Understanding joint operating agreements / edited by Eduardo G. Pereira.

Format:

Book

Contributor:

Pereira, Eduardo G., editor.

Language:

English

Subjects (All):

Joint ventures--Law and legislation.

Joint ventures.

Oil and gas leases.

License agreements.

Petroleum law and legislation.

Physical Description:

1 online resource (xvi, 401 pages) : digital, PDF file(s)

Place of Publication:

Cambridge : Intersentia, 2017.

System Details:

text file

PDF

Summary:

The Joint Operating Agreement (JOA) is widely used in the petroleum industry as a contractual framework for joint ventures across different continents and standards.The first part of this book deals with considerations prior to entering into a JOA, such as compliance with bribery laws; standards, practices and procedures across the petroleum industry; enforceability of JOAs and understanding decommissioning obligations. The second part focusses on key clauses within any JOA covering topics including health and safety considerations; liability and insurance; and control of operations and expenditures.This is a unique publication dedicated to analysing all of these key practical issues faced by oil and gas companies in different parts of the world in negotiating and implementing a JOA in a single book publication.

Contents:

Part I Considerations Prior to Entering into a JOA 3

Bribery Laws and Compliance / Dyfan Owen Owen, Dyfan, Wei Wei Wang Wang, Wei Wei, Aaron Murphy Murphy, Aaron 5

1 Introduction 6

2 Key Legislation and Instruments 6

3 Consequences 11

4 Managing Risk 15

5 Conclusion 25

The Relationship with Other Joint Venture Agreements / Jen Ackroyd Ackroyd, Jen 27

1 Introduction 27

2 Area of Mutual Interest Agreements 28

3 Joint Bidding Agreements 32

4 Farm-Out Agreements 36

5 Conclusion 40

Unitisation and Unit Operating Agreements / Eduardo G. Pereira Pereira, Eduardo G., Giulia Carloni Carloni, Giulia 43

1 Introduction 43

2 The Concept of 'Unitisation': Participating Interest, Track Participation and Unit Interest 45

3 The Inter-relation between the JOA and UUOA 51

4 Distinctions and Clashes between the JOA and UUOA 52

5 Joint Operations, Exclusive Operations, Unit Operations and Non-Unit Operations 57

6 Operator and Unit Operator 58

7 Opcom and Unit Opcom 58

8 Default 59

9 Assignment 59

10 Decommissioning 60

11 Conclusion 60

Key Issues Relating to JOAs in Civil Law Countries / Eduardo G. Pereira Pereira, Eduardo G., Yanal Abul Failat Failat, Yanal Abul 61

1 Introduction 61

2 Contractual Concerns and Challenges 63

3 Conclusion 78

The Relationship between a JOA and a Host Government Instrument / Eduardo G. Pereira Pereira, Eduardo G., Ole Kirkvaag Kirkvaag, Ole 81

1 Introduction 81

2 Liabilities 83

3 Scope 87

4 Exclusive Operations 90

5 Default 91

6 Other Provisions 92

7 Conclusion 94

Decommissioning Obligations, Practices and Procedures / Craig Purdie Purdie, Craig 95

1 Decommissioning Obligations 96

2 Approaches to Decommissioning in JOAs 99

Standards and Practices in JOAs across the Petroleum Industry / Yanal Abul Failat Failat, Yanal Abul, Eduardo G. Pereira Pereira, Eduardo G. 109

1 Introduction 110

2 Rationale for Using Model Form JOAs 112

3 Model Form JOAs 113

4 The Scope of a JOA 117

5 Duration, Term and Termination 119

6 The Parties to the JOA 120

7 Deviating from Joint Operations 130

8 Financing Structure 133

9 Decommissioning 138

10 Lifting and Disposal of Petroleum 141

11 Boilerplate Clauses 141

12 Conclusion 144

Modifying the Standard JOA to Accommodate Unconventional Petroleum Projects / Peter Roberts Roberts, Peter 145

1 Understanding the Operational Premise 146

2 The Definition of Petroleum 149

3 The Role of the Operator 150

4 Defining Joint Property 151

5 Scope 151

6 Ongoing Project Development 152

7 Exclusive Operations 152

8 Withdrawal 153

9 Options for Petroleum Commercialisation 153

10 Environmental and HSE Issues, and Operator Liabilities 154

11 Operator Liability 155

12 Unitisation and Joint Development Opportunities 155

13 Decommissioning 156

Part II Setting Up a JOA 157

Part II.A General Considerations 161

The Scope of the JOA / Harry W. Sullivan, Jr. Sullivan, Harry W., Jr. 163

1 Introduction 163

2 Structure to Collectively Exercise Rights and Fulfil Common Obligations 164

3 Philosophy of AIPN JOA: A Guide to the Scope 165

4 Participating Interests, Ownership, Obligations and Liabilities 167

5 Government Participation 168

6 Cooperative Activities and Operations; Excluded Activities and Operations 170

7 Conclusion 171

Addressing Health, Safety and Environment Matters / Katie Winterbourne Winterbourne, Katie 173

