Department · IOGP 510
Commercial
Scope
Procurement and supply chain, contract lifecycle, supplier qualification, JV and partner commercial governance. The function that owns the boundary between the company and the third parties it depends on.
The reframing
"Procurement is not the work — it is one slice of the work. Commercial owns supplier capability assurance (Element 3), contractor risk (Element 5), supplier KPIs (Element 9) and contract assurance (Element 10) just as much as it owns tenders and contracts (Element 7). Treating Commercial as 'the people who buy things' guarantees the supplier base will be a source of risk the management system cannot see."
Footprint across the framework
E01
Commitment and Accountability
This is where the company commits to what it stands for in the market — ethical sourcing, anti-bribery, ESG and the framework of authority that governs spend.
4 docs →
E02
Policies and Standards
This element holds the non-negotiable commercial rules — procurement, tendering, single-source justification, sanctions and ESG requirements.
6 docs →
E03
Organisation, Resources and Capability
This element holds commercial capability — PSCM organisation, the asset/corporate split, category management and the contract holder model.
4 docs →
E04
Stakeholders and Customers
This element holds the supplier and partner interfaces — strategic supplier framework, JV interfaces, local content and regulator-facing reporting.
6 docs →
E05
Risk Assessment and Control
This element is where PSCM becomes a risk-control function — contractor HSE risk, supply chain risk, single-source risk and late-life contracting risk.
4 docs →
E06
Asset Design and Integrity
This element holds the commercial systems and controls that enable safe spend — ERP, CLM, approval workflows and spend visibility.
5 docs →
E07
Plans and Procedures
This element holds the commercial procedures — tendering, award, variation, mobilisation, performance review and close-out.
9 docs →
E08
Execution of Activities
This element holds execution by contract holders and the line — because PSCM does not manage contractor safety, line management does.
6 docs →
E09
Monitoring, Reporting and Learning
This element captures how commercial and supplier performance becomes visible — supplier KPIs, contractor HSE performance, spend analysis and risk-trend review.
4 docs →
E10
Assurance, Review and Improvement
This element holds the independent challenge of commercial activity — contractor assurance, PSCM audit, contract compliance audits and DoA audit.
6 docs →
Where Commercial pivots into other departments
→ EngineeringVendor technical assurance, specification compliance
→ Operations & MaintenanceService contracts, contractor performance
→ Finance & LegalSanctions, contract terms, financial assurance of suppliers
→ WellsDrilling and well services contracting