OREANDA-NEWS. May 20, 2014. The electronic trading system for the procurement of material and technical resources for the enterprises of TATNEFT Group of Companies continues to ensure the effectiveness of procurement procedures and tenders and provides for expanding the base of suppliers. 9,849 enterprises were registered at the electronic trading platform (ETP) of the Company in the first quarter of 2014.

The Logistics Department of JSC TATNEFT carried out 608 two-stage procurement procedures during the period of January-May 2014 totaling 3,131 million rubles without VAT.
The purchases of serial products were carried out on the basis of long-term contracts with the manufacturers of equipment and materials. In the framework of this activity the Logistics Department specialists performed tender procedures for 90 lots during this period for the amount of 1,551.6 million rubles. "Tatneftesnab" Administration entered long-term contracts with 64 counterparties involving over 5,500 commodity items. The volume of sales under the long-term contracts totaled 183 million rubles.

Trading at the ETP of JSC TATNEFT is performed in stages: a call for bids at the first stage and the price reduction auction among the participants who valued the lot at the second stage. 444 auctions amounting to 1,801.8 million rubles were successfully completed during the first quarter of this year. Saving on the price determined at the first stage amounted to 126 million rubles.

To decrease the prices offered by the potential suppliers of the ETP the tender commission practice reverse auctions in person with the manufacturers' management, as well as correspondence negotiations. As a result, the prices were further reduced on average by 10 percent.

The resources of the TATNEFT's electronic trading platform are actively used to attract affiliates, suppliers, contractors and independent oil companies. From January to May of this year the Company's subsidiaries and oil service companies held 976 procurement procedures amounting to 2,119.1 million rubles. Independent oil companies implemented 38 procurement procedures for the amount of 99.2 million rubles.

The trade and procurement platform functionality is continuously expanding and there was a unified information database formed on its basis to maintain the suppliers' history.
The qualitatively organized TATNEFT's electronic procurement system increases the efficiency of the targeted funds spending and ensures transparency in procurement processes. In addition, the electronic trading platform improves the Company's operating cost optimization.