Informaciâ i Innovacii (Mar 2018)
Organization of internal financial control in the oil and gas industry of Azerbaijan
Abstract
Relevance. Oil fields of Azerbaijan on land are exploited for more than a century and at sea - about 70 years. In recent years, with a decline in oil production, the cost of one ton has a growth trend. As part of the cost of labor costs, non-production costs, as well as administrative and management costs are increasing from year to year. If there is an audit department in the SOCAR system, the issues of irrational cost management remain unresolved. In the system of the specified company there are no controlling services. Most OGPDs (Oil and Gas Production Department) on land work at a loss or low profit. In this case, the rational organization of internal financial control is very important. It should be clarified which principles and methods of financial control should be given an advantage, identify the main areas of financial control at oil and gas producing enterprises. Goal. Assess the state of the organization of internal financial control in the oil and gas industry of Azerbaijan, identify the relevant reserves and propose specific recommendations for their rational use. Methods. The methods of the economic-statistical grouping, the graphic method of comparative analysis were used in the article. Results. The reasons for the growth in production costs, the factors influencing the process of creating the system of internal financial control are revealed; the main functions, tasks and principles in the oil and gas company are identified. Conclusions. For the rational organization of internal control in the oil and gas industry of Azerbaijan, it is necessary to carry out control over the levels and functions of management, organize controlling services at all enterprises, and systematically carry out current and subsequent financial control over operations.
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