Joint study and bid agreement
Produced in partnership with Anna Nerush of Haynes Boone

The following Energy practice note produced in partnership with Anna Nerush of Haynes Boone provides comprehensive and up to date legal information covering:

  • Joint study and bid agreement
  • Scope
  • Model forms and key terms
  • Operator and responsibilities of the parties
  • Disclosure of information
  • Participation interests
  • Application procedure and negotiations
  • Costs, invoicing and audit
  • Exclusivity, withdrawal, default and termination

Joint study and bid agreement

Scope

The joint study and bid agreement (JSBA) is a contractual arrangement commonly used in the international oil and gas industry, where multiple parties wish to jointly study a particular licence area with a view to ultimately submitting a joint bid for the licence/concession, outside of an incorporated joint venture vehicle. For more information on licences/concessions, see Practice Note: Understanding upstream petroleum agreements—concessions, production sharing contracts and service contracts.

A JSBA precedes project documents such as, a production sharing contract (PSC) or a joint operating agreement (JOA), which the parties to the JSBA will typically enter into in the event of a successful bid.

The JSBA is, in its simplest form, a short-term unincorporated joint venture arrangement, the purpose of which is to govern the relationship of the parties prior to award of the licence/concession. The JSBA will usually provide for a swift execution of a JOA once a PSC is granted by the government. In order to save time negotiating a JOA the parties may agree and set out certain key principles as part of the JSBA and they may, furthermore agree that such principles shall govern joint operations on a temporary basis until a full JOA is executed. However, the parties should take care of choosing to rely on JOA principles for any considerable period as any key principles agreed between

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