Appendix 3. Key Terms & Acronyms

Additives

Substances added in small quantities to fuels and technical oils to improve their performance.

APG, or Associated Petroleum Gas

The mixture of various gaseous hydrocarbons dissolved in crude oil and emitted during its production.

Assets and/or Enterprises

In the context of the Report, subsidiaries and affiliates of OJSC Gazprom Neft.

Charities

Voluntary activity for transfer of property (on a free basis or on preferential terms) to individuals or legal entities, including transfer of money funds, free works performance, provision of services, and provision of other support.

Cluster site

A limited territory of a field, on which a special area is prepared for a group of wells, oil and gas production equipment, service and amenities premises, etc.

Company

In this Report, OJSC Gazprom Neft and all of its subsidiaries and affiliates.

Corporate Communications

Interaction, including information exchange, between the Company and its stakeholders.

EBITDA

Net profit before interest, tax, depreciation and amortisation.

EMS

Energy management system.

EPS

Exploration and Production Section.

Grade

A group of positions of approximately the same value to the Company, i.e. close by the level of functionality, competence, experience, and responsibility requirements.

Grants competition of social initiatives

A tool to invest social funds based on competitive selection and funding of projects designed to address the key social challenges faced by local communities in the areas of the Company’s operation. The Company applies the tool as part of the “Home Towns” social investment programme.

GRI, or Global Reporting Initiative

An international organisation with the principal purpose of developing and implementing an authoritative and trusted sustainable development reporting system that may be used by organisations regardless of their size, activity and location.

GRI Guidelines

An internationally recognised methodology of preparing sustainable development reports developed by the Global Reporting Initiative (GRI).

GRI-G3.1

An updated third version of the internationally recognised methodology of preparing reports on sustainable development, developed by the Global Reporting Initiative (GRI).

GRI-G4

A new, fourth version of the internationally recognised methodology of preparing reports on sustainable development, developed by the Global Reporting Initiative (GRI).

GS

Geological survey.

Head Office/Headquarters/Corporate Centre

OJSC Gazprom Neft, the managing company.

“Home Towns”

Gazprom Neft’s social investment programme aimed at solving pressing social and economic development issues and challenges faced by the regions where the Company operates, including through the engagement of local communities in the implementation of the programme projects. The key parts of the “Home Town” programme include: urban development (housing, urban land improvement); creating and developing infrastructure for children and grassroots sports, supporting sports institutions and holding sporting events; support and development of education; conservation and development of cultural potential of the local areas; cooperation with native minorities of northern Russia.

HSE

Health, Safety and Environment.

HSE and social protection

Health, Safety and Environment and Social Protection.

IR Global Rankings (IRGR)

A comprehensive international ranking system for IR-websites (corporate websites addressed to investors), online corporate annual reports, financial disclosure procedures, corporate governance practices, etc. The ranking system is based on the research of publicly traded companies using the methodology of MZ Consult, one of the leading consultants in investor relations.

IRMS

Integrated Risk Management System. Risk management is a continuous regulated process covering risk identification, assessment, monitoring and response at all levels within the Company.

ISO 14001

The International Standardisation Organisation’s standard ‘Environmental Management Systems. Requirements with Guidance for Use’, 2004, which is one of the most widely used environmental management standards.

ISO 26000

The international social responsibility standard for organizations of all sectors and types that was adopted in 2010. ISO 26000 is a guidance standard defining the general concepts and principles of the organization of activity.

KhMAD-Yugra

The Khanty-Mansiysk Autonomous District – Yugra.

LRSS

Logistics, Refinement and Sales Segment.

LTIFR

Lost Time Injury Frequency Ratio, an internationally recognised specific indicator used by all blue-chip companies in the world. It is calculated as the number of Lost Time Injuries multiplied by 1 million and divided by the number of man-hours worked in the reporting period.

Motor fuels class

An environmental standard established by the Russian technical regulation ‘On the Requirements to Motor and Aviation Gasoline, Diesel and Marine Fuel, Jet Fuel and Heating Oil’ and similar to the European standards. For example, class 5 of the Technical Regulations corresponds to the “Euro-5”.

Non-financial Reporting

For definition of Non-financial Reporting please refer to Sustainability Reporting.

NOX

Nitric oxides.

OE

Oil equivalent (a conventional fuel).

Oilfield service

Oil and gas field development service, including wells drilling, rigs assembly, well pads arrangement, repairs of wells, drilling equipment repairs, etc.

PPE

Personal protective equipment.

Refinery

An oil refinery.

Sludge pit

The place where drilling wastes are stored.

SO2

Sulphur oxide.

SPZ

A sanitary protection zone.

Subsidiaries

Subsidiaries of the Company.

Stakeholders

All individuals and legal entities interested in the Company’s activity and affecting, or affected by, the Company’s performance.

Sustainable Development

Development which meets the needs of the present without compromising the ability of future generations to meet their own needs (the definition by the UN International Commission for Environment and Development in the “Our Common Future” Report. Quoted from the Sustainability Reporting Guidelines, version 3.0. Translation from English, GRI, 2006.)

Sustainability Reporting (Non-financial Reporting)

The aggregate of systems and processes for collecting, consolidating, and delivering information reflecting the balance between financial, operational, social, and environmental aspects of the Company’s activity, principles and mechanisms for taking account of the interests of a wide range of stakeholders, managing the interaction with them in attaining goals important for the Company and the society.

Technical Regulations (in the Russian Federation)

A document (a regulatory legal act) establishing mandatory and binding requirements to items subject to technical regulation (products, including buildings, facilities, and structures, as well as production, operation, storage, transportation, sale, and disposal processes).

YaNAD

Yamal-Nenets Autonomous District.