Preferential right to operate

{
  "id": "MLC-T-OAG-002901",
  "term": "Preferential right to operate",
  "field": "Oil and gas",
  "definition": "A contractual right that a party reserves for itself or obtains from others to serve as operator of a lease, well, unit or concession. It is usually written into a farmout, assignment or joint operating agreement, and it ranks the holder ahead of other interest owners when an operator must be named. This differs from a preferential right to purchase, which concerns buying an interest rather than running operations.",
  "subject": "Oil and Gas Business",
  "url": "https://mlchart.com/terminology/oil-and-gas/preferential-right-to-operate/"
}