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COOPERATION WITH CONTRACTORS AND SUPPLIERS

 

NCSP Group works with many contractors who perform various types of work and provide various services in the course of the Group’s operations and as it implements investment projects.

 

The Group works with these companies on the basis of mutually beneficial cooperation.

 

The Group has developed a system to standardize its approach to the organization of projects, selection of contractors, and the preparation and signing of contracts with them.

 

The Group holds tenders for construction, engineering, planning and surveying, and supply contracts for materials and equipment. The tenders define the methods and procedures for selecting a contractor depending on the nature of the work or services and the size of the contract.

 

For contracts exceeding 3 million rubles the Tender Committee is joined in the tender proceedings by the experts appointed by the Board of Directors, together with specialists from the Internal Control Service and the Economics Department, who review the financial standing of the bidding companies. An outside organization may also be contracted to provide independent technical oversight.

 

ENVIRONMENTAL PROTECTION

 

The Group is committed to environmental protection and minimizing the environmental

impact of its operations. It observes ISO 14001:2004 standards as part of its commitment to environmentally friendly operations.

 

The Group regularly performs measures to maintain the environmental balance in the waters of the Novorossiysk Port and around the city of Novorossiysk and works to reduce the negative impact of its operations.

 

The Group has an environmental management system in place and has set up a production monitoring department that includes an environmental service. Specialized laboratories regularly perform tests to monitor emissions and the release of pollutants. The labs take seasonal air and water samples and monitor noise pollution.

 

Due to the nature of NCSP Group operations, emergencies could arise so the Group works with specialized state services to hold training exercises to coordinate joint emergency response for cleanup and rescue operations in an effort to mitigate environmental risks.

 

Group managers and specialists are trained and certified in environmental safety.

 

Modernizing facilities is an integral part of the Group’s environmental policy.

 

In 2009 PJSC NCSP commissioned a new oil and oil products control and metering system that will ensure greater environmental safety.

 

The Group spent $2.1 million* on environmental protection in 2009.