Appendix 3. Definition of key terms and acronyms

APG, associated (petroleum) gas
A mixture of various gaseous hydrocarbons contained in oil and released during extraction.

Assets, enterprises
For the purpose of this Report, these are subsidiaries and companies controlled by Gazprom Neft.

CH
Corporate Headquarters.

Charity, philanthropy
Voluntary activities aimed at the altruistic transfer (free of charge or on preferential terms) of property, including monies, to individuals or legal entities, and altruistic work, provision of services, or other types of support.

COE
Crude oil equivalent, a unit of fuel measurement.

Corporate Communications
A form of interaction between the Company and its stakeholders, including the exchange of information.

CSR
Corporate Social Responsibility.

Downstream Division
Logistics, processing and sales division.

EBITDA
Earnings before interest, taxes, depreciation, and amortization.

EMS
Energy management system.

FES
Fuel and energy sector.

Gemba
Name of an approach that is typical of Japanese kaizen management practices, according to which it is necessary to go to the ‘gemba’ — the place where work is carried out — in order to understand a situation, gather facts, and take decisions on-site.

Grade
Group of positions that have approximately the same value to the Company. In other words, these positions are roughly equivalent in terms of their functionality, skills, experience and responsibility.

Grant competitions for social initiatives
A Company social investment tool used to select projects on a competitive basis and to award them funding. These projects are aimed at addressing the main social problems in the regions where the Company operates. It is part of the Home Towns social investment programme.

GRI
Global Reporting Initiative, an international organization whose main goal is to develop and implement an authoritative and credible reporting system in the area of sustainability, which can be used by organizations regardless of their size, type of activity, or location.

GRI Guidelines
Internationally recognized methods for sustainability reporting, developed by the Global Reporting Initiative (GRI).

GRI-G3.1
An updated third version of the internationally recognized methods for sustainability reporting, developed by the Global Reporting Initiative (GRI).

GRI-G4
A new, fourth version of the internationally recognized methods for sustainability reporting, developed by the Global Reporting Initiative (GRI).

Home Towns
A social investment programme managed by Gazprom Neft that is aimed at solving urgent socio-economic development issues in locations where the Company operates, including by implementing projects put forward by members of the local community. The main programme areas include: urban development (housing construction and landscaping urban areas), creating and developing infrastructure for children's and adults’ sports, supporting sporting organizations and holding sporting events, supporting and developing education, preserving and developing regional cultural potential, and working together with the indigenous peoples of northern Russia.

HSE, OS and CD
Health, Safety and the Environment, Occupational Safety and Civil Defence.

IPNR
Indigenous peoples of northern Russia.

ISO 26000
International social responsibility standard for all types of organizations in all sectors, adopted in 2010. ISO 26000 is a standard set of guidelines that defines common concepts and principles for company operations.

IR Global Rankings (IRGR)
Comprehensive international ranking system for assessing investor relations websites (corporate sites aimed at the investment community), online annual reports, financial information disclosure procedures, corporate governance practices, etc. The ranking system is based on a study of the activities of public companies using the methodology pioneered by MZ Consult, one of the leading consulting agencies in the field of investor relations.

IRMS
Integrated Risk Management System. Risk management is a continuous and orderly process that encompasses the identification, assessment and monitoring of risks, and responding to risks at all levels of the Company.

KMAA — Yugra
Khanty-Mansi Autonomous Area — Yugra.

LPG
Liquefied petroleum gas.

MBO
Management by objectives.

Motor fuel grade
Environmental standard established by the Technical Regulations of the Russian Federation ‘On the Requirements for Automobile and Aviation Fuel, Diesel and Marine Fuel, Jet Fuel and Heating Oil’. It is equivalent to European standards. For example, Grade 5 of the Technical Regulations complies with the Euro 5 standard.

NOX
Nitrogen oxides.

Non-financial reporting
See: sustainability reporting.

NPO
Non-profit organization.

Oilfield services
Oil and gas field services: well drilling, drilling rig installation, well pad infrastructure, well repairs, drilling equipment repairs, etc.

PMB
Polymer-modified bitumen.

PPE
Personal protection equipment.

R&D
Research, development and experimental design work.

Refinery
Oil refinery.

Sludge pit
Storage area for drilling waste.

SO2
Sulphur dioxide.

SPZ
Sanitary protection zone.

Stakeholders
All individuals and legal entities with an interest in the Company's operations, who have an influence on operational results or who are affected by the Company’s activities.

Sustainability
Considering economic, environmental, and social impacts that cross a threshold in affecting the ability to meet the needs of the present without compromising the needs of future generations (this definition is provided by the report Our Common Future, which was issued by the World Commission on Environment and Development at the United Nations. Quoted from: Sustainability Reporting Guidelines. Version 3.1. © 2000–2011 GRI

Sustainability reporting (non-financial reporting)
A set of systems and processes for collecting, consolidating, analysing, and reporting information that demonstrates a balance between the financial, operational, social and environmental aspects of the Company's operations. It also includes the principles and mechanisms for considering the interests of a wide range of stakeholders, and managing interactions with them in order to solve problems that are important to the Company and society.

Technical Regulations (in the Russian Federation)
Document (legal act) establishing mandatory requirements for production facilities that are governed by technical regulations (including buildings, structures, and facilities, and the production, operational, storage, transportation, sale, and disposal processes that occur inside them).

Upstream Division
Exploration and production division.

YNAA
Yamalo-Nenets Autonomous Area.