Common use of Petroleum Costs and Remuneration Clause in Contracts

Petroleum Costs and Remuneration. 19.1 For the Petroleum Operations performed under this Contract, and in accordance with Article 27, Contractor shall be entitled to Petroleum Costs and Remuneration. 19.2 In any Quarter, ROC shall be entitled to Royalty of twenty-five percent (25%) of the Deemed Revenue. 19.3 Contractor shall start charging Petroleum Costs to the Operating Account as from the Effective Date, in accordance with this Contract and the Accounting Procedures, but the same shall be due and payable in accordance with Article 19.5and the Accounting Procedures (Annex C). (a) Petroleum Costs applicable to the Contract Area shall include: (i) all De-Mining costs incurred within the Contract Area; (ii) allExploration Expenditures;; (iii) all Appraisal Expenditures;; (iv) Capital Costs and Operating Costs incurred in addition to those described above, excluding any costs listed in Clause 10 of Annex C; (v) payments to the Infrastructure Fund made in accordance with Article 26.5; (vi) payments madefor environmental remediation pursuant to Article 41.17; and (vii) other costs incurred at the direction of ROC and incidental to activities within the Contract Area. 19.4 Contractor shall become entitled to Remuneration and shall start charging the same to the Operating Account only from the Eligibility Date. For the Quarter in which Remuneration first becomes payable, the Remuneration shall be an amount equal to the product of the Remuneration Percentage Bid and Remaining Net Deemed Revenue from the Eligibility Date to the end of that Quarter. (a) For any subsequent Quarter, the Remuneration shall be an amount equal to the product of the Remuneration Percentage Bid and Remaining Net Deemed Revenue. (b) For any Quarter in respect of which Remuneration is due and payable, the Remuneration PercentageBid shall be adjusted by multiplying it by the Performance Factor. However, any adjustment of this Remuneration Percentage Bid shall cease for so long as the following cases shall apply: (i) Government imposed production curtailment under Article 12.5(d); or (ii) where normal production is curtailed or suspended through failure of the Transporter(s) to receive the same at the Transfer Point(s) at no fault of the Operator or Contractor under Article 12.5 (e).

Petroleum Costs and Remuneration. 19.1 For the Petroleum Operations performed under this Contract, and in accordance with Article 27, Contractor shall be entitled to Petroleum Costs and Remuneration. 19.2 In any Quarter, ROC shall be entitled to Royalty of twenty-five percent (25%) of the Deemed Revenue. 19.3 Contractor shall start charging Petroleum Costs to the Operating Account as from the Effective Date, in accordance with this Contract and the Accounting Procedures, but the same shall be due and payable in accordance with Article 19.5and the Accounting Procedures (Annex C). (a) Petroleum Costs applicable to the Contract Area shall include: (i) all De-Mining costs incurred within the Contract Area; (ii) allExploration Expenditures;Expenditures incurred prior to the Declaration of Commerciality; (iii) all Appraisal Expenditures;Expendituresincurred prior to the Declaration of Commerciality; (iv) Capital Costs and Operating Costs incurred in addition to those described above, excluding any costs listed in Clause 10 of Annex C; (v) payments to the Infrastructure Fund made in accordance with Article 26.5; (vi) payments madefor environmental remediation pursuant to Article 41.17; and (vii) other costs incurred at the direction of ROC and incidental to activities within the Contract Area. 19.4 Contractor shall become entitled to Remuneration and shall start charging the same to the Operating Account only from the Eligibility Date. For the Quarter in which Remuneration first becomes payable, the Remuneration shall be an amount equal to the product of the Remuneration Percentage Bid and Remaining Net Deemed Revenue from the Eligibility Date to the end of that Quarter. (a) For any subsequent Quarter, the Remuneration shall be an amount equal to the product of the Remuneration Percentage Bid and Remaining Net Deemed Revenue. (b) For any Quarter in respect of which Remuneration is due and payable, the Remuneration PercentageBid Percentage Bid shall be adjusted by multiplying it by the Performance Factor. However, any adjustment of this Remuneration Percentage Bid shall cease for so long as the following cases shall apply: (i) Government imposed production curtailment under Article 12.5(d); or (ii) where normal production is curtailed or suspended through failure of the Transporter(s) to receive the same at the Transfer Point(s) at no fault of the Operator or Contractor under Article 12.5 (e).