The new agreement contains the rights and obligations of counterparties who wish to transfer part of the participation to an upstream oil and gas distribution instrument (. For example, a concession or production-sharing agreement) and provides for a consideration consisting of a combination of cash payments and the performance of work obligations. The 2019 model can be adapted to the distortion of project-specific conditions by the use of optional provisions of the agreement, such as. B the nature of the counterparty (. For example, cash payment, payment of historical fees, advance payment of premiums, disproportionate future expenses) and applicable conditions that will preside over a transfer, which could include government agreement, other consents required under an JOA, preferential rights under an AY. and other third-party authorizations. 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. A typical UUOA can be divided approximately into three distinct sections: (i) trade rules on the common use of unit hydrocarbons – traction participation, new provisions and adaptations (production mode and CAPEX); (ii) the operating rules of the unit (which are similar to those of a joint enterprise agreement) – the designation of the unit operator and the rules applicable to the unit`s works council; and (iii) legislative and other provisions, including force majeure, delays, resignation, termination and settlement of disputes. A UUOA (unlike an JOA) will generally deal with areas without units, (i) operations carried out by a single contract group with respect to a non-interterritorial reservoir within the largest “unit zone”; or (ii) operations carried out by a single contract group outside the “unit area” but using unit facilities.
A number of schedules for a UUOA are essential for the unit process, in particular the “redefinition of technical procedures” that apply to redefining the proportion in proportion to the proportion of the shares of each group of contracts (often referred to as “tract participations”). Similarly, the unit`s accounting procedure is often subject to a special audit.