1 Overview 173

2 Drivers behind a Recent Focus on HSE in the JOA 175

3 Minimising the Risk of an HSE Incident Occurring 178

4 Responding to an HSE Incident 183

5 Responsibility for an HSE Incident 186

6 Conclusions 188

Insurance: What Should Be Insured, Who Should Be Liable For It and to What Extent? / Birgitte Jensen Jensen, Birgitte 191

1 Introduction 191

2 The Meaning of Insurance 193

3 Liability and Insurance 194

4 OPOL 199

5 What Type of Insurance Should be in Place? 200

6 Contractor's Liability versus Operator's Liability 204

Transfer of Interest and Change of Control in JOAs / Michael Polkinghorne Polkinghorne, Michael 207

1 Introduction 208

2 Transfer of Interest 210

3 Change in Control 215

4 Preferential Rights to Purchase 218

5 Transfers in the Context of a Default 227

6 Withdrawal Provisions 234

7 Consent Provisions 235

8 Problems in Practice 237

9 Conclusion 245

Governing Law and Dispute Resolution Clauses in JOAs / Tuuli Timonen Timonen, Tuuli, Anaïs Harlé Harlé, Anaïs 247

1 Introduction 248

2 Governing Law Clauses in JOAs 250

3 Dispute Resolution Clauses in JOAs 269

4 Conclusion 292

The Challenges of Implementing an Exclusive Operation / Eduardo G. Pereira Pereira, Eduardo G. 293

1 Introduction 293

2 Exclusive Operations Clauses 294

3 Poor Drafting 296

4 Interaction with Joint Operations 297

5 Fragmentation of the Joint Venture and Governance of Exclusive Operations 298

6 Non-Consent Burden 299

7 Operator Refusal 300

8 Buy-Back Rights 301

9 Interaction with Carry Arrangements 302

10 Government Involvement 303

11 National Oil Company Involvement 303

12 Exclusive Operations in Frontier Environments 304

13 Default 305

14 Unit Operating Agreement 305

15 Civil Law 306

16 Concluding Comment 306

Part II.B Control Of Operations and Expenditures 307

Authorising Work and Contracts: How is the North American System Unique? / David H. Sweeney Sweeney, David H. 309

1 Introduction 309

2 The 'North American System 311

3 'International' Operating Agreements 319

4 A Comparative Analysis 325

5 Success and the North American Model 329

Making the Default Mechanism Fair and Enforceable / Peter Roberts Roberts, Peter 331

1 The Consequence of Default 331

2 The Definition of Default 333

3 The Reaction to Default 335

4 The Remedies for Default 337

5 Interest Sales 339

6 Forfeiture 341

The Relationship and Challenges between a Third Party Operator, the Joint Operating Company and JOA / Syed Marzidy Syed Marzuki Marzuki, Syed Marzidy Syed 347

1 Operatorship 347

2 Types of Operatorship 349

3 Joint Operating Agreement 353

4 Operating Committee versus the Board 354

5 Composition of Board Members 356

6 Cost Sharing under Different PSCs 357

7 Carried Costs 357

8 Default 358

9 Disputes and Litigation 359

10 Budget 359

11 Sole Risks 360

12 Conclusion 361

Accounting Procedure: Can the Operator Make a Profit? How Can a Non-Operator Control the Costs of the Consortium? / Syed Marzidy Syed Marzuki Marzuki, Syed Marzidy Syed 363

1 Introduction 364

2 Fundamental Principle 364

3 Exclusive Operations or Sole Risk 365

4 General Principle of Maintaining Accounting Records 365

5 Chargeable Expenditures 365

6 Direct Charges 366

7 Indirect Charges 369

8 Ways to Control Expenditure 369

9 Inventories 371

10 Acquisition and Disposal of Material 371

11 Marketing Rights and Fees 372

12 Conclusion 372

Senior Supervisor, Financial Cap and Other Restrictions on the Operator's Liabilities and their Implications / Leslie Weihua Zhang Zhang, Leslie Weihua 373

1 Introduction 373

2 The Definitions of Senior Supervisory Personnel under the International Model JOAs 375

3 What is the Real Meaning of Gross Negligence or Wilful Misconduct? 377

4 Limitation of Operator's Liabilities under International Model JOAs 381

5 Possible Impact of the BP Gulf of Mexico Oil Spill Phase One Trial 383

6 A Comparison of Key Issues in the International Model JOAs 384

7 Conclusion 386

Secondment and Project Team: A Positive Mechanism to Support the Operator or an Effective Tool to Control the Operator? / Leslie Weihua Zhang Zhang, Leslie Weihua 387

1 Introduction 387

2 Definition of Secondment and Project Team 388

3 Functions/Roles of Secondment Arrangement under the International Model JOAs 390

4 Functions/Roles of Project Team Arrangement under the International Model JOAs 392

5 The Process to Establish the Secondment Arrangement and/or Project Team 395

6 The Risks and Liabilities Allocation 397

7 Real Secondment/Project Team Clauses in the International Petroleum Industry Context 399

8 Conclusion 401.

Notes:

Title from publisher's bibliographic system (viewed on 05 Jan 2018).

Other Format:

Print version:

ISBN:

9781780684536

Access Restriction:

Restricted for use by site license.