GAZP ZPROM OM INVESTOR OR DAY 2016
GAZPROM NEFT OR DAY 2016 GAZP ZPROM OM INVESTOR DISCLAIMER This - - PowerPoint PPT Presentation
GAZPROM NEFT OR DAY 2016 GAZP ZPROM OM INVESTOR DISCLAIMER This - - PowerPoint PPT Presentation
OR DAY 2016 GAZP ZPROM OM INVESTOR GAZPROM NEFT OR DAY 2016 GAZP ZPROM OM INVESTOR DISCLAIMER This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Gazprom Neft
GAZP ZPROM OM INVESTOR OR DAY 2016
DISCLAIMER
This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses
- f Gazprom Neft and its consolidated subsidiaries
All statements other than statements of historical fact are, or may be deemed to be, forward-looking
- statements. Forward-looking statements are statements
- f future expectations that are based on management’s
current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Gazprom Neft to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Gazprom Neft and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, inclusively (without limitation): (a) price fluctuations in crude oil and oil products; (b) changes in demand for the Company’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market and industry competition; (g) environmental and physical risks; (h) risks associated with the identification
- f suitable potential acquisition properties
and targets, and successful negotiation and completion of such transactions; (i) economic and financial market conditions in various countries and regions; (j) political risks, project delay or advancement, approvals and cost estimates; and (k) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance
- n these forward-looking statements. Each forward-
looking statement speaks only as of the date of this
- presentation. Neither Gazprom Neft nor any of its
subsidiaries undertake any obligation to publicly update
- r revise any forward-looking statement as a result of
new information, future events or other information.
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GAZ AZPROM OM INVES VESTOR OR DAY 2016
2015 GAZPROM NEFT RESULTS
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GAZ AZPROM OM INVES VESTOR OR DAY 2016
2015 KEY EVENTS
Upstream Downstream
Completed installation of the crude-loading terminal in the Ob Sea, northern
Yamal, allowing the year-round shipment of oil from Novoportovskoye oil field
Commissioned Yuzhno-Priobsky gas processing plant in Khanty-Mansiysk Obtained management rights over controlling stake in Northgas Began production from Yaro-Yakhinskoye, the third Arcticgas oilfield in March and
reached target production in June
Received first three shipments of oil in compensation for expenses at Badra Began commercial oil production at Garmian (Kurdistan) in February
Continued reconstruction and modernization of refineries and storage
terminals
Increased number of active filling stations to 1,866 vs. 1,810 in 2014 Average daily throughput per station for Russian network 19.1 tpd Dynamics of gasoline and diesel sales outpaced Russian market Retained market share for all premium channels
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GAZ AZPROM OM INVES VESTOR OR DAY 2016 1, 1,923 923 2,128 128 2,29 291 2,555 555 2,69 694 2011 2012 2013 2014 2015E Probable Proved 57.3 .3 59.7 .7 62.3 .3 66.3 .3 79.7 .7 2011 2012 2013 2014 2015E 19.5 .5 22.5 .5 24.0 .0 25.7 .7 25.7 .7 2011 2012 2013 2014 2015E 40.5 .5 43.3 .3 42.6 .6 43.5 .5 43.0 .0 2011 2012 2013 2014 2015E
2015 RESULTS: GROWTH IN ALL KEY PERFORMANCE INDICATORS
Proved and probable reserves (PRMS) incl. JV, MMToe Refining throughput, MMTonnes Hydrocarbon production, MMToe Premium sales, MMTonnes
~ Y2014
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GAZ AZPROM OM INVES VESTOR OR DAY 2016
- 5%
0% 5% 10% 15% 20% 25% GPN Peer 1 Peer 2 Peer 3 Peer 4 Peer 5
OUTPERFORMING RUSSIAN AND INTERNATIONAL PEERS
Growth in hydrocarbon production (FY2015 vs. FY2014) , %
SOURCE: CE: CDU TEK PEERS: S: ROSNEFT EFT, , LUKOIL, , SURGUT UTNEFT EFTEG EGAS, , BASHN HNEFT EFT, , TATNEFT EFT
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GAZ AZPROM OM INVES VESTOR OR DAY 2016
DELIVERING PRODUCTION GROWTH AND AN INDUSTRY-LEADING REFINING ASSET BASE
Key strategic indicators 2015E 2025 target 79.7 .7 100 00.0 .0
