Legal Guidance and Research / Experts / Anna Nerush
Anna Nerush#3284
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Anna Nerush

Haynes Boone

Anna's practice focuses on energy and natural resources sectors, including mining and upstream, midstream, and downstream oil and gas development projects, acquisitions and divestitures with projects ranging from unconventional resources, to offshore developments, pipeline and processing projects, and LNG, to petrochemicals and refining.

Practice Area

Panel

  • Contributing Author

Qualified Year

  • 2006

Membership

  • Law Society of England & Wales
  • Association of International Petroleum Negotiators (AIPN), Committee Member

Education

  • Brunel University, Law LLB (Hons)

1 Contributions by Anna Nerush

Oil and gas exploration farm-outs: consideration, Drill to Earn, PSC/JOA consents and assignment, default/reassignment, warranties and pre-completion undertakings, governing law, model forms
PRACTICE NOTES
Oil and gas exploration farm-outs: consideration, Drill to Earn, PSC/JOA consents and assignment, default/reassignment, warranties and pre-completion undertakings, governing law, model forms
Scope A farm-out is essentially a structure through which the holder of a participating interest in specified oil and gas assets (the Farmor) agrees to transfer a portion of that participating interest (the Assigned Interest) under a production sharing contract (the PSC) — or other host government arrangement conferring rights to hydrocarbons — to a third party (the Farmee). Unlike a conventional sale for cash alone, consideration in a farm-out typically combines a cash element with the Farmee’s commitment to satisfy defined work programme obligations. By farming out, the Farmor can introduce a partner to recover sunk costs, share ongoing funding requirements, bring in technical expertise and capacity that might otherwise be unavailable, and spread risk while participating in any potential upside from an exploration asset. A farm-out agreement (the FOA) mirrors many features of a standard sale and purchase agreement, including liability caps, pre-completion undertakings, warranties and indemnities, and the handling of third-party claims, with the principal distinction being the approach to consideration and the mechanics for transferring title. This Practice Note considers some of the key...
Energy
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