Late delivery of equipment - the case study of Korea national oil corporation Vietnam office

Abstract

Korea National Oil Corporation is production sharing contract with Petro Vietnam. Its activities take place in exploration, development, and production of oil & gas in Block 11-2, approximately 320 kilometers offshore Vietnam. Procurement of equipment is considered one of the most importance works of the company such as a factor determinant of revenues, expenditure costs. To build and maintain a significant effect to organization, the procurement department needs to know that problems are affecting its business. When interviewing procurement manager, the writer realizes that procurement department is facing with lots of problems including late delivery of equipment, poor quality of equipment, wrong item. Among many issues, late delivery of equipment will create significant impact to the project objective, specifically for the project in the remote area such as offshore where access for transportation and delivery is geographically limited.