Addax Petroleum (fka AXC)

[midtieroil]

Why am I not the least bit surprised that the most basic form of virtually every oil exploration effort is not understood here at all. I have been involved in hundreds of Joint Ventures between oil companies and they all have Joint Operating agreements that are somewhat standardized and that clearly spell out the rights of each party. That is precisely what ERHC had with CEPSA. Oil and gas accounting 101.


http://www.ogfj.com/articles/print/volume-11/issue-10/features/joint-operating-agreements.html

The Joint Operating Agreement (JOA) in oil and gas industry is an underlying contractual framework of a Joint Venture (JV). The JOA is a contract where two or more parties agree to undertake a common task to explore and exploit an area for hydrocarbons.

As the name suggests, parties other than the operator are designated as "non-operator(s)." The most important duty of non-operator is to answer any cash-calls as the operation requires. Non- operators form part of the joint operating committee (JOC) which oversees the activities of operator. The voting rights of operators and non-operators in the JOC are as per the interest they hold in the JOA.