VALUATION OF CRUDE OIL. (a) The Parties agree that Tanzanian Crude Oil produced and saved from the Contract Area shall be sold or otherwise disposed of at competitive international market prices. The average fair market price of Crude Oil marketed in any Quarter shall, for the purpose of giving effect to this Agreement, be determined as follows: (i) as soon as possible after the end of each Quarter in which Crude Oil has been produced from the Contract Area an average price (in terms of US$ per barrel, FOB PanAfrican Tanzania’s Delivery Point for export from Tanzania) for each separate volume of Crude Oil of the same gravity, sulphur and metal content, pour point, product yield and other relevant characteristics (“quality”) shall be determined in respect of production during that Quarter. It is understood that production from different areas may be of differing quality and that separate average prices may accordingly be appropriate for any Quarter in respect of production from each area, in which event the overall price applicable to production from the Contract Area shall be determined by taking the arithmetic weighted average (weighted by volume) of all such prices separately determined. (ii) the prices aforesaid shall be determined on the basis of international fair market value as follows: (A) in the event that 50% or more of the total volume of sales made by PanAfrican Tanzania during the Quarter of Crude Oil of a given quality produced and saved hereunder have been third party arms’ length sales transacted in foreign exchange (hereinafter referred to as “Third Party Oil Sales”), the fair market valuation for all Crude Oil of that quality will be taken to be the simple arithmetic average price actually realized in such Third Party Oil Sales. This will be calculated by dividing the total receipts from all Third Party Oil Sales by the total number of Barrels of Crude Oil sold in such sales; (B) Subject to Section 11.5(a)(iii) below, in the event that less than 50% of the total volume of sales made by PanAfrican Tanzania during the Quarter of Crude Oil of a given quality produced and saved hereunder have been Third Party Oil Sales, the fair market valuation for all Crude Oil of that quality will be determined by the arithmetic weighted average of:
Appears in 2 contracts
Samples: Production Sharing Agreement, Production Sharing Agreement
VALUATION OF CRUDE OIL.
(a) The Parties parties hereby agree that Tanzanian Crude Oil produced and saved from the Contract Area shall be sold or otherwise disposed of at competitive international market prices. The average fair market price of Tanzania Crude Oil marketed in any Calendar Quarter shall, for the purpose of giving effect to this Agreement, be determined as follows:
(i1) as soon as possible after the end of each Calendar Quarter in which Crude Oil has been produced from the Contract any Development Area pursuant to this Agreement an average price (in terms of US$ per barrel, FOB PanAfrican Tanzaniathe Contractor’s Delivery Point actual loading point for export from Tanzania) for each separate volume of Crude Oil of the same gravity, sulphur and metal content, pour point, product yield and other relevant characteristics (“quality”) )” shall be determined in respect of production during that Calendar Quarter. It is understood that production from different areas Development Areas may be of differing quality and that separate average prices may accordingly be appropriate for any Calendar Quarter in respect of production from for each areaArea, in which event the overall price applicable to production from the Contract Area shall be determined by taking the arithmetic weighted average (weighted by volume) of all such prices separately determined.;
(ii2) the prices aforesaid shall be determined on the basis of international fair market value as follows:
(Ai) in the event that 50% or more of the total volume of sales made by PanAfrican Tanzania the Contractor during the Calendar Quarter of Crude Oil of a given quality produced and saved hereunder have been third party arms’ arms length sales transacted in foreign exchange (hereinafter referred to as “Third Party Oil Sales”), the fair market valuation for all Crude Oil of that quality will be taken to be the simple arithmetic average price actually realized realised in such Third Party Oil Sales. This will be calculated by dividing the total receipts from all Third Party Oil Sales by the total number of Barrels of Crude Oil sold in such sales;
(Bii) Subject subject to Section 11.5(a)(iiisub-paragraph (3) below, in the event that less than 50% of the total volume of sales made by PanAfrican Tanzania the Contractor during the Calendar Quarter of Crude Oil of a given quality produced and saved hereunder have been Third Party Oil Sales, the fair market valuation for all Crude Oil of that quality will be determined by the arithmetic weighted average of:
(A) the simple arithmetic average price actually realised in the Third Party Sales during the Calendar Quarter of such Crude Oil produced and saved hereunder, if any, calculated by dividing the total receipts from all Third Party Sales by the total number of Barrels of Crude Oil sold in such sales; and
(B) the simple arithmetic average price per Barrel at which a selection of major competitive crude oils of generally similar quality to that of Tanzanian Crude Oil produced hereunder were sold in international markets during the same period; the prices of the crude oils used for reference will be adjusted for differences in quality, quantity, transportation costs, delivery time, payment and other contract terms. The selected crude oils will be agreed between the Contractor and Government, in consultation with TPDC, in advance for each Calendar year and in making the selection preference will be given to those crude oils of similar quality to Tanzanian Crude Oil which are produced in Africa or the Middle East and are regularly sold in the same markets as Tanzanian Crude Oil is normally sold. The arithmetic weighted average aforesaid will be determined by the percentage volume of sales of Tanzanian Crude Oil by the Contractor that are, (A), and that are not, (B), as the case may be, Third Party Sales during the Calendar Quarter in question.
