Alliancing and Partnerships: What we have Learned and Where We are Going

Abstract

Abstract Alliances and partnerships between oil and gas operators and service companies have regularly been reported in the literature over the last 15 years, suggesting they are becoming more common. They were initiated by innovative operators in the late 1980s and early 1990s as a means to increase efficiency and quality, reduce costs, access resources, or align interests (or a combination of these). These new business relationships have quickly been accepted by many service companies. Some alliances have succeeded, some have brought benefits to one party only, and some have failed. Enthusiasm for alliances and partnerships may have waned for some service companies, but a few have persevered, believing there is merit in many of the basic ideas and practices behind these efforts to leverage more mutual value from what can often be an adversarial relationship. This paper reports on alliancing data since 1990 culled from SPE-published papers. The role and structure of alliances, the operator's motives, and reported results are analysed to identify trends. From these trends, the future direction for this concept in terms of the type of project and operating company that will potentially most benefit from alliancing is considered.