--> Abstract: Managing the Corporate Exploration Review Function, by P. D. Carragher; #90942 (1997).

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Abstract: Managing the Corporate Exploration Review Function

CARRAGHER, PETER D

Oil and Gas Exploration is a business which makes high cost and risky investments in order to add value to the stakeholders of the organization. An important part of making each decision to invest in an oil or gas prospect is the review of the technical quality of the opportunity. A review process takes place in all organizations, whatever their size. This paper describes some of the strengths and weaknesses of a variety of systems.

There are a number of organizational models in use in the industry and proponents of each often have strongly held views. Two of these opposing models will be discussed, not as problems that can be solved, but rather as polarities that can be, and have to be managed over time. Polarity Management concepts were developed by B. Johnson (1992).

The first polarity will discuss the tension that exists between Technical or Managerial control of, and representation on, the Exploration Review Team. Simply stated, how are the best aspects of technical geology and geophysics integrated with the broader investment and strategic insight of managers?

Once the makeup of a review team has been established, a second polarity often arises. Should the team be full time and centralized and be the only group responsible for risk assessment. Alternatively, should this function be decentralized, with a number of part time teams around the organization?

There is no simple answer to these issues. The lessons learned from the past 7 years of risk Assessment at Amoco strongly suggest that maintaining a careful balance between the extremes is essential for long term success.

AAPG Search and Discovery Article #90942©1997 AAPG International Conference and Exhibition, Vienna, Austria