scholarly journals National oil companies: business models, challenges, and emerging trends

2013 ◽  
Vol 11 (1) ◽  
pp. 713-722 ◽  
Author(s):  
Saud M. Al-Fattah
Keyword(s):  
Business Models ◽  
Joint Venture ◽  
Oil And Gas ◽  
Oil Companies ◽  
National Oil Companies ◽  
Emerging Trends ◽  
Challenges And Opportunities ◽  
Oil Company ◽  
Gas Supply

This paper provides an assessment and a review of the national oil companies’ (NOCs) business models, challenges and opportunities, their strategies and emerging trends. The role of the national oil company (NOC) continues to evolve as the global energy landscape changes to reflect variations in demand, discovery of new ultra-deep water oil deposits, and national and geopolitical developments. NOCs, traditionally viewed as the custodians of their country’s natural resources, have generally owned and managed the complete national oil and gas supply chain from upstream to downstream activities. In recent years, NOCs have emerged not only as joint venture partners globally with the major oil companies, but increasingly as competitors to the International Oil Companies (IOCs). Many NOCs are now more active in mergers and acquisitions (M&A), thereby increasing the number of NOCs seeking international upstream and downstream acquisition and asset targets

Doubling Down

2018 ◽  
Author(s):  
Patrick R. P. Heller
Keyword(s):  
Oil And Gas ◽  
Risk Mitigation ◽  
State Control ◽  
Economic Returns ◽  
Oil Companies ◽  
National Oil Companies ◽  
Oil Sector ◽  
Oil Company ◽  
Careful Assessment

Many governments have successfully employed state-owned enterprises to exert state control over their oil and gas sectors and capture a larger share of rewards from the industry. However, relying heavily on a national oil company requires adapting to certain challenges for the management of the oil sector and governance of the broader economy. This chapter argues that governments should base decisions concerning the role of a national oil company on a careful assessment of the size of the potential rewards and the state’s tolerance for associated risks. It then examines the most important risk mitigation techniques that governments have used to increase the likelihood that their national oil companies will deliver strong economic returns and remain accountable to citizens.

scholarly journals Renewed energy in Asia's upstream

2019 ◽  
Vol 59 (2) ◽  
pp. 582
Author(s):  
Gero Farruggio ◽  
David Dixon
Keyword(s):  
Solar Wind ◽  
Service Sector ◽  
Oil And Gas ◽  
Oil Companies ◽  
National Oil Companies ◽  
Grid Connection ◽  
New Energy ◽  
Operational Expenditure ◽  
And Storage

Upstream is enjoying a renewed optimism in pricing and project developments, and the growth outlook is positive. That said, current investment in upstream across Asia is less than half that of renewable projects, which accounted for over US $180 billion in 2018. Got your attention? It certainly has for national oil companies and regional oil and gas players as companies explore the opportunities presented by lowering solar and storage costs. In this paper we analyse capex trends and forecasts across both sectors in Australia and the region. Will this growth continue, who is set to gain and by how much? We explore the growing role of renewables in the oilfield service sector. Australia is not alone in experiencing a renewables boom; the trend continues across Asia, with government initiatives more often than not being the catalyst and the boom then fuelled by a seemingly endless supply of insatiable investors. Australia is experiencing a frenzy of activity; developers are rushing to grab land and be the first past the post on grid connection. What can we expect as the renewable energy target transitions to the national energy guarantee, to whatever comes next? We compare the corporate landscapes across the upstream and new energy sectors, and explore what is driving them closer each year as miners and upstream operators turn to solar, wind and storage to reduce operational expenditure and boost field economics. Adani has one of the largest solar pipelines in Australia; will Woodside follow suit? Finally, we compare returns for recently commissioned renewable and upstream projects.

