Siberian Oil Company (“OJSC Sibneft”) was established by Decree of the President of the Russian Federation. The state acted as the Company’s founder contributing to its authorized capital state-owned portfolio of shares in some of the country’s largest oil companies: OJSC Noyabrskneftegaz, OJSC Noyabrskneftegazgeofizika, OJSC Omsk Refinery and OJSC Omsknefteprodukt.
The Russian Government privatized Sibneft as part of a program to develop the market economy. Private investors bought 49% of Sibneft stock at auctions in 1996.
In 1997 the Financial Petroleum Company won the state share in Sibneft at auction, as part of the Government’s Shares for Loans program.
The Company developed rapidly owing to its high resource potential, efficient refining capacities and professional management. Sibneft management focused on modernizing production, introducing the latest technology and optimizing business processes. A proactive acquisition policy allowed the Company to expand rapidly its production territory (in Tomsk and Omsk Regions, and Chukotka Autonomous District) and its sales network (Sverdlovsk and Tyumen Regions, Krasnoyarsk Territory, and the cities of St. Petersburg and Moscow). One of the Company’s major purchases during this period was its acquisition of 49.9% of the shares in JSC Slavneft Oil Company, which produced oil and gas in Western Siberia and Krasnoyarsk Territory.
OJSC Sibneft’s controlling interest (75.68 %) was acquired by Gazprom Group. On May 13, 2006, the Company was renamed Open Joint Stock Company (OJSC) Gazprom Neft. The new strategic objectives of Gazprom Neft were to become a global company with regionally diversified assets along the entire value chain.
Gazprom Neft entered the retail market in Central Asia by creating a subsidiary – Gazprom Neft Asia – to sell the Company’s petroleum products in Kyrgyzstan, Tajikistan and Kazakhstan.
In the same year, the Company took part in government-level international projects for the first time after becoming a shareholder (jointly with JSC Rosneft and JSC Transneft) in the Burgas-Alexandroupolis Trans-Balkan Oil Pipeline construction project.
Business units were set up within the company to focus on activities in specific segments: Gazprom Neft Nefteservis, Gazprom Neft Marine Bunker, Gazprom Neft-Lubricants, and Gazprom Neft-Aero. In December 2007, to further expand its resource base, Gazprom Neft acquired a 50% stake in Tomskneft, a company producing oil and gas in the Tomsk Region and Khanty- Mansiysk Autonomous District.
Gazprom Neft, Rosneft, Lukoil, TNK-BP and Surgutneftegaz signed a Memorandum of Understanding regarding the cooperation and joint participation in projects in Venezuela and Cuba, as part of the National Oil Consortium.
Gazprom Neft acquired new assets for its resource portfolio and refinery capacities: the Serbian oil company, NIS, and a controlling stake in Sibir Energy. The latter acquisition increased the Company’s ownership stake in the Moscow Refinery and provided access to the Salym oilfields.
In April 2009, the Company concluded a deal with Chevron Global Energy to purchase the Chevron Italia S.p.A. oils and lubricants production plant in Bari (Italy). Another significant development for Gazprom Neft in 2009 was the launch of a large-scale rebranding program for the Company’s filling station chain.
Gazprom Neft expanded its presence in the global oil and gas market. The Company closed a deal to acquire the production division of STS-Service, which is owned by Sweden’s Malka Oil. Gazprom Neft signed a contract to develop the Badra field in Iraq, containing more than 2 bn bbl of oil reserves. Gazprom Ne ft became the leader of a consortium of Russian vertically integra ted oil companies in a project to develop the Junin-6 oil block in Venezuela; it also joined, on the basis of production sharing, an offshore project in Equatorial Guinea at a geological exploration stage, and acquired stakes in an offshore geological exploration project in Cuba. Gazprom Neft joined a project to develop fields under a development license held by SeverEnergia (via subsidiaries). A retail filling station chain was acquired in Kazakhstan. Moreo ver, the Company commissioned two Cenomanian gas deposits at the Muravlenkovskoye and Novogodneye fields in Russia.
Gazprom Neft improved its operating performance substantially by purchasing new assets and increasing the efficiency of existin g fields. The Company purchased 5.15% of NIS shares, bringing its stake to 56.15%, and also became the sole shareholder of Sibir Energy; it also acquired the Tsarichanskoye and Kapitonovskoye fields in Orenburg Region, as well as the Eastern part of the Orenburgskoye field. The Company concluded a deal to join a project in the exclusive economic zone of the Republic of Cuba in the Mexican Gulf; started drilling at the Badra field in Iraq ; and conducted 3D offshore seismic exploration in the Niger delta basin in Equatorial Guinea. This year was also marked by highly successful oil refining and petroleum product campaigns. Gazprom Neft commercialized Euro-4 and Euro-5 fuels at its refineries and launched sales of a new premium class motor fuel under the brand G-Drive through its own filling station chain. Gazprom Neft expanded the geographic reach of its filling stations by enterin g the market in Russia’s Southern Federal District. Gazprom Neft-Aero, a subsidiary of the Company, began the refueling of aircraft at 12 Ministry of Defense airfields, obtaining the status of exclusive jet fuel supplier and aircraft fueling service provider to the Russi an Armed Forces. It also started aircraft refueling operations at the international airports of Bishkek and Manas in Kyrgyzstan. The Omsk Refinery started producing bituminous polymer materials.
Today, Gazprom Neft is one of Russia’s largest volume producers and refiners, and has established itself as the industry leader in efficiency. The Company started crude oil production in a pilot operation project at the Vostochno-Messoyakhskoye field, and also began commercial operations of the first stage of the Samburgskoye oil-gas condensate field owned by Russian-Italian company SeverEnergia, and continued to develop a production cluster in Orenburg Region, which included the Baleykinskoye field and the Uranskaya area following the acquisition of LLC Zhivoy Istok. At the end of the year the Company became the owner of the Novoportovskoye field and participated in some new hydrocarbon reserve exploration and development projects in Iraq. The company’s Moscow Refinery started producing Euro-4 Ai-92 and Ai-95 automotive gasolines, and the Omsk Refinery began production of Euro-4 and Euro-5 Ai-92 and Ai-95 automotive gasolines and Euro-5 diesel fuel. Joint venture OJSC Slavneft-YaNOS completely switched over to the production of high-octane Euro-5 Ai-92 and Ai-95 automotive gasolines. Gazprom Neft also gained access to the refining assets in the Republic of Belarus, as well as proce eding with the development of a distribution network in Ukraine under the Gazprom Neft brand and in Europe (Serbia and Romania) under the Gazprom brand.