Case studies: Hold Your Ground

Client: North Sea Client
Date: 20 Feb 2017

Project Summary

In a market in which commodity prices are set to remain stagnant more and more operators are being forced to consider the cards in their hand, choosing and discarding is always a twitchy move. In a game in which operators have being used to feeling nervous about which card to play next the proposition of having to discard licenses under the pressures of the incumbent Oil and Gas Authority (OGA hereafter) are worries and commands a skill set that personnel are not a kin to. The notion that the organisation is not ready to commit significant funds to in an attempt to expand their already profitable and sustainable business model is palpable for most E&P players, this is a routine script that is passed between business unit and HQ. Let’s remind ourselves, I feel a Dilbert cartoon coming on; HQ deliver the company wide expectations in the form of a business unit target linked to something nobody cares about… money in the form of bonuses. Business unit leaders scratch their heads and say ‘we have a chance of achieving it this coming year but a new business opportunity would indeed give greater leeway. The plan is hatched and cleaned sufficiently that it is without spot or wrinkle and then it sets sail on the voyage up “the chain” of command. It must fit the aspirations of all those links in the chain, but that is a discussion for another day. So provided it does get traction at the top there is always ‘something’ that the top know about that the rest of us don’t; such as, there is no money in the bank account since the senior executive offsite collaboration event! Excuse my elaboration, but the long and the short of it is that asking to commit to well thought out projects that are in our basket or in other words in which the license is owned and the general consensus is that it is just about timing and committing at the right time is something that E&P operators are very used to.

Project details

In a market in which commodity prices are set to remain stagnant more and more operators are being forced to consider the cards in their hand, choosing and discarding is always a twitchy move. In a game in which operators have being used to feeling nervous about which card to play next the proposition of having to discard licenses under the pressures of the incumbent Oil and Gas Authority (OGA hereafter) are worries and commands a skill set that personnel are not a kin to. The notion that the organisation is not ready to commit significant funds to in an attempt to expand their already profitable and sustainable business model is palpable for most E&P players, this is a routine script that is passed between business unit and HQ. Let’s remind ourselves, I feel a Dilbert cartoon coming on; HQ deliver the company wide expectations in the form of a business unit target linked to something nobody cares about… money in the form of bonuses. Business unit leaders scratch their heads and say ‘we have a chance of achieving it this coming year but a new business opportunity would indeed give greater leeway. The plan is hatched and cleaned sufficiently that it is without spot or wrinkle and then it sets sail on the voyage up “the chain” of command. It must fit the aspirations of all those links in the chain, but that is a discussion for another day. So provided it does get traction at the top there is always ‘something’ that the top know about that the rest of us don’t; such as, there is no money in the bank account since the senior executive offsite collaboration event! Excuse my elaboration, but the long and the short of it is that asking to commit to well thought out projects that are in our basket or in other words in which the license is owned and the general consensus is that it is just about timing and committing at the right time is something that E&P operators are very used to.

Disciplines

  • Business Development
  • Funding
  • Exploration
  • Business Planning and Reporting
  • Portfolio modelling and optimisation
  • Decision Analysis