Contractor effective performance management system

Rosneft Company in its daily activity is dealing with huge number of contractors. Contractor is a company that is hired by Customer represented by Rosneft Oil Company in this case to perform certain operations in accordance with the concluded contract and for agreed payment. It is obvious that Customer is expecting the work to be performed at a certain quality level, safety level and on time. However we see in practice that for various reasons these expectations are not met. This has led to the necessity to develop a uniform system to evaluate quality of operations and contractor performance and decide on further interaction with this company. The Upstream Oil and Gas Production Department Operational Potential and Efficiency Division jointly subsidiaries has developed and implemented in the Company Contractor Effective Performance Management System (CEPM). Rosneft has received a tool allowing to compare external and internal contractors on a single scale without any reference to a region of activity. CEPM covers almost all main oilfield services: capital and current workover, hydraulic fracturing, coil tubing services, bottom-hole treatments, perforation and blasting operations, geophysical surveys of wells in cased boreholes, geophysical surveys of wells in open boreholes, tubing repair services, technological motor transport services. The purpose of CEPM is to ensure transparency of rating process, develop open system for contractor performance evaluation, and define clear interaction rules for industry partners at oilfield services market. Contractors are rated based on CEPM data. Rating process creates efficiency competition among contractors motivating them for high performance.

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