What is a farm in farm out agreement?
Related Content. Also known as a farm-in agreement. A type of contract through which an investor (a farmee) may acquire an interest in an upstream project from an existing project participant (a farmor). It is typically used in the exploration or development stage of a project.
What does farm out mean in oil and gas?
A farmout is the assignment of part or all of an oil, natural gas, or mineral interest to a third party for development. The interest may be in any agreed-upon form, such as exploration blocks or drilling acreage.
What is a farm out process?
A farm-out is, in effect, a mechanism pursuant to which the owner of a participating interest in certain oil and gas assets (the Farmor) agrees to divest a percentage of its participating interest (the Assigned Interest) under a production sharing contract (the PSC) (or another host government agreement granting rights …
What does the term farm out mean?
transitive verb. 1 : to turn over for performance by another usually under contract farm out a job. 2a : to put (someone, such as a child) into the hands of another for care. b : to send (an athlete, such as a baseball player) to a farm team.
What is the difference between farm-in and farm-out?
The transfers of interest are generally made in return for exploration or other commitments, for exchanges of licence interests, or for cash”. You will see therefore that farming-in is a way of acquiring a licence interest and, conversely, farming-out is a way of disposing of a licence interest.
What is another word for farm-out?
In this page you can discover 10 synonyms, antonyms, idiomatic expressions, and related words for farm-out, like: allot, lease, rent, subcontract, distribute, farm, hire out, job, rent-out and sublet.
What is the difference between farm in and farm-out?
Where did the term farmed out come from?
farm out, to To assign to an outsider, to subcontract. This term, which originated in the mid-1600s, at that time meant to lease land.
What is another word for farm out?
What is an earn in agreement?
An earnout agreement, made between a business’s buyer and seller, is paid by the buyer to the seller after meeting certain performance targets after the sale. This type of agreement, serving as a contingency payment, may be paid in company stock or cash.
What does to rat out mean?
DEFINITIONS1. 1. to reveal incriminating or embarrassing information about someone. The news reporter ratted out the people who were involved with the scandal.
Is an earn out debt?
If a financing agreement has a GAAP-based definition of Debt, i.e., it provides that Debt includes“all obligations that would be required to be reflected as a liability on the balance sheet in accordance with GAAP,” then an earnout obligation would necessarily be included in any determination of Debt.
What is a farm out agreement?
Jump to navigation Jump to search. In the oil and gas industry, a farmout agreement is an agreement entered into by the owner of one or more mineral leases, called the “farmor”, and another company who wishes to obtain a percentage of ownership of that lease or leases in exchange for providing services, called the “farmee.”.
What is farm-in agreement?
One day – One Word. Farm-in-Agreement. Definition. Farm-in-Agreement is a contract signed between two companies, the Farmor and the Farmee, where the Farmor is the owner of the acreage and the Farmee is willing to perform the drilling and exploration in the acreage of the Farmor.
What is a farm out?
Definition of ‘farm out’. farm out. If you say that someone farms out work, especially work that you would normally expect them to do themselves, you mean that they give it to other people to do.