Economic Performance and Innovative Development

Gazprom Neft is progressing steadily towards its long-term goals and demonstrating stable growth in its production and operating performance: each year the Company increases the volume of proven reserves, hydrocarbon production and sales of petroleum products via premium sales channels while also maintaining refining volumes.

The actions undertaken by the Company to develop its business in 2015 were consistent with the long-term plans, development priorities and goals set forth in the corporate strategy. Particular attention was devoted to the introduction of new production technologies in the Company’s traditional regions, the implementation of strategic projects in the northern Yamal-Nenets Autonomous District and projects to develop the Arctic shelf, modernise oil refineries and develop the sales business.

Key changes to Gazprom Neft’s strategic vision in 2015-2016

The current economic situation is a significant factor for the Company and may require local changes such as an adjustment to the project implementation schedule and sequence. The Company concedes that short-term priorities may be displaced in favour of projects with short payback periods and projects that generate a positive cash flow in the medium term. However, the key long-term goals of Gazprom Neft remain important, attainable and unchanged. The strategy pursued by Gazprom Neft demonstratives its resilience to changes in the external environment.