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Book Chapter

International Operations

Published:
January 01, 2000

Abstract

The tangible goal of any initial exploration program is to cost-effectively discover a profitable development opportunity and to position the company to maximize the recovery of costs and subsequent profits. The quality of the relationship that is established with the government is one of the most important intangible requirements for entry into a country that will impact the economics of a successful venture. Interdependence is a chosen attitude towards this business relationship that goes beyond “governmental relations” and recognizes that the contractor and government have accepted each other as partners to achieve more than could be achieved separately Each partner’s contribution is different but equal. As with any business relationship, the degree of success depends entirely upon the level of trust that can be established. The contractor who focuses on the relationship will engender trust by being trustworthy and communicative, which will greatly increase the profitability of the venture, as well as create new business and growth opportunities.

The contractor must also fulfill its long-term role as a good corporate partner and environmental steward in the local community to ensure lasting success. The decisions a contractor makes in the establishment of the local office, involvement of the government representatives, and execution of the work program indicate whether the relationship with the host government is viewed as a necessary evil or as an opportunity to forge a competitive advantage. Through this relationship, the contractor has the opportunity to become the operator and partner of choice in the chosen country.

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Contents

International Oil and Gas Ventures: A Business Perspective

George E. Kronman
George E. Kronman
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Don B. Felio
Don B. Felio
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Thomas E. O’Connor
Thomas E. O’Connor
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Mindy S. Kronman
Mindy S. Kronman
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American Association of Petroleum Geologists
ISBN electronic:
9781629810683
Publication date:
January 01, 2000

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