Joint operating agreements (JOAs) are well-accepted standard agreements in the oil and gas industry which regulate the relationship between the parties to a joint venture: the operator and the non-operator. Traditionally, the operator is responsible for performing operations on behalf of the consortium, while the non-operator is responsible for contributing to the financial commitments of the joint venture. However, due to the strong position typically maintained by the operator, this structure does not always accurately reflect the non-operator’s position.

Unbalanced agreements can create uncertainty, increase the risk of litigation and even jeopardise the very existence of the consortium. Therefore, it is essential to understand the position of both parties in order to ensure a fair and reasonable negotiation, and this fully updated second edition provides an in-depth analysis of the JOA from the perspective of the non-operator.

Coverage includes an examination of the relationship between operators and non-operators under general law, and an analysis of the critical issues facing non-operators in a JOA. In addition, this book reveals how a non-operator can seek to protect its interests – initially through tight control of operations and expenditures, and ultimately through adequate remedies to remove the operator and/or restrict its liability. Further, this edition provides recommendations to address these concerns and also includes the JOA model form from Mozambique as well as reviews of other JOA model forms explored in the first edition.

JOAs are relevant to law, finance, human resources and operations. This book provides invaluable practical guidance for in-house counsel, private practitioners, executives, academics, international oil companies, national oil companies, independents and anyone interested in investing in the upstream sector.

Eduardo G Pereira
Professor of Energy Law
Founding partner, International Energy Law Advisory Group
[email protected] [email protected]
https://www.linkedin.com/in/dr-eduardo-g-pereira-107a7171/

Eduardo G Pereira is a professor of energy law and partner at the International Energy Law Advisory Group. He has been active in the oil and gas industry for more than 10 years and is an international expert on joint operating agreements. His experience in this area – both academic and practical – is extensive. He has practical experience in over 40 jurisdictions covering America, Europe, Africa and Asia. Dr Pereira concluded his doctoral thesis on oil and gas joint ventures at the University of Aberdeen. He is a professor of natural resources and energy law at the Externado University of Colombia; adjunct professor of energy law at the University of Eastern Finland; visiting professor of energy law at the University of Reykjavik; visiting professor at the Centro de Estudos de Ciências Jurídico- Econômicas e Socias – Agostinho Neto University (Angola); visiting professor at the Umaru Shinkafi Centre for Africa Extractive Policy Research (Nigeria); research fellow at the Scandinavian Institute for Maritime Law – University of Oslo; research fellow at Centro de Estudos em Regulação e Infraestrutura – FGV (Brazil); and International Program Manager of Extractive Resources Governance at the Strathmore Extractives Industry Centre – Strathmore University (Kenya). He is the managing editor of UEF Energy Law Review and associate editor of Oil, Gas and Energy Law. He is also the author and editor of several leading oil and gas textbooks. Further information about his publications can be found at: https://www.eduardogpereira.com/copia-profile-1.