Between term sales and spot sales and itemize volumes

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between term sales and spot sales and itemize volumes, customers, prices received and credit terms, and the Contractor/ each Member comprising thereof (as the case may be) shall allow the designated nominee(s) of the Government to examine the relevant sales contracts. 20.4.4 In order to determine, the applicable price band required for calculating the Government’s Revenue Share pursuant to Appendix D, the average Crude Oil price shall be determined by considering the arithmetic average price per Barrel determined by calculating the average for such month pursuant to this Article 20.4. 20.4.5 The provisions specified above for the determination of the price of sales of Crude Oil shall apply mutatis mutandis to Condensates. 20.5 Valuation of Natural Gas 20.5.1 The Contractor shall endeavor to sell all Natural Gas produced and saved from the Contract Area atArms-Length Sales prices and for the benefit of Parties to the Contract. 20.5.2 Notwithstanding the provision of Article 20.5.1, Natural Gas produced from the Contract Area shall be valued for the purposes of this Contract as follows: (a) Gas which is used as per Article 20.1 or flared with the approval of the Government or re-injected or sold to the Government pursuant to Article 10.5 shall be ascribed a zero value; (b) Gas which is sold to the Government or any other Government nominee shall be valued on the terms and conditions actually obtained including pricing formula and delivery; and (Explanation: However, it is clarified that this provision would apply
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47 only when the sale is made to the Government or Government nominee under the provisions of the Contract); and (c) Gas which is sold or disposed of otherwise than in accordance with Para (a) or (b) shall be valued on the basis of competitive Arms Length Sales in the region for similar sales under similarconditions. 20.5.3 So as to ensure that the gas is valued at Arms Length Sales price or where Arms Length Sales price is impossible toarrive at the formula or basis on which the prices shall be determined pursuant to Article 20.5.2 (c) shallbe approved by the Government prior to invitation of price bids or other price discovery steps by Contractorfor the sale of natural gas to consumers / buyers, within sixty (60) Business Days from the receipt of theproposal or from the date of receipt of clarification / additional information, where asked for by theGovernment. For granting this approval, Government shall take into account amongst other relevantconsiderations, the domestic and international prices of comparable gas and the linkages with tradedliquid fuels. The price of natural gas arrived at through the approved formula / basis shall be applicableuniformly to all the consuming sectors indicated under Article 20.2. Where the Contractor makes sale ofgas at prices higher than approved formula / basis, then the higher price would be reckoned for the purposesof Government take.
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