Operating indicators & analysis

  • 4 new fields and 39 new deposits were discovered in 2011 (consolidated companies and associates);
  • As of December 31, 2011, the Company’s proven reserves were 5,672 mn BOE, including 4,903 mn bbl of oil, and 4.6 trln ft3 of gas;
  • As of December 31, 2011, the Company’s proven reserves, including share in associates, were 8,319 mn BOE, including 6,789 mn bbl of oil, and 9.2 trln ft3 of gas;
  • Information on proven reserves does not include figures relating to the Serbian subsidiary NIS, as disclosure of this information is prohibited by the Government of the Republic of Serbia;
  • Reserves were appraised by third-party specialists from DeGolyer & McNaughton based on Petroleum Reserve Management Standards (PRMS) of the Society of Petroleum Engineers (SPE);
  • Reserve figures measured by PRMS classification as stated in the table differ from those stated in the Group’s consolidated reports in the section giving additional information on activities related to exploration and production of oil and gas. The indicators used in the additional information were prepared to meet the requirements of the US Securities and Exchange Commission (SEC), where calculations must use the 12-month average price as of the first day of each month in the reporting period. Reserves measured by the PRMS classification table in the table above use the best estimates of the Company’s management for future prices of oil and natural gas.
  • The number of new wells drilled at fields owned by associates rose to 487 in 2011, representing a 19.7% increase from 2010, mainly due to development of the Krapivinskoye field (Tomskneft).
Exploration drilling & discovered fields

2009

2010

2011

Change, %
2011/2010

Change, %
2010/2009

Consolidated companies

Exploration drilling (thou m)

38

64

63

(1.6)%

68.4%

Exploration wells drilled

13

21

25

19.0%

61.5%

Fields discovered

3

1

4

300.0%

(66.7)%

Oil and gas bearing deposits discovered

5

20

23

15.0%

300.0%

Associates

Exploration drilling (thou m)

25

38

63

65.8%

52.0%

Exploration wells drilled

9

14

27

92.9%

55.6%

Oil and gas bearing deposits discovered

3

27

16

(40.7)%

800.0%

Exploration drilling
Number of exploration wells
drilled
Number of oil & gas bearing deposits discovered

Source: Company data

Source: Company data

Source: Company data

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Reserves of oil & gas, mn BOE

Share in associates

Gazprom Neft

Slavneft

Tomskneft

SPD

Sever Energia

Messoyakha neftegaz

Total

Proven reserves (December 31, 2009)

4,989

1,489

701

283

7,462

Production

(249)

(69)

(42)

(30)

(390)

Revision of earlier estimates

539

(494)

(43)

(3)

(1)

Purchased licenses

455

455

Proven reserves (December 31, 2010)

5,279

926

616

250

455

7,526

Production

(279)

(69)

(43)

(31)

(422)

Revision of earlier estimates

355

83

90

15

355

898

Purchased licenses

317

317

Proven reserves (December 31, 2011)

5,672

940

663

234

810

8,319

Total probable reserves of Group

2,944

1,506

389

101

666

273

5,879

Total possible reserves of Group

2,456

1,371

276

58

823

299

5,283

Production drilling

2009

2010

2011

Change, %
2011/2010

Change, %
2010/2009

Consolidated companies

Production drilling (thou m)

2,259

2,610

2,254

(13,60)%

15,50%

Number of wells drilled

667

746

735

(1.50)%

11.80%

Average yield of wells in use (t/day)

16.3

16.06

15.27

(4.90)%

(1.70)%

Water flood rate, %

82.1

82.18

83.63

1.80%

0.10%

Associates

Production drilling (thou m)

1,296.1

1,623

1,611

(0.70)%

25.20 %

Number of wells drilled

383

407

487

19.70%

6.30%

Production

2009

2010

2011

Change,%
2011/2010

Change,%
2010/2009

Crude oil (mn bbl)

