Production Sharing. 6.1 All Crude Oil/LPG/Condensate and Natural Gas produced and saved from the Contract Area and not used in the Petroleum Operations (hereinafter referred to as "Available Oil" or "Available Gas") shall be measured at the applicable Measurement Point and allocated as set forth hereinafter. Test or experimental Production shall require approval in accordance with the Rules. 6.2 Subject to the Accounting Procedure, Contractor shall recover Expenditure not excluded by the provisions of this Agreement or the Accounting Procedure in respect of all Petroleum Operations hereunder to the extent of and out of a maximum of 85% of all Available Oil and all Available Gas (hereinafter referred to as "Cost Recovery Oil" and "Cost Recovery Gas" respectively). Available Oil and Cost Recovery Oil shall include LPG and Condensate. Any Royalty payments as well as any payment referred to Article IX shall be part of the Expenditure and shall be recoverable as Cost Recovery Oil or Cost Recovery Gas. 6.3 All Expenditure permitted for cost recovery under this Agreement shall be treated as an expense (and not capitalized) for purposes of cost recovery and shall be allocated to Cost Recovery Oil or Cost Recovery Gas on the date such costs are incurred in accordance with the Accounting Procedure. 6.4 The cost recovery shall be determined on a Monthly basis and any Expenditure in excess of the limit established in Article 6.2 shall be carried forward for cost recovery during the following Month, and such procedure shall be repeated until the Expenditure is fully recovered. 6.5 The Crude Oil, LPG and Condensate remaining after the deduction of the Cost Recovery Oil from the Available Oil (subject to the limit provided for in Article 6.2) shall be considered Profit Oil. The Natural Gas remaining after the deduction of the Cost Recovery Gas from the Available Gas (subject to the limit provided for in Article 6.2) shall be considered Profit Gas. 6.6 Profit Oil and Profit Gas from the Contract Area shall be allocated on a Monthly basis between Government Holdings and Contractor in accordance with a sliding scale based on cumulative Production from the Contract Area during the term of this Agreement as follows: (a) Where the Petroleum is obtained from a Shallow Grid Area(s) (description of which is given in Annex-VII) from geological formation(s) encountered at depths less than 4000 meters below sea level: (MMBBLs Crude Oil/LPG/ Condensate Natural Gas Crude Oil/LPG/ Condensate Natural Gas 0 – 100 20% 10% 80% 90% > 100 – 200 25% 15% 75% 85% > 200 – 400 40% 35% 60% 65% > 400 – 800 60% 50% 40% 50% > 800 – 1200 70% 70% 30% 30% > 1200 80% 80% 20% 20% (b) Where the Petroleum is produced from geological formation(s) encountered at depths deeper than 4000 meters below sea level in a Shallow Grid Area(s) or where the Petroleum is produced from geological formation(s) from Deep Grid Area(s) (description of which is given in Annex-VI) irrespective of the depth of the geological formation(s):
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Production Sharing. 6.1 All Crude Oil/LPG/Condensate and Natural Gas produced and saved from the Contract Area and not used in the Petroleum Operations (hereinafter referred to as "Available Oil" or "Available Gas") shall be measured at the applicable Measurement Point and allocated as set forth hereinafter. Test or experimental Production production shall require approval in accordance with the RulesRules and all Available Oil and all Available Gas produced therefrom shall be allocated as set forth herein.
6.2 Subject to the Accounting Procedure, Contractor shall recover Expenditure not excluded by the provisions of this Agreement or the Accounting Procedure in respect of all Petroleum Operations hereunder to the extent of and out of a maximum of 85% of all Available Oil and all Available Gas (hereinafter referred to as "Cost Recovery Oil" and "Cost Recovery Gas" respectively). Available Oil and Cost Recovery Oil shall include LPG and Condensate. Any Royalty payments as well as any payment referred to in Article IX shall be part of the Expenditure and shall be recoverable as Cost Recovery Oil or Cost Recovery Gas.
6.3 All Expenditure permitted for cost recovery under this Agreement shall be treated as an expense (and not capitalized) for purposes of cost recovery and recovery, shall be allocated to Cost Recovery Oil or Cost Recovery Gas on the date such costs are incurred in accordance with the Accounting ProcedureProcedure and shall be determined in US$.
6.4 The cost recovery shall be determined on a Monthly Quarterly basis and any Expenditure in excess of the limit established in Article 6.2 shall be carried forward for cost recovery during the following MonthQuarter, and such procedure shall be repeated until the Expenditure is fully recovered.
