HOUSTON--(BUSINESS WIRE)--The Board of Directors of the Association of International Petroleum Negotiators (AIPN) has published the 2014 Model International Unconventional Resources Operating Agreement (UROA).
“The 2014 UROA is the first model operating agreement covering joint operations in shale oil and gas, tight oil and gas, coalbed methane, and any other unconventional production methodologies involving wellbore operations,” said AIPN President John Bowman (King & Spalding). “The 2014 UROA is based on amendments to AIPN’s 2012 Model International Joint Operating Agreement (JOA) that take into account the evolving industry practices and issues unique to unconventional resources. Its publication is an important development for the oil and gas industry worldwide.”
AIPN’s JOA (most recent version published in 2012) is the most widely used joint operating agreement in the international oil and gas industry, and the 2014 UROA builds on the JOA. The UROA is the only model operating agreement that addresses issues unique to unconventional resources, such as pilot projects, sub-areas, multi-pad drilling and production, and other aspects of horizontal drilling. The UROA also includes customized modifications to conventional JOA provisions covering Scope, Operating Committee, Work Programs & Budget, Exclusive Operations and Disposition of Production.
Additionally, the UROA Guidance Notes highlight critical issues to be considered in negotiating and securing the applicable Granting Instruments, including the normally overlapping nature of the exploration, appraisal and development stages and the fact that the timeframe for development may often be considerably extended in unconventional operations as compared to conventional oil and gas projects. The Guidance Notes also address civil law issues to consider when using AIPN’s UROA in civil law jurisdictions.
“The publication of the 2014 AIPN UROA concludes two years of work by a drafting committee comprised of more than 160 industry representatives from 26 countries spread over five continents,” said William Pugh (Liskow & Lewis) AIPN’s Vice-President of Model Contracts.
The substantial industry-wide effort was led by co-chairs Jim Barnes (Barnes & Cascio), David Davies (Sterling Resources), and Jay Todesco (Nexen). Numerous meetings and workshops were held around the world in order to consult with industry representatives on the contents of the new UROA.
A workshop to introduce the 2014 UROA will be led by David Davies, October 8, in Budapest, Hungary, in conjunction with the AIPN International Conference.
The 2014 UROA is the latest in a series of hydrocarbon-related model contracts published by AIPN to facilitate the negotiation of energy transactions around the globe. The new AIPN UROA, Guidance Notes, and a lined comparison showing changes from the 2012 AIPN JOA, and other model contracts, can be found at AIPN’s Web site, www.aipn.org.
About AIPN (http://www.aipn.org)
AIPN is a not-for-profit association founded in 1981 to enhance the professionalism of international energy negotiators by providing valuable tools, educational programs and networking opportunities to its 4,500 members, located in more than 110 countries.
