OT18280 - PRT: unitisations and re-determinations - unitisations, PRT treatment
A unitisation agreement is normally entered into shortly after the PRT field boundary is determined by the NSTA and before expenditure is incurred on field development. Prior to that however, both groups of participators may have separately incurred expenditure on exploring and appraising their individual blocks.
OTA75\SCH5\PARA1 provides that the first claim period (see OT04420) shall, as the responsible person elects, end on either 30 June or 31 December following final determination of the PRT field boundary and include an unlimited time prior to that determination. Normally when the field boundary is determined the unitisation agreement is negotiated and this then results in both groups of licensees agreeing interests in the PRT field. OTA75\SCH5\PARA2(4)(b) then requires that Schedule 5 expenditure claims show a division of expenditure between the participators in accordance with their respective interests in the oil field. These are their interests in the oil from the determined field.