Non-Associated Gas Addendum. Within ninety (90) Days of the Discovery of a significant amount of non-Associated Gas, which in the written opinion of Contractor may be commercial, the Parties shall initiate negotiations for an addendum to this Contract for non-Associated Gas (“Addendum”), which shall establish the procedures and conditions by which Contractor may Appraise, develop and produce such Discovery. The principles for the Addendum shall be the same as those for Crude Oil, but the terms may be negotiated in order to make such Discovery not less profitable to Parties than would be realized in a Discovery of Crude Oil of a similar magnitude. The Addendum shall include, among others, provisions to:
a) govern the orderly Appraisal, Development and Production of such Discovery;
b) determine the expected market price for natural gas in relation to its location, volume and potential customers;
c) address Staatsolie’s direct participation; and
d) address cost reimbursement and payment to Contractor The provisions of the Addendum shall result in a similar profit split to that for Crude Oil under this Contract.
Non-Associated Gas Addendum. Subject to the provisions of Sub Article 21.3.2, within ninety (90) Days of the Contractor determining that there is a market for a non-Associated Gas, which in the written opinion of Contractor may be commercial, the Parties shall initiate negotiations for an addendum to this Contract for non-Associated Gas (“Addendum”), which shall establish the procedures and conditions by which Contractor may Appraise, develop and produce such Discovery. The principles for the Addendum shall be the same as those for Crude Oil, and the terms may be negotiated in order to make such development and production not less profitable to Parties than would be realized for Crude Oil of a similar magnitude. The Addendum shall include, among others, provisions to:
a) govern the orderly Appraisal, Development and Production of such Discovery;
b) determine the expected market price for Natural Gas in relation to its location, volume and potential customers;
c) address Staatsolie’s direct participation; and
d) address cost reimbursement and payment to Contractor and profit sharing between Parties.
