Gas Production Efficiency definition

Gas Production Efficiency means the actual average gas production divided by the Target Gas Rate. This is expressed as a percentage, and is calculated for each day and averaged for each month. This value cannot be greater than 100%.
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Examples of Gas Production Efficiency in a sentence

  • The Performance Incentive will be payable as: Performance Incentive ($) = (Gas Production Efficiency (%)-Y%) × Z where Z is one half of the Hire Rate.

  • Monthly and annual thresholds for the Performance Incentive will be based upon Gas Production Efficiency.

  • The threshold for payment of the performance element of the production incentive will be when Gas Production Efficiency is equal to Y%.

  • An annual calculation shall also be made in January for the preceding year, and a further Performance Incentive shall be payable using the same formula but with Y having a value of 91%, where Gas Production Efficiency (%) = average actual performance achieved over the year, and Z = one half the then-current Hire Rate to be paid for each day of the year in question.