Oil & Gas Procurement and Supply Chain  Management Course

Course Overview

In the ever-evolving landscape of the oil and gas industry, firms are challenged by dynamic environments and fluctuating supply and demand conditions. Events like pandemics, such as COVID-19, can severely disrupt the steady flow of products and services along the oil and gas value chain. This course on strategic procurement and supply management in the oil and gas industry is designed to help organizations establish robust policies that mitigate such disruptions. By implementing comprehensive procurement and supply chain strategies, oil and gas companies can enhance efficiency, sustainability, and corporate value. Strategic procurement and supply management can reduce operational costs while improving quality and productivity. 

Target Audience

This training program is ideal for:

• Purchasing and contract management professionals.
• Project, engineering, operational, and maintenance personnel involved in the planning and execution of purchases and contracts.
• Senior supply chain managers and executives who are focused on leadership within their supply chain.
• Individuals seeking to create actionable strategies to increase value and reduce costs within the supply chain.

If you're involved in any aspect of procurement or supply chain management within the oil and gas industry, this course is tailored to provide you with the tools and insights you need. 

Course Objectives

Upon completing this strategic procurement and supply management course, participants will:

• Enhance core competencies in exploration and production (E&P) procurement.
• Understand the business drivers and interface issues supported by procurement.
• Grasp the role of industry economics in dictating good procurement practices for cost management.
• Recognize global compliance needs and how procurement can add value.
• Understand the modeling of the industry in the upstream, midstream, and downstream value chains.
• Learn about the characteristics of supply markets in oil and gas and emphasize market intelligence practices to manage supply risks.
• Identify effective procurement/supply chain metrics for performance improvement.
• Anticipate and mitigate procurement contract risks.

Key Outcomes

• Core Competencies: Build essential skills for effective procurement in the oil and gas sector.
• Economic Insights: Understand how industry economics influence procurement strategies.
• Risk Management: Learn to anticipate and mitigate risks in procurement contracts.
• Performance Metrics: Develop metrics for evaluating and improving supply chain performance.

Course Outline

Module 1: Defining Strategic Procurement in the Oil and Gas Industry 

• Understanding world-class procurement and supply management.
• An overview of procurement in the industry, including host country and strategic relationships.
• The role of procurement management in the oil and gas value chain.
• Trends in global sourcing and local content requirements.

Module 2: Continuous Improvement Strategies & Cost Optimization 

• Creating industry category management strategies.
• Bridging key business drivers between projects (CAPEX) and operations (OPEX).
• Techniques for driving down prices through cost/price analysis.
• Supplier collaboration technologies and improving MRO procurement.

Module 3: Supplier Collaboration and Relationship Management 

• Addressing industry regulatory and contractor safety compliance.
• Establishing strategic supplier relationships and best practices.
• Crafting dynamic and meaningful SLAs to maintain supplier relationships.
• Navigating oil and gas law and global contracting risks.

Module 4: Procurement Annual Materials Operational Planning 

• Setting annual procurement objectives and conducting situation analyses.
• Developing procurement annual plans and budgets.
• Implementing materials classification methods for planning and control.

Module 5: Strategic Contract Negotiations 

• Understanding the key components of a commercial contract.
• Preparing for win-win negotiations and dealing with difficult suppliers.
• Recognizing when and how to renegotiate contracts.
• Establishing key procurement and supplier performance metrics.