Aipn Unitization Agreement
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. There is no homogeneous UUOA because (i) distinguishes the characteristics of a specific interterritorial reservoir (for example. B, oil or gas, reservoir properties, large or small or different, on both sides of the border); (ii) the country in which the inter-territorial reservoir is located (or country in the case of a cross-border unit); and (iii) the context in which the transterritorial reservoir is developed (for example. B for the export of LNG in the case of the Bayu-Undan cross-border unit).
While the AIPN Unit Agreement is extremely useful and relevant to serve as the basis for the negotiation of an OAU, it is often the case that parties will have to modify, supplement, reject or replace certain provisions of the AIPN model unit agreement in order to achieve their commercial and/or legal objectives.