Aipn Model Unitisation Agreement

Article 2 of the AIPN Unit-Model Agreement provides that, in the event of the revocation of one of the contracts, the UUOA ceases unless the remaining parties to the contract agree (in accordance with the voting procedure in the UUOA) on the continuation of the UUOA, with the remaining group`s participation being 100% in the event of the revocation of a contract. This means that the remaining group will have 100% of UUOA`s rights and obligations (including the right to production). This provision ensures that parties to the continuous oil contract can acquire the rights they need to continue unit operations under the UUOA. Some consider the AIPN approach to be problematic for any harmonization, since the group holding the remaining contract has no rights to the area covered by the revoked contract. In addition, the AIPN approach may be inconsistent with the host country`s oil legislation, which defines how the rights of the revocable contract are awarded in the event of revocation, as a general rule, the rights are returned 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 the two treaties, provides that the Jubilee UUOA remains in effect in the event of expiry, termination or revocation of a contract, and that GNPC becomes the contract group that has expired/terminated/terminated/terminated and that all rights and obligations of the group on the expired/terminated/resiliated/resusctive contract are borne by all rights and obligations of the group. In this case, it was possible to indicate in the UUOA how the rights to the revoked contract are awarded, as GNPC is interested in both groups. contains alternative provisions and optional provisions on a number of issues to provide parties negotiating an OAUOA on the basis of the AIPN standard form with the greatest possible flexibility. Editorial boards are developing new models and constantly updating older versions.

A UUOA is usually a complex agreement that requires significant contributions from legal, commercial and technical specialists, including tank engineers, who are familiar with the characteristics of the container. Due to the complexity of a typical UUOA, it is not uncommon for the parts of the unit to take more than a year to reach an agreement on the final UUOA. require defaulting parties to sell their shares to non-failing contributing parties for an agreed “feed-in price.” References made in AIPN UUOA 20026 to alternative valuations based on valuation value, gross book value and market value discount have been removed and parties are now free to agree on buy-out prices. In the absence of a buy-out price agreement, it is determined by an expert on the fair value of the project interest of the defaulting parties minus (i) the late amounts; (ii) assessment costs; and (ii) a specific discount (to be agreed) on fair value; Because of the diversity of sectoral practices, standards, laws and practices, AIPN`s editorial boards consist of a broad group of practitioners and negotiators working together to develop a balanced and comprehensive model contract, using options and alternatives where appropriate to reflect differences in international sectoral practices. The agreement between the parties of the groups that hold the adjacent contracts defines the conditions under which the interterritorial reservoir is developed jointly. This generally results in a unit in which all resources and facilities are jointly held and each group`s share of production and costs is based on the agreed share in the unit, regardless of the location of the facilities.

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