Common use of Other Optimizations Clause in Contracts

Other Optimizations. The “Optimization Account” has been established in order to capture any profit or loss from an optimization that is proposed by Seller and agreed to by Buyer, other than optimizations in connection with the replacement of Cargoes originally purchased for Supply to the Refinery by use of the RGPO as described in Clause 5(g)(i) above. This Optimization Account shall contain separate accounts for all Cargoes concerned and show in detail any commercial activity and its result, including, but not limited to, profit or loss from the purchase and resale of a Cargo, profit or loss from fixing and subsequent re-letting of any shipping, or other expenses arising from the optimization of a Cargo. Furthermore, any working capital considerations shall be included in the Optimization Account. Should the Parties agree that any other economic benefit to be shared between the Parties can most easily be reflected in the Optimization Account, then such economic activity shall also be recorded accordingly. For sake of clarity, all transactions that use the Optimization Account method for accounting for the economic result of an optimization implicitly require that all pricing and costs associated with the original transaction that was optimized be treated as though there were no optimization and be generally unaffected by any optimization process, so that all the benefits and costs of such optimization are aggregated in the Optimization Account for sharing between the Parties.