NOC IOC partnerships

Transcription

1 NOC IOC partnerships In the build up to the 2012 World National Oil Companies Congress we asked some of our speakers 3 key questions. 1. What are the key ingredients for a successful NOC IOC partnership? 2. How will the NOC IOC relationship evolve? 3. What are you hoping to achieve by speaking at and attending the World National Oil Companies Congress? This is a summary of what they had to say June 2012 The Landmark Hotel London, UK Opportunity and strategy for NOCs and their partners Organised by:

2 Contents Jay Pryor, Chevron... 3 Manuel Ferreira de Oliveira, GALP Energia... 4 Chakib Khelil, retired minister of energy & mines... 5 Takashi Yoshida, JOGMEC... 6 Eugene Shepherd, Namcor... 7 Momodou Badjie, Gambia National Petroleum Corporation... 8 Francois Rafin, Yemen LNG... 9 Victor Eromosele, Nigeria LNG Limited Paul Groves, Petrofac Training Services Faizel Mulla, PetroSA... 12

3 Jay Pryor, Chevron Jay Pryor is Vice President, Chevron Corp; President & Global Business Development at Chevron. He is responsible for identifying and developing new, large scale upstream and downstream business opportunities, including mergers and acquisitions. One of the keys to any great relationship is taking the time to really understand your partner learning about what they really need and how they define value. This type of understanding is a springboard for innovation, and it can lead to breakthrough solutions that build solid foundations and relationships that last decades. More and more, we need to identify projects where NOC IOC partnerships will bring greater value than either can provide individually. These relationships have always provided excellent platforms for the exchange of knowledge, capital and technology, but increasingly NOC IOC partnerships will also be focused on a deeper understanding of how these relationships will benefit all stakeholders and can help provide a more equitable balance of risk and reward. This is another opportunity for us to talk to our partners about some of the exciting things we are doing at Chevron, particularly in regard to technology. But more importantly, it s an opportunity to hear from them. To learn about how we can work together to overcome challenges, mitigate risk and support broad socioeconomic development.

4 Manuel Ferreira de Oliveira, GALP Energia Manuel Ferreira de Oliveira is CEO of Galp Energia, SGPS, SA and has been since January Aligned, shared and complementary objectives. Stable policies (taxes, operational rules and regulations). Where there is regulation stability there will be accelerated relationships and attractive and sustainable projects driven by economic efficiency. In unstable political regulation or political environment the evolution will not be as strong and will evolve contingent upon political support. Improve the communication and win win business opportunities between IOC s and NIOC s.

5 Chakib Khelil, retired minister of energy & mines Chakib Khelil was the Algerian minister of energy and mines from 1999 to 2010 and president of Sonatrach form 2001 to A win win relationship is the key ingredient of a successful NOC IOC partnership. IOC's generally are more innovative technologically and have the trained human resources to build on quickly on their application in the field. IOC's have a well diversified technical international experience and the financial resources to explore for and develop hydrocarbon resources quickly. IOC's lack sufficient access to hydrocarbon resources and require a lubricant in the dialogue with government institutions to smooth out issues during implementation of their contracts. NOC's would benefit from the comparative advantages of IOC's while the latter would benefit from more ready access to resources and a smooth dialogue with governmental institutions. The win win relationship has to be agreed by both sides on a case by case basis between a specific IOC and NOC.Examples of Qatar gasand Exxon or Exxon with Roseneft could be given. The relationship will evolve as NOC's become more like IOC's as they gain confidence and international experience. It also depends on the need for NOC's to go international as their local resources become more expensive or are being depleted. Examples abound such as TOTAL, STATOIL, PETRONAS, PETROBRAS show the way for the other evolving national oil companies. I am hoping to communicate and discuss my long experience with relationships between IOC's and NOC's during my work at the World Bank for 20 years in the oil and gas sector in Latin America and Africaas well as my experience as Minister of Energy and Mines in Algeria and as President of Sonatrach, the National Algerian Company. Hopefully lesons could be learned by attendees to improve relationships between IOC's and NOC's.

6 Takashi Yoshida, JOGMEC Takashi Yoshida has been the Director General, Research & Analysis Department, Oil & Gas Upstream Business Unit at JOGMEC since July Win win relationships. Respect for your counterpart's strong points. It will advance into unconventionals development and then cooperation in the LNG industry. To share the current situation and the state of energy supply and demand in Japan, focussing on natural gas as a vital energy resource for Japan.

