As you Wish

Standard Tie-In Agreement

The third party is expected to bear the costs of designing, supplying and executing the tie-in. In addition, an adequate liability and compensation scheme is required, in which the third party compensates Total for all losses (except in case of intentional misconduct by Total). The standard conditions of Alwyn Platform will be broadly similar to those in the Frigg area. For competitive reasons, a monopoly may use forced purchases or tie-in sales to make sales in other markets where it is not dominant and to prevent competitors from selling in those markets. This may limit consumer choice for buyers who wish to purchase a product (“link”) by requiring them to purchase a second product (“linked”). As a general rule, the “linked” product may be a less desirable product that the buyer may not purchase, unless he is obliged to do so or it is preferable to receive from another seller. If the seller offering the related products has sufficient market power in the “binding” product, these agreements may violate the law of the agreements. The tariff is generally indexed annually on the basis of a standard index published by the Central Statistics Office. Total would normally perform engineering and modification work for such devices on behalf of new users.

Ownership of the offshore link or additional equipment would be transferred to TOTAL E-P UK Limited once the work is completed. The Model Tie-In agreement is designed to deal with activities related to connecting a production source, for example. B from a drilling source to a third-party facility. With regard to costs, liability and compensation, the intention is to maintain the operator as a whole. The operator retains control of its facilities during compilation activities. The connection is made at the manufacturer`s expense, risk and cost. The Model Tie-In agreement uses standard AJVA model formatting and standard APV definitions, clauses and items. The total flow standard is applied to all entries and exits. Orifice plate systems are generally specified, but ultrasonic (or other) measurement instruments are taken into account when it can be shown that equivalent power can be achieved. To provide a fixed service, a capacity reservation is required. Typically, the tie-in-party will have provided a field life to be included in the commercial contract. For each year of the hydrocarbon contract (as of October 1st), the tie-in party confirms its capacity requirements 12 months in advance.

There will be some flexibility to change the life of the field profile in this process. The link law is changing. Although in the past the Supreme Court has treated some linkage points as illegal in itself, the preliminary bodies have begun to apply the more flexible “rule of reason” to assess the competitive impact of tied sales. The cases deal with specific framework conditions, but the general rule is that binding the products raises questions of cartel law when they restrict competition without offering benefits to consumers. Many companies had begun to enter into agreements, but the terms between the various agreements were inconsistent. This is the ineffectiveness of reviewing agreements and comments, so the industry has asked the AJV to develop a model agreement. Maintenance times can be discharged as “sending or payment” and the corresponding total liability for non-delivery of services. The joint offer of products as part of a package can benefit consumers who like to buy several items at the same time. The joint product offering can also reduce the manufacturer`s costs for packaging, shipping and advertising products. Of course, some consumers prefer to buy products separately and, if they are only offered as part of a package, it may be more difficult for consumers to buy only what they want. In addition, a tariff is applied to reflect a fair risk-return balance for the services to be provided. This depends, among other things, on the level of service, the quality of hydrocarbons, opportunity costs and modification requirements.