JSC Gazprom Neft’s Board of Directors conducts wide-ranging review

Press-release

JSC Gazprom Neft’s Board of Directors has carried out a review of the company’s licence agreements relating to subsurface mineral resources in Russia. JSC Gazprom Neft and its subsidiaries have the operating rights for 70 licence blocks in the Yamalo-Nenets and Khanty-Mansi Autonomous Areas, the Tomsk, Omsk, Tyumen, Irkutsk, and Orenburg Regions, the Sakha Republic (Yakutia), and on the Pechora Sea shelf.

JSC Gazprom Neft is working proactively to minimize potential risk in its licence operations, including an automated system to monitor compliance with its licence obligations. All subsidiary companies have standing committees chaired by their CEOs, which manage risk with respect to licence obligations. The company is developing a three-year geological exploration investment programme based on its licence obligations. Moreover, procedures for updating technical documentation associated with hydrocarbon development and production are planned three years in advance, taking into account licence end dates. JSC Gazprom Neft successfully extended nine licences in 2013.

Information on managing risks associated with corruption was also presented to the Board of Directors. JSC Gazprom Neft has developed and introduced an integrated risk management system. This takes into consideration all types of corporate risk: production, commercial, service-related, and corruption risks.

JSC Gazprom Neft has a zero-tolerance policy on all types and instances of corruption and fraud, and has developed a warning system for these types of risk. The company upholds a consistent anti-corruption policy which is integral to the overall risk management system. The important principles governing this work are constant monitoring of existing and potential risks, and timely identification and objective assessment of risks.

These include measures such as due diligence checks on entities and individuals providing or planning to provide services for and on behalf of the company. JSC Gazprom Neft takes all steps necessary to ensure that all company employees, affiliates, and contractors are informed of the anti-corruption policy requirements.