“The achievement of Gazprom Neft’s strategic objectives is basedon thesystematicandbalancedmanagementof its business, social, and environmental activities. The Company aims to continuously improve its Health, Safety and Environment.HSE activities in accordance with global best practices and through its own, innovative developments. As a result of consistent focus on performance in this area, accident and injury rates decreased in 2013.”

In 2013, Gazprom Neft’s financial and operating achievements continued to demonstrate the Company’s leadership role and the success of its sustainable growth strategy.

Gazprom Neft’s production increased by 4.3% in 2013, to 62.26 mn TOE. The proven hydrocarbon reserves amounted to 1.3 bn TOE, an 11.9% year-on-year growth.

In the course of field development last year, Gazprom Neft implemented new and innovative process solutions. Its share of high-technology wells of the total volume of drilled wells has increased from 4% to 35% over the last two years, underlining the Company’s position as one of Russia’s oil and gas leaders.

In 2013, the Company completed a product quality programme at all its An oil refinery.refineries, with a switchover to production of Class 5 motor fuel considerably ahead of the deadline set by federal 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).Technical Regulations. In 2014, Gazprom Neft will focus on deeper refining projects in line with its Development Strategy. Following modernisation, our refining facilities will match the operating standards of the best refineries in the world.

The achievement of Gazprom Neft’s strategic objectives is based on the systematic and balanced management of its business, social, and environmental activities.

The Company aims to continuously improve its HSE activities in accordance with global best practices and through its own, innovative developments. As a result of consistent focus on performance in this area, accident and injury rates decreased in 2013.

The Company is successfully developing and implementing environmental programmes to minimise any technological and man-made impacts on the environment. Aggregate air emissions in 2013 decreased by 28% year-on-year.

Energy saving and efficiency is another key area of Gazprom Neft’s activities. By implementing energy conservation measures, the Company successfully saved over RUB 1.2bn in 2013.

We place great emphasis on HR management and employee development. There are training programmes in place at Gazprom Neft to ensure skill upgrading, development of strategically important professional and personal competencies, and creation of a candidate pool. In 2013, over 42,000 employees received such training. Training investment amounted to RUB 535 million. The Company is consistent in improving the efficiency of employee social support programmes and implementing best international practices. In 2014, a unified system of social benefits will be introduced for all Gazprom Neft In the context of the Report, subsidiaries and affiliates of OJSC Gazprom Neft.enterprises.

Gazprom strives to be a partner for local communities in their efforts to meet social and economic challenges, and encourages the active public and community engagement in the development of the regions. In 2013, as part of the 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.‘Home Towns’ social investment programme, the Company implemented some 350 projects, including those to improve the urban environment and create an infrastructure for children and grassroots sports, education and health initiatives, and programmes aimed at preserving the cultural legacy of the native minorities of the Northern Russia. Total costs associated with Company’s social and charity programmes were nearly RUB 4bn in 2013.

Gazprom Neft will continue to create conditions for achieving its ambitious strategic goals on the basis of the sustainable development and social responsibility principles as the key to the long-term competitiveness of the Company.

Alexander Dyukov
Chairman of the
Management Board

OJSC Gazprom Neft