Gazprom Neft (; formerly Sibneft, ) is the third largest
oil producer in
Russia
Russia, or the Russian Federation, is a country spanning Eastern Europe and North Asia. It is the list of countries and dependencies by area, largest country in the world, and extends across Time in Russia, eleven time zones, sharing Borders ...
and ranked third according to
refining
Refining is the process of purification of a (1) substance or a (2) form. The term is usually used of a natural resource that is almost in a usable form, but which is more useful in its pure form. For instance, most types of natural petroleum w ...
throughput. It is a subsidiary of
Gazprom
PJSC Gazprom ( rus, Газпром, , ɡɐsˈprom) is a Russian State-owned enterprise, majority state-owned multinational Energy industry, energy corporation headquartered in the Lakhta Center in Saint Petersburg. The Gazprom name is a contract ...
, which owns about 96% of its shares. The company is registered and headquartered in
St. Petersburg after central offices were relocated from
Moscow
Moscow is the Capital city, capital and List of cities and towns in Russia by population, largest city of Russia, standing on the Moskva (river), Moskva River in Central Russia. It has a population estimated at over 13 million residents with ...
in 2011.
By the end of 2012 Gazprom Neft accounted for 10% of oil and gas production and 14.6% of refining activities in Russia. Production volumes in 2012 increased by 4.3% in comparison with 2011, refining throughput grew by 7%, revenue was up 19.5% with EBITDA and net profit advancing by 7.7% and 9.9% accordingly.
History
Gazprom Neft was created under the name Sibneft () in 1995 by the transfer of state owned shares in Noyabrskneftegas (production unit), the
Omsk Refinery (Russia's largest oil refining complex), Noyabrskneftegasgeophysica (exploration) and Omsknefteprodukt (oil products distribution network) from
Rosneft
PJSC Rosneft Oil Company ( stylized as ROSNEFT) is a Russian integrated energy company headquartered in Moscow. Rosneft specializes in the exploration, extraction, production, refining, transport, and sale of petroleum, natural gas, and pet ...
.
In 1996 and 1997, Sibneft was privatised through a series of loans-for-shares auctions.
Roman Abramovich
Roman Arkadyevich Abramovich (born 24 October 1966) is a business oligarch and politician. He is the former owner of Chelsea F.C., Chelsea, a Premier League football club in London, England, and is the primary owner of the private investment com ...
and
Boris Berezovsky acquired the company for US$100 million, after bidding through several
front companies that had been set up for this specific purpose. Each partner paid US$100 million for half of the company, above the stake's stock market value of US$150 million at the time, and the company value rapidly increased to billions. The fast-rising value of the company led many observers, in hindsight, to suggest that the real cost of the company should have been in the billions of dollars (it was worth US$2.7 billion at that time).
Abramovich later admitted in court that he paid billions of dollars of bribes to government officials and gangsters to acquire and protect his assets.
Initially controlled by Berezovsky, Sibneft later came under the control of Abramovich.
Sibneft twice unsuccessfully attempted a merger with
Yukos
OJSC "Yukos Oil Company" (, ) was an oil and gas company based in Moscow, Russia. Yukos was acquired from the Russian government by Russian oligarch Mikhail Khodorkovsky's Bank Menatep during the controversial "loans for shares" auctions of ...
that would have created Russia's largest oil company, Yuksi or YukosSibneft. The first attempt in 1998 failed due to a management dispute and the impact of the
1998 Russian financial crisis
The Russian financial crisis (also called the ruble crisis or the Russian flu) began in Russia on 17 August 1998. It resulted in the Russian government and the Russian Central Bank devaluing the Russian rouble, ruble and sovereign default, defau ...
, while the second attempt ended when Sibneft's shareholders called off the deal in November 2003 after the federal government cracked down on Yukos despite the process already being well under way.
In September 2005, Gazprom bought 75.7% of Sibneft's shares from Millhouse Capital (Roman Abramovich's investment vehicle) for US$13.1 billion in Russia's largest corporate takeover. In May 2006, Sibneft was renamed Gazprom Neft.
In 2006, Alexander Dyukov was elected as CEO of the company, and in 2008, he was also appointed chairman of the management board. His contract was extended for a further five years in December 2011.
