Management ’s Discussion and Analysis of Financial POSITION and Results of Operations for years ended December 31, 2012 and 2011
Definitions and Conversions
The following discussion is an overview of the Group’s financial position as of December 31, 2012 and its financial results for the years ended December 31, 2012 and 2011, and should be read in conjunction with the Consolidated Financial Statements and notes, which were prepared in accordance with International Financial Reporting Standards (“IFRS”).
In this report the terms “Gazprom Neft”, “Company” and “Group” represent JSC Gazprom Neft and its consolidated subsidiaries. This report represents the Group's financial position and results of operations on a consolidated basis.
Tonnes of crude oil produced are translated into barrels using conversion rates reflecting the oil density from each of the Company's oil fields. Crude oil purchased, as well as other operational indicators expressed in barrels, are translated from tonnes using a conversion rate of 7.33 barrels per tonne. Translations of cubic meters to cubic feet are made at the rate of 35.31 cubic feet per cubic meter. Translations of barrels of crude oil into barrels of oil equivalent (“boe”) are made at the rate of 1 barrel per boe and of cubic feet into boe at the rate of 6 thousand cubic feet per boe.