Energy companies face unusually difficult negotiation and implementation challenges. Major investments 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 contract breach or even expropriation.
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
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 Mark Gordon