Details added (first version posted on 15:01)
Baku, Azerbaijan, Dec. 15
By Maksim Tsurkov - Trend:
SOCAR (State Oil Company of Azerbaijan Republic) has identified a number of measures aimed to preserve financial stability and optimize the company's expenses due to the prolonged fall in oil prices, the company said Dec.15.
The corresponding decree was signed by the head of the state-owned company Rovnag Abdullayev.
In particular, SOCAR has decided to transfer the activities of most representative offices of the company abroad to the related structures on a voluntary basis since January 1, 2016.
"The main task is to review the estimate of revenues and expenditures, the number of departments and staff units of structures that are part of SOCA without prejudice to their technological activities, allocation of financial resources to the areas that have high profitability and require less money," said the message.
In order to improve the risk management system, the respective structural units in the company were instructed to draw a map of risks of large-scale investment projects and a list of hazardous production facilities, which are advisable to be insured.
"SOCAR will also take measures to restrict the allocation of funds for social projects, sponsorship and charity activities, financial assistance, reduce the costs for transportation, communication and office supplies, as well as give up unnecessary costs," said the message.
SOCAR will limit the organization and financing of exhibitions, conferences, symposia, seminars, workshops and other similar events until a more favorable situation with oil prices emerges and will also strengthen control over the timing of the foreign trips and composition of travelers.
"The structural units of the company were instructed to strengthen control over the procurement of goods, work and services, which ensure continuous production processes in the fields of production, transportation and processing of oil and gas," said the message.
Also, profound changes are provided in ensuring the operation of SOCAR representative offices starting from January 1, 2016.
"In order to reduce the existing costs in this area to zero, activities of most offices of the company will be transferred to its other structures on a voluntary basis," the message said.
The document also reflects measures to reduce production losses and expenses when purchasing goods and services from enterprises and improvement of procedures to enhance efficiency of procurement operations.