OIL AND GAS E&P UNITIZATON (Workshop)

OIL AND GAS E&P UNITIZATON PROCESS

Course Content:

1. Origination & Concept of Unitization:
   • Geologic & Petroleum Engineering of Sub-Surface Formation
   • Simple Case Unitization
   • Multiple Independent Reservoirs & Fields
   • Voluntary & Compulsory Unitization
2. Geologic & Economic Trigger for Unitization
   • The Prevailing Factor (s)
   • Mandatory or Non-Mandatory Notification of Field Extensions
   • Field Extension in Bidded & Non-Bidder Areas
3. Geologic & Petroleum Engineering Field Data
   • Reservoir Data, Dynamics & Features: An Asymmetrical Information Among Parties
   • Reservoir Data Disinformation Among Parties
   • Reservoir Data Correlated Information
   • Uncertainty & Risk Aversion in Unitization
4. Unitization Process
   • Unit Agreement among parties
   • Host Govt. & Lessee or Lessees
   • Lessees among themselves (IOCs/Indigenous Oil Companies)
   • Application for Unit Agreement
   • Filing & Approval of Documents with Host Govt.
   • Qualifications of Unit Operator
   • Modalities for Designation of Successor Operator
   • Modalities for Change Of Unit Operator by Assignment
   • Timing of Unit Agreement:
   • Imposition Of Unitization by Host Govt
   • Foreseeing & Forestalling Redetermination
   • Investment Hold-Up
   • National Unique Provisions on Aspects of Unitization e.g. Joint Exploration & Drilling under PSC.
   • Parties to Unit
   • Company Heterogeneity
   • Idea No. of Parties to the Unit
   • Procedures & Approval Authority in Different Countries
   • Farm-Outs & Acquisition Agreements
   • Collective Decision Making through UUOA
5. Unit Agreement Structures (UUOA)
   • AIPN’s UUOA Model
   • Cross-Border Issues include Enforceability of agreement.
   • Withdrawals
   • Defaults
   • Contract Revocation Clauses
   • Redetermination: the process, Limitations & Consequences
   • Third Party Rights
   • The Pugh Clause & the Rights of Lessons (or Host Govt.)
6. Participation Formula

• • Pre-Unitization Costs
  • Additional Exploration, Appraisal & Development Plan
  • Considerations for: Blocks resulting from different bidding rounds
  • Varying Reservoir Rocks & Fluids
  • Varying Reservoir Depth
  • Relationship Between Allocated Reserves & Amount Invested in Reserve (Not Necessarily same for all concessionaries) (Equalization)