6.5 The Crude Oil, LPG and Condensate remaining after the deduction of the Cost Recovery Oil from the Available Oil (subject to the limit provided for in Article 6.2) shall be considered Profit Oil. The Natural Gas remaining after the deduction of the Cost Recovery Gas from the Available Gas (subject to the limit provided for in Article 6.2) shall be considered Profit Gas.
6.6 Profit Oil and Profit Gas from the Contract Area shall be allocated on a Monthly basis between Government Holdings GHPL and Contractor in accordance with a sliding scale based on the cumulative Production Available Oil and Available Gas produced from the Contract Area during the term of this Agreement as follows:
(a) Where the where Petroleum is obtained produced from a Shallow Grid Area(s) (description of which is given in Annex-VIIVI) from geological formation(s) encountered at depths less than 200m water depth and depth to reservoir shallower than 4000 meters below sea level: (MMBBLs MMBBLs) Crude Oil/LPG/ Condensate Natural Gas Crude Oil/LPG/ Condensate Natural Gas 0 – –100 20% 10% 80% 90% > 100 – –200 25% 15% 75% 85% > 200 – –400 40% 35% 60% 65% > 400 – –800 60% 50% 40% 50% > 800 – –1200 70% 70% 30% 30% > 1200 80% 80% 20% 20%
(b) Where the where Petroleum is produced from geological formation(s) encountered at depths xxxxx in deep grid area of more than or equal to 200m and less than 1,000m water depth or deeper than 4000 meters to reservoir below sea level in a Shallow Grid Area(s) or where the Petroleum is produced from geological formation(s) from Deep Grid Area(s) (description of which is given in Annex-VI) irrespective of the depth of the geological formation(s):
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Production Sharing. 6.1 All Crude Oil/LPG/Condensate and Natural Gas produced and saved from the Contract Area and not used in the Petroleum Operations (hereinafter referred to as "Available Oil" or "Available Gas") shall be measured at the applicable Measurement Point and allocated as set forth hereinafter. Test or experimental Production production shall require approval in accordance with the RulesRules and all Available Oil and all Available Gas produced therefrom shall be allocated as set forth herein.
6.2 Subject to the Accounting Procedure, Contractor shall recover Expenditure not excluded by the provisions of this Agreement or the Accounting Procedure in respect of all Petroleum Operations hereunder to the extent of and out of a maximum of 85% of all Available Oil and all Available Gas (hereinafter referred to as "Cost Recovery Oil" and "Cost Recovery Gas" respectively). Available Oil and Cost Recovery Oil shall include LPG and Condensate. Any Royalty payments as well as any payment referred to in Article IX shall be part of the Expenditure and shall be recoverable as Cost Recovery Oil or Cost Recovery Gas.
6.3 All Expenditure permitted for cost recovery under this Agreement shall be treated as an expense (and not capitalized) for purposes of cost recovery and recovery, shall be allocated to Cost Recovery Oil or Cost Recovery Gas on the date such costs are incurred in accordance with the Accounting ProcedureProcedure and shall be determined in US$.
6.4 The cost recovery shall be determined on a Monthly Quarterly basis and any Expenditure in excess of the limit established in Article 6.2 shall be carried forward for cost recovery during the following MonthQuarter, and such procedure shall be repeated until the Expenditure is fully recovered.
6.5 The Crude Oil, LPG and Condensate remaining after the deduction of the Cost Recovery Oil from the Available Oil (subject to the limit provided for in Article 6.2) shall be considered Profit Oil. The Natural Gas remaining after the deduction of the Cost Recovery Gas from the Available Gas (subject to the limit provided for in Article 6.2) shall be considered Profit Gas.
