Introduction

Joint Ventures present businesses with some of their greatest challenges but when their risks are managed well they can be vehicles to harness considerable wealth and growth opportunities.

Chris Duggleby‘s JointVentureRisk site is a ‘living’ free-of-charge virtual publication. It is regularly updated and improved. If you are interested in this subject please save this site link and visit again.

The JointVentureRisk.com site has been prepared by Chris Duggleby, a joint venture expert from the oil and chemicals industry, to help businesses manage risks associated with their joint venture investments. Chris Duggleby has spent over 35 years creating, leading, auditing and exiting joint ventures around the world. His experience includes membership on Boards of Directors and as CEO/President of numerous ventures – which were often integral parts of much bigger operations like the one below:

Mai Liao Island, Taiwan, where Chris Duggleby was founding president of the 50:50 Joint Venture Formosa BP Chemicals Corporation (photo courtesy of Formosa Group)
Mai Liao Island, Taiwan, where Chris Duggleby was founding president of the 50:50 Joint Venture Formosa BP Chemicals Corporation (photo courtesy of Formosa Group)

After many years in joint venture senior executive/board director roles Chris Duggleby was eventually asked to take up a senior leadership position in the audit department of the BP international oil group. In this role he became the group’s subject matter expert in joint venture risk, legal compliance risk and the management of change.

Following BP’s disastrous experience with an oil exploration joint venture in the Gulf of Mexico, he was asked to develop and implement new group auditing protocols for joint ventures and help BP develop it’s global joint venture management procedures. Towards the end of his tenure as the group’s Principal Auditor he led or oversaw all of BP’s audits of its joint ventures around the world. This website has been designed based on his first hand knowledge of joint ventures and the risks inherent in owning and operating them.

After the Gulf of Mexico catastrophe Chris Duggleby was asked to develop new JV auditing protocols for BP - (photo BP p.l.c.)
After the Gulf of Mexico catastrophe Chris Duggleby was asked to develop new JV auditing protocols for the BP Group (photo BP p.l.c.)

The structure of this site is based on the main categories of risk found in a typical joint venture (JV). Each heading in the menu leads you to a different kind of JV risk area. The risks can be considered from two different view points: as a JV Shareholder (or ownership participant) or as a JV Operator (or employee). JV’s may be either:

  • Incorporated – Independant legal entities like Limited Companies – a model favoured by the chemicals industry, or
  • Unincorporated –  where participants share costs and divide profits – a model favoured by parts of the oil industry.

Regardless of whether you are working in or with JVs, or you are contemplating starting a new JV, this site should provide you with a useful introduction to some of the risks you should consider.

If you would like to contact the author please use the comments box. Suggestions and recommendations are very welcome. Chris Duggleby has also developed the following risk management sites:

RiskTuition.comGeneral Introduction to Risk Management

Chris Dugglebys RiskTuition.com site
Chris Duggleby’s RiskTuition.com site (Introduction to Risk Management)

Bizchangers.comManagement of Change/Transformation risks

Header For BIZCHANGERS website Copyright Chris Duggleby 2015
Chris Duggleby’s BIZCHANGERS.com site (Management of Change)

He is the author of a risk management textbook ‘Value TRAI Based Risk Management‘ published by BIZCHANGERS Media in 2010. His personal website is at ChrisDuggleby.com and he can be found on Facebook, Twitter, Linkedin and Oilpro. When not writing about risk he is also a keen musician (if you want a little musical distraction try his Transformates.com site).

Chris Duggleby

To illustrate the considerable benefits a successful Joint Venture can achieve take a look at the following rather uplifting video:

The JointVentureRisk.com website and its author, Chris Duggleby, are not qualified to provide legal advice and therefore any questions in relation to the legal liability of a joint venture or its partners should be addressed to suitably qualified, competent legal advisers.

©2016 ChrisDuggleby.com

All Intellectual Property Rights Owned by Chris Duggleby

2 thoughts on “Introduction”

  1. hi Chris – Jim O’Brien here. I retired in 2013, but recently was asked by a friend to help on a small oil field services HSE project he has. Do you have any thoughts on the main risks you have seen when working with oil field service contractors which would be worth highlighting – could be upstream, midstream or downstream. Would love to hear your views.

    Best,

    Jim

    Like

    1. Hi Jim,
      Great to hear from you again after all this time. We generally tended to focus on the JV shareholders and the systems they had put in place to direct and control service contractors (in both JVs that we operated and those operated by others). But often our own JV mgmt and teams were actually stationed in contractor’s facilities so the boundaries merged. Let me stimulate my memory cells with some caffeine and I will pop my thoughts onto an e-mail. When my teams were auditing by far the most useful insights would come from taking a close look at whether the contractors’ owns risk mgmt systems were well designed, operating effectively and followed up. In addition to telling us about the risks this also helped us to discover whether their management were really committed to risk management (and of course this includes HSE) or just paying lip service in order to get a contract or feed the shareholder’s demand (e.g. ours!) for risk management stats., etc. More later…(on the way 16th Mar 2017)
      All the best,
      Chris.

      Like

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Managing Joint Ventures and their Risks – A Chris Duggleby Site

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