Would add that the the JVOA between PRE and IOC took quite a while to get in place...so I was quite relieved when this was done and it will help govern the way IOC and SD partner work together post deal. I have wondered for some time if a detailed field development plan is required by the govt to compete this transaction. If so, this means FID would be imminently on the heels of the deal. It also would take more time: have seen this take 6+ months to just agree/negotiate with govt...and this is in situations where the partners are already in place. The JVOA would be the governing rules for the new partnership to manage and agree on the details of the development plan proposal. Can the operator drag partners along or can the partners enforce their views because the JVOA is partner "friendly".
The key issues in the document usually revolve around voting rights on key decisions (I.e. how many wells to drill, where to place them, major facility decisions, etc...the JVOA is used to manage all things submitted from partners).
Examples of things that it would govern are:
- submitting detailed development plans (can operator submit its own plan or do voting rights make it such that the 1 of the partners has a veto vote so the operator must play nice)
- agreeing on annual work program and budgets
- individual well proposals
- the committee structure. Finance, accounting, technical, and management committee's.
- usually covers the joint venture from an effective date and includes Pre development and development activities
The JVOA, organizationally, would report up to the PA and any amendments.
The key issues in the document usually revolve around voting rights on key decisions (I.e. how many wells to drill, where to place them, major facility decisions, etc...the JVOA is used to manage all things submitted from partners).
Examples of things that it would govern are:
- submitting detailed development plans (can operator submit its own plan or do voting rights make it such that the 1 of the partners has a veto vote so the operator must play nice)
- agreeing on annual work program and budgets
- individual well proposals
- the committee structure. Finance, accounting, technical, and management committee's.
- usually covers the joint venture from an effective date and includes Pre development and development activities
The JVOA, organizationally, would report up to the PA and any amendments.