Gazprom Neft’s average annual procurement of its essential material and equipment needs from the domestic market
PRINCIPLES OF COOPERATION: observance of business ethics; mutual responsibility; transparency and competitiveness in partner selection; common approach to achieving production objectives and product quality management.
The Company has a unified system for preparing, organizing, and conducting regulated procedures for selecting contractors to supply materials and equipment, and provide work and services to meet the needs of the Company and its subsidiaries and affiliates. Suppliers are selected purely on the basis of the procedures for selecting contractors.
The approaches used ensure:
- maximum efficiency and effectiveness of procurements
- an optimal level of competition between potential bidders
- an objective, well-founded, and impartial process for selecting the winning bidders
- reasonable openness in the tender procedures
The Company's procurement policy is designed for working mainly with the manufacturers of goods and providers of work and services, and with the official representatives of those suppliers.
Gazprom Neft is actively involved in import substitution programmes in various sectors of the business. In 2014, the Company made the decision to support domestic producers, all other things being equal. A list of alternative vendors who can meet Gazprom Neft’s requirements has been drafted and working groups have been set up to analyse the capabilities of both Russian and alternative markets. The Company has signed several strategic agreements with Russian companies for the key materials and equipment that are the most capital intensive. One of these areas is R&D into equipment for offshore projects.
The competitive selection process for contractors who supply materials and equipment and provide work and services for businesses within Gazprom Neft Group involves a comparative assessment of multiple bids in accordance with the requirements and standards of the Company’s internal regulations.
One of the most important selection criteria for suppliers and contractors is compliance with the Company’s health, safety, and the environment, occupational safety, and civil defence (HSE, OS, and CD) requirements.
The Company has implemented a standard in this area, the Procedure for Managing Contractors and Cooperative Arrangements in the Field of HSE, OS, and CD. All contractors who provide services to the Company sign an HSE, OS, and CD agreement that stipulates mandatory compliance with the Company's industrial and environmental safety standards.
Gazprom Neft procures an average of 95% of its annual essential material and equipment needs from the domestic market.
Gazprom Neft has established a Technological Partnerships and Import Substitution Department. The new unit’s core objectives are to systematically monitor the Russian products and materials market in order to identify opportunities to replace imported products with Russian substitutes. In order to stimulate the import substitution process and achieve technological independence, the Company plans to work closely with manufacturers to develop new products and materials which Gazprom Neft will use in its business. It is expected that the result of these technological partnerships will be the localization of R&D projects essential to the oil industry, as well as the production of various goods capable of competing effectively with foreign counterparts in Russian and foreign markets.