Job description for a procurement officer in oil and gas?

Job Description — Procurement Officer (Oil & Gas)

Responsible for end-to-end purchasing of materials, equipment, and services for drilling, projects, operations, and maintenance; ensures cost, schedule, quality, and compliance objectives are met across upstream, midstream, and downstream activities.

I. Core Responsibilities

I.1 Demand intake and clarification: validate scope, technical specifications, quantities, delivery points, need-by dates, and budget availability with requestors.
I.2 Sourcing strategy execution: identify approved suppliers, competitive sets, frame agreements, and local content options aligned to category strategies.
I.3 RFx management: prepare and issue RFIs/RFQs/RFPs, define evaluation criteria, manage bidder Q&A, and ensure HSSE and quality prequalification.
I.4 Bid evaluation: coordinate commercial (CBE) and technical (TBE) evaluations, normalize bids, total cost of ownership analysis, and risk scoring.
I.5 Negotiation: lead price, delivery, warranty, liquidated damages, payment terms, and Incoterms; secure cost savings and value adds.
I.6 Award recommendation: compile evaluation reports, obtain approvals per delegation of authority, and issue letters of intent/award as applicable.
I.7 Purchase order administration: create POs, check T&Cs, attach specifications/drawings/QCPs, apply tax/customs requirements, and route for approval.
I.8 Expediting and logistics coordination: monitor vendor production, inspection milestones, documentation, packing, and shipment; align freight, customs, and last-mile delivery.
I.9 Change orders and variations: process scope changes, lead-time impacts, and unit price adjustments with justification and approvals.
I.10 Supplier performance management: track OTIF, NCRs, warranty claims, and corrective actions; support supplier development and audits.
I.11 Compliance governance: enforce procurement policies, competition rules, anti-bribery/ethics, trade sanctions, and data integrity standards.
I.12 Documentation control: ensure complete manufacturing data records, certificates (MTCs), inspection release notes, packing lists, and commercial invoices.
I.13 Financial coordination: align payment milestones, down payments, performance bonds, bank guarantees, and invoice matching (3-way match).
I.14 Market intelligence: monitor commodity trends, supply risks, lead times, and capacity constraints; recommend hedging/substitution when appropriate.
I.15 Emergency/critical procurement: fast-track sourcing for AOG/rig-down/production-critical items while maintaining minimum compliance.
I.16 Close-out: confirm delivery and acceptance, resolve claims, archive records, and capture lessons learned and savings/avoidance.

I.a Key Metrics & Formulas

I.a.1 Total Cost of Ownership (TCO): $\displaystyle \mathrm{TCO} = P + L + D + H + Q + E$, where: P = purchase price, L = logistics, D = duties/taxes, H = holding cost, Q = quality costs (NCR, rework), E = end-of-life/disposal.
I.a.2 Price Purchase Variance (PPV): $\displaystyle \mathrm{PPV} = (P_{\mathrm{std}} - P_{\mathrm{act}})\times Q$.
I.a.3 On-time Delivery (OTD): $\displaystyle \mathrm{OTD} = \frac{\#\ \mathrm{deliveries\ on\ or\ before\ need\ date}}{\#\ \mathrm{total\ deliveries}}\times 100\%$; OTIF uses the same numerator with “on time and in full.”
I.a.4 PO Cycle Time: $\displaystyle \mathrm{POCT} = t_{\mathrm{PO\ approve}} - t_{\mathrm{PR\ release}}$.
I.a.5 Economic Order Quantity (EOQ) for stocked items: $\displaystyle \mathrm{EOQ} = \sqrt{\frac{2DS}{H}}$, where D = demand, S = ordering cost, H = annual holding cost per unit.
I.a.6 Holding cost estimate: $\displaystyle H \approx i\cdot C + H_{\mathrm{wh}}$, where i = cost of capital, C = unit cost, and $H_{\mathrm{wh}}$ = warehousing and obsolescence per unit.
I.a.7 Savings capture: Hard savings = baseline price - negotiated price; Cost avoidance = avoided premium/expedite fees or risk-driven alternative costs.

II. Required Skills and Demands

II.a Technical Skills

II.a.1 RFx development, bid tabulation, CBE/TBE coordination, and award justification.
II.a.2 Contracting and PO T&Cs (delivery, warranties, LDs, indemnities, IP, confidentiality, Incoterms 2020, payment security).
II.a.3 Category knowledge: drilling tools/equipment, OCTG, valves, rotating equipment, electrical/instrumentation, fabrication packages, MRO, services.
II.a.4 Quality and HSSE vendor requirements: ISO 9001, ISO 14001, ISO 45001, API Q1/Q2, inspection and test plans, QCPs.
II.a.5 Logistics and trade: export controls/sanctions, HS codes, customs documentation, freight modes, packing/marking, preservation.
II.a.6 Cost modeling: TCO, should-cost, life-cycle costing, currency considerations, escalation indices.
II.a.7 Data integrity: master data, material coding, unit of measure control, 3-way match, audit trails.
II.a.8 Compliance: anti-bribery/ethics, competition law, local content frameworks, delegation of authority.

