One of the largest SOCAR business units to pass on international standards of financial accountability since 1 January 2008

Oil&Gas Materials 16 December 2005 18:51 (UTC +04:00)

The Cabinet of Ministers of Azerbaijan issued an edict on inclusion of the Department on Marketing and Economic Operations (DMEO) under the State Oil Company of Azerbaijan (SOCAR) into the list of the companies, which are to turn to the international standards of the financial accountability from 1 January 2008.

This year the international company Ernst &Young became winner of the SOCAR DMEO tender for conducting the preliminary audit of the DMEO balance and analyses and optimization of the DMEO commercial functions, SOCAR told Trend.

В"Ernst &Young presented the final report, very good and proper recommendations and adjustments of the DMEO business functions have been received. Good analyses have been made and proposals on optimization of the DMEO activities in oil products export, import of goods, raw and materials, marketing inside the country have been given”, SOCAR said. Along with this, recommendations on SOCAR DMEO structural changing have been also given.

SOCAR noted, for transition to the new system from 1 January 2008 Ernst &Young recommended to conduct in 2006 evaluation of SOCAR DMEO main assets by the recognized assessors and audit of the preliminary balance report for 31 December 2005, including the results of the main assets assessment.

According to the SOCAR spokesman, DMEO has announced two tenders for selection of the main assets evaluator and the selection of the auditor of the preliminary balance report for 31 December 2005. The last bid will be closed the next week.

В"Till the end of 2005 selection of the evaluator will take place. It will be the Azerbaijani company, as foreign companies make this job for very high prices.”, SOCAR said.

Today DMEO is dealing with SOCAR oil and profit batches of crude export. Along with this, DMEO is engaged in export of oil products produced at the Heydar Aliyev Oil Refinery (former Azerneftyanacag). Among the export items are gasoline, diesel fuel, jet fuel and etc.