Profit Oil. After distribution of the amounts of Crude Oil as required pursuant to Article 12 and Sub-articles 13.2, 13.3 and 13.4, any remaining Crude Oil (i.
Profit Oil. 5. The amount chargeable to and recoverable from Royalty Oil, Tax Oil and Cost Oil to be entered in Section B of Schedule B-1 shall be determined as follows:
Profit Oil. The amount chargeable to and recoverable as Royalty Oil, and Cost Oil shall be determined as follows:
Profit Oil. After distribution of the amounts of Crude Oil as required pursuant to Article 12 and Sub-articles 13.2, 13.3 and 13.4, any remaining Crude Oil (i.e. Profit Oil) produced from the Commercial Field shall be distributed between Contractor and Staatsolie as a function of the value of the “R” factor defined herein. The R-factor shall be calculated for each Commercial Field on a Calendar Quarterly basis. Because the precise value for the R-Factor for a Calendar Quarter cannot be determined with certainty until after the end of that Calendar Quarter, allocation of Profit Oil with respect to such Calendar Quarter shall be made on a prospective basis during such Calendar Quarter based upon the Contractor’s good faith estimates of the information required in the calculation of the R- Factor pursuant hereto. Any adjustments to such provisional R-Factor following the end of such Calendar Quarter shall be settled pursuant to the procedures agreed by the Parties in the Lifting Procedures, and such final R-Factor will be applied retrospectively to the Profit Oil allocations of the Parties. The R-Factor shall be equal to the cumulative gross revenue minus the cumulative Royalty minus cumulative income tax, divided by cumulative Petroleum Expenditures on a Commercial Field basis. Subject to the above, the R-factor shall be applied to Profit Oil produced during the relevant Calendar Quarter in calculating the Crude Oil to which each Party is entitled. R = (cumulative gross revenue – cumulative royalty-cumulative income tax) (cumulative petroleum expenditures) For purposes of this calculation:
Profit Oil. After distribution of the amounts of Crude Oil as required pursuant to Article 12 and Sub- Articles 14.2, 14.3 and 14.4, any remaining Crude Oil (i.e. Profit Oil) produced from the Commercial Field shall be distributed between Contractor and Staatsolie as agent of the Republic of Suriname as a function of the value of the “R- factor” defined herein. The R-factor shall be calculated for each Commercial Field on a Calendar Quarterly basis. Because the precise value for the R-Factor for a Calendar Quarter cannot be determined with certainty until after the end of that Calendar Quarter, the estimated R-factor shall be made available by the Operator in the last week of such Calendar Quarter. The R-Factor shall be equal to the cumulative gross revenue minus the cumulative Royalty minus the cumulative income tax, divided by the cumulative recoverable Petroleum Expenditures on a Commercial Field basis. Subject to the above, the R-factor shall be applied to Profit Oil produced during the relevant Calendar Quarter in calculating the Crude Oil to which each Party is entitled. R = (cumulative gross revenue – cumulative royalty – cumulative income tax) (cumulative petroleum expenditures) For purposes of this calculation: “cumulative gross revenue” means the total value of all Gross Production from the Effective Date to end of the respective Calendar Quarter, with Gross Production being valued at the Market Price. “cumulative royalty” means 6.25% of the cumulative gross revenue;
Profit Oil. Profit oił is the allocation of the remaining production between the foreign investors and the host after subtracting the concession fee and the investor company’s cost oil24. The foreign oil company’s share of the profit oil is usually taxable. Researchers focus on how to balance geopotential with the cost of doing business and fiscal conditions. In assessing fiscal conditions, the focus is on the sharing of profits between the host state and the for- eign oil company. Geopotential, costs, infra- structure and other key factors are factored into the foreign oil company’s earnings. In most countries, the distribution of profit oil ranges from 15% to 55% for the foreign oil company25.