Vertical Integration Strategy Implementation Through Hybrid Upstream and Downstream Concession Agreements

2021 ◽  
Author(s):  
Dr. Abdulla Al Jarwan ◽  
Fathesha Sheikh
Keyword(s):  
Vertical Integration ◽  
Value Chain ◽  
Joint Venture ◽  
Oil And Gas ◽  
Strategy Implementation ◽  
Oil Companies ◽  
National Oil Companies ◽  
Integration Strategy ◽  
Production Sharing ◽  
Host Government

Abstract Upstream developments in prolific oil and gas fields are highly profitable and hence attract various investors/partners, whereas Downstream developments profitability is margin based and challenging under certain situations to receive similar interest for investment in the same location. Vertical Integration Strategy implementation through hybrid upstream and downstream concession agreements can help address this issue. The seventies witnessed major changes in the oil industry's structures and strategies resulting from the nationalization of oil and gas reserves. This ultimately led to a separation between the upstream sector with national oil companies (NOCs) controlling most of the world reserves and crude production, and the downstream sector with the international oil companies (IOCs) controlling the largest share of the refining and marketing aspects in the main consuming countries. In the recent past, NOCs have started forward integration of its upstream sector with downstream sector to take advantage of the synergies and increase profitability. This paper takes the strategy a step more forward by exploring the possibility of developing oil and gas assets through a hybrid upstream/downstream concession agreement that can be awarded by the host government. The model hybrid agreement is built by integrating a typical upstream concession agreement with downstream equity-based joint venture (JV) agreement. It also takes the learnings from Production Development Production Sharing Agreement (DPSA) applied in the development of a Gas-To-Liquids (GTL) asset or Liquefied Natural Gas (LNG) asset which are usually developed as an integrated upstream and downstream business model. It is also feasible to build the hybrid agreement based on upstream Production Sharing Agreement (PSA) instead of a Concession Agreement. The paper will discuss how the hybrid upstream and downstream concession agreement is built and how it will distribute the risk and rewards across the entire value chain for investors, expand the scope of investment and support in the economic development of the host country.

The Ethics of Petroleum

2017 ◽  
Author(s):  
Jonathon W. Moses ◽  
Bjørn Letnes
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Host Country ◽  
Corporate Citizenship ◽  
Costs And Benefits ◽  
Political Actors ◽  
Oil Companies ◽  
Corporate Social ◽  
Oil Company

This chapter considers the role of international oil companies (IOCs) as global political actors with significant economic and political power. In doing so, we weigh the ethical costs and benefits for individuals, companies, and states alike. Using the concepts of “corporate social responsibility” (CSR) and “corporate citizenship” as points of departure, we consider the extent to which international oil companies have social and political responsibilities in the countries where they operate and what the host country can do to encourage this sort of behavior. We examine the nature of anticorruption legislation in several of the sending countries (including Norway), and look closely at how the Norwegian national oil company (NOC), Statoil, has navigated these ethical waters.

Contradiction of space, centralization of capital, and the hybrid state oil company: The case of Russia

2008 ◽  
Vol 1 (2) ◽  
pp. 59-71 ◽  
Author(s):  
Mazen Labban
Keyword(s):  
Oil Industry ◽  
The State ◽  
State Control ◽  
Hybrid State ◽  
Oil Companies ◽  
National Oil Companies ◽  
Russian State ◽  
And Control ◽  
Oil Company ◽  
A New Species

A new species of capital has emerged from the development of inter-capitalist competition in the oil industry. Oil-producing states have fused with financial and productive/extractive capital, foreign and domestic, into hybrid state oil companies. These are centralized monopolies that transcend the historical geographical opposition between private transnational oil companies and national oil companies. As partially nationalized state monopolies, they allow oil-producing states access to global capital markets, while retaining the control of the state over the flow of foreign capital into the domestic oil industry. They thus mediate the contradiction between the integration of capital at the transnational level and its territorial fragmentation at the national scale, only to internalize it in the process. I examine this process in the case of the ongoing consolidation of the Russian oil industry under state control, focusing on two inter-related contradictions: an attempt by the Russian state to liberalize the oil industry, yet shield it against the expansion and control of foreign oil companies; and the dependence of the state on foreign financial capital in the very process of consolidating control over the oil industry.

