For more than 20 years, AIPN JOA has been a benchmark for international oil and gas joint venture agreements. It is now one of the largest and most widespread contracts in the oil and gas industry. AIPN JOA strives to provide a resource base for what is « standard. » 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. Any decision to close facilities and/or facilities is subject to the approval of the Works Council (Article 10.1.A). In the event of authorization, one of the parties may choose to take over the facilities and/or equipment retained for use on the contractual territory as an exclusive operation and to cover any guarantees for the closing costs. 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. 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 Association of International Petroleum Negotiators (AIPN) joint operating agreement (JOA) model was first adopted in 1990 and has been the subject of a series of subsequent revisions. It is the most widespread (although not always the most popular) common enterprise agreement in international conventional oil and gas projects today. First, the 2012 JOA aims to clarify and improve the existing provisions of the 2002 JOA. In the 2012 JOA, the JOA uses broadly defined terms that reflect current industry practice and, unlike the 2002 JOA, commonly used words and phrases are now defined in Article 1 of the 2012 JOA. The 2012 JOA was renamed the International`s Joint Operating Agreement, while the JOA in 2002 was somewhat confused as the « international operating agreement ». As oil and gas deposits have matured, host governments are increasingly focusing on the need to ensure that offshore facilities are dismantled. This is also a problem for joint ventures, as they inevitably have to bear the costs of such dismantling. The main objective of the new provisions of the 2012 JOA is to place greater emphasis on decommissioning and to ensure that a partner does not bear a disproportionate share of these costs. That`s why the 2012 JOA is particularly expanding the decommissioning security options contained in the 2002 JOA.