The Multiple Issues that Arise for Unitization of Oil and Gas Reserves When A Country has Several Fiscal Systems in Place
Article from: OGEL 2 (2019), in Unitisation and JDZs
Abstract
Oil and gas are found in underground reservoirs, either on land or offshore. Such reservoirs sometimes extend its limits outside the area where the oil companies are authorized to operate. In such cases it's necessary to negotiate with the party responsible for the adjoining area a joint development of such oil or gas field. This procedure of establishing a partnership for a unified operation is called unitization. Unitization regulation is already established, in higher or lower degree, in most of oil producing countries. But the negotiation contains some challenges, ...