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How the Oil and Gas Downstream Business Moves From Crude Oil to Customer

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The downstream segment of the oil and gas industry covers refining, processing, distribution, marketing and sales of petroleum products to end customers. The process begins with procuring crude oil from internal or external suppliers, with activities such as contract management and quality monitoring. Refined products like petrol, diesel, aviation fuel, LPG and naphtha are then held in storage, where inventory tracking and stock reconciliation take place. Finished goods are moved to depots and retail outlets by pipeline, tanker, rail or road, and sold to retail, industrial and commercial buyers. The article also notes that SAP software modules such as MM, SD and FI are used to manage these stages, from inventory and logistics through to billing and financial reporting.

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