Igor Sechin Reported to Dmitry Medvedev on the Results of the Company’s Activities in 2013

Photo/ Press Service of the Prime Minister of the Russian Federation

Today Igor Sechin, Rosneft President and Chairman of the Management Board reported to Dmitry Medvedev, Prime Minister of Russia on the Results of the Company’s Activities in 2013.

The head of Rosneft outlined that 2013 became a record year for the Company regarding its financial and operational performance. ‘We’ve extracted 240 million tons of oil equivalent,’ he said. According to him, total production growth amounted to 70%. ‘I believe it’s the best result among public companies worldwide. At that organic growth amounted to 9 million tons, which is 4%.’ ‘Production growth is possible not only from assets acquisition, but also thanks to operational efficiency,’ Sechin added.

‘Effective geological exploration gave the total of 250 million tons; there were discovered 6 new fields and 70 new deposits. There have also been carried out huge amount of works on the Russian shelf,’ Igor Sechin noted.

‘The Company transferred 2.72 trillion rubles to state budget in 2013 and forecasts that this year payoffs will exceed 3 trillion rubles,’ he added.

In his report Igor Sechin paid special attention to implementation of new technologies and meeting high environmental performance standards in upstream and downstream blocks. ‘Investments to innovations and R&D amounted to 86 billion rubles over the year,’ he said.

The head of Rosneft also reported on the progress of geological projects implementation on the shelf, and on implementation of the Far East projects of the Company, including construction of Eastern Petroleum Company, implementation of arrangements regarding creation of the Far East shipbuilding unit on the basis of “Zvezda” plant, and on construction of LNG plant on Sakhalin Island. There was also raised a question of long-term growth of the Company’s Ukrainian projects.

In response to a question of Dmitry Medvedev on the procedure to buy back minority shareholders’ shares of TNK-BP Igor Sechin reported that most shareholders agreed to ex gratia payments. ‘Your initiative, which we have implemented, was supported, and 98.23% of minority shareholders agreed to ex gratia payments,’ Sechin said. ‘This includes international funds. The purchase was performed at a market price providing for all calculations and it satisfied all the participants.’

‘As for industry veterans, they were offered to swap TNK-BP shares for Rosneft shares. A lot of shareholders, who took part in the initial privatization, are now Rosneft shareholders,’ Igor Sechin outlined.

Rosneft Information Division
Tel.: + 7 (499) 517-88-97
January 31, 2014