Common use of UNITISATION Clause in Contracts

UNITISATION. 21.1. Pursuant to Section 44(2) of the Act, upon discovery of the overlay of a Petroleum Reservoir as per section 44(1) of the Act, the Contractor shall notify the Minister. Such notice shall contain at least: (a) the technical analysis that determines the possible existence of a shared Petroleum Reservoir; (b) the general characteristics of the shared Petroleum Reservoir; (c) the geological, geophysical and other types of assessments used to determine the possible existence of such shared Petroleum Reservoir including, the information obtained during the drilling of ▇▇▇▇▇ that helped determine that the Discovery exceeded the limits of the contract area; (d) additional information the Contractor deems pertinent. 21.2. Upon receipt of the notice required by section 44(2) of the Act, the Minister shall notify the holders of adjacent licences and give such directions to enter into a unitisation agreement pursuant to section 44 of the Act. 21.3. The activities conducted for the shared production Petroleum Reservoir shall be accounted for towards compliance with the Minimum Exploration Work Programme under this Agreement. 21.4. Where the Contractor is of the opinion that the unitisation process detrimentally affects an obligation which the Contractor is required to perform or a right which it may exercise within a prescribed period, the Contractor may submit for the Minister’s approval a request for an extension to exercise the abovementioned obligations and rights which must specify, at a minimum, the Contractor’s justification in support of its request. Should the Minister grant an extension of such period, the Minister shall take into consideration the time which elapsed between the date the Contractor notified the Minister pursuant to this Article and the date on which the unit Development is approved by the Minister. 21.5. When a Petroleum Reservoir is partially located in an area without a valid Petroleum Exploration Licence or Petroleum Production Licence, the Contractor shall notify the Minister of the geological, geophysical and other types of assessments used to determine that the Discovery exceeded the limits of the Contract Area and submit an application to the Minister to incorporate the unlicensed area that contains part of the Petroleum Reservoir(s) identified by the Contractor under the provisions of this Article into a Petroleum Production Licence for the unitised development of the Petroleum Reservoir(s) under consideration. The Minister shall review the application in conjunction with the Contractor’s application for a Petroleum Production Licence or, where the Reservoir(s) is discovered during development drilling, an amendment to a Petroleum Production Licence if applicable, in keeping with the provisions of Article 16 of this Agreement. 21.6. When a Petroleum Reservoir straddles across international boundaries into the territory of a neighbouring State the Contractor shall within ninety (90) calendar days from the date of notice required by section 44(2) of the Act, submit to the Minister, Petroleum Data to assist with the cross-border reservoir determination of tract participation pursuant to Section 45(3) of the Act. 21.7. The Contractor shall not enter into a unitisation agreement with the holders of rights to a Petroleum Reservoir under Article 21.6 until a until a unitisation treaty is entered into between the Government and the neighbouring State pursuant to Section 45(4) of the Act. 21.8. If the Contractor is the holder of the rights to the cross-border Petroleum Reservoir on both sides of the border, the provisions of sections 45(5) and (6) of the Act shall apply.

UNITISATION. 21.1. Pursuant to Section 44(2) of the Act, upon discovery of the overlay of a Petroleum Reservoir as per section 44(1) of the Act, the Contractor shall notify the Minister. Such notice shall contain at least: (a) the technical analysis that determines the possible existence of a shared Petroleum Reservoir; (b) the general characteristics of the shared Petroleum Reservoir; (c) the geological, geophysical and other types of assessments used to determine the possible existence of such shared Petroleum Reservoir including, the information obtained during the drilling of ▇▇▇▇▇ that helped determine that the Discovery exceeded the limits of the contract area; (d) additional information the Contractor deems pertinent. 21.2. Upon receipt of the notice required by section 44(2) of the Act, the Minister shall notify the holders of adjacent licences and give such directions to enter into a unitisation agreement pursuant to section 44 of the Act. 21.3. The activities conducted for the shared production Petroleum Reservoir shall be accounted for towards compliance with the Minimum Exploration Work Programme under this Agreement. 21.4. Where the Contractor is of the opinion that the unitisation process detrimentally affects an obligation which the Contractor is required to perform or a right which it may exercise within a prescribed period, the Contractor may submit for the Minister’s approval a request for an extension to exercise the abovementioned obligations and rights which must specify, at a minimum, the Contractor’s justification in support of its request. Should the Minister grant an extension of such period, the Minister shall take into consideration the time which elapsed between the date the Contractor notified the Minister pursuant to this Article and the date on which the unit Development is approved by the Minister. 21.5. When a Petroleum Reservoir is partially located in an area without a valid Petroleum Exploration Licence or Petroleum Production Licence, the Contractor shall notify the Minister of the geological, geophysical and other types of assessments used to determine that the Discovery exceeded the limits of the Contract Area and submit an application to the Minister to incorporate the unlicensed area that contains part of the Petroleum Reservoir(s) identified by the Contractor under the provisions of this Article into a Petroleum Production Licence for the unitised development of the Petroleum Reservoir(s) under consideration. The Minister shall review the application in conjunction with the Contractor’s application for a Petroleum Production Licence or, where the Reservoir(s) is discovered during development drilling, an amendment to a Petroleum Production Licence if applicable, in keeping with the provisions of Article 16 of this Agreement. 21.6. When a Petroleum Reservoir straddles across international boundaries into the territory of a neighbouring State the Contractor shall within ninety (90) calendar days from the date of notice required by section 44(2) of the Act, Act submit to the Minister, Petroleum Data to assist with the cross-border reservoir determination of tract participation pursuant to Section 45(3) of the Act. 21.7. The Contractor shall not enter into a unitisation agreement with the holders of rights to a Petroleum Reservoir under Article 21.6 until a until a unitisation treaty is entered into between the Government and the neighbouring State pursuant to Section 45(4) of the Act. 21.8. If the Contractor is the holder of the rights to the cross-border Petroleum Reservoir on both sides of the border, the provisions of sections 45(5) and (6) of the Act shall apply.