OREANDA-NEWS. July 23, 2014. The electronic trading system for procurement of material and technical resources for TATNEFT Group of Companies continues to ensure the effectiveness of procurement procedures, contests and allows broadening the range of suppliers.

There were 10,000 supplier companies registered at the electronic trading platform (ETP) of the Company during the first half of 2014.

The Logistics Department of JSC TATNEFT (UMTO) conducted 826 two-stage procurement procedures totaling RUB 5,381 million excluding VAT for six months of this year.

Trading at the JSC TATNEFT's ETP is implemented in stages: the first stage includes a request for quotations, while the second stage is a Dutch auction among the participants who have valued the whole lot. During half a year period, 576 auctions for the total amount of RUB 2,914 million were successfully conducted. Savings with regard to the price defined at the first stage amounted to RUB 327 million.

The TATNEFT's electronic trading platform resources are actively used to attract affiliates, service, contracting and independent oil companies. The Company's subsidiaries and oil service companies conducted 1,462 procurement procedures for   RUB 3,120 million during the above mentioned period. Independent oil companies performed 19 procurement procedures for RUB 116 million.

Purchasing of serial products is carried out by the Company on the basis of long-term contracts with manufacturers of equipment and materials.

The E-procurement system of JSC TATNEFT increases the efficiency of targeted use of resources and ensures procurement operations transparency.