II.b Soft Skills

II.b.1 Negotiation and stakeholder management across engineering, projects, drilling, operations, maintenance, finance, and legal.
II.b.2 Analytical rigor, numeracy, and structured problem solving under schedule pressure.
II.b.3 Communication, business writing, and meeting facilitation with suppliers and internal approvers.
II.b.4 Integrity, confidentiality, and conflict-of-interest awareness.

II.c Physical Demands

II.c.1 Primarily office-based; prolonged screen work and data handling.
II.c.2 Periodic travel to vendor shops, fabrication yards, warehouses, and supply bases; PPE required on industrial sites.
II.c.3 Ability to handle documentation packs and samples up to moderate weights; exposure to time-critical situations.

III. Typical Tools, Software, and Equipment

III.1 Enterprise resource planning (ERP) with purchasing and inventory modules (PR/PO, vendor master, GR/IR, approvals, audit logs).
III.2 E-sourcing/SRM platforms for RFx, e-auctions, supplier onboarding, and performance scoring.
III.3 Contract lifecycle management (CLM) for templates, clause libraries, and digital signatures.
III.4 Materials and maintenance systems (CMMS/EAM) for BOMs, critical spares, and reservation workflows.
III.5 Logistics and trade tools for shipment tracking, export control screening, and customs documentation.
III.6 Quality/inspection portals for ITP approvals, inspection calls, and release notes.
III.7 Data and BI tools for spend analytics, KPIs (OTD/OTIF, PO cycle time, PPV, savings), and dashboards.
III.8 Office productivity suites for reports, bid tabs, and presentations; secure document repositories.
III.9 Barcode/RFID and warehouse interfaces when linked to inventory receiving and cataloging.

IV. Work Environment

IV.1 Onshore office setting with frequent interfaces to operations, project sites, and supplier facilities.
IV.2 Schedule: standard business hours (5/2); overtime during turnarounds, shutdowns, rig moves, or critical path packages.
IV.3 Travel: local and international supplier visits, inspections, and expediting trips as needed.
IV.4 Rotational or site-embedded assignments possible for mega-projects, construction yards, or remote logistics bases.

V. Reporting Lines and Interfaces

V.1 Reports to: Procurement Lead/Procurement Manager within Supply Chain/Contracts & Procurement.
V.2 Internal interfaces: category management, contracts, logistics/materials, QA/QC, HSE, finance, legal, engineering, projects, drilling/completions, operations, maintenance, warehousing.
V.3 External interfaces: suppliers/vendors, inspection agencies, freight forwarders, customs brokers, certification bodies, and insurance underwriters.

V.a Deliverables & Interfaces

V.a.1 Deliverables: RFx packs, bid tabs, award recommendations, POs/change orders, expediting status, supplier performance reports, savings trackers, and close-out dossiers.
V.a.2 Hand-offs: release POs and documentation to logistics/warehousing for receiving; provide financial documents to accounts payable; share QA/QC and inspection releases with operations/projects.

VI. Career Ladder

VI.1 Next roles: Senior Procurement Officer/Buyer ? Lead Buyer/Sourcing Specialist ? Procurement Supervisor ? Procurement Manager ? Category Manager/Supply Chain Manager ? Head of Supply Chain.
VI.2 Requirements to advance: consistent KPI delivery (savings, OTD/OTIF, PO cycle time), proven negotiation outcomes, cross-category exposure, supplier performance improvements, and clean audits.
VI.3 Certifications and training: procurement certifications (e.g., CIPS levels), trade compliance/export control training, contract law fundamentals, and HSSE/quality standards.
VI.4 Exposure milestones: leadership of complex RFx for long-lead/engineered items, frame agreements, and high-impact turnaround/shutdown sourcing packages.

VI.a Progression Trigger

Typically promoted after 24–36 months with successful delivery across at least 10–15 sourcing events, demonstrable savings, on-time delivery improvement, and completion of mid-level procurement certification.

Toolchain Snapshot

ERP/Procure-to-Pay: PR/PO management, approvals, GR/IR, vendor master.
E-sourcing/SRM: RFx, e-auction, supplier onboarding, scorecards.
CLM: contract templates, clause control, e-signature.
CMMS/EAM: materials catalog, BOMs, critical spares linkage.
Logistics/Trade: shipment tracking, export control screening, customs docs.
QA/Inspection: ITP workflow, IRNs, MTR/MTC management.
BI/Analytics: spend cube, KPI dashboards (PPV, OTD/OTIF, PO cycle time, savings).

Notes

For open roles, search jobs on Rigzone.