1 AIT Asian Institute of Technology

Improving contract and procurement activities to achieve higher efficiency: a case study of a Japanese Oil and Gas Company in Vietnam

AuthorNguyen Manh Hung
NoteA project study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration (Executive) in International Business – Management of Technology (VN), School of Management
PublisherAsian Institute of Technology
AbstractIn every business, Contract activities play an important role in its operation because every business is conducted under contracts between related parties. In the petroleum industry, the Contract and Procurement (C&P) activities are very important, complicated and challenging because the values of contracts are very high (could be up to tens of millions of dollars), and the nature of equipments and services are complicated and highly risky, involving high technologies. In addition, not like many other popular consumer products, the bargaining power of petroleum contractors, especially of global service providers, is high, which makes the oil and gas producers (users of services) a lot of difficulties in dealing with C&P matters. Therefore, the question of improving C&P activities of JPEC (the analysed case) is useful and critical. In particular, those challenging activities in the C&P activities are Negotiation with contractors, Communication and Conflict Management between the joint working teams in JPEC. Communication and Conflict Management is usually the critical problem in oil and gas operation because, for a company like JPEC, it usually has its technical groups and the other non-technical groups. The technical group plays an important role in production which requires high technical knowledge and skills. Meanwhile the non-technical groups deal with other non-technical issues such as contractual matters, logistics and others. The problem is that no single group could handle the entire works to make a successful business. There must be a joint work of the technical and non-technical groups to make the business go on right track. However, it is usually to see problems in Communication and Conflict Management between such joint working groups, which have been causing highly adverse impacts on business performances. This Research has been conducted based on the analysis and contrast between the actual C&P operation of JPEC, actual experiences and theoretical concepts. The research has come out with some suggested guidelines for handling Negotiation and Conflict Management, as well as the solutions to enhance communication efficiency in general between the joint working groups of an oil and gas company—JPEC.
Year2012
TypeProject
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Chairperson(s)Vatcharapol Sukhotu
Examination Committee(s)Zimmermann, Willi;Juthathip Jongwanich


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