Major Oil & Gas Company

Industry: Petrochemical
Geography: South America

Challenge

The client needed assistance developing the company’s vision for Petrochemicals. Specifically, how strong is the base from which they start, and what growth paths should be considered?

Critical Uncertainties

  • Strength and cash flow producing capability of core business
  • Technology choices and availability
  • Feedstock supply availability and cost
  • Political uncertainties within country
  • Global penetration of key product segments (volume and premium pricing)

Alternatives Considered

  • Basic chemicals-only business in local geography
  • Polyolefins and petrochemical business in region
  • Aggressive growth and local industry consolidation through acquisition
  • Entrance into alternative products (EPDM, urethane, acrylics, etc.)

Result

  • Consolidation of local industry created improved base business
  • Unique and differentiated strategy produced good results
  • Human talent acquisition was crucial to success
  • NPV>$ 4 Billion market capitalization
Decision Strategies