Burley (P2 December 2009)

Hi,

The question :
Burley owns a 10% interest in a pipeline, which is used to transport the oil from the offshore oil rig to a refinery on the land. Burley has joint control over pipeline and has to pay its share of the maintenance costs. Burley has the right to use 10% of the capacity of the pipeline.

The suggested answer showed that pipeline is a jointly controlled asset and it is not structured through a separate vehicle. Therefore, the arrangement is a joint operation.

May I know how can I figure out pipeline is not a separate vehicle?

Thank you.