Exploration & Production (E&P) companies operate in multiple distinct regions, each with varying processes, operations and regulatory requirements. The upstream process demands the drilling of wells hundreds of miles offshore, often in geopolitically-unstable areas and extremely regulated jurisdictions, further complicated the effect of their number and variety,
While wells are operated by energy companies, the extraction and production of resources necessitates around 30-40 separate companies, if not more. Each of these work with distinct deliverables, performance metrics, and contract details which can create huge friction when it comes to coordinating and reconciling payment. Each of these regions use a set of standards and technology systems tailored to their specific activities, creating a unique asset management challenge that can result in large, unexpected write-downs during annual inventory checks.
As a result of its complexity, the upstream segment faces a number of challenges,
The segment involve four key stakeholders: Majors, the larger international oil and gas companies owning most activity, NOCs or National Oil Companies, Independents, which operate only within their assigned segment and in upstream often provide concentrated E&P skills, and Oilfield Services, which provide equipment, support, and skills.