Object name

Description

Joint Operating Agreement (JOA)

A JOA is a formal agreement that specifies the conditions for a joint operation. This covers the working interests of the partners and their properties, as well as overheads and penalties.

Joint Venture

This is an association of two or more partners, formed to share a venture’s risks, costs, and revenues. Each partner’s share is proportional to their working interest in the venture.

Equity Type

The JOA has different development stages, such as engineering and design, construction, and production. Different partners participate at each stage. JVA manages the different stages by using equity types. An equity type explains a particular association of partners. This definition may be related to time, phase or purpose and is linked with a specific equity group.

Equity Group

An equity group represents an association of venture partners and their working interests. An equity group may consist of all or some of the venture partners.

Joint Venture Partner

This is a partner mentioned in the JOA with a working interest in a venture. One partner, called the operator, manages the operation. The remaining non-operating partners share expenses and revenues.

Recovery and Billing Indicators

You assign a recovery indicator to a cost object to indicate whether or not expenses, posted using the cost object, are billable to JVA partners. You assign billable costs to the appropriate partners. Non-billable expenses are assigned to the operator. Billing indicators are assigned to billable postings and identify the type of posting involved, including cash call, normal expenditure, and audit adjustment to a particular partner account.