Joint Operations Authority-Law., Lecture notes of Law

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3/7/25, 2:04 PM about:blank Joint Operations Authority Joint Operations Authority JOA is a means of companies coming together as a joint venture for their search of oil and gas within the UK and internationally. The exploration and exploitation of oil and gas can be an expensive process but comes with high rewards. Unincorporated joint, ventures are used in the UKCS, it provides tax advantages and has a lack of mutual liability. A JOA allocates liabilities and responsibilities between the contractors and sets out the framework for the exploration and development activities. However, a JOA is not a merger - the companies remain separate from each other. The JOA is a private contract between the licensees which governs the horizontal relationships between the parties - the purpose of the JOA is to allocate risks and rewards There are different models of JOA’s similar to that of the American Association of Petroleum Landmen 610 (AAPL) and the Oil and Gas UK Standard JOA 2007 (OGUK) which will typically include the duration of the agreement, the parties involved, the scope f the work, exclusive operations, liabilities, decommission and dispute resolution e.t.c. In the UK, JOAs took their first step to being standardised in 1977 in the Sth licensing round with the KOA developed by BNOC. Licences were given under which BNOC were a partner, BNOC also had to accept the terms of the JOA. Scope The JOA is meant to establish the rights and obligations of the parties in relation to the E&P activities under the JOA including the exploration, appraisal, development, production and decommissioning of the area of joint operations. The scope of the JOA is determined through a list of what is included within the joint operations, and those which are removed from the scope known as excluded activities. Joint operations are the activities necessary to perform the obligations under the JOA. The JOA can only be amended through consent from all parties - therefore its important that the terms are carefully drafted because the JOA can last for several years. 15