小陸豐提油程序

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33

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1

CRUDEOILLIFTINGPROCEDURE

byandbetween

CHINANATIONALOFFSHOREOILCORPORATION

JAPEXNEWNANHAILTD.

NEWHUANANOILDEVELOPMENTCOMPANY,LTD.

NMCPEARLRIVERMOUTHOILDEVELOPMENTCOMPANY,LTD.

and

JHNOILOPERATINGCOMPANY

for

THECONTRACTAREA16/06

in

THEPEARLRIVERMOUTHBASIN

of

THENANHAIOFCHINA

CRUDEOILLIFTINGPROCEDURE

TABLECONTENTS

Page

TOC\o"1-1"

1. Definitions

2

2. Duration

5

3. RightandObligations

6

4. ForecastsandReports

6

5. Nomination

6

6. OperatorAcceptanceandRevisionofNomination

7

7. AdjustmentstotheLiftingProgram

9

8. CombinedNominations

10

9. LiftingParty’sConfirmationofNomination

11

10. SubstitutionofNominatedVessel

12

11. TerminalRegulations

13

12. NoticeofReadinessandLaytime

13

13. Demurrage

15

14. TitleandRisk

18

15. EarlyDepartureProcedure(EDP)

18

16. QuantityandQualityDetermination

19

17. ClaimsforQuantityandQualityDifferences

21

18. FailuretoLift

21

19. Notice

24

20. Taxes,Duties,OtherFeesandCharges

27

21. Severability

27

22. AnnualandFinalSettlementofliftingImbalances

27

23. ForceMajeure

31

24. Liability

32

25. Renegotiations

33

26. Assignment

33

27. SettlementofDisputedandApplicableLaw

33

CRUDEOILLIFTINGPROCEDURE

THISAGREEMENTismadethis21stdayofApril,1993among:

CHINENATIONALOFFSHOREOILCORPORATION,acompanyorganizedandexistingunderthelawsofthePeople’sRepublicofChina,havingitsheadquartersdomiciledinBeijing;

JAPEXNEWNANHAILTD.,acompanyorganizedandexistingunderthelawsofJapan,havingitsheadquartersdomiciledinTokyo;

NEWHUANANOILDEVELOPMENTCOMPANY,LTD.,acompanyorganizedandexistingunderthelawsofJapan,havingitsheadquartersdomiciledinTokyo;

NMCPEARLRIVERMOUTHOILDEVELOPMENTCOMPANY,LTD.,acompanyorganizedandexistingunderthelawsofJapan,havingitsheadquartersdomiciledinTokyo;

JHNOILOPERATINGCOMPANY,acompanyorganizedandexistingunderthelawsofLiberia,havingitsheadquartersdomiciledinShenzhen,thePeople’sRepublicofChina;and

WHEREAS:

TheabovementionedcompanieswishtoestablishtherulesandproceduresinregardtothetakingbyeachPartypursuanttothePetroleumContractdatedNovember8,1995,asfromtimetotimeamended(hereinafterreferredtoasthe“PetroleumContract”)ofitsshareofCrudeOilproducedfromtheLufeng13-1OilField.

ThisAgreementsetsforththeproceduresreferredtoinArticle13.6ofthePetroleumContract.

NOWTHEREFOREinconsiderationoftherespectivecovenantsandagreementhereincontaineditisagreeasfollows:

Definitions

Forallpurposesandeaseofreference,thetermsorexpressionsusedinthisAgreementshallhavethemeaningslistedhereunder:

“Affiliate”shallhavethemeaningsetoutinthePetroleumContract.

“AgreedInterestRate”meanssimpleinterestattherateofone(1)percentagepointperannumabovetheLondonInterbankOfferedRateforthree(3)monthU.S.dollardepositsasquotedbytheBankofTokyoLtd.,LondonOfficeat11:00hoursontheduedatefortherelevantpayment.Shouldsuchratenotbepublishedforaperiodofseven(7)consecutivebusinessdaysfromtheduedate,thentheratequotedbyNationalWestminsterBankPlc.Ontheduedateshallbeapplied.Shouldaratenotbequotedforarelevantduedate(suchasaweekendorholiday),thenthefirstquotedratesubsequenttothatrelevantduedateshallbeused.TheAgreedInterestRateshall,however,notexceedthemaximumpermittedbylaw.

