Abstract
The article provides guidance about risk allotment regarding to joint ventures operating in energy industry. Energy industry has been overwhelmed by risk, in compare to other branches. To diminish the chance of failure on international partnership, risk management techniques should be based on methodological principals. The paper presents outlook to risk in response to the stage of a joint project. The methodological approach is structured in accordance with risk group hierarchy received with Delphi evaluation method. Thus, joint ventures parties are allowed to complete an effective review in order to implement risk reduction actions.
Highlights
IntroductionHIS Consulting data demonstrates the prevalence of joint ventures in oil and gas sector (Chart 1) [1]
A joint venture is still highly used business model in energy industry worldwide
The research question was to find an approach for risk assignment refers to joint ventures tailored to energy industry
Summary
HIS Consulting data demonstrates the prevalence of joint ventures in oil and gas sector (Chart 1) [1]. As it is evident from the chart, the overall production by joint ventures within International energy companies is estimated in more 2 millions barrels of oil equivalent per day. That is the particularities of the branch that make joint entrepreneurship so attractive in energy industry. The partners combine their strongest individual components, such as the right to use national resources of recipient country and investing technologies for energy resources exploration. According to statistical information two third of the joint ventures in countries with high level of risk conduct activities in the commodity sector, and three quarters of the joint ventures operate in country with low risk level [3]
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