Intellectual property in the petroleum production and exploration sector—the other hidden asset

Abstract

According to IBISWorld (2013), 7.7% of Australia’s A$11 trillion assets are natural resources and 5.4% is intellectual property. Despite this intellectual property is overlooked as a valuable asset in the oil and gas industry. As the means of extraction become more complex, the methods and tools needed for the purpose can give one company an edge over another. Intellectual property rights help to protect that competitive advantage. Companies need to have a strategy for the early identification, management and protection of this asset. Customers, contractors and joint venture partners can create intellectual property ownership issues that must also be identified and properly managed. This extended abstract provides: a framework for establishing a robust intellectual property management strategy for companies in the exploration and production sector; identification of key intellectual property assets of businesses in the sector; a review of industry specific challenges, such as the requirement under WA’s Petroleum and Geothermal Energy Resources (Environment) Regulations 2012 to disclose trade secrets and commercially sensitive material about downhole substances; and, consideration of model agreements used in the sector, such as the AMPLA Model Petroleum Exploration Joint Operating Agreement.