Supply chain management in the oil industry: The Angolan case

(Price NOK 50 + postage) Angola represents a new and promising offshore oil market where technology and contracts differ from those of Norway's offshore market in the North Sea. Based on a transaction-costs perspective, this paper analyses the organisation of the supply chain in the offshore oil industry in Angola and Norway. It is argued that since techology is more complex in Angola than in Norway, it requires integrated supply chain solutions. The oil companies in Angola achieve such integration by using integrated oil service firms. Furthermore, in Angola contracts between the supply industry and the oil companies are based on market transactions rather than relational contracts that are more common in Norway. The implications on penetrating strategies of the supply industry differ: Being an integrated energy service firm plays a similar role in Angola as the establishment of close relationships to the oil companies plays in Norway.