The company today

Low prices on the oil and petroleum product market, a growing tax burden and stagnation in consumption on the local market presented new challenges for Gazprom Neft.

Rapid adaptation enabled the Company to maintain sustainable dynamics
in its production and financial indicators.

Amidst these conditions, the Company’s vertically integrated business model demonstrated a high level of efficiency.

Due to its success factors, Gazprom Neft continues to confidently move forward towards its strategic goals.

The Annual Report previously approved by the Board of Directors, Minutes No. ПТ-0102/23 dated 24 April 2017 and approved by the annual General Meeting of Shareholders of the Company, Minutes No. 0101/01 dated 14 June 2017

Key challenges

  • 1
    Low prices on the oil and petroleum products market
  • 2
    Growing tax burden on the oil and gas sector
  • 3
    Stagnation in domestic petroleum product consumption in the Russian Federation

Despite the unfavourable market situation, the Company has demonstrated stable positive dynamics in its production and operating performance and is steadily moving towards its strategic goals. Thanks to a highly efficient business model and timely response to external changes, the Company has maintained stability and investment appeal. The outlook for achieving its strategic goals remains positive.

For more information see "Overview of results"

Rapid adaptation to external challenges

Given the financial instability and economic slowdown, the Company’s efficiency has become the key to its sustainability and business longevity. Over the past two years, the Company has made significant progress in matters concerning production safety, has also become the leader in operating efficiency in Russia and is now committed to becoming one of the global leaders in terms of efficiency.

Efficiency and a broad range of oil prices

Price pressure on oil and the tax burden

Gazprom Neft’s vertically integrated business model comprised of two enlarged segments — Upstream and Downstream — is well-balanced: any change in oil prices increases profitability in one of the segments.

By consistently developing advantages in each segment, Gazprom Neft achieves the best operating efficiency among Russian VIOCs.

Key success factors

Exploration and

  • Growth in production by launching new projects
  • Maintaining production levels at mature fields through technological solutions
  • Enhancing drilling efficiency by using new technologies
  • Portfolio of promising projects to further increase production

Refining and

  • Among the highest oil refining efficiency indicators in Russia
  • Favourable positioning of oil refineries making it possible to sell 100% of petroleum products
  • Company-owned network of high-margin sales and product distribution