Published 11 December 2018
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, like bringing the two (or more) parties involved in agreeing about aspects such as the portion of the field that is contained in each block. In Brazil’s case, unitization negotiation is even more challenging. The establishment, in 2010, of two new fiscal systems brought new issues to the unitization process, when it introduced distinct rules for sharing the petroleum revenue between the State and the producers. This paper discusses how unitization process occurs worldwide and then focus on how the additional issues have been impacting Brazilian experience.