Business Analysis: Petroleum Business Development

Business Analysis:

Petroleum Business Development

INTRODUCTION

This training course is concerned with one of the most important activities of this business – critical analysis and evaluation of potential  investors and partners. The business is becoming more complex in structure and scope, technology, competition and strategic potential. Consequently, a company’s relationships with potential investors and partners now require a different and  significantly higher  standard of diligence and  discipline  than  has been the case in the past.  This high-level 5-day training course will concentrate on the application of leading-edge tools and techniques of due diligence in building effective relationships with these two strategically significant stakeholder categories – potential investors and partners.

OBJECTIVES

• Learn how to put principles, knowledge, and practical skills relating to analysis, decision-making, and developing effective strategy into practice
• Understand how to apply a range of tools available for strategic analysis to address both external and internal pressures for change
• Analyze the competitive environment and your firm’s position in it
• Identify the required characteristics of new investors and partners
• Evaluate the past performance and future potential of potential investors and partners
• Select and engage with new investors and partners
• Anticipate and deal with the challenges of integrating new investors and partners
• Measure the strategic impact of adding the new relationships
• Understand the resources and competencies involved in competitive advantage
• Analyse the core competencies and your firm’s basis for competitive advantage
• Apply the tools available for developing strategic options
• Embrace the characteristics of good strategic decision-making
• Become knowledgeable of common traps involved in strategic decision-making that can lead to failure
• Bring strategic analysis and decision-making together for developing effective strategies that can be implemented
• Broaden strategic analysis and decision-making skills by considering a range of case examples and applying the principles and concepts learned to your firm
• Understand how good people skills are effective in strategic thinking, analysis, decision-making, and developing strategies

WHO SHOULD ATTEND?

This programme is designed for employees in all industries who are involved with the strategic planning process for their organization or work unit and want to improve their knowledge and practical use of strategic analysis, as well as, decision-making skills.

COURSE OUTLINE

DAY ONE

The Basics of Due Diligence in The Oil And Gas Business 

• The definition of due diligence in different contexts
• The changing dynamics of the global oil and gas business
• The strategic impact of due diligence in business planning
• How attractive is the market sector that we are evaluating?
• How strong is our performance in this market sector?
• What is the potential for sustainable profitable growth?
• Due diligence in contract formation and negotiations context

Applying Due Diligence in Partner and Investor Analysis  

• A rigorous process for identifying partners and investors
• Due diligence and agreements between co-ventures (JOA)
• Due diligence and production sharing agreements (PSA)
• Clarifying the goals and requirements of investors and partners
• Evaluating the financial strength of potential partners and investors
• Guidelines on partner and investor selection
• Creating an effective “tissue match” with partners and investors
• Sustaining effective relationships for the long term

DAY TWO

Analysing the competitive environment and firm positioning

• Learn key principles and concepts
• Introduction to environmental analysis tools – PESTLE, Five Forces Analysis, and the Seven S’s
• Identify pressures and trends affecting an industry
• Identify key success factors in an industry
• Case study analysis applying these concepts
• Apply these concepts to your firm

Analyse resources and competencies underlying competitive advantage

• Introduction to organizational analysis tools:
  • Resource Auditing
  • Core Competences
  • Value Chain Analysis
• Examine a proven model for organizational development that will enhance an appreciation for analysis, decision-making, and strategy development
• Identify the state of competition within an industry, the key competitors and the key competitive positions
• Map how organizational resources and competencies strengthen or detract from a firm’s competitive position
• Case analysis: undertake a resource, competence and value chain analysis for firms in different competitive positions
• Apply these concepts to your firm

DAY THREE

Develop strategic options

• Introduction to tools for developing strategic options – Portfolio Analysis, Product/Market Analysis, Protecting Current Advantage
• Develop a range of strategic options
• Evaluate options and making strategic choices
• Ensure that strategic options fit the competitive environment, your firm’s competitive position and develop sustainable competitive advantage
• Case analysis: practical look at strategic options
• Apply these concepts to your firm

Applying Due Diligence in Strategic Planning & Dispute Resolution

• The importance of dispute resolution in oil and gas business
• Due diligence strategy in preventing costly litigation through effective use of ADR option
• Types of dispute resolution vehicles (arbitration, mediation, expert determination)
• What is strategy and why is it important?
• Example of a strategic planning framework
• Management and control – dealing with variance and divergence
• Balancing short-term and long-term programmes and projects
• Due diligence in aligning strategy and operations
• Discussion – interaction – agreeing priorities for the company
• Delegates’ personal plans for follow-up action

DAY FOUR

Applying Due Diligence in Risk Analysis and Risk Management  

• Identification of types of risk in this company
• Quantitative and qualitative tools and techniques of risk analysis
• Best practice in risk management – a structured process
• The emerging concept of “risk engineering”
• International standards and requirements of corporate governance

Applying Due Diligence in Managing Partnerships

• The managerial differences between a strategic alliance and a joint venture
• The process of agreeing the business case
• Negotiating the terms of an alliance or a joint venture
• Choosing the most effective partnership structure
• The life cycle of a partnership and the challenge of renewal

DAY FIVE

The strategic decision making process

• Understand the key characteristics of effective strategic decision making
• Understand common traps in strategic decision making – hubris, over-reach, overly consensual
• Introduction to a range of tools for improving strategic decision making – scenario building techniques
• Analyse the strategic decision making process in your firm, business division, or work group
• Develop a guideline for improving decision making in your firm, business division, or work group
• Apply these concepts to your firm

Pull strategic analysis and decision making together in a strategy

• Identify your core business proposition
• Develop a vision and mission statement for your core business proposition
• Identify the key strategic priorities that your firm needs to meet
• Develop strategic objectives
• Action Planning