TNK-BP Holds a Central Supplier and Contractor Interaction Council meeting in Moscow

TNK-BP held a meeting of its Central Supplier and Contractor Interaction Council. Over 20 major TNK-BP contractors from the Central Federal District participated in the event.
TNK-BP is consistently raising the efficiency of its contracting system by improving its transparency and the mechanism of feedback with partners. The Company is constantly striving for standardization of contract terms and is planning a transition to long-term partnership with contractors beginning from 2012.
“In August, the Company is going to approve the procedure and criteria for assigning the permanent partner status, which offers a number of important economic and reputation benefits,” said Alexander Nesterov, Chairman of the Central Supplier and Contractor Interaction Council and Vice President, Marketing of TNK-BP.
Andrey Kozlov, Vice President of TNK-BP and Chairman of the Central Conflict Resolution Commission, informed that “the conflict resolution commissions at regional councils have so far considered 34 complaints from suppliers disputing the results of their pre-qualification or the results of tenders for provision of services and equipment to TNK-BP enterprises,” of which 16 complaints were resolved in the suppliers’ favor.
TNK-BP is a major purchaser of Russian goods and services with an annual procurement budget of approximately 180 bln rubles. The Company adheres to the best international business conduct standards, takes consistent measures against corruption and unfair competition, and requires the same approach from its suppliers and contractors.
TNK-BP is at present selling products from all its refineries over Russian commodity exchanges, including from Lisichansk (LINIK, Ukraine). Meanwhile, the company sells its light oil products primarily to the European part of Russia.
TNK-BP is Russia’s third largest oil company, 50% held by BP and 50% held by the AAR Consortium (Alfa Group, Access Industries, and Renova). TNK-BP also owns close to 50% of another Russian oil and gas company, Slavneft. TNK-BP accounts for approximately 16% of Russia’s production (including its share of Slavneft). SEC proved reserves (life of field basis) were 8.794 billion boe as of December 31, 2010.