Why partner with a major oil and gas company for unconventional resources ventures in Australia?

Abstract

With the increased activity in exploiting unconventional resources (CSG, shale gas, and shale oil) during the past few years in Australia, it has become increasingly common to see partnerships develop between small- and mid-cap Australian companies and major companies from the international oil and gas industry. Unconventional plays are usually large in areal extent and complex to interpret and develop; it becomes a daunting task for the smaller partner to progress alone. Some obscure benefits of this relationship can help the smaller Australian partner. The obvious advantages brought to the table by the major companies: Finance to fund projects and to give them credibility. Project management skills: critical skills are expensive and hard to find. Complete range of competencies in exploration, development, midstream, marketing, and product manufacturing. Existing business relationships: long-term supplier relationships and global purchasing power. Familiarity and experience of working in unconventional reservoirs. The obscure benefits that the major companies bring to the table: A highly trained unconventional resources team who know what data to gather and how to gather and interpret it correctly. Proprietary laboratories with highly trained personnel and advanced equipment. Large research and development teams who study technology and methodology changes. Well-vetted HSE programs with qualified teams. A public relations team to deal with public acceptance, education, and communications. The combined benefits are highly beneficial to the project.