“AgreedLiftingprogram”,“AgreedLiftingQuantity”and“AgreedLiftingDate”havethemeaningsascribedinClause6.b.

“Barrel”means42U.S.gallons,measuredatatemperatureof60degreesFahrenheitatsealevelpressure.

“CalendarQuarter”meanswhicheverisapplicableofthefollowingperiod:January1throughMarch31,April1throughJune30,July1throughSeptember30,orOctober1throughDecember31.

“CalendarYeas”meansaperiodoftwelve(12)consecutivemonthsbeginningonthefirstdayofJanuaryandendingonthefollowingthirty-firstdayofDecemberinthesameyear,exceptasmodifiedunderClause22“AnnualandFinalSettlementofliftingImbalances”ofthisAgreement.

“CNOOC”meansChinaNationalOffshoreOilCorporation.

“CommencementDate”meansthefirstdayonwhichproductioncommencesfromtheLufeng13-1OilField.

“CRISTAL”meanstheagreemententitled“ContractRegardingandInterimSupplementtoTankerLiabilityforOilPollutiondatedJanuary14,1971”asamendedfromtimetotime.

“CrudeOil”meansanyliquidhydrocarbonproducedandsavedfromtheLufeng13-1OilFieldandwhichisstableorhasbeenstabilizedand,ifnecessary,otherwisetreatedtorenderitsuitableforliftingandtransportationinvesselsinnormaluseasCrudeOilcarriers.

“Curtailment”meansareductionorshut-inofCrudeOilproductionasaresultofstoragelimitations.

“Day”meansanydaybetweenthehoursof0001and2400localChinatime.

“Entitlement”ofaPartyinrespectofanyperiodoftimemeanssuchParty’ssharepursuanttoArticle13ofthePetroleumContractofthecumulativeproductionofCrudeOilfromtheCommencementDatetotheendofsuchperiod,lessthetotalquantityifCrudeOilliftedbysuchPartypriortothebeginningoftheperiodinquestion.Suchshareshallinclude,inthecaseofCNOOC,“shareoil”oftheChinesesideandCrudeOiltakeninkind,throughCNOOC,bytherelevantauthoritiesoftheChineseGovernmentinpaymentoftheConsolidatedIndustrialandCommercialTaxandRoyalty.

“ETA”meanstheestimateddateandtimeofarrivalattheTerminalofthevesselinquestion.

“ForceMajeure”hasthemeaningascribedinClause23.

“LiftingDateRange”hasthemeaningascribedinClause6.c.

“NoticeofReadiness”meansthenoticereferredtoinClause12.b.

“Operator”meansJHNOilOperatingCompany,initsroleoftheOperatorasdefinedinthePetroleumContract,orifCNOOCtakesoveroperationoftheLufeng13-1OilFieldpursuanttoArticle8.7ofthePetroleumContract,CNOOC.

“Overlift”meansthecumulativenetamountliftedbyanyPartyinexcessofitsEntitlementand“Overlifter”hasacorrespondingmeaning.

“Party”meansanyoneofthesignatoriestothisAgreement(otherthanJHNOilOperatingCompany,whichisreferredtointhisAgreementas“Operator”),itssuccessorsand/orassignees.

“ProportionateInterest”meansaParty’sparticipatinginterestintheLufeng13-1OilField.

“Terminal”meansthestoragevessel,named“NanhaiShengkai”(oranyreplacementforit)mooredoffshoreattheLufeng13-1OilFieldfacilitiesforthepurposeofstoringallCrudeOilproducedfromsaidfacilitiesandforloadingCrudeOilunderthisAgreement.

“TerminalRegulations”meansregulationsestablishedbytheOperatorformooring,loading,andunmooringofvesselsattheTerminalastheymaybeamendedfromtimetotime.IfsuchregulationsconflictwiththisAgreement,thisAgreementshallbedeemedamendedaccordingly.

