GAZPROM NEFT OR DAY 2016 GAZP ZPROM OM INVESTOR DISCLAIMER This - - PowerPoint PPT Presentation

gazprom neft or day 2016
SMART_READER_LITE
LIVE PREVIEW

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


slide-1
SLIDE 1

GAZP ZPROM OM INVESTOR OR DAY 2016

GAZPROM NEFT

slide-2
SLIDE 2

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.

slide-3
SLIDE 3

3

GAZ AZPROM OM INVES VESTOR OR DAY 2016

2015 GAZPROM NEFT RESULTS

slide-4
SLIDE 4

4

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

slide-5
SLIDE 5

5

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

slide-6
SLIDE 6

6

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

slide-7
SLIDE 7

7

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

slide-8
SLIDE 8

8

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

slide-9
SLIDE 9

9

GAZ AZPROM OM INVES VESTOR OR DAY 2016

EXPLORATION AND PRODUCTION

slide-10
SLIDE 10

10

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

slide-11
SLIDE 11

11

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

slide-12
SLIDE 12

12

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

slide-13
SLIDE 13

13

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)

slide-14
SLIDE 14

14

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

slide-15
SLIDE 15

15

GAZ AZPROM OM INVES VESTOR OR DAY 2016

DOWNSTREAM

slide-16
SLIDE 16

16

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

slide-17
SLIDE 17

17

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:

slide-18
SLIDE 18

18

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

slide-19
SLIDE 19

19

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%

slide-20
SLIDE 20

20

GAZ AZPROM OM INVES VESTOR OR DAY 2016

INVESTMENTS

slide-21
SLIDE 21

21

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

6.1