Aipn Joint Operating Agreement (2012 Pdf)

The AIPN JOA is the most widely used joint enterprise agreement in the upstream international oil and gas industry. It was first published by the AIPN in 1990 and last revised in 2002. The 2012 JOA is more restrictive than the 2002 JOA in its requirements for a work programme and budget. As part of the 2012 JOA, the parties will agree in more detail on the content, sharing and approval of all information relating to joint actions. This is a response to concerns that operators are not providing adequate and timely information to non-operators. In particular, there are new provisions for work programs and budgets, which impose the content to which operators must comply and determine how and when approval from the Works Council should be granted to ensure that the operator is able to present the government`s work programme and budget when necessary under the host government contract. There are a number of optional provisions in the work programs and budget provisions, and the parties should ensure that the 2012 JOA is amended to meet their specific needs. With respect to the appropriate financial provision for future dismantling costs, the 2002 JOA required the parties to negotiate an appropriate security agreement, while the 2012 JOA contains a series of optional schedule E provisions to address this issue from the outset. Appendix E envisages the creation of a trust fund to which the parties must contribute each time the operator is created a cash appeal. Parties can provide a guarantee as an alternative to payment.

The only exception to the limitation of liability, which is an optional provision in the model but is normally heavily invoked by non-operators, is in the case of “gross negligence/intentional misconduct” committed by the operator`s “senior supervisory staff. The 2012 JOA adds some optional formulas for defining “senior monitoring staff,” but the content of the carve-out remains unchanged and there remains a very narrow exception. Even if the operator agrees to include it, the carve-out does not apply to consecutive or environmental damage, so that environmentally friendly costs remain, for example, under the common responsibility of all parties. Integrated project teams have been discussed and discussed over the years (including in previous JOA AIPN revisions). They are seen as an instrument for non-operational parties to actively participate in project operations and decision-making.

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