Address by the Chairman of the Board of Directors

Алексей Миллер

Gazprom Neft is committed to sustainable development and corporate social responsibility. An important part of this is the Company’s policy of giving back to the communities in which it operates as a major taxpayer, employer, and partner for local and regional governments. Our contribution is more than just financial: we aim to improve quality of life and strengthen social infrastructure in the communities that Company employees and their families call home.

Gazprom Neft had a successful year in 2014. The Company continued to enjoy stable production growth, achieving a 6% improvement in extraction and a 2% increase in refining activity. Gazprom Neft remains the industry leader in average daily sales of petroleum products at filling stations. Highlights of the year include ship-to-shore delivery of the first oil from our offshore Arctic fields at Prirazlomnoye in the Pechora Sea and Novy Port in the northern Yamalo-Nenets Autonomous District; the use of new technologies in the Company’s traditional operating areas to boost output from existing fields, and the beginning of the latest stage in the upgrade of refining facilities to increase efficiency. Last year, Gazprom Neft became a leading supplier of modern bitumen materials.

Despite the economic headwinds, Gazprom Neft pushed forward with strategic plans to develop the Arctic shelf, enter new markets, work with hard-to-recover reserves, and conduct a study of the unconventional hydrocarbon reserves of the Bazhenov Formation. The Company believes that investing in technology and innovation is essential to maintaining a competitive advantage over other market players during the coming years. In developing and implementing our business strategy, we strive to achieve a careful balance of economic, environmental, and social interests.

Upstream production carries with it a great responsibility, which is why the company consistently acts as a steward of the environment and natural resources. One important project in this regard is our effort to utilize associated petroleum gas. Gazprom Neft continues to invest heavily in promoting efficient use of this former waste product. In 2014, this included construction of a new gas processing facility at the Yuzhno-Priobskaya compressor station and commissioning new compressor stations at the Yety-Purovskoye field and in Tomsk Region. Gazprom Neft continues to pay close attention to environmental and workplace safety at the Prirazlomnoye field. The Company implements industry best practices and leading technologies in order to preserve the unique Arctic environment, and is active in its work with business partners, public organizations, and experts to pioneer solutions in this area.

Staff development is another strategic priority. Our success as a company in the current economy is testament to the Gazprom Neft team and its professionalism and skill.

In 2015, there will be new challenges for the entire industry, and we are no exception. Nevertheless, with its committed workforce and strategic depth, Gazprom Neft continues to achieve its goals.

Алексей Миллер

Alexey Miller

Chairman of the Board of Directors of Gazprom Neft