At the heart of any upstream oil and gas joint venture is the parties’ agreement to share in the costs of the joint operations to be undertaken. This is enshrined in the “pay now, dispute later” principle which underpins the payment mechanisms and the default procedures set out in joint operating agreements.
The next episode of our Navigating the Low Oil Price Environment podcast series looks specifically at payment defaults, remedies for these and steps which parties can take to avoid the splintering of their Joint Ventures.
The episode, hosted by Global Head of International Arbitration, Paula Hodges QC, and Senior Associate, Maguelonne de Brugiere, can be found here.
