Best intentions: Lessons learned on international partnering and alliance contracts
Although the energy industry is still in the early stages of partnering and alliancing, there is enough accumulated experience to be worth sharing information on what has worked and what has not. This paper explores the lessons learned in six agreements in the UK, the US, and the Middle East. It concludes that not all projects are potential candidates for partnering or alliances. Those likely to be successful will contain common characteristics of complexity, uncertainty, technology and duration. Management structure is moving towards integrated teams, although projects currently fall along a broad spectrum before becoming truly integrated. The risk/reward structure is becoming more complex over time, although it is unclear that tinkering with percentage sharing schemes will actually change the behavior of project participants and result in additional cost savings. The use of team building techniques and facilitators may well enhance the alliance implementation, but the choice of both company and individual members is fundamental to success. The overriding success factor, however, is the setting of fair and achievable targets. All of the managers surveyed stated that their projects benefited from the use of a partnering or alliance structure. Three of the projects were far enough along to cite significant cost savings. Although some in the industry are still doubtful that alliances can make a true difference to a project`s outcome, those who have participated are convinced they have achieved results which would have been unattainable in a traditional structure. They would add, however, that partnering and alliancing is not easy, and not for all projects. The industry must share practical information if significant learning is to occur.
- OSTI ID:
- 433948
- Report Number(s):
- CONF-960525--
- Country of Publication:
- United States
- Language:
- English
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