Annual report for 2011

ANNUAL REPORT
OJSC ”
SURGUTNEFTEGAS”

ANNUAL
REPORT
2011
OJSC “SURGUTNEFTEGAS”

2
TABLE OF CONTENTS
A MESSAGE FROM DIRECTOR GENERAL
THE COMPANY’S PROFILE
8 The Company today
12 Events of the year
15 The Company and the oil and gas sector
23 Business priorities
24 Key risks related to the Company’s operations
28 Key performance indicators of OJSC “Surgutneftegas”
PRODUCTION OPERATION
(Report of the Board of Directors of OJSC “Surgutneftegas”
on the Company’s Performance and Business Priorities Development Prospects)
30 Resource policy
35 Oil and gas production
43 Oil refi ning and gas processing
47 Sales of petroleum products
51 Power generation
RESEARCH AND TECHNOLOGY
54 R&D profi le
56 Innovations
59 Information technologies
SOCIAL RESPONSIBILITY
62 Environmental industrial safety
67 Personnel development
71 Charity and social activities
CORPORATE GOVERNANCE AND SECURITIES
77
78 Board of Directors
81 Individual executive body
81 Remuneration paid to executive bodies and members of the Board of Directors
81 Bodies for internal control over the Company’s fi nancial and operating activities
83 The Company’s compliance with the Code of Corporate Behavior
83 Company stock market
85 Report on declared dividend payments
86 Subsidiaries and affi liates
88 The Company’s registrar
ADDITIONAL INFORMATION
90 A list of the Company’s transactions carried out in the reporting year
90 The energy resources utilized by the Company
FINANCIAL (ACCOUNTING) STATEMENTS
92 Audit Report
94 Balance Sheet
95 Notes to the Balance Sheet
97 Profi t and Loss Account
98 Notes to the Profi t and Loss Account
98 Financial (accounting) statements
BACKGROUND INFORMATION 99
4
7
29
53
61
89
91

2011
2010
2009
2008
2007
2011
2010
2009
2008
2007
2011
2010
2009
2008
2007
OIL PRODUCTION
‘000 tons
SALES*
RUB bn
503
* Less VAT, excise duties
and similar obligatory payments.
547
TOTAL DECLARED DIVIDENDS
RUB bn
24
592
596
27
28
60,781
59,548
59,633
32
61,684
64,495
754
38
2011
2010
2009
2008
2007
2011
2010
2009
2008
2007
2011*
2010
2009
2008
2007
GAS PRODUCTION
mn cub m
PRETAX PROFIT
RUB bn
123
142
DIVIDEND PER SHARE
kop.
82/60
192
159
104.88/45
Dividend per preferred share
Dividend per ordinary share
118/50
132.6/60
* Recommended by the Board of Directors.
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
3
12,951
13,363
13,606
14,123
14,139
291
215/60

4
A MESSAGE
FROM DIRECTOR GENERAL
DEAR FELLOW SHAREHOLDERS,
We are glad to announce that 2011
heralded the most successful operating and
fi nancial results of OJSC “Surgutneftegas”.
Irrespective of challenging and changeable
external environment, we adhered strictly
to the scheduled plans, implemented
investment projects, improved production,
and further invested in environmental and
social programs.
In 2010, we managed to stabilize oil
production, and in 2011, we raised our crude
output by 2.1% which surpassed the average
sector rate. The Company’s oil fi elds in Eastern
Siberia contributed greatly to the enhanced
output. We continue to expand the region’s
infrastructure and production capacity.
In the reporting year, Surgutneftegas
commissioned a new Severo-Talakanskoye
fi eld; crude output in Eastern Siberia went up
by 62% to 5.4 mn tons. In 2012, the region
will account for over 10% of the total oil
production. In the year under review, we
launched the construction of the corporate
airport at the Talakanskoye fi eld which will
be a signifi cant infrastructure facility. It will
help considerably improve the effi ciency of
the Company’s material and technical supply,
decrease expenditures and loss of working
hours.
In 2011, Surgutneftegas produced
55.4 mn tons of crude oil in Western Siberia,
so this region remains our primary crude
production center accounting for more than
85% of investments and almost 95% of drilling
operations. Over the reporting year, four
new oil fi elds were put onstream in this area.
Annual discovery of new fi elds and deposits
proves the potential of the territory. In 2011
alone, the Company commissioned 2 new
oil fi elds and 29 deposits at its licensed areas
in Western Siberia; the cumulative C1+C2
reserves growth exceeded 93 mn tons.
The Company permanently ensures
the extended replacement of mineral
reserves. In the reporting year, Surgutneftegas
added 136 mn tons of oil to its reserves,
and for the last fi ve years, the aggregate oil
reserves increase exceeded crude output by
80%. Over this period, we put into operation
13 new oil fi elds, produced over 300 mn tons
of oil, while the remaining recoverable
reserves of ABC1 categories demonstrated
a 9% growth.
The Company’s remaining reserves
are characterized by complex structure,
low reservoir characteristics and poor
productivity. In response to the actual
reserves deterioration, we consider it our
priority to advance and discover technology
and solutions for cost-effi cient oil production
from such reserves, including those of

Bazhenov Formation, which can guarantee
Surgutneftegas a sustainable oil production
in the next few decades.
The reserves of complex nature stipulate
the necessity of wide scale employment
of research solutions and advanced
technology related to oil fi eld development.
Surgutneftegas boasts dozens of methods
for deposits exploitation, including unique
techniques invented and adopted by
the Company’s experts. As a result, we are
able to enhance oil recovery, ensure economic
eff ectiveness and production sustainability
on a long-term horizon.
To increase oil conversion ratio and
improve the quality of the Company’s refi nery
products, we are completing the construction
of hydrocracking complex. In late 2011,
the Company conducted commissioning
works and tested separate units of
the hydrocracking complex. The deeper
refi ning complex is to be commissioned on
a phase base within the next year. The refi nery
continued to upgrade its production
facilities. Consequently, in the reporting year
Surgutneftegas off ered better-quality motor
fuels, including gasoline and diesel fuel.
As for sales, the Company has
strengthened its marketing position. Higher
demand for fuel in Russia, along with
effi cient marketing policy drove petroleum
products sales. The Company’s retail sales
through its gas stations noticeably grew
by 21% from the previous year. The rise in
turnover was encouraged by the program of
gas stations construction and overhaul, and
improved service. Sales of the related goods
and services also show continuous growth,
accounting for 20% of the total revenue of
some gas stations.
Because of the long investment cycle
of the oil industry, the Company’s business
requires sustainable level of investments
irrespective of fl uctuations of macroeconomic
indices and energy prices. Such approach
is considered to be the most reasonable
and adequate with regard to implementation
of investment projects, gradual development
of the Company, and increase of
the shareholders’ benefi t. In 2011, total capital
investments went up by 23.5% against the last
year to RUB 171.8 bn. For the last fi ve years,
our investments more than doubled even
within the context of economic slump.
Higher prices are certainly one of
the factors contributing to capex growth and
aff ecting current expenditures. Operational
effi ciency, cost control, and pursuit of lower
expenses are topmost among the Company’s
priorities. In 2011, our comprehensive cost
control program, which includes measures
for better technology and organization of
production, more effi cient use of production
facilities, raw materials and supplies, import
substitution and reuse of equipment, allowed
us to save over RUB 5 bn. Over the last fi ve
years, savings totaled RUB 24.7 bn.
To better manage energy resources, we
run the energy-saving program and introduce
energy-effi cient technologies. In the reporting
year, power savings reached 573 MW,
and energy consumption was reduced by
343 mn kWh.These achievements earned us
both national and international awards.
Growth of the Company’s own powergenerating
capacities is the key element of
sound resources management and higher
energy effi ciency. In 2011, Surgutneftegas ran
19 gas turbine and 7 gas piston power plants.
Demonstrating a 16% increase, our power
generation segment generated 4.2 bn kWh in
2011 which meets one third of the Company’s
demand.
Improved oil and petroleum products
market performance coupled with a pursuit
of operational excellence led in 2011 to
unprecedented fi nancial results since
Surgutneftegas has started its business as
a joint-stock company. Net revenues and cost
of sales rose 27.5% and 21.2%, respectively.
The cost grew to RUB 84.2 bn, including
almost RUB 71 bn spent on higher taxes
and deductions, which increased by 42%
compared to the previous year. Net profi t for
the reporting period reached RUB 233.2 bn,
an 80% increase from 2010.
The Board of Directors resolved to
recommend the annual general shareholders’
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
5

6
meeting approve a total dividend payment
of RUB 38 bn – RUB 2.15 and RUB 0.6 per
preferred and ordinary share, correspondingly.
Our business growth strategy is based on
the integrated approach, which incorporates
economic, social and environmental actions,
as well as on principles of social responsibility.
The Company seeks to maintain high
environmental safety standards on-site,
as well as provide a comfortable and safe
working environment and social security to its
employees. We off er active support to social
and economic programs implemented in
regions where we operate.
The Company’s environmental
investments are among the highest in
the industry – they totaled RUB 22.2 bn in
2011. We are the best among our Russian
peers in terms of associated petroleum gas
utilization – we reached a record 97.8% rate
in the reporting year. Measures designed to
improve reliability of the Company’s fi eld
pipelines enable it to maintain the lowest
rate of incidents related to oil spills among
vertically integrated oil companies.
Our employees, whose number exceeded
111,000 people in 2011, enjoy a high level
of social protection and benefi ts. Over
the last ten years, we have spent over
RUB 100 bn on social programs, including
RUB 17.5 bn invested in 2011 alone.
Year on year, social fi nancing increases by
over 10%. In response to the ever demanding
requirements for effi ciency and performance
faced by businesses, the Company focuses
its attention on upgrading professional
skills and unlocking creative potential
of its employees.
Annually, over 40% of Surgutneftegas
employees undergo job-related training,
refresher and skills upgrade training.
The Company’s highly qualifi ed employees
take top honors in diff erent contests, such
as the Golden Future of Yugra and Engineer
of the Year, and make real contribution
to the Company’s effi ciency. Innovations
and inventions actively introduced by our
employees help produce new scientifi c,
engineering and technological solutions to
meet production challenges.
In 2012, Surgutneftegas will celebrate
its 35th anniversary. Over those years, we
have trodden a long and arduous path to
excellence showing vigor, commitment and
ability to work eff ectively in the toughest
environments. And today, we have earned
recognition as a trustworthy, highly effi cient
energy company.
Surgutneftegas is a high-sustainability
company able to withstand the recessionary
trends. We boast a strong fi nancial position
and reserves, a balanced project portfolio,
operational effi ciency and highly qualifi ed
personnel. I believe that we will meet
the forthcoming challenges despite all
the diffi culties, and maintain sustainable
business growth along with maximizing
shareholder wealth.
Vladimir L. Bogdanov
Director General
OJSC “Surgutneftegas”

The Company’s Profi le

8
THE СOMPANY
TODAY
Open Joint Stock Company
“Surgutneftegas”, a leading Russian oil
company, is one of ten largest private oil
companies worldwide in terms of hydrocarbon
production.
Established in the course of reorganization
of the oil industry, the company has been on
the market as a vertically integrated company
since 1993.
THE COMPANY INCORPORATES:
one of the largest oil and gas
producing companies in Russia with 7 oil
and gas production divisions that operate in
Western and Eastern Siberia;
KINEF refi nery that leads the industry
in terms of refi ning throughput;
fi ve marketing subsidiaries in
the Northwestern and the Central regions
of Russia: LLC Kaliningradnefteproduct,
LLC Novgorodnefteproduct, KIRISHIAVTO-
SERVIS Ltd, LLC Tvernefteproduct, and
LLC Pskovnefteproduct;
two major research and development
centers: SurgutNIPIneft with a branch in
Tyumen and Lengiproneftekhim
(St. Petersburg).
CORE BUSINESSES OF THE COMPANY:
hydrocarbon exploration and
production: prospecting, exploration,
and operation of oil and gas fi elds;
manufacturing and marketing
of petroleum products: crude oil refi ning,
wholesale and retail trade in petroleum
products and related services;
production of petrochemicals:
conversion of hydrocarbons into raw materials
for various chemicals;
gas processing: processing of
associated petroleum gas, sale of commercial
gas and liquid hydrocarbons;
power generation: construction and
operation of gas-fi red power stations.
BUSINESS GEOGRAPHY
OJSC “Surgutneftegas” develops its
business in some of the largest Russian
regions, from the Baltic to Eastern Siberia,
and has close relations with hundreds of
domestic enterprises and partners in dozens
of CIS and non-CIS countries.
The Company is active in three largest
Russian oil and gas provinces – Western
Siberia, Eastern Siberia, and Timano-Pechora,
where it expands its license portfolio through
prospecting, exploration, and acquisition
of new reserves in Russia, as well as
application of advanced technology to
enhance oil recovery.
SCALE OF BUSINESS OPERATIONS:
OJSC “Surgutneftegas” accounts for:
12% of domestic oil production;
8% of domestic refi ning;
20% of gas production by Russian
vertically integrated companies;
18% of the industry’s investments
in oil production;
29% of domestic exploratory drilling;
25% of development drilling
in the industry.
Surgutneftegas is working towards
sustainable development and a higher rate of
return in the long term. This is the goal that
drives the Company’s operational, fi nancial,
structural, and social policy. The Company
implements a number of successful programs
to enhance energy effi ciency and resource
conservation, upgrade production facilities,
and improve the quality of business, and
demonstrates its sustained ability to compete
on the market.
Innovations created as a result of research
and development by the Company’s
scientists and experts are a key source of
the Company’s competitive advantages.
In addition to introducing global

achievements in production, the Company
also develops and employs in-house
technology. Surgutneftegas has a long track
record of producing from hard-to-recover
reserves with a wide range of enhanced
recovery methods, including unique
techniques developed and introduced by
the Company’s employees. By promoting
in-house research and making the best use of
its extensive service facilities, the Company
confi dently meets the challenges of poorer
resources and lower reservoir quality.
The Company’s refi nery KINEF strives
to strengthen its market positions both
domestically and abroad through adoption
of processes and technology to manufacture
a wider range of high-performance,
environmentally friendly petroleum products.
Commissioning of the fi rst stage of
the deeper refi ning complex is another step
the refi nery is taking towards the world-class
refi ning quality.
Asset modernization and enhancement of
services contribute to better performance of
marketing subsidiaries.
The Company believes that improved
effi ciency is always driven by and connected
with environmental conservation and
compliance with high global ecostandards.
Throughout its history, the Company has
been consistently addressing issues related
to environmental safety of production.
As a result of focused environmental eff orts
based on advanced low impact and resource
saving technology, we achieved the highest
level of associated petroleum gas utilization
in the industry, combined with full recovery
and recycling of almost all types of
production waste.
Surgutneftegas is pursuing the policy of
unfl agging support for innovative research
and development by its personnel, with
particular focus on younger professionals and
talent management to maintain the high level
of human resources.
The Company supports the spirit
of partnership and teamwork among
the employees and encourages them to
deliver the best performance possible.
THE COMPANY’S
CONSISTENT GROWTH IS BASED ON:
THE SCALE AND EFFICIENCY
OF CAPITAL INVESTMENTS;
RELIABLE RESOURCE BASE
AND EVER-INCREASING
HYDROCARBON POTENTIAL;
STRONG RESEARCH
AND PRODUCTION CAPACITY;
TIGHT CONTROL OVER
PRODUCTION COSTS;
INTRODUCTION OF ADVANCED
HIGH PERFORMANCE TECHNOLOGY;
COMPLIANCE WITH HIGH
ENVIRONMENTAL STANDARDS;
HIGH LABOR PRODUCTIVITY.
As a responsible corporate citizen,
the Company follows recognized
international and Russian standards for
sustainable business, promotes long-term
economic growth and social stability,
and contributes to the conservation of
the environment and natural resources in
the areas where it operates.
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
9

10
PRODUCTION EFFICIENCY COMPONENTS
TODAY, EFFICIENT PRODUCTION IS IMPOSSIBLE WITH WASTEFUL
CONSUMPTION OF MINERALS, ENERGY, MATERIALS, AS WELL AS NATURAL
RESOURCES SUCH AS WATER, AIR, AND SOIL. MANY GOVERNMENTS ALL OVER
THE WORLD, INCLUDING RUSSIA, EMBRACED THE CONCEPT OF SUSTAINABLE
DEVELOPMENT AS THEIR AGENDA FOR THE 21 ST CENTURY. RESOURCE
CONSERVATION AND IMPROVED ENERGY EFFICIENCY RANK HIGH ON
THE LIST OF SUSTAINABLE DEVELOPMENT PRIORITIES.
For the resource- and power-intensive
oil and gas sector, sustainable use of natural
resources becomes ever more relevant due to
a number of external and internal factors.
Over the last few years, the fi elds brought
on stream have been showing increasingly
complicated mining conditions; the number
of fi elds with high water cut at the fi nal stage
of development is also increasing. The fi elds
brought on stream by the Company are
located far away from the main storage and
supply centers, which means that more
materials and funds are used for fi eld facility
construction and infrastructure development.
At the same time, prices for electric energy,
materials, and other resources are rising.
Surgutneftegas pays close attention to
saving energy and resources. The Company
believes that the rational use of resources,
lower energy consumption, and improved
energy effi ciency at production sites are
major contributors to enhanced business
performance and stronger competitive
advantages, as well as an important part of
the Company’s social responsibility.
With regard to energy conservation,
the Company follows a comprehensive
approach and takes consistent action to make
a better use of resources through a variety of
eff orts and programs.
In addition to enhanced oil recovery,
the key areas of our work include the rational
use of associated petroleum gas, improved
performance of generating equipment,
reduced losses in power networks,
deployment of energy saving technology in
all business segments, and development of
in-house sources of power supply through
construction and operation of small-scale
power generation facilities. We implement
energy and resource saving innovations on
a large scale.
Following the global trends in information
and technology support of energy

effi ciency management processes, experts
from Surgutneftegas have developed
the Energetika software system. The system
has all components necessary to record
the consumption of electric power and other
kinds of resources, e.g. thermal energy, water,
and gas.
Expansion of the Company’s own power
generation capacity and construction
of electricity supply networks ensured
uninterruptible power supply to oil
production facilities and made available
substantial electric capacity of the national
power grid. Power requirements of the
Company’s business units in Eastern Siberia
are fully covered by the Company’s gas
turbine power plants (GTPP) and gas piston
power plants (GPPP), which supply electricity
not only to the Company’s fi elds, but also to
the Eastern Siberia – Pacifi c Ocean (ESPO)
main oil pipeline facilities. Construction of
gas turbine power plants at remote fi elds and
the use of associated gas as fuel at locations
where it is produced eliminated the need for
gas pipelines to transport gas to processing
facilities, which allowed us to save hundreds
of kilometers of pipes and avoid consumption
of a lot of electric power for gas compression
and pumping.
Waste heat boilers used as sources of
heat supply at gas turbine power plants
and gas-turbine compressor stations were
one of the effi cient solutions applied by
Surgutneftegas. Gas-fi red radiant (infrared)
heating systems are also used on a wider scale
for large industrial premises. More than 90%
of the required thermal energy is generated
by the Company’s own sources.
Surgutneftegas achieves signifi cant
cost advantages through natural resources
conservation and production waste
management.
For over 5 years, the Company operates
an automotive waste tire processing
facility, which makes it possible to recycle
thousands of tons of such secondary waste
as crumb rubber for bitumen modifi cation at
the Company’s own asphalt concrete plants.
The utilization of drilling sludge from
pitless drilling as soil for construction of multiwell
pad embankments and exploratory well
pads and the forest recultivation technology
for sludge pits contribute to saving commonly
occurring minerals, in particular peat and
sand. The forest recultivation technology
was developed by scientists from the Forest
Institute, Siberian Branch of the Russian
Academy of Sciences, upon the Company’s
request. Since it was deployed in 1996, it
prevented removal of more than 4 mn cub m
of sand from the ecosystem.
Although the Company’s production sites
are located outside the areas that suff er from
the shortage of water resources, sound water
management is our ongoing concern. Fresh
subsurface (artesian) water intake accounts
for 15.7% of the permitted water withdrawal.
The Company has implemented a number
of technical regulations to standardize
effi cient resource consumption and energy
conservation. They set forth the key principles
and relations between the Company’s
business units with regard to planning
and carrying out energy and resource
conservation measures, resources needed for
a unit of production under specifi c process
technology, procedures to control compliance
with consumption standards, and timely
response in the event of overconsumption.
Education and motivation of the Company’s
personnel with regard to energy and resource
conservation are also important.
The Company seeks and uses advanced
and innovative technology for energy and
resource conservation and energy effi ciency
improvement considering them one of
the crucial preconditions for its further
progress and competitive growth.
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
11

12
EVENTS OF THE YEAR
JANUARY
Surgutneftegas obtained subsoil licenses for the right to use the Bysakhtakhsky and Agapsky
blocks in Eastern Siberia.
FEBRUARY
Surgutneftegas obtained subsoil licenses for the right to use the Verkhne-Kazymsky
and Yuzhno-Vatlorsky blocks in Western Siberia.
Tvernefteproduct, one of the Company’s marketing subsidiaries, put into operation the third
fully automatic car wash for passenger cars and minibuses in the city of Tver.
MARCH
A modern crude oil distillation unit is commissioned at the Talakanskoye fi eld in the Republic
of Sakha (Yakutia) to produce 18 thousand tons of bitumen annually.
Surgutneftegas obtained subsoil licenses for the right to use the Zapadno-Nyalinsky
and Vostochno-Serginsky-3 blocks in Western Siberia.
LLC “KINEF”, the Company’s refi nery, celebrated its 45th anniversary.
APRIL
XXXI Scientifi c and Technical Conference for Young Scientists and Professionals
of OJSC “Surgutneftegas” was attended by more than 700 employees under the age of 30.
As many as 308 projects were presented in 18 workshops during the fi nal part of the conference.
The women’s water polo team KINEF-Surgutneftegas won the Russian championship title
for the ninth time.
MAY
Surgutneftegas employees won 6 prizes in the XI Conference for Young Professionals from
companies engaged in the use of subsurface resources in areas located in Khanty-Mansiysky
Autonomous Okrug – Yugra.
JUNE
The SurgutNIPIneft Research and Development Institute celebrated its 25th anniversary.
The Institute is a major credible design institute for the Company’s fi eld facility construction.
In the course of its history, the Institute has carried out thousands of research projects to meet
the Company’s production needs.

