Approval of new worldwide petroleum asset sale and purchase agreement
Even in these times of coronavirus pandemic and lowered commodity prices and demand, our team continues to be busy both in the UK and internationally.
And we can also celebrate a positive milestone marking the end of three years’ work, involving our team.
The worldwide Association of International Petroleum Negotiators’ (AIPN) board recently announced the new model asset sale and purchase agreement (ASPA).
AIPN model contracts are used around the world as a resource for negotiators to fashion sound contractual solutions to complex challenges.
Background and process
The AIPN is the worldwide professional body for those of all disciplines who negotiate international petroleum contracts.
One of the AIPN`s functions is to draft model petroleum contracts that members can use in commercial transactions and negotiations. For example, the AIPN joint operating agreement is very widely used in international upstream projects.
The AIPN commissions new model contracts by appointing a co-chair or co-chairs who lead a voluntary committee of its members to discuss, draft and revise the model contract.
This is a detailed and demanding process that typically takes years.
Once the draft has met with widespread approval, the co-chair and committee will proceed to draft notes to help users.
Ultimately, after widespread comment, the draft model contract and notes will be scrutinised and approved by the AIPN’s model contracts committee and, ultimately, by the worldwide AIPN board of directors.
And it's now available to download from the AIPN website, free of charge if you’re a member.