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Aipn 2012 Model Joint Operating Agreement

The 2012 JOA also extends the Article 6.8 expenditure authorisation procedure. It provides for alternative provisions that the parties can choose: the 2012 JOA expands the decommissioning security options contained in the 2002 JOA. A new optional provision requires the operator to submit a draft dismantling program and a budget to non-operators at the time of the presentation of the draft development plan. Detritus as default assistance may be unenforceable in some legal systems, including Australia, since courts may consider the forced transfer of any interest of a party to be a sanction. The “refusing” clause may be found to be more favourable by the Australian courts, as the default results in a loss of the interest of the delay in relation to the delay, the elimination of the risk of penalty. However, the decomposition clauses are not without problems; As JOA 2012 shows, they are complex to design and apply and can serve as a runaway for a party wishing to reduce its commitments, particularly with regard to less productive assets. This includes work programmes and budgets, including new provisions that prescribe content to which operators must stick to it, and specifying how and when the approval of 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 corresponding production sharing contract. An optional provision has been added to the 2012 JOA, allowing the operator to transfer its obligations as an operator to a company linked to a subsidiary under certain customary conditions (for example. B the government`s agreement), provided that the transferee has sufficient financial and technical capacity to perform the operator`s duties. If the assignee does not have this capacity, the operator may provide a guarantee of service for the signatory`s obligations or grant any of the other related companies in the Deren facility (provided that the company providing this guarantee has the necessary technical and financial capacity). Another theme of the 2012 JOA is that the parties will approve in more detail the content, disclosure 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. Provisions for the presentation of work programmes and budgets, evaluation, development and production plans will be expanded under the 2012 JOA, with the possibility of including costs, resources and staff estimates (Article 6.1.C). There are new provisions for the procedure for submitting work programmes and budgets for approval by the government, either after approval by the Works Council or when the Works Council has not reached a decision within the time limit in the absence of such authorization (Article 6.1.G). This new provision reduces the risk that the government`s proposal will be rejected by delays by the Works Council and increases the pressure on non-operators to adopt a work programme and budget.