Offshore Operating Agreements


  • D. A. MacWilliam
  • R. C. Muir



Energy Law, Petroleum Law


The following article analyzes the offshore joint operating agreement in detail. Inter alia, the possible corporate forms Canadian company could use, and their respective advantages and disadvantages, are discussed. The authors consider the new concepts and different provisions and procedures that are necessary to deal with the special problems of offshore operations. Operatorship, with its corresponding rights and obligations, is discussed with emphasis on whether or not challenge clause should be included in the agreement. Independent operations, and the subsequent determination of penalties, are reviewed. The authors discuss problems involved with dis position of production, and in particular, the overlift-underlift clause. Other topics examined are offshore lease selection, sharing of platform costs, and arbitration clauses.