PZ 5191/38 'Iraq Petroleum Co's. oil agreement with Iraqi Govt' [‎18r] (35/64)

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Company Limited at the date of this Convention, but if the
specification of the Company’s oil is not comparable therewith
then the applicable criterion shall be that the profit yielded by the
Company’s oil f.o.b. seaboard terminal shall not fall more than
ten per centum below the profit yielded to ‘Iraq Petroleum Com
pany Limited by any oil which that Company may be then export
ing from its own defined area. In applying this provision, the
profit of the Company and that of ‘Iraq Petroleum Company
Limited shall both be ascertained by the method prescribed in
Article 11 (3) (b) of this Convention in the calculation of
fluctuations of royalty.
ARTICLE 13.
Any sum of money payable under this Convention and
expressed to be gold shall be calculated at the London price of
fine gold on the day on which the payment is due to be made, one
gold pound being regarded as the equivalent of 7.322382 grammes
of fine gold (123.27447 grains standard).
ARTICLE 14.
(1) The Government shall be entitled free of cost at well-head
to twenty per centum of all petroleum won and saved by the
Company and in respect of such twenty per centum no royalty
shall be payable.
The Government shall be entitled to take the whole or any
part of the said twenty per centum in kind subject to the
provisions of sub-section 2 of this Article and any part of the said
twenty per centum not so taken in kind shall be sold by the
Government to the Company and purchased by the Company at
a fair free market price to be governed by the fair free market
price of petroleum of a similar quality prevailing at the time at
well-head in Roumania. If in fact free market does not exist in
Roumania the fair free market price shall be ascertained by
agreement between the Government and the Company or, failing
agreement, by arbitration in accordance with Article 41 of this
Convention.
(2) The Government may at any time notify the Company
that it will take the whole or a specified part of the said twenty
per centum in kind. After the expiration of twelve months from
the receipt of the notice the Company shall deliver the required
amount at well-head and shall continue such delivery until the
Government by twelve months previous notice in writing shall
cancel or vary the arrangement provided that no such arrange
ment made may be cancelled or varied until it shall have subsisted
for at least three years.
Delivery of the amount taken in kind shall be regulated so
as to maintain as near as may be the proper proportion between
the percentage to be taken and the total pioduction.
The Government shall not export or sell for export in crude
or refined form any part of the petroleum taken in kind.