Over recent decades, the natural resources industry has witnessed a number of major HSE incidents, including those at Buncefield (U.K.), Macondo (U.S.), Samarco (Brazil), Piper Alpha (U.K.), Colonial Pipeline (U.S.), Bass Strait (Australia), Prudhoe Bay (U.S.), Penglai (China), and Grasberg (Indonesia). Each of these HSE incidents occurred under a joint venture structure – either in a JV operated by one company or a JV operated as an independent company with its own management team.
These events raise a number of fundamental questions: Do joint ventures have a different risk profile than wholly-owned operations? Does this risk profile differ based on the JV operating model and operator type? What are the most effective and innovative ways that partners in non-operated joint ventures are collaborating with one another?
To answer these questions, Water Street Partners looked at:
• Whether joint ventures are more or less prone to major HSE incidents relative to wholly-owned operations;
• Within the joint venture structure, whether JV OPCOs present a disproportionately higher risk than single company-operated JVs;
• Whether the risk of a major HSE incident is lower if a JV is either operated by a major / tier one company, or such a company is a non-operating partner.
• What are the most effective practices non-operating partners are using to collaborate on HSE risk.
Join Water Street Partners Thursday, February 22nd from 10 a.m. to 11 a.m. EST for a virtual discussion on the understanding HSE risks and collaborating effectively to address them in non-operated joint ventures.