Key Terms, Definitions and Acronyms

Shortening

Definition

2D, 3D

Seismic exploration

AC

Authorised capital

ADR OF JSC GAZPROM NEFT

American depositary receipt issued on shares of JSC Gazprom Neft. 1 ADR equals five ordinary shares of JSC Gazprom Neft.

APG

Associated petroleum gas

APR

Asia-Pacific Region; includes countries in the continents of Asia and America, and the Pacific Ocean

ASSOCIATE COMPANY, ASSOCIATE

A company in which Gazprom Neft Group holds at least 20% of voting shares (for a joint-stock company) or 20% of registered capital (for a limited liability company)

BALTIC STATES

Estonia, Latvia and Lithuania

BOE

Barrels of oil equivalent

BRLH

Broad fraction of light hydrocarbons

CATALYTIC CRACKING

Thermal catalytic refining of petroleum fractions to produce high-octane gasoline

CENTRAL ASIA

Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan

CGTP

Central oil gathering and treatment plant

CIS

Commonwealth of Independent States: all former republics of the USSR, except Estonia, Latvia and Lithuania

COKING

Refining of liquid and solid fuels by heating them in the absence of air. As the fuel decomposes, it produces solid coke and volatile particles

CP

Civil Protection

CS

Compressor station

DNEPM

Differentially Normalised Electric Probing Method

DOLLARS

US dollars

EBITDA

Net profit before interest, tax, depreciation and amortisation

ЕU

European Union

FEC

Fuel and energy complex

FCF (FREE CASH FLOW)

Free cash flow

FFMS OF RUSSIA

Federal Service for Financial Markets

FFS

Fuel filling station

FTS OF RUSSIA

Federal Tariff Service

GAS PROCESSING PLANT

Gas and/or condensate refining plant

GAZPROM NEFT GROUP, THE GROUP, GAZPROM NEFT

All companies of the Group that comprise JSC Gazprom Neft (the parent company) and its subsidiaries

GCS

Gas-compressor station

GEO

Geological and engineering operations

GEOLOGICAL SURVEY

Geological surveying for exploration purposes

HSE

Health, safety, and the environment

HYDROCARBON RESERVES IN CATEGORIES A+B+C

Explored reserves according to the Russian classification. Represents the part of geological reserves that it would be economically efficient to extract at the date of the estimate, based on the market situation and rational use of modern equipment and technologies, and taking into account requirements for the protection of mineral deposits and the natural environment. Explored reserves of gas in categories А+В+С1 are viewed as fully recoverable. For reserves of oil and gas condensate, an extraction coefficient based on geological and technical factors is used

HYDROCARBON RESERVES IN CATEGORIES С1+С2

Category С1 represents reserves of oil and gas proven to exist in standalone wells, with favourable industrial and geological data for other wells. Category С2 represents reserves of oil and gas, the existence of which is suggested by geological and geophysical information within known gas-producing areas. Reserves of category С2 are preliminary estimates that are used to plan detailed survey work at specific fields

HYDROCRACKING

A cracking technique used in refining of crude oil fractions with a high boiling point, fuel oils or tar oil to make gasoline, diesel fuel and jet fuel, lubricant oils etc.

HYDROTREATMENT

Purification of petroleum products to remove organic sulphuric, nitric, and oxygen-based compounds using molecules of hydrogen. Hydrotreatment improves the quality of petroleum products

IRMS

Integrated risk management system

ISO 14001 STANDARD

International standard for environmental protection that sets requirements for environment management quality and is used to work out legally compliant environmental policies. The standard regulates environmental aspects of corporate activities that are controllable and require monitoring. This is a voluntary standard that does not supersede legislated requirements

JSC GAZPROM NEFT REPLACEMENT RATIO

Gross increment of proven reserves, divided by total production in the period

JV

Joint venture

KHMAO

Khanty-Mansiysk AD (KhMAD) Khanty-Mansi Autonomous District – Yugra

LA

License Area

LHG

Liquefied hydrocarbon gases

LNG

Liquefied natural gas

M3

Cubic metre of natural gas, measured at the pressure of one atmosphere and temperature of 20°С

MET

Mineral extraction tax

MFP

Maintenance of Formation Pressure

MICEX

Moscow Interbank Currency Exchange

MIP

Medium-term Investment Programme

MNPZ

Moscow refinery

NPZ

Refinery

NON-CIS COUNTRIES

Foreign countries with the exception of CIS and the Baltic states

OC

Oil company

OE

Oil equivalent

OGCF

Oil and gas condensate field

ONPZ

Omsk refinery

OPSC

Oil products supply companies

ORF

Oil recovery factor

OSH

Occupational safety and health

PBM

Polymer-bituminous binding materials

POE

Protection of environment

POL

Petroleum, oil and lubricants

POSSIBLE RESERVES

Unproven reserves, which are less likely to be extracted than probable reserves, based on the analysis of engineering and geological data. There must be at least 10% probability that actual production will be equal to or more than the estimate of proven, probable and potential reserves

PRIMARY REFINING

Crude oil distillation using atmospheric vacuum devices. Crude oil enters the distillation columns to undergo an atmospheric pressure distillation process, which splits it into a number of fractions: light and heavy gasoline fractions, kerosene fraction, diesel fraction, and fuel oil as a residue. The quality of the obtained fractions does not meet standards for marketable petroleum products, so the fractions must undergo further(secondary) refining

PRMS AND SEC INTERNATIONAL STANDARDS

International classification and estimate of hydrocarbon reserves by the standards of the Petroleum Resources Management System (PRMS) and US Securities and Exchange Committee (SEC). These standards include not only the estimate of hydrocarbon reserves, but also provide the estimate of the commercial practicability of extraction and the justifiability of its availability. The period of economically viable reserve development (period of validity of the development licence) is also taken into account

PROBABLE RESERVES

Unproven reserves, which are most likely to be extracted based on the analysis of engineering and geological data. There must be at least a 50% probability that actual production will be equal to or greater than the estimate of proven and probable reserves

PROSPECTING AND EXPLORATION DRILLING

All prospecting and exploration drilling carried out during the reporting period, including total distance drilled in wells, which have been fully drilled or are in the process of being drilled, but will be completed in the next reporting period

PROVEN RESERVES

Quantities of liquid, gaseous and solid hydrocarbons, which, according to engineering and geological information, are most likely to be produced by industrially available methods from known deposits starting from a specific date, under the existing economic conditions, with generally accepted operating techniques, and in compliance with applicable effective national regulations

PSA

Production sharing agreement

R&D

Research and development

REFINING DEPTH

A refining indicator defined as the percentage ratio of obtained petroleum products, not including bulk fuel oil, to the original quantity of crude oil. Measured in %

REFINING OUTPUT CAPACITY

Maximum possible output by a plant unit in a specific period

RF

Russian Federation

SAA

Surface-active agent

SC

Squeeze cementing

SILCO (SIBERIAN LIGHT)

Siberian light crude oil

SUBSIDIARY

Subsidiaries and affiliates

TCF T.

Tonne of conventional fuel (carbon equivalent), equals 877 m3 of natural gas

TP

Total proved

UGSF

Underground gas storage facilities

UPGRADER

Equipment for upgrading oil quality

VAT

Value added tax

VCS

Vacuum compressor station

VIOC

Vertically integrated oil company

WSLH

Wide spread of light hydrocarbons

YAMAL– NENETS AD (YANAD)

Yamal-Nenets Autonomous District

YANOS

Yaroslavl Refinary Slavneft-YANOS