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Glossary

1P  — Proved reserves according to international standards SPE-PRMS

2D, 3D  — Seismic exploration

ADR OF Gazprom neft PJSC — American depositary receipts issued for shares of Gazprom neft PJSC. One ADR equals five ordinary shares of Gazprom neft PJSC

APG — Associated petroleum gas

ARCTIC OIL (ARCO) — Grade of Russian oil produced at Prirazlomnoye field

ASSOCIATE COMPANY — A company in which Gazprom neft PJSC holds at least 20% of voting shares (for a joint-stock company) or 20% of charter capital (for a limited liability company)

BALTIC STATES — Estonia, Latvia and Lithuania

BOE — Barrel of oil equivalent

BRENT — Benchmark crude produced in the North Sea

CATALYTIC CRACKING — Thermal catalytic refining of petroleum fractions to produce high-octane petrol

CENTRAL ASIA — Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan

CFO — Chief Financial Officer

CGTP — Complex gas treatment plant

CIS — Commonwealth of Independent States: all former Republics of the USSR, except Estonia, Georgia, 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

CNG — Compressed natural gas

CODU — Crude Oil Distillation Unit

COGTP — Central oil gathering and treatment plant

CP  — Civil protection

CS  — Compressor station

DF  — Diesel fuel

DOMESTIC MARKET — Russian market of goods, services, etc.

DOWNSTREAM — Processing and sales

EBIT — Earnings before interest and taxes

EBIT MARGIN — Operational return on sales

EBITDA — Earnings before interest, taxes, depreciation and amortisation

ECA — Emission Control Areas

EN CERTIFICATION — Certification according to European standards

EU  —European Union

EUR — Euros

EV/EBITDA — Ratio of the company’s value versus earnings before taxes. Used to assess investment appeal (length of the payback period for investments)

FCP RATE (FIRST COMMERCIAL PRODUCTION RATE) — Target volume (barrels per day) for oil production during the initial stage of a field’s commercial development

FEC — Fuel and energy complex

FS FILLING STATION

GAZPROM NEFT GROUP — All companies of the Group that comprise Gazprom neft PJSC (the parent company) and its subsidiaries

GCS — Gas compressor station

GE  — Geological exploration

GEARING — Ratio to indicate the proportion of borrowed funds

GEO — Geological and engineering operations

GPP — Gas and/or condensate processing plant

HF  — Hydraulic fracturing

HRR — Hard-to-recover reserves

HYDROCARBON RESERVES IN CATEGORIES A+B+C1 — 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 petrol, diesel fuel, jet fuel, lubricants, 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

IES — Industrial environmental safety

IFRS — International Financial Reporting Standards

INTEREST COVERAGE — Times interest earned commensurate to profit before the payment of loan interest and taxes with interest expenses

INTERNATIONAL MARKET — The market of goods, services, etc. outside of Russia

IR  — Investor relations

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

ISO 50001 STANDARD — International standard established by the International Organisation for Standardisation to manage power systems that specifies requirements for establishing, implementing, maintaining and improving an energy management system, whose purpose is to enable an organisation to follow a systematic approach in achieving continual improvement of energy performance, including energy efficiency, energy use and consumption

ISO 9001 STANDARD — International standard for quality management systems. It establishes the requirements for the quality management system that may be used internally by organisations for the purpose of certification or concluding contracts. The standard aims to make the quality management system effective while meeting customer demands

ISO/TS 16949 STANDARD — International industry standard as well as technical specifications established by the International Organisation for Standardisation. The standard defines the quality management system requirements for enterprises that design, develop, produce, install and service automotive-related products

JV  — Joint venture

KMAD-YUGRA — Khanty-Mansi Autonomous District — Yugra

LA  — License area

LNG — Liquefied natural gas

LPG — Liquefied petroleum gas

LTIF — Lost time injury frequency

MICEX — Moscow Interbank Currency Exchange

MET — Mineral extraction tax

MIDDLE EAST — Armenia, Bahrain, Cyprus, Egypt, Georgia, Iraq, Iran, Israel, Jordan, Lebanon, Oman, Palestine, Qatar, Saudi Arabia, Syria, Turkey, Yemen, Kuwait and UAE

