The increasing need for new and creative types of partnerships between national oil companies (NOCs) and other operators and service companies has created a difficult task for their management. The implementation of these contracts is almost always a complex and substantial challenge, and usually requires a radically new corporate culture – possibly together with restructuring and enhanced systems.
- Executing new types of business ventures with IOCs has a growing number of NOCs struggling to adapt to the challenges of highly competitive environments.
- A fresh set of capabilities is required to run the new alliances at the speed expected by incoming partners and market forces.
- Selecting the ideal type of contract for each venture is key: each has different levels of complexity and, hence, demands distinctive patterns of organizational capabilities for their successful execution.
- Efficient governance, transparency, processes and competencies will determine success in reaching NOCs’ objectives.
- Contracting with IOCs provides NOCs with a window of opportunity for true cultural change; better practices to implement the new contracts may become a fast lane for deeper transformation.