Joining COLL

The purpose of the Joint Venture is to provide an efficient and cost effective co-ordinated coastal shipping service for the Participants for the transportation of Petroleum Products from the Refinery to the Ports.
Clause 5 of the Joint Venture Agreement provides the process and terms upon which third parties may seek to join the COLL joint venture. This Clause is outlined below.
 

5. Additional Joint Venturers

5.1 General:

The introduction of a person (a “Candidate”) as a Participant and the terms and conditions of any such introduction including any amendments necessary or desirable to this Agreement requires the prior agreement of the Participants.
The Participants agree to:
a) consider in good faith any request by a Candidate to be admitted as a Participant to the Joint Venture; and
b) comply with and have regard to their statutory obligations individually and collectively as Participants to the Joint Venture when considering a request under this Clause.
 

5.2 Key Factors:

For the purposes of Clause 5.1, the factors to be considered by the Participants when considering whether or not to admit a Candidate as a Participant to the Joint Venture shall include:
a) whether the operations of a Candidate are consistent with the:
i. Joint Venture Purposes;
ii. manner in which effect is given to the Joint Venture Purposes, including as to the basis of charging for transportation of Petroleum Products; and
iii. rights and obligations of the Participants under this Agreement;
b) whether adequate Tanker Fleet capacity is available in the Joint Venture so that the introduction of a Candidate would not disrupt, or increase the cost of, the Services;
c) whether a Candidate establishes to the satisfaction of the Participants that a Candidate is financially capable of meeting its obligations under this Agreement; and
d) such other relevant and reasonable considerations determined by the Participants from time to time,
taking into account the Participants’ obligations under Clauses 5.1a and 5.1b.