Common use of Natural Gas Use Clause in Contracts

Natural Gas Use. (a) The Contractor shall use with priority any Natural Gas in the Contract Area for the purpose of increasing the recovery of Petroleum, where Industry Best Practice indicates that the use of Natural Gas for this purpose is required. (b) The Contractor may use free of charge any Natural Gas in the Contract Area for Petroleum Operations. (c) The Contractor shall have the right to export any Marketable Natural Gas, produced from the Contract Area and treated as LNG. Such volume shall consist of: (i) the Contractor's Cost Recovery Natural Gas; and (ii) the Contractor's Profit Natural Gas. (d) Where the Contractor intends to export the Marketable Natural Gas as LNG, any LNG facilities which the Contractor constructs and operates for this purpose shall: (i) be constructed and operated on the basis of a separate LNG export agreement to be negotiated in good faith between the Contractor and the Ministry; and (ii) if practicable be made available for use by third parties. (e) Except with the consent of the Ministry, or in an emergency, immediately following which the Contractor will report to the Ministry the details of such emergency, the Contractor shall not flare Natural Gas.

Appears in 2 contracts

Samples: Offshore Production Sharing Contract, Production Sharing Contract

AutoNDA by SimpleDocs

Natural Gas Use. (a) The Contractor shall use with priority any Natural Gas in the Contract Area for the purpose of increasing the recovery of Petroleum, where Industry Best Good Oil Field Practice indicates that the use of Natural Gas for this purpose is required. (b) The Contractor may use free of charge any Natural Gas in the Contract Area strictly for Petroleum Operations. (c) The Contractor shall have the right to export any Marketable Natural Gas, produced from the Contract Area and treated as LNG. Such volume shall consist of: (i) the The Contractor's Cost Recovery Natural Gas; and (ii) the The Contractor's Profit Natural Gas. (d) Where the Contractor intends to export the Marketable Natural Gas as LNG, any LNG facilities which the Contractor constructs and operates for this purpose shall: (i) be Be constructed and operated on the basis of a separate LNG export agreement based on acceptable commercial terms to be negotiated in good faith between the Contractor and the Ministry; and (ii) if practicable If Subject to agreeable commercial terms and condition, such LNG facilities shall be made available for use by any third parties.party (e) Except with the consent of the Ministry, or in an emergency, immediately following which the Contractor will report to the Ministry the details of such emergency, the Contractor shall not flare Natural Gas.

Appears in 2 contracts

Samples: Production Sharing Contract, Production Sharing Contract

Natural Gas Use. (a) The Whenever Good Oil Field Practice so advises, Contractor shall prioritize the use with priority of any Natural Gas in recovered from the Contract Area for the purpose purposes of increasing the recovery of Petroleum, where Industry Best Practice indicates that the use of Natural Gas for this purpose is required. (b) The Contractor may use free of charge any Natural Gas in recovered from the Contract Area free of charge, strictly for the purposes of the Petroleum Operations. (c) The Contractor shall have the right to export any Marketable Natural Gas, produced from the Contract Area and treated as LNG. Such volume shall consist of, which comprises: (i) the Contractor's Cost Recovery Natural Gas; and (ii) the Contractor's Profit Natural Gas. (d) Where the In case Contractor intends to export the Marketable Natural Gas as LNG, any LNG facilities which Facilities built and operated by the Contractor constructs and operates for this purpose shallmust: (i) be constructed build and operated on the basis of a separate LNG export agreement in acceptable commercial terms to be negotiated in good faith between the Contractor and the MinistryANPM; and (ii) if practicable such LNG Facilities must be made available for use by any third partiesparty at reasonable commercial terms and conditions. (e) Except with the consent of the Ministry, Unless otherwise authorized by ANPM or in an case of emergency, to be immediately following which the notified to ANPM with all relevant details, Contractor will report is not allowed to the Ministry the details of such emergency, the Contractor shall not flare Natural Gas.

Appears in 1 contract

Samples: Production Sharing Contract

AutoNDA by SimpleDocs

Natural Gas Use. (a) The Contractor shall use with priority any Natural Gas in the Contract Area for the purpose of increasing the recovery of Petroleum, where Industry Best Practice indicates that the use of Natural Gas for this purpose is required. (b) The Contractor may use free of charge any Natural Gas in the Contract Area for Petroleum Operations. (c) The Contractor shall have the right to export any Marketable Natural Gas, produced from the Contract Area and treated as in the form of LNG. Such volume shall consist of: (i) the Contractor's Cost Recovery Natural Gas; and (ii) the Contractor's Profit Natural Gas. (d) Where the Contractor intends to export the Marketable Natural Gas as LNG, any LNG facilities which the Contractor constructs and operates for this purpose shall: (i) be constructed and operated on the basis of a separate LNG export agreement to be negotiated in good faith between the Contractor and the MinistryANP; and (ii) if practicable be made available for use by third parties. (e) Except with the consent of the MinistryANP, or in an emergency, immediately following which the Contractor will report to the Ministry ANP the details of such emergency, the Contractor shall not flare Natural Gas.

Appears in 1 contract

Samples: Production Sharing Contract

Draft better contracts in just 5 minutes Get the weekly Law Insider newsletter packed with expert videos, webinars, ebooks, and more!