Jubilee Field Unitization Agreement

In July 2009, Ghana`s Ministry of Energy approved the Anniversary I development plan and the unity agreement. As part of this plan, the anniversary field was developed by an FPSO that provided a plateau oil rate of 120,000bopd, a water injection capacity of 230,000bwpd and a gas export and injection capacity of up to 160mscfd. In 2006, the Association of International Petroleum Negotiators (AIPN) established a Unitization and Unit Operating Agreement (AIPN Model Unit Agreement) form model. [5] The AIPN Model Unit Agreement should apply as a whole to single units, and the support guidelines expressly state that the AIPN Model Unit Agreement is an individual application and is not specific to jurisdiction. [6] A tank of oil or gas may be deer in adjacent areas. Unitization is the process by which the straddling reservoir is jointly developed by interested parties in adjacent contract groups. The joint development of an inter-territorial reservoir is generally more economical and efficient than the distinct developments of adjacent contractual groups. An essential principle of unity is that the interterritorial reservoir is physically developed, as if the boundary between contractual domains did not exist. Article 2 of the AIPN Unit-Model Agreement provides that, in the event of the revocation of one of the contracts, the UUOA ceases unless the remaining parties to the contract agree (in accordance with the voting procedure in the UUOA) on the continuation of the UUOA, with the remaining group`s participation being 100% in the event of the revocation of a contract.

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. In addition, the AIPN approach may be inconsistent with the host country`s oil legislation, which defines how the rights of the revocable contract are awarded in the event of revocation, as a general rule, the rights are returned to the host government. The Jubilee Field (Ghana) Unitization and Unit Operating Agreement (Jubilee UUOA), to which the Ghanaian National Oil Company (GNPC) is a party to the two treaties, provides that the Jubilee UUOA remains in effect in the event of expiry, termination or revocation of a contract, and that GNPC becomes the contract group that has expired/terminated/terminated/terminated and that all rights and obligations of the group on the expired/terminated/resiliated/resusctive contract are borne by all rights and obligations of the group. In this case, it was possible to indicate in the UUOA how the rights to the revoked contract are awarded, as GNPC is interested in both groups. [4] The UUOA for Ghana`s Anniversary Field of July 13, 2009 and the HUFFCO/TOTAL Unitization Agreement in Indonesia for the Nilam unit in Eastern California on January 1, 1980 are available to the public.