Valuation of Natural Gas. 21.6.1 The Contractor shall endeavour to sell all Natural Gas produced and saved from the Contract Area at arms-length prices to the benefits of Parties to the Contract.
21.6.2 Notwithstanding the provision of Article 21.6.1, Natural Gas produced from the Contract Area shall be valued for the purposes of this Contract as follows :
(a) Gas which is used as per Article 21.2 or flared with the approval of the Government or re-injected or sold to the Government pursuant to Article 21.4.5 shall be ascribed a zero value;
(b) Gas which is sold to the Government or any other Government nominee shall be valued on the terms and conditions actually obtained including pricing formula and delivery; and (Explanation : However, it is clarified that this provision would apply only when the sale is made to the Government or Government nominee under the provisions of the Contract)
(c) Gas which is sold or disposed of otherwise than in accordance with paragraph (a) or (b) shall be valued on the basis of competitive arms length sales in the region for similar sales under similar conditions.
Valuation of Natural Gas. 21.6.1 The Contractor shall endeavour to sell all Natural Gas produced and saved from the Contract Area at arms-length prices to the benefits of Parties to the Contract.
21.6.2 Notwithstanding the provision of Article 21.6.1, Natural Gas produced from the Contract Area shall be valued for the purposes of this Contract as follows :
(a) Gas which is used as per Article 21.2 or flared with the approval of the Government or re-injected or sold to the Government pursuant to Article
Valuation of Natural Gas. The Contractor will have freedom for pricing and sale of gas produced from Contract Area on Arm‘s Length Sales basis. However, Government‘s share of Revenue shall be calculated based on the higher of the price arrived at, by the following methods:
i. through competitive bidding process; or
ii. the price calculated as per the guidelines prescribed by the Government.
Valuation of Natural Gas. 21.6.1 The Contractor shall endeavour to sell all Natural Gas produced and saved from the Contract Area at arms-length prices to the benefits of Parties to the Contract.
21.6.2 Notwithstanding the provision of Article 21.6.1, Natural Gas produced from the Contract Area shall be valued for the purposes of this Contract as follows :
(a) Gas which is used as per Article 21.2 or flared with the approval of the Government or re-injected or sold to the Government pursuant to Article 21.4.5 shall be ascribed a zero value;
(b) Gas which is sold to the Government or any other Government nominee shall be valued on the terms and conditions actually obtained including pricing formula and delivery; and
Valuation of Natural Gas. 20.5.1 The Contractor shall endeavor to sell all Natural Gas produced and saved from the Contract Area atArms-Length Sales prices and for the benefit of Parties to the Contract.
20.5.2 Notwithstanding the provision of Article 20.5.1, Natural Gas produced from the Contract Area shall be valued for the purposes of this Contract as follows:
(a) Gas which is used as per Article 20.1 or flared with the approval of the Government or re-injected or sold to the Government pursuant to Article 10.5 shall be ascribed a zero value;
(b) Gas which is sold to the Government or any other Government nominee shall be valued on the terms and conditions actually obtained including pricing formula and delivery; and (Explanation: However, it is clarified that this provision would apply only when the sale is made to the Government or Government nominee under the provisions of the Contract); and
(c) Gas which is sold or disposed of otherwise than in accordance with Para (a) or (b) shall be valued on the basis of competitive Arms Length Sales in the region for similar sales under similarconditions.
20.5.3 So as to ensure that the gas is valued at Arms Length Sales price or where Arms Length Sales price is impossible toarrive at the formula or basis on which the prices shall be determined pursuant to Article 20.5.2
Valuation of Natural Gas. The Contractor shall endeavour to sell all Natural Gas produced and saved from the Contract Area at arms-length prices to the benefits of Parties to the Contract.
Valuation of Natural Gas. 21.6.1 The Contractor shall endeavour to sell all Natural Gas produced and saved from the Contract Area at arms-length prices to the benefit of the Parties to this Contract.
21.6.2 Notwithstanding the provision of Article 21.6.1, Natural Gas produced from the Contract Area shall be valued for the purposes of this Contract as follows:
(a) Gas which is used as per Article 21.2 or flared with the approval of the PRDS or re-injected or sold to the PRDS pursuant to Article 21.4.5 shall be ascribed a zero value;
(b) Gas which is sold to the PRDS or any other Government nominee shall be valued on the terms and conditions actually obtained including pricing formula and delivery; and
(c) Gas which is sold or disposed of otherwise than in accordance with paragraphs (a) or (b) above shall be valued on the basis of competitive Arms Length Sales in the region for similar sales under similar conditions.
