Governance in the oil and gas industry

Abstract

One of the outcomes of the global financial crisis is the re-focus on the governance of organisations: do they understand the risks they are facing, and the efficiency and effectiveness of their control environment? Well run businesses achieve long term success. Effective governance structures protect brand and value propositions; they are also key to maintaining the trust of business partners and financial stakeholders. While the need for good governance is well understood, the achievement of good governance is still unattainable for some. Do you, as directors, executives and managers, understand the governance of your organisation? How have you shaped the governance of your organisation to enhance its value? Particularly in the following areas: Does the governance of the business model align with the strategy and do the respective divisions work towards a common purpose? Use of governance to drive value from activities in new markets, JVs, greenfield investments and M&A. Consideration of effective governance structures for major projects to achieve business, cost and desired timeframe outcomes. Use of good governance in determining capital structures and capital management, including cash flow and working capital management. Integration of governance, risks and compliance activities and their integration with business as usual activities. Do the risk and governance processes strengthen the resilience of your company, including its ability to evade, adapt end respond to new risks? These and other issues will be discussed to gain a perspective on how effective governance can help achieve long-term organisational success. We will draw on oil and gas case studies when considering these topics.