In the early 90s, Russia was a scene of fundamental economic transformations. It was in that period that the country’s fuel and energy complex underwent fundamental changes and rapid development of the oil and gas industry began.
JSC Gazprom Neft’ (formerly Sibneft) was founded in 1995 under the President Boris Yeltsin’s Decree No. 872 dated 24th August. The state-owned stakes in the country’s major oil enterprises such as JSC NoyabrskNeft’egaz, Omsk Oil Refinery and JSC NoyabrskNeft’eGasGeophysica, and in a distributing company of JSC OmskNeft’eproduct, were transferred to the newly formed holding company.
Subsequently, as the market economy developed further, the Russian Government formulated a plan for the privatisation of SibNeft’ whereby a 49 percent interest in the Company was put up for sale by auction to outside investors and the remaining 51 percent stake retained by the federal government until September 1998. Starting from January 1996, private investors acquired 49 percent of the SibNeft’ equity.
On May 12 1997, the auction for sale of the state-owned interest in SibNeft’, conducted under the Government-sponsored “Loan-for-Shares” program, was won by Petroleum Finance Company.
First and foremost, SibNeft’ ‘s management policy priority was to restructure the Company completely with the aim of ensuring successful operation under the newly emerging market conditions.
A great deal of work was done to upgrade production, introduce innovative technology and change business processes, leading to rapid improvements in the Company’s production and financial performance. Acquisition of a 50 percent interest in JSC SlavNeft’ was a milestone in the Company’s history. During subsequent years, oil production was greatly expanded in geographical terms, a large-scale modernisation of oil refining facilities was launched, and the distribution network was extended.
2005 proved to be the next key stage in SibNeft’’s development when Gazprom became its major shareholder. With the emergence of the new company name Gazprom Neft’, the company’s strategies and its goals have undergone great changes. The prospect of stable and sustained development in the framework of the largest energy holding in Russia, as well as matters of social responsibility, came to the forefront of its activity.
The Company’s plans include increasing annual oil production volume to 80 million tonnes by 2020. Along with this increase in oil production, Gazprom Neft’ intends to develop its oil refining capacities and distribution facilities further by streamlining its own network of retail fuel stations and expanding into new regions. Besides developing its own businesses, Gazprom Neft’ is actively involved in the implementation of many socially oriented projects and programs on federal, regional and international levels.
