Joint venture formation and partner selection in upstream crude oil section: Goal programming application

H. Sahebi, S. Nickel, J. Ashayeri

Research output: Contribution to journalArticleScientificpeer-review

6 Citations (Scopus)

Abstract

In the past three decades, the magnitude of business dynamics has increased rapidly due to increased complexity, uncertainty and risk of international projects. This fact made it increasingly tough to ‘go alone’ into the international projects. As a consequence, companies with diverse strengths and weaknesses cooperatively bid for joint ventures (JV) formation. Joint venture is also a well-established aspect of the crude oil industry, specifically in the upstream segment. Making decision on the optimal form of JVs is still a challenging problem. In addition, the success of a JV is intertwined with the accuracy of the partner selection phase. Therefore, this paper formulates a multi-criteria mathematical model to select the best partners and form an optimal JV for undertaking oilfield projects. The lexicographic goal programming technique is employed to minimise undesirable deviations from diverse goals such as resources needs (technological and expertise), budgetary requirements, time, etc. The model is validated with a real-life-based example and provides insightful views on alternative formats of cooperation.
Original languageEnglish
Pages (from-to)3047-3061
JournalInternational Journal of Production Research
Volume53
Issue number10
Early online date17 Oct 2014
DOIs
Publication statusPublished - 2015

Keywords

  • upstream crude oil
  • joint venture formation
  • partner selection
  • goal programming

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