THE PETROLEUM Experience oF ABU DHABI GAS products
THE PETROLEUM Experience oF ABU DHABI GAS products, it does not realize any profits which would be sub Common taxation. Unlike ADGAS, which pays income tax on its reven realized through the sale of its products, LPG an income tax. Instead, the Abu Dhabi income tax is appear which accordance with the Departmental Letter, on each participating mech GAsco. If, however, GASCo ere to become a profit. making specific nee entity, it too would be subject to taxation.
GASCO, with its multinational partners and staff, has b Far m model of smooth operation and efficient performance, fly sections repaying all of its ADIA loans by 1992 market to specific describes Gas Marketing: LPG and LNG Sales Contracts set forth the accep Gas sales contracts are in many ways unique. They have evolved to reflect the markets in which their commodities are traded a measure in certain cases, to shape those markets. During this evolution negotiation es contracts have developed unique characteristics process, gas processin in response to market requirements. Thus, a study of contractual the only terms can shed light not only on the content of individual those that contracts, but on the market as a whole. For this reason, the major and the te provisions of both LPG and LNG sales contracts will be reviewed Althou highlighting those provisions that are truly unique as a result of related w market demand.
The seller Before embarking on this discussion, it should be noted that the specifica information presented herein will, by necessity, be somewhat purchase general. A specific review of each provision and its origin would intended such an a study the scope of this chapter. In many way is not necessary as all contracts are tailored a productio seller m fit specific market circumstances and the individual needs of specifica particular buyer and seller.
Therefore, the intention is to highlight disclaim significant contractual provisions and relate Abu Dhaoi feature o experience in dealing with those provisions. LNG provide a subject we evolved raided and characteristics contractual individual the major reviewed result of ABU DHABI’s GAS Experience Common Features of LPG and LNG Contracts G and LNG contracts share a number of standard terms, many of which appear in virtually all sales contracts. These terms provide the mechanism for the sales relationship and are not product specific. Their content, however, is usually modified to suit the needs of the individual parties and the gas market. Far more important in the context of this study are thos sections of the sales contracts that rely on the product and its market to shape their content. The most obvious of product- specific terms are naturally, contained in the section which describes the product itself. Typically, this section will not only set forth the chemical components of the LPG or LNG, but also the acceptable level of impurities and the testing methods used to measure them.
Quality specifications are rarely the subject of olutionary negotiation, however, as a given gas reserve and the related processing cannot be tailored to individual client needs. Generally the only differences in these terms in an LPG or LNG contract are those that recognize the chemical differences between the products and the testing methods used Although quality specifications may not be subject to negotiation, related warranties occasionally are.
LPG and LNG contracts oblige the seller to provide LPG or LNG that conforms to the quality specifications contained in the contract. Typically, it is the ed that the purchaser that must decide if the specified quality is suitable for the somewhat intended purpose, as only the purchaser is familiar with its production facilities and related fuel needs. For these reasons, the gin wou seller may require that the contract contain a provision that any ways specifically disclaims any warranty related to the product. Such a tailored disclaimer of warranty is standard in LPG contracts and a prominent of highligh feature of ADNOC’s LPG contract. LNG purchasers have, in certain cases, looked to the seller to Dhabi provide assurances related to product fitness and a corresponding.