The Board of Directors of Gazprom Neft (the ‘Company’) has reviewed the interim results of its 2021 budget and investment programme, and plans for 2022. The Company’s 2021 investment programme is expected to reach ₽499.4 billion in total.

The Company has delivered consistent growth across key financial indicators every quarter throughout 2021, with performance not only matching 2020 levels but also exceeding the pre-epidemic levels of 2019.

For the first time in the Company’s history hydrocarbon production is expected to exceed 100 million tonnes of oil equivalent (mtoe) by the end of 2021. Provisional estimates indicate that refining volumes will increase to 43.3 mtoe, with sales of premium petroleum products growing to 25.6 mtoe.

Higher production volumes in 2021 are supported by the commissioning of the Tazovskoye field, increased production at oil-rim deposits, and the commissioning of a new integrated gas treatment plant at the Vostochno-Messoyakhskoye field. The Company has acquired one exploration and production licence in the Orenburg Region, and two geological prospecting licences (for flank fields and underlying horizons) in the Khanty-Mansi and Yamalo-Nenets Autonomous Areas

Gazprom Neft has continued implementing its full-scale refinery development programme throughout 2021. The Company has completed the modernisation of the heavy-ends conversion unit at the Moscow Refinery, which helped increase annual diesel production. In 2020, Gazprom Neft also decommissioned five previous-generation facilities replaced them with a high-tech EURO+ complex i. Construction of the environmentally friendly “Biosphere” complex, which is expected to increase water-treatment efficiency to 100%, is currently underway at the Omsk Refinery.

The Company has continued expanding its operational and technological partnerships and signed a number of upstream joint-venture agreements, including one with LUKOIL, which is aimed at the development of a major oil and gas cluster in the Yamalo-Nenets Autonomous Area near the Tazovskoye field. Gazprom Neft has also signed an agreement with Novatek to develop the offshore Severo-Vrangelevsky licence block. The partnership with Tatneft was launched to collaborate on enhanced oil recovery (EOR) projects. Gazprom Neft has also launched a partnership with Shell to develop cooperation in production, technology and “green” energy.

Gazprom Neft has entered into agreements with Aeroflot and Sovcomflot to partner on the production of environmentally friendly fuels. Gazprom Neft also plans to collaborate with metals and mining companies to develop hydrogen technologies and carbon capture and storage (CCS) projects.

In 2021, Gazprom Neft has paid the final dividends for 2020 in the amount of ₽15 per ordinary share, with the Board of Directors recommending a record ₽40 dividend per ordinary share for 9M 2021. The total dividend distribution for 9M 2021 is expected to be ₽189.7 billion - more than 50% of the Company’s total net profit for that period.

In 2022, Gazprom Neft’s total investment is expected to increase by more than 10%, with funding for the investment programme expected to exceed ₽500 billion.

Alexei Miller Chairman of the Board of Directors, Gazprom Neft, commented:
“The economic recovery following a challenging 2020 has allowed Gazprom Neft to significantly improve all of its business indicators and exceed pre-pandemic levels. The Company has continued to implement its major projects while maintaining its focus on the sustainable development goals including more sustainable production and lower environmental impact. As at the end of 2021 Gazprom Neft remains an industry leader in terms of improvements in financial performance and return on capital invested, and continues to demonstrate comprehensive growth, while remaining committed to developing new business areas and technologies.”

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