This presentation will examine the coopetition paradox that strategic alliances face when competing firms cooperate. Using a process study approach, we study the relationship between competition and cooperation in the formation of an industry-wide alliance of oil and gas companies in Alberta, Canada. Our findings reveal a dynamic oscillating pattern:  the need to cooperate is threatened by competitive pressures and this tension requires an intervention by champions. Using both formal and informal practices, champions separate and integrate competitive and cooperative goals. We also find that the tension persists over the course of the alliance formation. These findings contribute to both the alliance formation and coopetition literatures.