Assignment question: The energy sector is one known for its philosophy of high risk and high reward. However, in some cases firms decide to opt for a strategy of co-operation with other operators to enter into a JOINT VENTURE AGREEMENT. Joint venture strategies bring with them their own challenges and benefits for the firms involved in the agreement.
Background: The Oil and Gas industry is a prime example of the growth of JV (Joint Venture) arrangements, where our study of 365 mega-projects showed as much as 71% of upstream (exploration and Production) investment is spent through alliances or JV relationships. The participants in these relationships contribute assets, capital, unique expertise or labour to access diverse advantages such as scale, risk sharing, market entry, optionality, tax benefits and access to other unique capabilities.
Write a 2750 word report document critically analysing ONE JOINT VENTURE FROM THE ENERGY SECTOR. The report should consider the following:
1) The motivations behind the chosen joint venture
2) Evaluate the challenges and benefits of the chosen energy sector joint venture
3) The report should include appropriate related examples about the chosen joint venture
4) Provide recommendations as to how the joint venture can be improved.
The report should be structured as follows:
1) Abstract
2) Introduction – 350 words (including a brief historicity of the topic)
3) Main body – 1800 words (use subheadings and 3 or 4 figures/charts, properly labelled, referenced and a brief explanation)
4) Recommendations – 300 words
5) Conclusion – 300 words