CASE STUDY
Energising JV formation processes with cross-sector partners to enter subsea
The challenge
A JV opportunity to create a new performance-based subsea model had been identified by the businesses - but the scope, commercial model and risk/reward allocation were undefined. The JV was at risk of stalling due to a lack of strategic alignment and understanding of the JV value proposition.
Result highlight
$2.5Bn
26
5
Serviceable obtainable market targeted
Direct end-user engagement sessions
Immediate opportunities developed
WSS Energy’s role in defining, guiding and managing the JV re-energised the process which had been under discussion for 12 months. Our carefully targeted research ensured that all parties shared a common view of the benefits of the JV, despite participants coming from different sectors, functions and cultural backgrounds. As a result of our involvement the JV transitioned from a tight focus and conservative model to target higher value opportunities with significantly greater value chain capture.
Related Sectors
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Oil and Gas
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Exporation & Production - Offshore
Related Consulting Services
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Business Strategy
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Operating Model
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JV Support
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Voice of Customer
Our approach
From our experience we knew that cross-sector JVs are difficult to establish and the business culture of the JV participants was likely to require careful management. With participants in four countries we prioritised structured communication and a step-by-step approach to build working relationships and momentum.
Once this had been established, we used collaboratively-designed research to fill knowledge gaps and to build understanding between participant companies. Through careful stakeholder analysis and engagement, we were able to home in on a product/service package and a commercial model which met the needs of all the participants.
Key activities
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Develop an agreed JV value proposition which was shared and agreed by all JV parties. This was achieved through stakeholder engagement, industry interviews and research into the market segments most aligned to the value proposition.
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Expand the value proposition into adjacent value chains and develop different package options for comparative analysis by the JV parties.
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Engagement programme with existing and potential clients to test the package options, commercial and risk acceptability, and explore any offtake agreement potenitals.
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Present JV options to the executive teams of the parent companies in three different countries. This face-to-face engagement was vital to build support for the JV and to ensure that all senior stakeholders were fully aligned.
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Develop commercial and financial model for the JV including equity structure, working capital, revenue forecast, debt and requirement for additional partnering.
