ENERGY FOR PEOPLE - JSC Gazprom Neft

4COMPANY’S PROFILEEnergy for lifeENERGY FOR PEOPLECOMPANY’SPROFILE ** In this report such terms as “Gazprom Neft”,“the Company”, and “Group” in different variantsrefer to JSC Gazprom Neft, its consolidatedsubsidiaries and affiliates.COMPANY’S HISTORYEvery year Gazprom Neft significantlyincreases its size and strengthens itspositions in the oil and gas sector bothin Russia and abroad.1995Open Joint Stock Company SiberianOil Company was established undera Decree of The President of theRussian Federation № 872 «OnEstablishment of Open Joint StockCompany Siberian Oil Company,»dated August 24, 1995, andResolution of the Government ofthe Russian Federation № 972 «OnOrganization of Open Joint StockCompany Siberian Oil Company,»dated September 29, 1995. Actingas the Company's founder, the Statepassed on the government stake inthe biggest oil industry enterprisesof Russia: OJSC Noyabrskneftegaz,OJSC Noyabrskneftegazgeophysica,OJSC Omsk Refinery, and OJSCOmsknefteproduct, to the authorizedcapital of the holding. The Companywas registered on October 6, 1995.1996–1997Plan of privatization of Sibneftwas implemented by the RussianGovernment with the purpose ofdeveloping the market economy.At auctions in 1996 private investorsbought some 49% of Sibneft’s shares.In 1997 under the governmentalprogram “Shares for Loans” theFinancial Oil Company won the auctionto purchase the State-owned sharein Sibneft.1998–2004Good resource potential, effectiveraw material processing capacity andprofessional management ensureda high rate of Company development.The management of Sibneft dida great deal to modernize production,introduce the latest technology andoptimize business processes. Thanksto the implementation of a proactivepolicy aimed at increasing assets thegeography of production expandedsignificantly (Tomsk Region, OmskRegion, and Chukotka AutonomousDistrict) and the sales network inRussia’s regions was also expanded(Sverdlovsk Region, Tyumen Region,the Krasnoyarsk Krai, Saint Petersburg,Moscow). One of the major purchasesof the Company during this period wasthe purchase of 49.9% of shares of JSCNGK Slavneft that produces oil and gasin Western Siberia and the KrasnoyarskKrai.2005A controlling interest in the JSC Sibneft(75.68%) was bought by GazpromGroup and subsequently on May 13,2006 the Company's name has beenchanged to the Joint Stock CompanyGazprom Neft. The strategic objectivesof the Company were to ensure theposition of a global company that hasregionally diversified assets along theentire revenue chain.2006Gazprom Neft entered the retailmarket of Central Asia by settingup an affiliate Gazprom Neft Asiato sell petroleum products of theCompany in Kyrgyzstan, Tajikistan,and Kazakhstan. The same year theCompany for the first time joined,as a shareholder, an internationalpipeline project of state significance;specifically the construction of theBurgas-Alexandroupolis Transbalkan OilPipeline jointly with JSC OC Rosneft andJSC Transneft.2008JSC Gazprom Neft completed theownership structure of Joint StockCompany Moscow Refinery. The projectpartners — JSC Gazprom Neft andJSC Moscow Oil and Gas Companyestablished on a parity basis a companycalled Moscow NPZ Holdings B.V.contributing to its authorized capital90.01% of voting shares or 77.25% ofthe authorized capital of the MoscowRefinery. Gazprom Neft and MNGKcame to an agreement to jointlymanage the Moscow Refinery andmake all decisions on a parity basis.2009Gazprom Neft expanded its presencein the global market — some of thehighlights of the year are summarizedbelow:AAAcquiring 51% of shares of NaftnaIndustrija Srbije (NIS);AAConsolidation of its controlling stakein Sibir Energy that ensured increasein oil production and growth ofeffective ownership ratio of theMoscow Refinery up to 59.75%;AAAcquiring 100% of the Chevron ItaliaS.p.A. oils and lubricants producingplant in the city of Bari (Italy) fromChevron Global Energy;AASigning a Memorandum ofUnderstanding with the NationalIranian Oil Company (NIOC) that18