NEBOSH Special- Research Analysis of Oil and Gas company

Introduction

Pacific Oil & Gas (PO & G) is an independent energy resource development company that has a large investment in all energy development - oil and gas development, LNG acquiring terminals, power stations and gas transmission networks.

I have selected this business because their work is based in Sumatra Island, Indonesia, in the group above, on discovery, growth and production of oil and gas. They include the construction in China of LNG terminals and massive Combined Cycle Gas turbines (CCGT). They are in the process of intermediate and downstream operation.

They also discuss other energy needs initiatives and developments on a daily basis, including biomass, methane bed and renewables.

They are competitive and rise quickly even though they are less than 10 years old. Pacific Oil & Gas (PO & G) has initiated big projects successfully in Indonesia and China over a span of seven years. They built close ties with some of Asia's leading and most influential energy firms and became one of only two foreign companies that could invest in LNG acquiring terminals in China.

In certain aspects, these goods can also be sold and supplied to customers and end users such as gasoline, diesel oil, ethanol, lubricants, paraffin, jets of fuel, asphalt, heat oil, LSG and a range of other types of fuel-petrochemicals.

Supplier Selection Criteria and Issues

To excel in the project and the company as a whole is necessary to select the right supplier. In Singapore. In Singapore. The top ten tracks will then be split into two major categories each of which will contain five items. The first category consists of technical features and sales features, including content, availability, distribution, service and warranties. The second group contains the technological, production area, capacity, financial status, work experience and location. The second group is focused on the company. To analyze and decide the weights and orders of ten chosen processes, the analytic hierarchy procedure (AHP) and Delphi methods are used. The findings suggest that consistency and price of 0.376 and 0.228 respectively are very significant. The findings also suggest that technology and communications techniques are more important than basic business processes.

The choice of the best contractor is an important consideration with far-reaching ramifications for constructing and coordinating programs. A process begins by assessing vendors according to some standard and proposes the right supplier for most businesses. The new supplier selection mechanism for most companies. Some businesses provide assessment and supplier procurement processes. Any firms, however, ultimately negotiate with good sellers. This is because of the idea of trade decisions – for example, the preference of an inexpensive provider that has no best distribution alternative. These vendors sell products that are not compatible or difficult to work with and handle. Choosing the wrong supplier has many problems, including the loss of time to replace a job, that affect businesses in many ways. In certain situations, because of non-compliance with such material, the products given are refused. The seller must replenish the products in these situations.

The risk strategy covers the amount of potential providers and service and goods supply. Methods of profitability require the effect of capital on purchasing cost and volume. Researchers recommend preferred choices for price, cost, operation, distribution, certification, incentive, benefit and risk. As factors for the selection process, I have improved the consistency, credibility, price and distribution. The output goals, delivery, pricing and the willingness of the vendor to accomplish the objectives are other critical considerations. There are several articles on the consistency aspect. It is relevant because it influences the option of every company's suppliers. Products must follow certain criteria and specifications in order to remain efficient.

ICT for Purchasing Operations

As a sourcing and procurement officer, I have concentrated on customer promotion by defining primary success drivers in the oil and gas industry in Singapore with clear evidence of a range of joint projects with international partners. This starts with a critical study of recent consumer reviews and transactions for B2B and the implementation of specific aspects of the petroleum and gas industry with clear emphasis upon the importance of purchases. Finally, it describes the key variables to be used by organizations specializing in the performance of the

·         Partnerships between client and seller.

·         E-contracting.

·         Method for contracting.

·         Buy group.

·         Specification standard.

·         Project preparation, management assistance and multidisciplinary procurement personnel competencies.

These days, the sheer size taken by B2B Marketing is undeniable. That is to say, more than a third of the world’s trade is done in activities added to the B2B value.

Reduced potential for potential buyers: B2B marketing professionals often work with far fewer buyers than the business for retailers. Markets are therefore highly competitive, and a small number of buyers lead to a reduced customer base with determining customer-supplier relationships, particularly important in such a small business segment.

Group decision-making: B2B acquisitions, as opposed to consumer marketing, are completed through a number of legal steps, including a certain number of approvals and decisions to be made by most people in the company.