(iii) all such prices will be adjusted to FOB the Contractor’s actual loading point for export from Tanzania;
(iv) for the purposes of this Article, Third Party Sales of Crude Oil made by the Contractor shall include any third party arms length sales made by the Contractor on Government’s behalf pursuant to Article 16 herein but shall exclude:
(A) Sales, whether direct or indirect through brokers or otherwise, of any seller to any Affiliate of such seller.
(B) Crude Oil exchanges, barter deals or restricted or distress transactions, and more generally any Crude Oil transaction which is motivated in whole or in part by considerations other than the usual economic incentives for commercial arms length crude oil sales.
(3) In the event that less than 50% of the total volume of sales by the Contractor during the Calendar Quarter of Crude Oil of a given quality produced and saved hereunder have been Third Party Sales, the Contractor shall promptly notify Government and TPDC of the applicable percentage and respective volumes and prices realised. Government and TPDC shall have the right to elect for the fair market valuation for all Crude Oil of that quality to be determined for that Quarter in accordance with sub-Article 12 (a) (2) (i) of this Article. If Government and TPDC so elect, they will notify the Contractor in writing within 14 days of receipt of the original notification from the Contractor, and the fair market valuation of the aforesaid Crude Oil shall be determined accordingly. If Government and TPDC do not so elect then the fair market valuation shall be determined in accordance with sub-Article 12 (a) (2) (ii) of this Article.
(b) The Contractor shall be responsible for establishing the relevant average prices for Crude Oil in accordance with this Article 12 and such prices shall be subject to agreement by TPDC before they shall be accepted as having been finally determined. The Contractor shall provide TPDC with all relevant material in order that it can satisfy itself that the average price determined by the Contractor is fair. If the parties fail to agree on the average price for any Calendar Quarter within 30 days following the end of such Quarter then the calculation of the relevant average price shall be referred to a sole expert appointed pursuant to sub-article (d) of this Article. The sole expert’s determination shall be final and binding.
(c) During the Calendar year in which production from the Contract Area commences the parties will meet in order to establish a provisional selection of the major competitive crude oils and an appropriate mechanism for the purposes of giving effect to sub-Article 12 (a) (2) (ii) (B) of this Article. The selection of crude oils will be reviewed annually and modified if necessary.
(d) In the event of any difference or dispute between the Contractor and Government or TPDC concerning selection of the major competitive crude oils, or more generally about the manner in which the prices are determined according to the provisions of this Article 12, the matter or matters in issue shall finally be resolved by a sole expert appointed by agreement between the parties or, in the absence of such agreement, by the British Institute of Petroleum. The costs of the expert shall be shared equally between the Contractor on the one hand and the Government and TPDC on the other hand.