MOR — Moscow Oil Refinery

MSHF — Multi-stage hydraulic fracturing

M3 — Cubic meter of natural gas, measured at the pressure of one atmosphere and temperature of 20°С

M&A — Mergers and acquisitions

NG — Natural gas

NIS — NIS a.d. Novi Sad

NON-CIS COUNTRIES — Foreign countries with the exception of CIS and the Baltic states

NOVY PORT — Grade of oil produced at the Novoportovskoye field

OC — Oil company

OE — Oil equivalent

OGCF — Oil and gas condensate field

OHSAS 18001 STANDARD — International industry for the development of Occupational Health and Safety Management ystems. This is an official document that confirms compliance with a special occupational health policy.

OOR — Omsk Oil Refinery

OR — Oil refinery

ORF — Oil recovery factor

ORFFS — Oil recovery factor feasibility study

OS — Occupational safety

P/E — The price/earnings ratio that is equal to the ratio of a company’s market capitalisation versus its annual earnings. One of the main indicators used for a comparative assessment of the investment appeal of joint-stock companies.

Gazprom neft PJSC — Gross increment of proven reserves, pided by total production in the period

REPLACEMENT RATIO

PMB — Polymer-modified bitumen

PMI — Purchasing managers index that reflects the condition of a certain industry or the economy or provides a competitive assessment

POSSIBLE RESERVES — Unproven reserves, which are less likely to be extracted than probable reserves, based on the nalysis 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

PPSE — Petroleum product supply enterprises

PREMIUM MARKET SEGMENTS — High-margin market segments: small wholesale, own chain of filling stations, sales of jet uel, bitumen, oils and lubricants, and bunkering

PRIMARY REFINING — Crude oil distillation using crude oil distillation units. Crude oil enters the distillation olumns to undergo theatmospheric pressure distillation process, which splits it into a number of fractions: light and heavy petrol 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

PRIRAZLOMNAYA OIFP — Prirazlomnaya offshore ice-resistant fixed platform

PRMS INTERNATIONAL STANDARDS — International classification and estimate of hydrocarbon reserves by the standards of the Petroleum Resources Management System (PRMS). 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 license) is taken into account as well

PROBABLE RESERVES — Unproven reserves, which are most likely to be extracted based on the analysis of engineering nd 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

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 — Product-sharing agreement

Q&A — Questions and answers

RAS — Russian Accounting Standards

RC — Refuelling complex

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

ROACE — Return on average capital employed

ROE — Return on equity

RPM — Reservoir pressure maintenance

RUB — Roubles

RUSSIAN FTS — Federal Tariffs Service

RUSSIAN FFMS — Federal Financial Markets Service

R&D — Research and development

SAA — Surface-active agents

SE — Seismic exploration

SGC — Stable gas condensate

SPD — Salym Petroleum Development N. V.

SS — Service station

SSP — Social services package

S&A — Subsidiaries and affiliates

TOTAL PROVED (TP) — Proven reserves

UPSTREAM — Exploration and production

URALS — A Russian brand of an exported oil blend. It is a mix of Urals and Volga heavy sour crude oil with the light western Siberian crude oil Siberian Light within the pipeline system of JSC Transneft.

US GAAP — Generally Accepted Accounting Principles

USD — U.S. dollars

VAT — Value-added tax

VCS — Vacuum compressor station

VIOC — Vertically integrated oil company

WESTERN EUROPE — Austria, Belgium, France, Germany, Ireland, Liechtenstein, Luxembourg, Monaco, the Netherlands, Switzerland and the UK

WTI — Grade of oil produced in Texas

YNAD — Yamalo-Nenets Autonomous District

YANOS — Yaroslavl Oil Refinery (Slavneft-YANOS)