Common use of Pipeline Transportation Clause in Contracts

Pipeline Transportation. 13.1 Licensee shall have the right to take and transport to an ocean port of loading for export all Petroleum to which it is entitled hereunder and, in connection therewith, shall have the right to construct, operate and maintain an export pipeline, pumping stations, storage and related seaboard terminal facilities. The Government shall assist Licensee on matters involving rights of way, licences or other authorisations required under Uganda law in connection with such facilities and shall assist Licensee in its negotiations with neighbouring countries regarding rights of way and other conditions relating to the construction, operation and maintenance of such facilities in such countries. 13.2 It is understood by the Parties hereto that the construction, financing, operation and maintenance of an export pipeline, pumping stations and related seaboard terminal facilities shall be carried on through separate pipeline company ("the Pipeline Company") which shall be responsible for the handling and transportation of Petroleum from the Delivery Point in Uganda to the ocean port of loading. In such event, the operations of the Pipeline Company will not be included within the meaning of Petroleum Operations under this Agreement and any related Licences. 13.3 Any Development Plan submitted to the Minister by Licensee pursuant to Section 20 of the Act shall include Licensee's proposals with regard to the arrangements for the transportation to the terminal of each of the Parties' production entitlements hereunder. a. each Party shall assume and pay the transportation tariffs charged by the Pipeline Company related to their respective shares of the Petroleum transported, which obligation may, in the case of the Nominee or the Government, be discharged by each of the Nominee and the Government foregoing in favour of the Pipeline Company a portion of their respective production entitlements so transported equal in value to the tariffs due in respect of the transportation of such production entitlements from the Delivery Point to the FOB seaboard terminal point of export; b. the transportation tariff charged, to the extent that the Parties hereto are able to determine the same, shall be set at a level at which the Pipeline Company will cover the costs of constructing, financing, operating and maintaining the export pipeline and related facilities together with a reasonable return thereon; such return will be determined having regard to the risks assumed by shareholders of the Pipeline Company in out-laying the funds for the construction, operation and maintenance of such facilities and the cost of borrowing such funds as are required; and c. in the case of proposals by Licensee for the initial construction of the export pipeline, such proposals shall ensure that the pipeline and related facilities are of sufficient design capacity to handle and transport to the seaboard terminal the estimated production entitlements of all Parties hereto from the Contract Area. If at any time, the throughput capacity of such facilities should be insufficient to handle and transport the respective production entitlements of such Parties, available capacity shall be shared between the Parties in the proportion which each Party's production entitlement bears to the total quantity of production which would otherwise be available for transportation hereunder. 13.4 The Government or its Nominee shall be fully involved in the determination of the tariff charges for the pipeline.

Pipeline Transportation. 13.1 16.1 Licensee shall have the right to take and transport to an ocean port or other point of loading for export all Petroleum to which it is entitled hereunder and, in connection therewith, shall have the right to construct, operate and maintain an export pipeline, pumping stations, storage and related seaboard terminal Seaboard Terminal or other facilities. The Government shall assist Licensee on matters involving rights of way, licences or other authorisations authorizations required under Uganda law in connection with such facilities and shall assist Licensee in its negotiations with neighbouring countries regarding rights of way and other conditions relating to the construction, operation and maintenance of such facilities in such countries. 13.2 16.2 It is understood by the Parties hereto that the construction, financing, operation and maintenance of an export pipeline, pumping stations and related seaboard terminal Seaboard Terminal or other facilities shall be carried on through a separate pipeline company ("“the Pipeline Company"”) which shall be responsible for the handling and transportation of Petroleum from the Delivery Point in Uganda to the ocean port or other point of loading. In such event, the operations of the Pipeline Company will not be included within the meaning of Petroleum Operations under this Agreement and any related Licences. 13.3 16.3 Any Development Plan submitted to the Minister by Licensee pursuant to Section 20 of 21of the Act shall include Licensee's proposals ’s proposal with regard regards to the arrangements for the transportation to the terminal of each of the Parties' production entitlements hereunder.. In the event the said transportation arrangements involve the formation of a separate Pipeline Company pursuant to paragraph 16.2, such proposals shall, unless otherwise agreed, be consistent with the following principles: a. (a) each Party shall assume and pay the transportation tariffs charged by the Pipeline Company related to their respective shares of the Petroleum transported, which obligation may, in the case of the Nominee or the Government, be discharged by each of the Nominee and the Government foregoing in favour of the Pipeline Company a portion of their respective production entitlements so transported equal in value to the tariffs due in respect of the transportation of such production entitlements from the Delivery Point to the FOB seaboard terminal Seaboard Terminal point of