Statement from the chairman of the management board

Alexander Dyukov

Dear friends!

Gazprom Neft recorded good financial and operational results in 2019 – increasing hydrocarbon production, and delivering a record net profit. It enabled us to meet a new challenge in 2020 – the COVID-19 pandemic and, with it, the sharp drop both in demand for oil, and in the oil price – in a stable and sustainable financial position. The company began implementing its “Antivirus” programme, protecting employees against the disease and ensuring the full continuity of all operational and production processes. In addition to which, the company has also been proactive in helping those locations in which we operate to combat the spread of coronavirus – for example, in donating 1.3 million pieces of personal protective equipment (PPE) to medics throughout eight of Russia’s regions: this being just one of a multitude of such supportive initiatives.

Thanks to our effective work and operational efficiency, the current situation has not impacted our long-term objectives – one of which is to become a global industry benchmark in terms of safety, technological advancement and efficiency, and all of which are fully consistent with the principles of sustainable development.

The key priority for Gazprom Neft is safety. A few years ago we had, already, set ourselves the task of achieving “Target Zero” – no harm to people, facilities or the environment in undertaking our operations. The company continues working towards that goal, not only in striving to protect our employees, but also in working proactively with contractors to take their attitudes to safety to a whole new level.

An important objective for Gazprom Neft is increasing efficiency in utilising associated petroleum gas (APG). We are committed to further increasing current utilisation levels, including at new assets. The modernisation of our Moscow and Omsk Refineries remains ongoing, as does modernisation of the NIS plant in Pančevo, Serbia. One of the key objectives in that modernisation is ensuring our refineries meet the highest environmental standards in the world. We have also begun operating the first solar-powered electricity plant at the Omsk Refinery – a major step forward in developing renewable-energy and energy-efficiency projects.

The company continues to implement its “Green Seismic” project, thanks to which more than three-and-a-half million trees have, already, been saved from felling. Our enterprises have released more than 71 million valuable commercial fish fry into various waters as part of our programme to support the reproduction of aquatic bioresources. 2019 saw us successfully complete our first expedition under the “Narwhal: Legend of the Arctic” project, to study that rare marine mammal. Research was also undertaken on the grey whale population offshore from Sakhalin Island.

Gazprom Neft is an investor, employer, and a major budget contributor (taxpayer) in those locations in which it operates, as well as a manufacturer and supplier of high-quality petroleum products, advanced technologies and import-substitution products, and the originator of a number of innovative projects. The company’s contribution to sustainable development is undertaken through various social and economic agreements, as well as its “Home Towns” corporate social responsibility (CSR) programme, the core objective of which is the consistent improvement of living standards in those regions in which it has a presence. The “Home Towns” programme supports educational, cultural and sports projects and, through a dedicated grant-awards system, promotes important initiatives put forward by local residents themselves in those areas in which the company operates. Total CSR investments in 2019 reached ₽7.5 billion – a 10% increase on 2018. The company’s proactive development of volunteer projects is also worth noting – more than 5,700 company employees having joined this movement in 2019, each of them making a personal contribution to helping implement useful community initiatives.

The Gazprom Neft team is made up of highly engaged professionals, each of whom shares the company’s values. We always make that point that, for us, talent has always been more important than capital. And we strive to create a corporate culture and environment – in every department, everywhere we work – in which every employee can reveal his or her individual potential by working towards common goals. The company supports employees’ efforts in working towards their own training and development. Representatives from Gazprom Neft take an active part in the nationwide “Leaders of Russia” management competition, every year: while our own “Company University” also offers various forms of training, running more than 156,000 courses for employees in 2019. It’s no accident that Gazprom Neft – for the third year in a row – led the Randstad employer rankings in 2019, winning first place in the oil and gas industry. And that spring 2020 saw our company rated Russia’s No. 1 employer by online recruitment platform

There have been significant changes in how business success is judged, recently. A modern company, today, cannot focus solely on operational and financial performance. And it is for precisely that reason that Gazprom Neft supports integrating the United Nations (UN) Sustainable Development Goals, designed to address global economic, social and environmental issues, into its day-to-day activities. “Developing, to develop the world. Creating, so that you can be proud of what you have created” – this, the Gazprom Neft Mission Statement – is a full and complete reflection of the company’s understanding of its responsibilities to the world around it. And we are grateful to all those who, together with us, are making a worthwhile contribution to building a sustainable future for society.

Alexander Dyukov CEO and Chairman of the Management Board, Gazprom Neft