Key Performance Indicators (KPIs)
Total number of
local suppliers engaged (#)
Procurement spending on
local suppliers (millions – USD)
Percentage of procurement
spending on local suppliers (%)
spending (millions – USD)
Crescent Petroleum requires all contractors and their employees, whether local or international, to participate in a social performance briefing as a prerequisite for commencing work. In addition, we include requirements related to business ethics and anti-corruption, among other things, in all procurement contracts. We are also in the process of formulating procurement related performance indicators for 2022.
Our procurement policy covers a variety of topics, including:
- Compliance with local and international laws
- QHSSE Policy & Social Performance Standards
- Delegation of Authority
- Code of Ethics and Code of Conduct
- Protection of Confidential Information
- Continuous Improvement
- Procurement and Contracting Strategies
- Supplier Code of Conduct
In the more than 13 years since production operations commenced in the Kurdistan of Iraq in 2008, Pearl Petroleum has invested significant resources into the local community, and into developing a local workforce and supply chain. When coupled with high staff retention and repeated utilization of local contractors, our efforts have increased the capacity of local talent, cultivated a high-performing operational team, increased business continuity, and nurtured a culture of safety.
The KRG’s Ministry of Natural Resources (MNR) has explicit requirements regarding local contracting, which is regulated through an MNR portal in which all contractors and procurement orders must be registered and reported. To find qualified local contractors, Pearl Petroleum utilizes the MNR’s list of approved vendors and narrows the search based on the specific skillsets required for each project.
Pearl Petroleum then evaluates the suppliers based on their technical, commercial, and local content requirements. Any supplier not on the MNR pre-approved vendor list must be evaluated and approved by the MNR before they can work with us.
The MNR also has specific requirements for procurement of goods and services from Community Centered Contractors (3Cs), which are defined as companies in proximity to the asset and are eligible to receive a maximum of $250,000 per year in business. By the end of 2021, Pearl Petroleum had contracted nearly 30 3Cs, with an estimated local spend forecasted at $3-$4 million per year in the next few years, compared to $1 million per year in the past.