospective adjustments to related payments and Petroleum Costs Account balances shall be made within thirty (30) days of the determination of the amount of the error. If there was an overpayment, it shall be adjusted as a credit against subsequent payments due under the relevant Article or Articles of this Contract. If there is an underpayment, it shall be adjusted by payment by the Contractor within twenty (20) days from such determination in the manner required for the currency of initial payment. If the contract period. 13.7 Notwithstanding anything contained hereinabove, the Government may modify, supplement or supplant the directions issued to the Contractor on the methodology of measurement, the equipment used for the measurement and the point of measurement of petroleum Authority and the Contractor disagree over a measurement issue, either one may submit the issue to Expert Determination in accordance with Article 31.8. 20.4 All costs relating to the measurement, maintenance, calibration, inspection, error determination (other than adjustment of revenues) and audit of Total Production and all other costs contemplated in this Article 20 shall be bound by such directionsconsidered Petroleum Costs.