SOCAR to Launch System of Enterprise Management Based on SAP ERP

Baku / 07.10.15 / The State Oil Company of Azerbaijan (SOCAR), which is among the 50 largest oil companies in the world, with the support of the firm PwC, one of the leaders in the world of consulting services, as well as the company SAP, one of the market leaders in enterprise applications, today announced the launch of the production operation of the system of business management based on SAP ERP.

The industrial enterprise for exploration and development of oil and gas fields has become the largest enterprise of SOCAR to implement SAP ERP.

SAP ERP allows you to reduce the share of manual operations, standardize business processes and accelerate the implementation of a number of problems, also by reducing the influence of the human factor. In the next few months, the new functionality of the system will be available in other facilities of the company.

To increase the pace of development SOCAR actively uses innovative IT solutions: since 2008, the company provides a large-scale program of business transformation and business process automation on the basis of decisions SAP, in which there are automated processes of financial and management activities, external logistics and personnel management, reporting and workflow.

Using SAP solutions has been the basis for a new level of transparency and efficiency of business processes in SOCAR, thereby creating favorable conditions for business development, including with the help of foreign investors, as well as major projects of strategic importance for the whole country, said Suleyman Gasimov, Vice-president of SOCAR on economic issues.

Among the key results of the implementation of the SAP management SOCAR especially emphasizes the implementation of international financial reporting standards, the development of best-in-class industry standards for the construction of key business processes, covering different areas of the company. Thanks to the business transformation, SOCAR has already received a rating «BBB- / stable», «Ba1 / stable" and «BB + / Positive" from such leading world companies as Fitch Ratings, Moody's and Standard and Poor's.

SAP solutions are used by the world's largest oil and gas companies, including Total, BP, and Statoil. For SAP, these companies are strategically important clients, and for SOCAR they are business partners. Work in a single ecosystem based on the best international practices significantly increases the efficiency of cooperation and simplifies the launching of joint projects, said Vyacheslav Orekhov, CEO of SAP CIS.

In accordance with the decree of the President of Azerbaijan, all the state-owned enterprises since 2007 have been moving to international accounting standards. The conducted large-scale project has been an important milestone in the transformation of the holding company and in the realization of one of the most strategically important areas, voiced by President Ilham Aliyev at the beginning of this year: increase in the manageability of public companies, according to the press release from SAP. -0-