Appears in 2 contracts
Samples: Production Sharing Agreement, Production Sharing Agreement
VALUATION OF CRUDE OIL. (a) The Parties parties hereby agree that Tanzanian Crude Oil produced and saved from the Contract Area shall be sold or otherwise disposed of at competitive international market prices. The average fair market price of Tanzania Crude Oil marketed in any Calendar Quarter shall, for the purpose of giving effect to this Agreement, be determined as follows:
(i1) as soon as possible after the end of each Calendar Quarter in which Crude Oil has been produced from the Contract any Development Area pursuant to this Agreement an average price (in terms of US$ per barrel, FOB PanAfrican Tanzaniathe Company’s Delivery Point actual loading point for export from Tanzania) for each separate volume of Crude Oil of the same gravity, sulphur and metal content, pour point, product yield and other relevant characteristics (“quality”) )” shall be determined in respect of production during that Calendar Quarter. It is understood that production from different areas Development Areas may be of differing quality and that separate average prices may accordingly be appropriate for any Calendar Quarter in respect of production from for each areaArea, in which event the overall price applicable to production from the Contract Area shall be determined by taking the arithmetic weighted average (weighted by volume) of all such prices separately determined.
(ii2) the The prices aforesaid shall be determined on the basis of international fair market value as follows:
(Ai) in the event that 50% or more of the total volume of sales made by PanAfrican Tanzania the Company during the Calendar Quarter of Crude Oil of a given quality produced and saved hereunder have been third party arms’ arms length sales transacted in foreign exchange (hereinafter referred to as “Third Party Oil Sales”), the fair market valuation for all Crude Oil of that quality will be taken to be the simple arithmetic average price actually realized realised in such Third Party Oil Sales. This will be calculated by dividing the total receipts from all Third Party Oil Sales by the total number of Barrels of Crude Oil sold in such sales;
(Bii) Subject subject to Section 11.5(a)(iiisub-paragraph (3) below, in the event that less than 50% of the total volume of sales made by PanAfrican Tanzania the Company during the Calendar Quarter of Crude Oil of a given quality produced and saved hereunder have been Third Party Oil Sales, the fair market valuation for all Crude Oil of that quality will be determined by the arithmetic weighted average of:
(A) the simple arithmetic average price actually realised in the Third Party Sales during the Calendar Quarter of such Crude Oil produced and saved hereunder, if any, calculated by dividing the total receipts from all Third Party Sales by the total number of Barrels of Crude Oil sold in such sales; and
(B) the simple arithmetic average price per Barrel at which a selection of major competitive crude oils of generally similar quality to that of Tanzanian Crude Oil produced hereunder were sold in international markets during the same period; the prices of the crude oils used for reference will be adjusted for differences in quality, quantity, transportation costs, delivery time, payment and other contract terms. The selected crude oils will be agreed between the Company and Government, in consultation with T.P.D.C., in advance for each Calendar year and in making the selection preference will be given to those crude oils of similar quality to Tanzanian Crude Oil which are produced in Africa or the Middle East and are regularly sold in the same markets as Tanzanian Crude Oil is normally sold. The arithmetic weighted average aforesaid will be determined by the percentage volume of sales of Tanzanian Crude Oil by the Company that are, (A), and that are not, (B), as the case may be, Third Party Sales during the Calendar Quarter in question.
(iii) all such prices will adjusted to FOB the Company’s actual loading point for export from Tanzania;
(iv) for the purposes of this Article, Third Party Sales of Crude Oil made by the Company shall include any third party arms length sales made by the Company on Government’s behalf pursuant to Article 15 herein but shall exclude:
(A) Sales, whether direct or indirect through brokers or otherwise, of any seller to any Affiliate of such seller.
(B) Crude Oil exchanges, barter deals or restricted or distress transactions, and more generally any Crude Oil transaction which is motivated in whole or in part by considerations other than the usual economic incentives for commercial arms length crude oil sales.
