OTC ’16: Collaboration on oilfield procurement could save millions

HOUSTON -- Procurement services specialist Craig International has launched a new platform to help oil and gas companies off-load surplus stock worth billions of dollars and buy products and equipment they need at competitive prices.

Craig Collaboration connects companies looking to sell stock with those looking to buy. Oil and gas companies around the world have billions of pounds of surplus stock, much of it sitting in costly storage and Craig Collaboration will allow them to realize value from this.

A radical shift in procurement in the industry, Craig Collaboration represents a major investment by Craig International in an immediate, collaborative solution towards increasing efficiency. It is already gathering momentum with several major E&P companies expected to start using it following Tuesday's launch.

Steve McHardy, joint managing director of Craig International, said: “We have developed a platform which the whole industry can use to buy and sell stock. Using our bespoke electronic tools, our network of buyers and our global experience, Craig Collaboration will, at no cost to industry, ensure that their products are offered to buyers looking to purchase them.”

“Our research found that two E&P companies had, between them, almost half a billion dollars’ worth of surplus stock. Multiply that by the number of companies operating in the Gulf of Mexico and that’s a considerable amount of products and equipment lying around not making any money and incurring warehousing costs,” McHardy added.

Craig Collaboration is accessed through a portal and powered by Craig International’s bespoke SmartBuyer software.

Craig Collaboration will also provide an analysis of the interest expressed on their surplus equipment, allowing clients to make an informed decision on disposal or not.

Craig International has this year secured $60 million in new contracts as a result of the efficiencies delivered by their ecommerce initiatives.

With an increasing marketshare in the Gulf of Mexico, Craig International is in a unique position to observe trends and offer solutions to dramatically reducing costs when it comes to buying oilfield products and services.

“We already have the buyers looking to purchase the products and equipment that companies have in surplus stock, and we have the electronic tools to ensure confidential and efficient transactions between buyers and sellers,” McHardy added. “We are buying the same products over and over again and, with our 16 years’ experience, we are well-placed to exploit this knowledge and buying power to the benefit of the wider industry.”