1. Practical Considerations on
Implementation of JOA provisions
in
Africa
October 2015

2. Consideration # 1: This is Africa…

3. This is Africa…

4. This is Africa…

5. This was Africa…

6. Consideration # 2: Granting instruments
LicenseConcession
Risk
Services
Agreement
PSC
?
Pure
Services
Agreements

7. 1 Investor
Question # 1: Where does the JOA come in?
Hydrocarbon Rights ► Host Country
Granting
Instrument
1 Investor Multiple
Investors
IOCsNOC ?
JOA

8. Question # 1: Where does the JOA come in?
Petroleum
Company
A
Petroleum
Company
B
Petroleum
Company
C
HOST
GOVERNMENT
Petroleum
Contract
JOA

9. Consideration # 3: JOA Models
JOA Model Form
AIPN CAPL NORWAY AMPLA AAPL API

10. Question # 2: Functioning of a JOA
JOA
PARTIES
Operator
Non-
Operators
Joint
Operating
Committee
DECISIONS

11. Question # 3: the LAW and the JOA
Does the
law
require a
JOA?
What’s
the
governing
law of the
JOA?
Petroleum
contract
Vs
JOA

12. Consideration # 4: National and Corporate
Culture
Angola Block
32
Angola Block
37/11

13. Question # 4: What can (and sometimes
does) go wrong?
Cash call defaults
Lack of agreement on operations
Different views on costs of goods, services, and
respective providers
A-B-C issues with local suppliers of goods and services

14. Question # 5: What happens next?
Suspension of rights
Forfeiture
Buy out
“Take over” of production
Withering
Security interest & foreclosure
R
O
F
R

15. Question # 6: Who pays?
Everyone else….

16. Obrigado
Rui.Amendoeira@mirandalawfirm.com

17. THANK YOU
Ricardo Alves Silva
Ricardo.Silva@mirandalawfirm.com