FARM OUT
Definition
Jargon, Not a TLA
farm out means Jargon, not a TLA. Commercial arrangement where a licence holder contracts with a third party for the third part to carry out work on the licence e.g. drill an exploration well and by so doing the third…
Commercial arrangement where a licence holder contracts with a third party for the third part to carry out work on the licence e.g. drill an exploration well and by so doing the third parties earns an interest in the licence. From the perspective of the existing licence holder he is "farming out" an interest in the licence; the third party is "farming in"
✓ Verified term