The agreement between the parties of the groups that hold the adjacent contracts defines the conditions under which the interterritorial reservoir is developed jointly. This generally results in a unit in which all resources and facilities are jointly held and each group`s share of production and costs is based on the agreed share in the unit, regardless of the location of the facilities. In certain circumstances, the parties enter into two separate agreements concerning: (i) the formation of the unit and the distribution of unit costs and production between the contractual groups (a “unit agreement”); and (ii) the operation of the unit tank (“unit operating agreement”). However, it is more common for trade and operational provisions to be grouped into a single agreement – a single agreement and a single operating agreement – of the UUOA. The UUOA creates a non-community joint venture between the groups and their participants. UUOAs are private contracts between interest owners and, although they are generally subject to the approval of the host government, they are not publicly available. Take part in AIPN for the International Oil and Gas Contracts and Negotiations Course 2019 in Bangkok, Thailand! The five-day course will replace the basic course of international oil and gas legislation and will include interactive discussions on key pre-food and gas issues, as well as important agreements for new entrants to the sector and experienced individuals. It is taught from a practical point of view by experienced and expert faculties. Despite the contrary expectation, the position adopted under the 2002 JOA, that operators should not be profitable and should not suffer losses in the performance of their duties, remains unchanged until the 2012 revision (Article 4.6).
An exception to this basic principle applies in cases of gross negligence or misconduct on the part of the operator`s primary supervisory staff, with the exception of consecutive or environmental damages for which the operator cannot be held responsible. The operator`s liability will always be a potential source of conflict during the negotiation of the JOA, in order to find a balance between the concerns of minority participants regarding measures taken outside their control and the reluctance of operators to assume any responsibility for the transactions carried out on behalf of the participants. Editorial boards are developing new models and constantly updating older versions. Due to its significant use in the upstream oil and gas industry, the AIPN JOA editorial board decided to update the model form to make it compatible with the current realities of international oil and gas activities. Among the realities that have redefined the sector`s business approach are the financial crash in 2008, the macondo incident of 2010 and the introduction of the UK Corruption Act in 2010. is not specific to the court. It should be noted that AIPN UUOA is not used in the United States, the United Kingdom or Norway; The main consequences of the new anti-corruption provisions on the parties to the JoA are extensive compensation to cover potential losses suffered by non-injurious parties and the following optional provisions: (i) non-operators are allowed to remove the operator for violation of anti-corruption laws and obligations; and (ii) a party that disengages from the JOA simply because another party has violated the guarantees of corruption and corruption, receives compensation and has included in its calculations of damages the amount of its investment which it has lost as a result of the withdrawal.