If the oil and gas industry is to become more efficient as well as effective the synergies that exist in the business as a whole have to be exploited more successfully. To achieve this, there is a need for a radical change in the roles and responsibilities of oil companies and contractors.

This paper proposes a new approach to gaining greater benefit from exploiting supply management synergies. The approach is based upon the concepts of integrated contracted services and outsourcing of non-core activities. It involves the creation of groups of oil companies to obtain goods and services from the market place through common supply management organisations.

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