Section 1

Introduction

The oil and gas industry was negatively affected during the Covid-19 pandemic situation and created a delay in the organizational process and operations. Limitations in transportation systems, social distancing and government rule heavily affect the supply chain management of the oil, gas industry. Supply chain delay increases operational cost and that negatively influences the purchasing practice of suppliers as well as consumers (Pdfs.semanticscholar.org, 2021). Oil and Gas industry faces different challenges such as financial crisis, workforce crisis, disruption of material supply during the Covid-19 pandemic situation. Many organizations of Oil and Gas industries set short term strategies regarding cost-cutting, minimizing business expenses to maintain cash flow in this health emergency situation.

Delay in delivery process, high price segments of Oil and Gas industry negatively impacts purchase process of supplier and consumers. It is necessary for the Oil and Gas industry to make strategies to minimize delay in production process, delivery delay for improving purchase process (Pdfs.semanticscholar.org, 2021). Most people and organizations are facing a huge financial crisis during a pandemic situation that also negatively impacts their purchasing practices. The Malaysian government has announced a movement control order (MCO) to prevent this contagious virus that also negatively affects the supply chain process as well as manufacturing process of these two industries.

The study is mainly focusing on critical analysis of delay factors that negatively affect the Oil and Gas industry during pandemic situations. The Oil and Gas industry of Malaysia is also negatively impacted by different delay factors during the Covid-19 pandemic (Pdfs.semanticscholar.org, 2021). All delay factors that slow down the manufacturing process, supply chain process of the Oil and Gas industry in Malaysia will be discussed in this study. This study will also critically evaluate different strategies to minimize delay factors of the Oil and Gas industry to improve purchase practices during the pandemic. Based on analysis of different factors that create a delay in the Oil and Gas industry more strategic recommendations will be provided for improving purchase practices during the pandemic.

Section 2

Case study analysis

During the pandemic period, the oil and gas sector has assessed their project in a delayed manner. Due to the pandemic situation that has been impacted the oil and gas sector in the Malaysian market negatively where it faced several challenges which are as follows:

The problem faced the oil and gas industry during COVID-19 in terms of placing orders

• Late delivery and restriction of critical equipment

Late procedures and delivery is a major problem for oils and gas companies in the Malaysian economy. Furthermore, late delivery time is a problem for an organization as a result; the company has delayed its projects delivery time during the pandemic situation. As cited by Boelig et al. (2020), project delivery time is essential for the business. Therefore, it can be stated that due to the pandemic situation companies were unable to complete the projects within the deadline and get the negative result. Therefore, it can be stated that due to delayed project delivery the performance was decreased during the pandemic period of the business in the Malaysian market. The organizations also faced difficulties before the pandemic situation which are insufficient designing skills, poor management skills and poor contract decision making for the business led to delaying the project in this market.

• Lower rate of employment that led to low productivity

During the pandemic period, the companies were forced to remove the employees in the business to get a higher rate of sales. Therefore, in every sector, the employees had lost their jobs and could not find a new job in the market. As a result, this led to lower productivity in the business due to a lower rate of employment. As cited by Ibrahim et al. (2021), during the pandemic period, the employees were worse off in this situation and businesses also faced difficulty hiring the right resources to increase productivity in the market. According to the case study, it has notified that 45% of participants were agreed with this concept strongly. Therefore, it can be stated that the businesses in the Malaysian economy faced lower rate of employment rate in the business. Moreover, poor communication skills in the management activities were also a major problem in the business before the pandemic situation.

• Lockdown delaying the project delivery time

During the pandemic period, the lockdown has started in the period 2020 where every business was forced to shut down during this market crisis. As cited by Suguna et al. (2021), due to lockdowns, the companies were facing the issues of delivering the project on time. The companies faced difficulty in the human resources management to execute the strategies effectively in the market. Therefore, the project schedule was late for achieving those meetings, and the plan for the business was not effective during the situation. These problems were negatively impacted business in the Malaysian market during the quarantine, therefore, it can be stated that several companies were facing the same issues of delivering the projects on time.

• Lack of financing

Before the pandemic situation, the business had faced a major financial risk in their business. Therefore, it can be stated that a lack of financing skills in the business was a major problem to cope with the crisis (Tatuev et al. 2017). The financial performance was not stable for growing the business effectively in the Malaysian market. During the pandemic situation with a lack of earring ability, the construction business faced a lower rate of revenue. As per the view of López et al. (2019), it can be stated that financial risk is a major factor for the business to mitigate the risks in the business. In this case, several companies in an economy faced financial instability before and during the pandemic situation in the market. Therefore, during the pandemic, the business faced difficulties paying its debt and wage to the employees. Before the pandemic lack of management facilities, the companies have been faced a financial risk in the market.