(3) In the event that less than 50% of the total volume of sales by the Company during the Calendar Quarter of Crude Oil of a given quality produced and saved hereunder have been Third Party Sales, the Company shall promptly notify Government and T.P.D.C. of the applicable percentage and respective volumes and prices realised. Government and T.P.D.C. shall have the right to elect for the fair market valuation for all Crude Oil of that quality to be determined for that Quarter in accordance with sub-article 10 (a) (2) (i) above. If Government and T.P.D.C.. so elect they will notify the Company in writing within 14 days of receipt of the original notification from the Company, and the fair market valuation of the aforesaid Crude Oil shall be determined accordingly. If Government and T.P.D.C. do not so elect then the fair market valuation shall be determined in accordance with sub-article 10 (a)
Appears in 1 contract
Samples: Production Sharing Agreement
VALUATION OF CRUDE OIL. (a) The Parties agree that Tanzanian 16.2.1 Crude Oil produced and saved from the Contract Area oil shall be sold or otherwise disposed valued at the FOB realised sales price at the Delivery Point expressed in US Dollars per Barrel at the date of at competitive international market pricesthe xxxx of lading, as determined for each month and referred to as Market Price. The value shall be established for each grade of crude oil or for each crude oil blend, if any.
16.2.2 The Market Price applicable to liftings of crude oil during a certain month shall be calculated at the end of that month and shall be equal to the weighted average fair market price of the FOB prices obtained by the Investor and the Republic of Croatia at the Delivery Point for crude oil sold to third parties during that month, on an arm’s length basis, adjusted to reflect the variances in quality, grade, as well as FOB delivery terms and conditions of payment. The quantities sold on an Arm’s Length Sales basis during the month shall represent at least thirty per cent (30 %) of the total quantities of Crude Oil marketed obtained from all the Fields under this Agreement and sold during said month.
16.2.3 In the event no such sales on an arm’s length basis are made during the month in question or such sales represent less than 30% of the total quantities of crude oil obtained from all the fields pursuant to the Agreement on the Exploration and Production of Hydrocarbons and sold during said month, the Market Price shall be determined as the average of the prevailing daily prices realised per Barrel on an arm’s length basis in such month through the sale of a basket of the three internationally traded crude oils in the Mediterranean of a similar gravity and sulphur content, as published in the Platts Oilgram Price Report, adjusted to reflect variances in gravity, sulphur and transportation and any special terms and conditions relating to the sale of such crude oils.
16.2.4 The following transactions shall, inter alia, be excluded from the calculation of the Market Price:
a) sales in which the buyer is an affiliate of the seller as well as sales between legal entities constituting the Investor;
b) sales in which the buyer has any direct or indirect relationship or common interest with the Investor which could reasonably influence the sales price;
c) sales in exchange for a Fee other than payment in freely convertible currencies and sales fully or partially made for reasons other than the usual economic incentives involved in crude oil sales on the international market, such as exchange contracts, sales from government to government or to government agencies.
16.2.5 The Commission for determining the value of Hydrocarbons appointed by the minister competent for energy pursuant to the Act comprised of representatives of the Ministry and the Agency and, as required, the representative from other public law authorities of the Republic of Croatia and the representatives of the Investor, shall meet without delay after the end of each Quarter, and in any Quarter shallcase no later than twenty (20) days after the expiry of the Quarter, for the purpose of giving effect determining the Market Price of recovered Crude Oil applicable to this Agreement, be determined as follows:the months of the previous Quarter pursuant to the provisions of Article 16. The Investor and representatives of the Republic of Croatia in charge of selling crude oil shall submit to the Commission evidence that the sales of crude oil are arm’s length sales.
16.2.6 In the event no decision is taken by the Commission within thirty (i30) as soon as possible days after the end of each the Quarter in which question, the Market Price of the Crude Oil has been produced from the Contract Area an average price (in terms of US$ per barrel, FOB PanAfrican Tanzania’s Delivery Point for export from Tanzania) for each separate volume of Crude Oil of the same gravity, sulphur and metal content, pour point, product yield and other relevant characteristics (“quality”) shall be determined in respect of production during that Quarter. It is understood that production from different areas may be of differing quality and that separate average prices may accordingly be appropriate for any Quarter in respect of production from each area, in which event the overall price applicable to production from the Contract Area shall be determined by taking an expert appointed with the arithmetic weighted average mutual Agreement of the Parties within ten (weighted by volume10) days. Failing reaching Agreement within ten (10) days, any one of all the Parties may request the ICC’s International Centre for Expertise of the ADR International Chamber of Commerce to appoint such prices separately determinedexpert in accordance with the Rules for Expertise in force on the Effective Date of this Agreement. The expert, meeting the requirements set out in Article 35.2, shall establish the price in accordance with the provisions of this Article 16 within twenty (20) days from his appointment.
