A joint venture is a business relationship between two or more parties to undertake economic activity together. All parties agree to share in the profits and losses of the enterprise. The venture is for one specific project only, rather than for a continuing business relationship as in a strategic alliance.
Joint ventures are very common in the oil and gas industry, and are often cooperations between a local and foreign company. A joint venture is often seen as a very viable business alternative in this sector, as the companies can complement their skill sets while it offers the foreign company a geographic presence.
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