Energy companies face unusually difficult negotiation and implementation challenges. Major investments with extremely long payback periods are often made in the face of considerable uncertainty - volatile primary energy markets, questionable yields, political instability, changing legislative and regulatory regimes, and turbulent economic conditions. Real economic returns are often dependent on the quality of working relationships developed and maintained with key stakeholders in the host country. Yet these often vary dramatically over time based on the relative skills of local management. When such relationships are poor, inevitable conflicts escalate, rather than getting worked through, in the worst cases leading to hostile legislation or regulation, contract breach or even expropriation of assets.
More broadly in the energy sector, many utilities are implementing capital investment programs to increase capacity, requiring them to embark on major sourcing efforts and strengthen their supply relationships. They are also working with variety of partnerships to develop new green sources of energy and to develop and bring to market demand-side solutions to improve consumer conservation and promote efficiency.
Vantage Partners brings unique expertise in negotiation, relationship management, and change management to help organizations cope with these challenges. For example, we help energy companies to:
- Create and implement strategies to build and maintain relationships between international oil companies (IOC) and their national oil company (NOC) and host government partners
- Enhance the skills of local teams to influence governmental and quasi-governmental counterparts
- Build the capacity to manage more effectively relationships with venture partners in upstream activities, whether serving as Operator of the asset or in the context of a minority working interest in assets operated by others
- Remediate troubled relationships with key counterparts in long-term development and production environments
- Develop and improve sourcing and supply chain management strategies, with special emphasis on leveraging supplier partnerships and strategic outsourcing relationships
For more information, please contact us at firstname.lastname@example.org or 1.617.904.7816