The deal is done, the negotiators have gone home, and now it is time to implement the joint venture to achieve success for all parties. It sounds easy: just follow the contract and operating agreement. Or, is it?
Worldwide exploration and production spending will exceed $190 billion this year. With over 75% being spent outside the US, joint ventures play a dominant role in international upstream investments and success or failure can have a direct impact on a company’s bottom line.
Is your joint venture implementation on track? Does the shareholder board have agreement on a clear set of objectives? Is the organizational structure functioning effectively? Are the different company secondees performing seamlessly as a team within the JV? Is technology transfer occurring? Are equipment and service tender awards meeting project requirements? What are some suggestions for improvement?
Interviews conducted with executives and project management from International Oil Companies and National Oil Companies involved in joint ventures revealed different perspectives as well as varying definitions of success. One thing is clear: joint ventures are evolving and the expectation bar is being raised. Is your company keeping up