Common Contracts
1 similar Unitization Agreement contracts
AbstractUnitization Agreement • July 8th, 2010
Unitization is the deliberate grouping together of tracts of land on a reservoir-wide basis to coordinate operations in an efficient manner. The resulting units are governed by unit agreements which strike a delicate balance of the competing interests of the parties holding interests in the underlying reservoir. Historically, units have been developed between two blocks/leases/licenses that are under similar contractual regimes. However, in the advent of the Pre-Salt, the unitization process is likely to change in a way never before seen. Because of the size of the Pre-Salt, its potential for multiple reservoirs, the number of blocks involved, and the pending changes to Brazilian oil and gas law, careful attention will need to be paid in drafting any unitization agreement stemming from the Pre-Salt. This paper examines the concept of unitization, the proposed Brazilian oil and gas regulations, and the scope and complexities presented by the Pre-Salt. It concludes with an evaluation of
