Role of Negotiation and Contract in Outsourcing Decision in Oil and Gas Industry: A Case Study of Shell

This study focuses on the role of negotiation and contract in outsourcing decision in correlation to commercial growth and specific spotlight on the environmental aspects related to oil and gas industry. It aims to inspect the role of negotiation and contract in outsourcing decision in oil and gas industry globally.

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ROLE OF NEGOTIATION AND CONTRACT IN OUTSOURCING DECISION IN OIL AND
GAS INDUSTRY: A CASA STUDY OF SHELLS
By (Name)
The Name of the Class (Course)
Professor (Tutor)
The Name of the School (University)
The City and State where it is located
The Date

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TABLE OF CONTENTS
1.1 Background of thw study…………………………………………………………4
1.2 Statement of the problem…………………………………………………………4
1.4 Aims of the study………………………………………………………………...5
1.5 Objectives of the study……………………………………………………………5
1.6 Research questions………………………………………………………………..6
1.7 Rationale of the study…………………………………………………………….6
CHAPTER TWO: LITERATURE REVIEW……………………………………….6
2.1Literature Review…………………………………………………………………...6
CHAPTER THREE: METHODOLOGY……………………………………………7
3.1 Philosophical Solution……………………………………………………………..7
3.2 Research Design…………………………………………………………………...7
3.3 Research Strategy…………………………………………………………………..8
3.4 Data Collection and Procedures……………………………………………………8
3.5 Qualitative and Quantitative Data Collection………………………………………8
3.6 Timetable……………………………………………………………………………9
REFERENCES………………………………………………………………………..15

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1. INTRODUCTION
1.1 Background of the study
The research proposal will be focusing on the diverse and significant aspects in the role
of negotiation and indenture in outsourcing decision in lubricant and gas manufacturing. The oil
and gas sector have been facing juridical actions in the recent years which need to be workout for
different existing company in the industry and framework recounted. The overall study will be
focusing on the role of negotiation and contract in outsourcing decision in correlation to
commercial growth and specific spotlight on the environmental aspects related to oil and gas
industry.
1.2 Problem of the study
This study will aim at understanding the role of negotiation and contract in outsourcing
decision in the petroleum industry. However, oil and gas manufacturing industry has conveyed
several debates as producers and investors have both adverse and optimistic ideas concerning
productiveness. Also, the importance of negotiation and outsourcing decision is expected to
escalate because of the astringent ways of resolving challenges associated with the industry in
the current era.
1.3 Rationale of the study
The study will be authoritative has it helps in the generation of new contact and filings of
gaps within the role of negotiation and contract in outsourcing decision in oil and gas industry. It
will enable the contribution towards the generation of new understanding which can be used by
oil and gas companies to tackle various problems in the market currently and in future.

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1.4 Aims of the study
The study will aims to inspecting role of negotiation and contract in outsourcing decision in oil
and gas industry globally.
1.5 Objectives of the study
i. To determine the negotiations and decision processes in the oil and gas industry.
ii. To make recommendations on how to resolve various aspects affecting the industry
and sub- industry.
1.6 Questions of the Research Study
The questions guiding this studt will be the following;
i. What are the negotiations process in the petroluem industry?
ii. How to resolve the various aspects affecting the oil and industry and its sub-sectors
in the current market trends.
1.7 Hypotheses
On the other hand, findings of this study will be the momentum to researchers’ with limited time
and adequate resources to engage in investigation of the role of negotiation and outsourcing
decision in the lubricant and gas manufacturing industry.

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2. LITERATURE REVIEW
The hypothesis and concepts which will be link to this study will recognize and help in
the understanding of the research project in the lubricant and gas manufacturing industry. In this
section various literature work will be analyzed to come up with a more creditable data on the
research topic of the study. According to Almeida et al. (2018, pp.288- 295) is that oil and gas
industry has been facing numerous and tremendously change globally in negotiation and contract
outsourcing. Creswell also stipulated that role of negotiation and contract in outsourcing decision
in oil and gas industry is accounted for a lion share of internationally.
2.1 Shell Company Negotiation Process
According to Umar (2015, p. 45) they are numerous steps that can be taken by both
Shell Company and government negotiate on how to carry out its oil and gas business. The phase
of negotiation include the selection of the type of contractal system to be used by the compnany,
government and Shell selects who to be in the negotiation team and determinatination of the
company objectives when entering into the business (Umar 2015, p. 45). Generally, the
negotiation contract has it own structure suc as the preamble, the main version and the
appendices as the intergral parts of the contract.
2.2 Outsourcing done by Shell Company
The type of outsourcing include operational, strategic and multisourcing. Shell has both
outsourced the both core-activities and supporting activities. According to Göhler, Ebro &
Howard (2018, pp. 239-259) Shell Company has outsourced mostly in supporting services such