Valuation of Natural Gas. 21.6.1 The Contractor shall endeavour to sell all Natural Gas produced and saved from the Contract Area at arms-length prices to the benefits of Parties to the Contract.
21.6.2 Notwithstanding the provision of Article 21.6.1, Natural Gas produced from the Contract Area shall be valued for the purposes of this Contract as follows :
(a) Gas which is used as per Article 21.2 or flared with the approval of the Government or re-injected or sold to the Government pursuant to Article 21.4.5 shall be ascribed a zero value;
(b) Gas which is sold to the Government or any other Government nominee shall be valued on the terms and conditions actually obtained including pricing formula and delivery; and
(c) Gas which is sold or disposed of otherwise than in accordance with paragraph (a) or (b) shall be valued on the basis of competitive arms length sales in the region for similar sales under similar conditions.
21.6.3 The formula or basis on which the prices shall be determined pursuant to Articles 21.6.2 (b) or (c) shall be approved by the Government prior to the sale of Natural Gas to the consumers/buyers. For granting this approval, Government shall take into account the prevailing policy, if any, on pricing of Natural Gas including any linkages with traded liquid fuels, and it may delegate or assign this function to a regulatory authority as and when such an authority is in existence.
Valuation of Natural Gas. 16.3.1 If there are Arm’s Length Sales Agreements in place for the sale of natural gas, the Market Price of natural gas shall be the actual sales price obtained under such Agreements, calculated at the Delivery Point, which may take into account quantities to be sold, quality, geographic location of markets to be supplied as well as costs of production, transportation, treatment and distribution of natural gas from the Delivery Point to the relevant market, in accordance with Good International Oilfield Practice.
16.3.2 If there is no arm’s length Agreement in place for the sale of natural gas, the Market Price is determined as that which permits the natural gas sold to reach, at the treatment or consumption places, a fair Market Price equivalent to that of natural gas of comparable quality.
16.3.3 The Investor shall make any and all natural gas sales Agreements, including all the terms and conditions contained therein or related thereto together with any pertaining annexes concluded for the sale of natural gas extracted in accordance with the provisions herein, available to the Agency and shall ensure that the natural gas sales Agreements contain provisions to this effect.
Valuation of Natural Gas. 15.1 Contractor shall use with priority any Natural Gas in the Contract Area for the purpose of increasing the recovery of Oil, where good international reservoir practices indicate that the use of Natural Gas for this purpose is required.
15.2 Contractor may use free of charge any Natural Gas in the Contract Area for Petroleum Operations.
15.3 Any Associated Natural Gas as is not used under Article 15.1 or Article 15.2 and which Contractor does not consider possible to recover economically shall be offered to Petrobangla without any payment to Contractor but at Petrobangla's cost at the well-head or field facilities in the Production Area. To the extent that Petrobangla does not so take any of such Associated Natural Gas, Contractor may flare such Associated Natural Gas provided that such flaring is included in the Development Plan submitted under Article 8.9.
15.4 Following good reservoir management practices, Contractor shall have the right to produce annually a total volume of Gas up to seven and a half per cent (7.5%) or a greater percentage as may be agreed by Petrobangla and the Contractor of the Proven plus Probable Recoverable Gas reserves for each Gas Field, as the expression "Proven plus Probable" is defined and approved by the Society of Petroleum Engineers and the World Petroleum Council in 2007 or as subsequently amended.
15.5 The volumes of Marketable Natural Gas shall be the volumes of Natural Gas produced, less
a) the Natural Gas used for Petroleum Operations;
b) the Natural Gas used for increasing recovery of Oil, and
c) any shrinkage as a result of processing such Natural Gas.
15.6 a) Contractor shall first offer its share of Cost Recovery Gas and Profit Gas to Petrobangla, and Petrobangla shall undertake that it or its Affiliates will purchase the gas. This obligation shall not be diminished if additional reserves of Gas are discovered outside the Contract Area as long as Contractor is fulfilling its obligation to deliver Natural Gas from the Production Area. The contractual terms of purchase and sale of such marketable Natural Gas shall be negotiated with Petrobangla or its Affiliate prior to approval of the Development Plan and shall include the financial terms set out in Article 15.10.
