Baku. 19 January. REPORT.AZ/ The State Oil Company of Azerbaijan (
“Guided by President of Azerbaijan
It was noted that corporate standards as well as rules and regulations on sustainable development, crackdown on corruption, increased transparency, risk management, procurement operations management and other spheres were applied at SOCAR. The company mentioned that projects aimed at raising efficiency and effectiveness of operations as well as cost optimization at SOCAR’s main manufacturing plants were launched in 2012 jointly with the one of the world’s leading auditing companies - Ernst&Young (EY). Moreover, a number of structures incorporated by SOCAR shifted from three to two-tier management system and other measures to reduce cost were taken. The main goal of these projects is to identify issues with business processes at the enterprises, increase effectiveness and efficiency of operations in the areas of production, technology, personnel, procurement, transport and contract works, and cost reduction.
"These measures resulted in an efficiency increase which saved over AZN 128.7 mln annually. In addition, those steps achieved companywide personnel performance boost by 27%. In the beginning of 2016, SOCAR, jointly with EY, launched a project on stabilization of material resources designed to ensure the timely and flawless satisfaction of demand for material resources, efficient use of circulating capital, and to determine the optimal level of the inventory. The project of Transformation of Human Resource Management processes has been implemented in SOCAR since 2015. The best international practices in planning workforce hiring and adaptation, training and development, career promotion, employee incentives and other processes were applied through SAP’s ERP system as part of this project. In 2018, SOCAR joined the International Association of Oil & Gas Producers (IOGP) and started its vigorous activity within this international body with the goal of developing partnership with international oil and gas companies, remaining in compliance with the production standards agreed between the parties and taking part in determination of these standards. The reforms carried out by SOCAR for it to become a more influential global company are regularly inspected by the biggest rating companies. As a result, in 2018 Ernst & Young rated SOCAR as a ‘strong company’ on corporate management system."