Siberian Oil Company OJSC was established under a decree of the President of the Russian Federation. The Russian Government founded the Company by contributing its stakes in some of Russia’s largest oil industry enterprises to the holding’s charter capital: Noyabrskneftegaz OJSC, Noyabrskneftegazgeophysika OJSC, Omsk Refinery OJSC and Omsknefteprodukt OJSC.
The Russian Government privatised Sibneft as part efforts to develop a market economy. Private investors bought 49% of Sibneft stock at auctions in 1996. In 1997, Financial Petroleum Company won an auction to purchase the government’s stake in Sibneft as part of the Government’s ‘Shares for Loans’ programme.
A proactive acquisition policy rapidly expanded the Company’s production territory (in the Tomsk and Omsk Regions) and the Company’s sales network (Sverdlovsk, Tyumen and Krasnoyarsk Regions, 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 Slavneft Oil JSC and Gas Company, which produced oil and gas in Western Siberia and the Krasnoyarsk Region.
Good resource potential, efficient refining capacities and professional management ensured the rapid development of the Company. Sibneft management worked hard to modernise production, introduce the latest technologies and optimise business processes.
The Gazprom Group bought a controlling interest in Sibneft OJSC (75.68%) and the Company’s name was changed to Gazprom Neft JSC on 13 May 2006. 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 December 2007, to further expand its resource base, Gazprom Neft acquired a 50% stake in Tomskneft (VNK), a company producing oil and gas in the Tomsk Region and Khanty-Mansi Autonomous District.
Business units were set up within the Company to focus on activities in specific segments: Gazprom Neft Marine Bunker, Gazprom Neft-Lubricants and Gazprom Neft-Aero.
Gazprom Neft OJSC, Rosneft OJSC, Lukoil OJSC, TNK-BP and Surgutneftegas OJSC signed a Memorandum of Understanding on cooperation and joint participation in projects in Venezuela 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 milestone for the Company in 2009 was the launch of a large-scale rebranding programme for the Gazpromneft filling station chain.
Gazprom Neft actively expanded its presence in the global oil and gas market. The Company signed a contract to develop the Badra field in Iraq. In addition, Gazprom Neft was appointed the leading company in the Junin-6 project in Venezuela in 2010. The Company continued entering new fuel markets outside of Russia with the acquisition of a retail chain of filling stations and nine land plots in Kazakhstan. It also expanded its presence on the Russian market by taking part in a project to develop promising fields in the north of the Yamalo-Nenets Autonomous District for which SeverEnergia LLC holds the development licenses. In February, Gazprom Neft closed a deal to purchase STS Service, a production unit of Sweden’s Malka Oil, which operates at fields in the Tomsk Region.
Gazprom Neft substantially improved its operating performance by purchasing new assets and through the more efficient development of existing fields. The Company purchased a further 5.15% stake in Serbia’s NIS, thus raising its overall holding to 56.15%, became the sole shareholder in Sibir Energy and also acquired its first assets in the Orenburg Region – the Tsarichanskoye and Kapitonovskoye fields as well as the eastern part of the Orenburg field. Drilling began at the Badra field in Iraq.
The Company began manufacturing environmental grade 4 gasolines at its oil refineries and launched sales of a new G-Drive premium-class motor fuel at its Gazpromneft filling station network, which was further expanded when the Company entered the market of Russia’s Southern Federal District.
A project was implemented to prepare raw materials for bitumen production at the Omsk Oil Refinery, ensuring the stable quality of raw commodities for bitumen production and guaranteeing the quality of the finished products manufactured using the refinery processing unit. An industrial unit was launched in 2011 to produce polymerbitumen binders and bitumen emulsions from Italy’s MASSENZA.
