SMS Oil & Gas Limited

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Marketplace – Policy & Aims

We are committed to:

Ø       Pursuing a consistent strategy based on organic growth from mining business

Ø       Maintaining the highest standards of corporate governance

Ø       Serving the needs of our customers through long-term relationships

Ø       Maintaining high standards of service delivery

Ø       Conducting dealings with customers and suppliers in a transparent and equitable manner

Ø       Ensuring payments to suppliers are made in accordance with agreed terms

Ø       Ensuring payments to suppliers are made in accordance with agreed terms

Ø       Prohibiting bribes and favours in business dealings.

Customers

We recognise that meeting our customers’ needs is what will make us one of the UK’s most profitable niche market traders.  Our strategy of concentrating on organic growth from existing and new operations also means that our future success is linked intrinsically to our ability to identify and satisfy the present and future needs of our customers.

We aim to work in long-term partnerships and strive to ensure that the standard of our service is consistently high for both short- and long term customers and throughout the length of any contract.  We will maintain a regular dialogue with our customers in order to understand and plan for the ongoing requirements of their needs and to keep them informed of developments within our business.  It is our policy to ensure that any product-delivery issue is resolved promptly. Our customers require products with long-term economic lifespan to secure their investments and, as a result, we will be able to achieve long-term commitments from them, which will enable us to make major investments in creating our future assets.  We conduct our customer relationships in an open and equitable way and will clearly communicated our own targeted minimum internal rate of return on investment of 15 per cent to all stakeholders.  This approach will benefit our customers by giving them the security of knowing that the products they need are available to them at a very reasonable cost and benefits our financial stakeholders by allowing us to grow our business in a relatively low risk way and providing visibility of future revenues.

 

Suppliers

The effective and efficient sourcing of materials, labour maintenance and revenue related expenditure is an important driver of our business performance.  We will work with a large number of suppliers to source a range of goods and services including: design and  engineering, construction and construction management, plant and equipment, security, shipping, legal, financial and other professional services.

In common with our approach to customers, we aim to develop long-term relationships with our suppliers and sub-contractors. We aim to operate a co-ordinated approach to purchasing across the whole range of our activities to ensure a consistent approach to all sourcing decisions. Our purchasing philosophy is to obtain goods and services that provide maximum total value. While purchase price is obviously critical, other factors include whole-of-life cost, quality, delivery, method of payment, assured supply, cost reduction opportunities, safety, environmental, engineering and process considerations. This local approach to sourcing enables our operations to maintain a close working relationship with suppliers.

Our dealings with suppliers and sub-contractors are conducted to ensure the:

Ø       Advance agreement of a set of reasonable terms of trade

Ø       Establishment of a fair and transparent relationship based on mutual trust

Ø       Settlement of amounts due in line with agreed terms

Ø       Respect of the sensitive nature of commercial agreements between us and our suppliers and sub-contractors

Ø       Absolute prohibition of any corruption or bribery in our commercial dealings with suppliers or customers

Ø       Compliance with all appropriate environmental standards & regulations and health & safety regulations.

 

Robert Hobbs

March 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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