Oil & Gas Joint Venture Agreement

The launch of a new business in the oil and gas sector will be driven in large part by the legal agreements that the parties enter into that will direct this new business venture, such that it is extremely important that these contractual arrangements need to be clearly defined and established. Such a contract needs to be appropriately negotiated and drafted such that each side is properly protected and capable of realize the most from this new business venture (while having the capacity to resolve problems and settle disputes).

What should be noted is that joint venture agreements need to be particularized to the circumstances, given the unique aspects of each contractual relationship. Particular aspects seen in such contracts have included:

"Pooling of Resources. The Members hereby agree to pool their resources and to coordinate their efforts for the preparation and submission of a Proposal in respect of the Project and for the negotiation and execution of the xxxx Contract, and, in the event that they are awarded the xxxx Contract, the execution of the Tasks which may be entrusted to them by said contract."

"Decisions. Any decision to be made by the Management Committee shall be unanimous. It shall be recorded in minutes prepared by the General Manager to be delivered to the Representatives of the Members within 10 days following the meeting. The minutes shall be considered to have been approved, unless one of the persons in charge shall object thereto within 10 days following receipt thereof. A written decision signed by all the representatives of the Members shall be as effective as a decision made at a meeting of the Management Committee. Should the Members not agree with respect to the decision to be reached, they shall resort to the dispute resolution process provided for in Section xxx of the Agreement."

"Collection and Distribution. The General Manager shall be responsible for the collection of all amounts invoiced for the performance of the Tasks. If the amount is one owing to a Subcontractor by the Members, he shall receive it in the trust account and shall enquire of the Members which among them solicited the services of the Subcontractor and shall pay the amount into the account of the Member in question, who shall then pay the amount owing to the contractor solicited. If the amount is one owing to a Member, he shall receive such amount in the separate account of the Member. If the amount is one owing to one or several Subcontractors and one or several Members, such sum shall be received in the trust account and redistributed immediately thereafter to the separate account of each of the Members in question, who shall then ensure the payment of the Subcontractors whose services they shall have solicited in respect of the Tasks."

For more information on the legal services of Neufeld Legal P.C. with respect to launching your new business in the oil & gas sector or to schedule an appointment, contact our lead lawyer Christopher Neufeld at Christopher@OilGasLawyer.ca or 403-400-4092.

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Agreements pertaining to the launch of an oil and gas business start-up.

Unanimous Shareholder Agreement

Joint Venture Agreement

General Partnership Agreement

Pre-Incorporation Partnership Agreement

Joint Ownership and Management Agreement