Value of Material Charged to the Accounts Under the Agreement. (a) Except as otherwise provided in (b) below, material purchased by the Contractor for use in Petroleum Operations shall be valued to include invoice price less trade and cash discounts (if any), purchase and procurement fees plus freight and forwarding charges between point of supply and point of shipment, freight to port of destination, insurance, taxes, custom duties consular fees, other items chargeable against imported material and, where applicable, handing and transportation expenses from point of importation to warehouse or operating site, and its costs shall not exceed those currently prevailing in normal arms length transactions on the open market. (b) Material purchased from or sold to Affiliate Companies or transferred to or from activities of the Contractor, other than Petroleum Operations under this Agreement, shall be priced and charged or credited at the prices specified in (1) and (2) below: (1) New Material (Condition “A”) shall be valued the current international price which shall not exceed price prevailing in normal arms length transactions on the open market. (2) Used Material (Conditions “B” and “C”) (i) Material which is in sound and serviceable condition and is suitable for re-use without reconditioning shall be classified as Condition “B” and priced at not more than seventy-five percent (75%) of the current price of new materials defined in (1) above. (ii) Material which cannot be classified as Condition “B” but which:
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Samples: Production Sharing Agreement
