Uniting the Cantik Oil Field: A Case Study Q&A

Introduction

The case study pertains a case of Cantik project, which is an oil field located within the country of Myland. The case brings on different board companies, Falcon, PartnerCo, Llesh Petroleum, and Thorne Petroleum. Falcon has been provided with an obligation of initiating the unitization efforts on the Cantik area by Llesh Petroleum to allow for the determination of equitable shares of the partners within the field. The paper is, however, premised on a question and answer format that seeks to address different issues that are considered critical within the case study.

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Five Concerns That Falcon May Have About Partnerco

PartnerCo comes to light following the appraisal drilling that was completed by Falcon within Falcon's boundary based on the Production Sharing Contract (PSC). The code for the contract was PSC-2001A. As such, Falcon's concerns are as stated below;

• The effect of the 40% working interest of PartnerCo within the PSC-2001A.
• Whether the connections of PartnerCo with community groups and local businesses will negatively impact Falcon's long term goal within the oil industry.
• Whether PartnerCo will be able to utilize the Cantik field as per the share percentage considering their lack of technical skills and failure in comprehending the risks and the geological complexities of the Cantik area.
• Whether PartnerCo's lack of appreciation of environmental standards will negatively impact the productivity of the oil produced and the population around
• Whether SafeDollarCo will be able to finance the entire Project and the next course of action should PartnerCo's external funding be limited.

Three Reasons Why Falcon Would Invest in Cantik

The high demand of clientele considering that Falcon is an internationally recognized oil and gas company that is characterized by the mainstream and downstream operations globally.

The Existence of Sufficient Finances and Employees to Sustain the Project

The huge share of 60% in its case with PartnerCo and also its unitization function as forwarded by Llesh Petroleum. In all dimensions, it stands to benefit significantly from the Project.

Falcon's Top Three Stakeholders

1. The first stakeholder is PartnerCo. According to PSC-2001A, Falcon and PartnerCo are required to share the Myland's national government-owned oil company jointly. The percentage share of ownership is 60 and 40 per cent, respectively. As such, the duo must operate together as the primary stakeholders.
2. The other stakeholder of Falcon is Llesh Petroleum. Llesh Petroleum approached Falcon to lead the unitization effort in the Cantik field, an issue that automatically made Falcon a stakeholder within the area. The case study also notes Llesh Petroleum as an international oil and gas company that has worked with Falcon in many ventures globally.
3. The third shareholder of Falcon is the Myland's national government. It ensures that business is done as per the standards and put forth stringent measures to ensure that all the companies within the Cantik field adhere to the standards. It also provides a good working relationship to ascertain the achievement of the projects that have been put forth.

What Falcon Project Manager Need to Do to Have the Project Recycle Through the Select Phase and Pass the DG3

Falcon's project manager should focus on scope management. He should look at the available resources against the objectives of the company then come up with a workable strategy that will ensure a proper coordinated working relationship with other stakeholders. He should also coordinate the preparation of the project budget by looking at the estimated starting capital and the long-term gain. The actions will ensure the successful passage of DG3, which is based on decision making and subsequent facilitation of the next course of action, which is based on the execution phase.

Five Aspects of a Successful Project in the Eye of Falcon Project Team

• A successful project must provide significant market opportunities for all stakeholders.
• The Project must also conduct a thorough market analysis. For example, the Cantik Project indicated the growth in demand of the motor fuel, something that made Falcon consider the allocation of its investment to the Project.
• A successful project must also consider the needs of the stakeholders. In the case of Cantik Project, all the stakeholders have their needs covered within the share percentages, as noted in the case study.
• The Project must also outline matters costs and the associated financial projections, as noted in the Cantik case study.
• A good project must also look at the needs of the secondary players, which is the community. The case study has depicted how the presence of Falcon will impact the livelihood of the surrounding population positively.

Three Ways That the Falcon Project Sponsor/ Decision Executive Can Support the Falcon Project Team Through the Select Phase

• They can offer the required resources to allow a wider consideration of workable options for the Project.
• They can offer moral support and inputs to ensure that there is no resentment at the DG3
• They can avail the required finances without delay to allow Falcon's project team take advantage of the allocated 60% share and also fit the unitization function a proposed by Llesh Petroleum Company.

Conclusion

In summary, the paper has covered many issues. The primary concerns revolved Falcon and its major stakeholders. Other concerns also revolved the select and the DG3 phase, as noted herein.