“TOVALOP”meansTankerOwnersVoluntaryAgreementconcerningLiabilityforOilPollutionincludingTOVALOPsupplementtheretoeffectiveFebruary20,1987,asfurtheramendedfromtimetotime.

“Underlift”meansthecumulativenetamountbywhichthequantitiesliftedbyanyPartyfallsshortofitsEntitlementand“Underlifter”hasacorrespondingmeaning.

ReferencestoClausesaretoclausesofthisAgreement.

Duration

ThisAgreementshallbeeffectiveasofJuly1,1993andshallcontinueineffectuntilcessationofproductionfromtheLufeng13-1OilFieldandthereafteruntilafinalaccountinghasbeenmadebetweentheParties.

RightandObligations

EachPartyshallhavetherightandtheobligationtoliftandseparatelydisposeofitsEntitlementofCrudeOil.

ForecastsandReports

Bythefirst(1st)DayofeachmonththeOperatorshallfurnishtoeachPartyaforecastoftherateandamountofCrudeOilProduction,forthethreesucceedingmonths,andaforecastofeachParty’sEntitlementasatthebeginningofeachofthosemonths.

Bythefifth(5th)DayofeachmonththeOperatorshallfurnishtoeachPartyareportofthepriormonth’sCrudeOilproduction,liftings,andclosinginventory.

Nomination

Bythetenth(10th)Dayofeachmonth,eachPartyshallnominatetotheOperatortheirproposedfirmliftingprogramforthesucceedingmonthandtheirprovisionalliftingprogramforthetwomonthsthereafter.TheProvisionalliftingprogramisforinformationpurposesonlyandisnottobeinterpretedasgivinganyPartyanyrightsorobligations.Suchnominationsshallbemadeonanevenlyspreadbasis.ThequantitynominatedforanyCalendarQuarterbyanyPartyshallnotexceedanysuchParty’sforecastedEntitlementattheendofthatCalendarQuarter.

Theliftingprogramshallinclude:

thenameofthevesselorTBN(tobenominated);

theproposedliftingquantitybyvesselexpressedinBarrels;and

athree(3)Dayliftingdaterange:one(1)Dayimmediatelypriorandone(1)Dayimmediatelyaftertheexpecteddateofarrival.

OperatorAcceptanceandRevisionofNomination

Bythefifteenth(15th)Dayofeachmonth,Operatorshallcompileaconsolidatedliftingprogram(firmforthesucceedingmonthandprovisionalforthetwomonthsthereafter)andnotifythePartiesoftheconsolidatedliftingprogram.TheOperatorshallreasonablyendeavortoaccommodatetheproposedliftingprogramofeachParty.IncompilingtheconsolidatedliftingprogramtheOperatorshallfollow,amongstothers,thefollowingprinciples:

IntheeventtheParties’nominationspursuanttoClause5causeaconflictintheconsolidatedliftingprogram,theOperatorshallpromptlyconsultwiththePartiesinanefforttoresolvethesituation.IftheOperatorcannotreasonablyresolvethesituation,thePartyhavingthelargestforecastUnderliftonthedateofconflictasdeterminedbytheOperatorshallbegivenpriority.

IftheoperatorforanyreasonrejectsanominationbuthasavailableforliftingalesseramountoradifferentLiftingDateRangeorboth,thentheOperatorshallofferthePartywhosenominationhasbeenrejectedtheopportunityofacceptingtheavailablerevisions,providedthattheserevisionsdonotprejudiceotheracceptednominations.IfmorethanonePartyhasitsnominationrejectedorifanyPartyofferedarevisiondoesnotacceptit,thensuchoffershallbemadetothePartieswhosenominationshavebeenrejectedinturn,commencingwiththePartywiththelargestforecastUnderliftatthetimeoftheproposedlifting,thenthesecondlargestforecastUnderlift,andsoon.