In 2011, Berezovsky brought a civil case against Abramovich in the
High Court of Justice
The High Court of Justice in London, known properly as His Majesty's High Court of Justice in England, together with the Court of Appeal (England and Wales), Court of Appeal and the Crown Court, are the Courts of England and Wales, Senior Cour ...
in London, accusing Abramovich of blackmail and breach of contract over the privatisation of Sibneft, claiming that he had been a co-owner of Sibneft and seeking over £3 billion in damages.
This became the largest civil court case in British legal history.
The court dismissed the lawsuit, concluding "that the sum of $1.3 billion paid by Mr. Abramovich to Mr. Berezovsky and Mr. Patarkatsishvili did not represent the sale price of Mr. Berezovsky’s and Mr. Patarkatsishvili’s alleged Sibneft interest, but rather was a final lump sum payment in order to discharge what Mr. Abramovich regarded as his ''
krysha'' obligations."
In 2017, Gazprom Neft became one of Russia's top three oil producers (62.3 million tonnes of oil).
Private army
In February 2023, Russian Prime Minister
Mikhail Mishustin
Mikhail Vladimirovich Mishustin (born 3 March 1966) is a Russian politician and economist serving as the current prime minister of Russia since 16 January 2020. He previously served as the director of the Federal Taxation Service from 2010 to ...
signed an order, giving Gazprom Neft the right to form its own private army.
Owners and management
The principal owner of Gazprom Neft is OAO Gazprom, which controls 95.68% of the company's shares, while the remaining 4.32% are publicly traded. 20% of Gazprom Neft's shares were originally owned by the Italian oil and gas company Eni before being purchased by Gazprom for $4.1 billion in April 2009.
Alexander Dyukov is CEO and chairman of the management board.
Alexey Miller is chairman of the board.
Operations
Reserves and production
As of 31 December 2012, Gazprom Neft and its subsidiaries hold the mineral rights to 74 license areas located in 11 regions of Russia. In
Serbia
, image_flag = Flag of Serbia.svg
, national_motto =
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, the Gazprom Neft's subsidiary
Naftna Industrija Srbije
Naftna Industrija Srbije ( sr-Cyrl, Нафтна Индустрија Србије, lit=Petroleum Industry of Serbia; abbr. NIS / НИС) is a Serbian multinational oil and gas company with headquarters in NIS building, Novi Sad, Serbia. NIS ...
, holds 69 licenses. Based on an audit of reserves conducted by
DeGolyer and MacNaughton
DeGolyer and MacNaughton is a petroleum consulting company based in Dallas, Texas, with offices in Houston, Buenos Aires, and Algiers.
DeGolyer and MacNaughton was founded in 1936 by Everette Lee DeGolyer and Lewis MacNaughton.
DeGolyer had f ...
and according to the Petroleum Resources Management System standards, the company's proven reserves at the end of 2012 totaled 1.2 billion
tonnes of oil equivalent, and its reserve replacement ratio was over 286%.
Most of the company's oil production operations in Russia are carried out by three subsidiaries: Gazpromneft-Noyabrskneftegaz, Gazpromneft-Khantos and Gazpromneft-Vostok. These companies are developing fields in the
Yamalo-Nenets and
Khanty-Mansi autonomous areas and the
Omsk
Omsk (; , ) is the administrative center and largest types of inhabited localities in Russia, city of Omsk Oblast, Russia. It is situated in southwestern Siberia and has a population of over one million. Omsk is the third List of cities and tow ...
,
Tomsk
Tomsk (, ) is a types of inhabited localities in Russia, city and the administrative center of Tomsk Oblast in Russia, on the Tom (river), Tom River. Population:
Founded in 1604, Tomsk is one of the oldest cities in Siberia. It has six univers ...
