Baku, Azerbaijan, October 23. Azerbaijan’s State Oil Company (SOCAR) reaffirmed its commitment to supporting local suppliers and contributing to Azerbaijan’s economic development through its procurement strategy in 2023, as highlighted in its Sustainable Development Report, Trend reports.
In 2023, SOCAR’s total procurement costs amounted to 5.561 billion manat. Of this, 3.666 billion manat was allocated to the purchase of raw materials, while 1.896 billion manat went toward services. Significantly, SOCAR prioritized local suppliers, spending 2.876 billion manat on goods and services from domestic providers.
The report also includes a breakdown of procurement spending among SOCAR’s international subsidiaries. SOCAR Türkiye spent 82 percent of its procurement budget on local suppliers in 2023, while SOCAR Energy Georgia allocated 97 percent. Meanwhile, SOCAR Energy Ukraine and SOCAR Energy Switzerland spent 99 percent and 81 percent, respectively, on local procurement.
Key directions of procurement in 2023 for SOCAR included the purchase of raw materials (52 percent), material reserves (41 percent), and the purchase and improvement of key assets (6 percent). In terms of services, the largest portion (55 percent) went to capital repairs of key assets, with other notable allocations for transportation (10 percent) and operational activities (26 percent).
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