Common Contracts
1 similar Joint Operating Agreement contracts
Joint Operating Agreement: Operatorship role, options and concernsJoint Operating Agreement • April 25th, 2018
Any Joint Operating Agreement (JOA) requires an operator to conduct the operations on the behalf of the Joint Venture (JV) or consortium. The most common approach in the petroleum industry is to elect one party of the consortium as the Operator. The Operator will be leading the consortium to conduct the operations by (i) hiring any service required to perform the joint operations, (ii) proposing the work to be done internally for the Non-Operators approval though the appropriate mechanisms and committees (if applicable), (iii) representing the consortium towards the government and third parties, (iv) requesting the financial resources from the Non-Operators and itself through cash calls or bills. This is efficient because it allows one party to conduct and manage operations for the consortium, but it also causes Non-Operators concern because they share in the risks and rewards of operations, but they lack day-to-day control. Consequently, Non– Operators are eager for some method to pro
