Overview

As the international oil and gas industry continues to operate under increasingly diverse challenges such as ultra-deep water drilling; ever more remote and harsher environments and the need to satisfy local content provisions, the joint venture continues to prove to be one of the most robust vehicles for sharing risk; acquiring access to ‘new’ hydrocarbon resources and reserves, acquisition of new technology and partnering with National Oil Companies (NOC’s). Coupled with this, organizations face the enormous challenges of corporate social responsibility (CSR) and stakeholder management. The Joint Venture Agreement (JVA) is the instrument, by which the contractual provisions dealing with investment and returns; control and liabilities, operational activities, as well as the actions to be pursued in the event of a dispute are structured. One of the most critical and central aspects of the JVA is that of the rights; duties and obligations of the party appointed as Operator and the ramifications that this has for the partners who are Non-Operators. Management policies and procedures, the equity of representation from partners and the effective control of daily operations are all critical components reflecting both the importance and the complexity of the modern Joint Venture.

Who Should Attend

• Individuals involved with strategy and planning
• Commercial decision makers
• Project managers and key project personnel
• Legal personnel/contract managers/contract engineers
• Individuals involved with local content compliance and corporate social responsibility

Key Learning Objectives

• Understand the broader underpinning framework that supports the rationale for the JV being a vehicle of choice in terms of operating within government expectations and licensing
• Possess an enhanced knowledge of how a Production Sharing Agreement (PSA) operates
• Grasp the different forms that a JV might take and what this means for parties that are non-operators
• Gain an in depth understanding of the intricacies of the JV from the perspective of the roles of both the Operator and Non-Operator
• Understand the role played by and the powers of the Joint Operating Committee
• Possess a sound grasp of some of the key legal issues that will impact upon the JV and what they mean
• Become knowledgeable and familiar with the mechanics and operations of ‘farming in’ and ‘farming out’
• Recognise the importance of dispute resolution mechanisms and understand the function of the arbitral clause in a contract
• Grasp the vital importance of corporate social responsibility and what this may mean for JV operations
• Understand what is meant by ‘abandonment’ or decommissioning securities and have awareness of what this means to a JV

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