Joint Study and Bid Agreement


This practice note discusses the joint study and bid agreement (JSBA), a contractual arrangement commonly used in the international oil and gas industry where multiple parties wish to jointly study a particular license area with a view to ultimately submitting a joint bid for the license/concession, outside of an incorporated joint venture vehicle. A JSBA precedes project documents such as a production sharing contract (PSC) or a joint operating agreement (JOA), which the parties to the JSBA will typically enter into in the event of a successful bid.