JULY
Russian Prime Minister Vladimir Putin held a meeting titled “On the state of the oil refi ning
industry and petroleum products market in the Russian Federation” in LLC “KINEF” in the city
of Kirishi.
The fi nal stage of the annual Best Professional corporate contest brought together
900 employees from 57 structural units.
AUGUST
The Fedorovskoye fi eld was discovered 40 years ago. Since it was discovered, the fi eld has
produced more than 570 mn tons of oil and 130 bcm of gas.
The Company’s subsidiary LLC Kaliningradnefteproduct celebrated its 65th anniversary.
The Company’s subsidiary LLC Pskovnefteproduct put into operation a new gas station
in the city of Ostrov, Pskovskaya Oblast.
SEPTEMBER
Surgutneftegas won the annual regional contest titled The Black Gold of Yugra for the eighth
time.
The formal opening ceremony was held for a kindergarten for 240 children in the village
of Vitim, Lensky District, Republic of Sakha (Yakutia). The construction was fi nanced by
Surgutneftegas on a parity basis with the Sakha Government.
New tenants of a 36-apartment house built by the Company in the village of Vitim received
the keys to their apartments during a special ceremony. The Company’s employees received
16 apartments; public sector workers, 20 apartments.
Seven hundred and twenty employees of OJSC “Surgutneftegas” received awards of
the Ministry of Energy of the Russian Federation, constituent territories of the Russian Federation,
and local authorities, as well as corporate awards in honor of the professional holiday,
the Day of Oil and Gas Industry Workers.
OCTOBER
Surgutneftegas hosted the International Research and Training Conference “The impact
of the oil and gas complex on forest formation processes in Western Siberia”. The conference
was attended by scientists who work in the sphere of reforestation and land recultivation,
representatives of federal, regional, and territorial authorities in charge of forest management
and state environmental control, representatives of non-governmental ecological organizations,
experts from major Russian oil companies, employees of specialized institutes, companies, and
organizations, and foreign experts.
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
13

14
Surgutneftegas started operation of the Suryeganskoye oil fi eld in Khanty-Mansiysky
Autonomous Okrug – Yugra.
The fi rst of the Company’s 41 development drilling crews in Western Siberia hit the 100,000 m
drilling record since the beginning of the year.
NOVEMBER
Surgutneftegas received the annual prize “Let’s Save Energy – 2011” awarded by the Federal
State Budgetary Institution “The Russian Energy Agency” of the Russian Ministry of Energy
as “The Best Power-Saving Regional Project”.
During ten years of operation of the Company’s in-house generation facilities, the Company
generated 20 bn kWh of electric power in 2001 – 2011.
The Company’s marketing subsidiaries put into service 4 new gas stations in St. Petersburg,
Kaliningradskaya and Pskovskaya Oblasts.
DECEMBER
The Company’s Energetika software system project won Gold of SAP Quality Awards 2011
as “Medium and Large Implementation” (CIS region) and Silver within Europe,
Middle East & Africa (EMEA) region.
LLC “KINEF” received the fi rst natural gas, which meant another step towards improved
effi ciency of the existing capacities and the future start-up of a new production facility,
the deeper refi ning complex.
Surgutneftegas commissioned the Severo-Talakanskoye fi eld in the Republic of Sakha
(Yakutia). This is the third fi eld in Yakutia discovered in 2008 by the Company’s exploration
division in Kedrovy license area adjacent to the Talakanskoye oil and gas condensate fi eld.
Surgutneftegas obtained a subsoil license for the right to use the Khoshiplorsky block
in Western Siberia.
By the end of the year, 26 development drilling crews drilled over 100,000 m in Western
Siberia.
The Company’s subsidiary LLC Novgorodnefteproduct put into operation a new gas station
in Novgorodskaya Oblast.

THE COMPANY AND THE OIL AND GAS SECTOR
DEVELOPMENT TRENDS IN THE SECTOR IN THE REPORTING YEAR
In 2011, the global economy continued
its recovery although the revival of the
economic growth is still unstable. The global
economy grew by 3.8% against 5.2% in
2010, with both developed and developing
countries affected by the slowdown. While
China and India remained the driving
forces behind the growth of global GDP,
Brazil lost this status. Emerging markets
OIL PRODUCTION IN RUSSIA
mn tons
2011
2010
2009
2008
2007
mostly demonstrate fast economic
growth but there is a growing concern
about the “overheating” of some of these
economies due to increasing inflation.
Many advanced economies continue to
show relatively weak growth limited by
high unemployment rates, poor financial
conditions, and the concern about
the future of the national budget and
488
491
494
505
511
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
15

16
OIL PRODUCTION
BY RUSSIAN COMPANIES
IN 2011
22% Rosneft
17% LUKOIL
14% ТNК-ВР
12% Surgutneftegas
6% Gazprom neft
29% Others
the financial sector. A number of European
countries are facing serious difficulties as
a result of the outstanding debt problems.
The Arab revolutions and instability
involving Syria and Iran amplifi ed
the fl uctuations in the global oil supply and
demand even more: the increase in the global
oil demand in 2011 was a mere third of
the 2010 fi gure (1% vs. 3%, respectively).
Prices for most exchange commodities
in 2011 went down on the back of a weaker
world demand. On the contrary, crude prices
were pushed up, mainly by geopolitical risks:
the annual average Brent price soared by 40%
to 111 USD/bbl; the average Urals price, by
39% to 109 USD/bbl. In 2011, price volatility
remained quite high: minimum Brent price
was 93.7 USD/bbl and maximum price was
126.6 USD/bbl.
Higher oil prices and the growing
demand led to an increase in hydrocarbon
exploration all over the world. In 2011, global
oil reserves increased by 7 bn tons (+3.2%) to
223 bn tons. The top ten countries with the
largest oil reserves were the same; their share
in the world reserves remained at the same
level (85.3%), with Saudi Arabia still leading
the fi eld.
Global production in 2011 totaled
3.6 bn tons of crude oil, which is slightly less
than in the previous year. Global production
of liquid hydrocarbons amounted to
3.9 bn tons, including liquid hydrocarbons
from gas processing. Just like before, ten oil
producing countries account for more than
63% of the global crude production. Despite
the production decline in Libya by 70%,
OPEC increased its oil output by 11 mn tons,
although the available OPEC production
capacity decreased to 3.8 mn bbl/day in 2011.
The output from the North Sea continues to
fall, with UK and Norway fi elds suff ering from
the largest decline.

The world gas demand in 2011 rose by 3%.
In the year under review, global gas reserves
increased by 1.5% to 191 tn cub m, with
Iran, Indonesia, and the USA demonstrating
the highest growth in gas reserves (mostly
thanks to shale gas). The top ten countries
with the largest gas reserves remained
the same; their share in the global gas
reserves at 2011 end exceeded 79%. Russia
is still the fi rst in the world in terms of gas
reserves: it accounts for over 25% of the world
reserves.
Gas production in 2011 totaled
3.1 tn cub m. The rate of production growth
has slowed to 3% compared to 5% in 2010.
The USA (+40 bcm), Qatar, Russia,
Turkmenistan, and China were the leaders in
production growth. The accelerated growth
in shale gas production in the United States
was the key contributor to the record-high
increase in gas output in this country. Natural
gas prices in 2011 continued their recovery
but are still below the pre-crisis level.
Demand for all sources of energy is on
the rise, though the share of fossil fuels
in global energy consumption has been
gradually (yet slowly) shrinking. Renewable
energy growth is driven by subsidies
granted for alternative energy projects by
governments of diff erent states (US, EU,
China).
Alternative sources of oil are gaining
wider presence in total fuel production.
The development of shale oil fi elds is currently
gaining momentum in the United States.
According to some estimates, by the end of
this decade its output may grow by 25%, to
approximately 2 mn bbl/day. An increasing
number of companies acknowledge
the potential of this market and start investing
more heavily in unconventional oil sources.
Oil sands production also has great potential
and sees higher rates year on year in Canada.
GAS PRODUCTION BY VERTICALLY
INTEGRATED OIL COMPANIES
IN RUSSIA IN 2011*
25% LUKOIL
20% Surgutneftegas
19% ТNК-ВР
19% Rosneft
11% Gazprom neft
6% Others
* Excl. fl ared gas.
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
17

18
Russia leads the world in crude output.
In 2011, crude and gas condensate production
amounted to 511.4 mn tons, up by 6.3 mn tons
from 2010. Rosneft and Surgutneftegas were
the major contributors to the production
growth. As in the previous year, Eastern Siberia
and Far East projects became the key growth
drivers adding 8.5 mn tons (+17.8% to the 2010
level). Non-VIOC companies also contributed to
higher output by increasing their production in
2011 by 3.2 mn tons (+7.7%).
At the same time, the output in 2011
grew more slowly compared to the previous
year (1.2% against 2.2% in 2010). Lower
production growth is mostly due to natural
depletion of major fi elds coupled with higher
costs of production and poorer quality of
new reserves. Above all, it aff ects the key
producing regions, including Western Siberia
which brings almost 60% of oil produced in
Russia.
The number of fi elds put on stream in 2011
was also on the decrease: 16 fi elds in Russia
compared to 23 fi elds the year before. The
share of new fi elds in the total Russian output
was down to 7.7% (8.2% in 2010), which is
another proof that the quality of new reserves
is getting poorer.
Meterage drilled by Russian oil companies
in 2011 was 18,742 thousand m (+8.8%).
OIL REFINING IN RUSSIA
mn tons
2011
2010
2009
2008
2007
As a result, the number of wells brought
on stream in 2011 went up by 5.9% to
6,146 wells. At the end of 2011, the number
of oil producing wells in operation increased
slightly to 160.4 thousand wells (+0.6%).
The companies continue optimizing
the structure of their well stock; as a result,
the number of idle wells in the industry
decreased by 937 wells (-3.8%) to
23.5 thousand wells.
Over the last years, transport infrastructure
has undergone a rapid development. In 2011,
the Purpe-Samotlor pipeline came onstream;
the fi rst oil was delivered by pipeline to
China; the Baltic Pipeline System – 2 project
approached its fi nal stage; the construction of
the Zapolyarye-Purpe pipeline was approved
for fi nancing.
Russia is the second largest exporter of
crude oil in the world accounting for 12% of
the international oil trade. Most of the Russian
hydrocarbons are supplied to Europe where
Russia has a 30% market share.
In 2011, crude supplies to non-CIS
countries decreased by 3.9% to 212.2 mn tons
due to a decline in supplies to Europe.
However, the ESPO pipeline made it possible
to increase export supplies to the Asia-Pacifi c
Region to 30 mn tons, with supplies to China
many times larger than before because
228
236
236
250
258

the Skovorodino – Daqing pipeline received
the fi rst oil after the Chinese section was
commissioned. Exports to CIS countries went
up by 3.6 mn tons (+13.7%) to 29.9 mn tons,
primarily driven by a 40.8% increase in
supplies to Belorussian refi neries. In total,
Russia exported 242.1 mn tons in 2011, which
is 2% less than in the previous year.
Russian refi neries increased the volume of
primary crude oil distillation: crude oil refi ning
and condensate processing in 2011 reached
257.9 mn tons, which means that Russia
refi nes more than half of the produced oil.
In 2011, oil was refi ned by 29 major refi neries
and several dozens of mini refi neries in Russia.
As in the previous year, the oil conversion
ratio in 2011 decreased slightly to 70.8% vs.
71.1% in 2010. Diesel fuel and fuel oil still
account for a large share in the output mix:
their production in 2011 rose to 73.3 mn tons
(+4.9%) and 70.6 mn tons (+0.3%),
respectively. The bulk of these petroleum
products is exported as fuel and feed stock
for further processing. Gasoline production
reached 36.6 mn tons (a 1.7% increase)
but this growth was not enough to meet
the needs of the domestic market.
Despite the protective export duties, there
were times when the regional markets
experienced the shortage of gasoline.
OIL REFINING AND
GAS CONDENSATE PROCESSING
BY RUSSIA OIL COMPANIES
IN 2011
20% Rosneft
18% LUKOIL
12% Gazprom neft
9% ТNК-ВР
8% Surgutneftegas
33% Others
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
19

20
Over the last years, higher quality of gasoline
refl ected a positive trend in the industry.
As a result, high-octane gasolines accounted
for 89.6% in the total gasoline output in
2011 compared to 84.8% in the previous
year. During the year, the country produced
9.3 mn tons of jet kerosene (+2.3%).
The domestic consumption of jet kero was at
an all-time high: air transportation in Russia
has expanded signifi cantly, which led to
the shortage of this product on the domestic
market in late 2011.
In recent years, the government has
been paying closer attention to the Russian
refi ning sector, in particular, to the quality of
the product output. This led to the applicable
Technical Regulations on oil products,
diff erentiated excise duties on gasoline and
diesel fuel based on their environmental class,
and more stringent control over refi neries
upgrades. As a result of these processes, oil
companies increased their investments
in re-equipment of their production facilities.
In 2011, the industry made a transition
to a new model for calculation of export
duties equalizing duty rates for light and
dark oil products (the 60-66-90 system),
IDLE WELLS IN TOTAL WELL STOCK OF RUSSIAN OIL COMPANIES
AT THE END OF 2011
ТNК-ВР
Rosneft
Таtneft
LUKOIL
Bashneft
Slavneft
Russneft
Gazprom neft
Surgutneftegas
which also provides for an increase in export
duty rates for dark oil products to 100% of
the crude oil duty from 2015. The duty rate
on mogas was increased (90%) to restrict
the export of mogas which was in defi cit
in 2011. As a result, gasoline export in 2011
remained limited (less than 3.1 mn tons),
diesel fuel export decreased from 40.6 mn
tons to 35.4 mn tons, and fuel oil export was
at the same level (71.7 mn tons).
In 2011, Russia produced 687.5 bcm
of gas (+3.3%) setting a new record after
the breakup of the Soviet Union. NOVATEK,
the second largest gas producer in Russia,
was leading the upward trend. PSA
operators also did well (+8.3%) whereas
Gazprom increased gas production by
0.2% only, which is well below the general
industry performance. Vertically integrated
oil companies boosted gas output by
9.2% bringing their share in the total gas
production from 10.7% in 2010 to 11.4%
in 2011. Gas production by oil companies
totaled 78.1 bcm, including 58.9 bcm
of associated petroleum gas (APG).
APG utilization remains one of the most
sensitive issues for vertically integrated oil
Average for the industry – 14%
25%
18%
13%
13%
12%
12%
10%
9%
7%

companies: while APG production grows,
the level of its value-added use at year end
dropped to 76%.
In search of lower transit risks, the industry
continues expansion of gas transport
infrastructure. In 2011, the fi rst line of
the Nord Stream gas pipeline connecting
Russia and Germany through the Baltic
Sea was commissioned with a throughput
of 27.5 bcm/year. The commissioning of
the second line which will double the pipeline
throughput is scheduled for October 2012.
Export supplies of Russian gas in 2011
increased by 6.7%; supplies to the domestic
market, by 2.9%.
Therefore, the main development trends in
the oil and gas industry in the reporting year
were:
higher hydrocarbon prices;
increased oil and gas production;
increased exploratory
and development drilling;
continuing development
of transport infrastructure;
expanded Russian presence
on the Asia-Pacifi c market
and increased oil supplies to China.
EXPLORATORY DRILLING
BY RUSSIAN COMPANIES
IN 2011
29% Surgutneftegas
16% LUKOIL
13% ТNК-ВР
9% Rosneft
8% Gazprom neft
25% Others
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
21

22
DEVELOPMENT DRILLING
BY RUSSIAN COMPANIES
IN 2011
25% Surgutneftegas
14% Rosneft
12% LUKOIL
11% Gazprom neft
8% ТNК-ВР
30% Others
THE COMPANY AMONG ITS PEERS
OJSC “Surgutneftegas” is the fourth largest
oil producing company in Russia. In 2011,
the Company increased crude oil output to
60.8 mn tons, which is more than 12% of
the domestic oil production. Gas production
totaled 13.0 bcm (more than 20% of all gas
produced by Russian vertically integrated oil
companies).
In 2011, the Company increased
production by 2.1% (outperforming
an industry average) and commissioned
5 new fi elds.
The Company pioneered the full lifecycle
for APG processing and APG-based
energy production in Russia. As a result, for
many years Surgutneftegas has maintained
the highest ratio of associated petroleum gas
utilization in the sector, which reached its
record high of 97.8% in 2011.
Traditionally, Surgutneftegas is far
ahead of its industry peers in terms of
development and exploratory drilling.
In 2011, development drilling amounted
to more than 4,530 thousand m (or over
25% of the meterage drilled in the sector);
exploratory drilling, to 216.3 thousand m
(or 29% of exploratory drilling in Russia).
Accordingly, the Company accounts for over
46% of all exploration wells constructed in
Russia.
The Company has the smallest number of
idle wells. The share of idle wells in the total
operating well count was 6.8% at year end.
For years, Surgutneftegas has kept the ratio
of idle wells below 10%.
Refi ning throughput at LLC “KINEF”,
the Company’s refi nery, amounted to
21.1 mn tons, or 8.2% of the domestic
throughput. The refi nery is the largest one
in Russia in terms of throughput. Annually,
the Company maintains 100% utilization of
its capacities.
The Company’s marketing units, with
their network of 298 fuel stations, are
leaders in the north-west of Russia. In 2011,
the Company sold 1,600 thousand tons of oil
products.

BUSINESS PRIORITIES
OIL AND GAS PRODUCTION:
to replace and improve the quality
of mineral resources on an expanded scale
through geological exploration in existing
license areas and acquisition of new promising
areas;
to develop and apply innovative
solutions and introduce advanced fi eld
development technology and equipment
in order to enhance effi ciency of oil and gas
exploration and production;
to maintain the existing level of
production in the traditional area of operations
(Western Siberia), increase crude output in
Eastern Siberia, and develop Timano-Pechora
extensively;
to take a comprehensive approach to
gas sector development: to provide for a high
utilization level and maximize effi cient use of
associated petroleum gas;
to control costs.
OIL REFINING AND GAS PROCESSING:
to improve the quality of products
and ensure compliance with Russian and
international quality standards;
to enhance refi ning and processing
effi ciency through modernization and
reconstruction of production facilities;
to extend the range of products.
MARKETING:
to diversify product supplies by
entering new markets and developing Russian
transportation infrastructure;
to expand petroleum products
markets through construction and
modernization of gas stations;
to boost sales of associated goods and
services.
POWER SECTOR:
to develop small-scale power
generation by expanding in-house generation
capacity for reliable power supply to
production facilities, effi cient utilization of
associated petroleum gas, and additional
technological and economic benefi ts;
to introduce energy-saving and energy
effi cient solutions and technology.
SOCIAL RESPONSIBILITY:
to mitigate the environmental
impact of production facilities and use natural
resources in a responsible and rational way;
to assure high industrial and
occupational safety standards;
to contribute to the social and
economic development of the areas where
the Company operates;
to off er extra social benefi ts and
guarantees for the employees, their families,
and retired employees.
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
23