export; b. (b) the transportation tariff charged, to the extent that the Parties hereto are able to determine the same, shall be set at a level at which the Pipeline Company will cover the costs of constructing, financing, operating and maintaining the export pipeline and related facilities together with a reasonable return thereon; such return will be determined having regard to the risks assumed by shareholders of the Pipeline Company in out-laying outlaying the funds for the construction, operation and maintenance of such facilities and the cost of borrowing such funds as are required; and c. (c) in the case of proposals by Licensee for the initial construction of the export pipeline, such proposals shall ensure that the pipeline and related facilities are of sufficient design capacity to handle and transport to the seaboard terminal Seaboard Terminal or other delivery point, the estimated production entitlements of all Parties hereto from the Contract Area. If at any time, the throughput capacity of such facilities should be insufficient to handle and transport the respective production entitlements of such Parties, available capacity shall be shared between the Parties in the proportion portion which each Party's ’s production entitlement bears to the total quantity of production which would otherwise be available for transportation hereunder. 13.4 16.4 The Government or its Nominee shall be fully involved in the determination of the tariff charges for the pipeline. 16.5 Transportation tariff charges of the Pipeline Company to the Delivery Point shall be allowable Contract Expenses hereunder. 16.6 Transportation tariff charges of the Pipeline Company, and any costs incurred beyond the Delivery Point shall not be allowable Contract Expenses hereunder.

Pipeline Transportation. 13.1 15.1 Subject to Article 18 and the Laws of Uganda, the Licensee shall have the right to take and transport to an ocean port or other point of loading for export all Petroleum to which it is entitled hereunder and, in connection therewith, shall have the right to construct, operate and maintain an export pipeline, pumping stations, storage and related seaboard terminal facilities. The Government shall assist Licensee on matters involving rights of way, licences Seaboard Terminal or other authorisations required under Uganda law in connection with such facilities and shall assist Licensee in its negotiations with neighbouring countries regarding rights of way and other conditions relating facilities. 15.2 Subject to the constructionLaws of Uganda, operation and maintenance of such facilities in such countries. 13.2 It it is understood by the Parties hereto that the construction, financing, operation and maintenance of an export pipeline, pumping stations and related seaboard terminal Seaboard Terminal or other facilities shall be carried on through a separate pipeline company ("the Pipeline Company") which shall be responsible for the handling and transportation of Petroleum from the Delivery Point in Uganda to the ocean port or other point of loading. In such event, the operations of the Pipeline Company will not be included within the meaning of Petroleum Operations Activities under the Act and this Agreement and any related Licences. 13.3 15.3 Any Field Development Plan submitted to the Minister by the Licensee pursuant to Section 20 71 of the Act shall include the Licensee's proposals with regard to the arrangements for the transportation to the terminal of each of the Parties' production entitlements hereunder.. In the event the said transportation arrangements involve the formation of a separate Pipeline Company pursuant to paragraph 15.2, such proposals shall, unless otherwise agreed, be consistent with the following principles: a. (a) each Party shall assume and pay the transportation tariffs charged by the Pipeline Company related to their respective shares of the Petroleum transported, which obligation may, in the case of the Nominee or the Government, be discharged by each of the Nominee and the Government foregoing in favour of the Pipeline Company a portion of their respective production entitlements so transported equal in value to the tariffs due in respect of the transportation of such production entitlements from the Delivery Point to the FOB seaboard terminal Seaboard Terminal point of export; b. (b) the transportation tariff charged, to the extent that the Parties hereto are able to determine the same, shall be set at a level at which the Pipeline Company will cover the costs of constructing, financing, operating and maintaining the export pipeline and related facilities together with a reasonable the return thereon; such return will to be determined having regard to agreed on by the risks assumed by shareholders of the Pipeline Company in out-laying the funds for the construction, operation and maintenance of such facilities and the cost of borrowing such funds as are required; and c. in the case of proposals by Licensee for the initial construction of the export pipeline, such proposals shall ensure that the pipeline and related facilities are of sufficient design capacity to handle and transport to the seaboard terminal the estimated production entitlements of all Parties hereto from the Contract AreaParties. If at any timewithin 90 days, the throughput capacity of such facilities should be insufficient Parties are unable to handle and transport agree on the respective production entitlements of such Partiesreturn, available capacity shall be shared between either Party may refer the Parties matter for determination in the proportion which each Party's production entitlement bears to the total quantity of production which would otherwise be available for transportation hereunderaccordance with Paragraph 24.2. 13.4 15.4 The Government or its Nominee shall be fully involved in the determination of the tariff charges for the pipeline. 15.5 Any costs incurred beyond the Delivery Point and Transportation tariff charges of the Pipeline Company, shall not be recoverable under this Agreement.

