Overview / Petroleum Product Sales / Premium Business Segments / Production and Sale of Motor Oils
The Company places great importance on the production and sales motor oils, as is evidenced by its dedicated vertically integrated oil company, LLC Gazprom Neft-Lubricants.

Gazprom Neft — Lubricants has production assets in Western Siberia (Omsk), European Russia (Yaroslavl), Moscow Region (Fryazino), Western Europe (Bari, Italy) and Serbia (Novi Sad). The Company has received ISO international quality certificates that confirm its compliance with international standards (ISO 9001:2008, 14001:2004, OHSAS 18001:2007). At the present time the Company is preparing for the ISO/TS 16949 certification (requirements for the suppliers of automotive manufacturer assembly line components).


Source: Company data

LLC Gazprom Neft — Lubricants sells its products through the extensive Gazprom Neft filling station chain, and also supplies retailers and online stores, service stations, and assembly lines for automotive manufacturers. Gazprom Neft — Lubricants sells its products both inside and outside of Russia.

By year-end 2012, the Company’s market share of packaged oils in Russia had increased from 9 to 16%. Sales of G-Family premium-grade oils in domestic and foreign markets increased 2.5 times. Overall, Gazprom Neft — Lubricants sold 149 thousand tonnes of packaged oils.

In the reporting year, the Company continued to expand its motor oils sales channels. The Company began delivering oils to the Avtotor assembly lines (General Motors, Hyundai), Mercedes Benz Trucks Vostok and Derveis (Lifan), as well as to the GAZ main assembly line.

LLC Gazprom Neft — Lubricants fulfilled half of OJSC Gazprom business units demand for lubricants. The Company began delivering premium-grade oils to the Volga Pipe Works, the Chusovoy and Taganrog Steel Works, and VSMPO-AVISMA. It also succeeded in increasing sales through premium retail channels. The customer base of service stations was expanded from 300 to 1,500 customers, with deliveries made to the largest service station chains — RRT (Subaru, Honda), Truck Center (MAN, IVECO), and Avtomir (AvtoVAZ, Daewoo, Geely, Chery). The Company starting supplying O’KEY, Lenta, and PRIZMA hypermarket chains, the EXIST.RU online store, the AGA chain in Russia and eight hypermarket chains in Italy (totaling 500 outlets) — Auchan, Carrefour, and PUNTO LEGNO.

In 2012, Gazprom Neft — Lubricants continued expanding into international markets by broadening the geography of lubricant sales outside Russia. The Company began delivering oils to Turkey, Bulgaria, Iraq, and Turkmenistan. The Company now sells products in 38 different countries .

A high-profile advertising campaign continued in 2012, which promoted the image of the new G-Family brands as internationalquality products for both consumer and business markets. A program promoting the G-Energy premium brand through international motor racing was launched; the Company ran a large-scale ATL advertising campaign for the G-Energy brands in March and April (TV, outdoor advertising, radio) and released a new TV commercial for the G-Energy Adaptive Components Formula.

Gazprom Neft — Lubricants has set itself a stretching goal — to create a national lubricant company, which is a recognized as a leader in technologies, marketing and services related to high-specification premium-grade oils, lubricants and service fluids under a global brand. In pursuit of these objectives, LLC Gazprom Neft — Lubricants is planning to add new, premium-grade lubricants to the product line, increase market share in Russia and enable further expansion into foreign markets by building up a strong distribution network.


Compared to 2011
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