,
Tyumen
Tyumen ( ; rus, Тюмень, p=tʲʉˈmʲenʲ, a=Ru-Tyumen.ogg) is the administrative center and largest types of inhabited localities in Russia, city of Tyumen Oblast, Russia. It is situated just east of the Ural Mountains, along the Tura ( ...
and
Irkutsk
Irkutsk ( ; rus, Иркутск, p=ɪrˈkutsk; Buryat language, Buryat and , ''Erhüü'', ) is the largest city and administrative center of Irkutsk Oblast, Russia. With a population of 587,891 Irkutsk is the List of cities and towns in Russ ...
regions. Gazprom Neft also holds 50% stakes in three dependent companies:
Slavneft,
Tomskneft
JSC Tomskneft VNK — is a Russian petroleum, oil and natural gas, gas company, headquartered in Strezhevoy, Russia. Founded in 1966, Tomskneft is one of the largest companies of the Tomsk Oblast, Tomsk region and Siberia. As of 2022, the Indepe ...
and
Salym Petroleum Development. Together with
Novatek, it owns
Arktikgaz.
Refining
In 2012, Gazprom Neft refined 43.3 million tonnes of oil. The company wholly or partly owns 5 oil refineries (the
Omsk Refinery,
Moscow Refinery, and
Yaroslavl Refinery in Russia, along with two oil refineries in
Pančevo
Pančevo (Serbian Cyrillic: Панчево, ; ; ; ; ) is a list of cities in Serbia, city and the administrative center of the South Banat District in the autonomous province of Vojvodina, Serbia. It is located on the shores of rivers Timiș (ri ...
and
Novi Sad
Novi Sad ( sr-Cyrl, Нови Сад, ; #Name, see below for other names) is the List of cities in Serbia, second largest city in Serbia and the capital of the autonomous province of Vojvodina. It is located in the southern portion of the Pannoni ...
in
Serbia
, image_flag = Flag of Serbia.svg
, national_motto =
, image_coat = Coat of arms of Serbia.svg
, national_anthem = ()
, image_map =
, map_caption = Location of Serbia (gree ...
that belong to
Naftna Industrija Srbije
Naftna Industrija Srbije ( sr-Cyrl, Нафтна Индустрија Србије, lit=Petroleum Industry of Serbia; abbr. NIS / НИС) is a Serbian multinational oil and gas company with headquarters in NIS building, Novi Sad, Serbia. NIS ...
).
Sales
The company operates around 1,100
filling station
A filling station (also known as a gas station [] or petrol station []) is a facility that sells fuel and engine lubricants for motor vehicles. The most common fuels sold are gasoline (or petrol) and diesel fuel.
Fuel dispensers are used to ...
s in Russia under the 'Gazpromneft' trademark (unlike the name of the company, the filling station brand is written as one word). In total, the company's retail network consists of more than 1,600 filling stations, including in
Tajikistan
Tajikistan, officially the Republic of Tajikistan, is a landlocked country in Central Asia. Dushanbe is the capital city, capital and most populous city. Tajikistan borders Afghanistan to the Afghanistan–Tajikistan border, south, Uzbekistan to ...
,
Kazakhstan
Kazakhstan, officially the Republic of Kazakhstan, is a landlocked country primarily in Central Asia, with a European Kazakhstan, small portion in Eastern Europe. It borders Russia to the Kazakhstan–Russia border, north and west, China to th ...
,
Kyrgyzstan
Kyrgyzstan, officially the Kyrgyz Republic, is a landlocked country in Central Asia lying in the Tian Shan and Pamir Mountains, Pamir mountain ranges. Bishkek is the Capital city, capital and List of cities in Kyrgyzstan, largest city. Kyrgyz ...
,
Belarus
Belarus, officially the Republic of Belarus, is a landlocked country in Eastern Europe. It is bordered by Russia to the east and northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Belarus spans an a ...
,
Ukraine
Ukraine is a country in Eastern Europe. It is the List of European countries by area, second-largest country in Europe after Russia, which Russia–Ukraine border, borders it to the east and northeast. Ukraine also borders Belarus to the nor ...
and Serbia (mostly under the NIS brand). According to research by Romir Holding, the Gazpromneft brand is one of the top 3 filling station brands in Russia. In April 2011, it won the "Brand of the Year/Effie" award. In 2013 the company's own fuel brands, G-Drive and G-Energy, also received this award. Nielsen, a global information and measurement company, named both Gazpromneft and G-Drive among the top three most popular brands in their categories.
