Legal Isuues of Unitization of Common Oil and Gas Resources between Adjacent Blocks Located on Iran’s Territory

Based upon Iranian oil and gas new contract model, contractors will be in charge of execution of exploration, appraisal, development and production operations over contract area for a period more than 20 years. As a result, it is possible that a petroleum field or structure to be common between two or more contracts areas that may cause serious physical and economic waste of resources. Unitization is a method that host governments use to avoid negative impacts of the mentioned situation. As it is first time that unitization notion is included in Iranian petroleum contracts, executive body of N.I.O.C and contractors are less familiar with it. Through this article we endeavor to explore most important issues and problems regarding negotiations on unitization agreements between contractors and analysis and discuss them from the technical and legal point of views. The results could be of help in developing related regulations and negotiations between contractors.