Bellfield Oil And Gas Plc - 3939 Words

BELLFIELD 63 NEGOTIATIONS MEMORANDUM INTRODUCTION This memorandum has been prepared by one of the DEEGOIL OIL GAS PLC (DEEGOIL or the team) team members that participated in the BELLFIELD 63 negotiations between DEEGOIL OIL GAS PLC and the representatives of the MINISTRY OF NATURAL RESOURCE MANAGEMENT (MONRM) in relation to a Production Sharing Contract for Bellfied 63 at the state of Aberoli. This memorandum contains information regarding the preparation for the negotiation, creation of value and the division of the value created as well as information on how the negotiations were conducted, deadlock and the people issues. BACKGROUND ïÆ'Ëœ Aberoli held a licensing round in which it invited oil and gas companies to bid for a†¦show more content†¦There are some steps that should be followed during negotiation process: 5. Close- timing- Agreement on the terms Figure 1: illustrates the five stages of the negotiation process At Bellfield 63 negotiations the negotiation process was based in the following premises: ïÆ'ž Does the team know what it wants to achieve? Does the team understand what the other party is really trying to achieve? ïÆ'ž Can the team identify the key risks and obstacles that will need to overcome? ïÆ'ž What concessions are the team willing to make? What does the team think the other party will ask for? ïÆ'ž What does the team consider to be deal-breakers? How can the team overcome them? ïÆ'ž Is the team ready to conduct a positive and constructive negotiation? Concerning the preparation process, due regard should be given to the â€Å"Role Play† , as the Individual team member’s role must be clear and coordinated by a team leader. This must be done carefully to avoid stand-alone (dyadic) negotiation due to interpersonal differences. The creation of value and the division of the value created are important factors to acknowledge since the business model focuses on the creation of value. A business model within the Petroleum Industry, takes financial and non-financial elements into contemplation, namely: †¢ Competitive Position – the predominant strategy in the industry to create and capture value, notwithstanding in the short-term. In an industry with a historical of