Karachaganak Petroleum Operating - Case Study Example

The agreement was signed for a period of 40 years. The key business area with respect to KPO B.V., Kazakhstan is it Information Technology equipment. The company is strong in its IT equipment which it uses to run its daily operations. The unit holds around 1.2 billion tones of oil and condensate and also 1.35 trillion cubic meters of gas. The major advantage with the plant is that there is a good amount of income being generated to both the national and local economies. Additionally, the plant is also providing long-term employment to almost 80% people of Kazakhstan.

The field covers an area of almost 280 square kilometers. The Mission Statement of the Procurement Department at KPO B.V. is - to provide cost effective and efficient service to all Company User groups for the procurement of goods and services. In providing this service the Department maximizes the practical use of commercial competitions to achieve the best overall economic solution consistent with the User Departments requirements.The structure of the Procurement Department at KPO B.V. is as follows:-Vendor Development and Qualification (VNDQ) - The main objective for the existence of this department is to handle all sorts of issues related to the qualification of vendors and contractors whom it feels are potential for the Approved Vendors List and at the same time contribute in developing the local supply sources.

-Procurement - The major responsibility of the Procurement department is to manage the activities of procurement that are associated with the field operations. The department is also needed to supervise the wide range of procurement right from goods to the corporate services. -Contracts - Contracts planning, audit, supervision and all sorts of coordination and administration activities of the major contracts are taken care by this department.-Planning & Reports - This department takes care of all the planning activities like the budget planning, cost control, the formulation of the Standard Term & Conditions of Contract, business methods and systems and the formulation of Departmental procedures.

The main focus of the Vendor Development with respect to the operations of KPO B.V. is to make the local companies involve in the provision of the required goods and services of the company. The requirement may be related to all the departments like Production and Maintenance, Engineering and Projects, Infrastructure and Services, Well Operations in which the company wishes to develop local supplier capability for a long-term relationship.Supply Chain Management - An Overview The supply chain can be described as the network, covering the various stages in the provision of products or services to customers.

It includes not only manufacturers and suppliers, but also transporters, warehouses, distributors, retailers, etc.