The Master Deed is a well established part of the legal framework of the oil and gas industry relating to asset transfers in the UKCS. The arrangements cover two areas: (i) pre-emption (the right of co-venturers in the field (or pipeline) to purchase the percentage interest that is for sale); and (ii) the process for transferring interests, including the standard documents to be used.
Developed by the Progressing Partnership Working Group, a subset of the Pilot Taskforce, the Master Deed was a result of industry and government’s examination of commercial and behavioural barriers to UKCS development. The review noted specific concerns relating to protracted negotiations and the ability of a co-venturer to purchase an interest ahead of a proposed purchaser, therefore it was agreed that the system ought to be amended. As such the Master Deed aims to:
- Standardise existing pre-emption provisions;
- Create pro-forma transfer arrangements;
- Reduce complexities around signature; and
- Allow greater certainty around the timing of completions.
LOGIC facilitates these transfers by performing the Administrator function within the Master Deed. You can find more information on the Master Deed in the General Guidance section of this website.