How to Be Procurement Manager, Oil and Gas - Job Description, Skills, and Interview Questions

Jan 1, 2023 / 5 Minutes Read / By Albert

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The procurement manager of a major oil and gas company plays a critical role in the day-to-day operations of the business. They are responsible for the purchase of equipment and materials, ensuring they are of the highest quality while still being within the companys budget. As the cost of raw materials and labor is increasing, procurement managers must have a keen eye for cost savings, as well as a good understanding of market prices and trends.

They must also have excellent communication skills to negotiate with suppliers, as well as an understanding of the companys legal requirements when it comes to contracts and compliance. The decisions made by the procurement manager can have a huge impact on the success of the company, from ensuring the timely delivery of materials to mitigating risks and reducing costs.

Steps How to Become

Obtain a Bachelor's Degree. To become a procurement manager in the oil and gas industry, you will need to have a strong educational background. A bachelor's degree in business, finance, or a related field is preferred.
Gain Relevant Work Experience. You should aim to gain as much relevant work experience as possible before applying for a procurement manager position in the oil and gas industry. This could include internships or working in other departments such as supply chain or logistics.
Obtain Professional Certifications. Professional certifications can be beneficial when applying for a procurement manager position in the oil and gas industry. Certifications such as Certified Purchasing Manager (CPM) or Supply Chain Manager (SCM) demonstrate your expertise and skills.
Develop Your Network. Networking is essential when looking for a job in any industry, but especially in the oil and gas industry. Attend industry events, join professional organizations and utilize social media to connect with professionals in the field.
Apply for Open Positions. Once you have gained the necessary education, experience and certifications, you can begin to apply for open positions in the oil and gas industry. Search job boards, company websites and industry publications for procurement manager positions.

As the demand for oil and gas continues to increase, procurement managers must stay ahead of the curve in order to remain capable. This means they must stay up-to-date on developments in the industry, such as new technologies, pricing trends, and changes in supply and demand. they must have a thorough understanding of their company's business objectives, as well as the goals of their suppliers.

Finally, effective communication and negotiation skills are essential in order to secure the best deals for the organization. By proactively staying informed, knowledgeable, and adept at communication and negotiation, procurement managers can be sure that their company is well-equipped to tackle the ever-changing landscape of the oil and gas industry.

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Job Description

Develop and implement strategies for procuring goods and services for the oil and gas industry.
Monitor industry trends to ensure cost-effective sourcing and procurement.
Negotiate contracts with suppliers to ensure the best value for the organization.
Monitor supplier performance to evaluate satisfaction and quality of services.
Develop and manage supplier relationships to ensure long-term partnerships.
Develop and maintain a database of current suppliers and prices.
Monitor and analyze market conditions to identify new sources of supply.
Manage procurement projects, including budgeting and scheduling.
Ensure compliance with all relevant legal and regulatory requirements.
Prepare detailed cost estimates and reports on procurement activities.

Skills and Competencies to Have

Knowledge of oil and gas industry regulations, laws, and standards
Understanding of the procurement cycle
Experience in developing and managing contracts
Ability to negotiate contracts with vendors
Ability to evaluate bids, proposals, and quotations
Knowledge of supply chain management principles and best practices
Strong analytical and problem-solving abilities
Excellent communication and interpersonal skills
Ability to manage multiple projects simultaneously
Proficiency with relevant computer software, such as Microsoft Office Suite

The procurement manager of oil and gas is a highly sought after and critical role. With the demand for oil and gas on the rise, the need for a skilled and knowledgeable procurement manager increases. The ability to effectively manage the procurement process is essential to ensure that the organization is able to obtain the best value for money when making purchases.

This requires a high level of expertise in understanding the different types of contracts and being able to identify risks and opportunities associated with each. an effective procurement manager must also have strong interpersonal skills, as they are often required to negotiate with vendors, as well as build and maintain relationships with suppliers. Furthermore, they must be adept in using data analytics to assess trends and identify cost savings opportunities.

a successful procurement manager must possess a combination of strong technical, analytical, and interpersonal skills to ensure that their organization obtains the best value for money when making purchases.

