Corporate Strategy and Value Creation

Expanding geographic participation of oil and gas companies in an environment of escalating and increasingly volatile crude and asset prices has reshaped the global marketplace and brought unique challenges to the table, in particular, the need to reassess asset portfolios and search for new business designs to fuel future growth.

Oliver Wyman has assisted many companies in addressing business challenges in the areas of:

Asset and business portfolio planning and strategy
Growth strategy development
M&A targeting and synergy analysis
New business development and launch
Enterprise risk and value management

Recent engagement example

Growth strategy - For a leading oilfield services company, Oliver Wyman identified and quantified key value migration themes by conducting an exhaustive primary research effort. Using the market insights generated from this research, the team brainstormed a range of potential growth options and then used a series of analyses to select a small group of high-priority options for detailed evaluation. Business designs and high-level economics were developed for the priority ideas.

Business design innovation: Developed a strategy and business plan for a new business venture in the upstream and infrastructure project collaboration space. Created a new business model that streamlined project collaboration for $150 billion worth of upstream exploration, drilling, and production infrastructure projects.

Post-merger integration and network planning: Oliver Wyman helped to create a network strategic planning process and local market growth strategies across dozens of markets for the post-merger integration of two leading fuel and convenience retailers. The work included strategies to deploy alternative brands, optimize the company-owned and franchise trade channel mix, and optimize site/store configuration. The work resulted in investment plans for several billion dollars of capital with 25% above average returns.

Private equity due diligence in O&G: Oliver Wyman assists private equity companies in assessing markets and companies during due diligence phases. In one case, our work supported the completion of a $1.5 billion acquisition. We have also helped clients avoid excessive bids through a detailed understanding of customer demand drivers.