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.
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.
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.