SOCAR cuts expenses

/By AzerNews/

By Amina Nazarli

Given crude oil slipping below $40 per barrel this week and further depression of world currencies, Azerbaijan’s state energy company SOCAR has identified a number of measures aimed to preserve financial stability and optimize the company's expenses

The corresponding decree was signed by the head of the state-owned company Rovnag Abdullayev, the company reported on December 15.

SOCAR has decided to transfer the activities of most representative offices of the company abroad to the related structures on a voluntary basis starting from 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.

To improve the risk management system, the structural units have to map of the risks of large-scale investment projects and the list of hazardous production facilities.

“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 company’s structural divisions instructed to tighten control over the procurement of goods, work and services, ensuring continuous production processes in the fields of production, transportation and processing of oil and gas.

Azerbaijan's energy giant SOCAR is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate, marketing petroleum and petrochemical products in the domestic and international markets, and supplying natural gas to industry and the public in Azerbaijan.