Course Overview

When an oil and gas field is unitized, the various owners of the tracts above the reservoir work together to extract the reservoir’s oil and gas. The Unitization Agreement aims to protect the interests of all parties involved while also avoiding some legal pitfalls.

What was the primary reason behind the origin of Unitization? As a single petroleum reservoir spans two fields that are covered by separate petroleum licences or production-sharing contracts owned by different oil corporations, unitization was established as a strategy to restrict the impact of competitive drilling. Unitization emerged to strike a middle ground between the competing goals of the oil firms and the state’s priority of maximising oil recovery from a field in this situation. Voluntary unitization refers to situations in which the parties to the unitization agree to do so, while compulsory unitization refers to situations in which unitization is required by law or regulation or some other means that does not require the consent of the parties to the unitization but is nonetheless imposed on them.

How does pooling differ from unitization? In the oil and gas sector, “pooling” refers to the consolidation of several mineral rights or leasehold interests held by distinct parties into a single organisation that collectively owns enough land to qualify for a drilling licence. There are restrictions on how many wells may be drilled in one region due to spacing and density regulations. They date back to when anybody with a plot of land who found oil or gas could legally dig a well. The result was a dense concentration of wells, many of which shared a subsurface reservoir. Pooling is also known as communication, and it refers to the practice of joining parcels of property to form a single, big enough tract on which to authorise and install a well. Unitization, in contrast, is the process of merging individual mineral or leasehold rights in a shared resource, such as a reservoir or field, into one unified enterprise to increase output and decrease costs. Unitization, unlike pooling, is done to save resources and often encompasses a greater region.

The Unitization in Oil and Gas sector Training Course by Zoe Talent Solutions will provide delegates with the necessary skill sets to improve their knowledge and competence in the following areas: marketing, regulatory, and commercial aspects of the specific types of unitization agreements as well as learning how to balance these issues to minimize risk and learning tips and tricks on negotiating the unitization agreements.

Course Objectives

The Unitization in Oil and Gas sector Training Course by Zoe Talent Solutions aims to:

• Explore options for mitigating the dangers and legal hassles that businesses may encounter
• Be aware of the significant legal and commercial challenges that arise during a unitization
• Know what to think about when putting together a UUOA (Unit Operating Agreement & Unitisation) or a specific project
• Discuss the unique factors to think about while uniting across international borders
• Learn and avoid stumbling blocks by being well-prepared for challenging talks
• Learn regulations aimed at minimizing nearby operators’/contractors’ liabilities.
• Identify a clear approach for negotiating oil and gas contracts and sales agreements

Training Methodology

The course is split down into small modules that are meant to help learn faster by engaging participants in a variety of learning activities.

The training course will employ:

• Expert lectures
• Case studies, presentations
• Interactive discussions and debates
• Role-plays and management games
• Use of advanced technical tools

Zoe Talent Solutions will also apply its unique ‘Do-Review-Learn-Apply’ methodology as it does in its other training courses.

 Organisational Benefits

The Unitization in Oil and Gas Sector Training Course by Zoe Talent Solutions will benefit an organization by:

• Achieving employer branding by investing heavily in staff training to help them build strong resumes and broaden their career horizons
• Maximize profits of the organization by refining contract terms
• Improving preparedness for, and responsiveness to, challenges and consequences related to unitization contracts
• Facilitating the creation of risk-management solutions that might be used in oil and gas contracts
• Negotiating oil and gas contracts and sales agreements with clarity

Personal Benefits

The Unitization in Oil and Gas Sector Training Course by Zoe Talent Solutions will benefit a participant by:

• Help analyse and understand the economical, administrative, and commercial components of the unitization agreements
• Understanding ways to evaluate the financial concerns that influence both parties to a contract and discover how to manage them to reduce risk
• Educating about the ins and outs of establishing unitization agreements
• Acquiring the skills to use English law’s basic legal instruments in both argument and dilemma contexts
• Help understand the fundamental legal ideas that govern oil and gas contracts

Who Should Attend?

The training will assist employees at all levels working in any aspect of procurement and management in the oil and gas industry. This training course will assist a broad range of professions, but it will be especially beneficial to:

• Supervisors in Contracts/Agreements Manager
• Manager of Business Development
• Legal Mentors
• Lawyers who specialized in business law
• Advisors
• Engineers in charge
• Managers of Industries
• Finance Directors
• Executives of Corporate Development

Course Outline

Module 1: Introduction

• An outline of the subject and its scope
• The evolution of the unitization idea
• Overview of the Legal Framework for Unitization
• Technique and Objectives
• Key Terminologies

Module 2: Identification of Regulations of the Country 

• Statutes
• Terms of a Model Contract
• Description of the statistical data
• Unitization on a temporary basis
• Unitization is a legal requirement.

Module 3: Oil and Gas Finance and Strategy

• Acknowledgement for copyright and tax purposes
• Implications of a failed attempt to unitize
• Obtain permission for the unitization strategy.

Module 4: Agreements on the Unitization Legislative Structure

• Deals on operations
• Petroleum activities
• Making decisions as a team
• Agreements on acquisitions
• Contracts for manufacturing sales

Module 5: Unitization Verification

• Contracts made prior to unitization
• Conventions on Unitization

Module 6: Important Topics on Unitization Agreements

• Unitized Matter
• Unitization’s Effects
• Trace Interests Analysis
• Costs for a pre-unitization
• Circumstances affecting Plot Interests

Module 7: UUOA’s Problems

• Involvement in the electoral process
• Rules for determination and redetermination
• Professional Function
• Thresholds for Unit Operating Committee
• Detention of Companies
• Issues with Unitization in LNG Export Projects

Module 8: Unitization Across Borders

• Disputes over Boundaries
• Examples: Netherlands, United Kingdom, and Norway, as well as Nigeria, Saudi Arabia, and Kuwait.
• Transnational issues
• End to Cross-Border Disputes
• Transboundary Conflicts Research Studies