Job description for a procurement officer in oil and gas?

Procurement Officer (Oil & Gas) — Job Description

Mid-level supply chain role accountable for end-to-end sourcing, contracting, and expediting of materials, equipment, and services that meet technical, schedule, HSE, and cost objectives across drilling, projects, production, subsea, and maintenance operations.

I. Core Responsibilities

1. Category planning: Build and maintain procurement plans aligned to drilling, projects, shutdowns/turnarounds, and production operations; segment spend (A/B/C) and identify consolidation opportunities.
2. Requisition intake: Validate purchase requisitions for scope completeness, budget coding, technical specifications, QA/QC needs, and required delivery dates; clarify with requestors.
3. RFx execution: Develop and issue RFI/RFQ/RFP packages, including SoW, datasheets, inspection/testing requirements, HSE terms, and commercial conditions; manage bidder lists and Q&A.
4. Bid evaluation: Lead Technical Bid Evaluation (with engineering/QA) and Commercial Bid Evaluation; apply weighted scoring, lifecycle cost, and delivery risk criteria; document award recommendation.
5. Negotiation & award: Negotiate pricing, Incoterms, delivery, warranties, LDs, service levels, and payment terms; draft and place POs, call-offs, and framework agreements in line with delegation of authority.
6. Expediting & vendor management: Monitor production milestones, FAT dates, documentation, and shipping; resolve slippage; drive On-Time-In-Full (OTIF) performance and corrective actions.
7. Logistics coordination: Align packaging/marking, export/import, customs clearance, and transport to rig/site/base; ensure HSSE compliance and proper preservation/storage requirements.
8. Quality & inspection: Coordinate ITP, inspection release notes, material certificates, and conformity to standards; manage non-conformances, replacements, and warranty claims.
9. Compliance & governance: Enforce procurement policy, competitive bidding, ABAC/sanctions screening, local content, and audit readiness; maintain full source-to-pay traceability.
10. Supplier onboarding & performance: Pre-qualify suppliers, verify capacity and HSE statistics, monitor KPIs (OTD, quality defects, NCR rate, cost variance), and run performance reviews.
11. Inventory & MRP support: Review MRP proposals, safety stocks, and reorder points for critical spares and consumables; reduce stockouts and obsolete inventory.
12. Cost control & reporting: Track savings (hard/soft), cost avoidance, and total cost of ownership; report PR-to-PO cycle time, aged PRs/POs, and accruals to stakeholders.
13. Change management: Process variations, change orders, schedule changes, and scope growth with appropriate approvals and contract amendments.
14. Documentation handover: Ensure vendor data books, manuals, certificates, and as-built documentation are delivered and archived for operations and maintenance.

II. Required Skills and Physical Demands

II.1 Technical Skills

1. Oilfield categories: Knowledge of tubulars, OCTG, wellhead/X-mas tree, drilling services, subsea hardware, rotating equipment, valves, E&I, MRO, chemicals, logistics, inspection, and fabrication.
2. Specs & standards: Ability to interpret datasheets, ITPs, welding/NDT requirements, and applicable industry standards; align QA/QC deliverables with PO clauses.
3. Contracting: Experience with POs, MSAs, LTAs, frame agreements, unit-rate and lump-sum service contracts; application of LDs, bonds, and warranties.
4. Commercial acumen: Cost breakdown analysis, should-cost models, lifecycle cost, price indexing/escalation, FX considerations, and risk allocation.
5. Incoterms & trade: Incoterms 2020 application, export controls, import duties, and documentation (commercial invoice, packing list, certificates).
6. MRP/Inventory: Safety stock, reorder point, EOQ, lead time variability, and spares criticality classifications.
7. Compliance: Procurement policy, competitive bidding thresholds, sanctions/ABAC screening, HSSE requirements, and local content rules.
8. Data & KPIs: Spend analytics, supplier scorecards, procurement dashboards, and P2P cycle metrics.

II.2 Soft Skills

1. Negotiation & influencing: Structured bargaining, win–win outcomes, and escalation management.
2. Stakeholder management: Partnering with drilling, projects, operations, QA/QC, HSE, logistics, finance, and legal.
3. Organization & urgency: Prioritize conflicting demands, meet outage windows and rig schedules, and manage multiple RFx streams.
4. Analytical rigor: Evidence-based recommendations, scenario analysis, and risk-adjusted decisions.
5. Communication: Clear, concise RFx documentation, evaluation reports, and supplier correspondence.

II.3 Physical Demands

1. Office-based: Prolonged screen time and desk work.
2. Field exposure: Occasional visits to yards, warehouses, fabrication shops, and onshore bases; PPE usage; walking/standing during inspections.
3. Travel: Domestic/regional supplier/site visits and expediting trips as required.

III. Procurement Calculations Used (Formulas)

1. Economic Order Quantity (EOQ): Minimize total ordering + holding costs for regular-use items

   \( \displaystyle EOQ = \sqrt{\frac{2DS}{H}} \)

   D: annual demand; S: ordering cost per order; H: annual holding cost per unit.

2. Reorder Point (ROP) with safety stock: Set when to reorder considering lead time variability

   \( \displaystyle ROP = d \cdot L + z \cdot \sigma_L \)

   d: average demand per period; L: lead time (periods); z: service level factor; \( \sigma_L \): demand std. dev. during lead time.

