Strategic Sourcing Decisions

Constructing an entire oil field requires extensive planning and strategic sourcing decisions.

Inventura has assisted Lundin with the establishment of the total contracts portfolio required for operations on Edvard Grieg. Inventura’s toolbox was utilized in the process, following the 9-step model.
Lundin Norway is the operator of Edvard Grieg, located in the Utsira High area in the central North Sea.
With Edvard Grieg being the first Lundin-operated field, the establishment of an operational organisation within the company was needed alongside the physical development of the field.
- We were given the responsibility of establishing overall contracts needed for operations on Edvard Grieg from start-up in 2015. We established a dedicated project office in Bergen, staffed with a group of specialists working in close collaboration with Lundin’s own project- and operations organisation, says partner Atle Sundøy from Inventura.

The project was executed in three main phases.
- In phase one we prepared a principal contract strategy for field operations. After receiving approval on our strategy proposal, our task in phase two was to develop detailed sourcing- and execution plans, including risk assessments and market analysis, Sundøy says.

In the third and final phase, all contracts were established and signed. The work was carried out in accordance with Inventura’s own methodology for sourcing- and procurement processes.

- Inventura has developed an extensive toolbox for the execution of sourcing- and procurement processes, called Inventura Tools. The toolbox contains industry-specific templates and standards for all central contracts associated with operating a field, says Sundøy.

Twenty-seven main contracts were established for operations on Edvard Grieg. The project was completed prior to schedule and under budget.