Author: Brad Grant
This article explores the concept of a joint venture and the use of joint venture agreements in the Canadian energy industry. The discussion is particularly timely as there have been a number of significant joint ventures in the Canadian energy industry, particularly with respect to Asia Pacific investors who have spent billions of dollars to lock up parts of Canada’s oil and gas reserves. With a growing demand for energy among Asia Pacific countries, the article suggests that joint ventures will continue to be significant in the development of Canada’s energy industry. This article provides an overview of the different forms of joint ventures (the corporation, partnership, and contractual joint venture) and the risks and benefits associated with each. This article also addresses some of the key issues with respect to joint ventures generally.