PROCUREMENT STRATEGIES AND PROJECT COMPLETION (A CASE STUDY OF NIGERIAN PETROLEUM DEVELOPMENT COMPANY)

ABSTRACT
Procurement Strategies technique is the acquisition of goods and services that are required for the daily running of an organization or for the completion of a project. Procurement strategies enables the organization to procure at the best possible cost to meet their needs in terms of quality, quantity, time and location through right sourcing, competitive bidding process that requires fairness and accountability in selecting the supplier that has the capability and technical know-how. The problem of lack of proper procurement strategies has been identified and as a result, some project will not be completed according to plan thereby increasing overhead cost. A Simple Random sampling method was used to select 100 respondents from the Operations Division, Joint Venture Division, Environmental, Technical Division and the Procurement Department. Questionnaire was the main tool used to gather data. Two SPSS methods – Chi-square and correlation were used to analyze of the data obtained from the questionnaire. The chi-square was used to determine whether there was significant relationship or not between the variables while the correlation was used to determine the strength of the relationship. The findings revealed that there was a relationship between: right sourcing of long lead items and prompt completion of oil and gas project; proper procurement strategy and cost efficiency: between selection of suppliers and prompt completion of oil and gas projects and between specification and prompt completion of oil and gas projects. The research showed that when an organization put the right procurement strategies in place, they will be able to complete the projects as planned; they will have cost benefit and will be able to achieve its set objectives and goals.