The effects of default, transfer, and withdrawal provisions on JOA exits: should I stay or should I go?

Pereira, Eduardo; Pappa, Marianthi

Abstract

Default, transfer of interest or rights, and withdrawal are prima facie three distinct clauses in a Joint Operating Agreement (JOA). They serve different purposes and are subject to different conditions. But at the same time, they may all lead to a party’s exit from the JOA. Although these concepts have been long analysed in theory, practice, and jurisprudence, the extent to which they all fit together in the same context remains unclear. Important questions arise about their interconnection, and with regards to compensation and liability of the departing party. The answer to these questions may ultimately determine the consequences of each ‘’exit strategy’’ and which way would be the best if a member contemplates leaving the JOA. By shedding light to the above topic, this analysis seeks to inform theorists and professionals alike.

Citation

Pereira, E., & Pappa, M. (2019). The effects of default, transfer, and withdrawal provisions on JOA exits: should I stay or should I go?. International Energy Law Review, 2019(2), 39-47

• Journal Article Type: Article
• Acceptance Date: Feb 7, 2019
• Publication Date: 2019
• Deposit Date: Feb 7, 2019
• Publicly Available Date: Jan 1, 2021
• Journal: International Energy Law Review
• Print ISSN: 1757-4404
• Publisher: Sweet and Maxwell
• Peer Reviewed: Peer Reviewed
• Volume: 2019
• Issue: 2
• Pages: 39-47
• Keywords: joint operating agreement; default; transfer of interest or rights; withdrawal; compensation; liability
• Public URL: https://nottingham-repository.worktribe.com/output/1527198
• Additional Information: This is a pre-copyedited, author-produced version of an article accepted for publication in International Energy Law Review following peer review. The definitive published version The effects of default, transfer, and withdrawal provisions on JOA exits: should I stay or should I go?; Dr Eduardo G. Pereira, Dr Marianthi Pappa; I.E.L.R. 2019, 2, 39-47 is available online on Westlaw UK.