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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:

  • Ownership

  • Shared economic goals

  • Use of quality management tools

  • Use of quantitative performance measures

  • Performance-based incentives

The last section discusses what is being done to take affiancing to the next level.

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