The Changing Rules of IOC – NOC Partnerships

International Oil Companies (IOCs), National Oil companies (NOCs) and local governments have had a long standing partnership in development oil and gas resources. However, going beyond the objectives of investment and technology exchange, the list of objectives has expanded to priorities such as operational excellence and risk management. Local host governments have a growing concern and increased interest in how foreign investors are utilizing resources, especially land and water, and how they propose to comply with environmental and safety regulations. While host governments are increasing pressure, IOCs are also becoming selective in whom they partner with. 

As GeorgeHaligua, global investor and CEO of GHC Eastern, stated, “International oil and gas companies are working closely with local governments. We are working towards creating a common platform from which IOCs, NOCs, the local government, economy, community and environment stand to benefit.”

The underlying objective of IOCs as well as local governments is to use innovative technology that improves operational excellence and safety, is environmentally responsible and economically viable.