Oil & Gas UK unveils suite of model agreements

Oil & Gas UK has unveiled a suite of model agreements to help companies conclude deals quickly and efficiently.

Offshore staff

LONDON -- Oil & Gas UK has unveiled a suite of model agreements to help companies conclude deals quickly and efficiently. The documents will help simplify procedures and reduce costs in several areas of oil and gas operations, including asset transfer, gaining access to infrastructure, and in building new pipelines, the organization says.

The first of the new model agreements, the Confidentiality Agreement (CA), will provide a solution for companies to agree confidentiality arrangements when information is shared, particularly during the sale and transfer of assets and the gaining of third-party access to infrastructure.

A second model agreement, the Joint Operating Agreement (JOA), provides a basis on which co-venturers can manage shared operations on their license, from selection and duties of the operator to apportionment of rewards and liabilities. This recent update of past versions now reflects current UKCS practice and is consistent with the industry standard Decommissioning Security Agreement (DSA); this was previously known as the Decommissioning Cost Provision Deed (DCPD) and is being updated in light of the Energy Act 2008.

Two model agreements also being launched to help simplify procedures and reduce costs for companies building pipelines or conducting operations within close proximity of another party's assets, are the updated Pipeline Crossing Agreement (PCA) and the new Proximity Agreement (PA).

These documents complete the suite of model agreements developed as a result of the PILOT 'Changing Gear' initiative, which is aimed at promoting effective and timely deal-making within the UKCS.

02/16/2009

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