Strategy

The foundation of the operations of Gazprom Neft is the Company’s Development Strategy until 2025, which was approved by the Board of Directors in May 2013. This Strategy is a continuation of and improvement on the Development Strategy until 2020, which was approved in 2010 and updated in 2012 by the Company’s Board of Directors. The document contains the goals for 2020, elaborates on ways to achieve them in the main business segments – hydrocarbon production, oil refining and the sale of petroleum products – and also identifies the key objective for the period from 2020 to 2025 as maintaining the business scale achieved by 2020.

As part of the monitoring of the implementation of the Strategy in 2014, the goals and objectives for several business areas were clarified. The updating of the goals and targets was specific in nature and did not entail any large-scale revision of the Company’s Development Strategy as a whole. Today in the area of exploration and development Gazprom Neft continues to focus on the efficient development of the mature resource base and ensuring the maximum return on investment for new projects. In refining and sales, the focus remains on modernizing refining facilities and maximizing sales of petroleum products through its own sales channels.

GEOLOGICAL EXPLORATION WORK AND PRODUCTION

2014 Contribution to the implementation of strategic goals (modified with respect to 2013)

Proved hydrocarbon reserves under SPE-PRMS standards – 1.443 bn TOE (+7.40%)

Production of marketable hydrocarbons – 66.25 mn TOE (+6.41%)

Oil reserves to production ratio (PRMS proved + provable) – 33 years

STRATEGIC GOALS:

100 mn TOE hydrocarbon production volume
20 years Reserve life (MR/production)

OIL REFINING

2014 Contribution to the implementation of strategic goals (modified with respect to 2013)

Total refining volume – 43.48 mn t (+1.99 %)

Total production of marketable petroleum products – 41.64 mn t (+2.69 %)

Output of light petroleum products in Russia – 61.01 %

Oil refining depth in Russia – 81.53 %

STRATEGIC GOALS:

40 mn t volume of Oil refining in Russia
95 % refining depth in Russia
80 % output of light petroleum products in Russia

SALES

2014 Contribution to the implementation of strategic goals (modified with respect to 2013)

Sales volume via premium channels – 25.78 mn t (+7.51 %)

STRATEGIC GOALS:

100 % products from own Russian oil refineries sold via own high-margin sales channels

MOTOR FUEL SALES

2014 Contribution to the implementation of strategic goals (modified with respect to 2013)

Number of active filling stations in Russia, CIS countries and non-CIS countries – 1, 810 (+3.6 %)

Number of active filling stations in Russia and CIS countries – 1, 389 (+3.7 %)

Average sales of petroleum products per filling station – 20.0 per day (+5.26 %)

Average sales of petroleum products via filling station network in Russia and CIS countries – 9.1 mn t (+9 %)

STRATEGIC GOALS:

24.7 mn t sales volume of motor oil in Russia and the CIS
1,880 number of retail chain stations in Russia and the CIS

SALE OF PETROLEUM PRODUCTS TO INDUSTRIAL CONSUMERS

2014 Contribution to the implementation of strategic goals (modified with respect to 2013)

Sales of jet fuel – 3.72 mn t (+11.04 %)

Sales of marine fuel – 4.42 mn t (+46.36 %)

Sales of bitumen – 1.75 mn t (–0.57 %)

Sales of petrochemicals products – 1.24 mn t (+5.98 %)

Sales of lubricants – 0.48 mn t (–2.04 %)

STRATEGIC GOALS:

5.6 mn t sales of jet fuel
8.2 mn t sales of bunker fuel
2.5 mn t sales of bitumen
1.8 mn t sales of petrochemical products
0.66 mn t sales of lubricants