Common use of Downstream Facilities Clause in Contracts

Downstream Facilities. At such time as the CONTRACTOR has established commercial production, the CONTRACTOR may undertake technical and economic studies to determine the feasibility of establishing downstream facilities such as petrochemical, liquefied natural gas (“LNG”), liquefied petroleum gas (“LPG”), compressed natural gas (CNG) or middle distillate synthesis plants in the Philippines to utilize a portion of the Petroleum produced from the Contract Area. All expenditures for such studies shall be considered Operating Expenses, provided that the same is included in the Work Program and Budget approved by the DEPARTMENT. If the studies indicate that a particular downstream facility could be constructed and operated in an economical and technically feasible manner, then the CONTRACTOR shall have the option, subject to the DEPARTMENT's approval, to design, construct, and operate such facility. The DEPARTMENT shall assist the CONTRACTOR in obtaining such approvals.

Downstream Facilities. At such time as the CONTRACTOR has established commercial production, the CONTRACTOR may undertake technical and economic studies to determine the feasibility of establishing downstream facilities such as petrochemical, liquefied natural gas (“LNG”), liquefied petroleum gas (“LPG”), compressed natural gas (CNG) or middle distillate synthesis plants in the Philippines to utilize a portion of the Petroleum produced from the Contract Area. All expenditures for such studies shall be considered Operating Expenses, provided that the same is included in the Work Program and Budget approved by the DEPARTMENT. If the studies indicate that a particular downstream facility could be constructed and operated in an economical and technically feasible manner, then the CONTRACTOR shall have the option, subject to the DEPARTMENT's ’s approval, to design, construct, and operate such facility. The DEPARTMENT shall assist the CONTRACTOR in obtaining such approvals.

Downstream Facilities. At such time as the CONTRACTOR has established commercial production, the CONTRACTOR may undertake technical and economic studies to determine the feasibility of establishing downstream facilities such as petrochemical, liquefied natural gas (“LNG”), liquefied petroleum gas (“LPG”), compressed natural gas (CNG) or middle distillate synthesis plants in the Philippines to utilize a portion of the Petroleum produced from the Contract Area. All expenditures for such studies shall be considered Operating Expenses, provided that the same is included in the Work Program and Budget approved by the DEPARTMENTGOVERNMENT. If the studies indicate that a particular downstream facility could be constructed and operated in an economical and technically feasible manner, then the CONTRACTOR shall have the option, subject to the DEPARTMENTGOVERNMENT's approval, to design, construct, and operate such facility. The DEPARTMENT GOVERNMENT shall assist the CONTRACTOR in obtaining such approvals.