Equity, unitisation and redetermination

When equity is challenged, what matters is whether your work withstands technical, commercial and procedural scrutiny and whether the outcome is defensible and accepted.
Whether you need strategic support or an independent unit‑appointed Expert, we bring decades of experience in both roles and can help you navigate your redetermination process to a safe conclusion.

Equity, unitisation and redetermination processes sit at the intersection of technical interpretation, commercial exposure and strict contractual procedure. In an environment where even small percentage shifts can have significant commercial impact, maintaining control means preparing early, understanding the rules deeply and anticipating where challenges will arise.

A defensible outcome safeguards:

• Commercial value — Even marginal shifts can materially affect NPV, balance sheets and partner negotiations.
• Procedural integrity — Redetermination rules are designed to constrain discretion. Deviations, even well intended ones, introduce risk.
• Reputational credibility — A submission or decision (depending on the role) that withstands challenge reinforces internal and external confidence.
• Partner relations — A safe outcome reduces the risk of escalation, legal challenge or long term resentment between the unit partners.

In contentious redeterminations, the goal is to produce an answer that can be accepted, defended and sustained.

Redeterminations are carried out in accordance with a Unit Operating Agreement (UOA), which contains a prescribed set of procedures governing the equity negotiation process between the Unit Owners. These procedures also set out the allowable technical methodologies and admissible data and, if a negotiated settlement cannot be reached, the appointment and contracting of a third‑party independent decision‑maker (typically defined in the UOA as the Expert).
The appointed Expert is responsible for arriving at a decision on the future ownership of the licence holders in the field. That decision must be technically defensible, internally consistent, procedurally and contractually compliant and completed within a prescribed timeframe.
Delivery of a safe decision allows the Unit Owners to proceed with maximising recovery and revenue generation after what is often a protracted and adversarial process.
Our equity, unitisation and redetermination team supports operators, non‑operators, legal advisers and governments through contested ownership environments. We have decades of experience providing strategic support in unitisation and redetermination processes and acting as the appointed Expert.

Strategic support assignments involve assisting clients to navigate the procedures, including identifying volumetric levers, procedural ambiguity and submission and rebuttal preparation. Winning teams maintain a coherent narrative that is:

• Technically sound — Accurate, disciplined and aligned to the agreed procedures
• Commercially aware — Focused on what actually drives the volumetric outcome of a redetermination rather than peripheral detail
• Legally compliant — Structured around the contractual framework, not personal preference or industry norms

Those appointed to the Expert role are rarely persuaded by excessive exposition, misaligned assumptions or attempts to apply “best practice” that contradict the procedures contained within the UOA.
When acting in a technical adviser or strategic advisory support role, we:

• Support a client’s position to maximise the commercial outcome while protecting credibility
• Test interpretations within procedural bounds and anticipate how they may be challenged
• Produce concise, persuasive submissions that keep the narrative intact
• Help teams recognise when a line of argument is no longer helping
• Support rebuttal strategy after an initial decision, with a focus on what can be proven and what must be conceded

The Expert role, as defined by the UOA governing an equity redetermination, requires:

• Steadfast independence — Often in the face of biased argumentation or unreasonable or contradictory demands.
• Technical rigour — Redetermination decisions must be internally consistent and supported by written justification of all assumptions and technical choices, with reference to the governing UOA procedures.
• Calm disposition — The Expert role is almost always conducted under intense time pressure, and experience of how to respond when things do not go to plan is essential.

It is the role of the Expert to deliver a decision that is viewed as unbiased, procedurally compliant and less likely to be overturned by opportunistic legal challenge. Such decisions should be understandable by all Parties, even if not universally popular.
Across both roles, we keep the work coherent, compliant and defensible so the outcome can be accepted without unnecessary escalation.
Please note that references to the Expert role describe a formal appointment under the applicable Unit Operating Agreement. All GHD engagements are undertaken with reasonable skill and care in accordance with our standard terms of service.

Whether acting as a strategic support adviser or as a unit‑appointed Expert, we understand, through experience with multiple redeterminations, that success is rarely about technical superiority alone. We keep the following in constant view:

• Where challenges will emerge — Knowing which assumptions, data choices or methodologies are likely targets.
• How opposing parties behave — Parties pursue advantage, not fairness, and ingenuity should be expected.
• When procedural constraints override technical preference — Contracts define what can be done, while experience defines how to work within those limits.
• Which battles matter — Strong leadership decides what not to include, where to concede and which arguments are worth pursuing.
• The importance of defensibility — The safest outcome is one viewed as reasonable by all parties, even if not universally preferred.

Redetermination is an adversarial environment. If your assumptions have not been challenged from the perspective of other parties, they will be, and at the worst possible moment.

Stress‑testing means:

• Challenging your own interpretations through the lens of competing interests
• Identifying procedural vulnerabilities before they become tactical opportunities for others
• Making sure every component of your submission can withstand independent examination
• Confirming alignment between subsurface, commercial and legal teams

If you are approaching a unitisation, redetermination or equity challenge, speak with us early to check for any potential conflict of interest that might prevent us from acting either as a unit‑appointed Expert, as defined under the relevant UOA, or in a strategic support advisory role on your behalf.