The KPMG Oil & Gas experts comment on the benefits of the joint ventures (JV) in the oil & gas industry and on the reasons why more than half of JVs fail to achieve the objectives of each of the parties involved.
"It is important to bear in mind that setting up a JV is different from M&A activities, while managing a JV is different from managing a subsidiary," the authors underline. "The creation of a JV should be a thoroughly structured process with a project team, project plan or a roadmap. This also includes the timely involvement of dedicated working groups and functional experts ... Many tend to forget to plan for critical stages in the JV lifecycle, such as a closure or partner exit. Last but not least is to elaborate an action plan for the JV parties in case something goes wrong. Understanding these things is of vital importance, as it will help resolve any issues in the future."