6.6 Profit Oil and Profit Gas from the Contract Area shall be allocated on a Monthly basis between Government Holdings GHPL and Contractor in accordance with a sliding scale based on the cumulative Production Available Oil and Available Gas produced from the Contract Area during the term of this Agreement as follows:
(a) Where the where Petroleum is obtained produced from a Shallow Grid Area(s) (description of which is given in Annex-VIIVI) from geological formation(s) encountered at depths less than 200m water depth and depth to reservoir shallower than 4000 meters below sea level: (MMBBLs MMBBLs) Crude Oil/LPG/ Condensate Natural Gas Crude Oil/LPG/ Condensate Natural Gas 0 – 100 20% 10% 80% 90% > 100 – 200 25% 15% 75% 85% > 200 – 400 40% 35% 60% 65% > 400 – 800 60% 50% 40% 50% > 800 – 1200 70% 70% 30% 30% > 1200 80% 80% 20% 20%
(b) Where the where Petroleum is produced from geological formation(s) encountered at depths xxxxx in deep grid area of more than or equal to 200m and less than 1,000m water depth or deeper than 4000 meters to reservoir below sea level in a Shallow Grid Area(s) or where the Petroleum is produced from geological formation(s) from Deep Grid Area(s) (description of which is given in Annex-VI) irrespective of the depth of the geological formation(s):): (MMBBLs) Crude Oil/LPG/ Condensate Natural Gas Crude Oil/LPG/ Condensate Natural Gas 0 – 200 5% 5% 95% 95% > 200 – 400 10% 10% 90% 90% > 400 – 800 25% 25% 75% 75% > 800 – 1200 35% 35% 65% 65% > 1200 – 2400 50% 50% 50% 50% > 2400 70% 70% 30% 30%
(c) where Petroleum is produced from geological formation(s) from Ultra Deep Grid Area(s) of more than or equal to 1000m water depth (description of which is given in Annex-VI) irrespective of the depth of the geological formation(s): (MMBBLs) Crude Oil/LPG/ Condensate Natural Gas Crude Oil/LPG/ Condensate Natural Gas 0 – 300 5% 5% 95% 95% > 300 – 600 10% 10% 90% 90% > 600 – 1200 25% 25% 75% 75% > 1200 – 2400 35% 35% 65% 65% > 2400 – 3600 45% 45% 55% 55% > 3600 60% 60% 40% 40%
(d) where Crude Oil/LPG/Condensate and Natural Gas is produced from different parts of the Contract Area or from different depths, and a portion of the Petroleum produced from the Contract Area meets the requirements of Article 6.6(a) above and a portion meets the requirements of Article 6.6
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Production Sharing. 6.1 All Crude Oil/LPG/Condensate and Natural Gas produced and saved from the Contract Area and not used in the Petroleum Operations (hereinafter referred to as "Available Oil" or "Available Gas") shall be measured at the applicable Measurement Point and allocated as set forth hereinafter. Test or experimental Production production shall require approval in accordance with the RulesRules and all Available Oil and all Available Gas produced therefrom shall be allocated as set forth herein.
6.2 Subject to the Accounting Procedure, Contractor shall recover Expenditure not excluded by the provisions of this Agreement or the Accounting Procedure in respect of all Petroleum Operations hereunder to the extent of and out of a maximum of 85% of all Available Oil and all Available Gas (hereinafter referred to as "Cost Recovery Oil" and "Cost Recovery Gas" respectively). Available Oil and Cost Recovery Oil shall include LPG and Condensate. Any Royalty payments as well as any payment referred to Article IX shall be part of the Expenditure and shall be recoverable as Cost Recovery Oil or Cost Recovery Gas.
6.3 All Expenditure permitted for cost recovery under this Agreement shall be treated as an expense (and not capitalized) for purposes of cost recovery and recovery, shall be allocated to Cost Recovery Oil or Cost Recovery Gas on the date such costs are incurred in accordance with the Accounting ProcedureProcedure and shall be determined in US$.
6.4 The cost recovery shall be determined on a Monthly basis and any Expenditure in excess of the limit established in Article 6.2 shall be carried forward for cost recovery during the following Month, and such procedure shall be repeated until the Expenditure is fully recovered.
6.5 The Crude Oil, LPG and Condensate remaining after the deduction of the Cost Recovery Oil from the Available Oil (subject to the limit provided for in Article 6.2) shall be considered Profit Oil. The Natural Gas remaining after the deduction of the Cost Recovery Gas from the Available Gas (subject to the limit provided for in Article 6.2) shall be considered Profit Gas.
6.6 Profit Oil and Profit Gas from the Contract Area shall be allocated on a Monthly basis between Government Holdings GHPL and Contractor in accordance with a sliding scale based on the cumulative Production Available Oil and Available Gas produced from the Contract Area during the term of this Agreement as follows:
(a) Where the Petroleum is obtained produced from a Shallow Grid Area(s) (description of which is given in Annex-VIIVI) from geological formation(s) encountered at depths less than 4000 meters below sea level: (MMBBLs Crude Oil/LPG/ Condensate Natural Gas Crude Oil/LPG/ Condensate Natural Gas 0 – 100 20% 10% 80% 90% > 100 – 200 25% 15% 75% 85% > 200 – 400 40% 35% 60% 65% > 400 – 800 60% 50% 40% 50% > 800 – 1200 70% 70% 30% 30% > 1200 80% 80% 20% 20%
(b) Where the Petroleum is produced from geological formation(s) encountered at depths deeper than 4000 meters below sea level in a Shallow Grid Area(s) or where the Petroleum is produced from geological formation(s) from Deep Grid Area(s) (description of which is given in Annex-VI) irrespective of the depth of the geological formation(s):
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