The FINANCIAL — The Gazprom Board of Directors reviewed the efficiency of Gazprom's oil business and addressed the proposals on boosting oil production volumes.
The Board of Directors approved the work done within Gazprom's Oil Business Strategy, with Gazprom Neft being primarily responsible for this sector. It was highlighted that Gazprom was among the domestic oil industry leaders. Between 2006 and 2011 the annual oil production by Gazprom Group has increased by 18 per cent – from 45.6 to 53.9 million tons. Such growth in volumes has been achieved through development of the existing oil assets and acquisition of stakes in the new ones.As compared to 2010, in 2011 the refining volumes of Gazprom Neft increased by almost 7 per cent to 40.5 million tons and the sales via the premium segments increased by more than 37 per cent – to 19.55 million tons.
According to Gazprom, the Company's high performance in 2011 together with the managers' efforts aimed at maximizing the profit and reducing the costs allowed Gazprom Neft to reach a record EBITDA (earnings before interest, taxes, depreciation, and amortization) value – USD 10.16 billion – therefore being on top of other Russian oil companies in terms of EBITDA growth, which made up 40 per cent versus 2010.
Gazprom Group is planning to increase the annual oil production volumes to 80 million tons by 2020 that is 48.4 per cent higher as compared with 2011. The increase will be secured through development of the available reserves and implementation of new projects.