If,intheopinionoftheOperator,thequantitiesnominatedbythePartiedwouldresultinaCurtailment,theOperatorshallconsultwiththePartiestoendeavortoadvanceand/orincreasethequantitiesnominatedtoavoidaCurtailment.Shouldtherebeaninsufficientincreaseinquantitiesnominated,thentheOperatorshallnotifythePartyhavingthelargestforecastUnderliftatthebeginningoftheforecastCurtailmentperiodoftheminimumquantityrequiredtobeliftedbysuchPartyinthatmonthinordertoavoidaCurtailment.ThePartysonotifiedshallliftthequantityspecifiedbytheOperatorbutshallnotberequiredtoliftanyamountinexcessofitsUnderlift.IfsuchPartywouldinconsequenceberequiredtoliftmorethanoneadditionalcargoinanymonthorifthequantityrequiredtobeliftedtoavoidtheCurtailmentexceedssuchParty’sUnderliftandthePartydoesnotagreetolifttheexcessquantity,thenthePartyhavingthesecondlargestUnderliftshallberequiredtoliftthesecondcargo,andsoon.

Subjecttotheotherprovisionscontainedherein,ifoperationalcontingenciesareidentifiedeitherbeforeorafteranAgreedLiftingProgramhasbeendeveloped,whichresultinCurtailment,andthePartiescannotagreeuponanacceptablemeansofavoidingsuchCurtailment,theOperatormaydeveloporrevisealiftingprogramwhichwouldallowaParty(s)toOverliftitsEntitlementuptotheminimalamountnecessarytoavoidsuchCurtailment.

Theconsolidatedliftingprogramforthesucceedingmonth,compliedbytheOperatorinaccordancewithClause6.a.,shallbedeemedthe“AgreedLiftingProgram”.Inthisprogram,thequantityofCrudeOilscheduledforeachseparateliftingofaPartyduringthesucceedingmonthshallbethe“AgreedLiftingQuantity”andthedateforliftingofsuchquantityshallbethe“AgreedLiftingDate”.

EachAgreedLiftingDateshallbeincludedinarangeofone(1)Daybeforesuchdateandone(1)Dayaftersuchday,makingarangeofthree(3)Daysinall(“LiftingDateRange”).

AdjustmentstotheLiftingProgram

IfsubsequenttotheOperator’snotificationoftheAgreedLiftingProgramforagivenmonth,aPartyexpectitsliftingnamedinsuchprogramtofalloutsideoftheapplicableLiftingDateRange,suchPartyshallpromptlynotifytheOperatorandtheOperatorshallattempttorearrangetheAgreedLiftingProgram.AnymodificationtosuchprogramthatismutuallyacceptabletothePartyandtheOperatorshallbecomepartoftheAgreedLiftingProgram.

EachPartyshalluseallreasonableeffortstoadheretotheAgreedLiftingProgramasestablishedhereunder.However,anyPartymayrequestchangestoitsquantity(s)intheAgreedLiftingProgram(exceptachangewhichresultsinaquantitywhichexceedsitsforecastedEntitlementattheendoftheCalendarQuarterinwhichtheAgreedLiftingProgramapplies),andtheOperatorshallstrivetoeffectsuchchangestotheextentpracticablewithoutinterferingwiththeliftingprogramofanyotherPartyunlesstheapprovalofthatotherPartyisobtained.

IftheOperatordeterminesthatrevisionstotheAgreedLiftingProgramarerequiredforanyreason,includingbutnotlimitedtochangesintherateofCrudeOilproductionorachangeinberthstatus,thentheOperatorshallpromptlyconsultwiththePartiesinanefforttodevelopamutuallyacceptablerevisedAgreedLiftingProgram.IfthePartiedcannotagreeonanacceptablerevisedAgreedLiftingProgram,theOperatorshallrevisetheprogramasmaybereasonablynecessary.

ThePartiedshallremainfreetoexchangeliftingonamutuallyacceptablebasis,providedtheOperatorhasfinalapprovaloftheresultingliftingprogram.

OnceanAgreedLiftingProgramhasbeenestablishedpursuanttothetermshereofanddistributedtotheParties,theOperatormayacceptadditionalliftingsonafirst-comefirst-servedbasis,providedthevolumeofCrudeOilinvolvedandtimewithwhichtoberth,loadandunberthavesselareavailablewithoutaffectinganyotherParty’srightswiththeAgreedLiftingProgramandfurtherprovidedthatinconsequencetheliftingPartiesdonotexceedtheirforecastedEntitlementattheendoftheCalendarQuarterinwhichtheAgreedLiftingProgramapplies.

