Transfer Of Operatorship Agreement

Transfer Of Operatorship Agreement

Oil and Gas UK Ltd («OGUK») published a JOA model in 2009 designed to reflect the usual practice of the ukcs industry at the time and to ensure consistency with the provisions of the standard Oil and Gas UK dismantling safety agreement («DSA») 1, often used with the JOA at the appropriate time for the development of the licence. The OGUK JOA is traditionally preferred as a model for use on the UKCS. However, given the international nature of the UKCS joint ventures, the parties to the joint venture choose to use other forms of JoA models with which they are more familiar with their negotiations as the basis for their negotiations and to adopt a hybrid approach combining the positions of more than one JOA model. The following instructions apply only to the designation of land operators in accordance with the standard clauses in the licence. Guidelines for operator activities during exploration and pipeline operations are available here: given the release of «immediate alternative provisions» in enterprise agreements and the current increased risk of further natural resource bankruptcies, non-operators should respect how and when they can apply such provisions in light of Canadian insolvency legislation. The ccaA`s primary objective remains the restructuring of the insolvent company. For this reason, in situations similar to those in Norcen, courts may be more inclined to retain the position of a debtor company, at least temporarily, in order to better assist it in withdrawing from the CCAA procedure. During the duration of the JOA, a party may transfer its shares in the license, the JOA and the larger project to a third party in order to realize a portion of the value of the asset. The JOA should anticipate such an event. The parties must consider the following: It is also important to note that at Bumper Eagle he was able to obtain an agreement from the recipient, not to try to transfer the operator to the successful bidder. Oil and gas development agreements generally contemplate the immediate replacement of the operator by another holder of operating interests in the event of the operator`s insolvency.

However, these provisions often become virtually unworkable because, as soon as proceedings are initiated under the Association-Creditor Agreements Act, RSC 1970, c C-25 [CCAA] or the Bankruptcy and Insolvency Act, RSC 1985, c B-3 [BIA], stays are imposed, preventing creditors from appealing against the insolvent operator, including these «immediate replacement» provisions.

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