Connecting the bright spots
Key components of an oil and gas governance framework
Without proper governance, National Oil Companies (NOC) can face significant challenges in many areas, both external and internal to the organization.
A governance framework that provides transparency and evokes confidence in the controls instituted across the NOC will provide benefits across the spectrum.
Characteristics of a good governance framework
- Crisp articulation of the mission, vision, core values, and principles by which the company operates
- Outline of the organization structure, reporting lines, and responsibilities for functional and operational elements of the organization
- Clarity on ownership of governance, policies, and control activities
- Expression of the core business processes and how they interface
- The framework for assuring compliance
There are several important segments to include in the planning to ensure that the developed governance framework is both implementable but also takes root within the organization to ensure its benefits are realized.