Analysis of different reasons for pending of invoices of Chevron's contractors

Abstract

Chevron Bangladesh and its subsidiaries have been active in oil and gas exploration and production in Bangladesh for a number of years, predominantly in Blocks 12, 13 and 14 in the greater Sylhet region, located in the northeastern part of the country. Chevron supports Bangladesh's goal to reduce the nation's reliance on imported energy by actively investing in projects that deliver more gas to Petrobangla. Chevron, having invested about US$ 850 million, is one of the largest foreign investors in the energy sector of Bangladesh. Chevron's vision is to work in partnership with the Government of Bangladesh and Petrobangla, the state-owned oil and gas company, to develop the country's energy resources in a safe, environmentally responsible and efficient manner for the benefit of the people of Bangladesh. Roughly 3,000 people work directly or indirectly for Chevron Bangladesh, of which approximately 96% are Bangladeshi nationals. The objective of this report is to analyze the reasons for which most of the invoices that are submitted by the Contractors are being delayed for payment and in which stages Chevron should give more emphasis to make the payment procedure fast and error free. 40% of the respondents (internal employees of Chevron) are between 30-35 years old and 33.3% of them are 35-40 years old. 73.3% of the respondents are male and only 26.7% are female. that 46.7% of the respondents have 3-5 years work experience and 20% of the respondents have more than 7 years work experience in Chevron. 73.3% of the respondents agreed that “Need original supporting” is creating problems for pending of invoices, so we can say that it is creating significant problem regarding with the payment and if Chevron become able to solve these then most of the problems should be solved. “Charge code related problems” are creating significant problem for creating pending of invoices because 86.7% respondents agreed with these reason. If rounding problem, clarification of overcharge, invoice amount & WT amount mismatch, wrongly claimed invoices, invoice currency & WT currency mismatch these problems are solved then 34.885% problems regarding with pending of invoices can be overcome. . And if Chevron becomes able to solve: contract termination & close, work ticket-insufficient fund , need Work Ticket, charge code related problem, need for original supporting, short payment, need to cancel & reissue WT these issues( these reasons are created by Chevron itself) along with component 1 then Chevron will be able to solve 77.408% of the problems regarding with pending of invoices. If Chevron implement further development in the eProcurement System, training of the eProcurement helpdesk personnel and the suppliers, employees then Chevron will be able to resolve the problems as soon as possible for smooth operation of its day to day business, improved relationship with the suppliers and creating a sustainable position in the Bangladesh market.