24
KEY RISKS RELATED
TO THE COMPANY’S OPERATIONS
IN THE COURSE OF ITS ACTIVITIES, OJSC “SURGUTNEFTEGAS” IS EXPOSED
TO DIFFERENT RISKS, INCLUDING INDUSTRY, COUNTRY, FINANCIAL,
AND LEGAL RISKS, WHICH MAY ADVERSELY AFFECT THE COMPANY’S
OPERATING AND FINANCIAL PERFORMANCE. IN LINE WITH ITS OPERATING
PRINCIPLES, THE COMPANY SEEKS TO MINIMIZE THE RISKS UNDER
THE COMPANY’S CONTROL AND MITIGATE ANY NEGATIVE CONSEQUENCES
OF THE RISKS IN CASES WHEN THE COMPANY’S ABILITY TO CONTROL
IS LIMITED.
INDUSTRY RISKS
The most substantial risks for
OJSC “Surgutneftegas” are industry risks
that include the following: changes in prices
for the Company’s products, materials and
services used in the Company’s operations,
as well as technological and environmental
risks related to specifi c production processes
and industry competition.
The Company’s operating results depend
on hydrocarbon market condition to large
extent. Lower hydrocarbon prices may
deteriorate the Company’s fi nancial and
economic performance.
Crude oil and petroleum products,
the source of the Company’s primary income,
are exchange commodities. The world
prices for such commodities are aff ected
by a great number of global economic
and political factors including global and
regional economic growth, balance between
the global and regional demand and supply,
geopolitical situation in oil and gas producing
regions, as well as development of alternative
energy sources. Besides, the pricing
environment is vulnerable to long-term
market speculations.
In 2011, we saw the risk of economic
slowdown, especially in euro-zone countries
which are the main consumers of the Russian
energy resources. Many of them are facing
budget defi cit and suff ering from a heavy
debt load. Recently, the credit ratings of some
of the countries have been lowered and one
may expect the crisis of the banking sector
in the euro region. Moreover, such factors
as the US budget defi cit and risks related to
the economy slowdown in China and other
oil consuming countries are still a matter of
concern. The economy recession may bring
forth an oil price drop. The current prices
for energy resources include a signifi cant
premium for political instability in the Middle
East region which also may negatively aff ect
oil prices in the future.
As for the long-term perspective,
the prices can be impacted by development
of unconventional oil reserves, advanced
technologies, and wider utilization of
the alternative energy sources. Currently, we
see the continuous investment being made
in solar and wind energy projects. Shale oil
production technology is under development,
which is expected to enable the USA to stop
almost all crude oil imports in the near future.
Other countries may start developing shale
oil as well. The same changes occurred on
the North American gas market where the oil
prices slumped due to a sharp increase in
shale gas production.
Prices for crude oil and petroleum
products in Russia are set under the infl uence
of the global prices for hydrocarbons and
internal factors including, fi rstly, tax policy in
respect of the oil and gas industry and energy
resources export regulation.
The risk of changes in energy prices is
beyond the Company’s control. At the same
time, Surgutneftegas is quite fl exible in terms
of target market outlets and its production
structure as well as able to optimize operating
costs and capital investments in response
to continuous price reduction. In case of
a short-term drop in oil prices, the Company
is fi nancially stable and has suffi cient
reserves to meet its obligations and maintain
the necessary investment level considering
industry specifi c long-term production cycle.
Surgutneftegas applies a wide range of
materials, equipment and facilities. Therefore,
any increase in prices for such products

may considerably impact the Company’s
operating costs. Surgutneftegas is striving
to mitigate these risks through tenders for
supply of equipment, direct contracts with
manufacturers, and long-term contracts
with suppliers. Besides, the Company is
implementing programs aimed at better
use of resources and lower operating costs,
which make it possible to reduce materials
consumption and enhance energy effi ciency
of its operations.
Expenditures for products and services of
natural monopolies account for a signifi cant
part of the Company’s operating costs;
the tariff policy of such monopolies can be
regulated by the state. Any further increase
in tariff s may negatively aff ect the Company’s
fi nancial results. The Company is unable
to infl uence the pricing process in these
industries, but it mitigates risks by developing
in-house facilities with due account
for investment eff ectiveness, including
construction of energy supply facilities,
communication lines, and data transmission
lines.
Surgutneftegas is limited in terms of
selection of the service companies engaged
in transportation of crude oil and petroleum
products. The bulk of the Company’s products
is transported via the main trunk pipeline
system of OJSC “AK “Transneft” and
OJSC “AK “Transnefteproduct”. Cargoes
are delivered by the railway system of
OJSC “Russian Railways”. Underdevelopment
of transportation systems in outlying regions,
operational failures, and other infrastructure
breakdowns and technogenic disasters
may result in disruptions and extra costs for
supplies of the Company’s products,
as well as make oil fi eld development more
expensive and time consuming.
Surgutneftegas is exposed to the risk
of increased competition among its peers
in terms of access to hydrocarbon fi elds,
pipeline systems, refi neries, and markets.
The most critical issue for the oil companies
is competition for oilfi eld development and
production licenses, which results in reserves
and production decline and deterioration
of economic effi ciency of projects due to
higher license costs. Today, this type of risk
is becoming more crucial due to reserves
deterioration and a decreased number of
licenses put up for tenders and auctions for
oil fi elds with proved hydrocarbon reserves.
The Company’s exploration activities are
linked to uncertainty involving probabilistic
assessment of quantitative and qualitative
characteristics of petroleum reserves,
reservoir structure and properties, and
a potential failure to discover commercial
reserves. These factors may result in
additional costs, revision of the projects
investment effi ciency, and abandonment of
unpromising license areas.
Complex production processes of reservoir
management, oil and gas processing and
transportation are fraught with technological
and environmental risks. Severe weather
conditions of the regions where the Company
operates and the need to develop hard-torecover
reserves are driving the growth of
these risks. However, Surgutneftegas manages
to mitigate the impact by strictly adhering
to the industry-related requirements and
standards, monitoring production facilities,
applying cutting-edge techniques and
technologies, and improving the competence
of personnel in the area of industrial and
environmental safety.
COUNTRY AND REGIONAL RISKS
The Company carries out its core business
in the Russian Federation, and the Company’s
country risks therefore include political,
economic, and social risks existing in Russia.
Political risks in Russia depend on changes
in the country’s foreign and domestic policy
and the government’s strong impact on
the industry, including energy strategy, tariff
formation, asset nationalization, or economic
liberalization.
The economic situation in the country is
relatively stable but at the same time high
oil price volatility creates signifi cant risks for
the Russian budget as its considerable part is
formed from oil and gas revenues. Therefore,
long-term price reduction may cause budget
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
25

26
defi cit and deterioration of the country’s
macroeconomic indicators.
The risks connected with worsening
of the economic, political and social situation
in the regions of the Company’s presence
may impact its economic performance.
Being a responsible operator, Surgutneftegas
duly fulfi ls its obligation on salary and tax
payments and other binding payments.
As the Company is focused on sustainable
and planned development of the territories
of its operation, regional risks are considered
to be low.
Surgutneftegas operates mainly in
Western and Eastern Siberia, and its refi nery
and marketing divisions are located in
northwestern and central parts of Russia.
Although these territories are not prone
to earthquakes or natural disasters,
the Company’s oil production operations are
concentrated in harsh climate areas, which
may have a negative eff ect on operational
performance. Products are exported through
ports on the Black Sea and the Baltic Sea,
which may be closed because of storms or
diffi cult ice conditions. One may also expect
material delivery interruptions to territories
with limited access.
FINANCIAL RISKS
Surgutneftegas sells its products on
foreign and domestic markets. The Company
earns a signifi cant part of its revenue from its
operating activities in foreign currency while
its production costs are denominated mostly
in rubles. In addition, investments in foreign
currency form a large part of the Company’s
fi nancial reserves. Therefore, any fl uctuations
in the ruble exchange rate create risks for
the Company. These risks may to some
extent be mitigated through multi-currency
investment of the Company’s fi nancial
reserves and currency risk assessment and
accounting when planning its activities.
The Company also incurs moderate
infl ation risk since infl ation growth may
result in additional expenses and reduction
of profi ts, as well as loss of actual value of
its accounts receivable. Although unable to
infl uence the infl ation rate, the Company is
striving to optimize consequences of infl ation
risks through regular evaluation of possible
price fl uctuation scenarios and their impact
on the operating activities and investment
projects. Moreover, the Company focuses
on production cost optimization, tenders,
development of in-house and auxiliary
services, suppliers’ diversifi cation, and longterm
cooperation with its contractors.
Fluctuations in the market interest
rates do not have a signifi cant impact on
the Company’s fi nancial performance since
the Company does not raise borrowed funds
and fi nances its activities itself. Changes
related to bank interest rates may create
the risk of lower rate of return on deposits.
To manage the risk, the Company monitors
and reviews the current interest rates,
implements maturity diversifi cation of its
monetary funds, and conducts business
transactions at a fi xed deposit rate, which
results in mitigation of interest risks.
The Company also incurs moderate risks
of lost profi t since most funds are deposited
in bank accounts and the Company may earn
less profi t due to fl uctuations in exchange
rates and deposit interest rates.
Surgutneftegas manages credit risks which
mostly aff ect the accounts receivable via
their monitoring and assessment. To this end,
the Company takes into account the fi nancial
position of the buyers and their credit history,
controls the contracting process, and forms
reserves for accounts receivable depreciation.
The Company’s liquidity position remains
strong. Surgutneftegas takes a well-balanced
approach to current capital fi nancing and
controls planned cash fl ows and payments
on a regular basis. The Company’s short-term
liabilities mainly involve accounts payable.
Thus, Surgutneftegas is able to settle its
liability in a timely manner, and the value at
risk is minimal.
The Company does not hedge fi nancial
risks but indemnifi es some of its assets and
transactions against obligation risks.

LEGAL RISKS
The Company’s development prospects
may be limited by changes in the legal and
regulatory system for the oil and gas sector.
Such changes may result from major events in
the political, economic, and social spheres.
The Company’s legal risks include risks
in the area of exchange, customs and
antimonopoly regulation, tax risks, and
possible changes in licensing requirements
for core operations. Substantial risks for
the Company also include changes in
the forestry, water, and land law and more
stringent environmental regulations.
Surgutneftegas earns a signifi cant part of
its revenue in foreign currency from foreign
trade transactions. Therefore, any changes
related to currency control may adversely
aff ect the Company’s fi nancial performance.
However, the recent initiatives of the Russian
Government towards currency control
liberalization mitigate these potential risks.
The Company is exposed to the risk
of possible changes in customs and tax
regulation. For example, the decree of
the Russian Government dated 1 May 2011
increased the export duty on gasoline (to 90%
of the crude oil duty) to boost deliveries to
the domestic market, which made gasoline
exports less profi table. The taxation system is
not stable enough, with various modifi cation
options discussed from time to time, which
aff ects the reliability of the Company’s plans
and estimates. Surgutneftegas closely follows
all changes to the customs and tax legislation,
evaluates their possible implications, and
adjusts its operations as appropriate.
The Company runs the risk of increasingly
stringent competition law with regard to
sales of oil products, which may undermine
the performance of the Company’s marketing
sector. In an eff ort to develop market pricing
mechanisms, the Company is taking an active
part in trading of oil products on St. Petersburg
International Mercantile Exchange.
Surgutneftegas operates on the basis of
subsoil licenses; therefore, any changes in
licensing requirements and procedures may
have adverse consequences for the Company.
When carrying out its operations,
Surgutneftegas complies with
the requirements of the applicable law and
license agreements, fulfi lls its obligations
to partners, and minimizes the risk of early
termination, suspension, or restrictions on
subsoil rights, as well as the impact of other
legal risks. Moreover, the Company takes part
in discussing proposed legislation concerning
its business and includes any prospective
changes in its plans and estimates.
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
27

28
KEY PERFORMANCE INDICATORS
OF OJSC “SURGUTNEFTEGAS”
CONSOLIDATED OPERATING RESULTS
Indicator Unit 2011
Crude oil production mn tons 60.8
Gas production bcm 13.0
Primary hydrocarbon processing mn tons 21.1
Output of main types of petroleum products: mn tons 20.1
– gasoline 2.3
– diesel fuel 5.0
– jet kero 0.8
– fuel oil 10.9
– others 1.1
Power generation mn kWh 4,182
Gas processing bcm 7.4
Total capital investments: mn RUB 171,782
– oil production 142,850
– oil refi ning 27,845
– marketing 1,086
New oil wells brought onstream wells 1,403
Gas stations put into operation and upgraded stations 17
Average number of production wells onstream wells 18,668
Gas stations in operation stations 298
Average number of personnel people 111,497
– oil production 99,842
– oil refi ning 7,522
– marketing 4,133
FINANCIAL PERFORMANCE
Revenue from sale of goods, works, services mn RUB 754,431
Cost of goods, works and services sold mn RUB 481,315
Retained profi t (net profi t) mn RUB 233,158
Average annual value of assets mn RUB 1,521,459
Sales margin
Dividend per share*:
% 28.8
– ordinary share kop. 60
– preferred share kop. 215
* Recommended by the Board of Directors.

Production Operation
(Report of the Board of Directors of OJSC “Surgutneftegas”
on the Company’s Performance
and Business Priorities Development Prospects)

30
RESOURCE POLICY
EXTENDED RESERVE REPLACEMENT CREATES SUSTAINABLE GROWTH
FOR THE COMPANY. OUR UNRIVALLED OPERATIONAL EXPERIENCE IN
WESTERN SIBERIA ALLOWS US TO SUCCEED IN RESERVE REPLACEMENT IN
THE REGION AND CONSIDER IT AS THE BASIS FOR FUTURE DEVELOPMENT.
MOREOVER, SURGUTNEFTEGAS STEADILY KEEPS EXTENDING ITS LICENSE
PORTFOLIO AND IS ENGAGED IN GEOLOGICAL EXPLORATION IN EASTERN
SIBERIA AND TIMANO-PECHORA OIL AND GAS PROVINCES TO IMPLEMENT
ITS STRATEGY IN TERMS OF GEOLOGICAL DIVERSIFICATION
OF PRODUCTION ASSETS.
As of the end of 2011, the Company’s
license portfolio comprised 153 licenses
for subsoil use, including 53 licenses for
exploration and production, 60 licenses
for geological survey, exploration and
production of oil and gas, and 40 licenses
for prospecting and evaluation of
hydrocarbon fi elds.
In the reporting year, the Company carried
out geological exploration in 102 license areas
within three regions of its operation: Western
Siberia, Eastern Siberia and Timano-Pechora.
In 2011, the Company obtained 6 licenses
for the right to produce hydrocarbons,
including 4 licenses gained on tender
basis and 3 licenses acquired for the
fi elds discovered earlier, and 2 licenses for
geological survey, prospecting and evaluation
of fi elds, including 1 license gained within
the government contract.
To enhance effi ciency of prospecting
and exploration of hydrocarbon reserves
and mitigate geological risks, the Company
applies cutting-edge seismic techniques.
In 2011, 2D seismic acquisition increased by
30% and reached 6.5 thousand linear km
and 3D seismic acquisition grew by 78% to
1.2 thousand sq km. Six wells underwent
vertical seismic profi le survey. Based on
the survey results, 114 sites in 19 structures
with 49 mn tons of recoverable oil reserves
were prepared for deep exploratory drilling.
In the year under review, prospecting and
exploratory drilling reached 216.3 thousand
meters with 84 wells completed. Due to high
quality of exploration works, the exploratory
drilling effi ciency accounted for over 70%.
In 2011, Surgutneftegas discovered
2 oil fi elds in Khanty-Mansiysky Autonomous
Okrug – Yugra, as well as 33 oil deposits

including 29 in Western Siberia, 3 in Eastern
Siberia, 1 in Timano-Pechora, and 1 gascondensate
deposit in the Eastern Siberian
region.
Exploration is a complex production
process involving highly qualifi ed personnel
and teamwork, as well as innovative solutions
and technologies. To support and analyze its
exploration activities, in 2011 Surgutneftegas
established the Geological Support Center.
The mission of the Center is to support
and assess the exploration works that have
been performed by the Company, estimate
hydrocarbon reserves, as well as carry out
a detailed survey of the geological structure
of oil fi elds in order to determine resource
potential of residual oil and gas zones and
further design geological and engineering
operations to enhance production effi ciency.
The Company places great emphasis on
research and development activities. In 2011,
we performed more than 80 appraisal surveys
on the geological structure of areas and fi elds,
gained expert review of the State Reserves
Commission on our reserve estimation
reports for 3 oil and gas fi elds, and submitted
materials for on-going estimate of 35 fi elds.
As a result of the activities, in the year
under review, the recoverable C1+C2 oil
reserves increment reached 136 mn tons
including as much as 95 mn tons of
C1 reserves. Thus, commercial reserve
replacement allowed the Company to
replenish its annual production output by
1.5 times.
For the last fi ve years, the Company has
increased remaining recoverable reserves of
ABC1 categories by 9% and produced over
300 mn tons of oil.
WESTERN SIBERIA
REGIONAL BREAKDOWN OF OJSC “SURGUTNEFTEGAS” LICENSES
Western Siberia remains the key area of
the Company’s operation. Surgutneftegas is
further engaged in exploration activities in
the region aimed at stable reserve increment
able to replenish current production levels. In
2011, exploratory drilling operations reached
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
31

32
150 thousand meters, which translates into
70% of the total meterage of exploratory
drilling.
In the reporting year, Khanty-Mansiysky
Autonomous Okrug – Yugra accounted for
52% or 111.6 thousand meters of the total
prospecting and exploratory drilling.
The operations covered 59 license areas
including 19 exploration areas. The Company
completed 36 wells, discovered 2 fi elds,
the Khoshiplorskoye fi eld and the Logachev
fi eld, and 29 new oil deposits at the fi elds
discovered earlier. We are following our
program for additional exploration of
underlying beds by sidetracking from wells
under development due to which 4 oil fi elds
yielded commercial infl ow. Thus,
the cumulative C1+C2 reserves growth in
the Okrug exceeded 93 mn tons.
Surgutneftegas owns 8 licenses for
the right to use subsoil resources sites
within Yamalo-Nenetsky Autonomous
Okrug. In the year under review,
prospecting and exploratory drilling
reached 20.8 thousand meters with 9 wells
completed. Surgutneftegas performed fi eld
seismic surveys of 990 linear kilometers,
as well as offi ce study involving data obtained
from the Soimlorsky, Severo-Soimlorsky,
Vostochno-Soimlorsky and Maloperevalny
license areas.
In 2011, prospecting and exploration
drilling in other West Siberian regions
С1+С2 RECOVERABLE RESERVES GROWTH
mn tons
2011
2010
2009
2008
2007
exceeded 17 thousand meters with 6 wells
completed. To keep geological structure of
reserves current, we carried out reprocessing
and reinterpretation of the seismic data of
past years and obtained detailed specifi cation
of the structures which had been discovered
earlier. In the reporting year, based on
the results of exploration activities within
a number of license areas, the Company
resolved to terminate the right to use subsoil
resources earlier and transfer the areas at
which further exploration had been found
inexpedient to non-licensed stock of areas.
EASTERN SIBERIA
Surgutneftegas owns 26 subsoil licenses
in Eastern Siberia. The Company is striving to
increase exploration to develop the resource
potential of the region and create sound
foundation for future production activities.
In 2011, prospecting and exploration
drilling grew by 14% vs. 2010 and totaled over
50 thousand meters. Meanwhile, 2D seismic
surveys rose by 34% and covered almost
5 thousand linear kilometers, and 3D seismic
surveys increased by 3.5 times to 840 sq km.
Surgutneftegas owns 19 licenses
for the right to use subsoil resources in
the Republic of Sakha (Yakutia). In the year
under review, prospecting and exploratory
drilling within the region amounted to
43.6 thousand meters; 13 prospecting wells
and 16 exploration wells were completed.
81
110
102
119
136

The drilling effi ciency reached 79%.
The Company carried out 2D and 3D seismic
surveys covering 4.8 thousand linear km
and 840 sq km, respectively. Besides, two
wells underwent vertical seismic profi le
survey. Two new oil deposits were discovered
at the Talakanskoye fi eld, 1 oil deposit at
the Severo-Talakanskoye fi eld and 1 gas
condensate deposit at the Vostochno-
Alinskoye fi eld. The cumulative growth
of C1+C2 reserves including oil and gas
condensate amounted to 41.7 mn tons that is
7.7 times higher than the annual crude output
in the region.
Surgutneftegas owns 5 licenses in
Irkutskaya Oblast acquired to explore and
produce crude hydrocarbons. In 2011,
exploratory drilling meterage reached
6.4 thousand meters. Seismic surveys of
the Pilyudinsky, Ichersky, Nizhnenepsky
and Rassokhinsky license areas allowed
the Company to ensure increment of
prospective oil reserves. The seismic survey
program was completed at all licensed areas
of the Company in the Oblast.
In Krasnoyarsky Krai, we own the Studeny
and Agapsky license areas. In the reporting
year, the Company performed analysis of
G&G data and revised seismic profi les of
the Studeny license area to make the research
more detailed and discover new oil deposits.
As for the Agapsky license area, in 2011
Surgutneftegas covered 100 linear km
REPLACEMENT OF C1+C2 OIL RESERVES IN 2007–2011
mn tons
Oil
output
C1+C2
reserves
growth
of seismic profi les being well ahead of
the schedule specifi ed in the licensing
agreement for seismic surveys.
TIMANO-PECHORA
Timano-Pechora oil and gas province is
the Company’s promising area. Thus, our main
objective for today is to discover, assess and
prepare reserves for hydrocarbon production
there.
Surgutneftegas has 9 licenses for the use
of subsoil resources. In the year under
review, prospecting and exploratory drilling
reached 16.4 thousand meters with 2 wells
completed. As the result of the prospecting
and exploration eff orts, one oil deposit was
discovered.
As part of its R&D program, Surgutneftegas
reprocessed and reinterpreted primary
seismic data obtained from the Nenetsky and
Korobkovsky license areas and created 3D
geological models of 7 productive formations.
The Company continued to perform core
treatment, analyze the composition and
properties of formation fl uids, and justify
reserve estimate parameters.
INTERNATIONAL PROJECTS
OJSC “Surgutneftegas” participates in
the project of the development of Junin-6
block located in the Orinoco Oil Belt in
the Bolivarian Republic of Venezuela.
306
548
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
33

34
PROSPECTING AND EXPLORATORY
DRILLING BY REGIONS OF OPERATIONS
IN 2011
69% Western Siberia
23% Eastern Siberia
8% Timano-Pechora
The Company is the owner of 20 per cent
stake in LLC “National Petroleum Consortium”
(LLC “NNK”) which promotes interests
of the Russian oil companies within JV
“PetroMiranda” established to develop Junin-6
block. Forty per cent of PetroMiranda belongs
to LLC “NNK” and 60 per cent is owned by
Corporacion Venezolana del Petroleo S.A.,
a subsidiary of the state-owned oil and gas
company “Petroleos de Venezuela S.A”.
The block is located in the central part
of Orinoco Oil Belt within the territory of
447.85 sq km and has estimated reserves of
10.96 bn barrels of recoverable heavy oil.
In 2011, the joint venture continued
implementing the fi rst phase of the project
related to the seismic surveys and design
studies. The joint venture was also engaged
in preparation of strat well drill sites, at one
of which it launched assembling a drilling rig
at the end of the reporting year. The project
participants are considering options for oil
production acceleration in the northern part
of the block to be started in as early as 2012.
PLANS AND PROSPECTS
In 2012, OJSC “Surgutneftegas” will
continue its additional exploration operations
in the existing license areas, as well as
acquiring new reserves in every region of its
presence to expand its license portfolio and
ensure long-term sustainability.
Prospecting and exploratory drilling
is expected to grow by about 4% to
224.7 thousand meters and the main scope
of operations (67%) is to be performed in
Western Siberia. 2D seismic surveys are
planned to cover over 3.1 thousand linear km.
The Company intends to increase detailed 3D
surveys by 1.6 times to 1.9 thousand sq km.

