Unitisation Agreement
When a gas field extends over two or more production licences or leases with different ownership, most countries require that the field owners “unitise” their holdings i.e. decide how the reserves and production of the total field will be shared between the licensees, thus enabling the efficient depletion of the reserves. The Unitisation Agreement normally provides for the appointment of a field operator, a method of determining the reserves underlying each licence or lease and the frequency of reserve re-determination.