Interlinked activities of the company, suppliers, customers and other stakeholders that convert inputs into beneficial outputs (i.e. products).
Mapping a company’s value chain can support understanding of risks and help set boundaries when considering impacts of activities. For an oil and gas company, the value chain refers to the full lifecycle of its products, including the processes of extraction, production, refining, marketing, consumption and disposal/recycling. Stakeholders in the input side of the value chain include suppliers and contractors- the “supply chain”.
Stakeholders in the output side include the “customer chain”, which may include resellers, retailers and consumers.
Source: IOGP Report No. 510, Operating Management System Framework for controlling risk and delivering high performance in the oil and gas industry, International Association of Oil & Gas Producers, June 2014. Global Standards