General Conditions Applicable to Natural Gas. (a) The Contractor shall have the primary responsibility for marketing all the available natural gas from the contract area and for negotiating for the sale thereof on a joint basis at fair market prices and terms common to both the Minister and the Contractor. The Contractor will pursue markets both within and outside Guyana and seek to market natural gas to the highest realization outlets after deduction of transportation costs. The Contractor will seek to recognize natural gas’s potential value at the international value of alternative fuels in the end user market of the buyers.- (b) The Contractor shall have the right, but not the obligation, to process natural gas for conversion to liquids, chemicals or similar gas utilization projects and Contractor shall have the right to dispose of the liquids or products therefrom. The Contractor shall have the right to process natural gas for recovery of the liquids contained therein and such liquids sold shall be treated as crude oil. The Parties shall carry out friendly negotiations to reach an agreement on the valuation of such liquids when the Contractor submits a proposal for such development. The agreement shall be based on principles for valuation of crude oil provided in Article 13, taking into consideration the specific components of the liquids recovered from the natural gas.- (c) The Contractor shall have the right to use natural gas, both associated gas and non-associated gas, as may be required for oil field and gas field operations, including the right to re-inject for pressure maintenance and enhanced recovery without charge, fee or royalty. Hi-
General Conditions Applicable to Natural Gas. (a) Subject to the Government’s election to take its production in kind and reserving its rights to market its own production, the Parties may agree in writing (where such agreement shall be considered a part of this Agreement,) on such terms and conditions to be determined by friendly negotiations but not inconsistent with the bases for the development and full utilization of any Natural Gas Fields within the Contract Area, in accordance with the international petroleum practices. Subject to any such written agreement, Contractor shall have the sole responsibility for marketing all the available Natural Gas from the Contract Area and for negotiating for the sale thereof on a joint basis at fair market prices and terms common to both the Minister and the Contractor in accordance with Third Party Sales principles. The Contractor will pursue markets both within and outside Guyana and seek to market Natural Gas to the highest realization outlets after deduction of transportation costs. The Contractor will seek to recognize Natural Gas’ potential value at the international value of alternative fuels in the end user market of the buyers.