Hydrocarbon production, MMtoe Refining throughput in Russia, MMTonnes Light products yield in Russia, % Conversion rate in Russia, %
62 62 81 81 80 80 95 95 40.0 .0 39.5 .5
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GAZ AZPROM OM INVES VESTOR OR DAY 2016
RESPONDING TO CHANGED MARKET ENVIRONMENT
Focusin using g on lower er risk sk and nd lower er cost st res esour urces ces Adjusting justing ref efiner inery y up upgr grade ade pr prog
- gram
ram Gr Growi wing ng ma marketing ting and d distrib stribution ution pr profitably itably Contr trolling
- lling cost
st High ghgrading grading intern ernational ational pr project ject po portf tfolio
- lio
Op Opti timi mizing zing up upst stream eam gr growth wth mo model el
Completion of large projects at advanced stage of development (Novoport, Messoyakha) Deferring decisions on high risk international projects whilst maintaining future
- ptionality
Aligning timing of upgrades with external context and capital allocation priorities Focusing on most profitable expansion opportunities Tighter control of operational and capital costs Prioritizing projects which will yield short-term production and cash flow increases and deliver short payback periods Continue exploration activities in accordance with license requirements
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GAZ AZPROM OM INVES VESTOR OR DAY 2016
EXPLORATION AND PRODUCTION
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GAZ AZPROM OM INVES VESTOR OR DAY 2016 59.7 .7 62.3 .3 66.3 .3 79.7 .7 100.0 0.0 20 40 60 80 100 2012 2013 2014 2015E 2025 Gazprom Neft Joint operations* JVs**
MAJOR PROJECTS AND ACQUISITIONS ARE DRIVING HYDROCARBON PRODUCTION GROWTH
Hydrocarbon production, MMToe
*JOINT OPERATIONS: PROPORTIONALLY CONSOLIDATED COMPANIES (TOMSKNEFT, SPD) ** JOINT VENTURES: EQUITY ACCOUNTED ENTITIES (SLAVNEFT, SEVERENERGIA (ARCTICGAS), NORTHGAS)
____//_______
NOTE: E: DATA AS O OF 1 J JANUARY, , 2015
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GAZ AZPROM OM INVES VESTOR OR DAY 2016
CONTINUING VALUE CREATION FROM LEGACY FIELDS
2015 highlights Priorities for 2016
- Brought 22
22 MM MMTonnes
- nnes of har
ard-to to- reco cover reser serves es into production.
- Increased
creased production duction by 3% % at Vyngapurovskoye field
- Increased horizonta
izontal l drill lling ing by 12.5% 2.5% (+55 wells) and increased wells with mu mult lti-stage stage frac acs by 42% % (+70 wells)
- Ma
Mainta tain in cu current ent le level el of oil l produc duction tion at brownfields
- Increase
crease development elopment of har ard-to to- reco cover reser serves
- es. Increase
development of low-permeability resources using bilateral wells with multi-stage fracs in each wellbore
- Significantly reduce
duce produce duced d wat ater r an and unproduc
- ductiv
tive wat ater injection ection
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GAZ AZPROM OM INVES VESTOR OR DAY 2016
KEY STEP TOWARDS YEAR-ROUND OIL SHIPMENTS FROM NOVOPORT
Arctic terminal Completed assembly of Artic terminal in the Gulf of Ob with full oil shipment infrastructure including a 10.5km pipeline with underwater section Total hei eigh ght over er 80 80 met etre res Maximum capacity
- ver
er 8.5 5 Mm Mm tonnes es pe per yea ear
CRUDE OIL ACCEPTANCE AND DELIVERY POINT SUPPLY VESSEL UNDERWATER PIPELINE ARCTIC TERMINAL TANKER
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GAZ AZPROM OM INVES VESTOR OR DAY 2016
DEVELOPING NEW PRODUCTION CLUSTER IN YAMAL-NENETS REGION
Jan an 15 15 Feb eb 15 15 Mar ar 15 15 Apr pr 15 May 15 Jun un 15 Jul ul 15 Aug ug 15 Sep ep 15 15 Oct t 15 Nov 15 Dec ec 15
Obtained beneficial
- wnership in Northg
thgas from Gazprom, GPN achieved equal share in management
Launched Yaro-Yakhinskoye
gas processing facility, capacity 20 MMm3/d (Arcti ticg cgas)
Arcticga
ticgas obtained non-recourse Rub 181 bln loan facility agreement with PJSC “Sberbank” and JSC “Gazprombank” to refinance existing project debt at longer maturity and lower interest rate
Reached target production volumes
- f approximately 7.7 bcm of gas and
1.3 MMTonnes of de-ethanized gas condensate per year at Yaro- Yakhinskoye field (Arcticga icgas)
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GAZ AZPROM OM INVES VESTOR OR DAY 2016
PROGRESSING NEW FIELD DEVELOPMENTS
