Contract and partnership management at NOCs
by Rodolfo Guzman, Jaap Kalkman, Cesar Garcia Brena, Trung Ghi
June 2018
Adopting new types of contracts and partnership models sets fresh challenges for national oil companies

The increasing need for new and creative types of partnerships between national oil companies (NOCs) and other operators and service companies has created a difficult task for their management. The implementation of these contracts is almost always a complex and substantial challenge, and usually requires a radically new corporate culture – possibly together with restructuring and enhanced systems.

  • Executing new types of business ventures with IOCs has a growing number of NOCs struggling to adapt to the challenges of highly competitive environments.
  • A fresh set of capabilities is required to run the new alliances at the speed expected by incoming partners and market forces.
  • Selecting the ideal type of contract for each venture is key: each has different levels of complexity and, hence, demands distinctive patterns of organizational capabilities for their successful execution.
  • Efficient governance, transparency, processes and competencies will determine success in reaching NOCs’ objectives.
  • Contracting with IOCs provides NOCs with a window of opportunity for true cultural change; better practices to implement the new contracts may become a fast lane for deeper transformation.