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Gazprom Neft and Khanty-Mansi Autonomous Okrug-Yugra sign cooperation agreement for 2016–18

Press-release Partnership

Alexander Dyukov, CEO, Gazprom Neft, and Natalya Komarova, Governor of the Khanty-Mansi Autonomous Okrug—Yugra, have used the occasion of the St Petersburg International Economic Forum to sign an agreement on social and economic cooperation throughout 2016–18. The agreement envisages the company and the regional government cooperating in developing the full scientific and technological potential of the region, as well as collaborating in energy efficiency and conservation, ecological safety, and environmental protection.

The Khanty-Mansi Autonomous Okrug—Yugra is one of the most important regions in which Gazprom Neft has a presence. The region is home to one of the company’s oil production companies, Gazpromneft-Khantos, currently developing eight fields, the most significant of which is the Yuzhno-Priobskoye field. The commissioning of a new gas processing facility here in 2015 has seen utilisation of associated petroleum gas (APG) reach 95 percent.

Gazpromneft-Khantos is the most important of the Gazprom Neft Group companies involved in the investigation of the Bazhenov formation. Major work into enhanced recovery technologies at hard-to-recover reserves is being undertaken at the Palyanovskaya acreage at the Krasnoleninskiy and Yuzhno-Priobskoye fields. In addition to this, Salym Petroleum Development N.V., a Gazprom Neft—Shell joint enterprise, in 2016 initiated a project at the Salym group of fields involving the injection of a proprietary three-component solution into strata: something which will lead to a significant increase in the oil recovery factor (ORF) in the future.

The company will also continue its cooperation with the Khanty-Mansi Autonomous Okrug on its import substitution programme. Gazpromneft Lubricants — operator of the Gazprom Neft lubricants business — supplied businesses in the Khanty-Mansi Autonomous Okrug with approximately 100 tonnes of Gazpromneft and G-Energy branded products throughout 2015: a volume expected to increase to 30 percent in 2016. The implementation of the import-substitution programme has, according to expert analysis, achieved savings of up to 15 percent for the regional budget on the purchase of petroleum products and lubricants, across a range of sectors.

The agreement also provides for the continuation of the Gazprom Neft “Home Towns” project, increasing investment in sporting, educational and infrastructure projects throughout the Khanty-Mansi Autonomous Okrug—Yugra, providing for the implementation of initiatives of major social importance, and supporting cultural and educational initiatives in collaboration with the indigenous minorities of the Russian Far North in the Surgut and Nizhnevartovsk districts.

Since 2014 Gazprom Neft has held an annual competitive grants initiative in the Khanty-Mansi Autonomous Okrug—Yugra, making possible the implementation of the best initiatives submitted by local communities, non-commercial organisations and local government, directed at developing their local areas and addressing social problems. Fifty nine applications were received in 2016, an increase of one third on the number participating in 2015.

«The Khanty-Mansi Autonomous Okrug—Yugra (‘Yugra’) is a region of major importance for Gazprom Neft. This is the heart of our company’s activities in testing out cutting-edge technologies for the development of hard-to-recover reserves. Our successes in opening up the Yuzhno-Priobskoye field have had a highly beneficial effect on the region’s economy and investment climate. Yugra’s long-term sustainable development is closely tied to Gazprom Neft’s activities and our company, committed to long-term corporate social responsibility, is committed to improving quality of life here».
Alexander Dyukov
Alexander Dyukov CEO, Gazprom Neft
«The Yugra government’s collaboration with Gazprom Neft represents the coming together of two partners committed to sustainable development and moving forward. We greatly appreciate the company’s investment in attracting new, innovative technologies to the region, specifically in working with hard-to-cover reserves. I am delighted to see this new agreement for 2016. This year has seen us begin developing the concept of ‘The LEAN Region,’ aimed at reducing waste of all kinds, as well as improving productivity. Gazprom Neft is one of Yugra’s pioneers here, and we are very interested in developing this together, and disseminating this experience. The agreement includes specific points concerning the company’s involvement in implementing the ‘LEAN Region’ concept, particularly in terms of implementing LEAN production, and in developing a network of scientific-research centres for LEAN technologies. I believe this new partnership round will serve to improve productivity and our wider economy, as a whole».
Natalya Komarova Khanty-Mansi Autonomous Okrug—Yugra Governor
Notes for editors

The Gazprom Neft “Home Towns” project brings together the company’s various CSR initiatives and projects throughout those regions in which it has a presence. Directed at developing the full social and economic potential of these regions, as well as at improving quality of life, the programme includes initiatives for neighbourhood enhancement, for the development of children’s and public sports facilities, and initiatives in education, health, and in preserving and supporting the culture of the indigenous populations of the Russian Far North.

More than 130 social and environmental projects have been implemented throughout the Khanty-Mansi Autonomous Okrug—Yugra under the Gazprom Neft “Home Towns” programme, including construction of the Yugra Chess Academy, management of an annual chess tournament, and the equipping of 20 chess clubs at social, educational and medical facilities throughout the city. Other initiatives have included supporting the annual “Spirit of Fire” cinematography festival for first-time film makers; housing construction in Khanty-Mansiysk, and the construction and refurbishment of social facilities; and projects directed at protecting and promoting the culture of the indigenous minorities of the Russian Far North.

Gazpromneft-Khantos LLC was founded in 2005. The company is active in fields throughout the Khanty Mansi Autonomous Okrug—Yugra, including the southern license area of the Priobskoye field, the Orekhovo-Ermakovskoe, Yuzhnoye, Palyanovskoye, Yuzhno-Kinyaminskoye, Maloyuganskoye and the Zapadno-Zimnee fields, and the Zimnee field in the Tyumen Oblast. The company’s total production in 2015 was 15 million tonnes of oil equivalent (mtoe), an increase of 2.8 percent on 2014.

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