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as HR services, oil well- producers, drilling equipment and potential engineering staffs. The
outsourced will enable the company to compete favorable with other oil and gas companies in
the industry. The engineering workforce outsourced help Shell to equip itself with appropriate
scientific methods of analyzing the products it offers in the industry.
2.3 Successful Outscouring Reasons of Shell
Shell Company has driven a comprehensive the communication channels during group
meeting as inforamtion is essential to the outsourced partners in the oil and gas industry
(Fakhru’l-Razi et al. 2017, p. 551). Shell has been looking forward to venture only with partners
who can be trusted in outsourcing process with has made the organization outsourcing processes
sucessful (Malone et al. 2013, p. 242). The successful reason of Shell outsourcing has beeen the
results of scope understanding of the market trends before bidding or negotiate with other
companies in the market.
2.4 Reasons for Shells Outsorcing have Failed
The challenges that Shell Company has in the outsourcing contracting process include the
hiring of a wrong contractor to carry out the outsourcing process and inflrxiable contract, setting
of unrealistic goals in the oil and gas industry (Jafarinejad 2017, p. 10). Shells has also been
faced by inadequate understanding of its expection in the market, lack of appropriate
management appraisal and poor project and management team in the orgnization (Jafarinejad
2017, p. 10).

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3. RESEARCH METHODOLOGY
According to Collins, Rozeff and Dhaliwal (2011, p 48) is that methodology is a
procedure that facilitates the analyzing of a specific research topic to provide a suitable outcome
on the study problem. It also helps in operational process for the academic to carry out a proper
and exact research in a given field. However, a complete method of research goals, scheme and
system will be tackled in this part. The methodology is divided into the following segment
Philosophical position, Research Design, Research Strategies, Primary Approach, Data Analysis
and Timetable.
3.1 Philosophical Approach
In the perspective of different authors, research approach can be categorized into
epistemology and ontology. Generally, fieldwork will be done by a researcher to find out an
issue in one approach known as epistemology whereas the metaphysic philosophy will not be
appendicle (Chima 2011, p. 6). The researcher determination will be significant to resolve the
problem in stipulations of the approaches research theory (Chima 2011, p. 6). Thus,
epistemology research approach will be about the role of negotiation and contract in outsourcing
decision in oil and gas industry.
3.2 Research Design
Research design of a scrupulous research topic assists in the determination of the work
structure of a specific topic Petraco et al. 2018, p. 134). It facilitates in the selection and
collection of information resources at some stage in analyzing a research report. In addition
research design can be grouped into three, Descriptive research design, Explanatory research
design and exploratory research design.

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3.3 Research Strategy
Research strategy can be defined as the pace of planning which gives direction to the
researcher efforts and thoughts which enable the research to be carried out be successful. The
systematically procedures and schedules will allow the quality results and in-depth detailed
report. The approach of the case study will be used as it requires minimum number of evidences
to a research topic. The gathering of information from a lesser sample aids to attain the required
outcomes which can present the population required in a study. However, the study will be
mainly focus on the role of negotiation and contract in outsourcing decision in the petroluem
industry (Haque et al. 2017, p. 450).The case study of Shell will be applied in the study for
strategic verification of the number of sample required in this study.
3.4 Primary Approach
The primary method of a proposal can be defined as the approach used in qualitative
research but not in quantitative research. The information collected will be investigated in order
to attain the problematic and difficulties of the study statement. Acording to Collins, Rozeff and
Dhaliwal (2011, p. 48) the methodologies are not put up to investigate the research delinquent
but to set the theory for the clarification of the research problem by the use of deductive steps
forward (Fakhru’l-Razi et al. 2017, p. 551). Deductive methods will give specific pertain to this
study in order to identify the correlation between the viability of the role of negotiation and
contract in outsourcing decision in oil and gas industry.
3.4 Data Collection and Sources
Data collection in a research progression that helps to highlight the vicinity which
comprised of data and essentials correlated to the research topic. Data collection shows a realistic

