Practical logistics and operation management challenges of Saudi Aramco & ADNOC join hands for petroleum retail in India

        Saudi Aramco is working efficiently and collectively expected to increase the exploration as well as the production by having contract with the Indian companies. Oil and gas industry is one of the most demanded industries for both domestic as well as commercial purposes. In order to evaluate oil and gas industry project, the present report includes consideration of downstream sector of Saudi Aramcoand Adnoc [1]. The downstream sector includes processing of oil and gas products. The downstream sector of the industry is directly related to the consumers and facilitates them with petroleum products. A wide range of facilities are involved in the downstream sector such as retail outlets, natural gas distribution companies, and petrochemical plant [3]. The main process involved in upstream as well as downstream oil and gas operations includes marketing, transporting, exploration, extraction and refining. The operation capacity of the Indian refinery is continually constrained and requires expansion in certain phases. The crude oil provided by Saudi Aramco and Adnoc is heavier, sourer and tightened to the product specifications that strictly increases environmental legislation [2].

        The analysis depends on the identification of challenges in practical logistics and operation management. In order to penetrate the Indian downstream petroleum market, Saudi Aramco and Adnoccan face four challenges as identified in the present report. The challenges includes business joint ventures, distribution activities of the oil products, crude oil supply mechanism, safety health and environmental security.

Business joint ventures of Saudi Aramco & ADNOC join hands for petroleum retail in India

        The downstream sector of Indian industry is facing serious challenges particularly due to lack of information knowledge management (IKM).  The downstream sector required alliance and joint forces between Oil and Gas sector and various industries.  In order to achieve the desired aim and the purposes the downstream sector requires targeted investment in the industry especially with the outside of host country. The risks should be shared with the Saudi Aramco and Adnoc and different commercial terms should be considered.  The highly skilled workforce is required to that can use state of art technologies in the industries [1].

Distribution activities of the oil products of Saudi Aramco & ADNOC join hands for petroleum retail in India

        In the downstream sector, trading and distribution are two major aspects.  The operation of Saudi Aramco can become futile without proper establishment of avenues.  The value chain requires proper development in order to ensure the distribution of the product and efficient trading.  Avenues are required to be designed in order to ensure the product services [3].  In case of Indian crude oil services the prices of products are unnecessarily increased and distribution centers are not highly enough assess the requirement of consumers.  The inbound marketing is lower as compared to the output marketing.  The fact is that Indian industry requires overwhelming strategies to steer the oil and gas products towards clients [2].

Crude oil supply mechanism of Saudi Aramco & ADNOC join hands for petroleum retail in India

        The petroleum retail in India is facing various challenges particularly associated with the supply mechanism of crude oil. The proper flow of accurate information induces impact on the performance of supply chain. The proper use of information technology is required to ensure the optimization of the process and to reduce the challenges in the supply chain. In the oil and gas industry the implementation of new technology include monitoring process and modelling of engineering assets [2]. The proper method and reliable transport system is required for improvement of the mechanism associated with the transfer and to reduce the cost of services. State of art Technology is developed by Qatar Petroleum in the GTL project [3]. Supply chain process is developing new technologies for instance computational web servers that provides high speed data access, higher visualization and sensible collaboration of users with the companies.The proper supply chain mechanism is required to reduce potential disadvantages and to improve the collaboration with the Saudi Aramcoand Adnoc. The managers of the company Saudi Aramco and Adnoc are required to handle the crude oil supply system [2].

Safety health and environmental security of Saudi Aramco & ADNOC join hands for petroleum retail in India

        The priority of companies is to ensure the safety of human environment. The implementation of the ISO 15926 by legislation department has forced the companies to comply it and ensure the proper services of crude oil supply. The hydraulic fracturing is a well-known technique that ensures the process of extracting the gas through proper ways [2]. The unconventional reservoir issues are considered in the broader operations at different stages of the values chains. The conceptual description of ISO 15926 is mainly related to the combination of automation devices and positions posed by the production facilities [4].

References of Saudi Aramco & ADNOC join hands for petroleum retail in India