OIL AND GAS PRODUCTION
IN THE UPSTREAM SECTOR, SURGUTNEFTEGAS FOLLOWS BALANCED
DEVELOPMENT POLICY BASED ON COMPLETE RESOURCE EXTRACTION
POSSIBLE AND ADVANCED TECHNOLOGIES OF HYDROCARBONS
PRODUCTION AND EOR METHODS.
In the year under review, the Company
increased its oil production by 2.1% against
the previous year to 60.8 mn tons
and produced 13.0 bcm of gas.
The investments in oil and gas production
amounted to RUB 142.8 bn with 5.8% of
organic investment growth. The remaining
INVESTMENTS IN OIL PRODUCTION
RUB bn
2011
2010
2009
2008
2007
increase relates to the 2011 year changes
in accounting of sidetracking operations.
As for the investment structure, the largest
part of investments (85.6%) was made in
the core region of the Company’s operation –
Western Siberia, 13.7% in Eastern Siberia and
0.6% in Timano-Pechora oil and gas province.
86.4
93.6
117.5
111.5
142.8
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
35

36
CRUDE OIL PRODUCTION
In 2011, OJSC “Surgutneftegas” was
engaged in development of 60 oil fi elds
including 57 fi elds in Western Siberia and
3 fi elds in Eastern Siberia.
Over 66% of the total production output
comes from the Company’s ten largest fi elds
many of which are mature, with hard-torecover
reserves and high water cut, which
requires secondary and tertiary stimulation
as their production rate is declining. However,
the Talakanskoye, Severo-Labatyuganskoye
and Rogozhnikovskoye fi elds which have been
commissioned recently make a signifi cant
contribution to the Company’s oil production.
We are striving to develop new
hydrocarbon reserves on a stable and
continuous basis. To this end, Surgutneftegas
commissioned 5 oil fi elds in the reporting
year, including the Vostochno-Studenoye,
Zapadno-Sukuryaunskoye, Losevoye and
Suryeganskoye fi elds in Western Siberia
and Severo-Talakanskoye fi eld in Eastern
Siberia. For fi ve last years, the Company
commissioned 13 new oil fi elds.
OIL PRODUCTION IN 2011 BY FIELD
In 2011, the Company’s production
increased by 1.2 mn tons mostly due to
production growth of 62% in Eastern Siberia.
The Company showed minimum decline
of the production rate (less than 1.5%)
for the last 5 years in Western Siberia,
the traditional region of its operation,
mostly by virtue of expanded exploratory
drilling scope and various EOR methods.
In the year under review, exploratory
drilling exceeded 4,530 thousand meters
(a 7.9% increase vs. 2010). The Company
commissioned 1,403 new oil wells with
the average daily fl ow rate of 26 tons.
The Company’s drilling divisions which have
both extensive experience and developed
material and technical base, and are able
to perform drilling operations promptly
and to a high standard, contribute greatly
to oil production growth. Thus, in the year
under review, 26 drilling crews drilled over
100 thousand m.
In 2011, the average active well
count increased by 4% and amounted to
18,668 wells. Inactive well stock consisted
Fields Output, thousand tons
Fedorovskoye 8,457
Talakanskoye 5,271
Severo-Labatyuganskoye 4,952
Lyantorskoye 4,950
Zapadno-Surgutskoye 3,349
Bystrinskoye 3,235
Rogozhnikovskoye 2,767
Konitlorskoye 2,581
Vachimskoye 2,406
Russkinskoye 2,226
Other 20,587

of 1,372 wells or 6.8% of the operating well
stock. In the reporting year, the Company
kept maintaining the stock utilization at
a high level of 0.934, which proves the
effi ciency of the operating conditions and
methods. As part of the eff orts to enhance
reliability of oilfi eld and pumping equipment
and introduce new facilities and technologies,
the average time between maintenance of
the Company’s producing wells in the year
under review reached 827 days.
To enhance oil recovery, we implement
workover programs to stimulate productive
formations taking into account the geological
structure and physical parameters of every
AVERAGE OPERATING WELL STOCK
wells
2011
2010
2009
2008
2007
OIL WELLS COMMISSIONED
wells
Directional wells
Horizontal wells
2011
2010
2009
2008
2007
deposit. In 2011, the Company performed
693 sidetracking maintenance operations
(a 5% increase vs. 2010), 736 hydraulic
fracturing operations within its operating
stock (a 17% increase vs. 2010) and
commissioned 156 horizontal wells.
The cumulative eff ect from the program made
it possible to produce over 13 mn tons of
additional oil.
In 2011, the Company was making eff orts
to reduce unwanted fl uids production as
part of its program on periodic operation
of highly watered well stock and targeted
implementation program on operation of idle
and non-commercial wells. To mitigate water
16,308
16,727
972
982
17,262
1,131
17,950
1,305
18,668
1,403
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
37

38
injection amount, we applied the improved
secondary production system and water
fl ooding program which are aimed at water
cut reduction.
Surgutneftegas actively develops and
applies in-house EOR technologies, as well
as cooperates with the leading service
companies to improve geological modeling
process and choose the best development
techniques.
Field development in Eastern Siberia
made it possible to compensate for declining
oil output in traditional regions of the
Company’s presence. Today, we operate
3 fi elds in the region: the Talakanskoye,
Alinskoye and Severo-Talakanskoye fi elds
where the production output reached
5.4 mn tons in 2011.
TOTAL UTILIZATION RATIO
OF OPERATING WELL STOCK
2011
2010
2009
2008
2007
INACTIVE WELL STOCK AT YEAR END
%
2011
2010
2009
2008
2007
Continuous development drilling
expansion allowed the Company to drill
207 thousand m in 2011 (a 23% increase vs.
2010) resulting in 121 new wells with high
performance of as much as 55 tons of
oil daily.
Proper infrastructure created by
the Company in the region ensures
success development of new fi elds under
diffi cult production conditions. In the
reporting year, Surgutneftegas continued
developing the infrastructure. To this end,
the Company completed construction of
oil and gas pipelines and power supply lines
at the Severo-Talakanskoye fi eld, as well as
launched construction of the Company’s
airport to reduce costs and delays and
improve material supply in the region.
0.934
0.929
0.924
0.923
6.7
6.7
0.935
6.8
7.5
7.6

GAS PRODUCTION
On the gas production side,
OJSC “Surgutneftegas” is striving to enhanced
gas use effi ciency and maximum utilization
rate. Every year, the Company takes planned
actions to improve the existing gas gathering
infrastructure and commissions new facilities
to enhance transportation capacity.
Surgutneftegas produces mainly
associated gas; therefore, its production
amount directly depends on the Company’s
oil output. Declining oil production from
the fi elds with the highest gas ratio is
accompanied by lower associated gas
production. In 2011, the Company produced
12.9 bcm of associated petroleum gas and
11.4 mn cub m of natural gas.
In the year under review, gas utilization
rate hit 97.8% and reached a record high
among the Russian oil companies.
We are striving to eff ectively utilize
produced gas. Thus, in 2011, the major
portion of gas produced (55%) was delivered
to the Company’s gas processing plant,
21% was sold domestically, over 11% was
supplied to the Company’s gas turbine power
plants (GTPP) and gas piston power plants
(GPPP), and 13% was consumed as fuel and
used for process purposes.
In 2011, Surgutneftegas delivered
1,473 mn cub m of gas to its power plants.
As of the end of 2011, the Company operated
8 transport compressor stations, 1 compressor
station for reservoir repressuring by gas
injection and 17 compressor stations of lowstage
separation at its fi elds.
In the year under review, the Company
upgraded operating equipment, expanded
GAS SUPPLY ROUTES
55% Supplied to the Company’s gas
processing plant
21% Supplied to domestic market
13% Consumed as fuel and used
for process purposes
11% Used for power generation
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
39

40
gas utilization capacity, mounted 19 gas
distribution units of two stages of separation,
performed maintenance overhaul within
22 transport compressor stations, as well as
commissioned 3 compressor stations of fi nal
separation stages, a gas processing unit of
the compressor station at the Talakanskoye
fi eld, a gas compression and processing
unit of the central oil gathering unit at
the Rogozhnikovskoye fi eld, and built nearly
170 km of gas pipelines.
COST CONTROL PROGRAM
Year after year, OJSC “Surgutneftegas”
implements its comprehensive cost-cutting
program designed to ensure control
and mitigate expenditures within
the Company’s business. The program is
aimed at improvement of the technical
and organizational levels of production,
enhancement of effi ciency of production
facilities and key assets, saving of raw and
other materials, import substitution and
reuse of equipment.
In 2011, the economic benefi t of
the program totaled more than RUB 5 bn or
GAS UTILIZATION RATE
%
2011
2010
2009
2008
2007
RUB 82.7 per ton of oil produced, including
44% for auxiliary operations, 26% for core
operations, 14% for drilling and capital
construction, and 2% for social sphere.
Energy saving is considered as one of
the principal priorities within the Company’s
cost saving program. As a result, we are
actively engaged in implementing energyeffi
cient technologies, optimization of electric
system performance and regulation of power
consumption. As part of the program,
in the year under review, Surgutneftegas
focused on increasing capacity utilization
of the existing gas turbine power plants at
the Konitlorskoye and Rogozhnikovskoye
fi elds, as well as decommissioned highly
watered and non-commercial production
wells and classifi ed them under diff erent
categories, replaced its pumping equipment
and implemented electric motor converters
of various units. In the reporting year,
the economic benefi t reached over
RUB 718 mn, power savings amounted
to 573 MW and energy consumption was
reduced by 343 mn kWh.
Reuse of production materials and
implementation of special equipment and
95.9
95.4
94.3
97.8
96.9

technologies allow Surgutneftegas
to reduce materials consumption and
production time when performing specifi c
types of operations. In 2011, the materials
reuse program brought as much
as RUB 1 bn of the economic benefi t.
As part of the import substitution initiative,
the Company cooperates with domestic
equipment manufacturers and R&D centers
to search opportunities to make the
equipment identical to that produced
abroad. Such cooperation provides signifi cant
economic benefi ts and makes it possible to
build long-term relations with the partners,
as well as drives scientifi c and technical
development of the Russian economy.
In the year under review, the economic
benefi t of the program amounted to
RUB 916 mn.
Due to its well-organized service units,
the Company is able to perform cost control
within the whole production cycle in line with
high quality of the works performed.
High-tech equipment of the service units
together with experienced and highly
qualifi ed personnel contribute greatly to
fulfi lling the Company’s tasks.
COST SAVINGS BREAKDOWN
IN 2011
26% Core operations
44% Auxiliary operations
14% Construction
14% Drilling
2% Social sphere
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
41

42
PLANS AND PROSPECTS
Surgutneftegas is planning to follow
its strategy to expand oil production in
new regions of its operation and stabilize
the production rate in Western Siberia using
its strong ability to perform considerable
volumes of expedite and quality exploratory
drilling and accumulated experience of
geological and engineering operations.
In 2012, the Company intends to produce
61.3 mn tons of oil and 12.5 bcm of gas. Oil
production in Eastern Siberia is expected to
grow by 22% to 6.6 mn tons (over 10% of
the Company’s total output).
In upcoming year, we are to bring into
development 2 new oil fi elds in Western
Siberia: the Vostochno-Sakhalinskoye and
Soimlorskoye fi elds, commission 1,295 wells;
meanwhile, development drilling is projected
TOTAL COST SAVINGS ECONOMIC EFFECT
RUB mn
2011
2010
2009
2008
2007
Import substitution program
Equipment reuse program
Other programs
to reach 4.3 mn m including as much
as 200 thousand m to be drilled
in Eastern Siberia.
To maintain its oil output, the Company
will continue implementing the EOR workover
program which comprises more than
6,800 well-operations of physicochemical
eff ect on an oil reservoir.
As for the gas production, Surgutneftegas
is to further improve the associated gas
gathering system via designing and
launching construction of a compressor
station at the Muryaunskoye fi eld and facility
complex of external gas transport from
the Rogozhnikovskoye fi eld, commissioning
two GTPPs at the Vachimskoye and
Vostochno-Surgutskoye fi elds, laying almost
116 km of gas pipelines. The Company’s gas
utilization rate is expected to reach 97.9%.
5,028
4,783
4,759
4,636
5,498

OIL REFINING AND GAS PROCESSING
OIL REFINING AND GAS PROCESSING REPRESENT ONE OF THE KEY
ELEMENTS WITHIN THE COMPANY’S PRODUCTION CHAIN. TO THIS END,
OUR PRIORITIES INCLUDE HIGHER CONVERSION RATIO AND BETTER
QUALITY OF THE PRODUCTS MEETING THE WORLD STANDARDS THROUGH
THE MAXIMUM EFFICIENT UTILIZATION OF THE EXISTING BUSINESS ASSETS,
REVAMPING AND CONSTRUCTION OF THE OPERATING FACILITIES.
OIL REFINING
The Company’s refi nery, LLC “KINEF”,
is the largest Russian refi nery in terms of
throughput allowing for refi ning as much
as 35% of oil produced by Surgutneftegas.
The refi nery has been successfully operating
in northwestern part of Russia for already
45 years and has became a high-tech and
constantly developing company which
incorporates the complexes LAB/LABS and
IzoFlex producing waterproofi ng and roofi ng
materials, and feedstock for detergents.
In 2011, refi ning throughput totaled
21.1 mn tons of hydrocarbons, including
2.3 mn tons of mogas, 5.0 mn tons of diesel
fuel, 0.8 mn tons of jet kero, 10.9 mn tons
of mazut, as well as a wide range of other
petroleum products.
In the reporting year, the Company
enhanced quality of motor fuels, lowered
production of the AI-76 gasoline and
increased production of the AI-95 gasoline
which corresponds to Class 4 and Class 5
standards under the Technical Regulations.
This became possible due to commissioning
of a benzene extractive distillation unit,
higher yield of dissolvent (nefras), maximum
use of an isomerization unit and a catalytic
reformer, as well as inclusion of isopentane
into gasoline production.
Steady operation and maximum utilization
of diesel hydro-treaters,as well as use
of the second block of the L-24/6 hydrotreater
for diesel winterized fuel conversion
allowed the Company to improve its
environmental product profi le. As a result,
since October 2011, Surgutneftegas
abandoned production of diesel fuels
with sulfur content of 0.2%.
Along with continuous throughput
LLC “KINEF” is persistently revamping
and upgrading its production facilities
and overhauling the equipment. In 2011,
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
43

44
Surgutneftegas invested RUB 4.2 bn in
retrofi tting and upgrading of the refi nery.
As part of its scheduled overhaul program,
the Company maintained the ELOU-AT-1
crude oil distillation unit, performed
fi nal testing of the AT-6 unit and put into
production run the modernized process
control system which proved its value at
the ABT-6 unit and ABT-2 unit. The system
is equipped with “virtual sensors” (quality
analyzers) which make it diff er from other
systems. The program is able to perform
real-time assessment of the product quality
parameters from available technical data,
forecast the parameters for the nearest
hours and execute feed forward operations
to support set-up mode. The system is
distinguished by its auto optimum mode
selection which is applied after the unit
reaches target values, and makes it possible to
save energy and enhance topping processing.
In 2011, the Company began using natural
gas as fuel for some of the units to enhance
production energy effi ciency and mitigate air
emissions. Commissioning of new facilities at
the refi nery will trigger a rise in natural gas
consumption. Surgutneftegas will deliver
natural gas to the deeper refi ning complex
which is expected to become the Company’s
primary gas consumer.
Since the Company is planning to increase
production of light oils, it was decided to
launch construction of an automated on-spot
REFINERY OUTPUT
mn tons
2011
2010
2009
2008
2007
unit which will meet today’s environmental
requirements having hermetic loading
arms and tank vapor recovery system. Daily
estimated output of the unit will amount to
19.8 thousand tons of commercial yield.
Currently, we are fi nishing construction
of the deeper refi ning complex based on
residue hydrocracking processes which is
considered as the largest one in Europe.
The complex will produce up to 4.9 mn tons
of mazut, as well as high-quality diesel
fuel and jet kero. At the end of 2011,
Surgutneftegas carried out comprehensive
testing of a hydrodewaxing unit
(with 2 mn tons/year capacity) constructed
within the complex and obtained fi rst
end products required for production
of hydrotreated diesel fuel with ultra-low
sulfur content and enhanced low-temperature
properties. The Company performed
commissioning and start-up of an elemental
sulfur unit and load-center substation
No. 2 which will deliver energy to the complex
facilities, as well as completed and put into
operation the extractive distillation unit
which enables to reduce benzene content
in gasoline as required by Euro-4 standards.
Meanwhile, we will increase production
of benzene to meet demand of chemical
industry.
Thus, in the reporting year, the Company’s
investment in oil refi ning totaled over
RUB 27.8 bn.
21.1
20.4
20.6
19.9
21.3

PLANS AND PROSPECTS
In 2012, Surgutneftegas is expected to
refi ne as much as 20 mn tons of hydrocarbons
with investments to be maintained at the level
of 2011.
The Company intends to continue
technical upgrading of the existing facilities
involving scheduled replacement of
the outdated equipment.
The deeper refi ning complex is to be
commissioned on a phase base within
the next year. The fi rst startup phase will
include commissioning of L-24/10-2000
hydrodewaxing unit, second line of
the elemental sulfur unit and load-center
substation No. 2. The Company is expecting
to commission the complex by the end
of 2012, as well as complete construction
of the on-spot system for loading light
petroleum products.
In 2012, LLC “KINEF” is projected to
produce 0.8 mn tons of diesel fuel of Euro-4
and Euro-5 standards.
In the short term, Surgutneftegas is
planning to construct LK-2B complex which
will make it possible to produce gasoline
under Euro-5 standard.
INVESTMENTS IN OIL REFINING
RUB bn
2011
2010
2009
2008
2007
8.1
GAS PROCESSING
Gas processing is the fundamental part
of the Company’s integrated system of
gathering and utilization of associated
petroleum gas. After its purchase in 2002,
the gas processing plant has underwent
a large-scale development resulting in higher
processing capacity, upgraded technological
infrastructure and application of new
automated process unit control systems. In
2011, the Company processed 7.4 bcm of gas.
The gas processing plant is equipped with
the cutting edge and high-tech facilities.
Surgutneftegas puts much eff ort into
upgrading and revamping of its production
facilities. To this end, in the year under review,
we replaced durable equipment during
the turnaround maintenance of gas
compression and processing units No. 1 and
No. 2, put into operation waste and dry gas
return pipelines in gas processing shop No. 1
and gas storage facilities, and set variable
frequency drives for the delivery pumps
and ventilators of boiler house No. 1.
These measures allowed the Company to
enhance technical process effi ciency, reduce
energy consumption, as well as ensure
9.8
12.3
20.8
27.8
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
45

46
trouble-free operation of equipment. Thus,
in 2011, the Company’s capital investments
totaled RUB 138 mn.
Surgutneftegas produces a wide range
of marketable end products. In the reporting
year, the Company produced 7.1 bcm
of dry stripping gas and as much as
760 thousand tons of liquid hydrocarbons
(a 5.3% increase vs. 2010).
In 2011, a signifi cant change in
the Company’s product output structure took
place: share of natural gas liquids (NGL)
in the total output fell from 69% to 12%,
whereas production of propane-butane grew
and reached about 70%. It was mostly due to
commissioning of a propane-butane block,
since the product has great value added and
is in sustainable demand in the market.
GAS PROCESSING OUTPUT
bcm
2011
2010
2009
2008
2007
Gas processing is controlled in real-time
by automated control system “OKO TsITS”
allowing for gas processing control and
operational decision making in case
of emergency equipment shutdown.
PLANS AND PROSPECTS
In 2012, our projected investments in gas
processing are to amount to RUB 715 mn.
To this end, the Company will be focused on
construction of new facilities and revamping
of the existing ones, as well as supporting its
key assets.
In the upcoming year, Surgutneftegas
expects to process 7.2 bcm of gas and
produce over 670 thousand tons of liquid
hydrocarbons.
6.9
7.3
7.2
7.2
7.4

SALES OF PETROLEUM PRODUCTS
AS FOR PETROLEUM PRODUCTS MARKETING, OJSC “SURGUTNEFTEGAS” IS
PRIMARILY AIMED AT MAINTAINING AND STRENGTHENING ITS COMPETITIVE
POSITION PROVIDING CONTINUOUS SERVICE IMPROVEMENT. IN RESPONSE
TO THE OBJECTIVES MENTIONED ABOVE, THE COMPANY’S MARKETING
SUBSIDIARIES CONSISTENTLY IMPLEMENT THE PROGRAM OF GAS STATION
CONSTRUCTION AND OVERHAUL, EXPAND MARKETING NETWORK
OF THE RELATED GOODS AND SERVICES, OPTIMIZE THE SUPPLY LOGISTICS
AND ASSET PROFILE.
Surgutneftegas marketing subsidiaries
located mainly in the northwest of Russia are
of paramount importance for the consumers
of the region in terms of fuel supply.
The subsidiaries conduct wholesaling,
INVESTMENTS IN MARKETING
RUB mn
2011
2010
2009
2008
2007
retailing and storage of petroleum products
and render supplementary services.
In 2011, Surgutneftegas marketing
network sold 1,600 thousand tons
of petroleum products, including
553
712
693
842
1,086
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
47

