Licensing

Petroleum resources are typically owned by the government of the host country. In the USA most onshore (land) oil and gas rights (OGM) are owned by private individuals. Sometimes this is not the same person who owns the surface rights. In this case oil companies must negotiate terms for a lease of these rights with the individual who owns the OGM. In most nations the government issues licences to explore, develop and produce its oil and gas resources, which are typically administered by the oil ministry. There are several different types of licence. Typically oil companies operate in joint ventures to spread the risk, one of the companies in the partnership is designated the operator who actually supervises the work.