Environmentally friendly cost efficient and effective sea transport outsourcing strategy: The case of Statoil

• This study deals with sustainable and competitive sea transport outsourcing.
• The sustainability criterion is found to be as perplexing and convoluted.
• Criteria are environmentally friendly, flexible mode of sea transportation.
• Environmentally friendly sea transport supplier maximizes the risk of suppliers.
• Partnership with a cost reimbursable agreement is the best coordination.

Statoil is a completely integrated oil and gas Norwegian company which established in 1972. The company is one of the most technology-intensive world’s leading energy producers and covers more than 35 countries across the globe. This study proposes how Statoil coordinate with environmentally friendly, cost efficient and effective sea transport supplier. The study used the theories of supply chain management such as model of industrial purchasing process, model of strategic triangle and Kraljic purchasing portfolio model. The result of the study identified that the emission of environmentally harmful gases from sea transport are dependent on the size and the speed of the ships, and the type of fuel they consume. The best solution for Statoil to get environmentally friendly sea transport service is using suppliers that are certified by the preferred standard of ITTC 7.5-04-01-01.2 or ISO 15016:2002. The requirement of environmentally friendly sea transport supplier by Statoil maximizes the suppliers’ risk. Therefore, making partnership with the supplier is the effective and giving the contract with a cost reimbursable agreement of fuel price adjustment (escalation clause) is the cost efficient coordination of Statoil.