Level: Basic
TCM Section(s):
7.1. Project Scope and Execution Strategy Development
Venue: 2023 AACE International Conference & Expo
Abstract: As much as 71% of upstream investment is spent through alliance or joint venture relationships. [9, p.1] An oil and gas JV in its most basic form is fairly simple. A company will take on the operator role by managing the infrastructure in a given area, and another company will assume a non-operator role by providing capital so that each player is mutually benefited. [10,p.1] Non-operating partners are in the business to protect their investment. They have the expertise to challenge and assist the operator in making the project a success. This paper will delve into how companies can effectively use influential behaviors and strategies when a joint operating agreement can limit non-operating partners to few legal rights.
Developing an influential training plan is a critical strategy that a non-operating joint venture can incorporate. Many partners have realized that influence is the only real currency of a non-operator. Recommendations will be made throughout this paper to identify training and development opportunities for team members assigned to joint venture projects. A discussion will be had on designing the informal alliance by determining what kind of casual communication with the operator outside of formal platforms can be incorporated into the project team. There will be points made in building trust in relationships and behaviors that need to change to improve the level of trust. Another topic that will be covered is the strengths and weaknesses of a non-operator team and how to leverage their skills with the venture partners for optimum performance. The last topic explored in the paper is work styles and expectations. This will include a deep dive into behavioral personality styles and how they affect interactions.
TCM Section(s):
7.1. Project Scope and Execution Strategy Development
Venue: 2023 AACE International Conference & Expo
Abstract: As much as 71% of upstream investment is spent through alliance or joint venture relationships. [9, p.1] An oil and gas JV in its most basic form is fairly simple. A company will take on the operator role by managing the infrastructure in a given area, and another company will assume a non-operator role by providing capital so that each player is mutually benefited. [10,p.1] Non-operating partners are in the business to protect their investment. They have the expertise to challenge and assist the operator in making the project a success. This paper will delve into how companies can effectively use influential behaviors and strategies when a joint operating agreement can limit non-operating partners to few legal rights.
Developing an influential training plan is a critical strategy that a non-operating joint venture can incorporate. Many partners have realized that influence is the only real currency of a non-operator. Recommendations will be made throughout this paper to identify training and development opportunities for team members assigned to joint venture projects. A discussion will be had on designing the informal alliance by determining what kind of casual communication with the operator outside of formal platforms can be incorporated into the project team. There will be points made in building trust in relationships and behaviors that need to change to improve the level of trust. Another topic that will be covered is the strengths and weaknesses of a non-operator team and how to leverage their skills with the venture partners for optimum performance. The last topic explored in the paper is work styles and expectations. This will include a deep dive into behavioral personality styles and how they affect interactions.