Common use of Associated Natural Gas Clause in Contracts

Associated Natural Gas. 24.2.1 If there is a Commercial Discovery of Crude Oil, the Contractor shall state in the report to the Minister referred to in Article 4.6.5 whether it considers that the production of Associated Natural Gas is likely to exceed the quantities necessary for the requirements of the Hydrocarbons Operations related to the production of Crude Oil (including reinjection operations and field or platform use), and if it considers that such excess is capable of being produced in commercial quantities. If the Contractor shall have informed the Minister of such an excess, the Parties shall jointly evaluate the possible outlets for that excess Associated Natural Gas, both on the local market and for export (including the possibility of joint marketing), together with the means necessary for its marketing. If the Parties agree that the development of the excess Associated Natural Gas is justified, or if the Contractor wishes to develop and produce that excess Associated Natural Gas, the Contractor shall indicate in the Development and Production Plan referred to in Article 5 the additional facilities necessary for the development and exploitation of that excess and estimate the costs related thereto. The Contractor shall then have the right to proceed with the development and production of that excess in accordance with the Development and Production Plan approved by Council of Ministers under the terms provided by Article 5, and the provisions of the Contract applicable to Crude Oil shall apply, mutatis mutandis, to the excess of Natural Gas, unless otherwise specifically provided by this Article 24. A similar procedure shall be applicable if the sale or marketing of Associated Natural Gas is decided during the exploitation of a Field.

Associated Natural Gas. 24.2.1 If there is (a) In the event of a Commercial Discovery commercial discovery of Crude Oil, the Contractor shall state in the report to the Minister referred to in Article 4.6.5 whether inform NOCAL if it considers that the production of Associated Natural Gas is likely to exceed the quantities necessary for the requirements of the Hydrocarbons Petroleum Operations related to the production of Crude Oil (including reinjection operations and field or platform use), and if it considers that such excess is capable of being produced in commercial quantities. If In the event the Contractor shall have informed the Minister NOCAL of such an excess, the Parties shall jointly evaluate the possible outlets for that excess Associated Natural Gas, both on the local market and for export (including the possibility of joint marketing), together with the means necessary for its marketing. If the Parties agree that the development of the excess Associated Natural Gas is justified, or if in the event the Contractor wishes to develop and produce that excess Associated Natural Gas, the Contractor shall indicate in the Development development and Production Plan production plan referred to in Article 5 11.3(c) the additional facilities necessary for the development and exploitation of that excess and estimate the costs related thereto. The Contractor shall then have the right to proceed with the development and production of that excess in accordance with the Development development and Production Plan production plan approved by Council of Ministers NOCAL under the terms provided by Article 511.3(f), and the provisions of the Contract applicable to Crude Oil shall apply, mutatis mutandis, to the excess of Natural Gas, unless otherwise specifically provided by this Article 2421. A similar procedure shall be applicable if the sale or marketing of Associated Natural Gas is decided during the exploitation of a Field.