Business Development Strategy
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.
The first step in developing a strategy is to build a Decision Based Roadmap. This roadmap is built in conjunction with the client using a structured workshop referred to as an Opportunity Framing. The direction dictated by the roadmap informs the creation of the Business Development Strategy itself.
Decision Based Roadmap
A Decision Based Roadmap establishes where the business is today and where it wants to go tomorrow, describing this journey as a sequence of decisions. The roadmap is created using a structured workshop, referred to as an Opportunity Framing, where the consultant helps the client define their objectives and the decision sequence. Learn more about Decision Based Roadmaps using the link.
Business Development Strategy
Our approach to Business Development strategy is built around understanding the business needs of the client, where they enjoy competitive advantage and how their current asset mix positions them under different scenarios.
Portfolio Analysis
We start by analyzing the performance of our client’s current portfolio of assets in the context of their financial framework, under a range of scenarios. These scenarios cover external events, such as price fluctuations and partner decisions, and internal events such as reservoir or execution performance. Through this analysis, we help our clients understand which assets should be divested and where additions need to be made.
Organizational Capability
Having the required organizational capability, or having a plan to develop that capability, is a pre-requisite for delivering value from an asset. Developing an understanding of organizational capability helps our clients understand where they enjoy a competitive advantage and provides insights into where they should focus on growing capability and how they can do it.
Asset Mix
As with a financial portfolio, concentration by hydrocarbon type, geography, fiscal regime, operating status or setting in an oil and gas company’s portfolio introduces greater risk. One of the main considerations in creating a portfolio is balancing the efficiencies gained through specialization with the protection granted by diversification.
Our approach is flexible and designed to adapt to our client’s situation and requirements. Our team is made up of industry professionals, all of whom have delivered value from assets as well as transacting in them, and it is the delivery of long-term value as an advisor that remains our focus throughout each engagement.
Explore Our Services
Services
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.
Origination
Deal origination consists of identifying coveted assets, assets with attributes consistent with the client’s strategy, and qualified buyers. We advocate a proactive approach to business development and will undertake outreach on our client’s behalf.
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.
