Summary

Where an oil or gas field underlies both sides of a licence boundary, and the optimum development of that field is by the implementation of a single, integrated exploitation plan, it is common for the licensees in the field to negotiate a Unitisation and Unit Operating Agreement (UUOA) so that they may proceed with a unitised development (ie the field is developed as a single 'unit'). Indeed, it may be possible for the relevant authorities to enforce unitisation on the licensees. The UUOA will cover the basis for the parties to work together (as in a Joint Operating Agreement), ...