CombinedNominations

TwoormorePartiesmay,subjecttotheirgivingtheOperatorandotherPartiesnoticeonorbeforethefirst(1st)Dayofthemonthinwhichtheyintendtomakecombinednominations,makecombinednominationsforoneormoreliftings.ThecombiningPartiesshallnotifytheOperatorintheircombinednomination,whichproportionofthecombinednominationistobeallocatedtoeachcombiningParty.Partieswhichhavebeenmakingcombinednominations,onthebasisofanoticeforcombinednominationsuntilfurthernotice,shallgivenoticetotheOperatorandotherPartiesonorbeforethefirst(1st)Dayofthemonthinwhichcombinednominationswillbediscontinued.ForthepurposeofresolvingconflictingnominationsunderClause6.a.(1),acombinednominationshallbedeemedtobeonenominationandtheaggregateofUnderliftslessOverliftsforallPartiescombininginthatnominationshallbecalculatedandattributedtothecombinednomination.

LiftingParty’sConfirmationofNomination

Notlaterthanseven(7)Dayspriortothefirst(1st)DayoftheapplicableLiftingDateRange,theliftingPartyshallprovideinwritingtotheOperatorthevesselname,ETA,size,flag,quantitytobeliftedbythevesselandsuchotherdataastheOperatornayreasonablyrequire.Beforenominatingavessel,aPartyshallcheckthespecificationsofthevesseltoensurethatitconfirmswiththesizelimitsandotherspecificationsoftheTerminalRegulationsandthisAgreement.AllnamedvesselsaresubjecttoclearancebytheOperatorwithinone(1)DayafterthereceiptbytheOperatorofthedatedescribedabove.Acceptanceofavesselshallnotconstituteacontinuedacceptanceforsubsequentlifting.Theoperatorshallnotincuranyliabilityindenyingclearance.

TheoperatorshallhavetherighttorefusetomoreanyvesselattheTerminalwhichhasnotbeenclearedbytheOperatororwhichhasbeenclearedbutonarrivalattheTerminal,intheopinionoftheOperator,doesnotconfirmwiththespecificationsasdescribedinClause9.a.Theoperatorshallnotincuranyliabilityinrefusingtomoor.

Notlaterthanfive(5)Dayspriortothefirst(1st)DayoftheapplicableLiftingDateRange,theliftingPartyshallfurnishinwritingtotheOperatorfulldocumentationinstructionsregardingtheliftingproposedforthevessel,themakeupanddestinationofthebillorbillsoflading,andanyotherinformationnecessaryfortheOperatortoeffecttheloadingofthevessel.

SubstitutionofNominatedVessel

AliftingPartyshallbeentitledtosubstituteanothervesselforanyvesselalreadynamedbytheliftingPartyprovidedthat:

thesubstitutevesselisclearedasrequiredunderClause9.a;

noticeofthenameofthesubstitutevesselandofanychangesininformationordocumentationinstructionsprovidedunderClause9.aisgiventotheOperatornolessthanthree(3)DaysbeforeeithertheexpecteddateofarrivalofthesubstitutevesselattheTerminalorthefirst(1st)DayoftheapplicableLiftingDateRange,whicheveristheearlier;and

Allotherconditionsapplicabletotheoriginalvesselshallbeapplicabletosuchsubstitutevessel,unlessotherwiseagreedbytheOperator,suchagreementnottobeunreasonablywithheld.

TerminalRegulations

EachPartyshallensurethatMasters,onbehalfoftheownersandcharterersofvesselsloadingCrudeOil,priortomooring:

enterintoanagreementwiththeOperatortocomplywiththeprovisionsoftheTerminalRegulations;

provideevidencetotheOperatorthatthevesselisenrolledinTOVALOPandmeetsthefinancialrequirementsofTOVALOPandtheCivilLiabilityConvention,1969asamended;and

provideevidencetotheOperatorthatthevesselhasinforcesuchotherinsuranceandcertificatesasarerequiredofowners,charterersorMastersofvesselsunderthelawsofthePeople’sRepublicofChina.

