Unitisation and Redetermination: Right or Obligation?

Abstract

This article deals with the issue of unitisation, the process by which licensees of oil and gas reserves in a field straddling different licences pool their individual interests in return for an interest in the overall unit (which is then operated by a single company on behalf of the group).¹ In many of these arrangements, there is a subsequent opportunity for the parties to modify the relevant participations by way of equity redetermination.