In this paper the shift towards new types of project organisation within the Offshore Industry is explained and discussed. Special focus is given to the organisational concept of Project Alliancing. The principles, structure and culture of a Project Alliance as applied within the Offshore Industry are described. In the paper the organisational concept of Project Alliancing is discussed on its potential to reduce project costs and enhance profits, both for the operator (oil and gas company) as well as for participating contractors. A Risk and Reward Mechanism developed to share project risks and rewards between allied parties is explained for an alliance case. Based upon an in-depth study carried out within a contractor company in the Offshore Industry the organizational and financial implications of Project Alliancing are presented.