The Role Of Negotiation And Contract In Outsourcing Decision In Oil And Gas Industry (A Case Study Of Shell)

Background of the Study

Background of the study

The research proposal will be focusing on the diverse and significant aspects in the role of negotiation and indenture in outsourcing decision in lubricant and gas manufacturing. The oil and gas sector have been facing juridical actions in the recent years which need to be workout for different existing company in the industry and framework recounted. The overall study will be focusing on the role of negotiation and contract in outsourcing decision in correlation to commercial growth and specific spotlight on the environmental aspects related to oil and gas industry.

Problem of the study

This study will aim at understanding the role of negotiation and contract in outsourcing decision in the petroleum industry. However, oil and gas manufacturing industry has conveyed several debates as producers and investors have both adverse and optimistic ideas concerning productiveness. Also, the importance of negotiation and outsourcing decision is expected to escalate because of the astringent ways of resolving challenges associated with the industry in the current era.

Rationale of the study

The study will be authoritative has it helps in the generation of new contact and filings of gaps within the role of negotiation and contract in outsourcing decision in oil and gas industry. It will enable the contribution towards the generation of new understanding which can be used by oil and gas companies to tackle various problems in the market currently and in future.

Aims of the study

The study will aims to inspecting role of negotiation and contract in outsourcing decision in oil and gas industry globally.

Objectives of the study

  1. To determine the negotiations and decision processes in the oil and gas industry.
  2. To make recommendations on how to resolve various aspects affecting the industry and sub- industry.
    • Questions of the Research Study

The questions guiding this studt will be the following;

  1. What are the negotiations process in the petroluem industry?
  2. How to resolve the various aspects affecting the oil and industry and its sub-sectors in the current market trends.
  • Hypotheses

On the other hand, findings of this study will be the momentum to researchers’ with limited time and adequate resources to engage in investigation of the role of negotiation and outsourcing decision in the lubricant and gas manufacturing industry.

The hypothesis and concepts which will be link to this study will recognize and help in the understanding of the research project in the lubricant and gas manufacturing industry. In this section various literature work will be analyzed to come up with a more creditable data on the research topic of the study. According to Almeida et al. (2018, pp.288- 295) is that oil and gas industry has been facing numerous and tremendously change globally in negotiation and contract outsourcing. Creswell also stipulated that role of negotiation and contract in outsourcing decision in oil and gas industry is accounted for a lion share of internationally.

Problem of the Study

Shell Company Negotiation Process

According to Umar (2015, p. 45) they are numerous steps that can be taken by  both Shell Company and government negotiate on how to carry out its oil and gas business. The phase of negotiation include the selection of the type of contractal system to be used by the compnany, government and Shell selects who to be in the negotiation team and determinatination of the company objectives when entering into the business (Umar 2015, p. 45). Generally, the negotiation contract has it own structure suc as the preamble, the main version and the appendices as the intergral parts of the contract.

Outsourcing done by Shell Company

The type of outsourcing include operational, strategic and multisourcing. Shell has both outsourced the both core-activities and supporting activities. According to Göhler, Ebro & Howard (2018, pp. 239-259) Shell Company has outsourced mostly in supporting services such as HR services, oil well- producers, drilling equipment and potential engineering staffs. The outsourced will enable the company to compete favorable with other oil and gas companies in the industry. The engineering workforce outsourced help Shell to equip itself with appropriate scientific methods of analyzing the products it offers in the industry.

Successful Outscouring Reasons of Shell

Shell Company has driven a comprehensive the communication channels during group meeting as inforamtion is essential to the outsourced partners in the oil and gas industry (Fakhru’l-Razi et al. 2017, p. 551). Shell has been looking forward to venture only with partners who can be trusted in outsourcing process with has made the organization outsourcing processes sucessful (Malone et al. 2013, p. 242). The successful reason of Shell outsourcing has beeen the results of scope understanding of the market trends before bidding or negotiate with other companies in the market.