(ii) 16.2.7 Pending the prices aforesaid determination of the price, the Market Price provisionally applicable to a certain month shall be determined on the basis of international fair market value as follows:
(A) in the event that 50% or more Market Price of the total volume preceding month. All necessary adjustments are made no later than thirty (30) days after the end of sales made by PanAfrican Tanzania during the Quarter of Crude Oil of a given quality produced and saved hereunder have been third party arms’ length in which the sales transacted in foreign exchange (hereinafter referred to as “Third Party Oil Sales”), the fair market valuation for all Crude Oil of that quality will be taken to be the simple arithmetic average price actually realized in such Third Party Oil Sales. This will be calculated by dividing the total receipts from all Third Party Oil Sales by the total number of Barrels of Crude Oil sold in such sales;
(B) Subject to Section 11.5(a)(iii) below, in the event that less than 50% of the total volume of sales made by PanAfrican Tanzania during the Quarter of Crude Oil of a given quality produced and saved hereunder have been Third Party Oil Sales, the fair market valuation for all Crude Oil of that quality will be determined by the arithmetic weighted average of:were made.
Appears in 1 contract
Samples: Production Sharing Agreement
VALUATION OF CRUDE OIL. (a) The Parties parties hereby agree that Tanzanian Crude Oil produced and saved from the Contract Area shall be sold or otherwise disposed of at competitive international market prices. The average fair market price of Tanzanian Crude Oil marketed in any Calendar Quarter shall, for the purpose of giving effect to this Agreement, be determined as follows:
(i1) as soon as possible after the end of each Calendar Quarter in which Crude Oil has been produced from the Contract any Development Area pursuant to this Agreement an average price (in terms of US$ per barrel, barrel FOB PanAfrican Tanzaniathe Contractor’s Delivery Point actual loading point for export from the United Republic of Tanzania) for each separate volume of Crude Oil of the same gravity, sulphur and metal content, pour point, product yield and other relevant characteristics (“quality”) shall be determined in respect of production during that Calendar Quarter. It is understood that production from different areas Development Areas may be of differing quality and that separate average prices may accordingly be appropriate for any Calendar Quarter in respect of production from for each areaArea, in which event the overall price applicable to production from the Contract Area shall be determined by taking the arithmetic weighted average (weighted by volume) of all such prices separately determined.;
(ii2) the prices aforesaid shall be determined on the basis of international fair market value as follows:
(Ai) in the event that 50% or more of the total volume of sales made by PanAfrican Tanzania the Contractor during the Calendar Quarter of Crude Oil of a given quality produced and saved hereunder have been third party arms’ arms length sales transacted in foreign exchange (hereinafter referred to as “Third Party Oil Sales”), the fair market valuation for all Crude Oil of that quality will be taken to be the simple arithmetic average price actually realized in such Third Party Oil Sales. This will be calculated by dividing the total receipts from all Third Party Oil Sales by the total number of Barrels of Crude Oil sold in such sales;
(Bii) Subject subject to Section 11.5(a)(iiisub-paragraph (3) below, in the event that less than 50% of the total volume of sales made by PanAfrican Tanzania the Contractor during the Calendar Quarter of Crude Oil of a given quality produced and saved hereunder have been Third Party Oil Sales, the fair market valuation for all Crude Oil of that quality will be determined by the arithmetic weighted average of:
(A) the simple arithmetic average price actually realized in the Third Party Sales during the Calendar Quarter of such Crude Oil produced and saved hereunder, if any, calculated by dividing the total receipts from all Third Party Sales by the total number of Barrels of Crude Oil sold in such sales; and
(B) the simple arithmetic average price per Barrel at which a selection of major competitive crude oils of generally similar quality to that of Tanzanian Crude Oil produced hereunder and crude of sufficient liquidity daily traded in sufficient quantities (above 0.1 million barrels
Appears in 1 contract
Samples: Production Sharing Agreement
VALUATION OF CRUDE OIL. (a1) The Parties agree that Tanzanian Crude Oil produced and saved from the Contract Agreement Area shall be sold or otherwise disposed of at competitive international market prices. prices determined at the time or sale or disposition.
