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Government-Facing Strategy for Oil Gas Companies

How to develop a productive relationship with host governments?

January 7, 2018 © Copyright Glomacs

Government Facing StrategyPolitical game plays, environmental catastrophes, increased competition, volatile oil and gas prices, ambitious strategies of NOC’s (national oil companies), and increasing public involvement are changing the rules of engagement for IOC’s (international oil companies) and governments around the world.

The old, tried and tested approaches to government relations, based on high-level influences and pie-splitting, are no longer sufficient for the new challenges faced today by oil & gas companies. Today, the oil & gas sector requires an integrated government-facing strategy that addresses all these challenges and positions the company for long-term success in the host country. It is highly recommended that international oil companies change and take a more systematic approach to government relations than previously has been routine. It is essential to have a deeper knowledge of the host state, a wide-ranging network of relationships, more synchronization with local stakeholders to ensure consistency between a company’s international and local expectations, and strengthened capabilities to plan, respond, and adapt to continuing change.

An efficient government relations strategy simplifies the path to business objectives like access to acreage on reasonable terms and competitive (oil-field) services. Such a strategy helps position the company in the longer term as a responsible contributor to the host country’s economic and social development, and as a long-term player able to fully realize its hydrocarbon potential. This strategy will create reputational capital that can pay big dividends over the life of a project and beyond.

A healthy, flexible government-facing strategy helps an IOC (international oil company) steer through the increasingly intricate, dynamic local conditions and demands that can throw a project to chaos. This simplifies the company’s primary goal of completing the project on time and on budget. But an efficient engagement strategy in the host state pays much larger long-term dividends by projecting the company as a positive force contributing to the development of the local economy. The resulting associations and mutual understanding form the foundation for a bright future in the country. Development of such a government relations strategy should take full benefit from an unbiased external perspective.

The upcoming international conference on “Effective Government Relations” is suitable for a wide range of professionals who are interested in learning about government relations for the oil and gas sector. It is also a highly recommended international conference for Government relations managers, Political risk analysts, Corporate affairs managers, External relations managers, Corporate social responsibility managers, Public relations professionals, Country managers, Asset managers, Project managers, Operations manager, New venture manager, Business development managers, Finance and tax professionals, Lawyer, Risk managers.

To find out more about GLOMACS courses, or to discuss the “Effective Government Relations” with one of our Consultants, please do not hesitate in contacting us. 

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GLOMACS Training is one of the world’s leading training & development firm. By providing continuing professional training on various industry relevant topics, we help clients meet their training needs. Our expertise includes training topics on Management & Leadership, Strategy & Planning, Public Relations, Customer Service, Corporate Communication, Office Administration, Sales & Marketing, Human Resource Management, Learning & Development, Quality and Productivity, Project Management, Purchasing, Logistics & Supply Chain Management, Contracts Management, Finance & Budgeting, Electrical Engineering, Mechanical Engineering, Maintenance Engineering, Instrumentation & Process Control, Health, Safety & Environment, Oil & Gas Technology, Civil & Construction Engineering. Headquartered in Dubai, GLOMACS run programmes in Amsterdam, Budapest, Geneva, Istanbul, London, Marbella, Paris, Prague, Vienna, California, Houston, Miami, New York, Toronto, Abu Dhabi, Doha, Dubai, Jeddah, Kuwait, Muscat, Hong Kong, Jakarta, Kuala Lumpur, Singapore.

GLOMACS Trainings are designed to unlock the Potential of Real People in Real Situations. People need Emotional Investment and they also need to feel time is being invested in them & GLOMACS Training is a great way of doing that.

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