Understanding Joint Operating Agreements

This book focusses on key practical issues faced by oil and gas companies in different parts of the world in negotiating and implementing Joint Operating Agreements.
Eduardo G. Pereira
book | published | 1st edition
November 2016 | xvi + 402 pp.



ISBN 9781780684116



ISBN 9781780684536

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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.

Table of Contents

Table of Contents (p. 0)

Introduction (p. 1)

Part I. Considerations Prior to Entering Into a JOA

Bribery Laws and Compliance (p. 3)

The Relationship with Other Joint Venture Agreements (p. 27)

Unitisation and Unit Operating Agreements (p. 43)

Key Issues Relating to JOAs in Civil Law Countries (p. 61)

The Relationship Between a JOA and a Host Government Instrument (p. 81)

Decommisioning Obligations, Practices and Procedures (p. 95)

Standards and Practices in JOAs Across the Petroleum Industry (p. 109)

Modifying the Standard JOA to Accommodate Unconventional Petroleum Projects (p. 145)

Part II. Setting Up a JOA

The Scope of the JOA (p. 163)

Addressing Health, Safety and Environment Matters (p. 173)

Insurance: What Should Be Insured, Who Should Be Liable for It and to What Extent? (p. 191)

Transfer of Interest and Change of Control in JOAs (p. 207)

Governing Law and Dispute Resolution Clauses in JOAs (p. 247)

The Challenges of Implementing an Exclusive Operation (p. 293)

Authorising Work and Contracts: How is the North American System Unique? (p. 309)

Making the Default Mechanism Fair and Enforceable (p. 331)

The Relationship and Challenges between a Third Party Operator, the Joint Operating Company and JOA (p. 347)

Accounting Procedure: Can the Operator Make a Profit? How Can the Non-Operator Control the Costs of the Consortium? (p. 363)

Senior Supervisor, Financial Cap and Other Restrictions on the Operator's Liabilities and their Implications (p. 373)

Secondment and the Project Team: A Positive Mechanism to Support the Operator or an Effective Tool to Control the Operator? (p. 387)