Promoting Inward Investment
The Exploration world is competitive, and with the oil price enjoying unprecedented buoyancy, there are many opportunities for new investment by Oil Companies. Unexplored regions are vying with mature provinces for a share of the market, and encouraging exploration investment in any one province requires a knowledge of the marketplace and the defining factors that shape exploration strategies within oil companies. Paras has wide experience in working with governments to create an attractive exploration environment.
What do Oil Companies look for?
The creation of an attractive investment opportunity for an oil company involves the interaction of a number of factors:
Accessibility:
- Asset market liquidity
- Licensing rounds
- Level of competition
- Capture time
Attractiveness:
- Resource base
- Prospect sizes
- Exploration risks
- Fiscal attractiveness
- Political and other risks
- Infrastructure and markets
Most oil companies have screening criteria that rank each new opportunity against these types of factors. It is interesting to note that only the resource base and prospect sizes are to do with the geology and rocks. All the other factors are to do with the fiscal and commercial environment.
The Paras Approach
There is expertise in the consulting market to prepare an analysis as outlined above, and Paras has world class explorers as part of our associate network. With this expertise we can programme manage a technical evaluation of this scale.
Paras specialises in helping oil companies formulate exploration and growth strategies. This involves coaching processes that enable management teams to make choices as to which countries to invest in. To achieve this we have a clear understanding of what the industry is looking for and what makes for an attractive opportunity. Paras is uniquely placed to provide advice on packaging and positioning investment options in the international oil and gas community. Additionally we have extensive experience in working with government departments, and have a clear understanding and sensitivity of the interactions between government and industry.
Successful Outcome
We have recently completed a major piece of work to successfully reposition the Irish offshore as an attractive petroleum province. Examples of this work are available on request. Paras is intimately familiar with the market. We know those oil companies that are likely to include high cost, technically challenging exploration opportunities in their portfolio.