Successful alliances driven by processes, not discounts

When alliances are executed properly and partners have a full understanding of true integration, drilling ventures can improve their potential to reduce costs and accelerate production by 12--30%. Many companies enter alliances without a full grasp of the economic potential such a relationship might offer. Many alliances rely too heavily on relationship issues and commercial terms instead of focusing on integrating their technical processes successfully. Process-driven alliance (PDA) is the term adopted by a new Gas Research Institute report prepared by OGCI Management Inc. to represent a fundamentally different way to plan, execute, and evaluate drilling projects. This paper discusses the findings of the GRI study, describing the stability of PDAs, value chain, successful PDAs, changed commercial terms, and characteristics of failure