Petroleum Policy

7. International best practices

Industry initiatives

The Association of International Petroleum Negotiators (AIPN) has also developed model agreements which range from commercial contracts to host government agreements, such as the 2012 Joint Operating Agreement (JOA), the 2004 Farm-out Agreement, and the 2006 Unitisation and Unit Operating Agreement. The different types of agreements are explained below.

‘Good oilfield practice’

‘Good oilfield practice’ is an internationally recognised principle calling for sound and safe practices in daily upstream activities. This principle can be inserted into contracts or be contained in national laws, such as the 1982 Petroleum Submerged Lands Act of South Australia.

There are many other examples of international organisations that are important policy makers for the sector, including the: International Energy Agency (IEA); European Union; and Organization of Petroleum Exporting Countries (OPEC). For instance, the IEA and the 2009 EU Oil Stocks Directive require their members to maintain minimum stocks of crude oil and petroleum products for 90 days, in order to act as a buffer against any instances of tight supply.