Introduction

Historically oil and gas upstream activities were largely open for foreign investments. However, the process of nationalization throughout the last decades concentrated the vast majority of natural resources with NOCs. Therefore, IOCs are far more likely to deal with NOCs as their partner in JOA in the present than in the past.

The Joint Operating Agreement was meant to be a private document to regulate the relationship of the private investors. Recent changes in local laws established requirement for NOCs participation in oil and gas projects as "partners" in those private agreements. As result JOA currently often has NOC as its party to agreement. By having NOC as its party JOA acquires certain specific characteristics. This special edition will address the key issues between an IOC and NOC within a JOA.