Prirazlomnoye Messoyakha Badra Kurdistan (Iraq)
Completed construction of three wells
- production (starting production rate
1,800 tpd) , water injection and cuttings injection
Produced the millionth tonne of oil in
November
Commissioned first stage of base
camp
Completed 2015 infrastructure
construction program: site and right-
- f-way preparation for construction of
60 km high pressure oil pipeline and gas-turbine electric power plant system has been completed
Completed exploration program
(seismic exploration, drilling and testing of two wells)
Drilled and completed three wells
with average initial production 11,000 bbl/day
Shipped three loads of cost recovery
- il
Completed construction of
CPF 2nd train
Engaged additional drilling rig,
bringing current total to four active rigs
Produced millionth barrel of oil at
Sarkala field in early October
Confirmed availability of
hydrocarbons at Shakal block
Completed seismic interpretation of
2-D survey at Halabja block and 3-D survey at Shakal block
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GAZ AZPROM OM INVES VESTOR OR DAY 2016
DOWNSTREAM
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GAZ AZPROM OM INVES VESTOR OR DAY 2016 19.9 20.9 20.2 21.3 20.9 10.8 10.7 11.1 10.8 11.0 7.4 9.6 8.6 8.8 8.2 2.4 2.1 2.7 2.6 2.9 40.5 .5 43.3 .3 42.6 .6 43.5 .5 43.0 .0 5 10 15 20 25 30 35 40 45 2011 2012 2013 2014 2015E Omsk Moscow Slavneft NIS
MAINTAIN REFINERY EFFICIENCY
Refining throughput, MMTonnes
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GAZ AZPROM OM INVES VESTOR OR DAY 2016
REFINERY RECONSTRUCTION PROGRAM ON SCHEDULE
Om Omsk sk
Complet mpleted: ed:
- Omsk
sk: reconstruction of pr prim imary y di distil illati tion
- n unit
unit
- Omsk
sk: reconstruction of cataly lyti tic c crackin cking g unit it In t the e pr proce cess ss
- Mosco
cow: Reconstruction of catalytic ytic crackin cking g unit it
- Mosco
cow: Proje ject ct “Biosphere” (treatment complex)
- Mosco
cow: FEED and construction of compl plex x oil il ref efin inin ing g unit unit
- Yaros
- sla
lavl: : Construction of Group
- up III base
e
- il
ils facil ilit ity
Status as of 2015:
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GAZ AZPROM OM INVES VESTOR OR DAY 2016 15.6 .6 17.7 .7 18 18.2 .2 18 18.5 .5 18 18.7 .7 4 8 12 16 20 2011 2012 2013 2014 2015E Retail Tank farms 2015E retail sales +2%
+2% in Russia and +7% 7% internationally vs. 2014
Average throughput at Russian stations 19.1 tpd Increased active network to 1,86
1,866 stations
CONTINUED RETAIL GROWTH DESPITE CHALLENGING MARKET
- Station
ion reb ebrandi ding
- Adv
dver erti tisin sing Status as of 2015: Sales of gasoline and diesel, MMTonnes
Driving sales growth through:
- Loyal
yalty ty pr progr gram am
- G-Driv
rive e pr prem emium ium bran and
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GAZ AZPROM OM INVES VESTOR OR DAY 2016 145 170 190 228 50 100 150 200 250 2012 2013 2014 2015E 2.6 3.2 4.2 3.9 1 2 3 4 5 2012 2013 2014 2015E 2.1 2.4 2.8 2.8 1 2 3 2012 2013 2014 2015E
RETAINED MARKET SHARE FOR ALL PREMIUM CHANNELS
Premium sales, MMTonnes Premium sales, mt Premium sales, MMTonnes
Aviation Bunkering Lubricants
- Presence in 208
208 airports
- Refueling complexes: 41
41
- Expanded global network to 160 airports
- Presence in 37
37 ports (34 in Russia and 3 abroad - Konstantsa, Tallinn, Riga)
- Company-owned fleet of 11 v
vessels sels
- Renewed annual contracts
racts with leading international shipping companies (CGM, Maersk, MSC, SCF, ZIM)
- Lubricants range increased by 85
85 new products (oils and greases)
- Opened 22
22 branded G-Energy Service stations
- Number of countries in which products are sold
has increased to 56
Market share in Russia
29.1%
Market share in Russia
20.6%
Market share in Russia
16.7%
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GAZ AZPROM OM INVES VESTOR OR DAY 2016
INVESTMENTS
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GAZ AZPROM OM INVES VESTOR OR DAY 2016
CAPITAL DISCIPLINE: INVESTING SELECTIVELY FOR FUTURE SUCCESS
6.8 8.3 6.1 1 2 3 4 5 6 7 8 9 2013 2014 2015E
Investments outlook, US$ mln 2015 Investments breakdown, US$ mln
2.3 2.1 0.6 0.3 0.4 0.1 0.2 Brownfields Greenfields Refining Marketing and distribution Other New projects Other