Common use of DEVELOPMENT FINANCING Clause in Contracts

DEVELOPMENT FINANCING. 20.1 Any interest payment or other financing cost for Petroleum Operations shall not be a cost recoverable expense for Cost Recovery Oil or Cost Recovery Gas purposes. 20.2 Any funds borrowed by Contractor shall not constitute income for purposes of the determination of Profit Oil or Profit Gas and any repayments of principal amount shall not constitute Expenditure. 20.3 The Contractor or any Contracting Company may create a security interest in respect to its Participating Interest with the approval of the Government in accordance with Rule 70 of the Rules.

Appears in 1 contract

Sources: Offshore Production Sharing Agreement

DEVELOPMENT FINANCING. 20.1 Any interest payment or other financing cost for Petroleum Operations shall not be a cost recoverable expense for Cost Recovery Oil or Cost Recovery Gas purposes. 20.2 Any funds borrowed by Contractor shall not constitute income for purposes of the determination of Profit Oil or Profit Gas and any repayments of principal amount shall not constitute Expenditure. 20.3 The Contractor or any Contracting Company may create a security interest in respect to its Participating Interest with the approval of the Government in accordance with Rule 70 of the Rules.

Appears in 1 contract

Sources: Offshore Production Sharing Agreement