7 Eugene Shepherd, Namcor Eugene Shepherd is the Acting MD of Namcor Interaction and co operation for mutual economic benefit are key ingredients. Often IOC s have pure profit motives, and NOC s have more strategic views, but these do not necessarily have to conflict. With the global rise in awareness of Corporate Social Responsibility (especially post Macondo) IOC s and NOC s would be well advised to have pro active negotiations on designing mutually compatible goals. In my opinion it is probable that IOC s will gravitate to playing a greater role in exploration and operation, whilst NOC s will increasingly be assigned licences by Governments which they will farm out to the expert IOC exploration and operation specialists. It will thus be less competitive and more symbiotic. I am hoping to give some exposure to my NOC, and its potential projects, whilst learning more about the successes achieved and lessons learnt by other NOC s.

8 Momodou Badjie, Gambia National Petroleum Corporation Momodou has been the Managing Director of Gambia National Petroleum Company (GNPC) since Transparency, Candidness and Full and Accurate Record Keeping are the key ingredients. Transparence brings efficiency and accuracy. Candidness brings understanding and friendship. Full and Accurate Record Keeping keeps dispute and argument away. NOC s wants to maximize the value of domestic resources. IOC s wants to give maximum profit to their shareholders. Without cooperation and understanding, both parties will fail to achieve their goals. NOC IOC has to work together like diesel engine and alternator to make an excellent generator. I want to share our experiences of negotiation and cooperation with IOC s with other NOC s during my speech. I also hope that I can gain more beneficial experiences from other NOC s through face to face communications at the Congress. Being a young institution, learning from the experiences of bigger and well established NOC s would be of great benefit to us from a young NOC like GNPC. We do not want to repeat the mistakes of some NOC s in the business.

9 Francois Rafin, Yemen LNG Francois Rafin has been the General Manager of Yemen LNG Company since The strong world energy demand calls for the NOC s to cooperate with leading IOC s to successfully manage the challenges of exploration and huge development investments. The keys of success comprise: a shared vision; an enabling energy law that embraces oil and gas, power generation and domestic energy supply; a mutual respect between equal partners who benefit from their differences; and a willingness to build a long term relationship by unlocking reserves and delivering production. The relationship has evolved from concessions to production sharing contracts and now more frequently to incorporated joint ventures where NOC and IOC s are shareholders. While it brings more participation and more transparency, the challenge is to maintain a high efficiency and leadership. To exchange and to promote Yemen and Yemen LNG.

10 Victor Eromosele, Nigeria LNG Limited Victor Eromosele has more than 30 years experience in the Oil and Gas industry, 17 of which have been in management positions. Seconded from the Nigerian National Petroleum Corporation (NNPC) in 2007, he is the General Manager Finance/CFO of Nigeria LNG Limited, Africa s leading exporter of LNG. Successful partnership will be brought about by the extent of common agenda, reconciliation of IOC commercial objectives with those of host country political objectives and mutual respect. IOCs bring technology and finance to the table. NOCs have the. hydrocarbon reserves. If history is anything to go by, the push pull relationship between NOCs and IOCs will continue into the foreseeable future. Collaborative for some and tedious, to say the least, for others. Speaking at the event provides opportunity to share experiences and rub minds with peers on several issues impacting industry in a changing world. I use conferences to update my knowledge on trends and network.

11 Paul Groves, Petrofac Training Services Paul Groves is the MD of Petrofac s Training Services and he joined Petrofac in June Alignment of objectives, trust, a process for dealing with issues when they arise (which they will) Transfer of knowledge with IOC increasingly morphing into service approach. To make contacts, to test my assumptions about where the market is going and to explore business opportunities

12 Faizel Mulla, PetroSA Faizel Mulla is the Corporate Strategist for PetroSA, South Africa s national oil company. The synergies that could be developed from such a partnership. For example, the NOCs tend to hold large acreages and are therefore required to maintain these large existing production levels. Even though some could maintain these levels others are failing in this area this is where IOCs could develop opportunities in reinventing themselves as service companies to fulfil this requirement. Resource nationalism tends to strongly influence policy. Thus NOCs are moving away from PSCs with IOCs towards service contracts due to the developing confidences in skills and know how of the NOCs this being helped along by high oil prices. The IOCs have to accept, inter alia, the new contract terms for them to participate in these large reserves that the NOCs possess. That the minnows in Southern Africa are becoming players in the arena of NOCs with the large gas discoveries in Mozambique, the development of LNG plants in Angola and Mozambique, the large shale deposits in the Karoo (the 4th largest in the world) and the cooperation that is emanating from the partnerships between these NOCs that are now being forged together with the value adding capability of the GTL technology.