CARRIED INTEREST

carried interest.Oil & gas. In an oil-and-gas lease, a fractional interest that is free of some or all costs of exploring, drilling, and completing the well. • The owner of a carried interest may earn royalties on production but does not have a working interest, at least until all costs are recouped by the working-interest owner or owners, and often until some multiple of those costs is paid. [Blacks Law 8th]