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. The Company’s strategy is to expand its resource base, enhance oil production, and upgrade refining facilities to further drive the growth of its business.
In 2012, Gazprom Neft produced 60 million tonnes of oil equivalent (TOE), an increase of 4.3% from the previous year, positioning itself as the leader of the Russian oil industry in terms of production growth rate. Gazprom Neft’s subsidiaries and affiliates hold 74 subsoil licenses in nine regions of Russia. Licences are also held through the joint development of international oil field projects in Iraq, Venezuela, Serbia, Angola, Bosnia and Herzegovina, Romania and Hungary.
Gazprom Neft processes about 80% of its oil. The Company’s largest refinery, the Omsk refinery , is Russia’s leader in terms of refinery yield,as well as being one of the country’s most modern refineries and the largest in the world. The Company’s other assets include the Moscow refinery and the Yaroslavl refinery (YANOS belongs to Slavneft where Gazprom Neft owns a 50% share) and a refining complex in Serbian company NIS comprising two refineries located in Pancevo and Novi Sad. In 2012, Gazprom Neft increased its oil refining volumes and petroleum product output by 7%: up to 43.3 million tonnes and 41 million tonnes respectively. The Company is now producing fuels that comply with the Euro 4 and Euro 5 emission standards.
The Company has established several special business units for the sales of aviation fuel, bunker fuels, and lubricants: Gazpromneft-Aero, Gazpromneft Marine Bunker and Gazpromneft-Lubricants.
Gazprom Neft’s retail network comprises 1,609 service stations located in Russia, the CIS and Europe.
The Company’s revenue in 2012 increased by 20% to RUB1.2 trillion, EBITDA increased by 8%, and net profit increased by 10% to RUB176.3. Based on these results, Gazprom Neft is one of the industry’s leaders in business performance. The Company has the highest operating cash flow per barrel of oil produced and second highest operating profit and return on investments per barrel as of the end of 2012.