Aipn Model Unitisation Agreement

contains further provisions and optional provisions on a number of issues in order to provide maximum flexibility for parties negotiating a UUOA on the basis of the model form of the opening ai. On the right, a list of current standard contracts is listed. A list of available archived contracts can be found here. One of the main objectives of AIPN is to establish model contracts that are widely accepted and used in the international energy sector. These contracts are tools for the negotiator that serve as a starting point for negotiation and significantly reduce the time it takes to conclude a transaction. A typical UUOA can be roughly divided into three distinct sections: (i) the trade rules relating to the sharing of the hydrocarbon unit – participations, repositioning and adjustments (for production and CAPEX); (ii) the operating rules applicable to the units (similar to the provisions of a joint operating agreement) – appointment of the unit operator and rules applicable to the unit`s operating committee; and (iii) legal and other provisions, including force majeure, delay, resignation, termination and dispute resolution. A UUOA (unlike an OJA) generally also deals with operations outside the unit, i.e.: (i) operations carried out by a single contractual group in respect of a non-overflowing tank within the larger “single territory”; or (ii) transactions carried out by a single contractual group outside the “Unit Area” but using entities of the Unit. A number of failures at a UUOA are decisive for the unification process, in particular the “technical retermination procedures”, which apply to a redefinition of the share of each equity group (often referred to as “Tract Participations”). Similarly, the single accounting procedure is often the subject of special scrutiny. In 2006, the official ai established a standard form for the single and corporate agreement as well as support guidelines, recognising the increase in the number of unifications worldwide. The 2006 UUOA appointing authority was based on the Joint Operating Agreement form, which was adapted to a standardization scenario and extended to single themes for unitized tanks.

Article 2 of the opening authority-Type of Agreement provides that the UUOA terminates in the event of termination of a contract, unless the remaining parties to the contract (in accordance with the voting procedure at the UUOA) vote to maintain the UUOA in force, in which case, after the withdrawal of a contract, the participation of the remaining group is 100%. This means that the remaining group will have 100% of the rights and obligations of the UUOA (including the right to production). This provision ensures that the parties to the continuous oil contract can acquire the rights they need to continue operating the units under the UUOA. Some believe that the official AI approach is problematic for any standardisation, given that the group that has the remaining contract has no rights with regard to the contractual area covered by the revoked contract. In addition, the ipING approach may be inconsistent with the host country`s oil laws, which legally govern the distribution of rights to the revoked contract in the event of withdrawal, with the rights generally accruing to the host government. The Jubilee Field (Ghana) Unitization and Unit Operating Agreement (Jubilee UUOA), to which the GhanaIan National Oil Company (GNPC) is a party to both treaties, provides that in the event of the expiration, termination or revocation of a contract, the Jubilee UUOA remains in force and that GNPC becomes the contractual group of the expired/terminated/revoked contract and assumes all the rights and obligations of the group in relation to the expired/terminated/revoked contract. In this case, the UUOA was able to define the distribution of the rights conferred by the revoked contract, GNPC being interested in both groups. . .


Comments are closed.