OT30503 - Capital gains: unitisations: unitisation or redetermination adjustment payments

For unitisations and subsequent redeterminations, the methods for calculating the cash adjustments to bring expenditure into line with oil entitlement are normally specified in the agreement. The adjustments normally include some, or all, of the following elements:

  1. A reimbursement of historic costs incurred on exploration, drilling, wells, and (for redeterminations particularly) platforms, pipelines and onshore industrial buildings.
  2. 바카라 사이트˜Interest바카라 사이트™, either described as such or calculated by reference to interest rates on the costs in a.
  3. A 바카라 사이트˜third element바카라 사이트™ variously referred to as 바카라 사이트˜indexation바카라 사이트™, 바카라 사이트˜compensation for disproportionate risk borne바카라 사이트™ or 바카라 사이트˜disproportionate future cost sharing바카라 사이트™.

Concepts such as 바카라 사이트˜indexation바카라 사이트™ and 바카라 사이트˜compensation for disproportionate risk borne바카라 사이트™ are not entirely clear cut. This written, 바카라 사이트˜indexation바카라 사이트™ might be seen as an acknowledgement of the purchasing power in money of the day linked to a readily accessible index which can apply to historic as well as future development costs. 바카라 사이트˜Compensation for disproportionate risk borne바카라 사이트™ might be seen as referring to situations where a risk has been taken on say a complex geological structure, or on say a leading edge development scheme, where the prospects of a failure were high, but which ultimately achieved success.