Procurement Principles

Procurement's objective is to deliver superior services by consistently meeting business expectations, achieving the lowest total cost for commodities procured, contributing to corporate profitability and helping the business gain competitive advantage. To achieve these expectations will require alignment of our goals and strategies with those of the business functions and advocacy of Procurement's principles. Business will be conducted in a responsible manner, whilst working to promote a team environment and complying with all Company Policies. Communication with clients will be open, timely and complete. Suppliers selected to participate in the Company's activities will be chosen on the basis that they are competitive, reputable, capable and committed to meeting the Company's expectations.


  1. Recognising the opportunity to maximise its values to the business, Procurement is responsible for the ''Purchase to Pay'' process and will efficiently and effectively execute procurement and payables activities.
  2. Procurement activities are to be conducted or developed to achieve the lowest Total System Cost or highest profit contribution. Total cost evaluation will not only be based on price but will include, but not limited to , safety considerations, capability and consistency, financial stability, internal and external costs, commercial terms, delivery schedules, inventory implications and after - sales service.
  3. Procurement Professionals will determine the optimum procurement approach and Clients will be involved in the process.

Health, Safety And Environment

  1. Activities will be conducted in a safe, healthy and environmentally responsible manner. Any activity that cannot meet these expectations will not be undertaken.
  2. Procurement will work with our Business Clients to ensure that third party materials and services comply with Oilibya Safety, Health and Environmental policies, all applicable regulations and Client requirements.

Personal Conduct

  1. Personnel will conform to Company Policies with emphasis on Conflict of Interest and Business Ethics. In particular, employees must not accept gifts of no more than nominal value, free services or loans, or extravagant entertainment from suppliers or potential suppliers; and friendship or other personal considerations must not influence procurement decisions.
  2. Procurement will establish processes and training to allow individuals to reach their potential and work to their capability. Personnel will be both empowered and accountable to meet the expectations of the position that they hold.
  3. Procurement activities present an exposure to Illegal Information Brokering. This is a situation where individuals obtain and sell Company information with the aim of corrupting or manipulating procurement activities.

Supplier Relationship

  1. Suppliers will be evaluated to establish a relationship to best meet the Company's requirements. Where a supplier cannot meet expectations, safeguards are in place to protect the Company's operations and assets.
  2. For suppliers of critical materials or services, a supplier evaluation and performance monitoring process will be maintained. Performance results are to be shared with the suppliers and plans established to remedy any unsatisfactory situations.
  3. Suppliers will be treated in an equitable manner.
  4. Where procurement can potentially occur with suppliers that are also customers, award decisions must be based solely on bid evaluation criteria and must not be influenced by the existing customer relationship.
  5. Procurement and operating organisation will ensure that neither the Company's rights nor a supplier's obligations under an agreement are waived without appropriate reviews/approval, since to do so could make the selection process inequitable to other bidders.


  1. Tenders and requests for quotation will be sent out to qualified bidders as and when required in line with the company’s policies. The tenders will clearly indicate the materials and/or services being procured and will show the scope of work (specifications) and the supplier's response requirements. The request for quotation will normally include a transmittal letter, bidder instructions, proposal form and depending on the value of the contract, a proposed standard commercial agreement.
  2. In tenders and requests for quotations which are highly sensitive a signed confidentiality agreement will be obtained from bidders before the request is sent out.
  3. Bidders will be given sufficient time to develop their bids, including any bids they must get from subcontractors.
  4. The company is not bound to accept the lowest bid or any other quote and reserves the right to further negotiate all or part of the quotation and also reserves the right to award any business or award partially.


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