The KPMG Oil & Gas experts comment on the trend of Russian oil & gas companies' attracting foreign investors for joint project implementation by means of non-controlling interest sales or joint ventures.
Today, companies generally consider the option of simultaneously attracting a number of investors, whose goals may differ. It is important to find the investor who will be as interested as the seller himself in achieving the deposit's full potential; in order to find such an investor, it is recommended to analyse potential candidates according to a number of criteria, e.g. compliance with strategic goals, financial status, interest in investing in Russia, etc. At the initial contact stage, the baseline document sent to the investor is the teaser. The teaser includes general and technical information on the deposit; it also should contain clear answers to two questions: why the interest is sold, and why it will be profitable for the investor to buy it.
"Further negotiations can take an unpredictable turn: some investors will only be interested in geology, some will insist on understanding the project's economy, and some will be simply glad to participate," said the authors. "We must note that despite the variety of further communication scenarios, the seller should stick to his story, developing the advantages mentioned in the teaser and offering reliable project risk management solutions."
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