Strong mutual involvement between suppliers and customers: due to the interdependency which marks the relationships between suppliers and customers in the B2B areas, dictated in particular by the double notions of the channel and derived demand; a well-built mutual involvement commonly arises between partners in the market. As a result, efforts to retain loyalty are reasonably more intensive than in sectors of fast-moving consumer goods (FCMG)

Supplier-switching cost:  In B2B, changing a supplier is a heavy decision which has to be thought and studied. In fact, this move can have consequences in terms of costs, methods, quality assurance and safety for the customer. If a part of a production plant is working with equipment of manufacturer X, switching them with another manufacturer’s materials require training, tests, redesigning workflows, reviewing quality policies and possibly health, safety and environment procedures.

Promotion: Advertising in B2B is a relatively powerless marketing communications means due to the necessity to offer more meticulous and relevant technical data. Addressees are not many and can be more personally identified and straightforwardly targeted with less cost. Feedback is essential in B2B and consequently the accent is logically placed on personal selling which is the most relevant for business marketing given the reduced number of potential customers

compared to business to consumer fields.

Pricing: in B2B context, prices are often set to suit the competitive bidding process. Discounts take diverse forms and become complicated as they are subject to the risks and opportunities faced by both contractual parties. Negotiation becomes thus of paramount importance in business markets and pricing policies turn to be determined due to the competitive atmosphere, in which purchasers prefer sourcing from the lowest bidder when all other elements of offers are comparable.

Derived demand: In B2B; demand for goods is eventually resulting from demand for consumer goods, and this represents one of the capital concepts in B2B Marketing.

Purchasing Cost Analysis

In recent years, players working in the oil and gas industry have been forced to cut back on operating costs in order to stay strong in the industry due to falling oil prices and electricity prices around the world. In addition, the high costs involved in purchasing and acquiring oil and gas products hamper the industry's growth. As a result, leading companies in the oil and gas sector have begun to use analytical solutions to simplify their purchasing and acquisition processes throughout the supply chain.

With years of experience in providing multiple analytical solutions, Spend Edge has also helped oil and gas industry players reduce the time to change their purchasing processes.Purchasing is an integral aspect of your market, but you have to constantly review your inventory to ensure that you expend the hard earned money. Analyzing procurement involves analyzing what happens in the procurement department, whether the procurement plan is maintained and whether the products maintained at high prices.

Leverage Analysis Technique:

Price research strategy is Leverage because it provides a range of cost control suggestions, such as the use of your purchase power; a pledge to a few vendors and a mutual commitment to reduce net costs. These wide ideas are helpful in leading, but not precise enough to help customers analyze the circumstances they face. While purchasers are conscious that it is necessary to control costs efficiently, there are a range of cost management techniques.

Pressure to finish a precise purchase will discourage purchasers from using the correct job method. This process suggests a methodology for shoppers to classify the type of cost analysis technique for a given purchase

1. Build a Classification System

2. Discuss the techniques of cost analysis serve each classification better

3. Concentration on methods of proactive cost control

Conclusion:

In nutshell, as a purchasing manager of Pacific Oil and Gas Company, I’d firstly select the right supplier as selecting the right supplier is an important decision that has far-reaching consequences for construction projects and the organization as a whole. I’d help the company achieve its goals by joint ventures and B2B marketing. Furthermore, I’d use the procurement analysis along with certain surveys to reduce the purchasing costs of the company.

References:

●      Luzon, B., & El-Sayegh, S. (2016). Evaluating supplier selection criteria for oil and gas projects in the UAE using AHP and Delphi. International Journal Of Construction Management, 16(2), 175-183. doi: 10.1080/15623599.2016.1146112

●      MacWilliam, D. (1970). Fiduciary Relationships in Oil and Gas Joint Ventures. Alberta Law Review, 8(2), 233. doi: 10.29173/alr544

●      Ellram, L. (1996). A Structured Method for Applying Purchasing Cost Management Tools. International Journal Of Purchasing And Materials Management, 32(4), 11-19. doi: 10.1111/j.1745-493x.1996.tb00215.x

●      Ellram, L. (1992). The Role of Purchasing in Cost Savings Analysis. International Journal Of Purchasing And Materials Management, 28(1), 26-33. doi: 10.1111/j.1745-493x.1992.tb00554.x