Business model

Gazprom Neft’s vertically integrated business model, which includes two enlarged segments – Upstream (Exploration and Production) and Downstream (Refining and Sales), is counter-cyclical: any changes in oil prices increase profitability in one segment or the other. By consistently developing advantages in each segment, Gazprom Neft achieves the best operating efficiency among Russian VIOCs. The Company’s sustainable position enables it to continue implementing and developing core projects, which in turn creates conditions for long-term growth and implementation of the Company's strategy.

Key success factors

  • Upstream

    • Production growth through the launch of three new ambitious projects
    • Maintaining production levels at mature fields by introducing technological solutions
    • Improving drilling efficiency through the use of new technologies
    • A portfolio of long-term projects to further increase production
  • Downstream

    • Among the best oil refining efficiency indicators in Russia
    • Favourable location of oil refineries ensuring the sale of petroleum products with reasonable logistics costs, including a significant share in production areas
    • Internal network of high-margin sales and product distribution