Gazprom Neft Achieves Consolidated Production of 12,157 Thousand Tons in IQ 2010

In the first quarter of 2010, Gazprom Neft achieved consolidated crude oil production of 12.157 thousand tons, up 9.2 per cent as compared with the same period last year (crude production reached 160 thousand tons, up 1.3 per cent as opposed to the Company’s business plan). Consolidated average daily production in the first quarter 2010 exceeded 135 thousand tons.

Increase of production was achieved both due to efficient geological and technical operations and recent acquisitions by Gazprom Neft.

In the first quarter 2010, the first Gazprom Neft’s overseas asset Naftna Industrije Srbje (NIS) boosted production dramatically. Crude production hit 217.167 tons, up 23.4 per cent as compared to the first quarter of 2009. Generally, NIS has increased its crude production in Serbia by 40% since the takeover by Gazprom Neft.

Besides, the first quarter of 2010 was marked by production growth by 0.2 per cent in all Gazprom Neft’s subsidiaries. The Company’s subsidiary Gazpromneft-Khantos occupies leading positions in terms of production growth rate having increased its crude production in the reporting period up to 2.321 thousand tons, up 24.4 per cent as compared to the same period last year. Quarterly targets were also smashed in the Muravlenko branch of Gazpromneft-Noyabrskneftegaz and Gazpromneft-Vostok.

In the first quarter of 2010, crude production in Tomskneft and Slavneft joint ventures, where Gazprom Neft holds 50% stakes, flattened out and in practice remained at the last-year level. Sibir Energy and STS-Service acquired by Gazprom Neft in 2009 and early 2010 correspondingly showed a considerable production growth as well.

Gazprom Neft Deputy General Director for Exploration and Production Boris Zilbermints commented on the first quarter 2010 results:

“Geological and technical operations in the first quarter of 2010 were seriously complicated by adverse weather conditions. Low temperatures that settled in most production regions of Gazprom Neft last December held up till February 2010 and virtually suspended works.

In spite of the latter, though, in the first quarter of 2010 we managed to achieve targeted production primarily due to the excellent teamwork and by focusing our primary effort on performing geological and technical operations following the industry best practice”.