Strategic Context of Upstream Logistics
- Duration in hours: 6h
Outline:
Upstream Logistics plays a critical role throughout the Oil and Gas Exploration and Production value chain by ensuring that people, equipment, materials and services are available where and when operations require them. Its scope evolves continuously across the field life cycle, from exploration and appraisal campaigns to development projects, drilling operations, production, maintenance and finally decommissioning. Because upstream activities are often performed in remote, offshore or technically demanding environments, logistics must coordinate complex international supply chains while interfacing closely with Geosciences, Drilling, Projects, Production, Maintenance, Procurement, HSE and Finance.
The strategic purpose of Upstream Logistics is therefore not limited to transporting cargo or personnel. It is to secure operational continuity while controlling risk and cost. Logistics must prevent supply-chain failures from generating drilling delays, production losses or Non-Productive Time by anticipating requirements, managing critical materials and spare parts, maintaining reliable supply bases, planning vessel and helicopter movements, tracking shipments and preparing contingency solutions. At the same time, logistics operates in activities that are particularly exposed to HSE risks, including marine and land transport, aviation, lifting, cargo handling and dangerous goods management. HSE compliance is consequently a fundamental objective: equipment must arrive on time and in good condition, without injury, environmental impact or regulatory deviation.
Cost optimization is another major strategic objective, particularly during the production phase where logistics represents a significant component of operating expenditure. The objective is not simply to select the cheapest solution, but to achieve the best balance between service level, operational risk and total logistics cost through consolidation, transport planning, fleet utilization, inventory optimization and appropriate contracting strategies. Logistics is also responsible for protecting asset integrity throughout transport, handling and storage, acting as the temporary custodian of equipment until it is delivered to the final user. Ultimately, effective Upstream Logistics requires every operational decision to balance four interdependent priorities: Production Continuity, Cost Optimization, HSE Compliance and Asset Integrity. These objectives position Logistics as a strategic operational function directly contributing to the safety, reliability and economic performance of Exploration and Production activities.
Audience:
This course is primarily designed for Personnel involved in Logistic operations.
It may also be necessary to technical engineers who need to understand Logistic and its role within the Entity. as they work in interface with Logistics.
Finally, any actor of the Oil and Gas Supply Chain will also benefit from this training by understanding the interactions within the Chain: Buyers, Contract engineers, Expeditors, Transit Agents...
Deliverables:
By the end of the course, participants will understand the strategic role of Logistics across the Upstream Oil & Gas value chain and its interfaces with Exploration, Drilling, Projects, Production, Maintenance and Decommissioning.
They will be able to identify the main logistics challenges associated with each phase of the field life cycle and understand how logistics decisions impact operational continuity, cost, HSE performance and asset integrity.
Participants will also be able to apply the four key strategic objectives of Upstream Logistics — Production Continuity, Cost Optimization, HSE Compliance and Asset Integrity — as a framework for operational decision-making.
Certificate:
The training will be completed by an online test on EvalBox. Upon completion of the training, including the test, participants will be awarded a Certificate of Attendance issued by Adinergy.
- Supply Chain & Logistics:
- The Supply Chain in the Manufacturing Industry: Definition and example.
- The Supply Chain in the Upstream Industry: Definition and example.
- Evolution and Innovations in the Supply Chain. - Logistics and its Interfaces:
- Upstream Value Chain Overview: Exploration => Drilling => Development => Production => Restitution
- Group exercise on Logistics Support by phase and to the main stakeholders: For each phase Participants sill identify the Role/mission of Logistics, the Services and Means provided, the constraints & Challenges and finally propose ideas to improve/Optimize.
- Logistics Eco-System: Supply Base – Offshore environment – Marine fleet – Aviation – Land Transportation. - Upstream Logistics Strategic Objectives and how to reach them:
- HSE compliance
- Production continuity (zero rupture due to Logistics)
- Cost optimization (OPEX control)
- Asset integrity.
