The first casualty
They say truth is the first casualty of war, and if that's the case it seems that trust has been the first casualty of the global recession.
They say truth is the first casualty of war, and if that’s the case it seems that trust has been the first casualty of the global recession.
In the current climate several factors combine to create unease and tension in the market, and the ultra-competitive environment the upstream industry finds itself in generates friction between companies that have worked together blissfully through the good times.
Some major projects are being revised and talk of dreaded ‘suspensions’ clouds many get-togethers. The problem begins with rumour, progresses to concern, and rapidly presents itself as panic. In many cases there are strategic reasons why projects are held, and there are conflicting reports abounding about which E&P projects are on, off or held in limbo.
This has driven many suppliers and service providers to re-evaluate their working relationships with clients and sub-contractors alike. The money men are increasingly less optimistic that the firm will in fact be paid, which means advance cash payments have returned to the fore, along with a resulting supply chain and revenue stream crunch, which threatens the survival of many small and medium businesses.
Being prudent with finances is a must, but re-building bridges and communicating more openly with clients about your business, including your concerns, will foster an atmosphere of trust that greases the wheels of many deals.
Transparency plays a vital role in business, and communication is its vehicle. As such, and in response to subscriber demand, Oil & Gas Middle East has successfully launched its own communication portal.
Arabianoilandgas.com brings suppliers, buyers and industry decision makers breaking news faster and packaged distinctly for the Middle Eastern energy community. With channels dedicated to the pillars of the upstream business, plus up-to-the minute tender information, contract signings, and the usual people profiles and analysis you’ve come to expect from Oil & Gas Middle East, we hope this portal will be a vehicle that you participate in actively.
The website will also remind you why there are many reasons to be cheerful in the Middle Eastern oil and gas business. Coming up this month you can read in full the interview with Petrofac’s group chief operating officer, Maroun Semaan, who reveals that UAE firms will be notable beneficiaries of the $2.3 bn Asab deal.
Your comments and interaction are highly valued, and we look forward to hearing from you.