RE: Here's my best case scenario!?11 Nov 2025 12:35
In the oil and gas industry, a "farm-down" is a contractual agreement where an owner (the farmor) transfers a portion of its interest in a project to another party (the farmee). The farmee provides consideration, typically by funding a portion of the work program, such as drilling a well, and often reimbursing the farmor for some or all of their past costs. This allows the farmor to reduce its financial burden, share risk, and access technical expertise, while the farmee gains an interest in the project's potential future profits