Gazprom Neft-Noyabrskneftegaz

138.05

129.12

120.26

(6.9)%

(6.5)%

NK Sibneft-Yugra

60.82

69.25

75.10

8.4%

13.9%

Gazprom Neft

12.96

11.10

10.42

(6.1)%

(14.4)%

NIS

5.14

7.17

8.36

16.6%

39.5%

Other

7.97

13.56

18.58

37.0%

70.1%

Total crude oil production by consolidated companies

224.94

230.20

232.72

1.1%

2.3%

Share in production of Slavneft

69.34

67.33

66.32

(1.5)%

(2.9)%

Share in production of Tomskneft

40.73

38.72

38.65

(0.2)%

(4.9)%

Share in production of SPD

14.34

29.88

30.58

2.3%

108.4%

Total share in crude oil production of associates

124.41

135.93

135.55

(0.3)%

9.3%

Total crude oil production

349.35

366.13

368.27

0.6%

4.8%

Gas (bn ft3)

Gazprom Neft

73.22

107.93

277.67

157.3%

47.4%

Share in production of Slavneft

13.25

11.91

14.93

25.4%

(10.1)%

Share in production of Tomskneft

24.95

20.69

25.74

24.4%

(17.1)%

Share in production of SPD

1.86

Total gas production

111.42

140.53

320.20

127.9%

26.1%

Hydrocarbons (mn BOE)

Gazprom Neft

237.14

248.19

279.00

12.4%

4.7%

Share in production of Slavneft

71.55

69.32

68.81

(0.7)%

(3.1)%

Share in production of Tomskneft

44.89

42.18

42.94

1.8%

(6.0)%

Share in production of SPD

14.34

29.88

30.89

3.4%

108.4%

Total hydrocarbon production

367.92

389.57

421.64

8.2%

5.9%

Daily hydrocarbon production (mn BOE/day)

1.01

1.07

1.16

8.2%

5.9%

Hydrocarbon production, including the share in production by associates, rose by 8.2% in 2011 due to continued production growth at the Priobskoye field, launch of gas production at the Muravlenkovskoye and Novogodneye fields, and the acquisition of field assets in Orenburg Region (the eastern part of the Orenburg field, the Tsarichanskoye field and the Kapitonovskoye field).

Production by JSC Gazprom Neft Orenburg in full years 2011, 2010 & 2009 is given below

2009

2010

2011

Oil (mn bbl)

3.90

4.04

4.08

Gas (bn ft3)

0.24

0.22

0.18

Total production of hydrocarbons (mn BOE).

3.94

4.08

4.11

Purchased crude oil, mn bbl

2009

2010

2011

Change, %
2011/2010

Change, %
2010/2009

Oil purchased in Russia, (mn bbl).

24.77

38.62

42.04

8.90%

55.90%

Oil purchased on the international market, (mn bbl)

16.11

17.42

12.25

(29.70)%

8,10%

Total oil purchased, (mn bbl)

40.88

56.04

54.29

(3.10)%

37.10 %

Total refining rose by 6.8% in 2011 compared to 2010, due to:

  • Maximum load at Company refineries in Russia due to high demand for petroleum products on the domestic market and higher refining margin (year-on-year);
  • Full substitution of third-party crude oil by own crude oil by own crude oil the Moscow Refinery

Refining by NIS in 2011 fell due to scheduled program to optimise its production structure.

Output of gasoline rose by 11.7% in 2011 compared to 2010, due to:

  • Greater efficiency of oil refining than crude exports;
  • Higher demand for petroleum products in the domestic market.

Requirements for motor fuels to meet the Government’s Technical Regulation for fuel quality caused the following changes in production structure:

  • Lower production of Class 2 gasoline in 2011 compared to 2010, and increased production of Class 3 gasoline;
  • Start of production of Class 4 gasoline (by the Moscow Refinery from January 2011, and by the Omsk and Yaroslavl Refineries from February 2011), and of Class 5 gasoline (at the Omsk Refinery from June 2011).

Purchases of petroleum products on international markets rose by 119.0% in 2011 due to increased trading activity and favorable market conditions.

Purchases of petroleum products on the CIS market doubled in 2011 compared to 2010 due to increased trading activity and higher demand for petroleum products in CIS member states. Purchases of petroleum products on the domestic market rose by 24.5% in 2011 compared to 2010, due to the need to meet high demand for petroleum products at the Company’s filling stations.

The total number of the Company’s operating filling stations rose by 4.6% in 2011 against 2010. The number was determined by partial completion of upgrades of filling stations in Russia, the CIS and Eastern Europe, and the purchase of 113 filling stations in Russia.

