Developing your own effective procurement and Supply Chain Management (SCM) strategy can make valuable quantifiable contributions to your company’s performance. This practical course shows you how to adopt a “best-practice” model, and outlines the latest thinking in upstream petroleum industry procurement.

This workshop makes extensive use of oil industry case studies, examples and exercises, with delegates working in syndicates to analyses problems and recommend solutions.

What is a contract?

• the contract as a legal instrument
• the contract as an investment tool

What is the supply chain and how do we manage it?

• illustration of supply chain management (SCM)
• benefits of defining SCM
• SCM analysis for opportunities to save money

Developing a best-practice procurement process

• a suggested process for managing contracts from beginning to end
• the role of end-users and the contracts specialist

What makes the petroleum industry different?

• the role of government, national oil companies (NOC’s) and co-venturers

What is a contracts strategy and how do we develop one?

• oil industry case studies and examples
• the essential ingredients of a contracts strategy
• the process of developing a contracts strategy

The role of contracts policy and procedures

• the vital relationship between contracts strategy, policy and procedure
• oil industry examples of contracts policy and procedure

Alternative contracts strategies

• oil industry examples and case studies

The role of contract risk assessment

• the importance of contract risk assessment in strategy and contractor selection
• how to carry out a contract risk assessment

Alternative tendering strategies

• functional versus technical specifications
• oil industry examples

Different types of contracts

• strengths and weaknesses of alternative contract types
• how to choose an appropriate contract compensation method

How to prepare contractor selection criteria

• oil industry examples
• traditional versus non-traditional selection criteria

How to evaluate tender submissions

• how to ensure best-value selection
• how to avoid common mistakes

Understanding the “small print”

• getting to grips with contractual language and terms and conditions

How to manage the contract after it has been awarded

• the role of the “kick-off” meeting
• preventing and resolving disputes
• managing cost and performance
• how to give contractor feedback