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Buying oil and gas consulting help: how to do it effectively

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Oil and gas consulting firms serve to advise government and national oil companies, major and independent commercial oil companies, petrochemical producers, renewable energy companies, oil field service firms, private equity investors and sovereign wealth funds. These firms are charged with the responsibility of unlocking significant value for their clients

There are various reasons that would make one need oil and gas consultants

  • Need for a particular technical skill.
  • Need for a third party opinion.
  • Need for shorter expertise in oil and gas consultation.

However where seeking consultancy expertise you need to follow various steps so that after hiring such expertise you do not get a  feeling of being ’ripped off’ and that the consultant delivers the real value for your money. ( For more information : http://opportune.com/)

Do you need the consultancy?

This will depend on the problem the company wants to address and whether the problem persist event after hiring consultancy expertise. It also depends on the skill the company is looking for from the oil and gas consultants. The value the consultancy is likely to bring into your business should also be put into consideration.

For instance, today companies in the oil and gas industry are facing a great pressure from restructuring. Energy consulting firms need to seek help from an oil and gas restructuring advisor to help them overcome challenges and to promote strategic change that the customers can confidently make the right business decisions.

Draw up an initial brief

This is a first formal meeting whereby plans/objectives that you want to achieve are discussed. This will be after determining that the business really needs consultancy. In the initial brief certain things need to be highlighted.

  • Summary description of organization
  • The problem and the reason for its existence
  • Output and deliverables the consultancy should deliver
  • The role of the consultancy
  • The one to undertake the management
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How to Negotiate Oil and Gas Royalty

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Oil and gas appears to be one of the most demanded and most privileged asset and resource for the twenty first century. The uprising development and marvelous progress in the various kinds of industries is because of these two resources, which are used in multiple ways. It is because of this widespread use, that there has been a rise in Oil and gas consulting firms, which deal in different kind of royalties pertaining to gas and oil.

Royalty is a kind of agreement sustained between the owner of the oil and gas resource and any of the purchasers who wants to invest in the land for the exploration of minerals. Although there can be hundreds of minerals yet Oil and gas consultants, usually deal with land pertaining to natural gas and oil. As the numbers of firms are increasing the ways and tactics of negotiation for the royalty are also undergoing vast assortment. One frequent way followed by many of the Energy consulting firms, is to pay a portion out of the extracted minerals, to the original owner. However if you are concerned with any kind of negotiation pertaining to natural gas and oil you must take a look at the local as well as the state laws and the prevailing terms and condition under the legal policy.

Major issues to be considered while negotiation gas and oil royalty:

Although dealing in royalty is better when you have some financial management consultant, yet it is better to be fully aware of the highlighting features of a royalty agreement. The major features which you need to give a look include:

  • Bonus,
  • Delay rental (if applicable)
  • Primary term
  • Royalty fraction
  • Shut-in royalty

Apart from these the terms may also pertain to the issues like:

  • An alternative to extend the primary term for the royalty
  • A pledge to drill a well within
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