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What is a Non-operator?

Non-operator

A non-operator or non-op is a junior participant of a joint venture formed between two E&P companies. A non-op has a minor role in the field management and joint venture operations but shares the revenues and expenses of the joint venture.

How it’s important to us

The non-op model can bring value (i.e. from the knowledge and technology transfer) and mitigate operational risks if the operator is competent. However, it can be a risky business model in some cases, such as a change in tax structure by a host government or diverging strategies.

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