GAZPROM NEFT OR DAY 2016 GAZP ZPROM OM INVESTOR DISCLAIMER This - PowerPoint PPT Presentation

OR DAY 2016 GAZP ZPROM OM INVESTOR GAZPROM NEFT

OR DAY 2016 GAZP ZPROM OM INVESTOR DISCLAIMER This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Gazprom Neft and its consolidated subsidiaries All statements other than statements of historical fact There are a number of factors that could affect the (i) economic and financial market conditions are, or may be deemed to be, forward-looking future operations of Gazprom Neft and could cause in various countries and regions; statements. Forward-looking statements are statements those results to differ materially from those expressed (j) political risks, project delay or advancement, of future expectations that are based on management’s in the forward-looking statements included in this approvals and cost estimates; and current expectations and assumptions and involve presentation, inclusively (without limitation): known and unknown risks and uncertainties that could (k) changes in trading conditions. (a) price fluctuations in crude oil and oil products; cause actual results, performance or events to differ All forward-looking statements contained in this (b) changes in demand for the Company’s products; materially from those expressed or implied in these presentation are expressly qualified in their entirety by statements. (c) currency fluctuations; the cautionary statements contained or referred to in Forward-looking statements include, among other (d) drilling and production results; this section. Readers should not place undue reliance things, statements concerning the potential exposure of on these forward-looking statements. Each forward- (e) reserve estimates; Gazprom Neft to market risks and statements looking statement speaks only as of the date of this expressing management’s expectations, beliefs, (f) loss of market and industry competition; presentation. Neither Gazprom Neft nor any of its estimates, forecasts, projections and assumptions. subsidiaries undertake any obligation to publicly update (g) environmental and physical risks; These forward-looking statements are identified by their or revise any forward-looking statement as a result of (h) risks associated with the identification use of terms and phrases such as ‘‘anticipate’’, new information, future events or other information. ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, of suitable potential acquisition properties ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, and targets, and successful negotiation ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. and completion of such transactions;

OR DAY 2016 GAZ AZPROM OM INVES VESTOR 2015 GAZPROM NEFT RESULTS 3

OR DAY 2016 GAZ AZPROM OM INVES VESTOR 2015 KEY EVENTS Upstream Downstream  Completed installation of the crude-loading terminal in the Ob Sea, northern  Continued reconstruction and modernization of refineries and storage Yamal, allowing the year-round shipment of oil from Novoportovskoye oil field terminals  Commissioned Yuzhno-Priobsky gas processing plant in Khanty-Mansiysk  Increased number of active filling stations to 1,866 vs. 1,810 in 2014  Obtained management rights over controlling stake in Northgas  Average daily throughput per station for Russian network 19.1 tpd  Began production from Yaro-Yakhinskoye, the third Arcticgas oilfield in March and  Dynamics of gasoline and diesel sales outpaced Russian market reached target production in June  Retained market share for all premium channels  Received first three shipments of oil in compensation for expenses at Badra  Began commercial oil production at Garmian (Kurdistan) in February 4

OR DAY 2016 GAZ AZPROM OM INVES VESTOR 2015 RESULTS: GROWTH IN ALL KEY PERFORMANCE INDICATORS Hydrocarbon production, MMToe Proved and probable reserves (PRMS) incl. JV, MMToe ~ Y2014 2,69 694 2,555 555 2,29 291 2,128 128 1, 1,923 923 Probable 79.7 .7 66.3 .3 62.3 .3 59.7 .7 Proved 57.3 .3 2011 2012 2013 2014 2015E 2011 2012 2013 2014 2015E Refining throughput, MMTonnes Premium sales, MMTonnes 43.3 .3 43.5 .5 43.0 .0 42.6 .6 40.5 .5 25.7 .7 25.7 .7 24.0 .0 22.5 .5 19.5 .5 2011 2012 2013 2014 2015E 2011 2012 2013 2014 2015E 5

OR DAY 2016 GAZ AZPROM OM INVES VESTOR OUTPERFORMING RUSSIAN AND INTERNATIONAL PEERS Growth in hydrocarbon production (FY2015 vs. FY2014) , % 25% 20% 15% 10% 5% 0% -5% GPN Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 SOURCE: CE: CDU TEK PEERS: S: ROSNEFT EFT, , LUKOIL, , SURGUT UTNEFT EFTEG EGAS, , BASHN HNEFT EFT, , TATNEFT EFT 6

OR DAY 2016 GAZ AZPROM OM INVES VESTOR DELIVERING PRODUCTION GROWTH AND AN INDUSTRY-LEADING REFINING ASSET BASE Key strategic indicators 2015E 2025 target 79.7 .7 100 00.0 .0  Hydrocarbon production, MMtoe  Refining throughput in Russia, MMTonnes 39.5 .5 40.0 .0 80 80 62 62  Light products yield in Russia, % 81 81 95 95  Conversion rate in Russia, % 7