48
898 thousand tons, or 56% retailed through
its gas stations. In the reporting year,
the boosted fuel demand on Russia’s domestic
market and eff ective marketing activity
allowed the Company to demonstrate
a 21% rise in retail sales, when each gas
station sold 8.3 tons of petroleum
products per day.
SALES VOLUMES OF THE MARKETING SUBSIDIARIES
‘000 tons
2011
2010
2009
2008
2007
Other petroleum products
Fuel oil
Diesel oil
Gasoline
AVERAGE DAILY SALES OF PETROLEUM PRODUCTS PER FILLING STATION
tons/day
2011
2010
2009
2008
2007
At the end of 2011, the Company ran
298 gas stations. All marketing subsidiaries
upgrade and overhaul their gas stations.
For the last fi ve years the amount of capital
investments in the sector has doubled which
enabled Surgutneftegas to vastly reconstruct
buildings and structures, upgrade the existing
gas stations and perform the construction
1,000
1,251
5.2
1,371
5.6
6.2
6.8
1,600
1,533
8.3

of the new ones, as well as purchase
a number of eff ective assets.
In the year under review, capital
investments amounted to RUB 1.1 bn,
which is 53% up compared to 2010,
whereby the Company overhauled
11 gas stations, acquired and constructed
6 new ones. All the overhauled gas stations
put into operation comply with up-to-date
quality and safety standards and have
a wide range of related service facilities.
Service is utterly crucial for modern
gas stations. So, the Company’s gas station
network off ers 288 convenience stores and
sales outlets, 25 cafés, 24 repair stations
and other social amenities. Surgutneftegas
revenue from the related activities shows
a sustainable upward trend. In 2011,
the previous period growth surpassed
13%, and it amounted to 20% of some gas
stations’ total revenue.
One of the ways to develop the Company’s
marketing network is the commissioning of
fully automatic gas stations enabling lower
construction and maintenance costs. Such
station requires relatively moderate-size
location, and one fuel-dispenser can run up to
100 fueling operations per day with various
grades of gasoline and diesel. Eff ective
operation of the marketing subsidiaries also
depends on reliable supply chain
of petroleum products to gas stations.
To improve its supply logistics, Surgutneftegas
has implemented and is operating satellite
vehicle tracking systems, “driver-traffi c
operator” communication systems,
1C:Transport Program, and performs
automatic control of fuel amount in tanks.
Surgutneftegas has an extended network
of oil tank farms; in order to improve
the Company’s asset profi le we carry out
annual analysis of the asset use effi ciency, lay
up and sell some of the capacities, modify
the employed facilities and bring them in
compliance with present-day requirements.
During the reporting year we conducted
tank inspection and calibration, together
with equipment replacement. Marketing
subsidiaries off er supplementary services
A BREAKDOWN OF THE SALES
COMPANIES’ TRADING VOLUME
IN 2011
43.9% Gasoline
31.6% Diesel oil
0.3% Fuel oil
24.2% Other petroleum products
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
49

50
to their customers, including cash and
non-cash payment by bank and fuel cards.
In 2011, almost 20% of all settlements were
made by electronic plastic cards used to pay
for fuel, goods and diff erent services,
and get discounts.
The Company’s marketing subsidiaries
have their own accredited testing laboratories
ensuring the fuel quality and compliance
with environmental standards. The quality
of the marketable petroleum products is
monitored at every stage of the fuel fl ow
process. Every day, laboratories select samples
of petroleum products upon their supply,
during storage and marketing from the oil
tank farms; besides, they conduct tests for
third-party companies.
REVENUE FROM SALES OF THE RELATED GOODS
AND SERVICES AT FILLING STATIONS
RUB mn
2011
2010
2009
2008
2007
PLANS AND PROSPECTS
Major plans of the Company’s marketing
subsidiaries involve further reconstruction
of the existing gas stations, and construction
of new complexes with modern facilities of
related infrastructure. Some oil tank farms are
intended to have automatic loading arms to
speed up tanker trucks fi lling.
In 2012, the Company’s investments
in petroleum products marketing will surpass
RUB 900 mn. Surgutneftegas is to commission
12 gas stations, including 10 overhauled
and 2 new ones.
Marketing subsidiaries will further
maintain high standards of motor
fuel retail and adhere to product quality
requirements.
844
1,007
1,162
1,366
1,545

POWER GENERATION
THE DEVELOPMENT OF SMALL POWER ENGINEERING IS AMONG PRIORITIES
OF OJSC “SURGUTNEFTEGAS”. THE COMPANY CONSTRUCTS IN-HOUSE POWER
STATIONS, WORKS OUT AND IMPLEMENTS ENERGY-SAVING SOLUTIONS,
AND INTRODUCES ENERGY-EFFICIENT TECHNOLOGIES AT ALL PRODUCTION
STAGES, WHICH PROVIDES ADDITIONAL ADVANTAGES IN ACHIEVING
PRODUCTION AND ECO-TARGETS.
Annually, OJSC “Surgutneftegas” develops
new oil fi elds and increases the number of
wells; natural depletion of the deposits brings
along enhanced liquid production and water
injection to maintain reservoir pressure
which results in growing power demand.
Considerable expenditures for electric energy
stipulate the compulsory control of resource
management, introduction of energy-effi cient
technologies, and development of in-house
power generation facilities.
The Company actively employs
the capacities of its own gas turbine power
plants (GTPP) and gas piston power plants
(GPPP) running on associated petroleum gas.
Therefore, we are able to reduce the costs
associated with third party power purchase,
and construction of infrastructure connected
with electric power supply and associated
gas transportation; and successfully tackle
a problem of gas utilization.
In 2011, OJSC “Surgutneftegas” operated
19 GTPP and 7 GPPP with total capacity of
680 MW. In the reporting year, the Company
generated 4.2 bn kWh at its own power
stations (a 16% increase against the last year).
The power output raised up to 35%
of the overall power consumption
(in comparison with 32% in 2010). All power
used in Eastern Siberia is produced by
the Company’s power stations, and
the capacity of the constructed GTPP
and GPPP off ers additional electric supply
to main pipeline facilities.
The development of in-house power
generation is also stipulated by considerable
emissions reduction. In 2011, the operation
of GTPP, GPPP, and gas-turbine compressor
stations allowed us to prevent the emission
of over 760 thousand tons of pollutants.
While developing in-house power
capacities OJSC “Surgutneftegas” pays
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
51

52
much attention to development and
implementation of energy effi ciency
programs. In 2011, the Company established
energy effi ciency department within Energy
Division. The main aim of the Department
is discovering and application of energy
conserving technologies in all spheres of
production activity.
In the year under review, we continued
to implement the project, which is a part of
the Energetika software solution, and which
is aimed to develop accounting and analysis
system for consumption and generation
of electric power and capacity. Integrated
approach to the project development
enables the Company to perform technical
record-keeping together with consumption
and price analysis of the power used in
diff erent production processes;
this promotes eff ective operation of
the electric equipment and selection of
the best energy mode.
VOLUME OF IN-HOUSE POWER GENERATION
AND SHARE OF TOTAL DEMAND
mn kWh
2011
2010
2009
2008
2007
25%
23%
28%
32%
35%
The Company’s achievements in
the sphere of power-saving earned Russian
and international awards. In 2011,
OJSC “Surgutneftegas” won the annual
prize “Let’s Save Energy – 2011” as “The Best
Power-Saving Regional Project”. Besides,
the Energetika software system allowed
Surgutneftegas to win SAP Quality Awards –
2011.
PLANS AND PROSPECTS
In 2012, Surgutneftegas expects a 4.7%
increase of in-house electric power generation
up to 4.5 bn kWh, which will satisfy 36% of
the Company’s energy demand.
The Company is to commission two gas
turbine power stations at the Vachimskoye
and Vostochno-Surgutskoye fi elds with
the capacity of 36 MW each.
In 2012, we plan to conduct an obligatory
Company’s energy inspection.
2,779
2,467
3,215
3,618
4,182

Research
and Technology

54
RESEARCH AND TECHNOLOGY
ADVANCED TECHNOLOGIES AND DEVELOPMENTS, STATE-OF-THE ART
EQUIPMENT AND MATERIALS, INNOVATION, SCIENTIFIC AND INTELLECTUAL
ASSETS CONSTITUTE VAST POTENTIAL OF THE COMPANY’S FURTHER
PROGRESS. FOR MANY YEARS, ADVANCED R&D PROJECTS HAVE BEEN
FACILITATING THE COMPANY’S EFFECTIVE OPERATION, IN ADDITION TO
IN-HOUSE INNOVATIVE SOLUTIONS BASED ON CUTTING EDGE SECTOR’S
TECHNOLOGIES AND PECULIARITIES OF THE INTERNAL PRODUCTION
PROCESSES.
R&D PROFILE
Surgutneftegas attaches much signifi cance
to the advancement of science considering
it to be the foundation of the eff ective
production. The Company’s R&D profi le is
represented by two largest institutes –
the SurgutNIPIneft Research
and Development Institute and
Lengiproneftekhim Institute for Engineering
of Petrochemical and Oil Refi ning Facilities.
In 2011, the SurgutNIPIneft Research
and Development Institute celebrated its
25th anniversary; this organization provides
R&D activities for oil and gas production.
The Institute is a major credible design
institute for the Company’s fi eld facilities
construction. For 25 years, SurgutNIPIneft had
carried out thousands of scientifi c research
on almost all Surgutneftegas businesses:
geology, exploration and estimation of
hydrocarbon resources, well construction,
operation and workover, enhanced oil
recovery, and oil production stimulation.
Works on replacement and extension of
mineral reserves in traditional and new
regions of the Company’s activity are critical
for us.
When developing fi elds in harsh climate
areas and orohydrographic conditions
Surgutneftegas follows scientifi c justifi cation,
and improvement of development methods

and technologies for deposits with various
geological structures, including hard-torecover
reserves of all classes. Many methods
were implemented on the basis of design
documentation for fi eld development, and
recommended EOR projects. The most known
of them are second to none in the world
productive development systems for thin oil
margins with underlying bottom water and
extensive overlying gas caps, and closedloop
watering systems. All these measures
ensure highly profi table crude production
corresponding to strict environmental safety
regulations.
In 2011, the Institute carried out
83 researches, supervised geological models
for 136 fi eld deposits and licensed areas of
the Company, and provided such models to
prepare project documentation.
LLC “Lengiproneftekhim” arranges
comprehensive engineering research for oil
refi neries, petrochemical plants and shale
refi ning companies. LLC “Lengiproneftekhim”
is involved in preparation of modernization
and reconstruction project for LLC “KINEF”,
Surgutneftegas refi nery. In the year under
review, we completed the development of
the project and working documentation for
the deeper refi ning complex and an onspot
station for loading light oil products to
rail tank cars. To improve its performance,
the Institute employs up-to-date equipment
and software, such as AVEVA PDMS 3D
(computer-aided design system) with deep
integration of all its modules which allows
to register all 3D model changes during
designing and speed up the fulfi llment of
the works.
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
55

56
INNOVATIONS
Innovation policy is a key element
of the corporate development strategy.
The Company is committed to work-out and
update IT, crude output and electric power
solutions, involve the staff to meet production
and process challenges, encouraging and
promoting sci-tech and innovative activity
of the employees. Surgutneftegas scientists
and experts boast a number of unique
innovations, projects and software solutions
which off er real potential for new competitive
advantages.
In oil and gas production, the Company
ran 309 operations to introduce new
engineering processes and new types of
production methods and equipment with
total economic eff ect resulting in RUB 9.7.
The strongest eff ect was observed in
the sphere of enhanced oil recovery (33%),
well maintenance and workover (29%), crude
output and formation pressure maintenance
(13%), well construction (12%), gas
production and transportation (8%).
The use of advanced technologies in
OJSC “Surgutneftegas” is primarily intended
to enhance oil recovery, also through hardto-recover
reserves put into production.
As for this area of the innovative activity,
the Company considers it promising to
discover unique technology to develop
the Bazhenov group reserves which can
guarantee Surgutneftegas a consistent oil
production ramp-up in the next few decades.
We proceed to implement new well
workover technologies using coiled tubing
which is used to increase the amount of
recoverable reserves. In the reporting year,
we developed liner running system for post
factum underbalanced drilling which is
second-to-none in Russia. This technology
helps preserve characteristics of productive
formation, extend life of well, and construct
multilateral wells.
As for electric power sector, the most
signifi cant economic eff ect arose from
automated boiler houses at the Bystrinskoye
and Fedorovskoye fi elds, along with
implemented electric pulse units to repair
steam boilers and applied portable infrared
imagers to control electric equipment.
In the fi eld of utility vehicle operation, we
benefi ted from the Vehicle Performance
Control system, centralized repair of imported
road-building machinery parts and units, and
employment of advanced motor and tractor
machinery.
Surgutneftegas is known to be
a responsible corporate citizen that concerns
about environmental safety of its production
and, therefore, runs cutting edge equipment

and technology. The Company’s experts
together with leading research centres
have created a number of high-effi ciency
technologies ensuring substantial lessening
of environmental impact. Advanced
technologies for waste recycling enabled
Surgutneftegas to recover almost 82.2% of
waste products.
Annually, Surgutneftegas tests new
equipment and technology. In the year under
review, the Company tested 81 models of new
equipment, 60 of them with positive results.
The most eff ective ones: T-shaped electric
heater for Christmas tree of producing well,
UNBT-1180L mud pump, MANITOU 1850
general purpose construction loader with
integral implements and rotating platform.
As part of Geographic Information System
(GIS) project, we performed 37 activities,
including tests of Global Navigation Satellite
System (GLONASS/GPS) on aerosurvey
complex, motor transport, and survey
equipment.
Effi cient management of intellectual
property and encouragement of the staff
ECONOMIC BENEFIT FROM NEW PROCESSES,
OPERATIONS AND EQUIPMENT
RUB bn
2011
2010
2009
2008
2007
creativeness are essential parts of
the corporate policy. Active participation of
the Company’s employees in innovations
and inventions ensures new scientifi c, design
and engineering solution for production
challenges. In 2011, innovative activity
involved 3,349 authors, and 2,351 innovative
solutions were implemented providing
the economic benefi t of RUB 478 mn.
Today, the Company’s production
operates 248 intellectual property items.
In the reporting year, we made and
asserted 12 intellectual property patents to
the Federal Institute of Industrial Property,
received 8 documents of title and registered
9 intellectual property items. The economic
eff ect produced by use of intellectual
property in 2011 totaled RUB 238.9 mn.
Every year, OJSC “Surgutneftegas”
presents its developments and technologies
on the specialized oil and gas exhibitions.
In 2011, the Company supported
XVI International Exhibition “Surgut. Oil
and Gas” held in Surgut and hosted over
100 companies from Russia, CIS and
9.7
9.8
11.9
14.2
15.5
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
57

58
non-CIS countries; most of the participants
have proved to be steady and committed
partners of Surgutneftegas. The exhibition,
which has become a tradition, promotes
domestic and foreign scientifi c achievements,
and brings along mutual cooperation within
oil and gas industry. We also participated in
VI International Exhibition “Investments and
Innovations. Western Siberia” held in Khanty-
Mansiysk.
New technologies in oil refi ning are used
to predict catalyst performance, perform
equipment anti-corrosion protection,
optimize facilities operation, and improve
ECONOMIC BENEFIT FROM INNOVATIONS
RUB mn
2011
2010
2009
2008
2007
the production technology. In 2011, we
performed scientifi c research to enhance
product quality and improve units operation.
In the year under review, LLC “KINEF”
provided 21 innovation proposals, while
22 developments were used in production
and yielded the benefi t of RUB 55 mn.
As for petroleum products marketing, we
upgraded transport monitoring system with
use of GLONASS/GPS system which stores
and analyses vehicle data. Moreover, we
developed remote monitoring systems for
petroleum products measuring and recording
used at tank farms and fuel stations.
478
627
771
757
795

INFORMATION TECHNOLOGIES
Any modern successful company
considers IT to be an indispensible part of
its business facilitating better management
of production assets, safe and trouble-free
equipment operation, and control processes
automatization. Today, OJSC “Surgutneftegas”
runs automated control systems in all
business fi elds.
In power sector, the Company
implemented automated power recording
system. Information from microcontrollers
on electric power commercial metering points
is transmitted to control rooms of power
supply business unit and central engineeringtechnological
service in all Company’s oil
and gas production divisions. Therefore, we
are able to keep constant control of energy
consumption and promptly regulate it.
In the future, the Company plans to develop
decision support systems to create an
algorithm off ering an operator a range of
measures to eliminate equipment faulty
operation.
In the reporting year, the Energetika
software system allowed Surgutneftegas
to win Gold of SAP Quality Awards 2011
as “Medium and Large Implementation”
(CIS region). SAP Quality Awards prize is to
recognize customers that have achieved
excellence in planning and executing their
SAP projects and programs. In the second
round of SAP Quality Awards – 2011,
OJSC “Surgutneftegas” competed as
“Medium and Large Implementation” on
the level of EMEA region (Europe, Middle East
& Africa) with German, French, British, Dutch,
and other companies presented almost
60 projects. It was for the fi rst time during
the entire history of SAP Quality Awards and
18-year experience of SAP in Russia when
CIS-company passed to the second round.
In the second round, OJSC “Surgutneftegas”
won Silver and outran many world’s major
companies.
In oil and gas production sector, all
the Company’s oil and gas production
divisions exercise on-line control of oil
and gas production results versus prescribed
amounts, and monitor fi eld equipment
operation using such systems, as “OKO-TsITS”,
“Video Screen”, and “Well Stock Unifi ed
System” which conduct real-time analysis and
systematization of live information received
from the “OKO” fi eld systems and based on
the data from the “Alpha” oilfi eld portal.
In 2011, the Company put into operation
information system “OKO-TsITS Development”,
“Alpha” complex to perform regular
operational monitoring of processing
equipment used by each development
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
59

60
crew, prompt dispatching management,
and information analysis when considering
emergency situations.
To automate oil treatment and pumping
capacities, and support facilities we are
currently implementing the developed
solution “Process Control System of On-site
Facility”. All new and overhauled facilities
are equipped with this software allowing for
process management. This will allow
us to reduce human factor and increase
fail-operational capability of the capacities.
To accelerate data transfer and exercise
intelligent algorithms for equipment control,
telemetry controllers were replaced with
next gen devices in the year under review.
In 2011, operating well stock equipped
with production rate telemetry systems
accounted for 99.96%, artifi cial-lift well stock
controlled remotely reached 99.84%, and
operating injection well stock equipped with
water injection fl ow meters accounted for
99.85%. In the reporting year, we launched
to outfi t gas metering stations of the third
party buyers with telemetry system.
At the present day, we have performed
an eff ective data transfer from more than
60 commercial gas metering stations
of the third-party purchasers and
Surgutneftegas division units.
In 2011, we tested and put into
commercial operation the “Vehicle Control”
software system based on the GPRS
NAVIGATOR-S hardware function and used
to obtain and analyze information on fuel
consumption, recording the rout trail, and
perform operation mode control.
We also implemented new toolset of IT
security system and access diff erentiation
system within the corporate computer
network. Surgutneftegas organized internal
and external electronic document fl ow and
intercommunication, including the use of
e-digital signature.
In the course of the year, we proceeded
to develop and improve corporate software
systems for production monitoring and
on-line process management of oil and gas
production, transportation and treatment;
eff ective subsurface use and operating wells
employment.
In the year under review, the Company’s
refi nery worked out new modules and
updated existing software and information
application to better the integrated
management control system and improve
recording and control of feedstock, materials,
and equipment.
As for petroleum products marketing, we
upgraded software and hardware systems
allowing for new methods of data processing,
analysis and transfer. We also continued
to update the “Parus” automated control
system of the corporate marketing units and
integrate it with Surgutneftegas information
systems.

