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Oil and Gaz Company Logistics Optimization

Student: Vorontsov Yuriy

Supervisor: Andrey Aleksandrovich Bochkarev

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Logistics and Supply Chain Management (Bachelor)

Year of Graduation: 2020

As part of our topic, we will study the process of optimizing logistics activities in the oil and gas industry. We will open the conceptual apparatus and lay down certain installations according to the theoretical knowledge base of logistics for this segment of the mining industry. Based on this theory, as well as the initial data of our chosen enterprise, we will further work on optimizing the logistics activities of this company. Today, the oil and gas production and processing segment plays a huge role in the economy of the whole country, the search for opportunities to improve all processes in this industry, in which logistics plays a key role, does not stop. At the same time, the logistics are not only the mining or processing companies themselves, but also other participants in the entire oil and gas chain. The relevance of our work is that in matters of optimization, first of all, everyone pays attention to the main processes, which include the largest functions and participants, and where the greatest costs and revenues are included. However, you need to understand that everything in the logistics chain is interconnected: if there is a malfunction or a decrease in the effectiveness of a particular section of it, the whole chain will immediately lower its performance. And it is necessary to take measures to identify potential problem areas and opportunities for improving the chain in all its sections, even the least significant, as it might seem. For example, as part of our work, we studied and optimized the logistics activities of a subsidiary of a large oil company, which in the future will increase the reliability of the logistics of the parent organization. The scientific significance of the work lies in the collection and processing of the theory according to the author’s vision for logistics activities in general, and for the oil and gas segment in particular. The main tools used to search for optimization solutions will also be briefly examined. The practical significance of the work will be a detailed example of the sequence of actions that must be applied when analyzing and searching for solutions to optimize the activity of the entire chain in the oil and gas industry, as well as its individual elements (participants). Note that the selected company has already partially completed part of the proposed actions indicated by us in the third chapter. The problems that we encountered in the course of our work are an entrenched approach with a frivolous attitude to the optimization of logistics of minor companies / divisions and the suboptimal use of logistics tools in building the supply chain. The purpose of the work is the optimization of logistics of Rosnefteflot JSC. The objectives of our work to achieve the goal are: - Research and analysis of professional literature on a given topic; - The study of the basic concepts on the optimization of the logistics of the company; - Analysis of the general and logistic activities of Rosnefteflot JSC; - Statement of problems based on initial data; - Search for opportunities for optimization and evaluation of their effectiveness. The object under investigation is the logistics activity of Rosnefteflot JSC. The subject of the study is the optimization of the company's logistics. Research methods - study of literature, formalization, analysis, comparison and juxtaposition, statistical-economic method and others. Sources for work were scientific and professional literature, dictionaries, articles from scientific journals, various internal documents of the company, information from the words of its employees and electronic resources. In the first chapter, we will build a conceptual framework and basic terminology. In the second chapter we give a general description of the enterprise, as well as its logistics activities. In the third chapter, based on the previous two, we will establish the problem in the logistics of the company, search for solutions to this problem and evaluate the proposed activities.

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