“Standard stratigraphy agreement”: licensees in production licenses for shared stratigraphic domains must enter into a standard agreement that governs the relationship between the two categories of licences. If the situation of an oil reservoir coincides with an international border, each state can order an association, because the principle of sustainable sovereignty over natural resources means that states have exploitation rights on their own territory. The UN Convention on the Law of the Sea (UNDSC) establishes the principles governing the sovereign rights of coastal states to explore their territorial waters and seabed and use their natural resources on the continental shelf. The Frigg agreements between the United Kingdom and Norway are examples of intergovernmental agreements on the formation of unity. Until the mandatory work obligations are met, participation in a production licence cannot be transferred to an unrelated third party without the agreement of the Joint Operating Contract Management Committee. The state has pre-emption rights on the same terms as those agreed between the licensees. However, it is considered that such pre-emption rights have not yet been taken into account. Unitization involves joint exploitation and the use of an entire oil tank by various licensees or other valuation rights holders in an integrated manner and subject to a unity agreement. Unity can be established within a single state or between states that share a land or sea border. What are the rules and procedures governing the granting of rights for exploration and production purposes (e.g., licences.
B, leases, concessions, service contracts, production sharing agreements)? The granting of a production licence is conditional on the establishment by the licensed joint ventures, without legal personality. The joint venture is not governed by Norwegian corporate law, but by the oil agreement, which consists of the special licensing provisions and the joint enterprise agreement and the attached accounting agreement. These documents are mandatory, non-negotiable and identical for all production licenses. The special provisions are individualized, among other things, with regard to the obligation to work, the identification of licensees, participation interests, operator ordering and voting rules. Any other agreement between the licensees or any modification of the legal instruments is subject to approval by the Ministry of Petroleum and Energy. The production licence assumes that all contracts relating to activities under a production licence are governed by Norwegian law and contractual tradition. Most oil licences or agreements and national oil legislation contain provisions relating to the single regime. unitization is the sharing of a specific field that exceeds the limits of two licensing or market areas allocated by the host country. In any event, the department appoints an operator of the joint venture and that company is responsible for the operational activities authorized by the license. The group of licensees co-finances the activities. Each licensee is expected to use its own expertise and all licensees are responsible for monitoring the operator`s activities. From the government`s perspective, one of the main reasons for licensing categories of takers is the introduction of internal community audits and balances that use the complementary skills of licensees as resource owners, both for the joint venture and for the government.
Through the historical mix of commitments, liabilities and incentives under oil legislation, joint venture partners are required to monitor, review and challenge the designated licensee in terms of resource management, health, safety and environment, and development and production management.