Centralized Procurement in Oil & Gas Industry

Abstract : Ever since the crude oil prices plunged to as low as USD50 per barrel, many E&P operators have been forced to slow down their operations. In these testing times, when the top line is not a differentiator for these companies, it has become imperative for them to re-structure their bottom line operations in order to stay afloat. The key to achieving this goal is ?strategic centralized procurement? which would enable cost saving, strategic partnerships with vendors, improved transparency and better understanding of international laws. Efficient cost management by means of centralized procurement has enabled the top performing companies like BP with cross country assets, to cope with the heavy losses. Tier-2 companies like PEMEX are also following the footsteps of BP, Chevron and have shifted to centralized procurement to ensure