COMPENSATION
1.1 Total Compensation. Without the prior written consent of Company, the total
compensation and costs under this Contract shall not exceed N/A.
1.2 Basis of Compensation. The compensation payable by Company to Contractor for
the performance of the Services is set out below. A price change may be made to a
catalog that is administered in Company’s electronic system as provided in
Section 21.2(D) of this Contract.
1.2.1 Basic of Compensation
(a) Lump Sum Mobilization Charge
At the commencement of the Contract, the Company agrees to compensate
the Contractor for the mobilization of all equipment and personnel required to
perform the Services from the Contractor’s base to the Company’s designated
base on a lump sum basis.
Except for the above lump sum compensation, there shall not be any
compensation incurred and due to the Contractor for the mobilization of its
equipment and personnel.
(b) Compensation for Equipment
The Compensation for Equipment shall include all cost and expense incurred
by the Contractor to provide and operate the equipment to perform the
Services including, but not limited to, backup-equipment, repair,
maintenance, and spare parts required to ensure safe, efficient, and
continuous operation for the Company.
(i) Daily Standby Rate
The Daily Standby Rate shall commence upon the arrival of the
Contractor’s equipment at the Company’s designated base and shall
cease upon its arrival back at the Company’s designated base from
providing the Service offshore. For the avoidance of doubt, part of
the day shall be considered as full day. The Company shall not be
liable for Daily Standby Rate for unserviceable Equipment. This
applies to equipment that fails during initial surface checks or during
in-hole checks while running in for the first time.
(ii) Daily Operating Rate
The Daily Operating Rate shall commence on the day that the
equipment is utilized to provide the Services until it ceases to
operate. For the avoidance of doubt, part of the day shall be
considered as full day.
In the event that the Daily Operating Rate applies, the Daily Standby
Rate shall not apply.