Day One

I. Maritime Boundary Disputes: The International Legal Framework

  • Legal concepts involved
  • Entitlements to resources
  • International Dispute Settlement

II. Essentials Of International Unitisation Agreements

  • Fundamental Principles of Unitisation
    • Legal concepts involved
  • Technical, Legal, and Practical Aspects of Successful Unitisation
    • Laws governing cross border unitisation agreements
    • The International Legal Framework
    • Sample International Agreements Format
  • Negotiating Parties and their Agenda & Interests
    • Licensee Companies
    • States

  • Identifying and minimising legal and technical risks in boundary disputes

        Technical Aspects:        

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    • Defining territorial sea baselines: the foundation for all maritime spaces
    • Drawing the median/equidistance line: the starting point for boundary delimitation
    • Making a median line into a boundary, where participants actually get involved in drawing the lines on charts

        Legal Aspects

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    • Options where the international boundary is unsettled
    • Options where the international boundary is settled
    • Host country rights and obligations under international law in terms of “cooperation and mutual restraint” – as well as “right of capture”
    • Comparative analysis of cross-border treaties pertaining to cross-border reservoirs/fields between the respective States
    • Fundamentals of the cross-border unitisation agreement between the respective IOCs
    • Considerations where the same IOC resides on both sides of the international boundary
    • Redetermination issues 

 

III. Building A Roadmap To Successful International Unitisation

  • Critical Issues in the Negotiation
    • Unit Area
      • Area Extent
      • Depth
      • Changes in Unit Area
    • Unitised Substance
      • Oil Vs. Gas
      • Other substances used for enhanced recovery
      • Diluent Used in Heavy Crude Oil Projects
    • Existing Facilities
    • Availability and access to existing data
    • Determination of Tract Interests
      • Principal Basis for Tract interests
      • Conversion Ratios between Oil and Gas
      • Pre-unitisation Expenditures/Cost
      • Other Factors Affecting Tract Interests
    • Determination of Unit Interests
    • Redetermination of Tract Interests
      • Basis for Redetermination
      • Number of Redeterminations
      • Timing of Redeterminations
      • Data Used for Redetermination
      • Proposal and Approval of Redeterminations
      • Effects of Redetermination – Production
      • Effects of Redetermination – Costs
      • Effects on Host Government Contract
      • Trend Toward No Redetermination
    • Unit Decision-making
    • Non-Unit Operations
      • Priorities
      • Drilling Through Unit Reservoirs
      • Joint Use of Infrastructure
      • Relationships with Unit Redeterminations and Expansions

Day Two

IV. Participating In An International Unitisation Agreement Negotiation

  • Effective Resolution approaches that guarantee likelihood of success
  • The Negotiation Process
    • Initial Elements
    • Process
    • Output: Final Agreement
      • Format of International / cross-border unitisation agreements
      • Effect of Unitisation
    • Key issues to be negotiated
      • Inter-State issues and political resolutions
      • Unit Operator
      • Equity Split
      • Development Plan
      • Export options
      • Provisions for Re-Determination

V. Managing An Internationally Unitised Area Effectively

  • Interpretation and enforcement of unitization agreements
  • Taxation
  • Expropriation risk
  • Dispute Resolution

Case Studies:

  • East Timor/Australia
  • Venezuela/Trinidad
  • Detailed Hypothetical Problem: Unitisation Negotiation and Drafting Exercise

VI. Conclusion & Summary