Introduction

Procurement in the oil and gas industry is a critical component that supports the delivery of high-value projects, from exploration and extraction to refining and distribution. With an increasing focus on cost-effectiveness, sustainability, and risk management, procurement professionals in the oil and gas sector face unique challenges. This 5-day training course will provide an in-depth exploration of procurement processes, strategies, and best practices tailored to the oil and gas industry. Participants will gain valuable insights into the complexities of sourcing materials, managing contracts, and navigating regulatory requirements specific to the sector.

Course Objectives

By the end of this course, participants will be able to:

• Understand the key procurement challenges in the oil and gas industry.
• Develop strategies to manage supply chains effectively in complex environments.
• Navigate procurement regulations, health and safety standards, and compliance in the oil and gas sector.
• Apply risk management techniques specific to procurement in oil and gas projects.
• Identify the unique requirements of procuring equipment, materials, and services for upstream, midstream, and downstream operations.
• Negotiate and manage contracts effectively within the highly regulated and dynamic oil and gas industry.
• Evaluate supplier performance, cost control, and ensure long-term value in procurement decisions.
• Understand the role of sustainability and green procurement in oil and gas.

Who Should Attend?

This course is designed for:

• Procurement professionals working in the oil and gas sector, including those in upstream, midstream, and downstream operations.
• Contract managers, project managers, and supply chain managers in the oil and gas industry.
• Purchasing managers involved in sourcing materials, equipment, and services for oil and gas projects.
• Legal professionals specializing in oil and gas contracts.
• Environmental managers and sustainability officers working in the oil and gas industry.
• Government officials and regulatory bodies involved in oil and gas procurement policies.
• Consultants and advisors working with organizations in the oil and gas industry.

Course Outline

Day 1: Introduction to Procurement in the Oil and Gas Industry

• Overview of the Oil and Gas Industry:
  • Key segments: upstream, midstream, and downstream.
  • The global supply chain and procurement challenges in the oil and gas sector.
  • Market trends, geopolitical factors, and their impact on procurement.
• Procurement Strategy in Oil and Gas:
  • Defining procurement strategies tailored to oil and gas operations.
  • Cost management and capital expenditure (CapEx) considerations.
  • Balancing cost reduction with project delivery timelines.
• Regulatory and Compliance Frameworks:
  • Overview of global and local regulations affecting procurement in oil and gas (e.g., FCPA, OFAC regulations, ISO 9001).
  • Environmental and safety standards: HSE requirements.
  • Understanding local content laws and contracting requirements in various regions.

Day 2: Supply Chain Management and Sourcing in Oil and Gas

• Managing the Oil and Gas Supply Chain:
  • Key elements of the oil and gas supply chain: exploration, procurement, logistics, and distribution.
  • Challenges in managing complex supply chains in remote locations.
  • Importance of strategic sourcing and supplier relationships.
• Risk Management in Procurement:
  • Identifying and mitigating risks in the procurement process: geopolitical, financial, and environmental risks.
  • Managing risks in supply chain disruptions and vendor reliability.
  • Use of risk matrices and contingency planning in oil and gas procurement.
• Procurement of Oil and Gas Equipment:
  • Sourcing and selecting specialized equipment for exploration, drilling, and production.
  • Understanding the procurement process for high-value capital equipment and spare parts.
  • Long-term maintenance and service contracts for oil and gas equipment.

Day 3: Contracting and Negotiation in Oil and Gas Procurement

• Contract Types in Oil and Gas Procurement:
  • Turnkey contracts, EPC (Engineering, Procurement, and Construction) contracts, and framework agreements.
  • Service contracts and maintenance contracts in upstream and downstream operations.
  • Selecting the appropriate contract type based on project needs and risk profile.
• Contractual Negotiations in the Oil and Gas Industry:
  • Key principles of contract negotiation in high-value, complex oil and gas projects.
  • Understanding price escalation clauses, force majeure, and termination clauses in contracts.
  • Strategies for negotiating with international suppliers, joint venture partners, and government entities.
• Legal and Ethical Considerations:
  • Anti-corruption and compliance issues in oil and gas contracting.
  • The role of due diligence in vendor selection and contract compliance.
  • Understanding the importance of transparent and ethical business practices.

Day 4: Supplier Relationship Management and Performance Evaluation

• Supplier Relationship Management (SRM):
  • Building and maintaining strong relationships with key suppliers.
  • The role of supplier collaboration in cost optimization, innovation, and risk mitigation.
  • Techniques for measuring supplier performance and ensuring quality standards.
• Evaluating Supplier Performance:
  • Key performance indicators (KPIs) for assessing supplier performance: on-time delivery, quality, and cost-effectiveness.
  • Using performance scorecards and conducting supplier audits.
  • Addressing non-performance and managing disputes effectively.
• Sustainability in Oil and Gas Procurement:
  • The growing importance of sustainable procurement in oil and gas.
  • Incorporating environmental, social, and governance (ESG) factors into procurement decisions.
  • Adopting green procurement practices in the oil and gas sector, including the use of eco-labels and sustainable materials.

Day 5: Emerging Trends and Future Challenges in Oil and Gas Procurement

• Technological Advancements in Procurement:
  • The impact of digitalization, blockchain, and artificial intelligence (AI) on procurement processes.
  • Using data analytics for better decision-making and supply chain visibility.
  • Automation and its role in improving procurement efficiency and reducing errors.
• Global Supply Chain Trends and Challenges:
  • Navigating global supply chain challenges: transportation costs, tariffs, and trade policies.
  • The future of offshore procurement, remote procurement, and sourcing in challenging environments.
  • How to deal with the impact of climate change and resource scarcity on procurement strategies.
• Workshop and Group Exercise:
  • Group work on designing a procurement strategy for an oil and gas project, including risk management, contract negotiation, and supplier performance evaluation.
  • Final Q&A and feedback session to address specific participant queries.

Conclusion

This course equips procurement professionals with the knowledge and tools required to manage the complexities of procurement in the oil and gas industry. Participants will leave with a comprehensive understanding of procurement strategies, supply chain management, and best practices for mitigating risks, optimizing costs, and complying with industry regulations. By applying the concepts learned, participants can enhance procurement efficiency, reduce costs, and contribute to the successful delivery of oil and gas projects.

Certification

Upon successful completion of the course, participants will receive a Certified Oil and Gas Procurement Specialist (COGPS) certification from Learnify® Training.

Certification Benefits:

• Demonstrated expertise in procurement and contract management within the oil and gas industry.
• Knowledge of supply chain management, risk mitigation, and contract negotiations in the sector.
• A recognized qualification to enhance career prospects in the competitive oil and gas industry.