Abstract
Unitisation has evolved globally as the best mechanism for the joint development of hydrocarbon bearing reservoirs that straddle two or more concessions or licenses. The concept of unitisation is underpinned by the need to avoid competitive exploitation of hydrocarbon resources, maximise its economic recovery, eliminate proliferation of production facilities and reduce development and operating cost.1
The practice of unitisation in the Nigerian oil and gas landscape has gained traction over the years with several straddle fields identified as candidates for unitisation and more than ten (10) agreements for joint development (both Pre Unitisation Agreements and Unitisation and Unit Operating Agreements) executed in the industry. This has occurred under a regulatory regime for unitisation that has evolved from the concise provisions of Section 48 of the Petroleum (Drilling and Production) Regulation 1969 as amended, to the robust Guidelines for Unitisation issued by the Department of Petroleum Resources (DPR) in 2008 (revised in 2019) (Guidelines) in response to the complexities of joint development encountered by parties.
While the Guidelines is an excellent attempt at providing a process for unitisation, it does not provide sufficient guidance on the contract regime for unitisation as the bedrock for joint development. A critical look at the contracts governing joint development in the light of global best practices is important to ensure that it meets in an effective manner the objectives of unitisation. A review of the contract regime for unitisation would be incomplete without recognising the impact that underlying contracts governing separate concessions have on unitisation. To this end, the posture of Production Sharing Contracts (PSCs) on gas development in a unit is worth reviewing in the light of the benefits of commercialising gas to the State and the Contractor.
This paper reviews the contract regime for unitisation in Nigeria as regulated by the Guidelines and the impact that underlying contracts (particularly PSCs) have on unitisation. The paper will proffer recommendations for inclusion in the Guidelines with a view to improving the process of joint development of shared reservoirs in Nigeria.
CONDITIONS OF FORMATION OF SULFIDE WATERS IN PARAGENESIS WITH EVAPORITE AND OIL AND GAS-BASED FORMATIONS IN THE ARTESIAN POOLS OF THE REPUBLIC OF UZBEKISTAN