EachPartyshallensureandprovideevidencetotheOperatorthatcargoes,whichitnominatesforlifting,areownedordeemedownedbyamemberofCRISTAL.

NoticeofReadinessandLaytime

EachPartyshallensurethatninety-six(96),seventy-two(72),forty-eight(48),andtwenty-four(24)hoursinadvancetheMasterofthevesselshallnotifytheOperatoroftheETAattheTerminal.Intheeventthatavessel’sdeparturefromapreviousporttakesplacelessthanninety-six(96)hoursbeforetheETAatthenormalanchorageareafortheTerminal,thePartiesshallarrangefortheETAtobegivenondeparturefromsuchpreviousport.Shouldtheexpectedarrivalhourchangebymorethanthree(3)hoursfollowingthetwenty-four(24)hourarrivalnotice,theMasterofthevesselshallpromptlynotifytheOperatorofthenewarrivalhour.FailurebytheMasterofthevesseltogivenoticetwenty-four(24)hoursinadvanceofarrivalshallincreasetheOperator’sallowedlaytimebyanamountequaltothedifferencebetweentwenty-four(24)hoursandthenumberofhourspriortoarrivalofsuchvesselthatnoticeoftheexpectedarrivalhourisreceived.

EachPartyshallensurethatwhenthevesselhasarrivedatthenormalanchorageareafortheTerminalandhascompliedwiththeTerminalRegulationsandisdeemedreadyforloadingbythevessel’sMasterorhisrepresentative,theMasterorhisrepresentativeshalltendertotheOperatoraNoticeofReadinesstoload(berthornoberth).

SubjecttotheotherprovisionsofthisAgreement,laytimeshallcommenceatthetimesasstatedinthefollowinginstancesandineachcaselaytimeshallceaseuponthedisconnectionoftheloadinghosefromthevessel’sloadingflange:

IfthevesseltendersNoticeofReadinessduringitsLiftingDateRange,Laytimeshallbeginupontheexpirationofsix(6)hoursafterthetenderingofNoticeofReadinessorwhenthevesselisallfastinberth,whicheveroccursfirst;

IfthevesseltendersNoticeofReadinessbeforeitsLiftingDateRange,laytimeshallnotbeginuntil0600hoursonthefirst(1st)DayoftheLiftingDateRangeunlesstheOperatorsallowsthevesseltoberthandloadingtostartearly,inwhichcaselaytimeshallbeginatcommencementofloading;

IfthevesseltendersNoticeofReadinessafteritsLiftingDateRange,theOperatorshallallowthevesseltoberthassoonasisreasonablyconvenienttotheOperatorandlaytimeshallbeginatcommencementofloading;

IftwoormorevesselstenderNoticeofReadinessaftertheirrespectiveLiftingDateRange,thevesselsshallbeberthedintheordertheNoticesofReadinesswerereceivedbytheOperatorandlaytimeshallbeginatcommencementofloading;and

Avesselrequiringreberthingasaresultofaninterruptionintheloadingshallhavepriorityoverallothervesselsunlesstheloadingwasinterruptedbyreasonofthevessel’sdeficiency,inwhicheventothervesselstenderingNoticeofReadinesswithinorbeforetheirLiftingDateRangeshallhavepriority(inthecaseofvesselstenderingbeforeasifNoticeofReadinesswastenderedat0001hoursonthefirst(1st)dayoftheirLiftingDateRange).

Demurrage

Operatorshallbeallowedthirty-six(36)hoursaslaytimewithinwhichtocompleteloadingacargoofCrudeOil.TotheextentCrudeOilisavailable,theOperatorshallendeavortoloadthevesselwithaquantitywhichiswithinplusorminusfive(5)percentoftheAgreedLiftingQuantity,attheliftingParty’soption.Anytimeconsumedduetoanyofthefollowingshallnotcountasusedlaytimeortimeondemurrage:

