A comparison of Aker BP`s alliance model and the conventional competitive model on the Norwegian continental shelf

The oil and gas industry has faced many obstacles in recent years, which has led to companies in the industry being forced to find new ways of working and collaborating. In connection to this, the alliance model has been more frequently used in the market. In collaboration with Aker BP, this thesis has investigated the future of their alliance model in comparison to the conventional competitive model. The thesis has looked at topics such as advantages, challenges, and future threats and opportunities that can further help develop and improve the model. To answer this, we have used a qualitative research method where participants both externally and internally in the alliance were interviewed. In addition, parts of the results have been analyzed using a quantitative method. Our results showed diversity on whether the alliance model is a preferred contract strategy for Aker BP on the NCS. The participants from the alliance were satisfied with today’s contract strategy, as opposed to participants outside the alliance where several were more skeptical. The main benefits by using the alliance model were found to be completion time and cost, integrated team, and continuity, whereas the challenges were competitive concern and stakeholder management. Furthermore, we see that it can be challenging to replace the current alliance partners and enter into new agreements with external suppliers. In addition, there were different perspectives regarding potential benefits of the alliance model if the market changes, i.e. in a market peak or market downturn. This thesis concludes that Aker BP`s alliance model is a well-functioning contract strategy. However, areas such as structure, communication with the market, and the challenges mentioned above are proposed to be improved