Critical success factors for partnerships in the oil and gas contracting industry
Rick Robinson A and Robert Powers AClough.
The APPEA Journal 53(2) 462-462 https://doi.org/10.1071/AJ12073
Published: 2013
Abstract
The advent of mega LNG projects in Australia has encouraged the Australian contracting industry to establish partnerships with local or international peers to bolster capability and take advantage of larger work scopes to handle the contracting risks.
The types of partnerships generally fall into three broad categories:
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Unincorporated joint ventures formed between partner companies, specifically to win and deliver a project. Each partner retains its individual entity and the relationship is finalised once the project is delivered.
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Incorporated joint ventures that take a long-term view to the partnership. The incorporated entity focuses on winning and delivering work on multiple projects, without a specific end date.
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Client contractor integration is the aligned relationships between clients and contractors to achieve delivery of optimal outcomes, thereby achieving mutual benefits.
Clough’s history in partnering dates back to 1957, when Harold Clough started the company’s first joint venture with Christiani and Nielsen of Denmark. During a 55-year period, the company has delivered more than 130 projects in joint-venture or client contractor-integration arrangements. This rich history of partnering is used to explore the pros and cons of different partnering arrangements through a series of partnership case studies.
Despite the relationship differences, there is a number of critical factors for successful partnerships, with the ultimate goal of adding value to the owner’s project. These factors, including focal interface points, financial and project management systems, and HSE unity and support, are explored using a case study about the BAM Clough Joint Venture, Clough’s most successful long-term partnership, which has been in place since 1964.
Rick Robinson was appointed to the position of executive vice president of projects for Clough in October 2012. He originally joined Clough in 2007 as project director for infrastructure on the Gorgon Downstream LNG project. During his time on Gorgon, he has overseen significant project milestones and workforce growth while developing a strong safety culture. Prior to joining Clough, he held senior executive positions in project and general management at Fluor, including the position of president, Fluor Constructors. His international work experience spans the USA, Canada, Puerto Rico, South Africa, Europe, and Russia, working on both upstream and downstream projects. He is a qualified civil engineer with a BSc (engineering) from the University of Southern California and an MSc (engineering) from Stanford University. He also holds professional engineering registrations in the USA and Canada. |
Robert Powers was recently appointed as general manager of Clough’s projects division in Queensland after serving in senior management roles on the Gorgon Downstream LNG project, Australia’s largest resources project. During his five years in Gorgon, he oversaw significant project growth and major milestone completions while developing a strong safety culture. Prior to joining Clough, he held senior positions in project and operations management with leading global engineering, construction, and services company KBR. His professional experience spans the USA, Asia, Mexico, Europe, the Middle East, and Australia, working on upstream and downstream JV projects. He has spent the past seven years in senior management roles in JVs including Gorgon and is now general manager for two of Clough’s project partnerships. He is a qualified chemical engineer (degree from the Mississippi State University); he is vastly experienced at establishing and managing alliances between different entities. |
