Common use of Petroleum Costs Account Clause in Contracts

Petroleum Costs Account. The Contractor shall keep a “Petroleum Costs Account” to record in detail the expenses incurred and effectively paid by the Contractor in relation to the Petroleum Operations performed pursuant to this Agreement, which shall be recoverable in accordance with the provisions of articles 16 and 21 of the Agreement. Recovery of the Petroleum Costs will be on the basis of the expenses incurred and effectively paid. In particular, this Petroleum Costs Account shall separately indicate, by Appraisal Perimeter or Production Perimeter, if applicable, the following expenses: a) the Exploration Expenses; b) the Appraisal Expenses; c) the Development Expenses; d) the Production Expenses; e) the Financial Expenses; f) the Overheads in the Republic of Côte d’Ivoire; g) the Overheads abroad; h) the abandonment reserve funds: i) national needs, and j) training, equipment and social works expenses. The Petroleum Costs Account shall allow, among others, the following to be identified at any time: a) the total amount of Petroleum Costs since the Effective Date; b) the total amount of Petroleum Costs recovered; c) the total amount credited to the Petroleum Costs Account pursuant to article 2.4.b) of this Accounting Procedure, and d) the total amount of Petroleum Costs still to be recovered. For the purposes of application of articles 16 and 21 of the Agreement, the Petroleum Costs shall be recovered according to the following order of priority: a) production expenses of a Field incurred and effectively paid from the start date of regular production; b) financial expenses, and c) other Petroleum Costs. Furthermore, in each of the categories indicated above, the costs shall be recovered in the order in which they are incurred and effectively paid. Notwithstanding any provisions to the contrary in this Accounting Procedure, the intent of the Parties is to not duplicate any credit or debit in the accounts maintained pursuant to the Agreement.