The challenges that Shell Company has in the outsourcing contracting process include the hiring of a wrong contractor to carry out the outsourcing process and inflrxiable contract, setting of unrealistic goals in the oil and gas industry (Jafarinejad 2017, p. 10). Shells has also been faced by inadequate understanding of its expection in the market, lack of appropriate management appraisal and poor project and management team in the orgnization (Jafarinejad 2017, p. 10).

According to Collins, Rozeff and Dhaliwal (2011, p 48) is that methodology is a procedure that facilitates the analyzing of a specific research topic to provide a suitable outcome on the study problem. It also helps in operational process for the academic to carry out a proper and exact research in a given field. However, a complete method of research goals, scheme and system will be tackled in this part. The methodology is divided into the following segment Philosophical position, Research Design, Research Strategies, Primary Approach, Data Analysis and Timetable.

Rationale of the Study

Philosophical Approach

In the perspective of different authors, research approach can be categorized into epistemology and ontology. Generally, fieldwork will be done by a researcher to find out an issue in one approach known as epistemology whereas the metaphysic philosophy will not be appendicle (Chima 2011, p. 6). The researcher determination will be significant to resolve the problem in stipulations of the approaches research theory (Chima 2011, p. 6). Thus, epistemology research approach will be about the role of negotiation and contract in outsourcing decision in oil and gas industry.

Research Design

Research design of a scrupulous research topic assists in the determination of the work structure of a specific topic Petraco et al. 2018, p. 134).  It facilitates in the selection and collection of information resources at some stage in analyzing a research report. In addition research design can be grouped into three, Descriptive research design, Explanatory research design and exploratory research design.

Research Strategy

Research strategy can be defined as the pace of planning which gives direction to the researcher efforts and thoughts which enable the research to be carried out be successful. The systematically procedures and schedules will allow the quality results and in-depth detailed report. The approach of the case study will be used as it requires minimum number of evidences to a research topic. The gathering of information from a lesser sample aids to attain the required outcomes which can present the population required in a study. However, the study will be mainly focus on the role of negotiation and contract in outsourcing decision in  the petroluem industry (Haque et al. 2017, p. 450).The case study of Shell will be applied in the study for strategic verification of the number of sample required in this study.

Primary Approach

The primary method of a proposal can be defined as the approach used in qualitative research but not in quantitative research. The information collected will be investigated in order to attain the problematic and difficulties of the study statement. Acording to Collins, Rozeff and Dhaliwal (2011, p. 48) the methodologies are not put up to investigate the research delinquent but to set the theory for the clarification of the research problem by the use of deductive steps forward (Fakhru’l-Razi et al. 2017, p. 551). Deductive methods will give specific pertain to this study in order to identify the correlation between the viability of the role of negotiation and contract in outsourcing decision in oil and gas industry.

Aims of the Study

Data Collection and Sources

Data collection in a research progression that helps to highlight the vicinity which comprised of data and essentials correlated to the research topic. Data collection shows a realistic understanding of a given research focus and consequently assists in gaining better details of the subject to enhanced and homogeneous comportment way.

Qualitative and Quantitative Data Collection

Data procedures in this study will be either quantitative or qualitative. Qualitative information is supportive to deal with descriptive data which gives detailed clarification to the apprehensive theme (Ayub et al. 2013, pp. 82-90). Whereas, quantitative data explains viewpoints of large no number of defendants in a more organized and laid-back manner and rises the apprehension of viability also. In addition, the thoughts of correspondents is limited as a result of few parameters list (Murphy et al. 2018, p.10).

The study main information will come from secondary data sources which will be revealed. Nonetheless, as Collins, Rozeff and Dhaliwal (2011, p.37) explains that data sources should be protected and be used for analysis of a study for the confidence of the sample taken. Thus, the essential and main objective of this study will be to contemplate the ethical considerations. The ethics will ensure that no harm has occurred to any person during research activities.

Primary Activities


Required Resources

Research title search, preparation and planning.

