UNITISATION. 41.1 Where a Petroleum Accumulation in the Contract Area extends beyond the boundaries of the Contract Area into another contract area or a license area, the SPA may, in order to ensure efficient and secure petroleum operations, require the relevant petroleum operations to be developed and produced in a coordinated manner in order to ensure optimum petroleum recovery and optimum use of the relevant petroleum infrastructure, may on written notice to the Contractor and other contractor(s) request that they enter into a unitisation agreement. 41.2 Upon being so required by written notice in accordance with clause 41.1, the Contractor shall cooperate with the other contractor(s) to attempt to prepare a unitisation agreement for the Development and Production of the Field. 41.3 The Contractor shall submit the unitisation agreement to the SPA for approval within 18 months of receipt of notice from the SPA under clause 41.1. 41.4 The SPA shall grant approval within one hundred and eighty (180) days of submission. If the SPA has reasonable grounds for refusal (such to be notified to the Contractor), the SPA may refuse grant of approval within the same period of time. At which point the Parties shall work together in good faith to agree on an appropriate unitisation agreement. 41.5 In case of expiry of the period of one hundred and eighty (180) days following submission to the SPA without the SPA either approving or refusing grant of approval, the approval shall be deemed granted by the SPA. 41.6 Following the SPA’s approval of an agreement in accordance with sub-clause 41.4 a collective proposal for a common Development Plan for the deposit of Petroleum shall be submitted by the Contractor and such other entity(ies) to the SPA for approval, which approval shall be granted within one hundred and eighty (180) days of submission. If the SPA has reasonable grounds for refusal (such to be notified to the Contractor), the SPA may refuse grant of approval within the same period of time. In case of expiry of the period of one hundred and eighty (180) days following submission to the SPA without the SPA either approving or refusing grant of approval, the approval shall be deemed granted by the SPA. 41.7 If a Field in the Contract Area is in proximity to another Petroleum Accumulation in another area that is not subject of a production sharing agreement, the SPA may, in order to ensure efficient and secure petroleum operations, require the relevant petroleum operations to be developed and produced in a coordinated manner in order to ensure optimum petroleum recovery and optimum use of the relevant petroleum infrastructure. 41.8 The Contractor shall forthwith notify the SPA where the Contractor discovers that a Petroleum Accumulation straddles an international boundary of the Federal Republic of Somalia and an international boundary of another sovereign state.
Appears in 1 contract
Sources: Production Sharing Agreement
UNITISATION.
41.1 Where a Petroleum Accumulation in the Contract Area extends beyond the boundaries of the Contract Area into another contract area or a license area, the SPA may, in order to ensure efficient and secure petroleum operations, require the relevant petroleum operations to be developed and produced in a coordinated manner in order to ensure optimum petroleum recovery and optimum use of the relevant petroleum infrastructure, may on written notice to the Contractor and other contractor(s) request that they enter into a unitisation agreement.
41.2 Upon being so required by written notice in accordance with clause 41.1, the Contractor shall cooperate with the other contractor(s) to attempt to prepare a unitisation agreement for the Development and Production of the Field.
41.3 The Contractor shall submit the unitisation agreement to the SPA for approval within 18 months of receipt of notice from the SPA under clause 41.1.
41.4 The SPA shall grant approval within one hundred and eighty (180) days of submission. If the SPA has reasonable grounds for refusal (such to be notified to the Contractor), the SPA may refuse grant of approval within the same period of time. At which point the Parties shall work together in good faith to agree on an appropriate unitisation agreement.
41.5 In case of expiry of the period of one hundred and eighty (180) days following submission to the SPA without the SPA either approving or refusing grant of approval, the approval shall be deemed granted by the SPA.
41.6 Following the SPA’s approval of an agreement in accordance with sub-clause 41.4 a collective proposal for a common Development Plan for the deposit of Petroleum shall be submitted by the Contractor and such other entity(ies) to the SPA for approval, which approval shall be granted within one hundred and eighty (180) days of submission. If the SPA has reasonable grounds for refusal (such to be notified to the Contractor), the SPA may refuse grant of approval within the same period of time. In case of expiry of the period of one hundred and eighty (180) days following submission to the SPA without the SPA either approving or refusing grant of approval, the approval shall be deemed granted by the SPA.
41.7 If a Field in the Contract Area is in proximity to another Petroleum Accumulation in another area that is not subject of a production sharing agreement, the SPA may, in order to ensure efficient and secure petroleum operations, require the relevant petroleum operations to be developed and produced in a coordinated manner in order to ensure optimum petroleum recovery and optimum use of the relevant petroleum infrastructure.
41.8 The Contractor shall forthwith notify the SPA where the Contractor discovers that a Petroleum Accumulation straddles an international boundary of the Federal Republic of Somalia and an international boundary of another sovereign state.
Appears in 1 contract
Sources: Production Sharing Agreement