Joint Operating Agreements

Peter Roberts; Reg Fowler

Book

Joint Operating Agreements

A Practical Guide, Fourth Edition

Peter Roberts, Reg Fowler

Published: 2020
Pages: 435

eBook: 9781787422643

There is also practical analysis of the key issues which apply to the operation of any JOA and the positions which are taken in the leading industry model form contracts. The perspectives of the operator and non-operator are addressed, along with consideration of the domestic and international standards applicable to petroleum projects.

Cover	Cover
Title Page	1
Copyright Page	2
Table of Contents	3
Introduction	7
Glossary	9
1. First principles of the JOA	13
1.1 The logic for a joint venture	13
1.2 The concept of the JOA	15
1.3 The incorporated joint venture	18
1.4 Hybrid project structures	23
1.5 Partnership contrasted	24
1.6 Pre-JOA agreements	30
1.7 Model form contracts	33
1.8 JOA evolution and economics	37
2. Concession forms and the JOA relationship	41
2.1 Introduction	41
2.2 Applicable terms	46
2.3 Operator rights and duties	50
2.4 State participation in the joint venture	51
2.5 Liability	52
2.6 Disposal of petroleum	54
2.7 Property and ownership	55
2.8 Decommissioning	56
2.9 Information and confidentiality	57
2.10 Dispute resolution	58
2.11 Exclusive operations and non-consent	58
3. Parties, participating and carried interests and collateral support	61
3.1 The parties	61
3.2 Participating and carried interests	64
3.3 Collateral support	69
3.4 Joint property	77
4. Managing state participation	79
4.1 State participation in the concession and JOA	79
4.2 Later state participation	81
4.3 Carried interests	82
5. Duration	83
5.1 Pre-JOA arrangements	83
5.2 Commencement	91
5.3 Term	92
5.4 Termination and surrender	93
5.5 Surviving provisions	94
6. Scope	97
6.1 Joint operations	97
6.2 Excluded activities	103
6.3 Expanding the scope	105
6.4 Definition of the scope	108
6.5 Modification of the scope	109
7. The operator	111
7.1 The operator’s advantage	111
7.2 Selection of the operator	113
7.3 The role of the operator	114
7.4 The locus of the operator	120
7.5 Resignation and removal	122
7.6 Hybrid operator structures	126
7.7 The operator’s perspectives	129
7.8 Fiduciary duties and relational contracts	131
8. The non-operating parties	143
8.1 The role of the operating committee	143
8.2 Operating committee mechanics	145
8.3 Subcommittees	149
8.4 Voting control	149
8.5 The non-operating parties’ perspective	155
9. The accounting procedure	159
9.1 Model form accounting procedures	159
9.2 Accounting principles	159
9.3 Contents of the accounting procedure	161
9.4 Accounting procedure issues	164
10. Economic management	167
10.1 Introduction	167
10.2 Work programmes and budgets	168
10.3 Authorities for expenditure	178
10.4 Cashcalls and invoice requests	181
10.5 Payment obligations	184
10.6 Dealing with default	186
11. Contracting	187
11.1 Procurement options	187
11.2 Third-party contracts	188
11.3 Affiliate contracts	190
11.4 Federal contracts	192
11.5 Contributions in kind	194
11.6 Awarding of contracts	195
11.7 Contract management, audit and ABC compliance	196
12. Petroleum management and disposal	197
12.1 Introduction	197
12.2 Petroleum allocation	199
12.3 Petroleum lifting	202
12.4 Petroleum disposal	210
12.5 Production sharing contract allocation	212
13. Exclusive operations	215
13.1 Defining exclusive operations	215
13.2 Exclusive operations mechanics	220
13.3 Buy-back rights	230
13.4 Excluding exclusive operations	233
14. Transfers and withdrawals	237
14.1 Transfers under applicable law	238
14.2 Transfer mechanics in the JOA	239
14.3 Incomplete transfers	249
14.4 Pre-emption rights	251
14.5 Change of control	256
14.6 Affiliate transfers	260
14.7 Withdrawal	261
14.8 The use of the withdrawal mechanism	263
15. Joint venture information and\r\ncompetition law	265
15.1 Information and confidentiality	265
15.2 Public announcements	267
15.3 Intellectual property rights and rights in information	268
15.4 Intellectual property rights – JOA drafting considerations	269
15.5 The operator as custodian of information and intellectual property	272
15.6 Competition law	273
15.7 The nature of the agreement under competition law	273
15.8 Relevant JOA provisions	277
15.9 Concessions	277
15.10 Procurement of goods, works and services	278
15.11 Sales of hydrocarbon production	279
15.12 Downstream transportation and processing facilities	281
15.13 Geological and geophysical data; other forms of technology	282
15.14 Competition law and information exchange	282
16. Decommissioning	285
16.1 The decommissioning phase	285
16.2 The regulatory regime	288
16.3 Collateral support for decommissioning costs – regulatory requirements	293
16.4 Decommissioning and the JOA	296
16.5 Decommissioning on the UKCS	301
17. Liabilities	307
17.1 The operator’s liability to the parties	307
17.2 Liability allocation between the parties	313
17.3 Liability for exclusive operations	315
17.4 Third-party liabilities	315
17.5 Liabilities and insurance	317
17.6 General liability	318
18. Default	321
18.1 Consequence of default	321
18.2 Definition of default	323
18.3 Reaction to default	327
18.4 Remedies for default	328
18.5 Mortgage and lien protection	334
18.6 Interest sales	336
18.7 Forfeiture	337
19. Dispute resolution	351
19.1 Dispute resolution principles	351
19.2 Dialogue	354
19.3 Expert determination	355
19.4 Arbitration	357
19.5 Litigation	358
19.6 Arbitration or litigation?	358
19.7 Consolidation	360
19.8 Confidentiality	360
19.9 Jurisdiction	361
19.10 Sovereign immunity	361
20. Other provisions	363
20.1 Corporate and social responsibility	363
20.2 Entire agreement and amendment	364
20.3 Force majeure	366
20.4 Governing law	369
20.5 Health, safety and the environment	370
20.6 Insurance	371
20.7 Litigation management	374
20.8 Notices	376
20.9 Secondment and teams	377
20.10 Taxation	379
20.11 Third-party involvement	380
20.12 Warranties and representations	381
Appendix 1: Farm-outs and the JOA	383
Appendix 2: Unconventional petroleum JOAs	393
Appendix 3: Unitisation and the JOA	405
About the authors	419
Index	421
About Globe Law and Business	435

Add to favourites Request a trial

Search options:

Joint Operating Agreements

A Practical Guide, Fourth Edition

Table of Contents

Practical, topical titles for international legal and business professionals