Gazprom Neft holds the leading position in Russia in terms of hydrocarbon production and refining growth rates in addition to a number of efficiency metrics. The Company launched pilot oil production at two major new fields in the north of the Yamalo-Nenets Autonomous District: East Messoyakha and Novoportovskoye. The first stage of commercial production began at the Samburgskoye oil and gas condensate field, which belongs to the Russian-Italian company SeverEnergia, in which Gazprom Neft holds a 25% stake. The formation and development of a new production cluster continued in the Orenburg region. The Company entered into new projects for the exploration and development of hydrocarbon reserves in Iraq. The Moscow Oil Refinery switched to producing environmental grade 4 gasolines, while the Omsk Oil Refinery began producing Euro 4 and Euro 5 gasolines and Euro 5 diesel. Gazprom Neft started developing a retail network in Europe (Serbia and Romania) under the Gazprom brand.
To enhance the efficiency of building high-tech wells, Gazprom Neft created the GeoNavigator Drilling Control Centre (DCC). It operates based on geo-navigation technology, which consists of promptly obtaining information about the geological model of the field and adjusting the well trajectory in accordance with this model. The use of modern technologies makes it possible to immediately transfer data to the Centre while drilling. The latest information is displayed on the existing geological model of the field.
The Gazprom Neft Board of Directors approved the Company’s development strategy, which it has extended to 2025. This builds on the strategy to 2020, which aimed to achieve goals set for the main business segments – hydrocarbon production, refining and sales of petroleum products – taking into account changing conditions in the industry and the global economy. The Company aims to continue actively increasing shareholder value in the period until 2025. The development plans for the marine and aviation fuel business and lubricant production business were brought forward to 2025.
Gazprom Neft is the operator of the Prirazlomnoye field in the Pechora Sea, which produced the first oil from the Arctic shelf in December 2013.
A hydro-processing facility for catalytic gasoline and a light naphtha isomerisation unit was commissioned at Gazprom Neft’s Moscow refinery. This enabled the plant to switch entirely to producing Euro-5 grade gasolines. All of the Company’s refineries have thus completed the switch over to the Euro-5 standard well ahead of the deadline specified in Russian legislation.
The Company acquired assets in Ryazan and Kazakhstan to develop its bitumen business. In 2013, Gazprom Neft and France’s Total established a joint venture to produce and sell polymer-modified bitumen (PMB) under the G-Way Styrelf brand as well as bitumen emulsions at the Moscow Oil Refinery.
Gazprom Neft obtained the first oil at the Badra oil field in Iraq and began the commercial shipment of oil into the Iraqi pipeline system. The Company made the first summer shipment from the Novoportovskoye field, marking the first time that raw commodities were exported from the field by sea and sent to European consumers.
The one millionth barrel of the new ARCO (Arctic Oil) blend was produced at the Prirazlomnoye field. The drilling of a new exploration well began at the Dolginskoye oil field on the Pechora Sea shelf.
Gazprom Neft obtained access to the licenses for the Kuvaysky and Yagodny license areas in the Orenburg Region. The subsoil resources of the license areas are capable of maintaining and increasing the Company’s oil production level.
Gazprom Neft and SIBUR commissioned the South Priobsky Gas Processing Plant.
Gazprom Neft was declared Russia’s best employer (in the Russian Employers 2015 rating conducted by the Headhunter recruiting holding). The Company rose two positions compared with the 2014 results.
Gazprom Neft obtained a license to develop the West Yubileynoye field in the Yamalo-Nenets Autonomous District. The Company obtained new licenses in the Khanty-Mansi Autonomous District at the Yuilsky-3, Lyaminsky-6, North Ityakhsky-1, Maloyugansky and West Zimny sections.
The one millionth tonne of the ARCO oil blend was produced at the Prirazlomnoye field. The one millionth barrel of commercial oil was produced at the Sarqala field in Iraq’s Kurdish region. The one millionth tonne of oil was produced at the Badra field in Iraq.
Gazprom Neft completed the commissioning of all its Arctic assets – the Prirazlomnoye and Novoportovskoye fields as well as the fields of the Messoyakha group. The Gates of the Arctic sea oil loading terminal was put into operation in the offshore area of the Gulf of Ob.
Gazpromneft-Catalytic Systems LLC was established within the structure of the Gazprom Neft Group in order to implement a project to build catalytic cracking catalysts and hydroprocessing catalysts. This project was granted the status of a national project based on a decision by a working group of the Ministry of Energy of the Russian Federation.
