Aipn Unitization Agreement

The decommissioning, preparation (by the unit operator) and approval (by the unit`s operating committee) of the dismantling work programme and budget remain largely unchanged. Decommissioning is an area in which the provisions of AIPN-UUOA 2020 may not be useful under a single specific scheme. The decommissioning rules in an UUOA should normally be linked to the obligations of the dismantling of the groups in their underlying contracts – which may be different. [2] International union treaties and association agreements are publicly available. The 2020 model is an update to the 2006 AIPN Operating and Operating Agreement. The second edition contains an updated model for merging two blocks under two separate contracts of the same host government. It also offers options and alternatives to the most common problems, as well as the experience gained worldwide through numerous standardizations and lessons learned from the practical use of the original 2006 form model. The retraction provisions in the Cross-Border Unit Scenario need to be examined in detail. The AIPN approach is unlikely in a cross-border entity, as the government revocing the contract is unlikely to accept that the group parties in the other country acquire the interests of the parties to the revoked contract. Jubilee UUOA`s approach does not provide a solution in the context of cross-border unitization, as there is no NOC interested in both groups. The question then arises as to who acquires the rights to the revoked contract in order to allow the continued operation of the unit. This will be a matter of negotiation between the contracting parties to the UUOA, taking into account the applicable laws of the host country.

Similar questions arise in the context of the exit of the UUOA. Article 15 C of the AIPN Model Unit Agreement provides that, if all parties to another group decide to withdraw from the UUOA (and the underlying contract), all contracting parties in the other group or certain parties to the agreement may decide to transfer interest interest to them without compensation. The reason for this provision is to allow the parties to the non-withdrawal group to acquire the rights they need to continue to conduct unit operations under the UUOA in the event of withdrawal of the parties from the other group. Whether this provision can come into force must be the subject of particular attention in the context of a cross-border unit. We doubt that the two host governments envisage that contracting parties withdrawing to Country X will acquire the rights of the outgoing parties in Country Y without consideration. Article 2 of the AIPN Model Units Agreement provides for the termination of the UUOA in the event of the revocation of one of the two contracts, unless the parties to the remaining contract agree (in accordance with the voting procedure in the UUOA) the continuation of the existing UUOA. in this case, in the event of termination of the contract, the remaining group`s leaflet participation is 100%. This means that the remaining group will have 100% of UUOA`s rights and obligations (including the right to production).

This provision ensures that parties to the continuous oil contract can acquire the rights they need to continue unit operations under the UUOA. Some consider the AIPN approach to be problematic for any harmonization, since the group holding the remaining contract has no rights to the area covered by the revoked contract.