TNK Launches Electronic Wholesale Oil Product Trading System

In the News:

The Russia Journal

Moscow — Russia's oil major Tyumen Oil Company (TNK) has announced the launch of the electronic wholesale oil product trading system, the company's Vice President and Head of Information and Telecommunications Alexander Blokh told a press conference Wednesday.

The system will help increase the company's sales and make some of its departments work more effectively. It will also boost clients' confidence in the company, he said.

In 2003, the company plans for the electronic trading system to account for about 3% of its total oil product sales, he said.

The company expects to sell 15% of its oil products output via the system by 2005.

Trading via the electronic system began May 19.

Sales of gasoline using the system will be limited, as the company has a wide retail and dealer network for gasoline sales, he said.

The project cost TNK about U.S. $500,000. The system was developed by EPAM Systems and Novell, chosen from more than 50 companies in a tender.

The system is meant for wholesale trade but later may be used for retail trade as well, Blokh said without elaborating.