7 days

Microsoft Word 2013 , World Cat, Google scholar

Literature Appraisal


Microsoft word 2013 , World Cat

Perform key research and collection of secondary information

14 days

Emailing techniques

Information study

7 days

Microsoft word 2013  


14 days

Microsoft word 2013  

Citation Finalisation

5 days

Microsoft word 2013  

  1. Learning objectives:

Objective: The impartial of my research will be to gain the knowledge on the role of negotiation and outsourcing decisions in the petroluem industry. Also, the effect of long-term negotiation period in the same manufacturing sector and, its effects to the investors and consumers globally.

  1. Research Purpose

The reverberation of the study in the oil and gas industry aids in elucidation of the mechanism in negotiation and decision making especially in the effected companies within the sector.

  1. Subjects to be studied:

The following topics will be studied during this learning contract.

  1. Legislation, regulation and policy in the oil and gas sector in USA
  2. Legislation, guidelines and procedures inside oil and gas company globally
  3. Different authorities contribution within the sector in various countries around the world
  4. Work to be completed:

A substantial body of documents relating to Shells Company systems will be retrieved and read during this learning contract. The reading materials will oblige as the knowledge vile of the proportional research and strategy models in the lubricant and gas industry. Finally, the study will synthesize readings and situate the USA oil and gas industrial system in the transnational context.

  1. Personal Goals

i.To increase my understanding and proficiency in the oil and gas industry.

ii.To learn restriction whereas increasing my knowledge in petroluem mining process.

iii.To learn how to keep a consistent record of my work in the laboratories while cumulating confidence in the laboratory setting work

  1. To acquire results from the authorization publications, whether as a paper or poster with the option of presenting the paper or publication at a conference

Objectives of the Study

  Am able to successfully complete a range of research-like tasks, including evaluation, with a significant degree of autonomy in a few moments.  In addition, I can communicate perfectly and confidently in a range of formats and at a high standard in regard to appropriateness for graduate-level employment and undergraduate.

 However, can work professionally in a team-based organization as a leader. The leadership qualities and skills include appropriateness, conflict management and meeting various obligations set by the organization.

Professionalism and experience

Professionally I am flexible and autonomously. Thus, as applied to the identification and definition of a range of composite challenges rounding knowledge and the methods of conflict solving to get credible solution. Am gifted in showing of autonomy insight to evaluate personal weaknesses and strengths. Hence, have develop professional characters and skills required for post-graduate-level employment.

Research questions include:

i. What are the negotiations process in the oil and gas industry?

  1. How to resolve the various aspects affecting the oil and industry and its sub-sectors? in the current market trends.
  2. Strategies to get resources:

Numerous sources of materials will be retrieved:

  1. Google Scholar Onliness journals as sources of references
  2. Edmonton and Oxford Public Library
  • Personal books
  1. Internet documents specifically on oil and gas industry
  2. Points of view to be considered in the research:

I will be considering innumerable traits of oil and gas industry in the follwing area;

  1. Current provisions of oil and gas legislations  
  2. International instances of  oil and gas negotiation processes
  • Statistical research relating to oil and industry model
  1. The role of the faculty affiliate

The facility member has been an instrumental in the progress of this research methods proposal. I am thankful for his assistance the formulation the overall framework for this study. He has certified that an inclusive and interdisciplinary study in oil and gas is undertaken it’s the appropriate way. The focus on worldwide illustrations is a critical and valuable change grounded on the guidance he offered to narrow the range of the study. In addition, he has endorsed the inclusion of a several international examples for the insurance of fairness and neutrality throughout the study period. However, the consideration to assortment of policy replicas of negotiation will be trailed on well.

  1. Timelines for the completion of learning contract

March 1, 2018 – Contract Period commence and analysis of the resources as well

March 5, 2018 to April 5, 2018 – Conclusion and looking for of Instructor’s approval

April 5, 2018 to May 4, 2018 – Assignment 1 completed

May 6, 2018to June 4, 2018 – Assignment 2 reading completion

June 8, 2018 to July 8, 2002 – Assignment 2 revision Completion

July 6, 2018 to August 1, 2018 Finalisation of the contract


Almeida, M. L. B., Ayres, E., Moura, F. C. C., & Oréfice, R. L. (2018). Polyurethane foams containing residues of petroleum industry catalysts as recoverable pH-sensitive sorbents for aqueous pesticides. Journal of hazardous materials, 346, 285-295.

