Open Joint Stock Company Siberian Oil Company (‘JSC Sibneft’) established by Decree of the President of the Russian Federation. The Federal Government founded the company by contributing its stake in some of Russia’s largest oil industry enterprises: JSC Noyabrskneftegaz, JSC Noyabrskneftegazgeophysika, JSC Omsk Refinery and JSC Omsknefteprodukt.
The Russian Government privatized Sibneft as part of a programme to promote development of a market economy. Private investors bought 49% of Sibneft stock at auctions in 1996. In 1997 the Financial Petroleum Company won an auction to purchase the government holding in Sibneft as part of the Government’s ‘shares for loans’ program.
Good resource potential, efficient refining capacities and professional management ensured rapid development of the Company. Sibneft management worked hard to modernise production, introduce the latest technology and optimize business processes. A proactive acquisition policy rapidly expanded the Company’s production territory (in Tomsk and Omsk Regions, and Chukotka Autonomous District) and the Company’s 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.
Gazprom Group bought a controlling interest in JSC Sibneft (75.68%) and subsequently, on May 13, 2006 the company’s name was changed to JSC 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 joined an international project with government-level importance, when it became 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 Nefteservice, 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 Tomsk Region and Khanty- Mansiysk Autonomous District.
Gazprom Neft, Rosneft, Lukoil, TNK-BP and Surgutneftegaz signed a Memorandum of Understanding on 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 gave it access to the Salym oil fields. In April 2009, the Company closed a deal with Chevron Global Energy to purchase the Chevron Italia s.p.a. oils and lubricants production plant in the city of Bari (Italy). Another important event 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. Milestones of the year include:
- Gazprom Neft closed a deal to purchase STS Service, a production unit of 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.
- Acquisition of a retail network in Kazakhstan
- Gazprom Neft joined a project to develop fields under a development license held by Sever Energy (via subsidiaries).
- Gazprom Neft became the leader of a consortium of Russian vertically integrated oil companies in a project for development of the Junin-6 oil block in Venezuela.
- Acquisition of a stake in an offshore exploration project in Cuba.
- The Company entered a production sharing project in Equatorial Guinea (at the exploration stage).
- The Company commissioned two cenomanian gas deposits in the Muravlenkovskoye and Novogodneye fields.
Gazprom Neft substantially improved its operating performance by purchasing of new assets and through more efficient development of existing fields.
Key events during the year were as follows:
- Gazprom Neft refineries began production of fuels to Euro-4 and Euro-5 environmental standards;
- The Tsarichanskoye and Kapitonovskoye fields in Orenburg Region were acquired. The Company also acquired the eastern part of the Orenburg field, where drilling began in November 2011;
- Gazprom Neft became the sole shareholder of Sibir Energy;
- The Company purchased a further 5.15% holding in NIS, thus raising its overall holding to 56.15%;
- 3D seismic studies were carried out on the continental shelf of Equatorial Guinea in the Niger delta;
- First sales of new premium-class motor fuel (G-Drive brand) through the proprietary chain of filling stations;
- Gazprom Neft-Aero began refueling of aircraft at 12 Ministry of Defense airfields, after being appointed the exclusive supplier of jet fuel and refueling services to the Russian armed forces;
- Gazprom Neft-Aero began refueling of aircraft at Bishkek and Manas international airports (Kyrgyzstan);
- The Omsk Refinery launched production of bituminous polymer materials;
- The Company closed a deal to join a project in the Cuban zone of the Gulf of Mexico;
- Gazprom Neft expanded the geography of its filling stations by entering the Southern Federal District;
- Drilling began at the Badra field in Iraq.