Gazprom Neft at a Glance

Geography of Operations

The Company is engaged in the prospecting, development and production of oil and gas reserves primarily at the deposits located in the Yamal-Nenets and Khanty-Mansi Autonomous Districts of Western Siberia, in the Omsk and Tomsk Regions and in Chukotka.

Gazprom Neft holds a 49.9% interest in JSC Slavneft (Slavneft) and a 50.0% interest in JSC Tomskneft VNK (Tomskneft), which are engaged in the development of oil and gas deposits in the Urals and Siberian Federal Districts. The Company accounts for investment in Slavneft and Tomskneft using the equity method and acquires from them, at an agreed price, part of produced oil commensurate with the Company’s interest in each of these affiliates.

The main refinery of Gazprom Neft is OJSC Gazpromneft - Omsk Refinery in the south-west of Siberia. The Omsk Refinery is the second largest and one of the most technologically advanced refineries in Russia. The Company also holds a 50.0% interest in Moscow NPZ Holdings B.V. which owns a 77.25% stake in OJSC Moscow Refinery. Furthermore, the Company has access to the refining capacities of OJSC Slavneft-YANOS (YANOS), owned by Slavneft. Thus the Company uses the refining capacities of these two plants in proportion to its interest in each refinery. Oil is processed by the Company at these refineries under refining agreements.

Gazprom Neft sells petroleum products in Russia and CIS countries mostly through its subsidiaries and associates. Export trading is conducted through a wholly-owned subsidiary, Gazprom Neft Trading GmbH, acting as an export trader for the Company.

Gazprom Neft’s Distribution Network Covers the Entire Country

The Company is expanding its presence in Central Asian republics, developing there its distribution network. In 2006 JSC Gazprom Neft purchased in Kyrgyzia CJSC Munai Myrza and Alliance Oil Asia LLC, owners of petroleum product storage and distribution assets. As of December 31, 2008 Gazprom Neft Asia LLC operated 102 filling stations and 8 tank farms.

The Company is also ready for participation in international projects of state significance. In particular, the Company’s involvement as a full shareholder in the implementation of the Burgas- Alexandroupolis Transbalkan Oil Pipeline construction project in partnership with OJSC OC Rosneft and JSC Transneft will make it possible to address the strategic task of oil transportation, bypassing the congested Black Sea straits, which meets the interests not only of Russia but of the Black Sea and Caspian Regions on the whole.

In October 2008 JSC Gazprom Neft together with Russian companies OJSC Rosneft, OJSC Lukoil, TNK-BP, OJSC Surgutneftegaz signed a Memorandum of Understanding providing for cooperation and joint participation in projects in Venezuela and Cuba through the Consortium. In October 2008 National Oil Consortium LLC was established in Moscow to act as an operator of the Consortium’s projects. Shares in the Company will be equally distributed between the Consortium members, each getting 20 %. The priorities for the Consortium are hydrocarbon prospecting and production in the Carabobo and Hunin-6 blocks (Venezuela) as well as in the offshore blocks of an exclusive economic zone (Cuba). The Consortium is currently considering the possibility of joining the above projects.

In January 2008 Gazprom Neft signed an agreement on the principal terms of acquisition of a 51% interest in Serbian oil company Naftna Industrija Srbije (NIS). In September 2008 the agreement was ratified by the Serbian Government. On December 24, 2008 the Republic of Serbia and JSC Gazprom Neft signed a purchase agreement for a 51% interest in NIS. On February 2, 2009 the purchase transaction for NIS shares was closed. Naftna Industrija Srbije (NIS) Naftna Industrija Srbije (NIS) is one of the largest vertically integrated oil companies in Central Europe engaged in petroleum product refining and distribution, hydrocarbon production in Serbia and Angola. NIS produces annually around 0.7 mln tons of oil. NIS is the owner of oil refineries in Pancevo and Novi Sad with a total refining capacity of 7.2 mln tons a year. NIS has a corporate distribution network including tank farms and 480 retail filling stations and is the leading petroleum product supplier in the Serbian market. NIS produces around 85% of all petroleum products consumed in the country.

The Company finished 2008 in fifth place among Russian vertically integrated oil companies in oil production and exports and in fourth in refining.