Procurement for the Upstream

TNK-BP is seeking a balance between centralized procurement and procurement by regional units. Responsibility for procurement is allocated the following way: critical and high value services and materials are procured centrally (List 1) while less critical and cheaper items (Lists 2 and 3) are procured by the regions independently.

All Materials and Services are classified into 3 categories (three Lists):

More detail about Services Lists:

List 1 Costs of contractors or suppliers that have maximum effect on operations. Usually, high value and/or criticality. This category of services costs is strategically important for our operation and is related to interregional/international contractor markets.

List 2 Costs of contractors or suppliers that have average effect on operations and are usually of average importance. This category of costs is linked, as a rule, to regional markets of contractors and services required by several subsidiaries in a region.

List 3 Costs of contractors or suppliers that have average to low effect on operations. Usually classified as current purchases having average effect on HSE and operations. Contractor market is locally-bound and organized at the regional level in the subsidiaries.

More detail about Materials Lists:

List 1 List 1 Materials are high value and/or criticality. This category of costs is strategically important for our operation and is related to interregional/international materials markets.

List 2 Costs of List 2 materials have average effect on operations and average value and/or criticality. As a rule, this category of costs is related to regional markets of materials.

List 3 Costs of List 3 materials are classified at current purchases. This category usually comprises average to low costs. Contractor market is locally-bound and organized at the regional level in the subsidiaries.

For deal classification by type please see the Services Catalogue.

For Materials classification by List please see the Materials Catalogue.