Press release: Gazprom Neft, Mubadala Petroleum and the Russian Direct Investment Fund establish a joint venture for managing assets in Western Siberia

Gazprom Neft is a vertically integrated oil company, primarily involved in oil and gas exploration and production, refining, and the production and sale of oil products. The Gazprom Neft’s corporate structure comprises more than 70 production, refining and sales subsidiaries throughout Russia, the CIS, and abroad.

The company’s proved and probable reserves (SPE-PRMS) are estimated at 2.78 billion tonnes of oil equivalent (btoe), making Gazprom Neft one of the top-20 largest oil and gas companies in the world, and one of Russia’s top three largest companies in terms of production and refining volumes. Total production in 2017 reached 89.75 million tonnes of oil equivalent (mtoe), with refining volumes of 40.1 million tonnes.

Gazprom Neft products are exported to more than 50 countries worldwide, and sold throughout the Russian Federation and abroad. The company’s filling station network totals more than 1,850 outlets throughout Russia, the CIS and Europe.

Gazprom Neft’s net profit in 2017 was RUB253 billion — a 26.5-percent increase year-on-year. The company is an industry market leader in terms of both financial growth and various efficiency metrics, including its internal rate of return (IRR).

The company’s main shareholder is Gazprom PJSC, which has a 95.68-percent interest, with the remaining shares in free circulation.

Registered in the Russian Federation on 14 September, 2004, Gazpromneft-Vostok LLC has been active in hydrocarbon production in the Tomsk and Omsk Oblasts since 2005, as operator of a group of fields located in a region with relatively limited potential for development.

The company holds subsoil usage licenses to the Shinginsky, Zapadno-Luginetsky, Yuzhno-Pudinsky, Archinskiy, Urmansky, and Krapivinskoye licence blocks, and was awarded a further subsoil usage licence for geological prospecting at the Parabelsky block in 2017.

The Russian Direct Investment Fund (RDIF) is Russia’s sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. www.rdif.ru

Mubadala Petroleum is a subsidiary company of the Mubadala investment fund, specialising in investments in the oil and gas sector worldwide. Mubadala was established by the government of Abu Dhabi (United Arab Emirates (UAE)). The fund’s strategy is based on long-term partnerships and large-scale investments that deliver not only profit but also social benefits to the residents of the Emirate of Abu Dhabi, as well as contributing to the growth and diversification of the region’s economy. Mubadala is accumulating and managing a multibillion-dollar portfolio of regional and foreign investments, as well as cooperating with leading international organisations. The fund’s investments cover a wide range of industries, including aerospace, semiconductors, the mining and metallurgy and oil and gas industries, renewable energy, IT, healthcare, real estate and infrastructure, and services. The fund’s website can be found at www.mubadala.com.