Pipeline Transportation. 13.1 Licensee 15.1 Contractor shall have the right to take and transport to an ocean port its entitlement share of loading for export all Petroleum produced and saved hereunder to which it is entitled hereunder andland or seaport terminal points of export, at or beyond Turkmenistan’s borders. In the latter case, Contractor will negotiate and eventually enter into agreements with the concerned third countries beyond Turkmenistan’s borders. 15.2 Contractor shall periodically keep informed Competent Body on the details and the status of negotiations with the aforementioned third countries, regarding the transport, processing, sale or other disposition of its entitlement share of Petroleum. Contractor shall offer Competent Body the opportunity to participate to the aforesaid negotiations, in connection therewitha joint effort to enter into a multilateral agreement for the transport, processing, sale or other disposition of each Party’s Petroleum entitlement share. 15.3 Subject to transportation capacity being available, Contractor shall have the right to constructuse, operate on a non discriminatory basis, for the transportation of its Petroleum entitlement share to a land or seaboard terminal point of export, an existing Main Pipeline in the territory of, and maintain an owned by, Turkmenistan or by any of its agencies. Contractor shall pay, on a non discriminatory basis, the relevant transportation tariff to the owner of such existing Main Pipeline. 15.4 Should a new Main Pipeline for Petroleum export pipelinebe considered for construction as technically appropriate and economically viable, it is envisaged by the Parties hereto that the construction, financing, operation and maintenance of the new Main Pipeline (the “New Main Pipeline”), pumping stations, storage stations and related seaboard terminal facilitiesfacilities shall be carried out through a separate pipeline company (the “Pipeline Company”) and, as such, shall not be included within the meaning of Petroleum Operations under this Agreement and any related Licences. The operations of the Pipeline Company shall include the construction, financing, operation and maintenance of the New Main Pipeline and related facilities from the Delivery Point in Turkmenistan to the export loading terminal(s). 15.5 Notwithstanding the foregoing, the Government shall assist Licensee undertakes in respect of the Pipeline Company: (a) to extend the same rights and benefits afforded to Contractor under Articles 16, 23, 24 and 25 in respect of Profit Tax, customs duties, taxation of subcontractors and employees and foreign exchange control in Turkmenistan; (b) to render all assistance on matters involving rights of way, licences or other authorisations under the laws of Turkmenistan required under Uganda law in connection with such facilities and shall its operations; and (c) to assist Licensee the shareholders of the Pipeline Company in its their negotiations with neighbouring countries regarding rights of way and other conditions relating to the construction, operation and maintenance of such the New Main Pipeline and related facilities in such countries. 13.2 It is understood by 15.6 At the Parties hereto that the construction, financing, operation and maintenance time of an export pipeline, pumping stations and related seaboard terminal facilities shall be carried on through separate pipeline company ("the Pipeline Company") which shall be responsible submission for the handling and transportation approval of Petroleum from the Delivery Point in Uganda a Development Plan to the ocean port of loading. In such event, the operations of the Pipeline Company will not be included within the meaning of Petroleum Operations under this Agreement and any related Licences. 13.3 Any Development Plan submitted to the Minister by Licensee Management Committee pursuant to Section 20 of the Act shall include Licensee's proposals with regard paragraph 12.4 and by reference to the arrangements for the transportation to the terminal of each of the Parties' production entitlements hereunder. a. each Party shall assume and pay the transportation tariffs charged by the Pipeline Company related to their respective shares of the Petroleum transported, which obligation may, in the case of the Nominee or the Government, be discharged by each of the Nominee and the Government foregoing in favour of the Pipeline Company a portion of their respective production entitlements so transported equal in value to the tariffs due in respect of the transportation of such production entitlements from the Delivery Point to the FOB seaboard terminal point of export; b. the transportation tariff charged, to the extent that the Parties hereto are able to determine the same, shall be set at a level at which the Pipeline Company will cover the costs of constructing, financing, operating and maintaining the export pipeline and related facilities together with a reasonable return thereon; such return will be determined having regard to the risks assumed by shareholders of the Pipeline Company in out-laying the funds for the construction, operation and maintenance of such facilities and the cost of borrowing such funds as are required; and c. in the case of proposals by Licensee for the initial construction of the export pipeline, such proposals shall ensure that the pipeline and related facilities are of sufficient design capacity to handle and transport to the seaboard terminal the estimated production entitlements of all Parties hereto from the Contract Area. If at any time, the throughput capacity of such facilities should be insufficient to handle and transport the respective production entitlements of such Parties, available capacity shall be shared between the Parties in the proportion which each Party's production entitlement bears to the total quantity of production which would otherwise be available for transportation hereunder. 