Services
Business development, in the context of the upstream oil and gas industry, is the acquisition or divestment of all or part of an interest in a lease or a granting instrument.
As oil and gas is an extractive industry, participants must continuously find and develop new oil and gas fields as existing fields decline, making business development a continuous process.
We like to think about business development as a three phase process:
- Business Development Strategy
- Origination
- Transaction Support
Business development strategy dictates which assets to access or acquire and which to divest. Developing a strategy requires that you choose what not to do, and we are here to help our clients make those choices. Having the right business development strategy is of particular importance on the upstream oil and gas industry for three reasons:
- It is an extractive industry; the portfolio must be continually refreshed.
- It is a commodity industry; participants compete on finding, development and lifting cost, which is locked in for the lifecycle at an early stage.
- It is a capital intensive industry with long cycle times; capital is locked up for decades making it hard to reverse mistakes.
We provide the following services to support our clients in creating a business development strategy.
Decision Based Roadmap
A Decision Based Roadmap etablishes where you are, where you need to go next, and what decisions you need to take to get there.
Business Development Strategy
Our approach to business development strategy is built around:
- Portfolio Analysis
- Organizational Capability
- Asset Mix
We advocate a proactive approach to business development, as both a buyer and seller and provide deal origination services to support our clients in that effort. We provide the following deal origination services to our clients:
Studies
We undertake the following new market studies:
- Country Profiles
- New Acreage
- A&D Studies
- Play, Basin, Country, or Regional Outlooks
- Midstream Studies
Documents and Data
We help our clients develop the documents and data that they need to market their assets.
- Pitch Packs
- Confidential Information Memorandums (CIMS)
- Physical and Virtual Data Rooms
Targeted Marketing
We contact potential buyers or sellers directly to discuss their interest in a transaction on behalf of our clients.
Our approach to business development strategy and origination maintains optionality for our clients throughout a transaction. We believe optionality is important as transactions in the upstream oil and gas industry tend to be involved, complex and drawn out.
We can manage transactions on behalf of our clients, provide advice as they work through the process, or produce specific deliverables as they require. Typical products include:
Valuation
We undertake detailed valuation at both asset and corporate level.
Negotiation
We have extensive experience of negotiation and managing typical oil and gas agreements, in both US domestic and international settings.
Due Diligence
We can conduct technical and commercial due diligence on behalf of our clients.
Explore Our Services
Strategy
We approach strategy through a scenario driven assessment of the client’s current portfolio, organizational competencies, and financial framework. The strategy defines portfolio actions and coveted asset attributes.
Origination
Business development is a continuous process. We advocate a proactive approach to business development, as both a buyer and seller and provide deal origination services to support our clients in that effort.
Transaction Support
Transaction support consists of in depth asset evaluation, negotiation of commercial agreements or preparation of license round submission and close out of conditions. We can also aid in joint venture set up and management and asset maturation as required.
