2009 Annual Report - Rompetrol.com

Creation of the CAPEX Department
Created at the end of 2009, the Capital Investments &
Development Department will conduct activities related to Capex
governance, reporting and monitoring at the Group level, in order
to provide coherent information within entities and ultimately to
allow effective decisions upon the investments developed while
ensuring transparency in the carried out activities and improving
budgetary control.
These will include, among others, activities regarding:
• Development of a common standardized Capex procedure for all
Group entities, consisting of documents, workflows, etc. in order
to assure a common frame for investment initiation, approval and
implementation within the Rompetrol Group.
• Integration of all entities Capex budget at the group level.
• Ensuring the implementation, monitoring and Capex reporting in
a unitary manner for all Group entities, through “Capex Report”,
which will improve the investment expense analysis as compared
to the budget allotted to separate projects.
• Supporting Group entities to manage projects’ documents,
financial models, feasibility studies, follow-ups and other
documents required for approval by the Capex procedure.
• Supervising and working with Group entities in the process of
acquisition for technical services, licenses, major equipments,
chemicals and catalysts related to investment programs.
• Obtaining finance, both refundable and nonrefundable, for
Group’s investment projects.
Internal audit
Internal auditors’ focus on risks and controls is vital to sound
governance process and to sound financial reporting. The internal
audit function is meant to offer shareholders and executive
managers an independent assessment of:
• the effectiveness and efficiency of the business processes based
on which the business units and the individual legal entities of
Rompetrol Group are functioning;
• the way in which the company’s assets are protected (fixed assets/
capital investments, socks, claims, liquidities);
• the credibility of figures (such as performance indicators,
financial statements) derived from the operational and financial
transactions of the Rompetrol Group.
The internal audit function reports to the executive manager and
to the Audit Committee of the Board of Directors of The Rompetrol
Group.
Planning and Performance Management
In terms of Planning and Performance Management, activities
improved and developed in the past year were the following:
• Group Financial Outlook (GFO) – monthly analyse of the Group
results versus last year results and versus budget
• Implemented Backcasting process which has two main targets :
• if right feedstock was processed previous month in the
Refinery
• if run rate of the previous month was the optimum
• Crude selection process – gives us the optimum crude slate that we
should use in the Refinery, this way Trading knows well in advance
what crude to buy and when
• Key Performance Indicators (KPI) process – PPM role is to :
• Make sure that KPI’s on all Business Units are aligned
• Compute and analyse KPI’s for all Corporate functions
• Set the deadlines for the Business Units in terms of KPI’s
computation
• Develop standard reporting processes for Trade House
KazMunayGas, The Rompetrol Group’s shareholder – there are
monthly, quarterly and yearly reports
• Mass Balance process – it gives us the forward view of the stocks in
the The Rompetrol Group; this way can be check if they are in the
limits of target stocks approved by Top Management
• Further development of the Three Months Operating Plan (MOP
3M)
• Improvement of Group Daily Report Oil & Gas – scope is to give us
operational and financial data at the Group level on a daily basis;
this way Top Management will have a clear view well in advance of
the monthly results
• Implemented the Reforecast process – once per year it is done a
Budget Reforecast for the current year.
2009 Annual Report 57