Joint study and bid agreement

Published by a ��Ƶ Energy expert

Practice notes

Joint study and bid agreement

Published by a ��Ƶ Energy expert

Practice notes

Introduction

A joint study and bid agreement (JSBA) is a contractual arrangement commonly utilised in the oil and gas industry where a number of parties are considering submitting a joint bid for a petroleum agreement.

Typically, international oil companies are offered oil and gas acreage by way of a host government bid round, whereby a host Government seeks to promote competition amongst industry participants for the award of certain oil and gas exploration and production rights. ‘Out of round’ or ad hoc applications and bidding can also occur. In most cases, the host government will provide details on the deadlines, technical requirements and procedures to be followed by interested oil companies as part of the bidding process.

The JSBA is a short-form Unincorporated joint venture that will set out the parameters within which the parties agree to share responsibility and cost for the study of a specific area as well as define the procedures for determining if a joint bid should be submitted, and if so on what terms. The JSBA should also set out the process by which

Jurisdiction(s):

United Kingdom

Key definition:

Scope definition

What does Scope mean?

The scope of works is a term which may be used generally in construction projects to describe the works that the contractor is expected to carry out. More specifically, ‘Scope’ is a defined term used in the NEC4 suite of contracts to specify and describe the work which the contractor is to undertake, together with any constraints on how it is to carry out such work. In the NEC3 suite of contracts, the term ‘works information’ wass used instead of Scope.

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