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understanding of a given research focus and consequently assists in gaining better details of the
subject to enhanced and homogeneous comportment way.
3.5 Qualitative and Quantitative Data Collection
Data procedures in this study will be either quantitative or qualitative. Qualitative
information is supportive to deal with descriptive data which gives detailed clarification to the
apprehensive theme (Ayub et al. 2013, pp. 82-90). Whereas, quantitative data explains
viewpoints of large no number of defendants in a more organized and laid-back manner and rises
the apprehension of viability also. In addition, the thoughts of correspondents is limited as a
result of few parameters list (Murphy et al. 2018, p.10).
3.6 Ethical Considerstions
The study main information will come from secondary data sources which will be
revealed. Nonetheless, as Collins, Rozeff and Dhaliwal (2011, p.37) explains that data sources
should be protected and be used for analysis of a study for the confidence of the sample taken.
Thus, the essential and main objective of this study will be to contemplate the ethical
considerations. The ethics will ensure that no harm has occurred to any person during research
activities.
3.7 Timetable
Primary
Activities
Time-scale Required Resources
Research title
search, preparation and
7 days Microsoft Word 2013 ,
World Cat, Google scholar

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planning.
Literature
Appraisal
7days Microsoft word 2013 ,
World Cat
Perform key
research and collection
of secondary
information
14 days Emailing techniques
Information study 7 days Microsoft word 2013
Proofreading 14 days Microsoft word 2013
Citation
Finalisation
5 days Microsoft word 2013

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Figure.1 (Cannizzaro & Weiner 2015, pp. 32- 57)
Gantt chart
Figure.2 (Khajeh-Hosseini, Greenwood and Sommerville 2010, p. 450)

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Oil and Gas Industry
Learning Contract Proposal
Student Name
Professor Name
Date
1. Learning objectives:
Objective: The impartial of my research will be to gain the knowledge on the role of negotiation
and outsourcing decisions in the petroluem industry. Also, the effect of long-term negotiation
period in the same manufacturing sector and, its effects to the investors and consumers globally.
2. Research Purpose
The reverberation of the study in the oil and gas industry aids in elucidation of the mechanism in
negotiation and decision making especially in the effected companies within the sector.
3. Subjects to be studied:
The following topics will be studied during this learning contract.
1. Legislation, regulation and policy in the oil and gas sector in USA
2. Legislation, guidelines and procedures inside oil and gas company globally
3. Different authorities contribution within the sector in various countries around the world
4. Work to be completed:

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A substantial body of documents relating to Shells Company systems will be retrieved
and read during this learning contract. The reading materials will oblige as the knowledge vile of
the proportional research and strategy models in the lubricant and gas industry. Finally, the study
will synthesize readings and situate the USA oil and gas industrial system in the transnational
context.
4. Personal Goals
i.To increase my understanding and proficiency in the oil and gas industry.
ii.To learn restriction whereas increasing my knowledge in petroluem mining process.
iii.To learn how to keep a consistent record of my work in the laboratories while cumulating
confidence in the laboratory setting work
iv. To acquire results from the authorization publications, whether as a paper or poster with the
option of presenting the paper or publication at a conference
Extra Skills
Am able to successfully complete a range of research-like tasks, including evaluation,
with a significant degree of autonomy in a few moments. In addition, I can communicate
perfectly and confidently in a range of formats and at a high standard in regard to
appropriateness for graduate-level employment and undergraduate.
Leadership Qualities and Skills

