scholarly journals Joint Ventures in the Canadian Energy Industry

2012 ◽  
Vol 50 (2) ◽  
pp. 373 ◽  
Author(s):  
Brad Grant
Keyword(s):  
Joint Ventures ◽  
Joint Venture ◽  
Oil And Gas ◽  
Asia Pacific ◽  
Energy Industry ◽  
Risks And Benefits ◽  
Key Issues

This article explores the concept of a joint venture and the use of joint venture agreements in the Canadian energy industry. The discussion is particularly timely as there have been a number of significant joint ventures in the Canadian energy industry, particularly with respect to Asia Pacific investors who have spent billions of dollars to lock up parts of Canada’s oil and gas reserves. With a growing demand for energy among Asia Pacific countries, the article suggests that joint ventures will continue to be significant in the development of Canada’s energy industry. This article provides an overview of the different forms of joint ventures (the corporation, partnership, and contractual joint venture) and the risks and benefits associated with each. This article also addresses some of the key issues with respect to joint ventures generally. 

How to avoid aches and pains in your joint ventures

2016 ◽  
Vol 56 (2) ◽  
pp. 559
Author(s):  
Brent Steedman
Keyword(s):  
Joint Ventures ◽  
Joint Venture ◽  
Oil And Gas ◽  
Cost Savings ◽  
Oil And Gas Industry ◽  
Capital Allocation ◽  
Operating Efficiency ◽  
Global Business ◽  
Gas Industry ◽  
The Right

The Australian oil and gas industry is in a period of substantial challenges, including a significant decline in oil prices, fluctuating spot gas prices, a relentless drive for operating efficiency, and tight capital allocation, together with increased regulatory scrutiny and a reputation for below-standards productivity. On the upside, these market challenges provide significant opportunities for companies to bring in new investors, implement new operating models, apply innovation to update processes and practices, and restructure activities. Making material step-changes, requires companies to review, amend, and update joint venture operating agreements (JVOAs). KPMG has worked with many of Australia’s leading oil and gas companies on a range of joint venture engagements. This extended abstract outlines why JVOAs need to be reviewed with respect to the following key opportunities and challenges: Fast-changing global business operating models. Available cost savings by eliminating inconsistent management and operating models between joint ventures. Planning for potential restructuring, including separation of infrastructure (e.g. plants, pipelines, support) from reserve ownership. Sharing of services (e.g. maintenance and logistics) between unrelated joint ventures. Transparency of costs and asset performance. Improved joint venture governance (not more or over-governance) between participants to attract investment. Effective resourcing, noting the right transition of capabilities between deal-makers and joint venture operators. With this extended abstract the authors aim to provide ideas for consideration. Each of these ideas will impact JVOAs. The authors’ proposition is that now is the right time to complete a comprehensive review of JVOAs to enable organisations to move fast as new and innovative opportunities arise.

Making joint ventures work

2013 ◽  
Vol 53 (2) ◽  
pp. 464
Author(s):  
David Ibels ◽  
Marc Van Grondelle ◽  
Jonathon Peacock ◽  
Jonathan Smith
Keyword(s):  
Joint Ventures ◽  
Joint Venture ◽  
Oil And Gas ◽  
Warning Signs ◽  
Global Perspective ◽  
First Year ◽  
Cost Overruns ◽  
Oil Companies ◽  
Scant Attention ◽  
Gas Market

No LNG capital project in Australia can survive without excelling in joint ventures; yet, the practicalities of them are often overlooked. The Australian oil and gas market has some of the most complex joint-venture arrangements in the world, and there is much we can learn from a global perspective about how to make them work. Too often, joint ventures are forced marriages between two or more parties who misunderstand each other and have widely differing aims. Organisations often rely too much on the joint-venture agreement, devote too few resources to the venture itself, and pay scant attention to any warning signs of trouble. The authors see that international oil companies typically have about 30–40% of their portfolios tied up in joint ventures. This is set to grow to about 70–80% during the next 5–8 years as they enter new territories in the hope of securing new resources. Although joint ventures are familiar ground for oil and gas companies, such operators often struggle to make them work. Cost overruns, schedule delays, compliance issues, renegotiations, and erosions of value are common. There are, however, ways to make joint ventures work more effectively, including: knowing what is expected of all parties and monitoring these expectations; improving transparency of information between joint-venture parties; ensuring expectations are realistic and continuing to validate them; paying particular attention in the first year of a joint venture; proactively strengthening existing joint ventures; and, staffing and resourcing joint ventures with care.

