gazprom neft
TRANSCRIPT
RUHULLA ABDUL
1ST YEAR IFF STUDENT
Financial University under the
Government of the Russian Federation
Moscow 2014
Content
• History
• Company profile
• International projects
• Board of directors
• Management board
• Shares
• Data
• SWOT-analysis
• Business project
Brief history
• Gazprom Neft was created under the name Sibneft in 1995 by the transfer of
state owned shares from Rosneft
• In 1996 and 1997, Sibneft was privatised through a series of loans-for-shares
auctions. Roman Abramovich and Boris Berezovsky acquired the company for
US$100 million. Initially controlled by Berezovsky, Sibneft later came under the
control of Abramovich
• Sibneft twice unsuccessfully attempted a merger with Yukos that would have
created Russia's largest oil company, YukosSibneft
• 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
Company profile
• OJSC Gazprom Neft (and its subsidiaries) is a vertically integrated oil company (VIOC)
• Main activities include the exploration, development, production and sale of crude oil and gas, as well as oil refining and the marketing of petroleum products
• Proven reserves of hydrocarbons amount to more than 1,343 billion TOE
• Gazprom Neft in the top 20 global producers of crude oil
• The third-largest oil company in Russia by refining volume and fourth largest in terms of production.
• Operates in Russia’s largest oil- and gas-producing regions: the Khanty-Mansiysk and Yamal-Nenets Autonomous Districts, and the Tomsk, Omsk and Orenburg Regions
• Main refining facilities are located in the Omsk, Moscow and Yaroslavl Regions, and also in Serbia
• Has production projects outside Russia, in Iraq, Venezuela and elsewhere.
• Consists of more than 70 production, refining and sales subsidiaries in Russia, neighbouringcountries and further afield
• exports to over 50 countries and distributes its products for sale through an extensive network of outlets both in Russia and abroad
• The Company currently has almost 1,750 filling stations in Russia, the CIS and Europe
• Gazprom Neft’s largest shareholder is Gazprom (95.68 %). The remaining shares are in free float
Gazprom Neft in Figures
COMPANY MISSION: To provide consumers
with high-quality energy resources, conduct
business honestly and responsibly, care for its
employees, and be a leader in efficiency,
ensuring long-term and balanced Company
growth
(as of 31 December, 2013)Source: Gazprom Neft
International projects
• Serbia. Naftna industrija Srbije. NIS is the largest international asset of Gazprom
Neft which owns 56.15% of share capital. Angola. The company gained a
presence in Angola in 2009 after acquiring NIS
• Venezuela. Development of the Junin-6 field together with PDVSA. Reserves:
10.96 billion barrels
• Iraq. Development of the Badra field with reserves of 3 billion barrels of oil.
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 mln tonnes of oil
• Italy. Gazprom Neft acquired an oil and lubricant plant in the city of Bari in 2009
• Cuba. 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
Production projects
Source: Gazprom Neft
Board of directors
Alexei Miller Vladimir Alisov Valery Golubev Nikolay Dubik Alexander Dyukov
Andrei Kruglov Elena Mikhailova Marat Garaev Kirill Seleznev Valery Serdukov
Mikhail Sereda Sergey Fursenko Vsevolod Cherepanov
Management board
Alexander Dyukov Vadim Yakovlev Anatoly Cherner Vitaliy Baranov Vladislav Baryshnikov
Alexander Dybal Elena A. Ilyukhina Kirill Kravchenko Alexei Yankevich Igor Antonov
First Deputy CEO with responsibility for exploration and production, strategic planning and M&A 0,001051526 %
Logistics, Processing and Sales
Chairman of the Management Board,Chief Executive Officer0.005357244%
Administration0,001621496 %
International Business Development
Corporate Communications
Legal and Corporate Affairs
Foreign Asset Management0,000068462 %
Economics and Finance
Security
Share in the authorized capital (as of 31.12.2013)
SHARESAccording to the OJSC Gazprom Neft Articles of
Incorporation, the Company’s authorized capital
consists of 4,741,299,639 common shares. As of the end
of 2013, OJSC Gazprom Neft has no preferred shares.
Market capitalization of
Gazprom Neft at the
end of 2013 was more
than $ 21.3 bln
Source: Gazprom Neft
SWOT-analysis
Strengths Weaknesses
1)Faithfulness of the Customer - by holding full competitive selections in 2009-2013
2) Provides the attractiveness of "Gazprom oil" as a customer
3) The cost of well constructions led to the market level
4) Competitive environment and monitoring of contractors' activities are performed, understanding of the possibilities provided by contractors.
5) A framework agreement has been developed and implemented, pricing model has been unified
6) Ratings of contractors have been implemented
7) Implementation of automated selection of contractors
1) Significant growth in the exploration drilling in all companies of the Russian Federation with the absence of new drilling contractors causes an increasing demand for drilling rigs and a significant increase in the cost of services
2) Delay of project documentation and approvals from the Customer
3) Inappropriateness of planned costs with a technical project in lots, underestimation of wells planned cost at a formation stage of the exploration program and business plan
4) Poor equipment and undermodernization of Contractors
5) Seasonal work performance
Opportunities Threats
1) Additional economic benefits due to the proper formation of lots. To get a discount at the auction by creating of lots, it is necessary to apply theapproach to the formation of lots on the basis: one lot – one well
2) Formation of a strategy of commercial negotiations.
3) Expanding the range of qualified contractors at the stage of training
4) Ability to attract extra contractors on a competitive selection
5) Ability to preserve (maintain, keep) pricing of existing contracts by some contractors (counteragents)
1) Unbalanced distribution of volumes and, as a consequence, the disruption of schedule
2) Price increase due to the tightening (toughening) of a standard contract –implementation of the unified scale of penalties and rating of the contractors
3) Changing the production program and the technical component
4) Effect of climate conditions
5) Logistic problems
Source: iopscience
Thank You!
References
http://www.gazprom-neft.ru/
http://www.gazprom-neft.ru/company/
http://ar2013.gazprom-neft.com/company-profile/operating-geography/#russia
http://ir.gazprom-neft.ru/gazprom-neft-at-a-glance/our-business/
http://www.oilru.com/news/259391/
http://www.forbes.ru/news/75841-glava-gazprom-nefti-dyukov-kupil-aktsii-kompanii-na-05-mln
http://www.gazpromneft-oil.ru/
http://www.uvao.ru/uvao/getimage/%D0%93%D0%90%D0%97%D0%9F%D0%A0%D0%9E%D0%9C%D0%9D%D0%95%D0%A4%D0%A2%D0%AC-%D0%9C%D0%9D%D0%9F%D0%97_%D0%A1%D0%B5%D0%B3%D0%BE%D0%B4%D0%BD%D1%8F%20%D0%B8%20%D0%BF%D0%BB%D0%B0%D0%BD%D1%8B%20%D1%80%D0%B0%D0%B7%D0%B2%D0%B8%D1%82%D0%B8%D1%8F.pdf?objectId=521362