Social Responsibility

62
ENVIRONMENTAL INDUSTRIAL SAFETY
BALANCED COMBINATION OF ECONOMIC, SOCIAL AND ENVIRONMENTAL
ACTIVITIES IS A MAJOR BUSINESS PRINCIPLE OF OJSC “SURGUTNEFTEGAS”.
IN ALL REGIONS OF ITS PRESENCE, THE COMPANY GIVES PARAMOUNT
CONSIDERATION TO PROMOTION OF INDUSTRIAL AND ECOLOGICAL
SAFETY, RATIONAL USE OF NATURAL RESOURCES AND PRESERVATION
OF THE ENVIRONMENT FOR FUTURE GENERATIONS.
One of the major priorities of
Surgutneftegas environmental policy
is to minimize adverse environmental
consequences. Wherefore, we carry out
annual ecological program covering such
activities as environmental monitoring,
protection of ambient air and water
resources, production waste neutralization
and recycling, prevention and response
to pipeline accidents, protection and
rehabilitation of land resources.
The Company maintains sustainably
high environmental investments. In 2011,
Surgutneftegas investments amounted
to RUB 22.2 bn, including RUB 20.4 bn
in the upstream sector. The main aim of
the ecological investment programs is to
achieve global level of environmental safety
at all production stages.
In-house environmental quality
monitoring and change assessment allow
us to detect and control negative changes
arising from anthropogenic factors.
Environmental and emission sources
monitoring was carried out in 125 license
areas by 11 modernly equipped laboratories
accredited to perform the analysis and
radiation survey of 707 parameters, including
365 ecological ones. Moreover, to receive
relevant information we extensively employ
remote sensing data together with results of
space survey, spectrozonal aerophotography
and local digital shooting.
Environmental industrial safety is
a complex challenge which is primarily
aimed at improving the fi eld pipeline
reliability and mitigation of oil and tank
water spills. Since over 85% of accidents
and incidents being caused by pipeline
corrosion, our projects are primarily
related to emergency diagnostics and
corrosion protection. So, in 2011, we carried

out pipeline corrosion monitoring in
699 inspection points of the most hazardous
areas. Following the information received,
we estimated the degree of the piped
fl uid aggressiveness and took the required
protective measures. In the reporting year,
more than 2.8 thousand km of fi eld pipelines
enjoyed corrosion protection with the eff ect
of 85%–98%. The selection of inhibitor type
depends on pipeline operating conditions.
The specifi c consumption of corrosion
inhibitors was at 1.85 tons/km in 2011
against 2.71 tons/km last year due to more
eff ective reagents. Field tests of 10 new
brands delivered positive results.
In the reporting year, we replaced 530 km
of accident-prone pipeline sections (a 29%
up vs. 2010), laid 53.5 km of fi eld pipelines
with internal corrosion-resistant coating,
and performed receiving destructive check
of 21% of the total amount of the pipes
purchased. We completed the overhaul
of the Company’s workshop performing
the application of combined anti-corrosion
pipeline coating with use of extruding press
for enduring adhesion of the insulating layer,
enhanced impact strength, resistance to
pressing-through and light ageing.
Pipeline corrosive wear is considerably
reduced owing to initial water separation
units (IWSU) which are extremely
necessary in case of high water cut. In
2011, Surgutneftegas ran 103 IWSUs which
allowed us to safely operate over 3,000 km of
delivery pipelines in the mode of dehydrated
oil transportation; besides, pipeline
transportation demonstrates almost twice as
small as energy and metal consumption.
In the year under review, the number
of accidents in industrial and pollutionrelated
areas decreased by 29% from the
previous year. To response to the accidents
the Company’s designated divisions exploit
their manpower and resources, together with
high-performance equipment and facilities.
To perform effi cient oil spill clean-up and
land recultivation activities at remote boggy
areas, the Company operates multifunctional
fl oating platforms, including those equipped
with attached system for water bodies
and inshore zone integrated treatment.
Additionally, to take counter-measures
for oil spill clean-up within distant
marshlands Surgutneftegas purchased
4 units of Doroskimmer 800 to collect and
deliver bituminous oil.
In 2011, oil response units of all oil and
gas production divisions were certifi ed
by the regional certifi cation commission
as volunteer accident rescue groups.
Surgutneftegas prevention and response
system for spills of oil and petroleum
products is ready to immediately respond
to local and regional emergencies.
In 2011, we achieved excellent results
in rehabilitation of lands which had oil spills
in previous years: we remediated
553 hectares, including 108 hectares being
inspected and struck off the register;
the total area of contaminated lands halved
and by the end of the year totaled
85.5 hectares.
Sludge pits located on the territory
of Khanty-Mansiysky Autonomous Okrug –
Yugra are mainly restored via reforestation
and revegetation (forest recultivation)
without soil backfi lling. Such technology
allows us to mitigate environmental
impacts and stimulate restoration of
vegetative cover.
Surgutneftegas air protection actions
are primarily intended to reduce associated
petroleum gas fl aring and diminish
air emissions. In the year under review,
construction investments in air
protection plants amounted to 85%
of the total expenditures
for environmental facilities. The Company
proceeds with construction and exploitation
of the small-scale power generation sites,
gas transportation network, gas processing
plants and gas metering stations. We inject
gas to maintain formation pressure
and use gas for in-house needs as fuel
for oil treatment plants, boiler plants,
and motor vehicle air-heating lines.
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
63

64
Such comprehensive activities enable
Surgutneftegas to steadily maintain
leading positions in terms of associated gas
utilization and gradually reduce atmosphere
emissions.
The Company devotes much attention
to assembly and operation of dust and gas
catchers installed on processing facilities.
All the Company’s vehicles undergo toxicity
and exhaust smoking control. At the end
of the reporting year, total amount of air
emissions dropped by more than 12%.
In 2011, we proceeded with
environmental management and rational
use of water resources. Surgutneftegas main
activities in this sector include prevention
of water bodies pollution with wastewater,
industrial water and liquid effl uents, as well
as treatment and reuse of water resources.
In the year under review, household
wastewater, industrial and storm sewage
used for injection into the reservoir pressure
maintenance system enabled the Company
to save 1,171 thousand cub m of fresh water.
We removed only 15.7% of the allowed fresh
subterranean (artesian) water volume from
this particular horizon. Over the past four
years, the specifi c water consumption has
remained at 2 cub m of water per 1 ton of
produced oil.
Surgutneftegas takes measures to
cut down the amount of production and
consumption residuals and minimize
their environmental threat through
neutralization and recycling. The Company
actively processes oil sludge and oily soils
using clean-up and thermal treatment
methods. In 2011, the Company neutralized
29 thousand tons of oily wastes. Over
many years, the employed technologies
and equipment have helped us maintain
a 100% level of disposal of these wastes and
oil contaminated soils.
In the reporting year, we obtained
favorable test results for phase-separation
of sludge collector’s fl uid by a centrifuge.
This technology provides us an opportunity
to carry out clean-up works with maximum
safety for the environment.
Four-stage drilling fl uid and sludge
treatment systems contribute greatly to
the reduction of drilling wastes. In 2011,
the Company operated 61 sets of such
equipment which meant the utilization
of more than 89% of the total amount of
the produced drilling sludge as soil for
construction.
Since 2008, Surgutneftegas has been
implementing tire recycling program
encouraging the reduction of transportation
and processing expenditures. In 2011,
the Company’s tire recycling plant utilized
3.4 thousand tons of worn-out tires and
inner tubes and produced 1.2 thousand tons
of rubber crumbs to be used for road
construction and maintenance.
In the reporting year, Surgutneftegas
used and neutralized 82.2% of the wastes
generated and received during operating
activities.

In the oil refi nery sector, Surgutneftegas
introduces annual measures for protection
and rational use of water and land resources,
ambient air, and utilization of production
residuals. In the year under review,
LLC “KINEF” made capital investments in
wastewater treatment and sound water
resources management, as well as disposal
and decontamination of industrial and
consumption residuals. We pursued
continuous ambient air monitoring, sanitary
and bacteriological examination of water
resources, control of waste management
operations and environmental impact
of waste burial. In the year under review,
we conducted operations of eff ective and
comprehensive reactant circulation water
treatment to protect the equipment and
pipelines against corrosion, sludge collector
cleaning, and normalizing storage ponds
operation. The Company upgrades its
treatment facilities and constructs a plant
for bio and oil sludge dehydration and
thermal decontamination.
UPSTREAM ENVIRONMENTAL COSTS
RUB mn
2011
2010
2009
2008
2007
Gradually, KINEF refi nery lowers
the amount of industrial and consumption
wastes. The company performs selective
wastes collection to improve their disposal
and recycling. In 2011, we recycled
5.1 thousand tons of construction wastes
which were used at environmental sites.
On the whole, KINEF environmental
management investments exceeded
RUB 1.8 bn.
In 2011, Surgutneftegas marketing
subsidiaries continued to enhance ecological
safety of petroleum products receipt,
delivery and storage. All the Company’s
marketing units have in-house accredited
laboratories and conduct detailed analysis
of hazardous substances in the fuel they sell,
as required by law of the Russian Federation.
On the territory of the marketing
subsidiaries we conduct careful operational
environmental monitoring of the ambient air,
wastewaters, soils and water bodies. Oil tank
farms and fuel stations pursue tank cleaning,
tank facilities maintenance and repair.
16,137
20,386
20,068
21,129
21,082
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
65

66
PLANS AND PROSPECTS
In 2012, Surgutneftegas will further carry
out the Ecology program with the budget of
over RUB 22 bn.
We plan to continue the construction of
environmental facilities, such as landfi lls,
sludge collectors, water and air protection
sites. It is expected that Khanty-Mansiysky
Autonomous Okrug – Yugra will hold the
construction of a sludge tank and a landfi ll
to recover solid household and industrial
wastes.
Next year, the Company is to complete
the reclamation of all lands suff ered from
earlier oil spills, and remove them from
the register of RosPrirodNadzor Department
(the Federal Service for Supervision of
Natural Resource Usage). In 2012–2014,
to enhance the effi ciency and expand
the performance capabilities of oily soil and
sludge washing and cleaning facilities
we plan to perform their modernization
and commission 7 phase separation
plants for oil sludge, and 1 sludge thermal
processing unit.
To further diminish the risk of pipeline
emergency situations in the coming year,
we intend to construct 3 initial water
separation units, test 3 new grades
of multi-purpose corrosion inhibitors,
and protect 2.8 thousand km of pipelines
from rust.
In 2012, LLC “KINEF” will construct and
overhaul treatment facilities, and make
better use of its storage ponds.
Surgutneftegas marketing units will
further control the quality of the fuel they
sell, upgrade the facilities for petroleum
products receipt, delivery and storage, and
conduct scheduled maintenance of nature
conservation facilities.

PERSONNEL DEVELOPMENT
HIGHLY SKILLED PERSONNEL IS ONE OF THE KEY ASSETS CONTRIBUTING
TO THE COMPANY’S SUCCESS. THE COMPANY’S PERSONNEL DEVELOPMENT
POLICY IS AIMED AT IMPROVING PROFESSIONAL SKILLS OF EMPLOYEES,
REALIZING THEIR FULL POTENTIAL, AND ENCOURAGING PERSONAL
INVOLVEMENT IN ACHIEVING CORPORATE GOALS.
In 2011, the Company’s average number of
employees exceeded 111,000 people, 89.5%
of whom engaged in oil and gas production,
6.7% – in refi ning, 3.7% – in marketing.
Over the years, the Company’s human
resources system helped maintain eff ective
recruitment, training and skills development,
support young professionals, improve
morale-boosting and fi nancial incentives,
and encourage R&D activities.
Training and professional skills
development is among the Company’s main
priorities. Surgutneftegas provides various
training options, such as distance learning
courses, traineeships, off -site workshops and
trainings. Personnel development department
organized by the Company consistently
implements a system for assessment and
development of professional and technical
competences of the employees, as well as
identifi es current training needs.
Surgutneftegas boasts a continuing
professional learning system represented
by the Polytechnic Training Center (PTC).
The Center is based in Surgut with three
branches located in Surgutsky District and
one branch in the Republic of Sakha (Yakutia).
The Polytechnic Training Center provides
a full-cycle education and a platform for
development of practical skills. It is equipped
with modern training facilities, and has unique
training packages and a training ground
outfi tted with oil-fi eld equipment enabling
to simulate real operating conditions.
In 2011, over 42,000 employees of
the Company (or 42% of the total number
of employees in the oil and gas segment)
underwent job-related training, refresher
and skills upgrade training. Among
them, 26,000 people received training in
the Company’s training centers. In 2011,
the Company spent RUB 467 mn on
professional training and skills upgrade
programs.
The Company pursues a comprehensive
recruitment strategy. To motivate young
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
67

68
people to get occupational training and
attract the required candidates,
Surgutneftegas cooperates with
the educational institutions of the city of
Surgut and Surgutsky District, and invites
high school students to meet the Company’s
experts and visit its business units.
Job-oriented training provided by higher
and secondary educational institutions is
the next step in the Company’s multistep
personnel development program.
The Company collaborates with an array of
domestic educational institutions, including
Tyumen State Oil and Gas University,
G.V.Plekhanov Saint Petersburg State Mining
Institute, Surgut Oil Technical School,
and Yakutsk State Agricultural Academy.
Surgutneftegas provides fi nancing for
better training, new laboratories and special
advanced programs. Tyumen State Oil and
Gas University, the Company’s key learning
center, boasts a new lecture hall which bears
the name of Surgutneftegas, new equipment
purchased by the Company and a unique
scientifi c learning center “Neftyanik Surguta”
(Oilman of Surgut) with a computer classroom
and 5 laboratories for petrophysical studies
and drilling techniques where students
learn to use on-site equipment. In 2011, we
approved fi nancing for a new geochemical
laboratory. In 2011, the Company was one
of the sponsors for the 65th Anniversary
International Scientifi c Conference “Oil and
AVERAGE NUMBER OF SURGUTNEFTEGAS EMPLOYEES
people
2011
2010
2009
2008
2007
Gas – 2011” and Conference “Innovative
techniques for forecasting, prospecting,
exploration and development of hydrocarbon
deposits and priorities for development of
resource potential of the Russian Energy
Complex” organized by Gubkin Russian State
University of Oil and Gas. In the reporting year,
Surgutneftegas contributed to the equipping
of scientifi c laboratories of the Oil and Gas
Faculty of Saint Petersburg State Mining
Institute, as well as preparation of Surgut Oil
Technical School for a new academic year.
Over years, the Company has been a member
of the Management Board of the Association
of the Boards of Governors administering
educational institutions in the Republic of
Sakha (Yakutia).
At year-end, 1,796 employees were given
job-related training, 76% of them being
university students. There are 51 students
among them who study under the Treaty
on Cooperation in Economic Development
of Lensky District Municipal Unit, the
Republic of Sakha (Yakutia). To provide its
future recruits with specifi c work experience
and reinforce their professional expertise,
the Company organizes and supports all kinds
of on-the-job internships. In the year under
review, 2,149 persons got practical training in
the Company’s divisions.
In 2011, Surgutneftegas hired 321 young
professionals, including 136 job-related
trainees. Outreach to youth and young
104,043
101,835
108,995
106,197
111,497

professionals is one of the principal parts
of the personnel development program.
Following its youth policy, Surgutneftegas
supports the Youth Association, which
helps new employees adapt to the work
environment, facilitate R&D involvement,
and spot future leaders.
In 2011, the Company held XXXI Annual
Scientifi c and Technical Conference for young
professionals and scientists of Surgutneftegas,
which was attended by 709 speakers.
Seventeen fi rst-place winners were awarded
a trip to the leading foreign companies to
acquire the existing expertise in oil and gas
production sphere. Young talents whose
contribution was recognized as the most
signifi cant and economically viable received
the Viktor Deshura Award.
PERSONNEL TRAINED IN THE UPSTREAM SECTOR
people
2011
2010
2009
2008
2007
UPSTREAM PERSONNEL TRAINING COSTS
RUB mn
2011
2010
2009
2008
2007
Likewise, the Company’s young
professionals demonstrate remarkable results
at national and regional scientifi c conferences
and forums. Annually, our people win fi rst
prizes in the Golden Future of Yugra contest.
In the reporting year, 23 young employees
took part, and 6 became winners of
XI Scientifi c Conference for Young Professionals
of the companies engaged in subsoil
development within Khanty-Mansiysky
Autonomous Okrug – Yugra.
Twenty nine employees took part in
the Professional Engineers category of
XII Annual National Contest “Engineer of the Year
2011”; fi ve of them became prize winners.
In addition, in the Young Engineering Talents
category, nine employees were awarded
diplomas and three employees won prizes.
31,381
321
42,061
41,250
39,497
38,198
443
456
437
467
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
69

70
In an eff ort to achieve better performance
results through personnel involvement,
the Company introduced eff ective
motivational tools. The Company’s fi nancial
incentives involve premiums paid on
an annual and quarterly basis to recognize
strong production, technical and economic
performance and contribution to saving
the Company’s material, technical, energy
and fi nancial resources. Traditionally,
the Company’s three best drilling crews
from Drilling Divisions and Exploration
Division were given the Alexander Usoltsev
Award based on year-end performance
results. Employees of other business units
engaged in well construction were also
rewarded.
PERSONNEL TRAINED IN THE COMPANY’S TRAINING CENTERS
people
2011
2010
2009
2008
2007
Non-fi nancial rewards are recognized by
the Company as a powerful tool for leveraging
employees’ performance, and a key element
of the corporate culture making the personnel
feel involved and aligned around a common
mission. Morale-boosting eff orts involve
professional competitions, recognition,
appreciation and promotion of the most
productive employees.
In the reporting year, the Company
awarded 2,574 employees for signifi cant
contribution to profession; 1 employee
received a national award and 401 employees
got industry awards; 2,031 people were
presented Surgutneftegas awards, including
29 employees who received badges of honor
“For Distinguished Service”.
24,157
23,369
21,939
25,857
24,301

CHARITY AND SOCIAL ACTIVITIES
SURGUTNEFTEGAS, ONE OF THE LARGEST EMPLOYERS AND TAXPAYERS,
CONTRIBUTES SIGNIFICANTLY TO DEVELOPMENT OF THE NATIONAL
ECONOMY AND SOCIAL PROGRESS. THE COMPANY IS FIRMLY COMMITTED
TO PROMOTING SOCIAL AND MORAL WELFARE OF THE SOCIETY, BEING
A RELIABLE PARTNER FOR THE GOVERNMENT IN PROVIDING SUSTAINABLE
AND FAVORABLE SOCIAL ENVIRONMENT. SURGUTNEFTEGAS MEETS THIS
CHALLENGE THROUGH RUNNING VARIOUS SOCIAL PROGRAMS AND
INVESTING IN AREAS OF ITS PRESENCE.
Collective bargaining agreement is
the basic instrument which underlies
the Company’s social policy and stipulates
extra social benefi ts and guarantees
the employees are provided with.
Annually, the Company develops varied
programs designed to improve labor
conditions, living and leisure environment,
to provide recreation opportunities to
employees and their families, and to
support retired employees and veterans.
Surgutneftegas provides substantial benefi ts
and guarantees, which help improve
employee productivity and maintain
a healthy social and morale environment
within the corporate community.
In 2011, the Company became a regular
winner in the regional Black Gold of Yugra
contest, receiving the fi rst prize in
the categories “Social and Economic
Partnership” and “Effi cient Use of Mineral
Resources”, and the third prize – in the category
“Cooperation with Aboriginal Population”.
Over the last 10 years, we have spent
over RUB 100 bn on social programs, with
RUB 17.5 bn invested in 2011 alone (over 10%
increase on a year-on-year basis).
HEALTH CARE
The Company implements a package
of measures aimed at maintaining and
improving employees’ health. At 2011 yearend,
we invested almost RUB 1.7 bn
in health care program.
Surgutneftegas strictly adheres to
the applicable occupational safety standards,
and carries out an ongoing monitoring of
employees’ health through regular and
preliminary (pre-employment) health checks.
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
71

72
In 2011, over 61,000 employees underwent
health examination.
To provide an emergency care onsite,
the Company runs aid posts and health
stations everywhere it operates. Totally, we
maintain 25 aid posts, including 1 physician’s
offi ce in the Republic of Sakha (Yakutia).
The aid posts include 93 rooms for pre-trip
and post-trip medical examination of drivers
and 16 mobile medical units. With over
300 healthcare workers employed at aid posts,
the Company conducted over 7 mn pre-trip
and post-trip health checks in 2011 only.
The Company gives special attention to
disease prevention and health improvement
of workers employed in severe weather
conditions. Surgutneftegas provides its
employees with ample recreational and
treatment opportunities. In 2011, over
26,000 employees in the upstream sector
(including residents of the Republic of
Sakha (Yakutia), their family members and
pensioners received treatment in 13 health
resorts located both in Russia and abroad.
For this purpose, the Company spent over
RUB 1.4 bn. Almost 95% of people improved
their health at four recreation facilities run by
the Company.
Neftyanik Sibiri and Lermontovo,
Surgutneftegas health resorts located
on the shores of the Black Sea, annually
welcome over 13,000 people. Over years,
Yuny Neftyanik, the modern health center
for children, has allowed to promote better
health, encourage creativity and sport
activities among youngsters. In the reporting
year, almost 5,000 children of the Company’s
employees visited Yuny Neftyanik. In 2011,
this child health center took the top prize in
the category “The Best Child Health Center”
in the contest “Resort Olympus”.
Over ten years, Kedrovy Log, a one-ofa-kind
Siberian multi-service health resort
located in the Middle Ob area, has off ered
a wide range of treatments and therapies to
its patients year-round. Its diagnostic center
equipped with leading-edge medical facilities
allows the patients to undergo complex
medical check-in and get proper treatment.
The resort off ers a wide range of treatment
and recreation services, and holds licenses
for 59 types of healthcare services. In 2011,
Kedrovy Log rendered health maintenance,
recovery and rehabilitation services to over
7,000 patients.
Moreover, the Priozyerny health resort
and the Mechta recreation center owned by
LLC “KINEF” welcomed almost 12,000 of its
employees and their families, including over
3,000 children.
WORK SAFETY
AND PRODUCTION STANDARDS
The Company is highly focused on
healthy and comfortable work environment,
and greater industrial and fi re safety. With
this in mind, we upgrade our production
facilities and develop new process
technologies appropriately which allows
to reduce exposure to hazards. Along with
improvements in process technologies, we
take preventive measures against violations
of occupational safety, provide training in
safe working operations and procedures, and
assess employees’ safety knowledge.
Surgutneftegas seeks to provide better
working conditions, and routinely assesses
workplaces safety and checks them for
compliance with safety standards, as well
as identifi es occupational hazards. At yearend,
based on the workplaces reassessment
results, the Company had 58,282 workplaces,
including 55,300 workplaces of the 1 and
2 classes (normal working conditions), and
2,982 workplaces of 3.1, 3.2 and 3.3 classes
(harmful working conditions). Due to
measures intended to improve working
conditions, replace equipment, machines and
mechanisms, Surgutneftegas managed to
reduce workplaces with harmful conditions by
193 workplaces with 784 employees engaged.
Occupational safety is under our stringent
control – we regularly perform in-depth
inspection of occupational, industrial and
fi re safety. In 2011, Surgutneftegas inspected
7,142 oilfi eld and drilling equipment units,
as well as 971 pressure vessel controls and
hoisting units.