The company also owns a number of distribution companies in the bunkering (Gazpromneft Marine Bunker) and aviation fuel (Gazpromneft-Aero) businesses, as well as a fuel and lubricant production business (Gazpromneft-Lubricants). Production of motor oils under the G-Energy premium brand began in 2010. British actor
Jason Statham became the face of G-Energy's advertising campaign in 2011. In addition to G-Energy, the company's oils and lubricants are also sold under the Gazpromneft (industrial oils and lubricants), SibiMotor (light vehicles and commercial transport) and
Texaco
Texaco, Inc. ("The Texas Company") is an American Petroleum, oil brand owned and operated by Chevron Corporation. Its flagship product is its Gasoline, fuel "Texaco with Techron". It also owned the Havoline motor oil brand. Texaco was an Independ ...
(marine oils, produced under
Chevron's license) brands with over 300 trade names.
Performance indicators
The company's production volume in 2012 increased by 4.3% to 59.8 tonnes of oil equivalent.
In 2012, Gazprom Neft switched from US
GAAP
Gaap (also Tap, Coap, Taob or Goap) is a demon that is described in demonological grimoires such as ''the Lesser Key of Solomon'', Johann Weyer's ''Pseudomonarchia Daemonum'', and the Munich Manual of Demonic Magic, as well as Jacques Collin d ...
reporting in dollars to
International Financial Reporting Standards
International Financial Reporting Standards, commonly called IFRS, are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board (IASB). They constitute a standardised way of describing the company's fi ...
(IFRS) reporting in rubles.
Oil fields development
Novoportovskoye field
The recoverable C1+ C2 reserves of the
Novoportovskoye oil and gas condensate field total over 230 million tonnes of oil and over of gas. The field is located in the Yamal District of the Yamalo-Nenets Autonomous Area, 30 km from the
Gulf of Ob
The Gulf of Ob (), also known as the Bay of Ob (), is a bay of the Arctic Ocean, located in northern Russia at the mouth of the Ob River. It is the world's longest estuary.
Geography
The mouth of the Gulf of Ob is in the Kara Sea between the ...
. The license for the Novoportovskoye field belongs to Gazprom Neft Novy Port with Gazprom Neft as the operator of the project. In spring 2011, Gazprom Neft confirmed the viability of year-round supply from the field by sea.
The Novoportovskoye field will be developed in two phases, first focussing on the southern part of the field where peak production will reach 5 mln tonnes of oil per year. The second phase will look at the northern part of the field, where peak production is expected to reach 3 mln tonnes of oil per year.
Messoyakha fields
The Messoyakha Group of oil and gas fields consists of the West-Messoyakha and East-Messoyakha sites. Messoyakhaneftegas, an equally owned joint venture with
TNK-BP
TNK-BP (, ) was a major vertically integrated Russian oil company headquartered in Moscow. It was Russia's third-largest oil producer and among the ten largest private oil companies in the world. In 2013 it was acquired by Russian oil company R ...
, holds the licenses for both blocks with Gazprom Neft as operator. The recoverable C1+C2 reserves of both blocks total 620 million tonnes of primarily heavy oil.
The fields were discovered in the 1980s and are the most northern-located onshore Russian fields. The Messoyakha oil and gas fields are located on the
Gyda Peninsula in the Tazovsky District of the Yamalo-Nenets Autonomous Area - an Arctic climate zone with undeveloped infrastructure.
By 2020, the Messoyakha fields are expected to be producing eight million tonnes per year, with the first million produced by 2016.
International projects
*
Serbia
, image_flag = Flag of Serbia.svg
, national_motto =
, image_coat = Coat of arms of Serbia.svg
, national_anthem = ()
, image_map =
, map_caption = Location of Serbia (gree ...
.
Naftna Industrija Srbije
Naftna Industrija Srbije ( sr-Cyrl, Нафтна Индустрија Србије, lit=Petroleum Industry of Serbia; abbr. NIS / НИС) is a Serbian multinational oil and gas company with headquarters in NIS building, Novi Sad, Serbia. NIS ...
. NIS is the largest international asset of Gazprom Neft which owns 56.15% of share capital. NIS's main hydrocarbon production centres are located in Serbia, Angola, Bosnia and Herzegovina, Hungary and Romania with total volume of 1.233 mln tonnes of hydrocorbones produced in 2012. The company operates two refineries in the towns of Pancevo and Novi Sad with a total refining capacity of 7.3 mln tonnes per year and has a network of over 480 petrol stations and oil storage facilities.
