Address by the Chairman of the Board of Directors

The operational results achieved by Gazprom Neft during the difficult period for the global oil and gas industry in 2015 once again confirmed that the Company has chosen the correct strategy as well as its competitiveness and sustainability.

Gazprom Neft increased hydrocarbon production by more than 20% to 79.7 million tonnes in the reporting year. The Company continued to invest in its development while moving towards its declared strategic goal of reaching a production level of 100 million tonnes of hydrocarbons by 2020.

The Company carried out work on major projects in 2015: the development of the Prirazlomnoye field as well as the Messoyakha and Kuyumba assets. Construction was also completed on the Gates of the Arctic terminal at the Novy Port field.

The second stage of a large-scale programme to modernise oil refineries continued in 2015. The Company built up its presence in premium sales channels, expanded the geography of the jet fuel business and increased the volume of petroleum products sold via the Gazpromneft filling station network.

In 2015, Gazprom Neft implemented a number of major environmental projects. Specifically, in September the Company launched the South Priobsky Gas Processing Plant, which will make a substantial contribution to reducing greenhouse gas emissions. The refinery’s ratio for extracting targeted components will exceed 95%, which is consistent with modern global requirements. The Moscow Oil Refinery began construction on the Biosphera biological treatment facilities. Thanks to its multi-tiered treatment system, water consumption by the Moscow Oil refinery will decrease 60%, and 75% of the water will be recycled in the production cycle.

Guided by its key priorities, the Company continues to implement development and social support programmes for its personnel and ensure employees have safe and attractive working conditions.

Gazprom Neft is a responsible social investor that strives for positive long-term changes in the regions where it operates. In particular, the Company continued to actively develop the “Native Towns” social investments programme in 2015. The “Multiplying Talent” tournament on oil and gas themes was conducted for the first time and attended by more than 1,200 schoolchildren from St Petersburg, Tyumen, Noyabrsk, Muravlenko, Novy Port and the village of Mys Kamenny. The “DIY City” project laboratory began functioning in Omsk with the goal of training citizens to design socially significant initiatives for the development of the urban environment. Total investment by Gazprom Neft in the projects of the “Native Towns” programme totalled approximately RUB 4 billion in 2015.

The new year of 2016 poses new challenges to the Company. But I am confident that Gazprom Neft will continue to successfully meet its strategic objectives and contribute to the development of the national economy, the oil and gas industry and the regions of operation.