Logistics and Operations in Oil & Gas: A case study of Saudi Aramco and ADNOC

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Logistics and Operations in Oil & Gas
A case study of Saudi Aramco and ADNOC

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Table of Contents
Introduction.................................................................................................................................................................................... 3
Identification of challenges.................................................................................................................................................. 3
Services of the competitors.................................................................................................................................................. 4
Economic and environmental conditions of the primary competitor.....................................................................6
Human behavioural issues.................................................................................................................................................... 8
Recommendations................................................................................................................................................................... 8
Conclusion...................................................................................................................................................................................... 9
References.................................................................................................................................................................................... 10

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Introduction
Saudi Aramco has been a company offering the services of oil and gas in the country and
internationally. It has been observed that the company has been trying to enter into the market of
India, which is a tedious task if individuals within the firm failed to identify the primary aspects
of challenges that will be faced by the company (Dummett, Said and Farrell 2017). This paper
provided information about the challenges that can be faced by the organisation in the Indian
market concerning competitive advantage. Identification of such aspects is critical because it
would provide the opportunity to have economic growth and the company would attain the
benefit in the new market by providing better and effective products.
Identification of challenges
Time and again the company has gained momentum in ensuring massive energy supply such that
the organisation in ends up attaining higher competitive advantage. It has been thriving in the
Saudi Arabia market, identifying the challenges it can face (Ramady and Mahdi 2017). This
section will similarly identify challenges that the company will be facing concerning the
international market, specifically in Indian downstream petroleum:
1. To have increased visibility in complicated operations concerning cost and to have optimised
performance of workforce within the organisation.
The operation of oil and gas company, Saudi Aramco, has been done in some of the most
politically and physically challenging environment in Saudi Arabia. The factors that can be
added to have announced difficulties include fluctuating demand, unstable market, high
competition, regulatory regimes, and complex compliance. Certain projects might also involve
more than one third-party suppliers that can also create problems in the Indian market. Such
factors can promote the problems of having a challengeable environment to control operations
and cost in the country. Furthermore, the workforce can also create problems due to wearing
background and skill levels, even education. Such factors provide information about the
complexity of operation in the country. Since the Indian market has many companies providing
effective services to the customers, the company Saudi Aramco can have problems related to

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gaining loyal customers and the provision of affordable prices. Furthermore, the environment of
the Indian industry is also different than Saudi Arabia that can create a problem for the company
concerning the production of oil and gas in India (Albejaidi 2010).
2. Development of high performing culture among the employees managing operations
This factory certainly the most important that can lead the company to the downfall. This is why
employee training, retention, and onboarding has become a critical issue in the company
concerning the international market. Since India is counted among the emerging markets, along
with China, it has increased the competitive companies to also find opportunity in India. At this
time, the management of employees from different cultural backgrounds is critical for the
company. It means that the primary focus is to be given to the employee performance and
creation of an effective culture within the firm after penetration in the Indian market (Al-Tammar
et al. 2014).
3. The challenge of execution excellence and improved asset management
Other than the employees, the most important factor in the country concerning operation
management includes equipment. The quality of equipment in both the countries that is Saudi
Arabia and India are critically different which can cause problems for the country in different
and payment. Therefore the demand for effective equipment including well-designed managed
and maintained assets is critical for the management of operations in the country. Therefore the
procedure of maintenance, process, inspection, operation, management concepts, and design a
critical for the organisation in the country. Even though the two countries may have a difference
in operations, the challenges to maintaining the same level of integrity and operational
management in India as the company has been able to do in Saudi Arabia (Kokal and Al-Kaabi
2010).
4. The challenge of corporate social responsibility
In this section, various factors are involved such as the stakeholder group’s safety concerns and
health. The challenges can be observed in the area of human rights, stakeholder rights,
environment protection, transparency and corporate issues, and employee rights. Such aspects
can be observed in Indian market concerning operations of Saudi Aramco (Ramady 2010).