*
Angola
Angola, officially the Republic of Angola, is a country on the west-Central Africa, central coast of Southern Africa. It is the second-largest Portuguese-speaking world, Portuguese-speaking (Lusophone) country in both total area and List of c ...
. The company gained a presence in Angola in 2009 after acquiring NIS.
*
Venezuela
Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South America, consisting of a continental landmass and many Federal Dependencies of Venezuela, islands and islets in the Caribbean Sea. It com ...
. Development of the Junin-6 field together with PDVSA. Reserves: 10.96 billion barrels.
*
Iraq
Iraq, officially the Republic of Iraq, is a country in West Asia. It is bordered by Saudi Arabia to Iraq–Saudi Arabia border, the south, Turkey to Iraq–Turkey border, the north, Iran to Iran–Iraq border, the east, the Persian Gulf and ...
. Development of the Badra field. The Badra oil field is situated in Wasit Province in Eastern Iraq. The geologic reserves at Badra field have been determined to amount to 3 billion barrels of oil.
The service contract for development of the oil field was signed in the beginning of 2010. The winning bid was submitted by a consortium of companies consisting of:
* Gazprom Neft (Russian Federation, the Project operator);
* KOGAS (Korea);
* PETRONAS (Malaysia);
* TPAO (Turkey);
* The Iraqi Government, represented by the Iraqi Oil Exploration Company (OEC).
The Badra oil field development project is scheduled to last 20 years with a possible five-year extension. Production is expected to reach 170,000 barrels of oil per day, which is around 8.5 million tons a year by 2017, and it will remain at this level for seven years.
Over a short period, new infrastructure for the field's commercial development has been installed at the oil field. It allowed for the commercial production of oil to begin in May 2014.
The first line of the central processing facility (CPF) has already been put into operation with a capacity of 60 thousand barrels per day. Oil gathering and preparation are carried out at this industrial facility. The Badra field was connected to the main Iraqi oil pipeline system by a 165-kilometer-long pipeline.
In the Iraqi's point of view, the Badra oil field in one of the most difficult in the region, primarily due to geological circumstances. The geological structure of the deposit can be compared with a "layer cake": argillaceous deposits are interleaved by limestone, which makes drilling difficult. Therefore, specialists are facing a more labor-intensive task. At the moment all these difficulties have been successfully overcome. Three development wells have now been constructed, successfully tested and their outputs have exceeded planned expectations.
New innovative technologies are applied at Badra. Among them are:
* smart wells system (smart completion), which allows controlling of each individual layer of the drilling well, and adjusting the equipment remotely;
* CPF SCADA system (central processing facility supervisory control and data acquisition);
* PLDS (pipe leak detection system);
Solar panels can be another example of the usage of modern technologies. They allow the block valve station to work independently from electricity.
The Badra oil field development consortium annually invests in education, medicine and other social projects in Iraq. In 2013 Gazprom Neft donated some buses to the University in Kut, allowing students from the surrounding villages to regularly attend classes. In Badra City additional buildings for three secondary schools have been built in 2014. Moreover, Gazprom Neft provided modern computer equipment to the schools of the city. Gazprom Neft financed the renovation of the town medical clinic in Badra and supplied an emergency medical care unit with modern medical equipment. Also, the renovation and construction of power grids in Badra was financed in 2013.
For the town of Badra the oil field is, in fact, a local economic mainstay, as almost 30% of its residents work at the production field. The company is conducting a program of the retraining of Iraqi professionals to work in the field. Selection is made on a competitive basis. Prospective employees undergo a special 2-year profession and language training program. Today, more than 90 Iraqis have already been employed at the field.
Gazprom Neft launched the project from the initial stage and in a short period of time was able to complete work necessary for the commencement of commercial production at one of the most challenging fields in Iraq. International experience gained in Badra will be extremely useful for future international projects of Gazprom Neft.
Acquisition of interest in the Garmian (40%) and Shakal (80%) projects in Kurdistan region in 2012. In 2013, the company entered the Halabja project (80% share) with reserves of 90 million tonnes of oil.
