Production and Development
Crude production
Gazprom Neft is one of the five leaders in the Russian market for crude output. In 2010, consolidated production by Gazprom Neft Group amounted to 52.8 million tons of oil equivalent, growing by 5.3percent year on year. This growth in oil production is the result of the Company's systematic work to enhance the productivity of existing oil fields.
In Russia, Gazprom Neft's production operations are concentrated in the largest oil and gas regions: Yamalo-Nenets Autonomous Okrug, Khanty-Mansi Autonomous Okrug, Omsk Region, and Tomsk Region. In 2010, Gazprom Neft produced oil at 36 fields. The Company’s main producer in YANAO is Gazprom Neft Noyabrskneftegaz 
, which is developing the Sugmutskoye, Sutorminskoye, Vyngapurovskoye, Sporyshevskoye and Muravlenskoye fields. In 2010, these fields produced 36.3 percent of the Company's own oil production volume.
In 2010, the Company's subsidiary Gazprom Neft-Khantos became a leader in the growth of oil production. Its production volume was 9,812.7 ths. tons, which was almost 14.9percent more than in the previous year. The Priobskoye field operated by Gazprom Neft-Khantos is one of the Company's largest and most promising oil fields. Full-scale development of the field started in 2004, and by the following year it was producing 31percent of the Company’s total oil output.
Significant production growth was achieved by Gazprom Neft's foreign company NIS (Serbia). For 2010, NIS's oil output grew by 27.1 percent, from 207.3 to 970 ths. tons.
Gas Production
As at the end of 2010, Gazprom Neft’s gas production in Russia grew by 24 percent year on year and reached 4 billion cubic metres. Production growth was mainly due to the launch of the Senoman gas project at the Muravlenskoye and Novogodnee fields.
In July 2010, Gazprom Neft and NOVATEK entered into a joint venture. They created Yamal Razvitie LLC, for the implementation of joint projects in and for the development of oil and gas condensate fields in Yamalo-Nenets Autonomous Okrug. This project is characterised by multi component gas deposits and oil rims which will make it possible to combine the long and relevant experience of the two companies in optimising the sub surface development and management of the Yanao fields..
Gazprom Neft continues to explore the possibility of simultaneous operation of oil and gas formations at other fields to ensure production synergy and the fullest use of natural resources.
Increase in Production - Geotechnical Operations
Efficient geotechnical operations - preliminary additional exploration, the updating or replacing of obsolete field models, better quality of drilling services, and process optimisation - helped to increase production at the fields under development in 2010. Gazprom Neft's operating well stock added 96 new wells to total 6,720 wells. The Company brought 746 new operating wells on stream (79 wells more than the previous year). This increase was possible due to the extension of the development drilling programme: drilling amounted to 2,610 ths. m, which is 351,000 m more than the 2009 level.
Over the course of 2010, Gazprom Neft achieved one of the best operational coefficients in the industry. This was achieved, by reducing well downtime, allowing for repair time bringing the wells to a stable production level, and increasing commercial drilling speed as well as the average penetration rate per drilling crew.
Development of New Fields
The Company plans to develop new fields in Russia and abroad. Gazprom fields in the north of the Yamal Peninsula have huge potential. By developing them, the Company will be able to produce an additional 20 million tons, which is about one third of its current consolidated output. The transfer of the Novoportovsk field and the Eastern section of the Orenburg field to Gazprom Neft began in 2009. In 2010 Gazprom Neft successfully put the Ravninnoye field into commercial operation, with reserves of over 28 million tons.
Production at the Novoportovsk field, with reserves exceeding 200 mln tons of oil, is scheduled to begin in 2013. International Projects
Gazprom Neft is actively forming a portfolio of international production assets. The Company is a participant in joint projects in Iraq, Venezuela, Equatorial Guinea, Angola and Cuba. In accordance with Gazprom Neft's strategy, by the year 2020, foreign projects will account for about 10 percent of consolidated hydrocarbon production.
In early 2010, Gazprom Neft and the government of Iraq signed a contract for the development of the Badra field with reserves of about 3 billion barrels of oil. The field will be developed by a consortium of oil companies including Gazprom Neft (Russia), Kogas (Korea), Petronas (Malaysia), and TRAO (Turkey). Gazprom Neft's share as an operator in the project is 30 percent.
In 2010, the Company also signed agreements for the development of offshore fields in Cuba and Equatorial Guinea. In the development of the Cuban fields, Petronas (Malaysia) will be Gazprom Neft's partner, and the offshore African fields will be explored together with GEPetrol (Equatorial Guinea).
Gazprom Neft is the leader of the Khunin-6 project for the development of the heavy oil zone in the Orinoco basin (Venezuela). The decision to award this status to Gazprom Neft was made by the Board of National Oil Consortium LLC, consisting of five major oil companies - Gazprom Neft, LUKOIL, Rosneft, Surgutneftegaz and TNK-BP.
