In addition, as he added, it is necessary for a farmer to "design the farm with care and right." This means that the overall objective is crucial to meet a challenge, to preserve the reputation of the company. It can be defined as "the relationship with the government" or "a possible previous failure of the concession." There is the "farm-in assessment," where the work obligation will be to determine the size and nature of the deposit indicated and will include drilling a well or well. The main characteristic of the Farming-in party is to become a party to the common enterprise agreement, and also to be able to participate in any eventual development and to be able to influence development through the decision-making process defined in the joint enterprise contract. A farm-in contract is an agreement under which the owner of a lease or licence party (Farmor) grants the right to acquire a percentage of his shares in another party (Farmee) for exploration purposes. A fourth possible reason for companies to choose a farm-out path is that "some companies need financial support. In general, they have a good, but they do not have the means to continue to function. With respect to the North Sea, a number of farms-outs have taken place, called "fallow-acreage", similar to the marginal oil fields in Nigeria, where the Ministry of Trade and Industry is interested in promoting certain exploration activities. Farmout agreements work because the farmer usually receives a license once the field is developed and produces oil or gas, with the ability to turn royalties into some interest in the block`s work after being paid for the costs of drilling and producing the farm. This type of option is commonly known as the back-in after-payment (BIAPO) order.

Model form agreements such as the new AIPN model resulting from the international farm-out agreement can provide a very useful tool and a useful starting point to help the parties conduct effective and effective negotiations. In our experience, farm out agreements and other types of purchase and sale contracts can become tailored and tailored agreements, carefully crafted to take into account the particular circumstances of the transaction in question. There is also the "farm-in development." Business dynamics will determine who gets what in this type of farm, because it is essentially a sharing of risk and reward. The Farming-out party will have found that there are commercial oil and gas deposits, and it will sell part of its interest to the party in which the party is generally required to carry out all or part of the development work. A company may decide to enter into a farmout agreement with a third party if it wishes to maintain its interest in an exploration block or drilling surface, but wishes to reduce its risk or does not have the money to carry out the necessary transactions for those interests. Farm agreements give producers a chance to win that they would not otherwise have access to. Government approval may be required before a farmout agreement can be reached. The editors` notes on the text of a Ministry of Energy (before the acquisition by the Department of Trade and Industry) of November 27, 1990 entitled "New Statement on Guidelines for Oil and Gas Farm-in Deals" are described as follows: Another reason for a farm-out agreement is that "some companies are trying to get rid of the tails of their portfolios; they are the smaller assets with lower investment returns, a limited industry or high-cost assets. An example of such a justification is "what BP has done in the North Sea and what they are trying to do in the Gulf of Suez," he added.