The Joint Study and Bid Agreement (JSBA) is a contractual agreement commonly used in the international oil and gas industry, under which several parties wish to jointly review a specific license area in order to ultimately submit a joint offer for the license/concession outside of a registered joint venture vehicle. For more information on licences/concessions, see practice note: Basic oil agreements – concessions, production sharing contracts and service contracts. BAHRAIN`s Oil and Gas Holding Co and Chevron Middle East have signed an agreement to carry out a joint study assessing future gas demand in the kingdom and identifying potential sources of supply, the state-owned BNA news agency reported on Wednesday. This practice note provides an introduction to interconnection agreements and their main provisions. This practice notice:•explains the purpose of an interconnection agreement and when an interconnection agreement would be used instead of an instrument of priority or subordination•provides links to The content of a JSBA is always a product of the time available before the licence application is filed (which, in the case of ukcs, is generally 90 days from the start of the licence cycle). The JSBA is usually designed for an early finish line – licensing. Instead, the parties should be as detailed as possible within the JSBA so that the joint venture between the consortium members can be operated until the JOA agreement. In addition, the parties should be aware that there may be mutual interest agreements (“AMIA”) that could bind potential consortium members. The impact of these existing agreements on the composition of the envisaged consortium needs to be carefully considered. He reaffirmed that the agreements have strengthened cooperation with Eni and ensured the exchange of information and expertise in common areas within the framework of development programmes in the oil, gas and energy sectors. BNA also said Bahrain`s oil minister welcomed the deal and said he would support the Kingdom`s efforts to develop the LNG sector. A JSBA is preceded by project documents such as a Production Sharing Agreement (PSC) or a Joint Operating Agreement (JSA) that the parties to the JSBA typically enter into if the offer is successful.
Before JSBA negotiations begin, the parties should assess what they are offering the consortium (as well as what they expect from others). These discussions involve, without exception, the disclosure of economically sensitive information, so the parties must engage in a confidentiality agreement before engaging in in-depth discussions. It may be that one party in particular brings much more value to the consortium than the others when it alone has certain quality information. In order to enable it to communicate such information to the consortium, it may seek a higher level of comfort in protecting its confidentiality than is usually the case in a standard trust agreement, for example by requiring certain compensation from the parties. The parties should therefore take into account that a debate may take place during the negotiation of the confidentiality agreement and the parties who have to disclose less (or not) confidential information will therefore be less concerned about the confidential aspects of their relationship. . . .