About the project: Client was grappling with multiple challenges such as compressed margins due to cost inflation, long lead times, lower production rates and other challenges related to sub-optimal technologies particularly in upstream and downstream processes.
The project required the team to develop market intelligence reports and procurement strategies for capital equipment such as turbines, compressors, production pumps, well completion equipment etc. across major critical areas including rigs, refineries and power plants. Client’s objective was to achieve cost savings, minimize downtime due to non-availability of equipment, lower inventory through local sourcing, lead time reduction and deployment of newer technologies. Reports were prepared using exhaustive research, econometric modeling and subject matter expert interviews. The team reviewed $6-8 billion of client’s annual capital expenditure in multiple categories to provide tailor-made intelligence to the client, based on which hundreds of recommendations were made, with quantified benefits resulting in up to 20% of savings for the client.
About the client: Client is the state owned oil and natural gas company of the Kingdom of Saudi Arabia. Headquartered in Dahran in Eastern Province of Saudi Arabia, their operations span the Kingdom, with production and distribution facilities linking all market areas. It is also the world’s largest integrated energy enterprise, employing more than 65,000 people.