Академический Документы
Профессиональный Документы
Культура Документы
licence and may be limited to other types of projects. If at a later date a nonconsenting party wishes to rejoin that part of the venture, it will normally have to
buy its way back in by picking up its share of the cost, commonly together with some
sort of time-based additional charge. Sole risk clauses are also limited to certain types
of projects depending on the phase of development of the field overall. The operator
will usually operate a sole risk project, particularly if joint property is used, and there
will be provisions to ensure that joint operations take priority. As with non-consent,
there will be penalties for rejoining the venture at a later time, commonly based on
a multiple of the original cost. Buying back into the venture at a multiple effectively
represents a risk premium to the sole risk parties which can be paid from cash or
production or a mixture of both. Finally, provisions for dealing with the sole risk area
when liaising with regulators and third parties will be included in the joint operating
agreement.
Sole risk and non-consent provisions are not universal in joint operating
agreements and in practice are often used as a means of leverage in negotiation
rather than for the practical operation of the field. They are useful as a hedge against
changing circumstances but need to be carefully reviewed so that, if used in practice,
they do not create more harm than good.
3.3
49