The Role of the State Oil Company in Latin America

1992 ◽  
Vol 10 (2) ◽  
pp. 79-88
Author(s):  
A.A. Teixeira
Keyword(s):  
Latin America ◽  
Latin American ◽  
Economic Integration ◽  
International Markets ◽  
Oil Companies ◽  
Private Organization ◽  
Role Of The State ◽  
Self Sufficiency ◽  
Oil Company

ARPEL is a private organization working for the benefit of its 20 member companies as well as promoting the economic integration of their respective countries. The Latin American State Oil Companies (LASOCs) are responsible for 80% of petroleum activities in the region, which in 1990 amounted to 7.4 mbd or 11.4% of the world's production. Mexico and Venezuela are responsible for 2/3 of the output. The LASOCs. besides filling domestic needs and seeking country self-sufficiency, look for opportunities for participation in international markets and to attract external investment.

Low oil prices put pressure on China's energy policy

2015 ◽  
Keyword(s):  
Oil And Gas ◽  
Oil Prices ◽  
International Market ◽  
Domestic Demand ◽  
Energy Prices ◽  
Content Type ◽  
Oil Companies ◽  
National Oil Companies ◽  
Financial Pressure ◽  
Difficult Time

Subject Effect of low oil prices on China. Significance China is the world's second-largest oil user and imports nearly 60% of its annual requirements. If oil prices remain below 50 dollars per barrel, China's import bill for crude oil will fall by tens of billions of dollars in 2015, while the national oil companies (NOCs) face a difficult time as their profits from oil production are squeezed. However, the consequences are not straightforward due to the government's role in setting energy prices and the mix of commercial and state objectives of the NOCs. Impacts Financial pressure on China's NOCs will not be as great as on their international counterparts. The NOCs are likely to embark on a spree of buying overseas oil and gas assets. With contracted gas supplies exceeding domestic demand, Chinese LNG importers will sell surplus on the international market.

Entrepreneurial implications of Nigeria's oil industry local content policy

2011 ◽  
Vol 5 (3) ◽  
pp. 223-241 ◽  
Author(s):  
Ugwushi Bellema Ihua ◽  
Olatunde Abiodun Olabowale ◽  
Kamdi Nnanna Eloji ◽  
Chris Ajayi
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
General Level ◽  
Gas Industry ◽  
Content Type ◽  
Oil Companies ◽  
Local Content ◽  
National Oil Companies ◽  
Indigenous Entrepreneurs ◽  
Entrepreneurial Activities

PurposeThe purpose of this paper is to investigate the efficacy of Nigeria's oil and gas industry local content (LC) policy, with particular reference to how the policy has enhanced entrepreneurial activities and served as panacea to resolving some of the country's socio‐economic challenges within the oil‐producing Niger Delta region.Design/methodology/approachSurvey data were randomly obtained from a questionnaire sample of 120 indigenes in Bayelsa, Delta and Rivers states; and subjected to factor‐analysis using varimax rotation to identify the most crucial factors likely to influence the success of the policy. Cronbach's α was also applied to ascertain the reliability of the data and overall agreement amongst respondents.FindingsThe study reveals a general level of indifference amongst the respondents, and an insignificant level of entrepreneurial implication, regarding the LC policy. Notwithstanding, the need to create business prospects, jobs opportunities, and establish special quota arrangements to benefit indigenes of the oil producing host‐communities were found to be most crucial in their assessment of the policy's efficacy.Practical implicationsIt is expected that the policy should stimulate and open up more channels for budding entrepreneurial activities, job opportunities and wealth generation. These would mitigate situations of unwarranted militant activities, social disorder and disguised criminalities such as kidnapping and destruction of oil installations, resulting from perceived marginalisation, massive unemployment and poor living standards experienced within the region.Originality/valueThe study provides insights into how the LC policy, if properly harnessed and judiciously implemented, can generate win‐win outcomes for the nation, multi‐national oil companies, host communities and indigenous entrepreneurs.

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