Division Of Interest (DOI)
DOI is frequently-used as an umbrella term to capture the joint ownership and how responsibilities and rewards for a given oil & gas asset (i.e. well) are split. Who pays for what portion of the costs and who is entitled to the produced hydrocarbons are dictated by a well’s DOI.
How it’s important to us
It is important to be familiar with the term “DOI” as it is often used when discussing a well’s production, profitability and costs incurred. Frequently, a company only cares about its “net” interests in a well’s production (the share to which they are entitled), as determined by their revenue interest. Often times, accompanied with this term, is the “ownership deck” for a given well. Parties are typically interested in their GWI (gross working interest) and NRI (net revenue interest) in a given well. DOIs are date-effective and the percentages and parties involved change over the life of a well.