Ukrnafta to reform procurement system with help from Crown Agents

Ukrnafta is working with Crown Agents, a global expert in institutional development and supply chain performance, and it’s international team to reform Ukrnafta’s procurement processes  and supply chain system. Within the scope of the 2-month consultancy project the Crown Agents’ experts will work with the new Ukrnafta’s supply chain team to prepare a set of recommendations for re-design of the entire supply chain. The recommendations will draw on the best practices from similar projects implemented internationally and in Ukraine in the private and public sectors. The project is supported by the Government of the United Kingdom through its Good Governance Fund managed by DFID and PwC.

 Robert Whalley, Executive Vice President for Technology & Services:

‘Modernizing Ukrnafta’s supply chain is an absolute priority for the new management team. We need to cut bureaucracy, build in accountability controls, and introduce a total-cost-of-ownership approach to our procurement. The reformed procurement function should support our short-term business objective to boost oil production from existing wells and a longer-term goal of doubling Ukrnafta’s output within the next 10 years’.

Supply chain modernization is one of the top-10 transformation projects initiated by the new management team as part of the turnaround plan for Ukrnafta. The plan envisages transformation of the company’s structure and business processes, expansion of brownfield oil production through investment in ESP and other technologies, and securing the shareholders’ support for the management’s out-of-court sanation proposal.

Ukrnafta is a leading player in Ukraine’s oil industry. Currently, the company’s ability to invest is restricted as the out-of-court sanation proposal put forth by the management team is pending approval by Ukrnafta’s supervisory board and key shareholders. The out-of-court sanation proposal will allow Ukrnafta to pay off ‘legacy’ arrears before the state, but also commence implementation of a long-term strategy to modernize its assets and increase output of oil and gas.

 About Crown Agents

Crown Agents is an international company, partnering with governments, international organizations and the private sector in the following areas: health systems strengthening, supply chain management, governance, economic development and humanitarian action. Crown Agents helps countries to respond to natural and manmade crises, strengthen health systems, improve citizens' access to healthcare, develop the economy, and improve financial management. Crown Agents has more than 185 years of experience around the world and does business in more than 100 countries on 4 continents.

In Ukraine, Crown Agents has more than 10 years’ experience of the implementation of projects in the areas of procurement, financial management and economic development.

 

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