There are several functions that characterize the JOA. The first of these features is the scope of the agreement. Joint ventures are usually created for a given project and are therefore limited in scope. The JOA will enter into force primarily after the granting of a licence and is based on an initial joint tendering agreement or a Common Interest Agreement (AMI). This initial agreement covers a particular area in which the parties will act jointly as a group to the exclusion of third parties. The scope of the JOA must therefore cover all common activities in this specific area, from licensing to termination or licensing. Thus, the JOA will generally contain a statement on the scope of the JOA and will formally create the joint venture between the parties with respect to joint resource exploration and development. This agreement is generally the only source of authority from which the parties deduce the right to take specific measures, as well as commitments relating to the joint venture. Pre-emption rights allow joint ventures of the joint venture to retain control of the business. This will be achieved by allowing the introduction of new joint venture partners. The existing partners of the joint venture reserve the right to acquire the interest of a seller joint venture partner who wishes to sell before the opportunity is given to an outsider willing to acquire the shares.

It is also the case that the JOA stipulates that the operator of the company must first be transferred for examination to members of a joint venture who do not have any activity before transmitting it to an external party who wishes to become an operator in the joint venture. It should be noted, however, that there are many problems in the development and application of pre-emption clauses, as well as the fact that they are increasingly unpopular. The most important feature of an JOA is its functionally relational existence, in other words, contractual performance obligations between co-risks. A typical JOA works on two levels; the day-to-day management of the activities within the company entrusted to the operator and the overall control and strategic decision-making by non-operators in their capacity as joint enterprise committee (Op-com). Joint Operating Agreement (JOA) is the common method by which companies partner to form a joint venture in oil and gas exploration and production. JOAs are widespread both in the UK Continental Shelf (UKCS) and around the world. The JOA is needed mainly because of the profitability of the oil and gas industry, a high-risk, high-cost industry with very high initial capital, but then, if successful, the rewards are very high (Styles 2012).