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Our Business

Gazprom Neft is a vertically integrated oil company, its core activities include: exploration, development, production and sales of crude oil and gas, oil refining, and the sale of petroleum products.

Today, Gazprom Neft is focused on scaling up through additions to its resource portfolio, the intensification of crude output, and modernization of its refining facilities.

Gazprom Neft and its subsidiaries hold 75 subsoil licenses in 11 regions throughout Russia. Licences are also held through the joint development of oil field projects in: Serbia, Iraq, Angola, Venezuela, Equatorial Guinea and Cuba. In 2011, Gazprom Neft Group’s consolidated hydrocarbon production amounted to 57.3 million toe.

Following its 2011 operational results, Gazprom Neft maintained its position as one of the leaders in the oil industry and ranks first in operating profit (EBITDA), which increased in comparison with 2010 by 40% to $10.16 billion and Total Shareholder Return. In 2011, the company demonstrated its efficiency, announcing the industry’s smallest increase in operating costs per barrel of oil equivalent production.

In 2011, Gazprom Neft retained its position as of one of the leaders in terms of increasing refining throughput. During the reporting period, refining increased by 6.8% — to 40.5 million tonnes of oil.

Gazprom Neft> refines more than 80 percent of its crude oil at its own oil refineries. The Omsk refinery, (part of Gazprom Neft Group), is a leader in Russia with regard to the quality of produced products, which include automotive gasoline, fuel for diesel and jet engines, fuel oil, bitumen, aromatic hydrocarbons, and other petroleum products. The Omsk refinery is linked by pipelines to Gazprom Neft’s major fields, which allows for the supply of high quality crude oil to the refinery at minimum cost. Among the Company’s other refining facilities are its Moscow and Yaroslavl refineries (the latter belonging to Slavneft), as well as a NIS refining complex consisting of two refineries with total processing capacity of 7.3 mln tonnes a year, located in Pancevo and Novi Sad.

In order to market petroleum products, the Company has established special business units for the sale of jet fuel, bunkering, and production and sale of oils: Gazprom Neft-Aero, Gazprom Neft-Marine Bunker and Gazprom Neft-Lubricants respectively. The Company’s gas station network includes a complex of 1,670 petrol stations located in Russia, The CIS and Europe.

2011 Performance

Crude production

The company’s key objective is the rational and efficient management of subsoil.

Consolidated hydrocarbon extraction by the Gazprom Neft Group in 2011 amounted to 57.3 million toe, an increase of 8% compared to the 2010 results.

Refining

In 2011, Gazprom Neft refineries processed over 40.5 million tonnes of crude oil, an increase of 6.8 percent on the prior year. The conversion rate at the Omsk refinery reached 84.05 percent, compared to a Russia industry average of just over 70 percent.

Sales of Oil and Petroleum Products

Gazprom Neft products, including oil, gasoline, diesel fuel, motor oils, bitumen, etc., are exported to over 50 countries and sold throughout Russia. In 2011, oil exports amounted to 16.1 million tonnes, and sales of petroleum products to the domestic market amounted to 17.43 million tonnes.

Petrol Station Network

In 2011, the number of petrol stations operated by Gazprom Neft’s subsidiaries was 1,670. Sales of petroleum products through petrol stations in Russia grew by 40 percent and ammounted to 4.905 million tonnes.

From 2007 to 2011, the volume of retail sales through the company’s petrol stations rose by 2.5 times — to 5.6 million tonnes, this was achieved by both by increasing the number of stations and as a consequence of the average volume of petrol pumped per station increasing from 3 to 5 tonnes per year.

Aircraft Filling

Gazprom Neft-Aero is the number one supplier to the Russian retail aviation fuel market. In 2011, retail sales volumes grew by 53 percent.

Bunkering

Gazprom Neft Marine Bunker is a leading bunker fuel supplier. In 2011, the Company increased the volume of its marine fuels sales by 46.7%. Today, the Company provides year-round supplies of petroleum products to ship owners and charterers in the largest ports throughout Russia and abroad.