Gazprom-AR2014

Business Development Prospects
31
Oil business
Gazprom Group’s oil business operates through its subsidiary, OAO Gazprom neft, guided
in its operations by the 2025 Development Strategy approved by OAO Gazprom neft’s Board
of Directors in May 2013. The Strategy draws on and refines the 2020 Development Strategy
approved in 2010 and updated in 2012 by OAO Gazprom neft’s Board of Directors. The document
reiterates the 2020 objectives, refining the ways to achieve them in key business segments
(hydrocarbon production, oil refining and oil product sales), and sets maintaining the scale
of operations to be achieved by 2020 as the key objective for 2020–2025.
Prospecting/exploration and production
Gazprom neft seeks to rise its hydrocarbon production to 100 mm toe per year by 2020 and maintain
this rate through 2025. The current proved reserves-to-production-ratio is expected to be
sustained for at least 20 years. To achieve these targets Gazprom neft intends to maximise the
profitability of the remaining resource extraction at its active production sites through the roll-out
of best development optimisation practice, the reduction of the cost of tested production technologies,
and the promotion and mass introduction of advanced technologies. A new production
centre in the northern part of YNAA and enhanced presence in Russia’s Arctic shelf are contemplated.
Gazprom neft treats unconventional reserves as a growth opportunity and will expand this
asset class as an important component of its portfolio. Given the overall reduction in the quality
of conventional oil resource base and the need to develop deposits with low filtration properties,
OAO Gazprom neft started to assess potential commercial development of shale oil resources at
the Bazhenov suite, West Siberia.
Oil refining
Implementing refinery facilities upgrade programmes and improvements to operating efficiency
remain to be Gazprom neft’s strategic priorities in its Russian oil refinery business. In 2013,
Gazprom neft completed phase 1 of the upgrade expected to improve motor oil quality and proceeded
to phase 2, designed to boost processing depth and yield for light products at Russian
facilities. In accordance with the selected configurations, Gazprom neft plans to launch hydrocracking
facilities at the Omsk Refinery in 2018 and at the Moscow Refinery in 2019, each with an
annual capacity of 2 mm tonnes. Additionally, Gazprom Neft plans to construct the following largescale
facilities: a 2 mm tonne flexicoking unit at the Moscow Refinery by 2020, and a 2 mm tonnes
coking unit at the Omsk Refinery by 2019. Gazprom Neft continues to refine an upgrade programme
for OAO Slavneft-YANOS to support, inter alia, the operations of planned advanced refining
facilities. Implementation of the scheduled upgrade projects will enable Gazprom neft to
achieve the following targets in Russia in 2025: oil refining — 40 mm tonnes per year, processing
depth — 95%, yield for light products — 80%.
OAO Gazprom Annual Report 2014