ENERGY FOR PEOPLE - JSC Gazprom Neft

ASSET MANAGEMENTAND IMPROVEMENT OF THECORPORATE STRUCTUREEnergy for lifeENERGY FOR PEOPLEASSET MANAGEMENTAND IMPROVEMENTOF THE CORPORATESTRUCTUREImprovement of the Company’scorporate governance structure isdesigned to enhance the efficiencyof Gazprom Neft’s operations asa vertically integrated companyand optimize the core businessmanagement structure at the level ofsubsidiaries.In 2009 Gazprom Neft continued theconsolidation of distribution assets.In the Sverdlovskaya region all assetsof the Company are consolidatedinto OJSC Gazprom Neft-Ural. Asa result of the restructuring, OJSCEkaterinburgnefteproduct and OJSCUralnefteproduct are included intoOJSC Gazprom Neft-Ural.In Krasnoyarski Krai the Companycompleted the reorganizationby merging SibKras LLC intoGazprom Neft-Krasnoyarsk LLC.In the Central Federal regionGazprom Neft-Moskva LLC andGazprom Neft-Kaluga LLC wereintegrated into Gazprom Neft-TsentrLLC as part of the consolidation of thedistribution assets strategy.JSC Gazprom Neft continued toconsolidate hydrocarbon productionassets. In 2009 CJSC Pechora-Neftegazand NGP Ortyagunskoye LLC weremerged into OJSC Gazprom Neft-Noyabrskneftegaz with the subsoillicense for Severo-Romanovsky andOrtyagunski licensed areas transferredto the latter.Shinginskoye LLC was merged intoGazprom Neft-Hantos LLC with thesubsoil license for Shinginsky licensedarea transferred to the latter.The Company continued to set upjoint ventures in the area of jet fueldistribution. In 2009 JSC GazpromNeft established Gazprom Neft-AeroDushanbe LLC (Gazprom Neft Group isholding a 50% stake).In 2009 JSC Gazprom Neft jointly withits partner OJSC TNK-BP continuedthe division of the assets of the SlavneftGroup. The division of Slavneft Group’sdistribution assets is completed in theCentral Federal region and in BelarusRepublic. As a result of the divisionand optimization of the network, JSCGazprom Neft had by the end of 2009a network of 77 retail filling stations inYaroslavskaya and Ivanovskaya regionsand a network of 38 retail filling stationsin Belarus Republic under its control.Gazprom Neft-Yaroslavl andGazprom Neft-Belnefteproductwere established for the purpose ofmanaging the acquired assets. Thedivision of Slabneft Group’s assetsallowed JSC Gazprom Neft to expandinto new markets in Yaroslavakaya andIvanovskaya regions and the BelarusRepublic, thus increasing productionvolumes, raising the efficiency of theCompany and providing customers anaccess to the high-quality products andservices, supplied by the Company.Upon completion of the acquisitionof 51% interest in the Serbian oilcompany Naftna Industrija Srbije (“NIS”)in February 2009 JSC Gazprom Neftstarted the process of integrating thenew asset. Decisions concerning NISmanagement are taken on a parity basisjointly with the second shareholder,the Serbian Government, and in fullaccordance with the terms of thepurchase agreement.Gazprom Neft bought out a controllingstake in Sibir Energy. Starting from April23, 2009 ( the date of the acquisitionof the first stake in Sibir Energy) the146