Unitization

{
  "id": "MLC-T-OAG-003990",
  "term": "Unitization",
  "field": "Oil and gas",
  "definition": "The joint operation of an entire oil or gas reservoir by multiple leaseholders and royalty owners, treating the field as a single entity for development and production. This approach consolidates management and operations, allowing for a unified development plan that maximizes hydrocarbon recovery from the entire geologic structure, regardless of surface property lines. Production revenues and operational costs are allocated among the parties based on a participation formula, which is determined by factors like productive acreage or original oil in place.",
  "subject": "Oil and Gas Business",
  "url": "https://mlchart.com/terminology/oil-and-gas/unitization/"
}