[Editor's note: A version of this story appears in the March 2021 issue of Oil and Gas Investor magazine.]
The oil and gas industry has been global for most of its history. Many U.S. companies in the sector already do business around the world. As new discoveries continue to be made, new technologies continue to be invented and market conditions continue to change, there will always be opportunities not only for U.S. production companies, but also for energy sector supply and services companies to pursue new international business or to restructure their existing operations.
Joint ventures (JVs) are one of the most common ways of doing business abroad. Doing business abroad can be a great way to grow your business and deepen your customer relationships, but there are traps for the unwary. Thoughtful planning can help you reduce the risk of getting burned.
Following are some high level, key practical considerations relevant to international JVs, and in particular for energy sector supply and services companies that wish to set up a presence in a foreign country to sell their products and services to the production companies in that country.