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Strategy Case 1 – Strategic evolution of Upstream player into an Integrated Energy Company.

situation

  • An African Independent recently acquired the upstream assets of an international oil company as part of its diversification strategy
  • The acquisition positioned it as the largest indigenous upstream player in West Africa, increasing previous production output by ten times
  • This rapid organisation expansion posed challenges that needed to be carefully addressed since the company was preparing for an international stock exchange listing
  • Management therefore sought to adapt organization to cope with needs from expansion, and support long-term corporate objectives

our approach

  • Conducted strategic outlook exercise to understand implications:
    • Global and regional landscape
    • Regulation and fiscal systems
    • Government policy
    • 360 degrees Stakeholder analysis
    • Competitive landscape
    • Internal company capabilities
    • Contractors /Service Providers
  • Analysed current state: operational realities & organisational capabilities
  • Quantified gaps and developed evolution scenarios for future state
  • Defined tactics to execute strategy and capture “Quick wins”

Outcome

  • Became second ever West African Upstream player to list on an international stock exchange
  • Revised portfolio strategy highlighting businesses to be divested and acquisition opportunities
  • Successfully repositioned business in Upstream, Mid, and Downstream sectors