OIL AND GAS E&P UNITIZATON PROCESS
Course Content:
- Origination & Concept of Unitization:
- Geologic & Petroleum Engineering of Sub-Surface Formation
- Simple Case Unitization
- Multiple Independent Reservoirs & Fields
- Voluntary & Compulsory Unitization
- Geologic & Economic Trigger for Unitization
- The Prevailing Factor (s)
- Mandatory or Non-Mandatory Notification of Field Extensions
- Field Extension in Bidded & Non-Bidder Areas
- 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
- 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
- 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.)
- Participation Formula
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- 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)
