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Energy Projects Logistics and Supply Chain Management

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Programme Overview

The oil and gas industry is involved in a global supply-chain that includes domestic and international transportation, ordering and inventory visibility and control, materials handling, import/export facilitation and information technology. Thus, the industry offers a classic model for implementing supply-chain management techniques. In a supply-chain, a company is linked to its upstream suppliers and downstream distributors as materials, information, and capital flow through the supply-chain.

Energy Projects Logistics and Supply Chain Management is a five-day, multi-disciplinary programme designed to help you create and implement innovative strategies that can help your organisation serve customers effectively and efficiently. We understand the challenges you face – from fast-paced globalisation, accelerating technological innovation to greater expectations of your customers. This programme is designed to address these issues through key concepts that underpin supply chain excellence.

Who should attend

Procurement specialists, Logistics & Sourcing specialists, Supply Chain Professionals, Category Managers, Contracting Unit Supervisors, Project Engineers and Project Managers, Stock analysts and Contract Administrators.

By the end of this training course, participants will have:

  • Obtain a detailed understanding of the complete upstream oil and gas supply chain
  • Develop strategies to successfully integrate your supply chain activities across the value chain
  • Apply the skills of collaborative working and problem-solving
  • Mitigate risk with sophisticated strategy development
  • Demonstrate knowledge of logistics operations
  • Analyse and evaluate the solutions appropriate to their own business
  • Devise and apply effective performance measures to maintain and existing networks

Course Outline

Introducing Logistics and Materials Management in Oil and Gas

  • Definition of “logistics”
  • Logistics as an element of the supply chain in Oil and Gas industry
  • Managing lead times
  • Optimising inbound logistics & inventory levels
  • Insource vs. outsource?

Strategic Supply Chain Management

  • What is Supply Chain Management
  • Supply-chain link in the oil and gas industry
  • Critical Role of Supply Chain Management in Oil and Gas
  • Metrics in Supply Chain Management
  • What Makes Supply Chain Management a strategic function in Oil and Gas

Procurement, Purchasing, Inventory and Stock

  • Procurement
  • § Principles of purchasing
  • § Identification of need
  • § Specification of requirement
  • § Identifying sources
  • § Choosing potential suppliers
  • § Selecting the supplier
  • § Placing the order
    • More advanced concepts
    • § Total Cost of Ownership
    • § Procurement targeting
    • § Category management
      • In-house classification of goods
      • § Purchasing for immediate use
      • § Inventory and stock
      • § Project materials
        • Inventory principles
        • § To stock or not?
        • § Consequences of non-availability
          • Decisions about how much to buy and when
          • Opportunities to avoid holding stock

Receiving Goods, Oil and Gas Materials and Asset Management

  • The supporting documentation that underpins logistical activities:
  • § Objectives and importance of the receiving process
  • § Certification
  • § Receiving processes
  • § Treatment of wrong receipts
    • Examples of specific materials involved in Oil and Gas activities, and the logistical considerations relating to them:
    • § Oil Country Tubular Goods
    • § Drilling chemicals
    • § Well head equipment
      • Asset management
      • § Asset management
      • § Refurbishment
      • § Repair
      • § Maintenance
      • § Standby equipment

Managing the Transportation Function

  • The different mediums utilized in performing the logistic function within Oil and Gas activities
  • The challenges and difficulties that face the logistic function utilizing land based means (road transportation): Light transport, Heavy transport, Specialist vehicles, General principles of road transport management and control
  • The challenges and difficulties that face the logistic function within a variety of marine environments: Riverine, Estuarine, Swamp, Offshore.
  • An assessment of the merits of fixed wing vs. rotary transportation and when each is more appropriate: Personnel, Cargo, Fixed wing, Rotary.
  • A brief discourse that provides guidance on manual handling: Lifting, Forklifts, Manual handling.
  • An overview and identification of some of the likely challenges facing the future performance of logistical operations as the Oil and Gas industry continues to evolve
  • Health, Safety and Environment (HSE)

Managing the Warehousing Function

  • Storage of goods
  • § What, where, quantity, condition, access
  • § Warehouse and yard facilities
  • § Basic requirements
  • § Functions and processes
  • § Organization and layout
    • Storage systems
    • § Shelving
    • § Racking systems
    • § Location and identification systems: Manual systems, Computerized systems, Bar coding
      • Special storage requirements
      • § Hazardous materials
      • § Climate control
      • § Security issues when the inventory is valuable
      • § Why project materials need to be treated differently from normal inventory/materials
      • § Other special storage requirements

International Trade, Environment and other Management Issues

  • Aspects of international trade: Customs regimes, Financial instruments, Insurance issues, INCOTERMS
  • Environmental issues
  • Inventory accuracy
  • Catalogues
  • Management issues: Use of third-party logistics & Key Performance Indicators


To enhance learning effectiveness, hand on experience will be emphasised in this programme through role-plays in class presentation, group facilitation and class critique.

Case studies, group discussions and video support will also be used to enhance learning experience. Fun quizzes will be injected to provide formative assessment and a fun learning environment.

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