Common Contracts

Oil and Gas Farmout Agreements: Issues and Approaches from the Farmee’s Perspective

February 3rd, 2006

• Filed
  February 3rd, 2006

Farmout agreements are a regular part of the oil and gas industry, as persons holding permits and licences endeavour to share the risk and the cost of exploration and development, Typically, a farmout will involve a person holding a permit or licence or an interest in a permit or licence under an existing unincorporated joint venture (the farmor) agreeing with another person (the farmee) to assign to the farmee an interest in the permit or licence and the associated joint venture in consideration for the farmee carrying out or funding defined work within the permit or licence.