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Frequent Interview Questions

What experience do you have in supply chain management within the oil and gas industry?
What strategies do you use to ensure that you are obtaining the highest quality products at the lowest possible price?
How do you manage supplier relationships to ensure that the company is getting the best deal possible?
What processes do you employ to ensure that all procurement activities are compliant with relevant laws and regulations?
How do you stay abreast of shifting market conditions in order to obtain the most favorable prices and terms?
Describe a time when you successfully negotiated a contract with a supplier.
How do you handle difficult negotiations with suppliers?
How do you develop and implement effective supplier programs?
What techniques do you use to reduce costs and improve the efficiency of procurement processes?
How would you develop and implement an effective risk management strategy for procuring goods and services?

Common Tools in Industry

e-Procurement Software. A digital platform that streamlines and automates the entire procurement process from tendering and ordering to payment and delivery. (eg: Procurement Express)
Supply Chain Management Software. Software that helps streamline the entire supply chain process, such as inventory and warehouse management, order fulfillment, and customer service. (eg: NetSuite)
Data Analytics Software. A software that collects, analyzes and provides insights into data to help with decision-making. (eg: Tableau)
Risk Management Software. A software that helps identify and mitigate risk in procurement processes. (eg: SAP GRC)
Contract Management Software. A software that helps manage contracts throughout their life cycle, from creation to renewal or termination. (eg: Concord)
Business Intelligence Software. A software that collects, stores, and organizes large amounts of data to provide insights into business operations. (eg: Microsoft Power BI)

Professional Organizations to Know

American Association of Petroleum Geologists (AAPG)
American Petroleum Institute (API)
Society of Petroleum Engineers (SPE)
International Association for Energy Economics (IAEE)
International Petroleum Industry Environmental Conservation Association (IPIECA)
International Association of Oil & Gas Producers (OGP)
World Energy Council (WEC)
World Petroleum Council (WPC)
Oil and Gas Producers Association (OGPA)
International Association of Drilling Contractors (IADC)

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Common Important Terms

Procurement. The act of obtaining goods, services, or works at the best possible price, terms, and conditions while meeting the required specifications and standards.
Supply Chain Management. The management of all activities related to the flow of goods, services, and information from the raw material supplier to the end customer.
Contract Management. The process of planning, controlling, and overseeing the execution of contracts and agreements between parties.
Risk Management. The process of identifying, assessing, and controlling potential risks within a project or organization.
Quality Assurance. The process of ensuring that products and services meet specified standards before they are released to customers.
Logistics. The coordination of resources to achieve the timely and cost-effective delivery of goods and services.
Inventory Management. The process of planning, organizing, controlling, and monitoring inventory within an organization.
Cost Control. The management of costs to ensure that objectives are met in a cost-effective manner.
Negotiation. The process of bargaining between two or more parties to reach an agreement on a particular issue.

Frequently Asked Questions

What is a typical responsibility of a Procurement Manager in Oil and Gas?

A Procurement Manager in Oil and Gas typically oversees the acquisition of materials, services and equipment, manages supplier relationships, and negotiates contracts with suppliers.

What qualifications are required for a Procurement Manager in Oil and Gas?

Qualifications for a Procurement Manager in Oil and Gas typically include a minimum of a bachelor's degree in business, engineering, or a related field and at least 3 years of experience in procurement or supply chain management.

What kind of budget does a Procurement Manager in Oil and Gas typically manage?

A Procurement Manager in Oil and Gas typically manages a budget of several million dollars.

What are the key metrics used to measure the success of a Procurement Manager in Oil and Gas?

Key metrics used to measure the success of a Procurement Manager in Oil and Gas include cost savings, supplier performance, on-time delivery, compliance with regulations, and quality of deliverables.

What skills are most important for a Procurement Manager in Oil and Gas to be successful?

The most important skills for a Procurement Manager in Oil and Gas to be successful include strong negotiation skills, organizational skills, communication skills, problem-solving skills, and the ability to work with limited resources.

Web Resources

Procurement / Sourcing Manager - NC State Continuing and mckimmoncenter.ncsu.edu
Procurement Manager | MIT Medical medical.mit.edu
Five Effective Methods for Selecting Suppliers in the Oil and Gas ... publication.sipmm.edu.sg