Oil and Gas Joint Ventures

Inter-connectivity creates opportunity to reduce emissions

The majority of oil and gas operations globally are governed by joint ventures—complex business relationships in which companies pool capital, share risk, and transfer knowledge and best practices. Joint ventures have an operator partner, whose employees are on the ground using their company’s standards and operating practices. Joint ventures also have non-operating partners, which hold shares of an asset but are not the operator.

Many of the world’s largest publicly traded oil and gas companies have sizeable non-operated portfolios—in some instances, over two-thirds of all assets owned. This means that those assets are managed by other companies, creating additional risk when it comes to emissions reductions.

By engaging with joint venture partners, and extending methane reduction commitments to non-operated assets, oil and gas companies have an opportunity to increase the overall impact of methane reduction efforts and drive the adoption of methane mitigation best practices across other companies around the world.