Introduction

Procurement in the energy sector is unique due to its reliance on large-scale infrastructure, high capital expenditures, strict regulatory compliance, and evolving sustainability demands. Whether in oil and gas, renewables, or electricity markets, effective procurement strategies can reduce costs, optimize supply chains, and ensure long-term operational resilience.

This course provides a deep dive into modern procurement practices in the energy sector, integrating topics such as risk management, supplier negotiations, regulatory compliance, sustainability, digital transformation, and geopolitical considerations.

Course Objectives

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

• Understand procurement frameworks within oil & gas, renewables, and power industries.
• Navigate contract management and regulatory requirements specific to energy procurement.
• Identify cost optimization strategies for capital-intensive projects.
• Develop risk management plans addressing price volatility, supply chain disruptions, and geopolitical risks.
• Apply ESG (Environmental, Social, and Governance) principles to sustainable energy procurement.
• Leverage digital tools and AI-driven procurement solutions for efficiency.
• Understand the role of local content policies in energy procurement.
• Build effective supplier relationships for long-term strategic partnerships.

Who Should Attend?

This course is ideal for professionals working in procurement and supply chain roles in the energy industry, including:

• Procurement & Supply Chain Managers in oil, gas, and renewable energy firms.
• Contract Managers & Legal Professionals handling procurement agreements in energy.
• Energy Project Managers overseeing procurement for large-scale projects.
• Sustainability Officers focused on responsible energy sourcing.
• Finance & Risk Management Professionals in energy procurement.
• Government & Regulatory Officials involved in energy policies.
• Technology & Digital Transformation Experts optimizing procurement with AI and automation.

5-Day Course Outline

Day 1: Procurement Fundamentals in the Energy Sector

• Overview of Energy Procurement
  • Differences in procurement across oil, gas, renewables, and electricity markets.
  • Key procurement challenges in the energy sector (e.g., cost, risk, sustainability).
• Energy Industry Procurement Frameworks
  • Understanding procurement cycles for energy projects.
  • Differences between upstream, midstream, and downstream procurement in oil & gas.
• Regulatory & Compliance Requirements
  • Global energy procurement regulations.
  • Local content requirements and government mandates.
• Case Study: Examining procurement strategies of major energy companies.
• Workshop: Mapping out a procurement cycle for a new energy project.

Day 2: Contracting & Risk Management in Energy Procurement

• Types of Contracts in Energy Procurement
  • EPC (Engineering, Procurement, Construction) contracts.
  • Power purchase agreements (PPAs) for renewables.
  • Long-term vs. short-term supply contracts.
• Risk Management in Energy Procurement
  • Managing price volatility of energy commodities.
  • Political and geopolitical risks in energy supply chains.
  • Force majeure clauses and contract risk mitigation.
• Supplier Due Diligence & Relationship Management
  • Vetting suppliers for compliance, reliability, and sustainability.
  • Strategies for supplier collaboration and negotiation.
• Workshop: Drafting key contract clauses to mitigate procurement risks.

Day 3: Cost Optimization & Strategic Sourcing in Energy Procurement

• Cost Control Strategies in Energy Procurement
  • Leveraging economies of scale for cost reduction.
  • Strategic supplier selection and competitive bidding.
• Category Management & Strategic Sourcing
  • Identifying high-impact procurement categories in energy.
  • Balancing cost, quality, and supplier reliability.
• Supply Chain Optimization in Energy
  • Integrating procurement with logistics and operations.
  • Impact of digitalization on energy supply chains.
• Technology in Procurement: AI & Automation
  • Predictive analytics for procurement decision-making.
  • Blockchain and smart contracts in energy transactions.
• Workshop: Building a cost-reduction strategy for an energy procurement project.

Day 4: Sustainability & ESG in Energy Procurement

• Green Procurement & Renewable Energy Sourcing
  • Sustainable procurement best practices.
  • Carbon footprint reduction in supply chains.
• Compliance with ESG & Sustainability Policies
  • Global energy transition trends and regulatory compliance.
  • Renewable energy procurement strategies.
• Supplier Sustainability Audits & Due Diligence
  • Ensuring supplier adherence to ESG policies.
  • Transparency in supply chains through digital reporting.
• The Role of Local Content Policies
  • How local content laws impact procurement decisions.
  • Balancing local economic benefits with cost considerations.
• Case Study: Sustainability challenges in energy procurement.
• Workshop: Designing a sustainable procurement strategy for an energy company.

Day 5: The Future of Energy Procurement & Digital Transformation

• Energy Procurement in the Digital Age
  • Emerging technologies (AI, IoT, blockchain) in procurement.
  • Digital procurement platforms and e-auctions.
• Geopolitical Trends & Market Dynamics
  • The impact of energy transition policies on procurement.
  • Managing international procurement risks.
• Developing a Future-Ready Procurement Strategy
  • Scenario planning and resilience-building for procurement teams.
  • Preparing for energy supply chain disruptions.
• Final Project: Participants will develop a strategic procurement plan addressing cost, risk, and sustainability for an energy project.
• Wrap-Up & Next Steps: Action plans for applying new procurement strategies in energy companies.