Hydrocarbons often extend across multiple license concessions areas or even international boundaries. To address this, unitisation serves as a mechanism for consolidating the development of petroleum and gas reservoirs by a single operator, known as the Unit Operator. This involves utilizing shared production facilities under an agreement known as a Unitisation Agreement. The primary objective of unitisation is to maximize the recovery of hydrocarbons by all parties involved. Successful unitisation necessitates a comprehensive understanding of the field, which justifies the need for a Unitisation Agreement among interested parties. The Unitisation Agreement aims to ensure equitable distribution of participating interests and minimize any adverse effects on those interests during the production process. Additionally, the agreement helps avoid potential legal complications. It is crucial to implement unitisation early in the field's lifespan, preferably before development, as it allows owners to negotiate for a larger share of the field or its resources.

Course Objectives:

At the end of this training course, you will learn:

International oil and gas legal and technical principles used in unit operations
The key legal and commercial issues that arise in a unitization
Issues to consider when preparing a UUOA for a specific project
Specific issues to be considered in a cross‐border unitization
Provisions aimed at limiting the liability of adjoining operators/contractors

Who Should Attend?

This course is suitable for a wide range of professionals but will greatly benefit:

Contract/Agreement Managers/Specialists
Commercial Manager
Legal Counsels/Advisors
Commercial Lawyers
Negotiators
Project Owners
Project Directors/Managers
Project Engineers/Planning Engineers
Operation Managers
Contract/Agreement Managers/Specialists
Financial Controllers/Finance Managers
Business Development Managers

Course Outlines:

What is unitization?

The development of the concept of unitization
Different approaches to unitization
Terminology in unitization agreements
Pooling and Unitization, Voluntary & Mandatory
Order of Unit Operation of Pool
Multiple Leases

Documenting unitization

Where the unitization agreement fits within the upstream contractual regime
The need for a pre-unitization agreement
Important provisions of a pre-unitization agreement
The essential elements of a unitization agreement
The structure of a unitization agreement

Key concept affecting Unitization Agreements

Determination of the initial track participation/unit interest
Change in the unit area
Units and Unit Operating Agreements
Redetermination
How does the redetermination process work in practice?
The redetermination process – the role of the expert

UUOA - Unit Operating Agreements & Unitization

Connecting the dots between Unitization and UOA?
Unitization in practice
Government approval
Important Pits falls to avoid in UOAs

Key issues in UUOAs

A One-Size Fits All UUOA?
Tract participation,
Determination and redetermination provisions,
Role of the expert
Unit Operating Committee Voting Thresholds
Default of Parties
Specific Unitization Issues for LNG Export Projects

Transboundary unitization and Boundary Disputes

Examples, including the Netherlands, UK and Norway, Nigeria, Saudi Arabia, and Kuwait
Transboundary developments
Resolving Transboundary Disputes
Case Studies on Transboundary Disputes

Filters