Study Of Risk Analysis And Application On Material Procurement Of The EPC Contractor In Oil And Gas Project

The demand of oil and gas energy is increasing in China, and the “Going Out” strategy is intensively implemented in Chinese oil enterprises. Then it has become a new trend for domestic oil enterprises to participate in international oil and gas projects, with the mode of engineering-procurement-construction(EPC) contract. In oil and gas EPC projects, the material procurement amount accounts for more than 50% of the contract amount. Moreover, the material procurement is faced with various and changeable risks. So the study of material procurement risks in oil and gas EPC project is of great meaning, which can enhance the level of material procurement risk management and material procurement for Chinese oil and gas enterprises in international oil and gas projects.Firstly, the concept, characteristics, process and analysis method of risk identification, risk assessment and risk response in oil and gas EPC projects are defined this thesis. Secondly, material procurement risks in oil and gas EPC project are comprehensively identified, and the material procurement risk list is correspondingly built in this thesis. Combing with the theory of risk matrix method, this thesis then described the risk assessment process of material procurement in oil and gas EPC project, and divided the risk level of A, B, C and D in descending order. Lastly, with the background of Central Asian oil and gas pipeline D line project, the material procurement risks in this project are identified and assessed, and then appropriate responses to these risks according to the evaluation results are proposed this thesis.The results show that material procurement risks in oil and gas EPC project could be divided into two categories of external risk and internal risk. The former included natural risk, political risk, social risk, market risk, owner risk and supplier risk, the later includes decision risk, procurement plan risk, procurement order risk, transportation risk, inspect risk and inventory risk. It is also found in this thesis that Chinese oil enterprises are faced with larger external risk, comparing with internal risk in material procurement of international oil and gas EPC projects.