Production Sharing Modality Clause Samples
The Production Sharing Modality clause defines how the output or products generated from a project or operation are divided among the involved parties. Typically, this clause outlines the specific proportions or formulas used to allocate production, such as oil, gas, or other resources, between the operator and the government or other stakeholders. By clearly establishing the method of sharing, this clause ensures transparency and fairness in the distribution of resources, thereby minimizing disputes and aligning incentives for all parties.
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Production Sharing Modality. The purpose of this Contract is to provide for the conduction of Petroleum Activities by the Contractor within the Contract Area, under a production sharing modality, at its sole cost and risk, in accordance with the Applicable Laws, Industry Best Practices and the terms and conditions of this Contract, in exchange for receipt of the Considerations payable to the Contractor as provided by the Hydrocarbon Revenues Law. The Contractor will be solely responsible for and shall pay all Costs and provide all the personnel, technology, Materials and financing necessary to carry out the Petroleum Activities. The Contractor shall have the exclusive right to conduct the Petroleum Activities in the Contract Area, subject to the terms of this Contract and the Applicable Laws. CNH makes no representation or warranty of any kind regarding the Contract Area, and each of the Participating Companies acknowledges that it has received no guarantee from any Governmental Authority that: (i) there will be any Discoveries in the Contract Area; (ii) in the event of a Discovery, it will be considered a Commercial Discovery, or (iii) that it will receive sufficient Hydrocarbons to cover the Costs it may incur by carrying out Petroleum Activities.
Production Sharing Modality. The purpose of this Contract is to provide for the execution of Petroleum Activities under a production sharing modality by the Contractor within the Contract Area at its sole cost and risk in accordance with the Applicable Laws, Industry Best Practices and the terms and conditions of this Contract, in exchange for the Considerations payable to the Contractor as provided by the Hydrocarbon Revenues Law. The Contractor shall be solely responsible for and will pay all Costs and provide all personnel, technology, Materials and financing necessary to carry out the Petroleum Activities. The Contractor shall have the exclusive right to conduct the Petroleum Activities in the Contract Area, subject to the terms of this Contract and the Applicable Laws. CNH makes no assurance or warranty of any kind regarding the Contract Area, and the Contractor acknowledges that it has received no guarantee from any Governmental Authority that the exploitation of Hydrocarbons in the Contract Area will be commercial, or the Contractor will receive sufficient Hydrocarbons to cover the Costs it may incur in carrying out the Petroleum Activities.