Crude oil price and hedging arrangements

(1) For the purposes of this Part, crude oil prices will be determined in accordance with the Petroleum Act, the Petroleum Regulations and the terms of a Production Sharing Agreement contained in Statutory Instrument No. 11 of 1992; and, subject to sub-section (2) of this section, no deductions will be allowed for any losses caused by hedging arrangements unless such arrangements were made with the prior written consent of the Minister given with the approval of the Cabinet. (2) In the case of a Class A Contractor, any existing hedging arrangements pertaining to an Existing Oil Field will be taken into consideration in determining the well-head price for the purpose of computing the petroleum surcharge, but not for any other tax computations.