Critical success factors for partnerships in the oil and gas contracting industry

2013 ◽  
Vol 53 (2) ◽  
pp. 462
Author(s):  
Rick Robinson ◽  
Robert Powers
Keyword(s):  
Joint Ventures ◽  
Success Factors ◽  
Joint Venture ◽  
Oil And Gas ◽  
Critical Success ◽  
History Of ◽  
Pros And Cons ◽  
Individual Entity ◽  
The Relationship

The advent of mega LNG projects in Australia has encouraged the Australian contracting industry to establish partnerships with local or international peers to bolster capability and take advantage of larger work scopes to handle the contracting risks. The types of partnerships generally fall into three broad categories: Unincorporated joint ventures formed between partner companies, specifically to win and deliver a project. Each partner retains its individual entity and the relationship is finalised once the project is delivered. Incorporated joint ventures that take a long-term view to the partnership. The incorporated entity focuses on winning and delivering work on multiple projects, without a specific end date. Client contractor integration is the aligned relationships between clients and contractors to achieve delivery of optimal outcomes, thereby achieving mutual benefits. Clough’s history in partnering dates back to 1957, when Harold Clough started the company’s first joint venture with Christiani and Nielsen of Denmark. During a 55-year period, the company has delivered more than 130 projects in joint-venture or client contractor-integration arrangements. This rich history of partnering is used to explore the pros and cons of different partnering arrangements through a series of partnership case studies. Despite the relationship differences, there is a number of critical factors for successful partnerships, with the ultimate goal of adding value to the owner’s project. These factors, including focal interface points, financial and project management systems, and HSE unity and support, are explored using a case study about the BAM Clough Joint Venture, Clough’s most successful long-term partnership, which has been in place since 1964.

scholarly journals Fiduciary Relationships in Oil and Gas Joint Ventures

1970 ◽  
Vol 8 (2) ◽  
pp. 233 ◽  
Author(s):  
D. A. MacWilliam
Keyword(s):  
Joint Ventures ◽  
Joint Venture ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Fiduciary Duty ◽  
The Other ◽  
Gas Industry ◽  
Full Disclosure ◽  
Fiduciary Relationships ◽  
The Many

A party to a joint venture agreement in the oil and gas industry is often faced with the problem of determining whether or not he owes a fiduciary duty to his joint venturer. This article examines the many factual situations in oil and gas joint ventures which, could give rise to a fiduciary duty and concludes that the extent to which the fiduciary principle is applicable to various relationships involving interests in oil and gas has not yet been determined by the courts. As such, the author suggests that in addition to attempting to provide in the agreement for those circumstances which could give rise to a fiduciary duty, a party to a joint venture who desires to avoid a breach of a fiduciary duty should make full disclosure to and attempt to get the consent of the other contracting party.

scholarly journals Joint Venture Strategy for Emerging Economy: Evidence From Russian Energy Sector

2012 ◽  
Vol 3 (2) ◽  
pp. 56-79 ◽  
Author(s):  
Andrei Panibratov ◽  
Alexander Abramkov
Keyword(s):  
Power Generation ◽  
Joint Ventures ◽  
Joint Venture ◽  
Oil And Gas ◽  
Electrical Equipment ◽  
State Intervention ◽  
Emerging Economy ◽  
Energy Sector ◽  
Global Companies ◽  
Post Entry

This paper investigates the strategies of global companies operating in power generation and supply, electrical equipment, and oil and gas industries in Russia. Russian energy sector has been considered by these companies as a huge and perspective and Russia has shown in the last two decades the greatest activity in the field of internationalization of major national industries through IJVs. Local joint ventures are therefore one of the cornerstones of these firms strategy in the respective energy sectors of Russia’s economy. These partnerships facilitate the entry process to Russia, raise an efficiency of post-entry operations, and prevent the state intervention in Russian operations of western companies.

