Activity Results of Tatneft's Electronic Trading Platform

January 24, 2013

The E-procurement mechanism implemented in the JSC TATNEFT has become an operational tool to ensure the effectiveness of procurement procedures and tenders and expand the range of suppliers. In 2012 more than 5,700 supplier companies were registered in the electronic trading system of the Company. 

The Logistics Department of the JSC TATNEFT carried out two-stage procurement procedures for a total of 8,778.8 million in 2012 (6,803 million rubles in 2011).

The first stage was a quotation request, while the second one was a price discount auction among the participants, who assessed the whole lot items. 865 auctions were successfully completed in the amount of 3,659.76 million rubles (761 procedures in 2011 for the amount of 2,490 million rubles). The savings from the original price amounted to 230.8 million rubles (96.3 million rubles in 2011). The increase in savings was achieved through the systematic work of the Logistics Department aimed at attracting manufacturers to participate in the electronic trading sessions, and as a result of the Company's expert groups visits to manufacturing companies.

In 2012, pursuing the objective of developing the electronic trading platform (ETP), the Company   actively involved third-party enterprises which used     the electronic marketplace for procurement of equipment and materials, including subsidiaries, service and independent oil companies. Over the past year, the Company's subsidiaries and oil service companies carried out 1,488 procurement procedures for the amount of 3,491.67 million rubles (603 procedures in 2011 in the amount of 2,082 million rubles). 262 procurement procedures in the amount of 267.8 million rubles were carried out with independent oil companies (251 million rubles in 2011).

The electronic platform has greatly accelerated tendering and provided for price transparency. All trading sessions are arranged in the online mode. Along with auctions for the acquisition of goods and materials the trades are arranged for the provision of services. This type of trading is actively used by service management companies.   The trade and procurement platform of the JSC TATNEFT has been also operating in English since 2012.