*
Italy
Italy, officially the Italian Republic, is a country in Southern Europe, Southern and Western Europe, Western Europe. It consists of Italian Peninsula, a peninsula that extends into the Mediterranean Sea, with the Alps on its northern land b ...
. Gazprom Neft acquired an oil and lubricant plant in the city of Bari in 2009.
*
Cuba
Cuba, officially the Republic of Cuba, is an island country, comprising the island of Cuba (largest island), Isla de la Juventud, and List of islands of Cuba, 4,195 islands, islets and cays surrounding the main island. It is located where the ...
. A 30% stake in a project for the development of four shelf blocks with reserves of 450 million tonnes. First appraisal well was drilled in 2011.
Sponsorship
Sibneft was the official sponsor of the
CSKA Moscow
CSKA Moscow () is a Russian sports club based in Moscow. It was created in 1911 in the Russian Empire on base of OLLS (Skiing Society, founded 1901). Later, during the Soviet Union, Soviet era, it was the central part of the Armed Forces (sports ...
football team. However, Gazprom Neft cancelled this deal in 2005 after Gazprom bought a majority stake in fellow Russian Premier Division football side,
Zenit Saint Petersburg.
Gazprom Neft also sponsors the
Avangard Omsk
Hockey Club Avangard (, Vanguard), also known as Avangard Omsk, is a professional ice hockey club based in Omsk, Russia. It is a member of the Chernyshev Division in the Kontinental Hockey League (KHL).
Franchise history
Early years of Omsk hock ...
and SKA ice hockey clubs, and a variety of running, five-a-side football, Nordic skiing and motocross events. In 2010, Gazprom Neft and
Gazprombank
Gazprombank (), or GPB (JSC), is a private-owned Russian bank, the third largest bank in the country by assets. Since November 2014, Nikolai Shamalov#Yuri Shamalov, Yuri Shamalov's Gazfond is its largest shareholder. Gazprombank is one of the m ...
sponsored Russian racing driver
Mikhail Aleshin during his championship-winning year.
Sanctions
In March 2022, as a result of the
2022 Russian invasion of Ukraine
On 24 February 2022, , starting the largest and deadliest war in Europe since World War II, in a major escalation of the Russo-Ukrainian War, conflict between the two countries which began in 2014. The fighting has caused hundreds of thou ...
, the
EU imposed sanctions on Gazprom Neft.
See also
*
Gazprom City
*
Lukoil
*
Lakhta Center
The Lakhta Centre () is an 87-story skyscraper built in the northwestern neighbourhood of Lakhta, Saint Petersburg, Lakhta in Saint Petersburg, Russia. Standing tall, it is the List of tallest buildings in Russia, tallest building in both Rus ...
*
Naftna Industrija Srbije
Naftna Industrija Srbije ( sr-Cyrl, Нафтна Индустрија Србије, lit=Petroleum Industry of Serbia; abbr. NIS / НИС) is a Serbian multinational oil and gas company with headquarters in NIS building, Novi Sad, Serbia. NIS ...
*
Rosneft
PJSC Rosneft Oil Company ( stylized as ROSNEFT) is a Russian integrated energy company headquartered in Moscow. Rosneft specializes in the exploration, extraction, production, refining, transport, and sale of petroleum, natural gas, and pet ...
*
Transneft
Joint Stock Company Transneft () is a state-controlled pipeline transport company headquartered in Moscow, Russia. It is the largest oil pipeline company in the world. The company is operating over of trunk pipelines and transports about 80% ...
*
Yuganskneftegaz
*
List of oil exploration and production companies
The following is a list of notable companies in the petroleum industry that are engaged in petroleum exploration and production. The list is in alphabetical order by continent and then by country. This list does not include companies only involved ...
References
External links
*
*
Gazprom inks deal to buy Abramovich's Sibneft ''Forbes.com'', 28 September 2005
Forbes.com: Gazprom Neft analytics information
{{Authority control
Oil companies of Russia
Gazprom subsidiaries
Companies based in Saint Petersburg
Economy of Omsk
Energy companies established in 1995
Non-renewable resource companies established in 1995
1995 establishments in Russia
Companies listed on the Moscow Exchange
Russian entities subject to U.S. Department of the Treasury sanctions
Roman Abramovich
Boris Berezovsky (businessman)