Unitisationrules
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Article 47:
CHAPTER TWELVE UNITISATION
(Unitisation of Reservoirs within the Region)
First: If a Reservoir lies entirely within the Region, any unitisation of the Reservoir shall be the responsibility of the Minister after obtaining the approval of the Regional Council, and shall be consistent with international standards in the petroleum industry.
Second: A Reservoir that lies partly within a Contract Area, and partly in another Contract Area, shall be unitised as follows:
(1) The Minister may require by written notice the Contractors to enter into a joint unitisation agreement with each other for the purpose of securing tmore effective and optimised production of Petroleum from the Reservoir; and
(2) if no joint agreement has been reached within a reasonable period of time from receipt of written notice stated in Paragraph Second (1), the Minister shall decide on the unitisation; and
(3) if the Contractors do not agree with the Minister’s decision, the Contractors shall be entitled to arbitration pursuant to the provisions of Article 50 of this Law.
Third: A Reservoir that lies partly within a Contract Area and partly in an area that is not the subject of any other Petroleum Contract, shall be unitised as follows:
(1) The Minister may require by written notice the Contractor to enter into a joint unitisation agreement with the Minister for the purpose of securing the more effective and optimised production of Petroleum from the Reservoir; and
(2) if no agreement has been reached within a reasonable period of time from receipt of written notice as required in Paragraph Third (1) of this Article, the Minister shall decide on the unitisation; and, if the Contractor does not agree with the Minister’s decision, the Contractor shall be entitled to independent arbitration, or the decision shall be according to the conditions of the Petroleum Contract where such a process is provided for under the Petroleum Contract.
Fourth: Any unitisation agreement reached shall define the amount of Petroleum in each area covered by the agreement, and shall appoint the Operator responsible for production of the Petroleum covered by the agreement.
Fifth: The Minister may approve the development or production of Petroleum from the Reservoir only after it has approved or decided the unitisation agreement.
Sixth: Any changes to the unitisation agreement shall be subject to prior approval by the Minister.