• Government regulations and rules

Before the pandemic situation, the construction business in the Malaysian economy had faced easy-going government rules and regulations. Therefore, it can be stated that for delaying the project there was no restriction or contract with the business. As cited by Mutiarin et al. (2019), regulations and rules are important for an economy. Government should propose a rule for the business to control their marketing power (Reynaud, 2021). During the pandemic, the government had to decide to close all the stores and maintain the social distancing in an economy. Therefore, during the pandemic, the business has faced difficulties to earn a higher range of profitability in the market. Before and during the pandemic the economy has faced a major problem in their business.

Relationship with suppliers by companies and inventory management during the situation

• Difficult to schedule an appointment

Delaying projects led to delay in appointment with the local community in the Malaysian market. As cited by Holstead et al. (2020), during the quarantine situation, the people were more concerned about their health and hygiene. Therefore, the project meetings with local communities were cancelled due to COVID-19. As a result, businesses faced a loss in the market where they could not connect with local authorities. Due to the delaying project, the authorities were forced to cancel all appointments with the business. Furthermore, before the pandemic period, businesses have also faced difficulties to schedule an appointment with suppliers. Poor management and poor strategies were major problems before the pandemic situation.

• Limited resources

Due to corona virus, the business has been faced a lower amount of resources that they could use in this market crisis. According to the case study, limited availability of equipment in the gas and oil industry in the market has caused to grow as a leading sector during the pandemic period (Mitchell et al. 2020). As a result, it can be stated that the sector has a limited supplier where they could bring the resources and use them wisely into their business to face a higher amount of sales. Therefore, limited suppliers were a major factor that the industry has faced during the pandemic situation. In the Malaysian economy, the business has been faced a lack of communication with contractors, consultants in the market before the pandemic period.

• Lack of communication with the contracts

Poor communication skills in the construction business are a major problem to grow as a leading company in the market. Before the pandemic period, the employees in the construction business had poor communication skills. Therefore, the employees could not contact the suppliers for buying resources and maintain the connection. As cited by Martin et al. (2020), communication with the contractors is necessary for the business. This was a major problem for the construction business in Malaysia where the employees had poor communication skills. As cited by Roman et al. (2018), contracts with suppliers are essential for the business to maintain the relationship. Furthermore, during the pandemic period, the employees are more concerned about social distancing. As a result, the contractors were limited due to a lack of communication in the business which was difficult to maintain the relationship with the suppliers and business.

Changes in procurement strategy during the pandemic situation

• FSR to the construction site

The field service representative has been changed their strategy for the business which has negatively impacted the oil and gas business in the Malaysian market. As cited by Adnan et al. (2020), FSR has an important role to play in the construction business in the market. During the pandemic, FSR has changed its planning and executed wisely in the business where it was difficult to keep things updated in the business. Therefore, it can be stated that during the pandemic the businesses were facing more difficulties as compared to before the pandemic. Before the pandemic period the business the construction business in Malaysian were facing bad planning and execution that led to delaying the delivery of the project on time.

• Leadership styles

Before the pandemic period, the leadership style was different whereas after the pandemic change in leadership style was a major difficulty for a business to cope with the situation. Before the pandemic situation, poor leadership style was a major problem for a business where leaders were not effective to encourage the other employees to contribute effectively. As cited by Al et al. (2018), leadership styles are essential for the business to motivate other employees in the business. Moreover, after the pandemic situation change in leadership styles and management activities were challenging for the employees to share their problems and innovative ideas. Therefore, with the new leadership style, the employees were comfortable sharing their problems in the working culture. Therefore, it can be stated before and after the pandemic situation, the business in Malaysia has been faced a real problem in the industry.

Section 3

Recommendations

The pandemic period has impacted negatively on oils and gas companies that are located in the Malaysian market. The leading gas and oil companies were struggling to cope with the market crisis and faced delaying their project. Therefore, there are certain strategies to mitigate those problems where the companies had faced during the pandemic period.

• Adopt new strategies for the companies to update the mindset

Adopting a new leadership approach to the business and updating the mindset in the business can be mitigated the market crisis. As per the view of Töytäri et al. (2018), this strategy can achieve the organization’s aim and objective to build a brand in the market during the pandemic situation. According to the case study, a wider range of participants was strongly agreed with this concept to adopt a new leadership approach in the market to solve the market crisis. A leadership style is essential for the business to implement a plan and motivate other employees to contribute effectively to the business. Therefore, a new leadership style is needed for the Malaysian companies to plan a new strategy for recovering from the market crisis.

