The Gazprom Neft Board of Directors reviews the work of its Internal Audit and Risk Management Directorate

Press-release Efficiency

The Gazprom Neft Board of Directors has reviewed information on the outcomes of work of its Internal Audit and Risk Management Directorate in 1H 2018.

Planned activities for 2018 had envisaged the Internal Audit department conducting 80 audits throughout the year. The department had completed all audits planned for 1H 2018 by 30 June 2018.

Audits of the company’s operating activities saw particular attention paid to assessing internal controls governing drilling and well finishing processes, oil metering, utilisation of associated petroleum gas (APG), and the transportation and sale of oil and oil products. In addition to this, the Internal Audit department completed a number of projects on cross-functional areas of company activity throughout 1H 2018, including financial operations, investment activities, and information technology. As a result of these investigations initiatives have now been implemented directed at improving the efficiency of internal controls over the business processes in question.

The company’s anti-fraud “Hotline” also remained in operation throughout 1H 2018.

Key areas of activity in risk management included preparing an annual schedule for evaluating and updating key risks facing the company, providing company business units with methodological support in identifying and assessing risks, and improving staff skills and competencies in risk management.

The Gazprom Neft Board of Directors has reviewed information on establishing a centralised internal control function as part of the company’s Internal Audit and Risk Management Directorate — a decision which will allow the adoption of a cohesive and integrated approach to the organisation and functioning of internal regulation, the development of an appropriate company-centric environment and corporate culture, and the systemization of information sources in internal audit.