The JOA 2012 contains a new regulatory framework for decommissioning. The JOA 2012 requires the Operating Committee to approve an estimated decommissioning programme and budget, with the submission of any draft development plan for the decommissioning of installations and/or equipment acquired or having contributed to the joint account. If necessary, the operator must take steps to obtain the approval by the competent Government of such a decommissioning program and budget. However, the specific conditions of each JOA should be assessed in depth and modified in the light of the legal circumstances and the commercial, legal and technical requirements of the parties to the joint venture and the asset concerned. This applies in particular to work programmes and budgets, with new provisions imposing the content with which operators must comply and defining how and when the agreement of the operating committee is to be given in order to ensure that the operator is able to present the work programme and budget to the government when necessary under the corresponding production sharing contract. There is also a new optional provision according to which, for each draft urban plan, an estimated dismantling programme and budget must be submitted to the works council for consideration (optional Article 6.5). In the event of authorization, the operator is obliged to take all necessary measures to obtain the approval of the Government of the dismantling work programme and the budget. „The 2012 version is the first revision of the OFFICIAL IY JOA in 10 years,“ said Pablo Alliani, President of the fninga (Alliani & Bruzzon Abogados). „The new version takes into account industry practices that have evolved over the past decade. Its publication is an important development for the international oil industry. The OJA 2012 also extends the expenditure approval procedure (TFA) provided for in Article 6.8. It contains other provisions to allow parties to choose: Houston (March 15, 2012) – The Board of Directors of the Association of International Petroleum Negotiators (AIPN) has released the 2012 version of its Model International Joint Operating Agreement (JOA). The 2002 JOA limited the possibility for non-operators to withdraw an operator for serious breach of its obligations if one or more of the non-operators of a joint venture were also related undertakings of the operator. In such circumstances, unrelated non-operators have been severely disadvantaged.
When JOA`s editorial board worked on the revisions in 2012, the „current realities“ of international oil and gas projects came up against several important events that are redefining the business approach to the sector, including the merger of financial markets in 2008, the Macondo-Blowout in 2010 and the introduction of the UK Bribery Act in 2010. The editorial board struggled with these new realities and worked to adapt the JOA model to meet the risks of global industry developments, but still reflects current international practice. With the increasing maturity of oil and gas fields, host governments are increasingly focusing on implementing measures to close offshore facilities. This is also a problem for joint ventures, which inevitably have to bear the cost of such dismantling. The main objective of the new provisions of the 2012 JOA is to give more weight to decommissioning and to ensure that a partner company does not bear a disproportionate share of these costs. Therefore, the OJA 2012 expands in particular the options for dismantling security rights contained in the OJA 2002. Although not included in the text of the 2012 JOA, the OJA 2012 Guidance Notes contain a proposal to extend the traditional provisions of the 2012 JOA with regard to the participation of a Government Oil & Gas Company or a NOC. . . .