Oil and Gas Joint Operating Agreements Basics

Summary

This practice note discusses oil and gas joint operating agreements. A joint operating agreement is a contract that governs how two or more co-interest holders in an oil and gas project explore for, develop, and produce hydrocarbons from a project area, abandon the project at the end of its life, and remedy the project site. This type of agreement governs the activities of multiple disciplines, including geology and geophysics, reservoir engineering, procurement, engineering, and construction, and is central to most oil and gas exploration and production project that involves more than one party. Most are based on forms that have evolved to deal with the peculiarities of the oil and gas industry in specific jurisdictions.