Enhancing Materials Procurement Efficiency in Oil and Gas Projects

Abstract: Materials procurement in oil and gas projects is a critical element of effective project management, primarily due to its substantial direct and indirect impacts on schedule and cost control. This paper explores how an effective materials procurement control can lead to improved project completion schedule, cost management, and quality control. It identifies key challenges such as limited vendor options, geopolitical influences, raw material price volatility, and stringent local content requirements. The paper emphasize on the necessity of a strategic approach to procurement, which includes diversifying the vendor list, foostering strong vendor relationships, standardizing material specifications, and conducting comprehensive risk assessments. Additionally, it highlights the role of advanced technologies, such as Enterprise Resource Planning (ERP) systems, Digital Twins, and Artificial Intelligence (AI), in streamlining procurement processes, optimizing inventory management, and enhancing inspection efficiencies. By adopting these strategies and technologies, oil and gas companies can effectively navigate through the project complexities and achieve the targeted successful outcomes.

Keywords: critical element, Oil and Gas Projects, Digital Twins, Artificial Intelligence (AI).

Title: Enhancing Materials Procurement Efficiency in Oil and Gas Projects

Author: Abdulrhman Alghamdi

International Journal of Interdisciplinary Research and Innovations

ISSN 2348-1218 (print), ISSN 2348-1226 (online)

Vol. 12, Issue 3, July 2024 - September 2024

Page No: 49-53

Research Publish Journals

Website: www.researchpublish.com

Published Date: 20-August-2024

DOI: https://doi.org/10.5281/zenodo.13347542

Paper Download Link (Source)

https://www.researchpublish.com/papers/enhancing-materials-procurement-efficiency-in-oil-and-gas-projects