In June 2016, Gazpromneft-Lubricants acquired a 100% stake in the Rospolychem Group of Companies, thus obtaining an asset with a full production cycle of esters.
Gazpromneft-Bitumen Materials LLC acquired a 75% stake in the charter capital of NOVA-Brit LLC, a company that specializes in the production of bitumen-containing sealing materials under the BRIT® brand for the construction, repair, and maintenance of highways, airfields, etc.
Gazpromneft-Sakhalin completed the drilling and testing of a prospecting and appraisal well at the Ayashsky license area in the offshore area of the Sea of Okhotsk. The prospecting well confirmed the oil-bearing capacity of the Ayashskaya structure, revealed commercial inflows, and provided conclusive evidence of the discovery of a new promising oil field in the Far East. The geological reserves of the field, which was given the name “Neptune”, are estimated at 255 million tonnes of oil equivalent.
In late 2017, a field was discovered in the prospective license area in the Kondinsky District of the Khanty-Mansi Autonomous District-Yugra and was named after Alexander Zhagrin, the former head of the Company’s production directorate. The new asset initially had estimated C1 + C2 recoverable oil reserves 25 million tonnes of oil equivalent, which were entered into the balance sheet of the State Commission for Mineral Reserves. Later the reserves were increased to 31 million tonnes of oil equivalent based on the results of a state expert examination.
Gazprom Neft-Noyabrskneftegaz completed the drilling and testing of the first production well at the West Chatylkinskoye deposit, which is part of a remote group of deposits in the southern Yamal-Nenets Autonomous District. The initial flow rate of the first production well at the West Chatylkinskoye deposit exceeded 500 tonnes per day.
The Ministry of Energy of the Russian Federation granted the status of a national project to the construction of a facility that will use domestic technologies and high-tech equipment to develop the Bazhenov formation. The main research work will be carried out until 2021. The Centre for the Development of Extraction Technologies for Hard-to-Recover Reserves, which Gazprom Neft is building in the Khanty-Mansi Autonomous District-Yugra jointly with the district administration, will systematically process and test the new domestic technologies.
Gazpromneft-Khantos opened the Upstream Control Centre (UCC), which was established as part of the Digital Deposit programme. The UCC consolidated solutions that the company had previously developed to increase the efficiency of individual production-related extraction processes into a single integrated environment.
Gazprom Neft Badra launched the commercial operation of a gas treatment unit (GTU) with capacity of 1.6 billion cubic metres per year at the Badra deposit in Iraq. The dry commercial gas prepared at the field is transported along a 100-kilometre pipeline to the Az-Zubaidiyah power plant, which supplies electricity to several provinces of Iraq, including the capital of Baghdad.
NIS (Naftna Industrija Srbije А.D. Novi Sad in which Gazprom Neft owns a 56.15% stake) launched construction on a new advanced refining complex with delayed coking technology at the Pancevo Oil Refinery. The complex is the key project of the second stage of a large-scale programme for the modernization of NIS refining facilities. Total investment in the new project will exceed EUR 300 million.
Gazprom Neft established the Downstream Efficiency Control Centre (ECC) in St. Petersburg. The strategic goal of the project is to build a unified digital platform to manage the efficiency of the value chain from receiving oil supplies at refineries to the sale of petroleum products to the end user.
Gazpromneft-Lubricants, the operator of Gazprom Neft’s oils business, was the first Russian company to start manufacturing base oils with low viscosity for the production of drilling fluids using its own technology. The range includes four import-substituting products under the brand name Gazpromneft Drilline with total production volume of up to 5,000 tonnes per year.
Gazprom Neft completed construction on the Biosphera innovative complex of biological treatment plants at the Moscow Oil Refinery. Biosphera is a project that is part an integrated programme for the modernization of Gazprom Neft's oil refining assets in which one of the priorities is to reduce the environmental impact. Gazprom Neft invested RUB 9 billion in the project.
Gazprom Neft came in first in the rating of the most attractive employers of Russia in 2017 according to the international Randstad Award. Studies conducted as part of the Randstad Award indicate that it is important for job seekers and current employees to have the opportunity to develop and solve interesting problems in addition to financial stability and a guarantee of long-term employment.