ENERGY FOR PEOPLE - JSC Gazprom Neft

KEY PERFORMANCE INDICATORSOF THE COMPANY IN 2009 BY TYPEOF OPERATIONEnergy for lifeENERGY FOR PEOPLEHYDROCARBON PRODUCTIONGazprom Neft is engaged in oil and gasexploration and production primarilyin the fields located in the Yamal-Nenets and Khanty-Mansi AutonomousDistricts, Omsk, Tomsk and IrkutskRegions.The Company’s oil production iscarried out predominantly by threeof its subsidiary operators: OJSCGazprom Neft-Noyabrskneftegaz,OJSC Gazprom Neft-Khantos, andGazprom Neft — Vostok LLC. In 2007the Company set up two new operators:Gazprom Neft-Yamal LLC engaged inthe exploration and development ofJSC Gazprom’s oil fields and GazpromNeft-Angara LLC engaged in theexploration and development of theCompany’s new oil deposits in EasternSiberia.The largest hydrocarbon reserves in theYamal-Nenets Autonomous District arefound in: Sugmutskoye, Sutorminskoye,Vyngapurovskoye, Sporyshevskoyeand Muravlenkovskoye fields. In 2009these fields accounted for 39.2% oftotal oil production by the Company.Production in these fields is carried outby oil and gas producing enterprises:OJSC Gazprom Neft-Noyabrskneftegaz,its subsidiary Zapolyarneft LLCholding a license for the developmentof Vyngapurovskoye, Yarainerskoyeand Novogodneye deposits, anda Muravlenkovsky branch of OJSCGazprom Neft-Noyabrskneftegaz.In the Khanty-Mansi AutonomousDistrict the most prospective depositof JSC Gazprom Neft is the Priobskoyefield, a development license for whichis held by a subsidiary of the Company,Sibneft-Yugra LLC, with Gazprom Neft-Khantos LLC acting as the operator.Located in the same region is thenortheastern part of the PalyanovskayaArea of Krasnoleninskoye field anda group of license plots acquired by theCompany in early 2005 (Salymsky-2,Salymsky-3, Salymsky-5) and theZimneye field in the Tyumen Region.In 2008 Gazprom Neft-Khantos wonthe bidding for a part of the Zimneyefield located in the Khanty-MansiAutonomous District.The Priobskoye field is one of thelargest and most promising oil depositsof the Company and is the leader interms of rate of production growth.Active development of this fieldbegan in 2004 and as early as 2008it already accounted for 23% of totaloil produced by the Company, and in2009 it accounted for 27.3% of totaloil produced by the Company. ThePriobskoye field is therefore a key assetwhich is strategically important for theCompany’s future development.Production at PriobskoyeField, mln tons10987654321SOURCE:COMPANYDATA2005 2006 2007 2008 2009 2010(forecast)A regional group of fields in the Omskand Tomsk Regions will becomea second “new” center. Gazprom Neft-Vostok is the oil production operatorof the Krapivinskoye field located inthe Omsk Region, and of Archinskoye,Shinginskoye, and Urmanskoye fields inthe Tomsk Region. All these fields arebuilding up a new production centeradding up to the annual growth of oilproduction.Own production by JSC Gazprom Neftin 2009 was 32 441 th. TOE, which is122 th. TOE more than in 2008 (+0.4%).It is explained by the acquisition of NISand Sibir Energy (OJSC Magma).The main achievement of 2009 isprobably that the Company managedto find additional oil recovery reservesat existing assets with decreasingproduction. In the second half of2009 due to active developmentof the Priobskoye field, renovationand restructuring of Gazprom Neft-Noyabrskneftegaz the daily productionof Gazprom Neft started to increase withthe figures for August showing a 2.5%growth compared on January. On thewhole judging by year-end results, onecan see that total production exceededthe business plan by more than 1 mlntons.In addition to its own productionGazprom Neft holds shares inproduction of OJSC Slavneft, OJSCTomskneft and Salym PetroleumDevelopment (SPD), and thereforeGazprom Neft consolidates theirproduction output on a pro rata basis ofthe equity participation.OJSC Tomskneft that is managed byGazprom Neft and Rosneft on a paritybasis holds licenses for developmentof fields in the Tomsk Region andKhanty-Mansi Autonomous District.Another joint venture of Gazprom Neftand TNK BP, OJSC Slavneft, developsreserves in the Urals Federal Districtand conducts exploration in the SiberianFederal District.The share in oil production by OJSCSlavneft and OJSC Tomskneft in 2009decreased by 4% and amounted to15 750 th. TOE, out of those: OJSCSlavneft — 9 748.0 th. TOE and OJSCTomskneft — 6 002 th. TOE.As a result of acquiring Sibir Energyin 2009, the Company at the sametime obtained 50.0% of the asset ofSalym Petroleum Development, a jointventure of Sibir Energy and Royal DutchShell. In 2009 Gazprom Neft’s sharein the production of Salym PetroleumDevelopment amounted to 1 984 th.TOE.The total production of Gazprom Neft in2009 went up by 3.0% and amountedto 50 174 th. TOE. As a result of theCompany’s development strategy theamounts of oil production grew due tothe purchase of new assets, NIS andSibir Energy., The total additions to theCompany’s production caused by this42