The Petroleum Revenue Tax (Nomination Scheme for Disposals and Appropriations) Regulations 1987

Nominal volume

9.—(1) This regulation prescribes the manner in which the quantity of oil which it is proposed to deliver under the contract of sale, or to supply or relevantly appropriate, is to be expressed for the purpose of specifying the nominal volume with respect to a proposed transaction.

(2) The quantity of oil may be expressed for that purpose—

(a)as a specific volume plus or minus a tolerance expressed as a percentage of that specific volume; or

(b)as the whole, or as a specified fraction, of the participator’s equity production for the proposed delivery month; or

(c)in the circumstances described in paragraph (3) below, by a statement to the effect that the quantity of oil which it is proposed to deliver under the contract of sale is a volume of oil equivalent to the capacity, or a specified fraction of the capacity, of any of the vessels referred to in sub-paragraph (b) of that paragraph the capacities of which are specified in the statement, plus or minus a tolerance expressed as a percentage of that volume; or

(d)in the case of a proposed sale which is the subject of a composite nomination, in the same manner as the quantity of oil to be delivered in each month under the contract of sale is expressed in that contract.

(3) The circumstances described in this paragraph are—

(a)that the proposed transaction is in respect of oil to be delivered or appropriated from a field situated in the territorial sea of the United Kingdom or a designated area;

(b)that oil of the kind in respect of which the nomination is made is transported from that field to the United Kingdom by means of two or more vessels which are customarily used for that purpose;

(c)that the capacities of those vessels are not all the same; and

(d)that, at the time when the nomination is made, the participator does not know which of those vessels will be used to transport the oil to which the nomination relates.