Petroleum products purc hased on international markets

2010

2011

Change, %

mn USD

mn t

mn USD

mn t

mn USD

mn t

Naphta

109

0.16

83

0.09

(23.9)%

(43.8)%

Diesel fuel

97

0.13

539

0.55

455.7%

323.1%

Fuel oil

25

0.06

93

0.14

272.0%

133.3%

Aviation fuel

56

0.07

144

0.14

157.1 %

100.0%

Other

19

Total

287

0.42

878

0.92

205.9%

119.0%

2009

2010

Change,%

mn USD

mn t

mn USD

mn t

(100.0)%

(100.0)%

High-octane gasoline

2

(100.0)%

(100.0)%

Low-octane gasoline

4

0,01

336.0%

220.0%

Naphta

25

0.05

109

0.16

42.6%

(7.1)%

Diesel fuel

68

0.14

97

0.13

Fuel oil

25

0.06

700.0%

600.0%

Aviation fuel

7.00

0.01

56

0.07

170.8%

100.0%

Total

106

0.21

287

0.42

170.80%

100.00%

Purchases of petroleum products (in CIS)

2010

2011

Change, %

mn USD

mn t

mn USD

mn t

mn USD

mn t

High-octane gasoline

43

0.05

126

0.21

193.00%

320.00%

Low-octane gasoline

12

0.02

25

0.05

108.30%

150.00%

Naphta

23

0.04

Diesel fuel

57

0.08

117

0.18

105.30 %

125.00 %

Other

11

0.02

23

0.03

109.10%

50.00%

Total

123

0.17

314

0.51

155.30%

200.00%

2009

2010

Change, %

mn USD

mn t

mn USD

mn t

mn USD

mn t

High-octane gasoline

47

0,09

43

0.05

(8.5)%

(44.4)%

Low-octane gasoline

10

0.02

12

0.02

20.0%

Naphta

72

0.15

57

0.08

(20.8)%

(46.7)%

Diesel fuel

39

0.13

(100.0)%

(100.0)%

Other

8

0.02

11

0.02

37.5%

Total

176

0.41

123

0.17

(30.1)%

(58.5)%

Purchases of petroleum products (domestic market)

2010

2011

Change, %

mn USD

mn t

mn USD

mn t

mn USD

mn t

High-octane gasoline

160

0.24

786

1.00

391.30%

316.70%

Low-octane gasoline

53

0.09

9

0.01

(83.00)%

(88.90)%

Diesel fuel

226

0.49

230

0.34

1.80%

(30.60)%

Fuel oil

87

0.31

112

0.26

28.70%

(16.10)%

Aviation fuel

59

0.11

140

0.20

137.30 %

81.80 %

Other

68

0.31

92

0.12

35.30 %

(61.30) %

Total

653

1.55

1,369

1.93

109.60 %

24.50 %

2009

2010

Change, %

mn USD

mn t

mn USD

mn t

mn USD

mn t

High-octane gasoline

168

0.35

160

0.24

(4.80)%

(31.40)%

Low-octane gasoline

33

0.07

53

0.09

60.60%

28.60%

Diesel fuel

183

0.51

226

0.,49

23.50%

(3.90)%

Fuel oil

47

0.23

87

0.31

85.10%

34.80%

Aviation fuel

76

0.17

59

0.11

(22.40)%

(35.30)%

Other

28

0.11

68

0.31

142.90%

181.80%

Total

535

1.44

653

1.55

22.10%

7.60%

Sales of petroleum products by filling stations

2009

2010

2011

Change, %
2011/2010

Change, %
2010/2009

Operating filling stations in

Russia

921

947

1,043

10.1%

2.8%

CIS

152

181

202

11.6%

50.8%

Eastern Europe

473

468

425

(9.2)%

(1.1)%

Total

1,546

1,596

>1,670

4.6%

5.4%

Average daily sales per operating filling station in Russia (t/day)

9.1

10.3

14.2

37.9%

13.2%


Average daily sales per filling station in Russia in 2011 rose by 40% compared to 2010 as a result of the ongoing rebranding program for filling stations and higher demand for petroleum products at the Company’s filling stations.

The Company began a rebranding program at filling stations of Sibir Energy.

Growth of revenues by 34.2% in 2011 compared to 2010 was due to rising prices for crude oil and petroleum products and to increase of sales volumes.


Operating income depends entirely on business results, which in turn depend on a favorable market environment and the efforts of management.

Alexey Yankevich
Deputy CEO for Economics and Finance