Negotiations to Set Up Joint Ventures in China

2000 ◽  
Vol 5 (1) ◽  
pp. 157-189 ◽  
Author(s):  
Keyword(s):  
Joint Ventures ◽  
Joint Venture ◽  
Legal Aspects ◽  
Negotiation Process ◽  
Quality Performance ◽  
Managerial Culture ◽  
Key Issues ◽  
Chinese Company ◽  
Set Up ◽  
The Many

AbstractEstablishing joint ventures in China is an interesting test of cross-cultural negotiation under conditions of uncertainty within a complex network of constraints. On one side is the huge Chinese company, heavily bureaucratic and focused on taking care of all dimensions of its employees lives. On the other side is the Western enterprise focused on quality performance and financial effectiveness. The negotiation process can be distinguished by several stages, each of them related to a specific issue such as the basic policy of the future joint venture, the technical issues, the financial aspects, and the legal aspects. Among the many issues, 16 are considered in this analysis as key issues of crucial importance in the building up of the agreement. A number of difficulties encountered by both parties during the negotiation are scrutinized, such as hidden differences in objectives, the obstacles due to non-overlapping perceptions, the lack of managerial culture, conflicting values behind behaviors, and the decision-making process in an administration-run economy.

A method of technical diagnostics for offshore structures

1994 ◽  
Vol 16 (2) ◽  
pp. 43-48
Author(s):  
Do Son
Keyword(s):  
Diagnostic Method ◽  
Joint Venture ◽  
Oil And Gas ◽  
Residual Life ◽  
Life Time ◽  
Offshore Structures ◽  
Technical Diagnostics ◽  
Offshore Platforms ◽  
South Vietnam ◽  
Local Destruction

This paper describes the results of measurements and analysis of the parameters, characterizing technical state of offshore platforms in Vietnam Sea. Based on decreasing in time material characteristics because of corrosion and local destruction assessment on residual life time of platforms is given and variants for its repair are recommended. The results allowed to confirm advantage of proposed technical diagnostic method in comparison with others and have been used for oil and gas platform of Joint Venture "Vietsovpetro" in South Vietnam.

Ecological efficiency of international joint ventures// ECONOMICS, POLITICS, LAW: TRENDS AND PROSPECTS: сб.науч.тр./ OEAPS Inc.; редкол.: Флора Бертран (отв.ред.) [и др.]. - Берлин, Германия : OEAPS Inc., December 2018. - С. 5-7.

2019 ◽  
Author(s):  
Anna Igorevna Dudnik
Keyword(s):  
Joint Ventures ◽  
International Joint Ventures ◽  
Energy Industry ◽  
Ecological Efficiency ◽  
International Joint

The article describes the concept of ecological efficiency in terms of international joint ventures. It discoveries the main features, specific terms and notions, it also gives the examples from energy industry. The article suggests the measures which company can take for increasing ecological efficiency of its projects.

Heineken's Acquisition of Asia Pacific Breweries: Accounting for Business Combinations and Changes in Ownership Interests

2017 ◽  
Vol 32 (4) ◽  
pp. 101-127 ◽  
Author(s):  
Pearl Tan ◽  
Chu-Yeong Lim
Keyword(s):  
Market Share ◽  
Joint Venture ◽  
Interesting Case ◽  
Asia Pacific ◽  
Joint Control ◽  
Business Combinations ◽  
Final Offer ◽  
Control Premium ◽  
Joint Venture Partner

ABSTRACT On July 20, 2012, Heineken, a Dutch brewery offered S$5.125 billion (Singapore dollars; approximately US$4.1 billion) to buy Asia Pacific Breweries Ltd (APB; formerly, Malayan Breweries Limited) from its Singapore-based joint venture partner, Fraser and Neave, Limited. (F&N). At that point, Heineken and F&N had joint control over APB through the joint venture vehicle Asia Pacific Investments Pte Ltd (APIPL). Brewery business under the joint arrangement had moved on quite predictably from the time APB was formed in 1931. However, the calm changed to high drama when Thai Beverage, owned by one of Thailand's tycoons, made a bid for F&N and APB. Heineken was quick to respond by aggressively buying shares of APB, leading to a large control premium being paid in the final offer price. The bidding war was largely motivated by the Dutch and Thai beer giants, each wanting to own the iconic Tiger beer brand that was owned by APB and thus take control of APB's strong market share in the fast-growing market of Asia. The Heineken bid for APB presents an interesting case study regarding the motivations for acquisitions, the nature of control, and accounting for acquisitions. The case also presents rich issues in accounting for changes in ownership interests with and without gain of control.

Sign in / Sign up

Export Citation Format

Share Document