Annually, the Company off ers health
resort treatment to the employees engaged
in hazardous work environment. To this end,
in 2011, the Company’s expenditures totaled
RUB 66 mn.
To maintain optimum social and living
conditions, the Company runs its Production
Standards program which encompasses
technical, organizational and hygieneand-sanitary
measures designed to create
a healthier working environment.
The Company’s production facilities are
outfi tted with social amenities, including
modern offi ce buildings, accommodations,
recreation rooms for shift workers, and
canteens serving meals three and four times
a day. At 2011 year-end, the Company’s
residential areas, oilfi elds and industrial sites
had 191 recreation facilities for shift workers
with total area of 140,000 sq m, 406 canteens
serving balanced meals several times a day
to 24,000 employees daily. In the reporting
year, Surgutneftegas commissioned
5 recreation facilities for shift workers fi tted
with 380 beds, 3 stationary canteens and
9 mobile ones serving hot meals.
Annually, the Company performs upgrades
and renovations of its social amenities.
In the reporting year, the relevant costs
totaled RUB 419 mn.
HOUSING
Under its Housing program Surgutneftegas
performs residential construction with newly
built property transferred to the Company’s
employees under purchase and sale or
exchange contracts.
In the year under review, the Company
commissioned over 16,000 sq m of fl oor
space and provided 457 employees’ families,
including over 35 young families, with better
housing conditions. We commissioned 5 new
houses in Western Siberia and 1 house –
in the Republic of Sakha (Yakutia).
Over the last 10 years, the Company
has built 578,000 sq m of fl oor space, and
provided over 8,000 families of its employees
with comfortable apartments.
REGIONAL DEVELOPMENT
PROMOTION
Over the years, Surgutneftegas has been
one of the largest employers and taxpayers
in Khanty-Mansiysky Autonomous Okrug –
Yugra and the Republic of Sakha (Yakutia).
The Company’s business is built upon
principles of social partnership and mutually
rewarding cooperation with the state
and society.
The Company contributes substantially
to development of cities and districts, as well
as supports educational, cultural and medical
institutions. The Company’s orders allow
numerous enterprises in diff erent industries
of Russia to fully utilize their production
capacities, thus producing a multiplier eff ect
in related industries.
Besides, we conclude agreements with
local authorities to promote social and
economic cooperation which allows to launch
specifi c projects.
Development of the East Siberian oil
and gas province is core to the Company’s
business, and we operate in the region
following an integrated approach to
production and social commitments. Over
the time of its presence in the region,
the Company together with the government
of the Republic of Sakha (Yakutia) has
constructed the following social facilities:
Yakutsk State Agricultural Academy, a school
and a child day care center in the village of
Vitim, a sports center in the city of Lensk,
a bridge across Taloye Lake, and a loading
terminal in Vitim. Presently, the Company
constructs the airport at the Talakanskoye
fi eld. This facility will form a crucial link in
the region’s transport network contributing
both to the Company’s operations and
Yakutia community.
SPORT FOR ALL
Surgutneftegas promotes healthy lifestyle
and sports activities among a wider audience,
and encourages physical development
of both children and adults.
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
73

74
The city of Surgut and Surgutsky District
have 22 sport facilities, including 14 sports
halls and 8 sport centers with gyms and
swimming pools, which are used by over
18,000 employees and their families.
In social partnership with Khanty-Mansiysky
Autonomous Okrug – Yugra, we constructed
4 modern football fi elds covered with artifi cial
turf and 2 skate-ski trails.
In the reporting year, we organized
and conducted 567 sporting events, including
4 sport contests attended by almost
13,000 employees of 52 business units
of the Company. At the end of the sport
contests we held the competition
“Sporting Elite – 2011” with the winners
awarded in 41 categories.
The Company’s selected team became
the winner for the second time among
all Russian Energy Companies in National
Sporting Competition run by the Ministry
of Energy of the Russian Federation.
The sporting facilities of the Company’s
refi nery include Neftyanik Sports Center and
the Water Sports Center. The Water Sports
Center, the training ground for the national
men’s and women’s water polo teams,
annually hosts KIRISHI CUP,
a prestigious international top-teams water
polo tournament. The KINEF-Surgutneftegas
women’s water polo team represents
Russia in international competitions, and is
PENSION PAYMENTS
RUB mn
2011
2010
2009
2008
2007
a regular winner at national and international
championships. In 2011,
KINEF-Surgutneftegas won gold medals
for the ninth time. Moreover, the national
team comprising 8 KINEF-Surgutneftegas
players became the winner
in the KIRISHI CUP tournament.
VETERAN
Veterans and retired employees
receive our special attention. Appreciating
the signifi cant contribution to the Company’s
success, we take due care of our retired
employees, whose number exceeded
19,000 people at 2011 year-end.
The Collective bargaining agreement provides
for substantial benefi ts and commitments
for retired employees, veterans of the War,
disabled veterans and labor veterans.
In cooperation with the Association
of Retired Employees formed in 1992,
the Company helps to defend rights and
interests of the elderly and improve their
social status, gives its retired employees
practical, moral and social support, and
encourages the involvement of the labor
veterans in the Company’s activities.
Non-state pension scheme being in eff ect
for many years adds to the social security
coverage of the Company’s employees.
In the end of the reporting period,
the Company opened over 20,000 retirement
79
107
125
156
195

savings accounts with payouts totaling
RUB 195 mn, up 25% from 2010.
Over the years, Surgutneftegas has
lent support to public organizations
committed to preserving and promoting
the heritage of pioneers of the oil and gas
complex of Western Siberia. Thus, in 2011,
the Company provided fi nancing for the
Tyumen Regional Social Public Fund named
after Viktor I. Muravlenko. In association
with Surgutneftegas, the All-Russia Public
Organization “Union of Oil & Gas Producers
of Russia” held an event to commemorate
the 80th anniversary of Farman Salmanov,
a legendary pioneering geologist. In addition,
the Company funded the Tyumen Regional
Public Organization “Union of Founders
of Tyumen Oil and Gas Complex”, which
supports labor veterans of petroleum
industry.
Paying tribute to unprecedented act
of bravery and heroism of our nation,
Surgutneftegas traditionally takes part in
the Victory Day celebrations, provides support
to veterans served on the forefront and home
front, and their widows.
CHARITY AND SPONSORSHIP
Following its long-established traditions,
Surgutneftegas lends direct support to
social projects, important civil initiatives, and
development of regions where it operates.
The Company provides special support
to gifted children through fi nancing general
education institutions, institutions of further
education, specialized secondary and higher
education institutions. Creating talent
development environment and encouraging
students’ research and development initiatives
are among the Company’s main focuses.
In 2011, the Company funded the Gifted
Children Public Fund of Khangalassky
Ulus in the Republic of Sakha (Yakutia),
and supported the 90th anniversary
of the municipal general education
school in the village of Tolon, Lensky
District, the Republic of Sakha (Yakutia).
The Company’s support allowed
the Children’s School of Arts to participate
in the 3rd International Children and Youth
Competition Festival “Splashes of Talents”
held in the village of Dzhugba, Tuapsinsky
District. In addition, the Company supported
the contest “Teacher of the Year-2011”,
and anniversary concerts performed by
the Children’s School of Music No. 2 named
after Grigoriy Kukuyevitsky.
Sport and healthy lifestyle promotion is
a signifi cant part of our charitable program.
In the reporting year, the Company was
a main sponsor of the International Sport
Forum “Russia – Country of Sports” and
the title sponsor of the 5th International
Sports Games “Children of Asia” held in
the city of Yakutsk. We also sponsored
the 22nd International Children Tennis
Tournament “Northern Cup” organized in
Surgut. Throughout 2011, we off ered support
to the Surgut Children and Youth Olympic
Reserve School.
Devoting special eff orts to preserve
cultural and spiritual heritage, Surgutneftegas
traditionally supports cultural projects.
Supporting the State Tretyakov Gallery over
the years, the Company fi nanced its exhibition
projects in 2011. In the year under review,
we helped to publish a caricature catalogue
“Karikaturum 6” to mark the 20th anniversary
of the Surgut Art Museum, as well as a book
“Yakutia: Oil and Gas” and a photo album
with pictures of Yakutia’s nature ordered by
the Ministry of Environmental Protection of
the Republic of Sakha (Yakutia). In addition,
we assisted in publishing a book and holding
events in celebration of the 50th anniversary
of the Surgut Association of Journalists.
Traditionally, the Company’s refi nery
cooperates with the Tovstonogov Bolshoi
Drama Theatre, the Maly Drama Theatre –
the Theatre of Europe, the Saint-Petersburg
State Theatre of Musical Comedy,
the Komissarzhevskaya Academic Drama
Theatre, and the Saint-Petersburg Academic
Philharmonic named after D.D.Shostakovich.
As a member of the International Fund
“Friends of the Russian Museum”,
LLC “KINEF” supports the projects of
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
75

76
this unique repository of the Russian
masterpieces.
As part of its donations to religious
organizations, the Company fi nanced
the refurbishment of the Church of
the Transfi guration of Our Lord,
the Cathedral Mosque of Surgut, and
the Surgut Orthodox Classical School.
We provide fi nancial assistance for
the national public organizations committed
to revival and preservation of the cultural
heritage of the areas where we operate,
as well as for national cultural communities
for organization of the traditional festive
events. The Company donates to
the National Renaissance Fund “Bargaryy”
under the patronage of the President of
the Republic of Sakha (Yakutia). Our close
attention and strong support is given to
indigenous minorities of the North. In 2011,
with the assistance of Surgutneftegas,
the Public Movement of the Indigenous
Minorities of the North “Yamal” of Yamalsky
District organized events to celebrate
the International Day of the World’s
Indigenous People, and Khanty-Mansiysk
hosted the International Research-to-
Practice Conference “Indigenous minorities
of the North in today’s legal environment:
problems, priorities, prospects”. Besides,
the Company donated to the public
organization “Preservation of Yugra” engaged
in providing support to the indigenous
minorities of the North.
Surgutneftegas provides social
assistance to those who need it most –
veterans, physically challenged people,
low-income families, and children without
parental care. As part of our major charity
eff orts, we provided fi nancing for medical
treatment, new special medical equipment,
presents, and social projects. In 2011,
the public charity organization “Zabota”
addressing needs of socially vulnerable
people, and supervised by the Women’s
Council, celebrated its 20th anniversary.
Throughout these years, the Company
has invested great eff orts to help
the organization to address social needs
of disadvantaged families, orphan children
and disabled people.
Last year, Surgutneftegas helped
purchase New Year gifts for veterans and
widows of those served on the forefront and
home front, disabled children, orphans and
children in single-mother families in Lensky
District of the Republic of Sakha (Yakutia).
We also assisted the All-Russia Association of
Persons with Disabilities in organizing events
to mark the International Day of Persons with
Disabilities.
The Company’ mission is to further
develop and expand its charity campaign,
and to support social initiatives.

Corporate Governance
and Securities

78
BOARD
OF DIRECTORS
Vladimir P. Erokhin
Chairman of the Board of Directors
Born in 1949.
Member of the Board of Directors of the Company since 2007.
Higher professional education.
Share in the charter capital as of 31.12.2011, % 0.0104
Ordinary shares as of 31.12.2011, % 0.0126
Vladimir L. Bogdanov
Born in 1951.
Member of the Board of Directors of the Company since 1993.
Higher professional education, Doctor of Economics.
Share in the charter capital as of 31.12.2011, % 0.3028
Ordinary share as of 31.12.2011, % 0.3673
Sergei A. Ananiev
Born in 1959.
Member of the Board of Directors of the Company since 1998.
Higher professional education.
Share in the charter capital, as of 31.12.2011, % 0.0048
Ordinary shares as of 31.12.2011, % 0.0054

Alexander N. Bulanov
Born in 1959.
Member of the Board of Directors of the Company since 1998.
Higher professional education.
Share in the charter capital as of 31.12.2011, % 0.0005
Ordinary sharesas of 31.12.2011, % 0.0002
Igor N. Gorbunov
Born in 1967.
Member of the Board of Directors of the Company since 2004.
Higher professional education.
Share in the charter capital as of 31.12.2011, % 0
Ordinary shares as of 31.12.2011, % 0
Vladislav E. Druchinin
Born in 1943.
Member of the Board of Directors of the Company since 2006.
Higher professional education
Share in the charter capital as of 31.12.2011, % 0
Ordinary shares as of 31.12.2011, % 0
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
79

80
Nikolai I. Matveev
Born in 1942.
Member of the Board of Directors of the Company since 2001.
Higher professional education.
Share in the charter capital as of 31.12.2011, % 0.0105
Ordinary shares as of 31.12.2011, % 0.0122
Nikolai Ya. Medvedev
1943–2012
Member of the Board of Directors of the Company since 2008.
Higher professional education,
Doctor of Geological and Mineralogical Sciences.
Share in the charter capital as of 31.12.2011, % 0.0350
Ordinary shares as of 31.12.2011, % 0.0418
Alexander F. Rezyapov
Born in 1952.
Member of the Board of Directors of the Company since 2004.
Higher professional education.
Share in the charter capital as of 31.12.2011, % 0.0210
Ordinary shares as of 31.12.2011, % 0.0240

INDIVIDUAL EXECUTIVE BODY
Vladimir L. BOGDANOV
Born in 1951
Director General of OJSC “Surgutneftegas” since 1993
Member of the Company’s Board of Directors since 1993
REMUNERATION PAID TO THE COMPANY’S
EXECUTIVE BODIES AND MEMBERS
OF THE BOARD OF DIRECTORS
Remuneration is paid to the members of the Board of Directors in compliance with
OJSC “Surgutneftegas” Charter.
Remuneration (expenses reimbursement) paid to the members of the Board of Directors
of OJSC “Surgutneftegas” in 2011 totaled RUB 18,276.6 thousand.
BODIES FOR INTERNAL CONTROL
OVER THE COMPANY’S FINANCIAL
AND OPERATING ACTIVITIES
OJSC “SURGUTNEFTEGAS” AUDITING COMMITTEE
The Company’s Auditing Committee is established to supervise the Company’s fi nancial and
operating activities. Once a fi nancial year is over, the Auditing Committee conducts an annual
audit (inspection) of the Company’s activities.
OJSC “SURGUTNEFTEGAS” AUDITING COMMITTEE CONSISTS OF:
Vera A. Pozdnyakova
Year of birth: 1953
Education: Secondary professional
Valentina P. Komarova
Year of birth: 1948
Education: Higher professional
Tamara F. Oleynik
Year of birth: 1947
Education: Secondary professional
AUDIT COMMITTEE OF THE BOARD OF DIRECTORS
OF OJSC “SURGUTNEFTEGAS”
The Audit Committee of the Company’s Board of Directors (hereinafter, the Committee) was
formed under the Company’s Board of Directors. The key objective of the Committee is effi cient
supervision of the Company’s fi nancial and operating activities by the Board of Directors.
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
81

82
The main functions of the Committee are as follows:
evaluation of internal control procedures and improvement proposals;
evaluation of candidates for selection of the Company’s audit organization;
evaluation of the audit opinion on the Company’s fi nancial and operating activities
for the year.
THE COMMITTEE CONSISTS OF:
Vladislav E. Druchinin (Chairman)
Year of birth: 1943
Education: Higher professional
Nikolai I. Matveev
Year of birth: 1942
Education: Higher professional
Alexander F. Rezyapov
Year of birth: 1952
Education: Higher professional
OJSC “SURGUTNEFTEGAS” INTERNAL AUDIT SERVICE
OJSC “Surgutneftegas” Internal Audit Service was formed under the Audit Committee
of OJSC “Surgutneftegas” Board of Directors and reports to the Committee on the functional level
and to the Company’s Director General on the administrative level.
The main objectives of OJSC “Surgutneftegas” Internal Audit Service are:
control over business and fi nancial transactions conducted by the Company in
compliance with the Russian Federation legislation, the Charter and other local acts of
the Company;
control over the expediency, correctness, completeness and accuracy of business and
fi nancial transactions conducted by the Company in accounting and tax accounting;
control over the preservation of the items of value and cost monitoring.
OJSC “SURGUTNEFTEGAS” INTERNAL AUDIT SERVICE CONSISTS OF:
Alexandra I. Arteeva (Head)
Year of birth: 1959
Education: Higher professional
Vitaly V. Dukhno
Year of birth: 1980
Education: Higher professional
Elza F. Sitdikova
Year of birth: 1978
Education: Higher professional

THE COMPANY’S COMPLIANCE WITH
THE CODE OF CORPORATE BEHAVIOR
OJSC “Surgutneftegas” complies with the provisions of the Code of Corporate Behavior
recommended by Order No. 421/r of the Russian Federal Commission for the Securities Market
dated April 04, 2002 as and where required by the applicable laws of the Russian Federation
COMPANY STOCK MARKET
In 2011, the Company’s securities were publicly traded in Russia on OJSC “RTS” (Quotation List
“B”) and CJSC “MICEX SE” (non-listed securities).
Due to the reorganization of OJSC “RTS” in the form of a merger with CJSC “MICEX SE” on
December 07, 2011, the Company’s shares were listed on CJSC “MICEX SE” and included in
the Quotation List “B” section.
MICEX QUOTATIONS FOR SURGUTNEFTEGAS SHARES
Price, RUB 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012
Ordinary (max) 36.18 32.21 29.32 30.10 33.89
Ordinary (min) 29.19 25.75 20.41 24.13 25.38
Preferred (max) 17.99 17.62 15.60 17.20 22.42
Preferred (min) 15.53 13.20 10.86 12.98 16.43
SNG SHARE PERFORMANCE VS. MICEX INDEX
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
83

84
Throughout the reporting year, American Depositary Receipts (ADR) program for ordinary
and preferred shares continued to have eff ect.
The basic features of the program:
Type of the program: sponsored, fi rst level.
One depositary share represents 10 ordinary and preferred registered shares
of OJSC “Surgutneftegas”.
The ADR program for ordinary shares was launched on December 30, 1996.
The ADR program for preferred shares was launched on March 19, 1998.
The Bank of New York Mellon acts as a depository for the ADR program. The depositary of
CJSC “ING Bank (Eurasia)” has rendered custodial services on American Depositary Shares (ADS)
transactions.
American Depositary Shares for Surgutneftegas ordinary shares were traded in the reporting
year on the U.S. OTC market, in London Stock Exchange OTS Electronic Trading System, Berlin
Stock Exchange and Frankfurt Stock Exchange OTC Trading System. ADS for Surgutneftegas
preferred shares were traded in 2011 on the U.S. OTC market, Berlin Stock Exchange and
Frankfurt Stock Exchange OTC Trading System. The total volume of ADS trading on the U.S. OTC
market in 2011 amounted to USD 207.3 mn.
QUOTATIONS FOR SURGUTNEFTEGAS ADS ON THE U.S. OTC MARKET
Price, USD 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012
ADS for ords (max) 12.05 11.35 10.35 9.62 11.45
ADS for ords (min) 10.40 9.20 7.33 7.53 8.06
ADS for prefs (max) 5.99 6.20 5.30 5.53 7.38
ADS for prefs (min) 5.45 4.70 3.98 4.04 5.08
The London Stock Exchange Electronic Trading System is a leading European OTC platform
where American Depositary Shares of OJSC “Surgutneftegas” were traded. The total trading
volume in the reporting year was USD 8.2 bn.
QUOTATIONS FOR SURGUTNEFTEGAS ADS
IN THE LONDON STOCK EXCHANGE OTS ELECTRONIC TRADING SYSTEM
Price, USD 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012
ADS for ords (max) 12.09 11.33 10.37 9.80 11.00
ADS for ords (min) 10.27 9.22 7.45 7.71 7.65
According to CJSC “MICEX SE”, the Company’s capitalization as of December 31, 2011
amounted to RUB 1,022.3 bn.

OJSC “SURGUTNEFTEGAS” TRADING VOLUMES ON
THE RUSSIAN STOCK MARKET IN 2011
Class of shares CJSC “MICEX”
Ordinary shares 209,547.5
Preferred shares 81,312.8
mn RUB
The Company’s shares are included in the main Russian stock indices of OJSC “RTS” and CJSC
“MICEX SE”. American Depositary Shares for Surgutneftegas shares are included in MSCI Russia and
MSCI Emerging Markets indices.
PROSPECTS FOR FURTHER DEVELOPMENT
OF SURGUTNEFTEGAS STOCK MARKET
The Company is planning to further maintain MICEX listing and ADR program for ordinary and
preferred shares of OJSC “Surgutneftegas”, as well as facilitate trading of the Company’s securities on
stock exchange and OTC markets.
REPORT ON DECLARED DIVIDEND PAYMENTS
Dividend rates for 2010:
Dividends accrued for an ordinary share (RUB): 0.50;
Dividends accrued for a preferred share (RUB): 1.18;
Dividends accrued for all ordinary shares (RUB): 17,862,997,352.50;
Dividends accrued for all preferred shares (RUB): 9,088,357,917.30;
Dividends paid for all ordinary shares (RUB): 17,857,086,517.63;
Dividends paid for all preferred shares (RUB): 8,967,758,388.43.
The management body which passed a resolution (declared) to pay dividends on
the Company’s shares: General Shareholders’ Meeting
Date of the meeting of the Company’s management body when the resolution to pay
(declare) dividends was passed: 24.06.2011.
Date and number of the Minutes of the meeting of the Company’s management body:
27.06.2011 No. 22.
The due period for declared dividend payment: from July 01, 2011 till August 23, 2011.
Form and other conditions of declared dividend payment: cash in compliance with
the established and approved dividend payment procedure.
Obligations to pay dividends on the Company’s shares were fulfi lled except as stated below
when the Company does not bear responsibility in accordance with Article 44 of Federal Law
“On Joint Stock Companies”: dividends were not paid to persons registered in the Company’s
shareholder register who failed to inform the Company’s registrar about the changes in their
data in due time.
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
85

86
SUBSIDIARIES AND AFFILIATES
No.
Name of Subsidiary
and Affi liate
1. LLC
Novgorodnefteproduct
OJSC
“Surgutneftegas”
share in the
Charter Capital
of Subsidiary
and Affi liate,
%
Share
of Subsidiary
and Affi liate
in the Charter
Capital
of OJSC
“Surgutneftegas”,
%
Type of Subsidiary
and Affi liate Activity
100 0 Procurement, storage
and marketing of petroleum
products. Markets
the Company's oil products.
2. LLC Syrgutmebel 100 0 Manufacturing of wood
building materials,
components
and constructions
for the Company’s needs.
3. LLC Pskovnefteproduct 100 0 Procurement, storage
and marketing of petroleum
products. Markets
the Company’s oil products.
4. LLC Tvernefteproduct 100 0 Procurement, storage
and marketing of petroleum
products. Markets
the Company’s oil products.
5. LLC
Kaliningradnefteproduct
as of December 31, 2011
100 0 Procurement, storage
and marketing of petroleum
products. Markets
the Company's oil products.
6. LLC “Lengiproneftekhim” 100 0 Design of buildings
and constructions including
process design of facilities
and constructions for fuel,
mining and processing
industry. Develops projects
for Surgutneftegas Group
enterprises.
7. KIRISHIAVTOSERVIS Ltd 100 0 Procurement, storage and
marketing of petroleum
products. Markets
the Company's oil products.

