Due Diligence (Oil & Gas Sector)
Case: A major oil field equipment manufacturer was selecting their Indian representative partner to represent them in India.
Methodology: IICPL’s team of researchers conducted due diligence and exhaustive reputational intelligence exercise to track down the subject entity’s and its key principal’s market standing and major operations. India’s oil and gas PSUs and private oil players were contacted. Former employees of the subject company were contacted to understand the work practices and the level of compliance to international business ethics.
Risk Identification: Discreet market intelligence inquiries revealed that the subject entity has been representing a leading drilling oilfield components manufacturer in India, since last many years. During the course of time, the subject entity’s key principle has developed close relations with key decision-makers of India’s leading oil and gas public sector companies. The due diligence investigation further revealed that monetary benefits were being provided by the key principal, to key people senior-level positions, in order to secure big tenders. This accounted to FCPA violations and thus a potential business risk.