Independents

Independent energy companies are those that, contrary to IOC's, focus only on either the upstream or downstream side of the oil and gas business. In other words, their business is centred around exploration and production (E&P) activities or on refining and marketing, but not both.

While both independents and IOCs are driven by reserve replacement growth and strong financial performance, independents usually focus on smaller assets. These assets are based on either a smaller hydrocarbon basin or simply a more minority stake in a larger field. Moreover, independents often try to spin gold out of acreage discarded by the majors.

The last ten years have witnessed a global trend towards privatisations and consolidation among independents. Thanks to their mega mergers, the largest independents have achieved an operational scale that rivals their integrated cousins.

Independents are also more inclined to go in marginal regions that are deemed either not promising enough or too risky by the supermajors.