World oil price fell sharply at the beginning of 2015, how will oil and gas companies meet the challenges? The organizing committee of the China Sourcing Summit On Petroleum & Chemical Equipment(CSSOPE 2015) has recently learned from some purchasing executives of the international petroleum and chemical companies that they would adjust their sourcing strategies and plans in 2015 due to oil price continuously downward ,many buyers become very cautious in order to control cost and risk. Hence, the value-added high-end equipments would become mainstream products so that they can create profits and value from procurement.
ConocoPhillips Dealing with Challenges though Supply Chain Management
The strong supply chain is a big support to the huge volume of business in ConocoPhillips. Enhancing the collaboration with suppliers is to increase value. ConocoPhillips China Supply Chain leader expressed their willingness to participate the China Sourcing Summit On Petroleum & Chemical Equipment(CSSOPE 2015) to communicate with oil and gas players on the supply chain management and share new ideas with more suppliers and peers.
BP to Optimize Supply Chain Excellence in Procurement Operations
BP standardizes and simplifies the end-to-end process in a wider range with the global delivery model. As an industry leader, BP continues to vigorously develop and consolidate relations with suppliers to improve the quality of products and services, to reduce operational costs and create a "greener" supply chain to enhance value. A senior purchasing manager of BP China said they are planning to meet more suppliers at CSSOPE 2015, reducing the time cost of visiting and investigating the suppliers one by one so that to improve the efficiency of screening suppliers. It would be also helpful to improve the procurement efficiency.
Shell to Purchase More Equipment from China
In recent years, with a substantial increase oil capital expenditure during the commodity boom, there is more pressure for shareholders that asking to cut spending. Shell said will use more equipment made in China to help its shale business in US which was in trouble last year. Shell has become another company who attempts to switch to lower-cost China manufacturing equipments. The procurement manager from Shell China said that Beijing team is willing to join CSSOPE 2015 again to communicate more with Chinese suppliers.
Aramco Wants to Expand the Outstanding Supplier in China
Saudi Aramco is the largest supplier of crude oil in China, provides the necessary energy support to the sustainable economic development. There are more than 150 excellent Chinese suppliers that obtain qualification from SAramco. They support Aramco projects around the world with equipments including drilling equipment, electrical, plumbing valves pumps etc. Aramco procurement manager said they want to seek more excellent suppliers on CSSOPE 2015, to share the procurement supply chain management with industry payers and introduce its supplier certification process to improve procurement efficiency. The Inspection Representative in Aramco Asia Shanghai confirms to speak at the summit.
HUSKY Wants to Meet China Quality Suppliers
Due to uncertainty environment of the Middle East and Russia, global markets including Asia and Europe are looking for diverse sources. Canada's vast oil reserves and reliability will make it favored. Husky is interested in "China Petroleum Equipment Buyer's Guide" and CSSOPE 2015.Its supply chain manager from global sourcing department said there will be a corresponding reduction in purchasing next year, but HUSKY plans to attend CSSOPE 2015 and meet more excellent quality Chinese suppliers.
Fluor Make Special Procurement Program to Select Vendors
With rich international procurement experience and a worldwide networking of suppliers, Fluor provides a guarantee for customers to obtain best value from capital investment. China Strategic Sourcing and Procurement Department of Fluor was established in 2006. As for now, the total purchasing amount exceeded 5billion US dollars, of which 2.7 billion dollars was collected from Chinese suppliers. China is a major supplier for Fluor in China projects, and is quickly becoming an emerging supply market that supports Fluor's global engineering and construction line. Fluor's Asia Pacific Purchasing Director confirmed to participate in CSSOPE 2015 to select suppliers and have pre-qualification at the summit.
Kvaerner Seeks high-end Marine Equipment Suppliers
Kvaerner is an international leader in the field of marine engineering and equipment industry. Kvaerner is a professional deepwater EPC (engineering, procurement and construction) contractor. The China procurement manager of Kvaerner said she has participated China Sourcing Summit On Petroleum & Chemical Equipment many times, again she wants to meet more qualified suppliers like Neway Valve."We are looking forward to meet more outstanding materials suppliers such as steel manufactures. Marine project are required for high-technical requirements to control the risks. Hence, we need to find quality equipment suppliers to ensure the safe operation of the global projects."
CNODC's Overseas Operations Affected by Oil Prices
With years of active participation in international competition and operations, CNODC has built a set of petroleum production chain from exploration and development, pipeline transportation to refining, go through the upstream, midstream, downstream in Central Asia - Russia, the Middle East, Africa, the Americas and Asia, five overseas oil and gas cooperation zone. CNODC Sales and Procurement Department director said its overseas business is subject to a great impact from oil price downward. Its procurement plan will be adjusted in 2015. China Sourcing Summit On Petroleum & Chemical Equipment is a very good platform that they hope to join again.
Myanmar's Opportunities and Procurement Strategies
A presentation on the topic of "Business opportunities in Myanmar for Chinese Equipment Suppliers and North Petro-Chem Corporation Strategic Procurement Plan with Supplier Certification Process" will presented by Mr. Lynn Myint, Vice President of North Petro-Chem Corporatio. Myanmar has over one hundred year of oil exploration experience. Oil and gas industry attracted the most foreign capital among industries. Myanmar federal Department of Energy, NPCC and MOGE Jointly signed a petroleum production contract on 16,June,2010. NPCC made investment on oil and gas exploration in block SC-F. North Petro-Chem Corporation (Myanmar) registered in Yangon, is a subsidiary of NPCC, coverage of oil and gas exploration.
Pakistan Oil and Gas Equipment Procurement
Pakistan Petroleum Exploration (Private) Limited (PEL),for the first time to participate in CSSOPE, on behalf of Pakistan, will share "International Joint Ventures Purchasing And Supply Chain Strategy Under The Period Of Low Oil Prices And Introduce Business Opportunities In Pakistan".
PEL is an active Privateoil exploration and production company who has the largest oil exploration area in Pakistan, operate 13 entities. China will invest 42 billion US dollars in Pakistan, focusing on the energy sector, the two sides signed 19 agreements and memoranda. It's expected that Pakistan will invest more than 20 billion US dollars in oil, gas and energy projects. Chinese manufacturers own a bright further in Pakistan.
Multi-countries to Bring More Opportunities for Suppliers
Myanmar, Pakistan, Malaysia, Venezuela, Mexico, Kuwait, India, Russia and Iran are the key countries that CSSOPE 2015 focuses on. The attendees could understand the opportunities in the blooming market overseas.
Overall, the domestic petroleum and chemical equipment market is very fierce competitive, international market is easier to gain with high margins that leads enterprise success. The 5th Conference and Exhibition - China Sourcing Summit On Petroleum & Chemical Equipment (CSSOPE 2015) is a B2B platform for Domestic and foreign buyers to improve the products and services quality, and for suppliers to develop more high-end users, get more orders, improve product export volumes and market shares. The event is organized by the Supplier Working Committee of China Petroleum and Chemical Industry Federation (CPCIF）and The Oriental Pro-Energy Consulting Organization (Topco) on 26-27 May, 2015 in Beijing.