Common use of Indirect Charge for Projects Clause in Contracts

Indirect Charge for Projects. As to major projects (such as, but not limited to processing plants, and dismantling for decommissioning of camps and/or other related facilities) when the estimated cost of each project amounts to more than US$1,000,000 a separate indirect charge for such project shall be approved by the Parties from time to time during the time of the project. During its process of winding-up Operations, Operator shall have the right to charge the greater of the sliding scale percentage rate or the minimum indirect charge for a period of twenty-four (24) months. If the winding-up process continues beyond the end of such period, the charge shall be confined to and based upon the sliding scale percentage rate. Notwithstanding the foregoing, the indirect rates and related calculation method for development operations, production operations, and dismantling for decommissioning of platforms and related facilities shall be agreed upon by the Parties prior to and for those phases(es) of operations.