Gazprom Neft is to develop a digital procurement solution in conjunction with Gazprombank

Press-release Partnership

Gazprom Neft and Gazprombank have agreed on a roadmap for creating a joint venture to develop Russia’s first integrated supply-chain management platform. The agreement was signed by Alexander Dyukov, CEO and Chairman of the Management Board, Gazprom Neft, and Andrey Akimov, Chairman of the Management Board, Gazprombank, at the Gazprom Neft Moscow Refinery’s digital logistics facility.*

The new platform will operate through resources belonging to Gazprom Neft subsidiary Gazpromneft-Snabzheniye (Gazpromneft-Procurement) and ETP GPB — the Gazprombank electronic trading platform, the largest such platform in the Russian oil and gas industry. This system is designed to make logistics and procurement processes simple, transparent, and accessible, by integrating physical procurement processes in a virtual environment, allowing companies and industrial enterprises involved in the fuel and energy industry to improve their efficiency. The digital platform will facilitate collaboration between clients and contractors, and promote transparency and traceability in their activities.

The solution offered by this platform is a “digital twin” of the supply chain, built around the products and services offered by Gazpromneft-Snabzheniye and ETP GPB in simplifying and automating the parties’ procurement processes, logistics and financial settlements. The objective of this joint venture is to integrate the parties’ trading-platform, banking services, and procurement and logistics competencies, giving companies the opportunity to speed up the implementation of major projects as well as reducing the labour and other costs arising from commissioning a large number of contractors and suppliers, from misalignments or conflicts in their activities, and from the fragmentation of the procurement system, as a whole.

Clients will be supported by services at every stage, from formulating requirements to inventory management, allowing them to control their most critical business processes. For example, a client will be able to track manufacturing and production, the outcomes of regulatory oversight and inspections, and the supply of materials and equipment, while being able to see analytics on order fulfilment, thus reducing any risk of late delivery or poor-quality equipment. Suppliers, at the same time, will be able to post their product catalogue on the platform and use this as an additional sales channel.

In terms of banking services, clients will be offered banking support on contracts, while contractors will be offered bank guarantees. Factoring services will be built into the platform, in the interests of both parties.

“Gazprom Neft is actively pursuing its digital transformation, having set ourselves the objective of becoming the first digital oil company. We are implementing a large number of digital projects as part of this work, throughout the entire value chain — from geological prospecting to filling stations and fuel-customers’ mobile phones. There are hundreds of initiatives in various stages of development. And very often, solutions initially developed for ourselves are now, already, in high demand on the market. In which context, the various services offered by our Gazpromneft-Snabzheniye subsidiary are, already, helping facilitate high-quality procurement and supplies not just for us, but for a range of external clients. In combining our products and services through this joint venture with those of Gazpombank we will be able to offer the market a fully-fledged digital twin of the entire procurement process — from initial procurement planning to oversight and control, final physical deliveries, and inventory management.”
Alexander Dyukov
Alexander Dyukov Chairman of the Management Board, Gazprom Neft
“Gazprombank has a long-standing and successful history of financing the implementation of major investment projects, and is completely au fait with the needs of companies in the oil and gas sector. Added to which, the bank’s ongoing technological transformation has impacted all areas, including the transactions division. The electronic trading platform have had a strong role in the electronic procurement market, and a promising service model now demands the development of remote channels and IT systems. Together with our partners at Gazprom Neft we expect to be able to build, quite quickly, a unique procurement system offering a seamless customer experience, which can — and which will, of necessity — be rolled-out to other projects.”
Andrey Akimov Chairman of the Management Board, Gazprombank
Notes for editors

Gazprom Neft is a vertically integrated oil company primarily engaged in oil and gas exploration and production, refining, and the production and sale of petroleum products. Gazprom Neft’s corporate structure comprises more than 70 production, refining and sales subsidiaries throughout Russia, the CIS, and abroad.

Gazprom Neft is one of the world’s most significant public companies by proven liquid hydrocarbon reserves, and a global leader in its rapidity of reserves replacement. In terms of production and refining volumes it stands among the largest companies in Russia.

The company’s majority shareholder is Gazprom PJSC (95.68 percent), with the remaining shares in free circulation.

Gazprombank is one of the three largest banks in Russia, and one of the largest financial institutions in Central and Eastern Europe.

The bank provides a wide range of services to corporate and private clients, serving a number of the Russian economy’s key industries including gas, oil, nuclear, chemicals and petrochemicals, ferrous and nonferrous metallurgy, the electric power industry, engineering and metalworking, transport, construction, communications, agriculture, trade, and others.

Gazprombank’s retail business is focussed on offering advanced high-tech products and services. As at early 2020 the bank is servicing around five million individual customers, with a retail credit portfolio of more than RUB550 billion and a retail deposit portfolio of more than RUB480 billion.

ETP GPB, a subsidiary of Gazprombank, manages tenders for state-owned corporations, companies in which the state holds an interest, and government and commercial (private-sector) clients. According to data from the Ministry of Economic Development and the Ministry of Finance of the Russian Federation, it offers one of the highest-rated electronic platforms for conducting transactions under Federal Law No. 44-FZ and Federal Law No. 223-FZ. It is also a fully integrated banking platform, offering bank guarantees, letters of credit, factoring, and cost-control services.

ETP GPB offers a set of high-tech solutions designed to meet the needs of the most demanding customers. Its software package meets the highest security standards for open information systems (1G FSTEC RF and STO BR IBBS) and is not dependent on any imported software components.

The ETP GPB platform is compatible with key information systems including ERP, SRM, CRM, SAP, Oracle, “1C”, and zakupki.gov.ru.

The Moscow Refinery’s digital logistics space has been established through collaboration between two Gazprom Neft subsidiaries — the Gazprom Neft Moscow Refinery and Gazpromneft-Snabzheniye. By using the latest technologies and approaches in warehousing logistics the company has been able to optimise storage capacity, speed-up access to goods, eliminate any risk of errors and inventory discrepancies, minimise employee training costs and, ultimately, deliver a 30% saving on the total cost of warehousing operations. An automated cash-and-carry warehouse store, a “goods-to-person” elevator storage system, an automated pallet carrier, robotics, intuitive navigation technology, AR, wearable devices and more are all in operation at the site.