• Develop sustainability with an innovative approach

The innovative approach provides a unique way for the business to grow in a competitive market. The companies can be beneficial during this market crisis as customers purchase a wider range of products and can grow the sales volume of the business. Therefore, it can be stated that the adoption of innovative ideas and thoughts is required for the Malaysian economy to cope with the market crisis and produce a unique commodity for the customer. As cited by Martins et al. (2019), this strategy can increase the customer base and grab opportunities from the market. This strategy can affect positively project performance for the business and grow in a competitive market. This strategy was acceptable in this case study where a broader range of participants strongly agreed with this concept of innovative approach in the market. Therefore, the oil and gas sector should adopt innovative approaches in the business to mitigate the pandemic problem.

• Collaborative nature with employees and partners

Every business should encourage the other employees and collaborate that every employee in the business can work productively. As cited by Bürger et al. (2021), collaborative nature is essential for teamwork in the business which can be beneficial for the companies to mitigate the market crisis. The working culture also affects positively by adopting this collaborative strategy. Therefore, it can be stated that a collaborative approach is essential for a working culture to work properly and like teamwork, this is necessary for the business. According to the case study, 70% of participants were strongly agreed with this concept as this is required for the business during the market crisis. Therefore, it can be stated that the oil and gas sector of the Malaysian market should adopt this strategy for growing the business in a competitive market. This strategy can affect positively Malaysian companies where they should collaborate with contractors, partners, society, and team members.

Figure 1: Strategies

(Sources: Created by Learner)

• Adopting agile project management

The oil and gas industry should adopt agile project management in their business to grow as information technology in the Malaysian market. As cited by Senabre et al. (2018), agile project management is implying in the technology industry to grow in the market to compete with other companies effectively. Therefore, it can be stated that the companies should adopt agile project management in their business and can face a positive effect of this strategy on the projects. The companies can face a better quality project in their working environment. There are four categories that agile project management are included which are the interaction between consumers, working software, collaborative nature between workers and customers, update and responding while changing. Agile project management is an iterative approach for the business to get the best value for the team members. There are other processes of agile project management such as evaluating, planning and executing the plan for team members so that organization can share their problems and work as a team. Therefore, it can be stated that the oil and gas sector should adopt this approach in their project management to get an effective result.

• Project control

The oil and gas sector should be more flexible in their project so that they can make a proper decision during the pandemic and plan for a new strategy in the market. As cited by Remus et al. (2020), companies can create innovative techniques and tools for controlling the project in the business. Moreover, the companies within the gas and oil industry in the Malaysian economy should improve the delivery project in the market. The companies should improve their human resource management to get an effective result for the business during the pandemic situation.  Furthermore, the company should include estimation in their working culture and improve internal factors to mitigate the market crisis in the business. Therefore, implementing the best project practices of the business can develop sustainability to get better project practices in the market.

• Digital transformation

Digital transformation is essential these days to get the solution for project continuity. Therefore, it can be stated that digital transformations are a good approach to the oil and gas sector to implement effectively and get a positive effect in the business. As cited by Vial (2019), digital transformation can increase the sales volume of the business in a sector. According to the case study, the major participants were extremely agreed with this concept of digital transformation in the business to compete with the other companies. During this market crisis digital transformations are needed to cope with this market.

• Improving delivery time and schedule with a purchase order

Improving delivery time and schedule with a purchase order are highly affected in the business to cope with the market strategy. As cited by Sulthan et al. (2021), the oil and gas companies should be focused on critical techniques and early planning for purchasing orders in the business. This strategy can improve the meeting and schedule for the business so that they can plan for an organization effectively.

Section 4

Conclusions

From the study, it has been concluded that during the pandemic Gas and Oil industry of Malaysia is negatively affected. Different delay factors such as supply chain delay, manufacturing delay, and disrupted equipment supply slow down these two industries. Malaysian Government announced MCO that arise limitations in transportation sectors and creator delay in supply chain management in these two industries. Reasons behind the change of purchase practices in these two industries are also discussed that helps management and government to make strategies for improving purchase practices.

Financial crisis, delay in manufacturing as well as delivery process of the Oil and Gas industry are also important reasons behind the change of purchase practices. Some strategic recommendation is also discussed in this study based on the analysis of different delay factors. Management of the Oil and Gas industry of Malaysia is required to follow recommended strategies to improve their manufacturing process, supply chain process as well as purchasing procedures. Critical equipment and materials are important to minimize delays in the Oil and Gas industry and also may help to maintain project schedules to get better results. Majority of delay and change in purchase practices occurs due to limitation of transportation system and less availability of materials in the Oil and Gas industry.

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