ENERGY FOR PEOPLE - JSC Gazprom Neft

JSC GAZPROM NEFTANNUAL REPORT2009tons. The growth of the productionvolumes was also registered in ‘yearto-year’comparison, however this wasnot a direct result of natural growthbut due to the Company’s increasedM&A activities.In essence the Company’s strategywas to grow oil production throughthe purchase of new assets. In 2009a deal for the acquisition of Serbia’sNIS was closed, and consolidation ofthe controlling stake in Sibir Energytook place. Sibir Energy holds a 50%share in the development project ofSalymskiye fields, develops Yuzhnoyeand Orekhovskoye fields in the KhMAD,and carries out geologic explorationof the Koltogorskiye fields in WesternSiberia.Mainly due to this consolidation ofSibir Energy’s controlling stake (SibirEnergy is one of the shareholders ofthe Moscow Refinery) and the increaseof the effective share of the plant to59.75% the overall growth of oil refiningwas registered in the Company’sreport.In relation to increasing sales therewere also strategic purchases. In theChelyabinsk Region a chain of 39 fillingstations was bought, and in Tajikistan —19 filling stations. Additionally theconsolidation of NIS’s and Sibir Energy’sassets added a further 478 and 134more filling stations to the Company’sassets.Sales units of the Company —petroleum product supply enterprises:Gazprom Neft-Aero, Gazprom NeftMarine Bunker, Gazprom Neft-Lubricants — successfully conqueredthe market and increased both theirproduction and economic indicators.The level of sales for these companiesin the premium segments grew by 40%and by the end of 2009 had reached9.8 mln tons of petroleum products. Theamounts sold through the chain of tankfarms and filling stations on the territoryof Russia grew by 3% as compared to2008.In 2009 activities related to thehandover started for Gazprom’s fields(Novoportovskoye, Tazovskoye, anda part of Orenburgskoye field) toGazprom Neft. Active production at theNovoportovskoye field, the largest of theassets handed over, with reserves ofmore than 400 mln tons of oil equivalent,is scheduled for 2013. A significantshare of consolidated production of theCompany will be the development ofSlavneft’s Messoyakhskiye fields.At the end of 2009 another importantpurchase took place that of STS ServiceCompany, a production affiliate ofSweden’s Malka Oil that develops fieldsgeographically adjacent to the fieldsof Gazprom Neft-Vostok in the TomskRegion.At the end of 2009 two important eventsalso took place in the Near East market.In November Gazprom Neft signeda Memorandum of Understandingwith the National Iranian Oil Companyon exploration and development ofAzar and Shangule oil fields. While inDecember the Company acted as themajor member of the consortium for thedevelopment of the Badra field in Iranwhich has oil reserves of more than 2billion barrels.Judging by the results of 2009,Gazprom Neft retains its positions ofone of the leaders in the sector in termsof effectiveness.The results of 2009 encourageGazprom Neft to look into the futurewith optimism. The Company managednot only to keep stability and expandbusiness but also to set up a secureplatform for the development in 2010and make significant steps on the wayof achieving its strategic goals that havebeen planned through to 2020.31