Gazproim Neft and MNGK Settled Disagreements on MNPZ Management

JSC Gazprom Neft and JSC Moscow Oil and Gas Company (MNGK) have settled disagreements on MNPZ management.

For that purpose JSC Gazprom and Moscow Government have signed the memorandum of understanding setting out principles of management of JSC Moscow Refinery (MNPZ).

MNPZ will be managed on an equal footing. JSC Gazprom Neft and MNGK will jointly make managerial decisions on primary issues of company development and key appointments.

Opportynity of further consolidation of other assets of JSC Gazprom Neft and MNGK on the mutually beneficial basis is also considered.

Settlement of the conflict between MNPZ shareholders will provide for implementation of the comprehensive MNPZ renovation program focused on supply of high-quality oil products to the region.

Reference

JSC Gazprom Neft is one of the largest Russian oil and gas companies. Main Gazprom Neft activities include oil and gas production, oil and gas field servicing, refining and oil product sales.

JSC Gasprom Neft operates in the largest Russian oil and gas regions: Khanty-Mansiyskiy and Yamalo-Nenetskiy Autonomous Districts, Tomsk and Omsk Regions as well as Chukotskiy Autonomous District. Main processing facilities of the Company are situated in Omsk, Moscow and Yaroslavl Regions. JSC Gazprom Neft sales network covers the whole Russian Federation.

As for now, JSC Gazprom Neft is one of the most fast-growing Russian oil companies.

JSC MNGK owns controlling stake (50.84%) in Moscow refinery that has more than 25,000 ton daily capacity.

MGNK also owns controlling stake in filling station network that uses MTK and NEFT trademarks (139 filling stations in Moscow and Moscow Region). That allows the Company to be one of the leaders at the Moscow oil product market.

Sibir Energy plc owns 100% of shares in MNGK.

JSC Moscow Refinery shows stable positive dynamics of growth of main performance indicators: oil refining volume, gasoline and diesel oil production.

If compared with the previous years, 3Q2007 oil refining volume increased by 701, 448 tons of oil amounting to 7,726,057 tons. Gasoline production increased by 478,317 tons amounting to 2,099,587 tons. That includes production of environmentally friendly AI-95 gasoline by 62,155 tons. Diesel oil production increased by 221,918 tons.