Oil and Gas Procurement and Materials Management Training Course

Course overview

Oil and gas procurement decisions are made under conditions that amplify cost, schedule and operational risk: long-lead rotating equipment, technically complex specifications, remote logistics, volatile commodity pricing, shutdown deadlines and strict quality requirements. A weak requisition, unclear bid evaluation, untested supplier capacity or poorly controlled material status can delay drilling, construction, maintenance or production. This course equips procurement and materials professionals to make auditable commercial decisions while protecting project schedules, asset availability and total installed cost.

Participants work through the full procurement and materials-management cycle for oil and gas operations and projects. They learn to convert technical requisitions into sourcing strategies; build bidder lists and prequalification criteria; issue RFQs and ITTs; conduct technical-commercial bid evaluations; negotiate contracts and purchase orders; manage expediting, inspection and logistics; and control inventory, surplus and critical spares. The course addresses supplier risk, Incoterms 2020, vendor data requirements, lifecycle cost analysis, contract interfaces and the controls needed for high-value, long-lead packages.

Teaching combines instructor-led briefings with realistic package documentation, including requisitions, bid tabs, expediting reports, inspection release notes and material-status records. Teams evaluate a simulated procurement package for a production-facility upgrade, defend an award recommendation and respond to delivery, quality and documentation issues. Each participant leaves with a practical procurement and materials-control toolkit: a sourcing plan, weighted bid-evaluation matrix, supplier-risk register, expediting plan and 90-day workplace application plan.

The course is designed for experienced procurement, supply chain, materials and project personnel who already work with technical purchases and need stronger sector-specific controls. It is equally relevant to managers responsible for approving awards, reducing project material exposure and improving supplier performance across upstream, midstream, downstream and LNG environments.

Course objectives

By the end of this course, participants will be able to:

• Develop a category-specific sourcing strategy for long-lead oil and gas equipment and bulk materials
• Translate technical requisitions into RFQ packages with clear commercial, quality and vendor-data requirements
• Apply supplier prequalification criteria using capability, HSE, quality, financial and delivery-risk evidence
• Construct a weighted technical-commercial bid evaluation matrix and award recommendation
• Calculate total cost of ownership using price, logistics, inspection, spares, warranty and lifecycle-cost inputs
• Negotiate purchase-order terms covering Incoterms 2020, liquidated damages, warranty, change control and payment milestones
• Build an expediting and material-status plan using critical-path dates, inspection hold points and vendor-document milestones
• Produce a supplier-risk register and 90-day procurement improvement action plan for a live work area

Benefits of attending

Target competencies

Who should attend

• Procurement Managers — who approve sourcing strategies, supplier selections and high-value commercial commitments
• Senior Buyers and Procurement Officers — who run RFQs, evaluate bids and issue purchase orders for technical packages
• Materials Managers — who control critical spares, project materials, warehousing and surplus inventory
• Supply Chain Engineers — who coordinate technical, commercial, quality and logistics inputs for equipment packages
• Project Procurement Managers — who must protect construction schedules from long-lead and supplier-delivery exposure
• Expeditors and Logistics Coordinators — who need to connect vendor progress, inspection release and shipment milestones

Requirements and prerequisites

Participants should have practical exposure to purchasing, supply chain, maintenance materials or project procurement in an industrial setting. The course assumes familiarity with purchase orders, RFQs, supplier quotations, basic contract terms and spreadsheet use for comparing costs or dates. Experience with SAP MM, SAP S/4HANA or another ERP system is helpful, but participants do not need to be system experts. No legal qualification, engineering degree or prior negotiation certification is required. Those new to oil and gas should first understand basic project phases, equipment categories and the distinction between operating and capital expenditure procurement.

Training methodology

The programme uses instructor-led explanations of oil and gas procurement controls alongside guided analysis of realistic package documents. Participants work in teams on a production-facility upgrade scenario, reviewing a technical requisition, supplier prequalification evidence, quotations, delivery schedules, inspection plans and material-status reports. Short exercises use bid tabs, risk registers and expediting trackers to test decisions under schedule and quality pressure. Facilitated debriefs compare commercial options and escalation choices. The final session converts course tools into an individual 90-day application plan for a current procurement or materials-management challenge.

Course outline

Day 1: Oil and Gas Procurement Strategy and Demand Definition

• Upstream, midstream, downstream and LNG procurement operating contexts
• CAPEX, OPEX, shutdown and maintenance procurement demand profiles
• Long-lead equipment identification and critical-path mapping
• Technical requisition quality checks and scope-gap analysis
• Category strategy for rotating equipment, valves, line pipe and bulk materials
• Make-buy decisions and supply-market intelligence
• Stakeholder alignment using responsibility and approval matrices

Workshop: Participants diagnose a flawed compressor-package requisition and produce a sourcing strategy with critical dates, stakeholders and package risks.

Day 2: Supplier Qualification, RFQs and Bid Evaluation

• Approved vendor lists and supplier prequalification workflows
• Supplier capability assessment for manufacturing, HSE, quality and financial capacity
• RFQ and ITT package structure for technical equipment purchases
• Commercial clarifications, deviations and bid-normalisation methods
• Technical-commercial bid evaluation matrix design
• Total cost of ownership and lifecycle-cost comparison
• Award recommendation papers and approval audit trails

Workshop: Teams evaluate three supplier submissions for a control-valve package and produce a weighted bid tab with an award recommendation.

Day 3: Contracting and Commercial Risk Control

• Purchase-order terms and conditions for engineered equipment
• Incoterms 2020 selection and transfer-of-risk analysis
• Payment milestones, retention, performance security and advance-payment safeguards
• Liquidated damages, warranty and remedy clauses
• Change orders, variation control and claims-prevention records
• Vendor data requirements and document-register management
• Negotiation planning using objectives, concessions and walk-away positions

Workshop: Participants negotiate key terms for a pump-package purchase order and produce a concession log and negotiated-terms summary.

Day 4: Expediting, Inspection, Logistics and Materials Control

• Production expediting plans and vendor progress measurement
• Inspection and test plans, hold points and release documentation
• Vendor data-book milestones and document expediting
• Freight forwarding, packing, preservation and route-risk controls
• Material-status reporting and critical-item exception management
• Warehouse receiving, quarantine, traceability and preservation practices
• Critical spares, surplus materials and inventory-classification methods

Workshop: Participants build an expediting and material-status tracker for delayed equipment, identifying recovery actions, owners and escalation dates.

Day 5: Supplier Performance and Integrated Procurement Governance

• Supplier performance scorecards and corrective-action follow-up
• Procurement KPI design for cost, delivery, quality and compliance
• Supplier-risk registers and contingency sourcing plans
• Ethical procurement, conflicts of interest and anti-bribery controls
• ERP master-data controls for vendors, materials and purchase orders
• Cross-functional interfaces with engineering, project controls, QA/QC and operations
• Procurement assurance reviews and lessons-learned capture

Workshop: Participants present an integrated sourcing, risk and materials-control plan for the case project and complete a 90-day workplace action plan.

Tools & standards covered

SAP S/4HANA Materials Management, SAP Ariba Sourcing, Incoterms 2020, ISO 20400 Sustainable Procurement

A typical training day

Live online deliveries follow the same structure in the East Africa Time zone, with shorter screen blocks and longer breaks.

What the fee includes

How you can take this course

Certification

Participants who complete the full five days receive the Skillset Development Certificate of Completion, stating the course title, course code, dates and delivery format — suitable for professional-development records and employer reimbursement.

Frequently asked questions