Ayub, A., Razzaq, A., Aslam, M.S. and Iftekhar, H., (2013). Gender effects on entrepreneurial orientation and value innovation: evidence from Pakistan. European Journal of Business and Social Sciences, 2(1), pp. 82-90.

Literature Review

Cannizzaro, A. P., & Weiner, R. J. (2015). Multinational investment and voluntary disclosure: Project-level evidence from the petroleum industry. Accounting, Organizations and Society, 42, 32-47

Chima, C.M., (2011). Supply-chain management issues in the oil and gas industry. Journal of Business & Economics Research (JBER), 5(6).pp. 246-274

Collins, D.W., Rozeff, M.S. and Dhaliwal, D.S., (2011). The economic determinants of the market reaction to proposed mandatory accounting changes in the oil and gas industry: A cross-sectional analysis. Journal of Accounting and Economics, 3(1), pp. 37-71.

Fakhru’l-Razi, A., Pendashteh, A., Abdullah, L.C., Biak, D.R.A., Madaeni, S.S. and Abidin, Z.Z., (2017). Review of technologies for oil and gas produced water treatment. Journal of hazardous materials, 170(2-3), pp. 530-551.

Göhler, S. M., Ebro, M., & Howard, T. J. (2018). Mechanisms and coherences of robust design methodology: a robust design process proposal. Total Quality Management & Business Excellence, 29(3-4), pp. 239-259.

Haque, J., Ansari, K. R., Srivastava, V., Quraishi, M. A., & Obot, I. B. (2017). Pyrimidine derivatives as novel acidizing corrosion inhibitors for N80 steel useful for petroleum industry: A combined experimental and theoretical approach. Journal of Industrial and Engineering Chemistry, 49, pp. 176-188.

Jafarinejad, S. (2017). Recent developments in the application of sequencing batch reactor (SBR) technology for the petroleum industry wastewater treatment. Chemistry International, 3(3), pp.  241-250.

Jawad, S., Ledwith, A., & Panahifar, F. (2018). Enablers and barriers to the successful implementation of project control systems in the petroleum and chemical industry. International Journal of Engineering Business Management, 10, 1847979017751834.

Khajeh-Hosseini, A., Greenwood, D. and Sommerville, I., (2010), July. Cloud migration: A case study of migrating an enterprise it system to iaas. In Cloud Computing (CLOUD), 2010 IEEE 3rd International Conference on (pp. 450-457). IEEE.


Leiserowitz, A., (2016). Climate change risk perception and policy preferences: The role of affect, imagery, and values. Climatic change, 77(1-2), pp.45-72.

 Malone, D., Fries, C. and Jones, T., (2013). An empirical investigation of the extent of corporate financial disclosure in the oil and gas industry. Journal of Accounting, Auditing & Finance, 8(3), pp.249-273.

Murphy, L., Abdulai, A. F., Anwar, K., Abdullah, A., & Thomas, B. C. (2018). Financial Entrepreneurship in Three Emerging Economies: A Comparative Study of Ghana, Pakistan, and Yemen. In Financial Entrepreneurship for Economic Growth in Emerging Nations (pp. 1-21). IGI Global.

Petraco, R., Dehbi, H. M., Howard, J. P., Shun-Shin, M. J., Sen, S., Nijjer, S. S., & Francis, D. P. (2018). Effects of disease severity distribution on the performance of quantitative diagnostic methods and proposal of a novel ‘V-plot’ methodology to display accuracy values. Open Heart, 5(1), e000663.pp. 134-432

Umar, M.B., (2015.) Legal Issues in the Management of Nigeria’s Production Sharing Contracts from a Study of the Nigerian National Petroleum Corporation’s (National Petroleum Management Services’) Perspective. Oil, Gas & Energy Law Journal (OGEL), 3(1). p.45

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