Slavneft

OAO NGK Slavneft was incorporated in 1994. The Company was privatized in 2002 and its parity owners became TNK (later OAO TNK-BP) and Sibneft (later OAO Gazprom Neft). In 2004, Alfa, Access/Renova Consortium transferred about 50 percent of Slavneft's shares for establishment of TNK-BP jointly with BP. Strategic management of the Company is currently carried out by the Board of Directors where the partner are represented on a parity basis (five members are appointed by TNK-BP, and five – by Gazprom Neft).

According to the audit conducted by DeGolyer and MacNonghton, as of December 31, 2010, the Company's proved oil reserves under the SEC LOF criteria (excluding the licenses validity) amounted to 1,635.8 mln bbl, the cumulative gas reserves – 274.8 bln cft. As of December 31, 2010, the oil and gas reserves were estimated as 7,384.5 mln bbl and 640.4 bln cft respectively under the PRMS criteria.

OAO NGK Slavneft is one of the 10 Russian largest oil companies. In 2010, the Company produced 18.4 mln tons of oil and 851.9 mln m3 of gas. In fact, all hydrocarbons volume (above 99%) is produced at the fields of the Khanty-Mansi Autonomous Area (KhMAO).

OAO NGK Slavneft owns three oil refineries – Slavneft-Yaroslavnefteorgsyntez, Yaroslavl Mendeleev Refinery and Mozyr Refinery (Belarus). In 2010, the total volume of refined hydrocarbons amounted to 22.9 mln tons.

The Company's key mid-term objectives are to stabilize oil production volumes in KhMAO, construct new production centers in East Siberia, proceed with upgrading of refining capacities, decrease costs and enhance production efficiency.