Project procurement management: procurement strategy - the missing link between project and business strategies in the oil & gas industries

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The British University in Dubai (BUiD)
This Dissertation provides insights into improving aspects of Project Management in UAE. A research is conducted in order to assess the impact of Procurement Strategy on Business and Project Strategies with respect to management of Oil & Gas projects. UAE is rapidly developing and International as well as local companies are participation in hundreds of varied on-going projects. To elicit and maintain interest of majors, Procurement of projects should be towards achieving strategic objectives and improving relationships. The Aim of the research is to detect the link between Project and Business Strategies. Procurement Strategy is identified as the missing link and, as a Hypothesis to the Research, to solve project problems in meeting objectives. Research objectives are to assess influence of Procurement Strategy on Projects/Business Strategies, show how current Procurement Strategies are impediments in achieving project and strategic objectives and identify elements of Procurement Strategy that aim at achieving strategic objectives. The Literature reviewed on current knowledge of related issues suggested the inter-relation of Business to Project Strategies through Portfolio and Programs Strategies. The links to Procurement Strategy for outsourced projects in the Supply chain was explored extensively. Research Methodologies of Quantitative and Qualitative methods were adopted to test the Hypothesis and assess Objectives of the research. Questionnaire for investigating the strategic role of Project Procurement in Oil & Gas was developed. As a qualitative method, a Case Study for surveying four major projects in Refining industry within Oil & Gas was also developed. The case study involved surveying different parties of the projects to assess problems in projects Procurement. These methods generated valuable ideas in supporting the position of project Procurement in Oil & Gas industry projects towards achieving objectives. Data of the surveys responses were then presented in the both forms (Quantitative and Qualitative responses). The data was then analyzed with the findings from Literature to propose the recommended actions. Recommendations cover Linking Procurement to Business Strategy in Oil & Gas and proposing Procurement Strategies to overcome problems in Oil & Gas Projects. Conclusions have been finally derived and a subject of investigating Procurement Strategies on Project Performance was suggested for further research.
project management, procurement strategy, oil & gas projects, United Arab Emirates (UAE), project performance