This report offers a review of Gazprom Neft’s financial position as of December 31, 2011, and should be examined together with the Company’s financial statements and related explanations, prepared in accordance with the US Generally Accepted Accounting Principles (US GAAP)

Definitions & conversion methodology

This report discloses the financial situation and performance of Gazprom Neft on a consolidated basis.

To convert tons of produced crude oil to barrels, the report uses ratios that take account of the density of crude oil at each of our fields. Purchased petroleum, and other operating figures in barrels, are converted to barrels at 7.3 bbl per ton. Cubic meters are converted to cubic feet at 35.31 ft³ per 1 m³. Crude oil is converted to barrels of oil equivalent (BOE) at 1 barrel per 1 BOE and conversion of gas is at 6,000 ft³ per 1 BOE.

Forward-looking statements

This Report contains forward-looking statements concerning the financial position, operating results and business of Gazprom Neft and its consolidated subsidiaries. All statements except those that refer to accomplished facts can and should be considered as forward-looking statements. These are statements that describe future expectations based on the present situation and the assumptions of management, and involve known and unknown risks and uncertainties that may cause actual results, performance indicators or events to differ materially from those stated explicitly or implicitly in this Report.

Forward-looking statements include, among others, assertions about potential exposure of Gazprom Neft to market risks, and the expectations, beliefs, estimates, forecasts, projections and assumptions of Company management. Such forward-looking statements are marked with terms and phrases such as: ‘assume’, ‘anticipate’, ‘able’, ‘estimate’, ‘expect’, ‘intend’, ‘might’, ‘plan’, ‘objectives’, ‘outlook’, ‘probably’, ‘project’, ‘will’, ‘seek’, ‘target’, ‘risks’, ‘goals’, ‘should’, and other such similar terms and phrases. Numerous factors exist that can impact future operations of Gazprom Neft and cause its performance to vary materially from the figures in the forwardlooking statements included herein. Such factors include (without limitation):

• (a) crude oil and gas price fluctuations;
• (b) changes in demand for the company’s products;
• (c) currency exchange rate fluctuations;
• (d) results of drilling and production;
• (e) reserve estimates;
• (f) loss of market share and competition in the sector;
• (g) environmental and material risks;
• (h) risks related to finding assets and property to be acquired, and success in negotiation and closure of such transactions;
• (i) economic and financial market conditions in various countries and regions;
• (j) political risks, delay or acceleration of project implementation, cost approval and estimate; and
• (k) changes in the market environment.