The global transition to cleaner energy, coupled with the oversupply of fossil fuels, price volatility and cost pressures, means that private and public sector O&G players are rethinking their strategies. S& has advised clients across the value chain on ‘where to play’. We draw on our own and wider industry and market data, providing deep insight to our clients regarding strategic market context and their choices. We have local networks and insights based on our longstanding presence in resource-rich countries – e.g. in Mozambique. We truly understand how to do business in these countries.
Many clients have benefited from our testing of their strategies against the impact of market shifts (e.g. energy mix, technological disruptions, climate change, trade patterns and demographics, new entrants, digital disruption, politics and changing regulation). We help clients understand gaps in their capabilities versus what’s required to win in this dynamic new market context. Our seasoned O&G strategists use our Capability-Driven Strategy approach, industry knowledge, data analytics, benchmarking and leading practice frameworks to determine ‘how to play’.
Option development and modelling
S& has helped many clients assess their business and project portfolios in terms of strategic alignment, commercial returns, risks, and developmental benefits. We work closely with our Deals team to build business cases, feasibilities and financial models to support investment committee and funding applications. We have developed portfolio modelling and management tools to help our clients manage interdependency, portfolio balance and risk exposure, governance, cash flows and returns.
We have assisted many clients in the LNG value chain to develop corporate, business and operational-level strategies and performance improvement plans. These range in focus from market entry, green field establishments, acquisitions and integration, to disposals, cost reduction, operating model transformation, digital transformation and innovation and growth. We use our SMEs, BXT accelerator approach and facilities to help clients transcend the limitations of current thinking to reimagine the business of tomorrow.
Operating model design
We help clients design organisations that optimally use their resources and capabilities to achieve their strategic priorities, are focused on the customer, are agile and effective, are digitally fit, and are responsive to the SDGs. We help our clients build organisations that are Fit for the Future. We find that the volatile and disrupted energy and LNG market has exposed gaps in many of our clients’ current operating models. These outdated models need to be reinvented to prevent failure or redundancy.
Tax policy and strategy
Tax is an increasingly important consideration, and tax strategy is embedded in our strategic choices, market entry strategies, corporate and operating model designs – not added as an afterthought. Our S& team works seamlessly with our tax SMEs to consider and develop tax-efficient approaches and to design Tax Functions of the Future, which are able to deliver efficiencies and to ensure that the overall control environment is effective.