OR DAY 2016 GAZ AZPROM OM INVES VESTOR RESPONDING TO CHANGED MARKET ENVIRONMENT Focusin using g on lower er risk sk and nd Completion of large projects at advanced stage of development (Novoport, lower er cost st res esour urces ces Messoyakha) High ghgrading grading intern ernational ational Deferring decisions on high risk international projects whilst maintaining future optionality project pr ject po portf tfolio olio Adjusting justing ref efiner inery y up upgr grade ade Aligning timing of upgrades with external context and capital allocation priorities pr prog ogram ram Gr Growi wing ng ma marketing ting and d Focusing on most profitable expansion opportunities distrib stribution ution pr profitably itably Tighter control of operational and capital costs Contr trolling olling cost st Prioritizing projects which will yield short-term production and cash flow increases Opti Op timi mizing zing up upst stream eam gr growth wth and deliver short payback periods model mo el Continue exploration activities in accordance with license requirements 8

OR DAY 2016 GAZ AZPROM OM INVES VESTOR EXPLORATION AND PRODUCTION 9

OR DAY 2016 GAZ AZPROM OM INVES VESTOR MAJOR PROJECTS AND ACQUISITIONS ARE DRIVING HYDROCARBON PRODUCTION GROWTH Hydrocarbon production, MMToe 100.0 0.0 100 79.7 .7 80 66.3 .3 62.3 .3 59.7 .7 60 40 20 ____//_______ 0 2012 2013 2014 2015E 2025 Gazprom Neft Joint operations* JVs** *JOINT OPERATIONS: PROPORTIONALLY CONSOLIDATED COMPANIES (TOMSKNEFT, SPD) NOTE: E: DATA AS O OF 1 J JANUARY, , 2015 ** JOINT VENTURES: EQUITY ACCOUNTED ENTITIES (SLAVNEFT, SEVERENERGIA (ARCTICGAS), NORTHGAS) 10

OR DAY 2016 GAZ AZPROM OM INVES VESTOR CONTINUING VALUE CREATION FROM LEGACY FIELDS 2015 highlights Priorities for 2016  Brought 22 22 MM MMTonnes onnes of har ard-to to-  Ma Mainta tain in cu current ent le level el of oil l reco cover reser serves es into production. produc duction tion at brownfields  Increased creased production duction by 3% % at  Increase crease development elopment of har ard-to to- Vyngapurovskoye field reco cover reser serves es. Increase development of low-permeability  Increased horizonta izontal l drill lling ing by resources using bilateral wells with 12.5% 2.5% (+55 wells) and increased multi-stage fracs in each wellbore wells with mu mult lti-stage stage frac acs by 42% % (+70 wells)  Significantly reduce duce produce duced d wat ater r an and unproduc oductiv tive wat ater injection ection 11

OR DAY 2016 GAZ AZPROM OM INVES VESTOR KEY STEP TOWARDS YEAR-ROUND OIL SHIPMENTS FROM NOVOPORT Arctic terminal Maximum capacity over er 8.5 5 Mm Mm tonnes es pe per yea ear SUPPLY VESSEL CRUDE OIL ACCEPTANCE AND DELIVERY POINT res etre 80 met er 80 ght over UNDERWATER TANKER eigh PIPELINE Total hei ARCTIC TERMINAL Completed assembly of Artic terminal in the Gulf of Ob with full oil shipment infrastructure including a 10.5km pipeline with underwater section 12

OR DAY 2016 GAZ AZPROM OM INVES VESTOR DEVELOPING NEW PRODUCTION CLUSTER IN YAMAL-NENETS REGION Jan an 15 15 Feb eb 15 15 Mar ar 15 15 Apr pr 15 May 15 Jun un 15 Jul ul 15 Aug ug 15 Sep ep 15 15 Oct t 15 Nov 15 Dec ec 15  Launched Yaro-Yakhinskoye  Obtained beneficial  Reached target production volumes  Arcticga ticgas obtained non-recourse Rub 181 ownership in Northg thgas from gas processing facility, of approximately 7.7 bcm of gas and bln loan facility agreement with PJSC Gazprom, GPN achieved capacity 20 MMm3/d 1.3 MMTonnes of de-ethanized gas “ Sberbank ” and JSC “ Gazprombank ” to equal share in management (Arcti ticg cgas) condensate per year at Yaro- refinance existing project debt at longer Yakhinskoye field (Arcticga icgas) maturity and lower interest rate 13