3. Total Cost of Ownership (TCO): Purchase + operation + maintenance + logistics + disposal

   \( \displaystyle TCO = P + F + O + M + L + W + E \)

   P: price; F: freight/duties; O: ordering/admin; M: maintenance/spares; L: logistics/handling; W: warranty risk; E: end-of-life.

4. Supplier score (weighted): Multi-criteria bid evaluation

   \( \displaystyle Score = \sum_{i=1}^{n} w_i \cdot s_i \quad \text{with} \quad \sum w_i = 1 \)

   w: criterion weight (price, delivery, quality, HSE, compliance); s: normalized supplier score.

IV. Typical Tools, Software, and Equipment

1. ERP/MM & P2P suites: Purchase requisition, MRP, PO placement, goods receipt, and invoicing modules.
2. eSourcing & eAuction platforms: RFx creation, sealed bids, and reverse auctions.
3. SRM & supplier risk tools: Onboarding, performance scorecards, compliance, and risk monitoring.
4. Contract authoring & repository: Clause libraries, version control, and approvals.
5. Spend analytics & BI: Data cleansing, categorization, dashboards, and Pareto analysis.
6. Document control: Secure exchange of technical specs, ITPs, vendor data books, and certifications.
7. CMMS/MRO interfaces: Integration to maintenance plans and spares lists.
8. Logistics/tracking: Shipment visibility, milestones, and customs/brokerage documentation.
9. Office productivity: Spreadsheets for cost models, presentations for sourcing recommendations, and databases for catalogs.

V. Work Environment

1. Location: Primarily office-based (onshore). Occasional visits to supplier facilities, fabrication yards, warehouses, and shore bases.
2. Schedule: Standard business hours with flexibility to align with rig schedules, international time zones, and tender deadlines.
3. Travel: Estimated 10–25% based on portfolio and project phase; ad-hoc expediting trips.
4. Offshore exposure: Rare; potential pre-mobilization audits at quayside or vessel visits when required (estimated).
5. HSE culture: Adherence to HSSE expectations during supplier audits and site visits; mandatory PPE and inductions.

VI. Reporting Lines and Cross-Functional Interfaces

1. Reports to: Procurement Manager or Supply Chain Lead; dotted-line to Category Manager for strategic sourcing.
2. Key interfaces:
   1. Drilling & wells: Materials/services for rigs, well services, and tubulars.
   2. Projects/engineering: Long-lead items, EPC buyouts, documentation, and interface management.
   3. Operations/maintenance: MRO spares, repairs, service contracts, and turnaround materials.
   4. QA/QC & HSE: ITPs, inspections, certifications, and contractor HSE conformance.
   5. Logistics/materials: Shipment planning, customs clearance, warehousing, and preservation.
   6. Finance & legal: Budget, approvals, payment terms, and contractual risk mitigation.
3. Vendors/contractors: OEMs, service providers, local agents, freight forwarders, and repair shops.

VII. Career Ladder

1. Next roles: Senior Procurement Officer ? Category Specialist ? Category Manager or Contracting Lead ? Procurement Manager ? Supply Chain Manager/Head of Supply Chain.
2. What’s needed to move up:
   1. Delivery: Proven savings, OTD improvement, cycle-time reduction, and audit-ready files across multiple categories.
   2. Complexity: Lead high-value RFx, long-lead equipment, and multi-year frameworks; manage cross-functional sourcing squads.
   3. Expertise: Mastery of contracting strategies, risk allocation, and supplier performance management.
   4. Credentials: Recognized procurement/contract management certification and advanced commercial training.

VIII. Deliverables & Interfaces

1. Deliverables: Sourcing strategy notes, RFx packs, TBE/CBE reports with recommendation, fully executed PO/contract, expediting status logs, inspection release notes, shipping documents, and close-out reports.
2. Hand-offs:
   1. To logistics/materials: Finalized shipping instructions, packing lists, and delivery schedules.
   2. To QA/QC & engineering: Approved ITPs, vendor data books, certificates, and NCR resolutions.
   3. To operations/maintenance: Manuals, warranty terms, spare parts lists, and service contact points.
   4. To finance: PO files, milestone evidence, and accruals for GR/IR alignment.

IX. Toolchain Snapshot

1. ERP/P2P: Requisition-to-pay processing with MM/MRP integration.
2. eSourcing/eAuction: RFx workflows, sealed bids, and reverse auctions.
3. SRM & risk: Supplier onboarding, compliance, and performance scoring.
4. Contract management: Template libraries, clause control, and digital signatures.
5. Analytics/BI: Spend cubes, KPI dashboards, and savings tracking.
6. Document control: Controlled transmittals for technical/quality documentation.
7. Logistics visibility: Milestone tracking and customs documentation management.

X. Progression Trigger

1. Typical promotion window: After 18–36 months with consistent KPI delivery and successful closure of 8–12 significant sourcing events (including at least 3 long-lead or critical-service awards).
2. Prerequisites: Positive stakeholder feedback, zero major audit findings, demonstrable savings and risk mitigation, and attainment of a recognized procurement/contract-management certification.