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.