TRANSFER OF TITLE TO THE HYDROCARBONS AND LIFTING Sample Clauses
The "Transfer of Title to the Hydrocarbons and Lifting" clause defines when and how ownership of produced hydrocarbons passes from the producer to the buyer or another designated party. Typically, this clause specifies the exact point—such as at the delivery terminal, loading port, or metering station—where title and risk of loss shift, and outlines the procedures for physically lifting or taking possession of the hydrocarbons. Its core function is to clearly allocate ownership and risk at a specific stage in the supply chain, thereby preventing disputes over responsibility for the product during transportation or storage.
TRANSFER OF TITLE TO THE HYDROCARBONS AND LIFTING. 28.1. The transfer of title and risks to the share of production of Hydrocarbons corresponding to each Party shall occur at the Point Of Delivery of the Natural Gas or at the Point of Transfer of the Crude Oil. The Contractor shall not become the owner of the Hydrocarbons before this Point of Transfer of the Natural Gas or Crude Oil but it shall contract all insurance necessary in order to cover any damage, loss or liability that may occur before the Point of Transfer of the Natural Gas or Crude Oil caused by the Contractor, its agents and its subcontractors.
28.2. The Government and the Contractor shall have the right and obligation, subject to the provisions of articles 16, 21 and 27.1, to lift and control the share of Hydrocarbons corresponding to it pursuant to this Agreement. This share shall be lifted on as regular a basis as possible, with the understanding that each of the Parties, within reasonable limits, shall be authorised to lift more (overlift) or less (underlift) than its share of Hydrocarbons produced and not lifted on the day of lifting, provided that this overlift or underlift does not affect the rights of the other Parties and that it is compatible with the production rates and storage capacity. In establishing the order of lifting, priority shall be given to the Party with the greatest quantity of Hydrocarbons produced and not lifted at a given time. The Parties shall periodically meet to establish a provisional lifting program based upon the principles described above, taking into account the wishes of the Parties with regard to the dates and quantities of their liftings, insofar as their wishes are compatible with these principles. Before the start of production in the Delimited Region, the Parties shall enter into a lifting agreement consistent with the principles expressed in this article.