Independent audit on crude procurement in INA

Zagreb, 26 March 2014- INA Supervisory Board held a session on which an independent audit on crude oil procurement practices (i.e. crude oil procurement in 2012 and 2013) was presented. The audit was carried out by an internationally recognized independent consultancy firm from December 2013 until mid-February 2014.

In the audited period INA Refineries have been supplied on time with crude oil, in order to ensure the on-going operation of refining assets. Having thoroughly audited the INA crude procurement process the independent consultant concludes:

  • The current INA crude procurement process is clearly documented and the consultancy found no evidence of deviation from the procedure.
  • The INA organizational structure which supports crude procurement is well organized, roles and responsibilities are clearly defined and the individuals working within those teams appear to understand their role.
  • The consultancy found 100% compliance with regards to the INA LDA requirements for crude selection and approval.
  • The consultancy found 100% compliance with the Janaf contract with regards to INA’s crude quality changes and volume losses through the Janaf import terminal.
  • INA is paying market value for its crude imports and the decision to replace term contract volumes with tender purchases in 2013 has been advantageous to INA.
  • INA is paying market rate for its REB import shipping costs.
  • INA already has industry best practice process for LP Set-up.
  • Most of INA’s reconciliation Performance Monitoring process is best practice.

In 2012 and 2013 INA has almost exclusively been purchasing from the Mediterranean market and only 25,000 tonnes of crude has been purchase from MOL. This was in July 2012 and represents less than 1% of crude supply in that year.Documents