(2) The average fair market price value (“Market Value”) of Crude Oil marketed produced and saved from the Agreement Area sold or otherwise disposed of in any Quarter shall, for the purpose of giving effect to this Agreement, Month shall be determined as followsfollows for the purposes of the Company's liability to pay Royalty, PIT and PAPT:
(ia) as soon as possible Within ten (10) days after the end of each Quarter Month in which Crude Oil has been produced and saved from the Contract Area any Petroleum Field, an average price (expressed in terms of US$ per barrel), FOB PanAfrican Tanzania’s assessed at the Delivery Point for export from Tanzania) Point, for each separate volume of Crude Oil of the same specific gravity, sulphur and metal content, pour point, product yield and other relevant characteristics characteristics, (“quality”"Quality") shall be determined in respect of production during that Quarter. Month.
(b) It is understood that production from different areas Fields may be of differing quality Quality and that separate average prices and Market Prices may accordingly be appropriate for any Quarter Month in respect of production from each area, in which event the overall price applicable to production from the Contract Area shall be determined by taking the arithmetic weighted average (weighted by volume) of all such prices separately determinedField.
(ii3) the The prices aforesaid of Crude Oil referred to in sub-clause 14(2) shall be determined on the basis of international fair market value value, interpreted and applied as follows:
(Aa) in In the event that 50% of thirty per-cent (30%) or more of the total volume of sales made by PanAfrican Tanzania during the Quarter of Crude Oil of a given quality Quality produced and saved hereunder have been by the Company during the Month being by third party arms’ length Arm's Length sales transacted in foreign exchange (hereinafter referred to as “"Third Party Oil Sales”"), the fair market valuation Market Value for all Crude Oil of that quality will Quality shall be taken to be the simple arithmetic average price actually realized in such Third Party Oil Sales. This will be price, calculated by dividing the total receipts from all such Third Party Oil Sales by the total number of Barrels barrels of Crude Oil sold in such sales;, actually realised in such sales.
(Bb) Subject to Section 11.5(a)(iii) below, in In the event that of less than 50% thirty per-cent (30%) of the total volume of sales made by PanAfrican Tanzania during the Quarter of Crude Oil of a given quality Quality produced and saved hereunder have been by the Company during the Month being by Third Party Oil Sales, the fair market valuation Market Value for all Crude Oil of that quality will Quality shall be determined by the arithmetic weighted average of:
(i) the simple arithmetic average price actually realised in such Third Party Sales during the Month, calculated by dividing the total receipts from all such sales by the total number of barrels of Crude Oil in the such sales; and,
(ii) the simple arithmetic average price, adjusted for differences in Quality, quantity, transportation costs, delivery time, payment and other contract terms, at which a selection, determined in accordance with the terms of sub-clause 14(3) by mutual agreement between the Parties, of major competitive crude oils of generally similar quality to that of Crude Oil produced and saved were sold in international markets during the same period. The arithmetic weighted average aforesaid shall be determined by the percentage volume of sales of Crude Oil by the Company referred to above which are Third Party Sales during the Month in question and such sales referred above which are not Third Party Sales during the Month in question.
(iii) All prices referred to in this Clause shall be assessed at the Delivery Point.
(iv) For the purposes of this Clause, Third Party Sales of Seychelles Crude Oil made by the Company shall exclude:
Appears in 1 contract
Samples: Model Petroleum Agreement
