THE DEVELOPMENT OF PETROLEUM RESOURCES has been established

         The company shall notify the government within a period of forty  days from the date of discovery of crude oil in commercial quantities of the total amount of such costs and expenses in order to enable the ll have to pay if an the sum shall election under this Article is made.  The books have the right to appoint auditors to examine the said and records of the company and of the operating company verify the said on its behalf.  Payment of such sum shall be made by the government in ten equal installments together with interest on the outstanding balance at a rate equal to the prevailing rate of discount for the time being of the Federal Reserve Bank of the United States of America plus one percent,  calculate from the date six months after the date of discovery of crude oi in commercial quantities.  The first such payment shall be made at one(1)  year intervals thereafter. 

Continue reading

The agreement the force of law This is classic clause since the time of the old-style concessions

      The agreement the force of law This is classic clause since the time of the old-style concessions,  of el effectiveness is presently contested by some students agreements,  who believe that such a clause cannot transform th nature of the contractual provisions into statutory rules adapt time. 

     Under particrt of two idea Its oil Tas LEGAL Frameworks FOR TIEL DEVELOPMENT o PETROUELM Resource’s Paragraph G also stipulates that the groveling law should be-the principles of law normally recognized by civilized states in general including those which have been applied by international tribunals.”  This is also a classic clause about which some authorities in this field have reservations.  They highlight the present difficulty of reaching consensus those general on principles of law applicable throughout the world to all kinds of relationships between investors and host countries. s Article 38,  entitled “Better Terms provides for a form of adaptation clause or a “most favored nation clause”  in the following If in the future,  arrangements  made between the government of Abu Dhabi and any other states in the Middle East or the agent of such a government and the company or any other company companies operating in the petroleum industry as a result of which an increase in benefits should accrue generally to all such governments as aforesaid,  then the government and the company shall review and discuss the changed circumstances within the petroleum industry in order to decide whether any alteration to the terms of this agreement would be equitable to both parties. 

Article 44 provides for government options to acquire,  at any time after the discovery of oil in commercial quantities,  a participating interest of up to 60 percent in all rights and obligations under the agreement.  It then determines,  in paragraph(B),  the basis of calculating the payment to be made by the government for such participation: 

B.  The government shall pay for such participating interest a sum equal to sixty(60)  percent or such lesser proportion as the government shall have elected to acquire of the total accumulated costs and expenses recorded in the books of the company or of the operating company as the case may be as at the date of discovery of crude oil in commercial quantities(excluding the bonus and rentals paid by the company before the date of discovery of crude oil in commercial quantities

      MEN PETROL a referee,  the President of the International Court of Justice may appoint a referee,  at the request of the arbitrators or either of them in the case of a dinerence of The decision of the arbitrators or,  of the reteree,  shall be opinion between them,  the decision final and binding on both parties during

D.  The decision shall specify an adequate period of time shall which the party against whom the decision is given conform to the decision and that party shall be in default only if that party has failed to conform to the decision prior to the expiry of that period and not otherwise

E.  The place of arbitration shall be Abu Dhabi or elsewhere at the discretion ofthe referee. 

F.  The referee shall determine the procedure of the arbitration being guided generally by the relevant rules of procedure established by Articles 32-69 inclusive of the Rules of the International Court of Justice of May 6th,  1946

G.  This Agreement shall have the force of law.  lt shall be given effect and shall be interpreted and applied in conformity with the principles of law normally recognized by civilized states in general including those which have been applied by international tribunals.  This article warrants certain remarks:  Paragraph B entrusts the President of the International Court of Justice to appoint a referee,  in the case of failure of the two parties to agree,  and Paragraph F states that the referee,  in determining the procedure of the arbitration,  shall be guided generally by the relevant rules of procedure of the International Court of Justice.  These provisions carry connotations of an”international”  dimension to the agreement or dispute.  

Production Natural Gas 1977

Production Natural Gas

 Production Natural Gas exports commerce Until the second half of 1977, when gas Between sigh fin of the gas produced Abu Dhabi was percent of structure 1976, for example, approximately 12 fields, and around 26 natural gas produced annually onshore in pumping percent of that produced offshore was utilized stations and power generation in the fields and in the case onshore in electricity and water distillation plants in city.
This is compared with an estimated US$1 billion worth of onshore associated natural gas that was flared over the period 1973 project situation began to change with the promulgation of Law No. 4 bid The of 1976 on Abu Dhabi’s ownership of natural gas, the commencement production of production from the gas liquefaction plant on Das Island in 1977 and the establishment of Abu Dhabi Gas Industries Limited(GASCO) in 1978. Downstream operations Downstream operations in the oil industry are the operations that follow the discovery and production of crude oil. Oil is said to flow downstream from well-head to gas station. These operations cover the refining and processing of oil and gas, transportation by pipelin or tanker, local distribution of refined products and marketing. The petroleum industry of Abu Dhabi covers all phases of the industry, including all downstream activities. Since these active are carried out by ADNOC and its affiliates and subsidiaries, they shall be dealt with in Chapter 3 the To this profile of the petroleum industry of Abu Dhabi following is a quote from a statement made by AD on its website: The UAE’s oil reserves now stand at around 98 billion barrels, representing just under 10 percent of total world reserves. places UAE as the fourth largest oPEC producer.
After Saudi Arabia, Iran and Venezuela. Abu Dhabi’s proven oil reserves have doubled in the last decade and now account for 94 percent of the UAE’s total oil reserves. This is the result of significantly increasing the rate of recovery, continuing to identify new finds, especially offshore, and discovering new oil-rich structures in existing fields. ADNOC’s oil production capacity has risen to over 2 million barrels per day, ranking it among the top 10 oil producers in the world. This has been achieved through major investments in a number of recent and ongoing development projects. These include a $300 million project to increase capacity of the onshore Bu Hasa field to 480,000 b/d, a natural gas re-injection project for the onshore Bab field, and a $480 million project to increase capacity of the Ruwais refinery from 145,000 to 500,000 b/d. These part of the overall goal of raising the UAE’s production capacity to 3 million.