🇦🇺Australia

Cost Overruns in Equipment Procurement

3 verified sources

Definition

Procurement processes in oilfield equipment involve detailed RFQs, bidder analysis, and post-bid meetings, prone to errors without specialized systems, resulting in higher costs from suboptimal vendor choices.

Key Findings

  • Financial Impact: AUD 100,000 - 1M+ per project in overruns from inefficient sourcing and rush procurement
  • Frequency: Per major equipment purchase or EPC project
  • Root Cause: Lack of centralized purchasing systems and manual vendor evaluation

Why This Matters

The Pitch: Oil extraction players in Australia 🇦🇺 waste AUD 500,000+ annually on inefficient procurement. Automation of vendor bidding and RFQ analysis eliminates this risk.

Affected Stakeholders

Procurement Managers, Project Engineers, Asset Managers

Deep Analysis (Premium)

Financial Impact

Financial data and detailed analysis available with full access. Unlock to see exact figures, evidence sources, and actionable insights.

Unlock to reveal

Current Workarounds

Financial data and detailed analysis available with full access. Unlock to see exact figures, evidence sources, and actionable insights.

Unlock to reveal

Get Solutions for This Problem

Full report with actionable solutions

$99$39
  • Solutions for this specific pain
  • Solutions for all 15 industry pains
  • Where to find first clients
  • Pricing & launch costs
Get Solutions Report

Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Decision Errors in Vendor Selection

AUD 50,000 - 500,000 per procurement event in excess costs from poor decisions

Capacity Loss from Procurement Delays

AUD 5,000 - 20,000 per day in lost production from idle equipment

Work Program Non-Compliance

AUD 500,000-2M per unmet key object (e.g., exploratory well costs)

Permit Application Delays

AUD 100,000+ per month in idle rig costs during 3-month approval delays

Idle Drilling Equipment

AUD 50,000-200,000 per day in idle equipment costs during approval waits

Environmental Non-Compliance Fines

AUD 10,000+ fines per breach (typical statutory minimum for environmental regulation violations); project delays costing AUD 50,000+/month in idle rigs.

Request Deep Analysis

🇦🇺 Be first to access this market's intelligence