Holding of tenders

LUKOIL’s procurement procedure seeks to create equal competitive conditions for all participants (applicants), and to ensure the impartial and efficient selection of suppliers and contractors with the best price-quality ratio. Participation in tenders promotes technological and innovative development of Russian companies.

The procurement activities of the LUKOIL Group are regulated by local regulatory acts in accordance with the legislation of the Russian Federation. The regulative framework of procurement is routinely updated, taking into account the experience gained by LUKOIL and other major Russian companies, to ensure compliance with Russian legislation.

Goods, work and services are mainly procured via open tenders with obligatory open competitive bidding on the subject of the tender. Information on bidding terms and procedures, requirements for applicants, and the list of required documents are available on the corporate website of PJSC LUKOIL and its subsidiaries in the Tender section.

The selection of goods, work and service suppliers is made in accordance with the Regulations on Holding Tenders for the Selection of Suppliers and Contractors by LUKOIL Group Entities. PJSC LUKOIL and its subsidiaries have permanently functioning bodies, which are authorized to select winning bids.

Bids are assessed by highly qualified experts and specialists. The current local regulations of the LUKOIL Group provide for a separate assessment of the technical and commercial parts of tender proposals. In assessing the technical part, quantitative and qualitative indicators are taken into account and are used to evaluate the capacity of an applicant to supply the goods, work or services stipulated in the tender. Price is assessed by experts based on competitive open bidding. The permanently functioning bodies of PJSC LUKOIL and its subsidiaries select a winner based on a final score, which is the sum of technical and commercial scores.

PJSC LUKOIL, and the subsidiaries in the Upstream Business Segment and the Oil Processing in Russia business sector use an electronic tender system. The advantages of the system are the minimization of paper documentation and the convenience and efficiency of sending and receiving the required documents and proposals. Bidding can be conducted electronically in real-time.

A contract is drawn up with the winner of the tender, which, subject to Russian legislation, serves as the basis for further agreements between both parties.

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