Alliances and Partnerships: Experience and Lessons Learned—A Service Company Perspective
Doug Cameron, Lance Davis, Dustin Free, Jerry Huchital, Fred Juon, Gordon Mowat, Denny O’Brien, Mike Trice, 2000. "Alliances and Partnerships: Experience and Lessons Learned—A Service Company Perspective", International Oil and Gas Ventures: A Business Perspective, George E. Kronman, Don B. Felio, Thomas E. O’Connor, Mindy S. Kronman
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This chapter provides information and case studies from several years of alliance experience. This experience and the lessons learned should serve as practical knowledge to both assist in the initiation of alliance business relationships and/or to ensure the success and longevity of existing alliance business relationships.
The chapter begins with a discussion of the benefits of alliances as applied to the international oil and gas industry. These benefits include reduced cycle times, reduced field development costs, enhanced well production, improved resource optimization, and lower learning costs. This is followed by a discussion of the equity issue. Should service providers enter into equity arrangements with their traditional customers, oil and gas companies?
Six examples of successful alliances are then presented. These alliance experiences demonstrate the wide variety of alliances in the international environment (U.S. land, offshore Canada, Venezuela, North Sea, plus data management examples with PDVSA [Petróleos de Venezuela S. A.] and Mobil).
Lessons learned concentrate on five critical success factors:
Shared economic goals
Use of quality management tools
Use of quantitative performance measures
The last section discusses what is being done to take affiancing to the next level.
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A “one-stop” business view on how to succeed in international exploration and production. Success in the international upstream arena requires more than the technical ability to find oil and gas. Relationships with governments and people, mutually beneficial contracts, workable strategies, and implementation plans are necessary to build strong, mutually beneficial, and profitable ventures. Key components that drive exploration and production in the global environment are examined. Specific topics include negotiating for success, contracts, the role of technology in international strategies, cross-cultural relationships, alliances, and international upstream financing. Authors from around the world, representing industry, governments, national oil companies, consultants, and academia, contributed their perspectives. Views are provided from both sides of the negotiating table, the corporate boardroom, the resident manager, the explorationist, the businessman, and the theoretician. Geoscientists, engineers, and negotiators, who are, or would like to be, involved in the global energy business will find this collection an important reference.