8. LLC “Media-Invest” 100 0 Television and radio
broadcasting, production
and distribution of
television and radio
programs.
9. OJSC
“Sovkhoz “Chervishevsky”
10. LLC Insurance Company
Surgutneftegas
94.9996 0 Manufacturing of
dairying, grains, fl our,
feed concentrates, bakery
products, baked goods,
pastas, meat, sausage
products, vegetables, fruit
confectioneries, cattle,
wood products. Supplies
the Company's employees
with agricultural products.
99.97 0 Providing various types
of insurance. Provides
insurance of the Company's
assets.
11. LLC “KINEF” 99.9999 0 Oil refi ning, production and
marketing of oil products
(motor gasoline, diesel
and boiler fuels, petroleum
bitumen, aromatic
hydrocarbons and other
refi ned and petrochemical
products). Refi nes feedstock
supplied by the Company.
12. ZAO SNGB 97.7591 0 Banking.
Settlement operations,
cash payments and other
banking activities for
Surgutneftegas Group
enterprises.
13. OJSC “Lennefteprodukt” 97.9642 0 Being dissolved.
14. OJSC “Surgutpolymer” 30 0 The company is excluded
from the Uniform State
Register of Legal Entities as
it has gone out of business.
15. JSC
“National Media Group”
23.9752 0 Investments in securities,
activities of news agencies,
radio and TV broadcasting.
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
87

88
THE COMPANY’S REGISTRAR
Registrar:
Full corporate name: Closed Joint Stock Company “Surgutinvestneft”.
Abbreviated corporate name: CJSC “Surgutinvestneft”.
Location: Russian Federation, Tyumenskaya Oblast, Surgut.
Mailing address: ul.Entuziastov, 52/1, Surgut, Tyumenskaya Oblast,
Khanty-Mansiysky Autonomous Okrug – Yugra, Russian Federation, 628400.
Telephone: (3462) 42-11-74.
Fax: (3462) 42-11-93.
E-mail: info@sineft.ru.

Additional
Information

90
A LIST OF THE COMPANY’S TRANSACTIONS
CARRIED OUT IN THE REPORTING YEAR
LARGE-SCALE TRANSACTIONS CARRIED OUT BY THE COMPANY
The Company did not carry out any large-scale transactions.
INTERESTED PARTY TRANSACTIONS CARRIED OUT BY THE COMPANY
1. The contract between the Company and OJSC “Oil Company Rosneft” for the transfer of
access rights to Transneft oil pipeline system for I, II, III, IV quarters 2011, including the pricing
terms for the cession of access rights:
for non-CIS countries USD 5.00 (fi ve) including VAT of USD 0.90 (zero point nine) per
1 (one) ton of the export schedule in ruble equivalent at the rate of the Russian Federation
Central Bank on the date of signing of the rendered services acts for the transfer of access rights
which parties to the contract sign for each cession;
for CIS countries: RUB 30.00 (thirty) including VAT of RUB 5.40 (fi ve point four) per 1 (one)
ton of the export schedule.
An interested party in the stated transaction: Vladimir L. Bogdanov – Company Director
General, Member of the Board of Directors of OJSC “Oil Company Rosneft” which is a party in
the transaction.
The management body of the Company which made the decision to approve the stated
transaction: the Board of Directors.
2. During 2Q2011, OJSC “Surgutneftegas” (Buyer) and ZAO SNGB (Seller), in the process of
placing an additional issue of ZAO SNGB, signed a purchase and sale agreement for securities in
the amount of RUB 1,500,000,000.
An interested party in the stated transactions: Vladimir L. Bogdanov – Company Director
General, Chairman of the Board of Directors of ZAO SNGB which is a party in the transaction.
The management body of the Company which made the decision to approve the stated
transactions: The annual general shareholders’ meeting of OJSC “Surgutneftegas”.
THE ENERGY RESOURCES UTILIZED
BY THE COMPANY
OJSC “Surgutneftegas” utilized the following energy resources in 2011:
Name of the utilized energy resources,
unit of measure
Volume in kind
Consumption
Cost,
thousand RUB
Thermal energy, thousand Gcal 1,864 3,099,613
Electric energy, thousand kWh 12,207,362 15,197,691
Motor gasoline, t 20,899 479,316
Diesel fuel, t 257,918 4,727,204
Residual oil, t 1,596 16,548
Oil, t 32,423 217,939
Associated gas, thousand cub m 1,811,078 2,552,015
Natural gas, thousand cub m 4,652 30,771

Financial (Accounting)
Statements

92
AUDIT REPORT
OF INDEPENDENT AUDIT COMPANY LLC “ROSEXPERTIZA”
FOR ACCOUNTING STATEMENTS OF OJSC “SURGUTNEFTEGAS” FOR 2011
AUDITED ENTITY:
AUDITOR:
Name: Open Joint Stock Company “Surgutneftegas”
State registration number: 1028600584540
Legal address: ul.Grigoriya Kukuyevitskogo 1, bld. 1, Surgut, Khanty-Mansiysky
Autonomous Okrug – Yugra, Tyumenskaya Oblast, Russian Federation.
Mailing address: ul.Grigoriya Kukuyevitskogo 1, bld. 1, Surgut, Khanty-Mansiysky
Autonomous Okrug – Yugra, Tyumenskaya Oblast, Russian Federation, 628415.
Name: Limited Liability Company “Rosexpertiza”.
Certifi cate of state registration of LLC “Rosexpertiza” No. 183142 issued on September 23,
1993 by Moscow Registration Chamber.
Certifi cate of Record of a legal entity registered prior to July 01, 2002 in the Uniform State
Register of Legal Entities under main state registration number 1027739273946 on
September 27, 2002.
Legal address: ul. Mashi Poryvaevoy, 11, Moscow, Russian Federation, 107078
Mailing address: Tikhvinsky per., 7, building 3, Moscow, Russian Federation, 127055
A member of SROA (Self Regulating Auditor Organization) “NP “Russian Collegium of
Auditors” according to RCA Board decision dated April 23, 2007, Certifi cate No. 362-yu.
Main registration number in the Auditors and Auditing Firms Register is 10205006556.
We have audited the accompanying accounting statements of OJSC “Surgutneftegas” consisting
of the balance sheet as of December 31, 2011, the profi t and loss account, changes in equity
statement, cash fl ows statement for 2011, and other appendices to the balance sheet and profi t
and loss account and notes.
These statements were prepared by the executive body of OJSC “Surgutneftegas” in accordance
with Federal Law No. 129-FZ “On Accounting” of 21.11.96, “Accounting and Reporting Regulations
in the Russian Federation” approved by Order No. 34n of the Ministry of Finance of the Russian
Federation of 29.07.98, “Accounting Regulations “Reporting of an Enterprise” PBU 4/99 approved
by Order No. 43n of the Ministry of Finance of the Russian Federation of 06.07.99, Order No. 66n of
the Ministry of Finance of the Russian Federation of 02.07.10 “Reporting Standards of Enterprises”.
RESPONSIBILITY OF THE AUDITED ENTITY FOR ACCOUNTING STATEMENTS
The management of the audited entity is responsible for preparation and accuracy of
the accounting statements in compliance with the established rules for preparation of accounting
statements and for the internal control system necessary to prepare accounting statements free
of any material misstatements due to fraud or errors.
AUDITOR’S RESPONSIBILITY
It is our responsibility to express, based on our audit, an opinion on the accuracy of these
accounting statements.
We conducted our audit in accordance with:
Federal Law No. 307-FZ of December 30, 2008 “On Auditing Activity”;
Federal Rules (standards) for Auditing Activity (Decree of the RF Government No. 696
of September 23, 2002 as amended by Decrees of the RF Government No. 405 of July 4,
2003, No. 532 of October 7, 2004, No. 228 of April 16, 2005, No. 523 of August 25, 2006,

No. 557 of July 22, 2008, No. 863 of November 19, 2008, No. 586 of August 2, 2010, No. 30
of January 27, 2011);
Federal Standards of Auditing Activity (FSAA) (Orders of the Ministry of Finance
of the Russian Federation No. 16n of February 24, 2010, No. 46n of May 20, 2010, No. 90n
of August 17, 2010);
Code of Ethics for Auditors of Russia (approved by the Council for Auditing Activities under
the Ministry of Finance of the Russian Federation, Minutes No. 56 dated May 31, 2007).
These standards require compliance with applicable ethical standards, as well as audit planning
and performance, so as to obtain reasonable assurance about whether the accounting statements
are free of material misstatements.
The audit included audit procedures to obtain audit evidence confi rming numerical indicators
in the accounting statements and disclosure of information in such statements. Selection of audit
procedures is the subject of our judgement, which is based on assessment of material misstatement
risk due to fraud or errors. In the course of assessment of this risk, we reviewed the internal control
system that ensures preparation and accuracy of accounting statements in order to select adequate
audit procedures but not in order to express an opinion on effi ciency of the internal control system.
The audit also included assessment of the proper nature of the applicable accounting policy and
substantiation of estimates obtained by the management of the audited entity, as well as general
evaluation of accounting statements presentation.
We believe that audit evidence obtained in the course of the audit provide a reasonable basis for
the opinion on accuracy of the accounting statements.
OPINION
In our opinion, the accounting statements of OJSC “Surgutneftegas” give a true and fair view
of the state of the company’s aff airs as of December 31, 2011, the results of the company’s fi nancial
and business activity, and the cash fl ow for 2011 in accordance with the established rules for
preparation of accounting statements.
Head of Audit A.V.Dvoychenko
Unifi ed Auditor Qualifi cation Certifi cate
No. 05-000079 dated 02.02.2012
issued for an unlimited period of time
Main registration number in the Register of Auditors and
Audit Organizations No. 20105008165
Member of Self-Regulatory Organization
of Auditors “Nonprofi t Partnership “Russian Collegium of Auditors”
as per Resolution of the RCA Board dated 14.08.2009,
Certifi cate No. 2978.
Director General
LLC “Rosexpertiza” A.V.Kozlov
Auditor Qualifi cation Certifi cate No. K008734 dated 25.10.1994
for general audit, prolonged for an unlimited period of time
Main registration number in the Register of Auditors and
Audit Organizations No. 29405012883
Member of Self-Regulatory Organization of Auditors
“Nonprofi t Partnership “Russian Collegium of Auditors”
as per Resolution of the RCA Board dated 29.06.2000,
Certifi cate No. 758.
27 March 2012
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
93

94
BALANCE SHEET
Non-current assets
А S S E T S 31.12.2011 31.12.2010 31.12.2009
Intangible assets, R&D results 456 393 370
Fixed assets 517,887 470,313 474,755
Income yielding investments in tangible assets 59 64 56
Financial investments 557,131 474,424 255,140
Deferred tax assets 1,706 1,128 1,079
Other non-current assets 13,572 12,730 12,930
Current assets
Stock 56,716 48,973 44,879
Value Added Tax on acquired valuables 3,793 3,467 3,486
Accounts receivable 128,316 92,564 76,397
Financial investments (excluding cash equivalents) 355,909 266,758 357,834
Cash and cash equivalents 16,031 17,926 42,356
Other current assets 1,806 795 1,684
BALANCE 1,653,382 1,389,535 1,270,966
LIABILITIES
Capital and reserves
Charter capital 43,428 43,428 43,428
Revaluation of non-current assets 422,398 399,637 395,665
Additional capital (no revaluation) 192,512 192,512 192,512
Reserve capital 6,514 6,514 6,514
Retained profi t (uncovered loss) 882,229 671,159 562,766
Long-term liabilities
Deferred tax liabilities 28,913 21,073 16,692
Short-term liabilities
Borrowed funds 140 508
mn RUB
Accounts payable 67,463 45,174 44,181
Deferred income 1,159 1,456 1,747
Estimated liabilities 8,132 7,707 7,074
Other liabilities 494 367 387
BALANCE 1,653,382 1,389,535 1,270,966
* Condensed accounting statements are prepared in accordance with Order No. 101
of the Ministry of Finance of the Russian Federation as of November 28, 1996.

NOTES TO THE BALANCE SHEET
The accounting statements of OJSC “Surgutneftegas” for 2011 have been prepared
in accordance with the accounting standards of the Russian Federation as per Federal Law
of the Russian Federation No.129-FZ “On Accounting” dated November 21, 1996, “Accounting
and Reporting Regulations in the Russian Federation” approved by Order No.34n of the Ministry
of Finance of the Russian Federation dated July 29, 1998, “Accounting Regulations “Reporting
of an Enterprise” PBU 4/99 approved by Order No.43n of the Ministry of Finance of the Russian
Federation dated July 6, 1999, Order No.66n of the Ministry of Finance of the Russian Federation
“Reporting Standards of Enterprises” dated July 2, 2010, Order No. 186n of the Ministry
of Finance of the Russian Federation dated December 24, 2010 “On Amendments to Accounting
Regulations and Annulment of Order No. 3 of the Ministry of Finance of the Russian Federation
dated January 15, 1997”, and approved regulations “Accounting Policy of OJSC “Surgutneftegas”
for 2011 for Accounting Purposes” and “Accounting Policy of OJSC “Surgutneftegas” for 2011
for Taxation Purposes”.
In connection with the entry into force in the annual accounting statements for 2011
of Orders of the Ministry of Finance of the Russian Federation No. 66n “Reporting Standards
of Enterprises” dated July 2, 2010, No. 124n “On Amendments to Reporting Standards of
Enterprises Approved by Order No. 66n of the Ministry of Finance of the Russian Federation
dated July 2, 2010” dated October 5, 2011, the appropriate amendments were made in
the reporting standards for 2011 which resulted in changes in opening balances of accounting
statements as of December 31, 2009 and December 31, 2010.
The balance sheet as of December 31, 2011 and the profi t and loss account for 2011 give
a true and fair view of the fi nancial position of OJSC “Surgutneftegas” as of the reporting date.
The presented data on economic means and their sources are confi rmed by the results of
the annual inventory.
INTANGIBLE ASSETS
Intangible assets include rights to use objects of intellectual property arising out of copyright
and other agreements for products of scientifi c research, works of literature and art and objects
covered by associated rights, software, databases, patents for inventions, industrial prototypes,
certifi cates for utility models, trademarks and service marks or license agreements for the use
thereof.
FIXED ASSETS
Fixed assets include fi xed assets in operation, under reconstruction, modernization,
restoration, conservation or in stock, capital investments in progress including advances paid for
capital construction.
The full (replacement) cost of fi xed assets was assessed as of January 01 and December 31,
2011.
FINANCIAL INVESTMENTS
Financial investments include long-term and short-term investments in subsidiaries and
affi liates, charter capital of other entities, deposits, loans granted to other entities at book value
net of the amount of a reserve formed for fi nancial investments devaluation.
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
95

96
OTHER NON-CURRENT ASSETS
Other non-current assets include expenditures for scientifi c research and development
activities, engineering works and licenses for the right to use subsurface mineral resources
(expenditure records accounts with write-off period exceeding 12 months).
STOCK
Stock includes the value of residual stock of raw materials, supplies and other similar values
(less provision for impairment of inventories), work-in-progress expenses, fi nished goods,
shipped goods, and deferred expenses.
VALUE ADDED TAX ON ACQUIRED VALUABLES
This line shows the amount of Value Added Tax on acquired inventories, intangible assets,
investments, works and services to be allocated in accordance with the applicable procedure
in the next reporting periods to reduction of tax amounts for transfer to the budget or for
corresponding sources of its cover.
ACCOUNTS RECEIVABLE
Accounts receivable include amounts due to the Company from buyers and customers
for shipped goods, completed works and rendered services, on advances paid under existing
contracts, settlements of claims, as well as settlements with the budget and non-budget funds,
net of the reserve for doubtful debts.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include balances on ruble and foreign currency settlement
accounts, deposits placed for up to 3 months, petty cash and other monetary resources such as
letters of credit, cheque books, and postage stamps.
CHARTER CAPITAL
The charter capital of the Company as of December 31, 2011 is RUB 43,428 mn and divided
into 35,725,994,705 ordinary shares and 7,701,998,235 preferred shares with a par value of
RUB 1 each. The state has no share in the charter capital.
ADDITIONAL CAPITAL
Additional capital includes amounts resulting from additional valuation of non-current assets,
share premiums (amounts received in excess of the par value of shares placed by the Company),
and part of retained profi t left at the Company’s disposal and allocated to fi nance capital
investments in production.
RESERVE CAPITAL
Reserve capital was formed in accordance with the law of the Russian Federation and
the Company’s constituent documents. The Company’s Reserve Fund, not less than 15% of
the Company’s charter capital, is formed through compulsory annual deductions amounting to
at least 5% of the Company’s net profi t until the said amount is accumulated.

ACCOUNTS PAYABLE
Accounts payable include amounts currently due from the Company to suppliers and
contractors for delivered inventories, completed works and rendered services; due to employees;
due to the budget and non-budget funds, and for advances received from third parties under
existing contracts.
ESTIMATED LIABILITIES
This line shows reserves for forthcoming vacation payments to employees.
PROFIT AND LOSS ACCOUNT
mn RUB
Item 2011 2010
Revenue 754,431 591,648
Cost of sales (481,315) (397,120)
Gross profi t (loss) 273,116 194,528
Selling expenses (56,043) (44,980)
Sales profi t (loss) 217,073 149,548
Income from participation in other organizations 16 363
Interest receivable 29,243 27,370
Interest payable 0 0
Other income 1,145,968 666,071
Other expenses (1,100,962) (684,293)
Profi t (loss) before tax 291,338 159,059
DISTRIBUTION OF PROFIT AND LOSS FOR 2011
mn RUB
No. Item Amount
1. Profi t (loss) before tax 291,338
2. Current profi t tax (49,047)
3. Change in deferred tax liabilities (7,840)
4. Change in deferred tax assets 578
5. Other (1,871)
6. Net profi t (loss)
including profi t allocated for:
233,158
dividend payment
37,995
ANNUAL REPORT 2011 OJSC “Surgutneftegas”
97

98
NOTES TO THE PROFIT AND LOSS ACCOUNT
Reporting year revenue from sale of goods, products, works, services (less VAT, excises and
similar compulsory payments) amounted to RUB 754,431 mn, up by 27.5% compared with 2010.
In 2011 cost of goods, products, works, services sold increased by 21.2% to RUB 481,315 mn
compared with the previous year.
Selling expenses amounted to RUB 56,043 mn, a 24.6% growth compared with 2010.
In 2011, sales profi t amounted to RUB 217,073 mn, up by 45.2% compared with 2010.
Pre-tax profi t amounted to RUB 291,338 mn, up by 83.2% compared with 2010.
FINANCIAL (ACCOUNTING) STATEMENTS
Annual fi nancial (accounting) statements of OJSC “Surgutneftegas” for 2011 were signed
by Vladimir L. Bogdanov, Director General, and Andrey V. Druchinin, Chief Accountant.
Financial (accounting) statements were submitted to the Interregional Inspectorate of
the Federal Tax Service of Russia for Major Taxpayers No. 1 located at pr. Mira, All-Russia
Exhibition Center, bld. 194, Moscow, Russian Federation, 129223 and to Surgut City State
Statistics Directorate, Khanty-Mansiyskstat, located at ul.Moskovskaya 34b, Surgut, Tyumenskaya
Oblast, Russian Federation, 628400.

Background Information

100
INVESTOR RELATIONS AND DR PROGRAM SUPPORT DEPARTMENT
Mailing address: ul. Myasnitskaya 41, Moscow, Russian Federation, 101000.
Telephone: (495) 698-94-18.
E-mail: Kuzovov_VS@surgutneftegas.ru
THE COMPANY’S PRESS SERVICE
Telephones: (3462) 40-10-07, 40-16-60.
E-mail: media@surgutneftegas.ru
PUBLIC ANNOUNCEMENTS
The Company publishes information for shareholders:
in the “Neft Priobya” weekly electronic and printed corporate publication;
in newswires of authorized agencies, Closed Joint Stock Company “Business News
Agency PRIME-TASS” and Closed Joint Stock Company “Interfax”.
INFORMATION ABOUT THE COMPANY IN INTERNET
The Company’s web address: www.surgutneftegas.ru
FULL COMPANY NAME
Open Joint Stock Company “Surgutneftegas”
Address: ul.Grigoriya Kukuyevitskogo 1, bld. 1, Surgut, Khanty-Mansiysky Autonomous
Okrug – Yugra, Tyumenskaya Oblast, Russian Federation, 628415.
Representative offi ce
Moscow representative offi ce of Open Joint Stock Company “Surgutneftegas”
Address: ul.Myasnitskaya 34, Moscow, Russian Federation.
Representative offi ce
Saint Petersburg representative offi ce of Open Joint Stock Company “Surgutneftegas”
Address: ul.Podkovyrova 37, St. Petersburg, Russian Federation.
Representative offi ce
Yakutsk representative offi ce of Open Joint Stock Company “Surgutneftegas”
Address: ul.Ordzhonikidze 36, Yakutsk, Republic of Sakha (Yakutia), Russian Federation.
This Brochure includes main parts of the annual report and annual fi nancial (accounting) statements of OJSC “Surgutneftegas”
for 2011.
OJSC “Surgutneftegas”, “Company”, “we”, “our”, “us” and “joint-stock company” used in the text of the Brochure are interchangeable
terms that relate to Surgutneftegas group of companies as a whole, OJSC “Surgutneftegas” and/or its subsidiaries subject to
the context.
Brent and Urals quotations are calculated by the Company on the basis of data provided by CJSC “Interfax – Petroleum
Information Agency”.
Source of industry fi gures: Info TEK and Oil & Gas Vertical periodicals.