delaytothevesselinregardingorclearingherberthorinthecommencementorcompletionofloadingnotwithinthereasonablecontroloftheOperator,includingbutwithoutlimitingtheforegoing,delayinreachingorclearingberthorinthecommencementorcompletionofloadingcausedbyadverseweatherorseaswhicheitheraffectstheliftingParty’svesseldirectlyorindirectlybecauseofdelaytoothervessel(s)whicharrivedpriortotheliftingParty’svessel’sarrival,providedthatthedelaytotheothervessel(s)wasalsocausedbyadverseweatherorseas;

breakdownorinabilityofthevessel’sfacilitiestoreceivethecargowithinthelaytimeallowedtheOperator;

failuretoloadordelayinloadingattributabletooneormoreoftheowner,agent,charterer,Master,officersandcrewofthevessel,thevessel’sagent,liftingParty,tugboatsorpilots;

delayduetofaultofvesseloritsMasterorcrewhandlingorshiftingofballast,bilges,slopsorothersubstance(s),orbunkeringnotaccomplishedconcurrentlywithcargoloadingoperations;

delayduetoawaitingcustomsandimmigrationclearanceofthevesselorfreepratique;

vesselproceedingfromanchoragetoallfastatloadingberthandvesselliningup;

delayinorsuspensionofloadingorderedbytheOperatorsbecauseoftheliftingParty’sfailuretocomplywiththerequirementsofthisAgreement;and

ForceMajeure(otherthaneventswhichqualifyforone-halfdemurragepursuanttoClause13.c).

Exceptashereinafterprovided,totheextentthatusedlaytimeattheTerminalexceedsallowedlaytime,theOperatorshallpaydemurragetotheliftingPartyupontheOperator’sverificationoftheliftingParty’sclaimtherefor.Foralvesselsowned,bareboatchartererortimechartererbyaliftingPartyoranAffiliateofaliftingParty,suchdemurrageshallbecomputedonanhourlybasisorproratathereofinaccordancewithNewWorldwideTankerNominalFreightScale(“NewWorldscale”),orsuchgenerallyacceptedscaleasmayreplaceNewWorldscale,forthesizevesselinquestion,multipliedbyAverageFreightRateAssessment(“AFRA”)publishedbytheLondonTankerBrokersineffectonthedateofcommencementofloading.Forallvoyage-charteredvessels,demurrageshallbetheactualdemurragepayablepursuanttotheircharterparties.

TheOperatorshallpaydemurragefordelaycausedbystrike,laborstoppage,accident,fire,explosionormechanicalfailureinthecourseofnormaloperationoftheTerminalorloadingequipmentwhichareundertheoperationalcontroloftheOperator,butonlyatone-halftheratedeterminedinaccordancewithClause13.b.

TheOperatorsandnon-liftingPartiesshallnotbeliableforanyotherdamages,direct,indirectorconsequential,duetodelaysofthevesselarisingoutoftheoccurrencewhichcreatedthedemurrageliability.

DemurrageclaimsshallbeaccompaniedbysuchsupportingdataandotherdocumentationastheOperatormayreasonablyrequest.Suchclaimsshallbemadeandsoaccompaniedwithinninety(90)daysfromthedateofthecompletionofloadingortheclaimsshallbedeemedtohavebeenwaited.Provisionalclaimsinreasonabledetailshallbesufficienttocomplywiththisparagraph.

AlldemurragepaidpursuanttothisAgreementshallbeconsideredpartoftheoperatingcostsreferredtointhesecondsentenceofArticle12.1.3ofthePetroleumContract,andshallbechargeabletotheJointAccountdefinedinArticle2oftheAccountingProcedure.

TitleandRisk

TitletoandriskoflossofCrudeOilliftedshallpasstotheliftingPartyattheexportvessel’spermanentloadingflange.

EarlyDepartureProcedure(EDP)

UnlesstheliftingPartyrequestsotherwiseatthetimeitprovidesdocumentationinstructionsforitsliftingpursuanttoClause9.c,theEarlyDepartureProcedure(EDP)shallapplyattheTerminal,underwhichthefollowingdocumentsshallbetransmittedtotheconsigneeviathevessel’sMaster:

Master’srequestforEDP,onecopy;

oneincompletenon-negotiablecopyofthebillofladingplacedabroadforMaster’scompletionfromradioshorefigures;

samplesandre