13.4 The Government or its Nominee shall be fully involved in the determination of the tariff charges for the pipeline.paragraph

Pipeline Transportation. 13.1 16.1 Licensee shall have the right to take and transport to an ocean port or other point of loading for export all Petroleum to which it is entitled hereunder and, in connection therewith, shall have the right to construct, operate and maintain an export pipeline, pumping stations, storage and related seaboard terminal Seaboard Terminal or other facilities. The Government shall assist Licensee on matters involving rights of way, licences or other authorisations authorizations required under Uganda law in connection with such facilities and shall assist Licensee in its negotiations with neighbouring countries regarding rights of way and other conditions relating to the construction, operation and maintenance of such facilities in such countries. 13.2 16.2 It is understood by the Parties hereto that the construction, financing, operation and maintenance of an export pipeline, pumping stations and related seaboard terminal Seaboard Terminal or other facilities shall be carried on through a separate pipeline company ("“the Pipeline Company"”) which shall be responsible for the handling and transportation of Petroleum from the Delivery Point in Uganda to the ocean port or other point of loading. In such event, the operations of the Pipeline Company will not be included within the meaning of Petroleum Operations under this Agreement and any related Licences. 13.3 16.3 Any Development Plan submitted to the Minister by Licensee pursuant to Section 20 21 of the Act shall include Licensee's proposals ’s proposal with regard regards to the arrangements for the transportation to the terminal of each of the Parties' production entitlements hereunder.. In the event the said transportation arrangements involve the formation of a separate Pipeline Company pursuant to paragraph 16.2, such proposals shall, unless otherwise agreed, be consistent with the following principles: a. (a) each Party shall assume and pay the transportation tariffs charged by the Pipeline Company related to their respective shares of the Petroleum transported, which obligation may, in the case of the Nominee or the Government, be discharged by each of the Nominee and the Government foregoing in favour of the Pipeline Company a portion of their respective production entitlements so transported equal in value to the tariffs due in respect of the transportation of such production entitlements from the Delivery Point to the FOB seaboard terminal Seaboard Terminal point of export; b. (b) the transportation tariff charged, to the extent that the Parties hereto are able to determine the same, shall be set at a level at which the Pipeline Company will cover the costs of constructing, financing, operating and maintaining the export pipeline and related facilities together with a reasonable return thereon; such return will be determined having regard to the risks assumed by shareholders of the Pipeline Company in out-laying outlaying the funds for the construction, operation and maintenance of such facilities and the cost of borrowing such funds as are required; and c. (c) in the case of proposals by Licensee for the initial construction of the export pipeline, such proposals shall ensure that the pipeline and related facilities are of sufficient design capacity to handle and transport to the seaboard terminal Seaboard Terminal or other delivery point, the estimated production entitlements of all Parties hereto from the Contract Area. If at any time, the throughput capacity of such facilities should be insufficient to handle and transport the respective production entitlements of such Parties, available capacity shall be shared between the Parties in the proportion portion which each Party's ’s production entitlement bears to the total quantity of production which would otherwise be available for transportation hereunder. 13.4 16.4 The Government or its Nominee shall be fully involved in the determination of the tariff charges for the pipeline. 16.5 Transportation tariff charges of the Pipeline Company to the Delivery Point shall be allowable Contract Expenses hereunder. 16.6 Transportation tariff charges of the Pipeline Company, and any costs incurred beyond the Delivery Point shall not be allowable Contract Expenses hereunder.