Development Strategy
Gazprom Neft's strategic goal is to become a major international player of Russian origin with a regionally diversified pool of assets along the entire value chain by actively participating in the development of the regions and demonstrating a high level of social and environmental responsibility.
Strategy up to 2020: Increasing the Scale and Expanding Geographical Coverage While Retaining a Leading Position in Terms of Efficiency
| Growth in Scale | Geographic Business Expansion | Maintaining and Raising Business Efficiency |
|---|---|---|
|
Proven Oil Reserves Oil and Gas Output Refining Sales through Premium Segments |
Production — RF (YANAO, KHMAO, Eastern Siberia, Offshore), Central Asia, Middle East, Africa, Latin America Refining — RF, Europe Sales of Petroleum Products — European Russia, Western Siberia, Europe, Central Asia, CIS |
Ensure the highest Total Shareholder Return (TSR) among Russian oil companies Be one of the three leaders in efficiency among Russian vertically integrated oil companies |
In 2009 the Company's Board of Directors approved:
- The Development Strategy for Exploration and Production up to 2020
- The Oil Refining Strategy up to 2020
- The Strategy for Petroleum Products Sales up to 2020.
By 2020, Gazprom Neft intends to increase crude production to 100 mln toe per year. The reserves-to-production ratio will be maintained at a level of no less than 20 years, and the share of projects in the initial development stage will provide for at least 50% of production by the year 2020.
Refining throughput by Gazprom Neft will reach 70 mln t per year by 2020 as the Company increases its own oil refining capacities to 40 mln t in Russia and 25-30 mln t abroad. The target breakdown of oil resources allocation at the final stage of the Strategy will be as follows: 40% of oil will be refined in Russia, 25-30% will be refined abroad, and 20-25% will be sold directly.
The Company's strategic objectives in the sale of petroleum products by the year 2020 are: selling 40 million tonnes of petroleum products through marginal distribution channels in Russia and abroad, creating a strong retail brand, increasing the average circulation at filling stations by 20 per cent and doubling the share of related goods and services in revenue.
Within the Russian and CIS markets, retail network growth will come from the following:
- Expanding the retail network until sales of motor fuels amount to 8.1 million tonnes per year through the Company's own network of filling stations and to 13 million tonnes per year together with wholesale to smaller outlets
- Developing dedicated businesses for the promotion of jet fuel, lubricants, bitumen, petrochemicals, and bunkering to raise total sales to more than 11 million tonnes per year.
