Trace Market Shift from IOCs to NOCs & Independents
In a Oil & Gas and Petrochemical market shifting from international oil companies (IOCs) to national oil companies (NOCs) and Independents, playing pro-active from First Call to Last Call in the pursuit of projects becomes a challenging process that we describe below for maintaining your high hit-rate for growth.
With a barrel price fluctuating around $50, not all the projects are equal, not all the companies are offering same interest for growth.
While some End Users have still pulled the breaks in capital expenditure, others have now fully integrated the current situation and are ramping up their investment in:
– Highly profitable midsize upstream oil and gas projects
– Quantity of midstream pipelines and terminals
In this graph extracted from the www.projectsmartexplorer.com data base, you can see, as an example, the Centrifugal Pumps business opportunities in KUSD across the 1000 mots active projects to come on the period 2017 to 2022.
Detect Best Targets among IOCs/NOCs/Independents
Within each category of companies, IOCs, NOCs or Independents, some are still in standby restructuring their assets and hundreds are moving forward because of technology step changes or at the initiative of local interests.
In this context, the second step is to rank priorities within each category between the companies standing still and the leading ones.
In extracting from www.projectsmartexplorer.com the profile of your targeted companies, you will have easy to identify your Top 10 or Top 20 best opportunities for growth.
In the example shown here, you can see the profile of Total for Centrifugal Pumps in KUSD for the period 2015 to 2022.
In repeating this exercise for each company you are considering, you will find in a couple of hours which companies you should focus on to play pro-active and secure your growth.
Secure your Position on Last Call
Identifying the opportunities for growth and positioning your products and services at the earliest stage of the projects pursuit is a key requirement to play pro-active at First Call.
It is a good way to start but far from enough for winning a project.
Winning a project also means to perform at the Last Call.
The success at Last Call depends on many criteria, but the most important one is the owner of the decision.
The owner of the decision on the Last Call is directed by the legal form of the engineering, procurement and construction (EPC) contract between the end user and the main contractor.
As an example, this graph is showing how the Centrifugal Pumps Business Opportunities to come on the next five year from ExxonMobil is balanced between lump sum turn key (LSTK) contracts and the reimbursable or costs-plus-fees schemes.
If the EPC contract is executed on a reimbursable scheme, the weight of the decision stays on the end user side.
Therefore, performing on the Last Call supposes to have identified where to focus at the final stage of the decision process depending on the legal form of the EPC contract.
In following the three steps described above, you focus on the best targets for your business, you position yourself in pole position at the earliest stage of the projects to get the First Call and you secure this pole position in playing pro-active all along the decision process until the Last Call.