Common use of Provisions common to Associated and Non-Associated Gas Clause in Contracts

Provisions common to Associated and Non-Associated Gas. 24.3.1 The Contractor shall have the right to dispose of its share of production of Natural Gas in accordance with the provisions of this Contract. It shall also have the right to proceed with the separation of liquids from all Natural Gas produced by Contractor, and to transport, store as well as sell on the local market or for export its share of liquid Hydrocarbons so separated which will be considered as Crude Oil for the purposes of the sharing between the Republic and the Contractor under Article 6. 24.3.2 For the purposes of this Contract, the Market Price for Natural Gas shall be equal to: (i) With respect to Natural Gas export sales, the invoiced price, netted back to the Delivery Point, obtained by the Contractor for Natural Gas in Arm’s Length Sales to third parties, or absent Arm’s Length Sales, the value at which such Natural Gas could be sold on similar terms, at similar times and at a similar location by parties in Arm’s Length Sales. (ii) With respect to Natural Gas sales transactions on the domestic market, a Natural Gas sales price determined on the basis of a formula which shall be mutually agreed between the Republic and the Contractor using the following considerations: - publicly available information regarding international market prices of natural gas similar in quality to the gas to be valued; - the market destination of the Natural Gas; - the price of alternative fuels to Natural Gas at the final destination; - ancillary costs required to produce and market gas, such as gathering, treating or processing costs, distribution costs or taxes; - an assumption of sound marketing practices; - an assumption of efficient operations; - provision for an economic return commensurate with that of international gas development projects; and - any other relevant considerations. 24.3.3 When required by the Minister pursuant to Article 12.2, the Contractor shall market the Republic’s share of Profit Gas, except as provided in respect of Associated Natural Gas in Article 24.2.2.

Provisions common to Associated and Non-Associated Gas. 24.3.1 The Contractor shall have the right to dispose of its share of production of Natural Gas in accordance with the provisions of this Contract. It shall also have the right to proceed with the separation of liquids from all Natural Gas produced by Contractor, and to transport, store as well as sell on the local market or for export its share of liquid Hydrocarbons so separated which will be considered as Crude Oil for the purposes of the sharing between the Republic and the Contractor under Article 6. 24.3.2 For the purposes of this Contract, the Market Price for Natural Gas shall be equal to: (i) With respect to Natural Gas export sales, the invoiced price, netted back to the Delivery Point, price obtained by the Contractor for Natural Gas in Arm’s Length Sales to third parties, or absent Arm’s Length Sales, the value at which such Natural Gas could be sold on similar terms, at similar times and at a similar location by parties in Arm’s Length Sales. (ii) With respect to Natural Gas sales transactions on the domestic market, a Natural Gas sales price determined on the basis of a formula which shall be mutually agreed between the Republic and the Contractor using the following considerations: - publicly available information regarding international market prices of natural gas similar in quality to the gas to be valued; - the market destination of the Natural Gas; - the price of alternative fuels to Natural Gas at the final destination; - ancillary costs required to produce and market gas, such as gathering, treating or processing costs, distribution costs or taxes; - an assumption of sound marketing practices; - an assumption of efficient operations; - provision for an economic return commensurate with that of international gas development projects; and - any other relevant considerations. 24.3.3 When required by the Minister pursuant to Article 12.2, the Contractor shall market the Republic’s share of Profit Gas, except as provided in respect of Associated Natural Gas in Article 24.2.2.

Provisions common to Associated and Non-Associated Gas. 24.3.1 (a) The Contractor shall have the right to dispose of its share of production of Natural Gas in accordance with the provisions of this Contract. It shall also have the right to proceed with the separation of liquids from all Natural Gas produced by Contractor, and to transport, store as well as and sell on the local market or for export its share of liquid Hydrocarbons Petroleum so separated which will be considered as Crude Oil for the purposes of the sharing between the Republic State and the Contractor under Article 614. 24.3.2 (b) For the purposes of this Contract, the “Market Price Price” for Natural Gas shall be equal to: (i) With respect to Natural Gas export sales, the invoiced price, netted back to the Delivery Point, price obtained by the Contractor for Natural Gas in Arm’s Length Sales to third parties, or absent Arm’s Length Sales, the value at which such Natural Gas could be sold on similar terms, at similar times and at a similar location by parties in Arm’s Length Sales. (ii) With respect to Natural Gas sales transactions on the domestic market, a Natural Gas sales price determined on the basis of a formula which shall be mutually agreed between the Republic State and the Contractor using the following considerations: - : (i) publicly available information regarding international market prices of natural gas similar in quality to the gas to be valued; - ; (ii) the market destination of the Natural Gas; - ; (iii) the price of alternative fuels to Natural Gas at the final destination; - ; (iv) ancillary costs required to produce and market gas, such as gathering, treating or processing costs, distribution costs or taxes; - ; (v) an assumption of sound marketing practices; - ; (vi) an assumption of efficient operations; - ; (vii) provision for an economic return commensurate with that of international gas development projects; and - and (viii) any other relevant considerations. 24.3.3 When required by (iii) Adjustments for any differences between an estimated Natural Gas Market Price and the Minister pursuant to Natural Gas Market Price as finally determined shall be provided for in a manner consistent with the adjustments for Crude Oil Market Prices set forth in Article 12.218. (c) If the Contractor participates in the development, production and marketing of Natural Gas under Articles 21.1 and/or 21.2, the Contractor shall market the RepublicState’s share allocation of Profit the Net of Royalty Production of Natural Gas, as well as the shares of Remaining Natural Gas Production applicable to the NOCAL Participation and the Citizen Participation except as expressly provided otherwise in respect the applicable development and production plan. (d) All facilities shall be planned and constructed so as to avoid any natural gas flaring or venting under normal operating conditions. Any excess of Associated Natural Gas which is not marketed or utilized in Article 24.2.2Petroleum Operations shall be reinjected by the Contractor unless the Authority has authorized it to be flared (i) during production testing operations, (ii) when necessary for the safety of operations in accordance with Good International Petroleum Industry Practices, and/or (iii) when re-injection is incompatible with good reservoir management or petroleum engineering practice and the Director General is reasonably satisfied that the Natural Gas cannot be marketed or otherwise utilized in a manner that would avoid material interference with Crude Oil production. In case of an emergency, the Contractor may undertake flaring or venting of Natural Gas without the prior approval of the Director General, but the Contractor shall ensure that flaring or venting is kept at the lowest possible level, shall notify the Authority promptly of such occurrence and as soon as practicable thereafter shall submit to the Authority a technical report detailing the nature and circumstances that caused the emergency and the steps taken to eliminate the need for such flaring or venting.