Aipn 2012 Model International Joint Operating Agreement
The 2012 JOA also extends the Article 6.8 expenditure authorisation procedure. It provides for alternative provisions that the parties can choose: for more than 20 years, the AIPN model of the Joint Operating Agreement (JOA) has provided the benchmark for international oil and gas joint venture agreements. It is one of the largest and most widespread contracts in the oil and gas industry. As a result of the increase in its use over the past two decades, particularly in emerging countries, its provisions have increasingly become the standard for comparison, measurement, financing and financing of upstream oil and gas joint ventures. JOA 2012 is more prescriptive in terms of the content to be included in each annual work program and budget. The 2012 JOA contains a series of optional provisions for positions that parties may wish to include in the work programme and budget, including the indication. B of dependence on a position, estimate of appropriations to be spent during the calendar quarter, during the exploration period, a forecast of annual operations and activities and the estimated costs associated with them. Given the inclusion of these voluntary provisions, parties must consider the degree of detail they wish to incorporate into work programs and annual budgets. The 2012 JOA contains a number of alternative provisions that allow the parties to adapt the standard contract to their particular situation. In addition, the accompanying instructions published by AIPN contain guidelines for the use of JOA 2012 in civil courts. In order to support this limitation of liability, JOA 2012 includes compensation to the operator for losses resulting from joint transactions.
This reflects the usual commercial position that an operator exercises on behalf of all other inventories and that it should not win or lose as a result of its operator activity. Houston (March 15, 2012) – The Board of Directors of the Association of International Petroleum Negotiators (AIPN) has released the 2012 version of its Model International Joint Operating Agreement (JOA). Each party has the right, under the 2012 JOA, to propose changes to labour programs and budgets (Article 6.1.H), but these changes must be approved by the Works Council and, if necessary, by government approval. The 2012 JOA also assumes that each party will inform other parties of investigations or procedures relating to alleged violations of “anti-corruption laws and obligations” and, at the request of another party, provide additional information regarding this communication. Each party is also required to compensate other parties for any loss “related to the events underlying the events”, a party that acknowledges violations of anti-corruption laws and obligations or a final decision against that party (or its affiliates or representatives) in respect of a violation of anti-corruption laws and obligations.