Ukrnafta joins ProZorro

Ukrnafta has joined the ProZorro system via online platform zakupki.prom.ua and placed first tenders in mid-October. As per the terms of the 4 tenders Ukrnafta plans to purchase lubricants and tubular goods for the total estimated amount of 21 mln UAH.

The use of ProZorro is one of the elements of the reform of the procurement system at Ukrnafta. Other units of the company are starting to use this system and they are expected to place first tenders at the end of October. In order to facilitate the process 12 employees from Ukrnafta’s procurement team were trained to work with ProZorro.

Robert Whalley, Executive Vice President for Technology & Services:

“ProZorro fits the logic of our reform of the purchasing system at Ukrnafta, i.e. to generate savings and ensure transparency of the tenders. We have just begun using the system and announced the first tenders and we will need to evaluate the results. We do not just want to get a lower price on materials and equipment, ensuring quality and cutting total cost of ownership are just as important for us.’

In early October Ukrnafta has engaged with Crown Agents, a global expert in institutional development and supply chain performance, to overhaul Ukrnafta’s procurement processes  and supply chain system using best practices from similar projects implemented internationally and in Ukraine.

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, 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 ProZorro

ProZorro is public e-procurement system allowing the participants to announce and participate in tenders in a transparent manner. The system was created in 2015, with Transparency International Ukraine guaranteeing the transparency of development and operations of the system. The use of ProZorro became mandatory for all government entities in Ukraine since August 1, 2016. According to expert estimates, use of ProZorro has generated 5 bn UAH in savings for the buyers since the system’s launch.

 

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