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However, can work professionally in a team-based organization as a leader. The
leadership qualities and skills include appropriateness, conflict management and meeting various
obligations set by the organization.
Professionalism and experience
Professionally I am flexible and autonomously. Thus, as applied to the identification and
definition of a range of composite challenges rounding knowledge and the methods of conflict
solving to get credible solution. Am gifted in showing of autonomy insight to evaluate personal
weaknesses and strengths. Hence, have develop professional characters and skills required for
post-graduate-level employment.
Research questions include:
. i. What are the negotiations process in the oil and gas industry?
ii. How to resolve the various aspects affecting the oil and industry and its sub-sectors?
in the current market trends.
5. Strategies to get resources:
Numerous sources of materials will be retrieved:
I. Google Scholar Onliness journals as sources of references
II. Edmonton and Oxford Public Library
III. Personal books
IV. Internet documents specifically on oil and gas industry
6. Points of view to be considered in the research:

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I will be considering innumerable traits of oil and gas industry in the follwing area;
I. Current provisions of oil and gas legislations
II. International instances of oil and gas negotiation processes
III. Statistical research relating to oil and industry model
7. The role of the faculty affiliate
The facility member has been an instrumental in the progress of this research methods
proposal. I am thankful for his assistance the formulation the overall framework for this study.
He has certified that an inclusive and interdisciplinary study in oil and gas is undertaken it’s the
appropriate way. The focus on worldwide illustrations is a critical and valuable change grounded
on the guidance he offered to narrow the range of the study. In addition, he has endorsed the
inclusion of a several international examples for the insurance of fairness and neutrality
throughout the study period. However, the consideration to assortment of policy replicas of
negotiation will be trailed on well.
8. Timelines for the completion of learning contract
March 1, 2018 - Contract Period commence and analysis of the resources as well
March 5, 2018 to April 5, 2018 – Conclusion and looking for of Instructor’s approval
April 5, 2018 to May 4, 2018 – Assignment 1 completed
May 6, 2018to June 4, 2018 – Assignment 2 reading completion
June 8, 2018 to July 8, 2002 – Assignment 2 revision Completion
July 6, 2018 to August 1, 2018 Finalisation of the contract

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References
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containing residues of petroleum industry catalysts as recoverable pH-sensitive sorbents for
aqueous pesticides. Journal of hazardous materials, 346, 285-295.
Ayub, A., Razzaq, A., Aslam, M.S. and Iftekhar, H., (2013). Gender effects on entrepreneurial
orientation and value innovation: evidence from Pakistan. European Journal of Business and
Social Sciences, 2(1), pp. 82-90.
Cannizzaro, A. P., & Weiner, R. J. (2015). Multinational investment and voluntary disclosure:
Project-level evidence from the petroleum industry. Accounting, Organizations and Society, 42,
32-47
Chima, C.M., (2011). Supply-chain management issues in the oil and gas industry. Journal of
Business & Economics Research (JBER), 5(6).pp. 246-274
Collins, D.W., Rozeff, M.S. and Dhaliwal, D.S., (2011). The economic determinants of the
market reaction to proposed mandatory accounting changes in the oil and gas industry: A cross-
sectional analysis. Journal of Accounting and Economics, 3(1), pp. 37-71.
Fakhru’l-Razi, A., Pendashteh, A., Abdullah, L.C., Biak, D.R.A., Madaeni, S.S. and Abidin,
Z.Z., (2017). Review of technologies for oil and gas produced water treatment. Journal of
hazardous materials, 170(2-3), pp. 530-551.

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Göhler, S. M., Ebro, M., & Howard, T. J. (2018). Mechanisms and coherences of robust design
methodology: a robust design process proposal. Total Quality Management & Business
Excellence, 29(3-4), pp. 239-259.
Haque, J., Ansari, K. R., Srivastava, V., Quraishi, M. A., & Obot, I. B. (2017). Pyrimidine
derivatives as novel acidizing corrosion inhibitors for N80 steel useful for petroleum industry: A
combined experimental and theoretical approach. Journal of Industrial and Engineering
Chemistry, 49, pp. 176-188.
Jafarinejad, S. (2017). Recent developments in the application of sequencing batch reactor (SBR)
technology for the petroleum industry wastewater treatment. Chemistry International, 3(3), pp.
241-250.
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implementation of project control systems in the petroleum and chemical industry. International
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study of migrating an enterprise it system to iaas. In Cloud Computing (CLOUD), 2010 IEEE
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