Dana Energy has been through a restructuring and strategy revision progress that are congruent with its core competencies, background and assets as a leading private exploration and production (E&P) company.
The key to identify success of the strategy, is the extent of change it results in financial statements, although prospects like internal processes & organizational growth should be considered also. I strongly believe that for our case, an effective strategy should lead to an increase in a real revenue prospect in less than a year from when its implementation started. Otherwise, some great changes may need to happen in that.
Many international oil companies (IOCs) have been moving towards revising their business model in the recent decades and we also see radical changes in the industry players due to “shale revolution”. Dana Energy, as an Iranian company with focus on upstream industry, in the past year started to move from a holding structure to a corporate one. The reshaped company, is revising the strategies now that will not necessarily have to follow common norms in defining strategies. Sometimes, commitment to norms may fail to help us achieve our goals. We have to understand the concepts, follow the rules and learn from practice, but make our own way based on core competencies and market changes. This is what the winners, which are not necessarily the majors, have done for several years.
For instance, there was a widespread belief about moving toward an integrated business in order to help increase the value added in the petroleum industry value chain. But today, the approach is not backed any longer by many experts & companies. In the recent past, a large number of independent E&P companies, started building their strategies focusing on a specific part of the value chain, and many of them managed to ensure good performance during the “shale revolution” era. This is the fact while the IOCs, which stuck to outdated approaches, failed to catch up with the changing environment.
So, as you see, consensus among majors is not necessarily a route to success. This is what Dana Energy has considered in the past year while renewing its strategy.
Our company has been active in a wide range of activities, including E&P, oilfield services and energy trading. We believe that each and every segment has to adopt a specific business model, looking for opportunities within the country’s borders and in the international markets alike. So a good strategy would be the one that paves the ground for hitting new targets with a final goal of increasing revenue.
We believe that Dana Energy could become a sample model in the country, proving that new effective strategies could bring in new sources of revenue, as the rise of private companies in the industry could help improve efficiency and productivity in the oil and gas sector.