GAZPROM INVESTOR DAY GAZPROM NEFT

Transcription

1 GAZPROM NEFT

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

3 2015 GAZPROM NEFT RESULTS 3

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

5 2015 RESULTS: GROWTH IN ALL KEY PERFORMANCE INDICATORS Proved and probable reserves (PRMS) incl. JV, MMToe ~ 2,694 Y2014 2,555 2,291 2,128 1,923 Hydrocarbon production, MMToe Probable Proved E Refining throughput, MMTonnes E Premium sales, MMTonnes E E 5

6 OUTPERFORMING RUSSIAN AND INTERNATIONAL PEERS 25% Growth in hydrocarbon production (FY2015 vs. FY2014), % 20% 15% 10% 5% 0% -5% GPN Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 SOURCE: CDU TEK PEERS: ROSNEFT, LUKOIL, SURGUTNEFTEGAS, BASHNEFT, TATNEFT 6

7 DELIVERING PRODUCTION GROWTH AND AN INDUSTRY-LEADING REFINING ASSET BASE Key strategic indicators 2015E 2025 target Hydrocarbon production, MMtoe Refining throughput in Russia, MMTonnes Light products yield in Russia, % Conversion rate in Russia, %

8 RESPONDING TO CHANGED MARKET ENVIRONMENT Focusing on lower risk and lower cost resources Highgrading international project portfolio Adjusting refinery upgrade program Growing marketing and distribution profitably Controlling cost Optimizing upstream growth model Completion of large projects at advanced stage of development (Novoport, Messoyakha) Deferring decisions on high risk international projects whilst maintaining future optionality Aligning timing of upgrades with external context and capital allocation priorities Focusing on most profitable expansion opportunities Tighter control of operational and capital costs Prioritizing projects which will yield short-term production and cash flow increases and deliver short payback periods Continue exploration activities in accordance with license requirements 8

9 EXPLORATION AND PRODUCTION 9

10 MAJOR PROJECTS AND ACQUISITIONS ARE DRIVING HYDROCARBON PRODUCTION GROWTH Hydrocarbon production, MMToe // E 2025 Gazprom Neft Joint operations* JVs** NOTE: DATA AS OF 1 JANUARY, 2015 *JOINT OPERATIONS: PROPORTIONALLY CONSOLIDATED COMPANIES (TOMSKNEFT, SPD) ** JOINT VENTURES: EQUITY ACCOUNTED ENTITIES (SLAVNEFT, SEVERENERGIA (ARCTICGAS), NORTHGAS) 10

11 CONTINUING VALUE CREATION FROM LEGACY FIELDS 2015 highlights Priorities for Brought 22 MMTonnes of hard-torecover reserves into production. Increased production by 3% at Vyngapurovskoye field Increased horizontal drilling by 12.5% (+55 wells) and increased wells with multi-stage fracs by 42% (+70 wells) Maintain current level of oil production at brownfields Increase development of hard-torecover reserves. Increase development of low-permeability resources using bilateral wells with multi-stage fracs in each wellbore Significantly reduce produced water and unproductive water injection 11

12 Total height over 80 metres GAZPROM KEY STEP TOWARDS YEAR-ROUND OIL SHIPMENTS FROM NOVOPORT Arctic terminal Maximum capacity over 8.5 Mm tonnes per year CRUDE OIL ACCEPTANCE AND DELIVERY POINT SUPPLY VESSEL UNDERWATER PIPELINE TANKER 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

13 DEVELOPING NEW PRODUCTION CLUSTER IN YAMAL-NENETS REGION Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Obtained beneficial Launched Yaro-Yakhinskoye ownership in Northgas from gas processing facility, Gazprom, GPN achieved capacity 20 MMm3/d equal share in management (Arcticgas) Reached target production volumes of approximately 7.7 bcm of gas and 1.3 MMTonnes of de-ethanized gas condensate per year at Yaro- Yakhinskoye field (Arcticgas) Arcticgas obtained non-recourse Rub 181 bln loan facility agreement with PJSC Sberbank and JSC Gazprombank to refinance existing project debt at longer maturity and lower interest rate 13

14 PROGRESSING NEW FIELD DEVELOPMENTS Prirazlomnoye Messoyakha Badra Kurdistan (Iraq) Completed construction of three wells - production (starting production rate 1,800 tpd), water injection and cuttings injection Produced the millionth tonne of oil in November Commissioned first stage of base camp Completed 2015 infrastructure construction program: site and rightof-way preparation for construction of 60 km high pressure oil pipeline and gas-turbine electric power plant system has been completed Completed exploration program (seismic exploration, drilling and testing of two wells) Drilled and completed three wells with average initial production 11,000 bbl/day Shipped three loads of cost recovery oil Completed construction of CPF 2 nd train Engaged additional drilling rig, bringing current total to four active rigs Produced millionth barrel of oil at Sarkala field in early October Confirmed availability of hydrocarbons at Shakal block Completed seismic interpretation of 2-D survey at Halabja block and 3-D survey at Shakal block 14

15 DOWNSTREAM 15

16 MAINTAIN REFINERY EFFICIENCY Refining throughput, MMTonnes E Omsk Moscow Slavneft NIS 16

17 REFINERY RECONSTRUCTION PROGRAM ON SCHEDULE Omsk Status as of 2015: Completed: Omsk: reconstruction of primary distillation unit Omsk: reconstruction of catalytic cracking unit In the process Moscow: Reconstruction of catalytic cracking unit Moscow: Project Biosphere (treatment complex) Moscow: FEED and construction of complex oil refining unit Yaroslavl: Construction of Group III base oils facility 17

18 CONTINUED RETAIL GROWTH DESPITE CHALLENGING MARKET Status as of 2015: 2015E retail sales +2% in Russia and +7% internationally vs Average throughput at Russian stations 19.1 tpd Increased active network to 1,866 stations Driving sales growth through: Station rebranding Advertising Loyalty program G-Drive premium brand Sales of gasoline and diesel, MMTonnes E Retail Tank farms 18

19 RETAINED MARKET SHARE FOR ALL PREMIUM CHANNELS Aviation Bunkering Lubricants Presence in 208 airports Refueling complexes: 41 Expanded global network to 160 airports Premium sales, MMTonnes E Market share in Russia 29.1% Presence in 37 ports (34 in Russia and 3 abroad - Konstantsa, Tallinn, Riga) Company-owned fleet of 11 vessels Renewed annual contracts with leading international shipping companies (CGM, Maersk, MSC, SCF, ZIM) Premium sales, MMTonnes E Market share in Russia 20.6% Lubricants range increased by 85 new products (oils and greases) Opened 22 branded G-Energy Service stations Number of countries in which products are sold has increased to 56 Premium sales, mt E Market share in Russia 16.7% 19

20 INVESTMENTS 20

21 CAPITAL DISCIPLINE: INVESTING SELECTIVELY FOR FUTURE SUCCESS Investments outlook, US$ mln 2015 Investments breakdown, US$ mln Brownfields Greenfields Refining Marketing and distribution Other New projects 2 Other E 21