The development strategy for OJSC Gazprom Neft was adopted in early 2010. It defines the main principles, goals and directions for strategic development, as well as the performance that the Company, together with its subsidiaries and associates, expects to achieve. All long- and medium-term plans and associated task-setting until 2020 will continue to be based on this current Development Strategy. However, in view of changing internal and external factors, the Company plans to update the Development Strategy in 2013.
To become a large, Russian-based international player, owning a regionally-diversified portfolio of assets across the entire value chain, actively participating in regional development, and with a high degree of social and environmental responsibility.
Business Targets for the Company
Gazprom Neft’s key operational performance targets through 2020 are focused on: production, refining and sales to end consumers.
22 million tonnesincluding: sales of automotive fuels (in Russia and the CIS) 18 million tonnes product-related premium sales (aviation fuel, bunkering, lubricants, bitumens and petrochemicals)
The Company’s plans for the next three years project a strong performance against key financial indicator targets (revenues, EBITDA) across all operating segments.
- Launch major projects in the northern part of the Yamal-Nenets region
- Develop the northern continental shelf. Commencing production at the Prirazlomnoye field
- Optimize commercial production conducted using the current resource base, including production from complex reserves
- Test new technologies for developing nonconventional reserves
- Further international development
- Migrate the Moscow Refinery to the production of Euro-5 grade motor fuels
- Increase the production of Euro-5 motor and diesel fuels
- Further growth in oil refining depth
- Increase in light petroleum product yield and considerable reduction in irretrievable losses
- Further reduction in energy consumption for oil refining
- Further increase in sales volumes through premium channels (aviation fuel, ship fuel and lubricants)
- Significant increase in sales of the G-Drive fuel through the retail network
- Market launch of new products for selling to end consumers
- Expand the refueling facility chain at airports
- Expand the filling station chain
- Expand the bunkering infrastructure
Refining the Company’s Strategy
In 2013, Gazprom Neft plans to update the Strategy adopted in 2010 to address changing internal and external factors. Since the adoption of the current Strategy the Company has achieved high levels of operating performance, the portfolio of its assets has changed dramatically, refinery development programs have been implemented, market conditions have changed significantly, and the tax system has been frequently amended. The Company plans to incorporate the above factors into the revised Strategy, reviewing some of the targets in the production segment and the refining and marketing segment. However, Gazprom Neft’s general drivers of growth will not undergo significant changes. The horizon for the updated Strategy will extend through 2025.
Some of the main challenges to be addressed during the course of the Strategy update include:
In the production segment, there is a detailed strategy for developing the resource base, prioritizing prospective reserves and making longterm plans based on operating indicators. In addition, the Company plans to place greater importance on projects related to testing breakthrough technologies for developing unconventional reserves.
In the refining segment – OJSC Gazprom Neft plans to focus on the technological development of refineries by implementing refining quality and depth programs, as well as programs for operational improvements and environmental protection.