Gazprom Neft

JSC Gazprom Neft
ОАО Газпром нефть
	File:Gazprom neft logo eng.gif
Type	Public
Traded as	(RTS:SIBN; MICEX:SIBN; LSE: GAZ; FWB: SCFF)
Industry	Oil and gas industry
Predecessor(s)	Sibneft
Founded	1995
Headquarters	Moscow, Russia
Key people	Alexei Miller (Chairman); Alexander Dyukov (CEO)
Products	Petroleum
Revenue	US$30.3 billion (2010)
Net income	US$3.1 billion (2009)
Parent	Gazprom
Website	www.gazprom-neft.com

File:Okhta Center contstuction site.jpg

Okhta Center construction site of the new office for Gazprom Neft. The inscription says: "Okhta Center – Project of XXI century". Three types of flags are there: of Saint Petersburg, of Russia and of Gazprom

Gazprom Neft (RTS:SIBN, MICEX:SIBN, LSE: GAZ, FWB: SCFF) (Russian: Газпром нефть) is the fifth largest oil producing and refining company in Russia. It's the oil arm of Gazprom, which owns 80% of Gazprom Neft's shares.

Gazprom Neft's central office is located in Moscow; however, the company is already registered in St. Petersburg where it also has an office. Upon the completion of their new office building, known as Gazprom City in St. Petersburg, Gazprom Neft is going to move its headquarters to Saint Petersburg in the near future. It is currently the largest employer in Omsk and Noyabrsk.

History

Gazprom Neft was created under the name Sibneft (Russian: Сибнефть) in 1995 by Presidential Decree №872, issued on 24 August 1995. A government resolution was signed on 29 September, and the State Property Committee on 11 October ordered that the state's shares in oil producing enterprise Noyabrskneftegas, the Omsk Refinery, exploration enterprise Noyabrskneftegasgeophysica and marketing company Omsknefteprodukt all be transferred to Sibneft.

Sibneft initially combined Russia's largest oil refining complex in Omsk (dba Omsky NPZ), an oil and gas production enterprise based in the city of Noyabrsk in the Yamal-Nenets autonomous district (Noyabrskneftegas), a geological exploration enterprise and an oil products distribution network.

In 1996 and 1997, Sibneft was privatised through a series of loans-for-shares auctions, and Roman Abramovich and Boris Berezovsky acquired it for US$100 million, after bidding through several front companies which they had set up for the purpose.

Sibneft twice attempted a merger with Yukos, to form Russia's largest oil company YukosSibneft. The first attempt in 1998 failed due to a dispute over management. The process was well under way the second time in 2003 when the federal government cracked down on Yukos, and Sibneft's shareholders called off the merger in November of that year.

In September 2005, Russia's largest corporate takeover occurred when Gazprom bought 73% of Sibneft's shares for US$13.1 billion.^[1] Later, Sibneft was renamed Gazprom Neft.

New headquarters in St. Petersburg

On 15 November 2005, Gazprom CEO Alexei Miller and Saint Petersburg governor Valentina Matvienko announced that Gazprom Neft is going to participate in development of the Okhta Center business center including a 300 metre high skyscraper with its headquarters on the right bank of the Neva River.

This location of the new headquarters is across the water opposite the office of the Governor of St. Petersburg, the Saint Petersburg City Administration and the Smolny historic landmark in St. Petersburg. Although current regulations forbid construction of a building taller that 42 metres (or no taller than 48 meters with expertise approval) there, the project is going on.

St. Petersburg City pays 49% funding for construction of the Okhta Center, on the basis that Gazprom Neft is registered here and is currently the largest taxpayer and a big employer, so the city budget is getting adequate benefits. Gazprom Neft, besides being the largest taxpayer in the city, pays 51% for construction of the new headquarters in St. Petersburg.^[2]

Management

On 22 November 2006, the board of directors of Gazprom terminated in advance the authority of its president Alexander Ryazanov and replaced him with Alexander Dyukov.^[3]

As of December 2006, the board of directors consisted of Alexei Miller (Chairman), Andrey Kruglov, Alexander Ryazanov, Kirill Seleznyov, Vasiliy Podyuk, Konstantin Chuychenko, Nikolay Dubik, Yuriy Starodubtsev (a former KGB/FSB officer) and Yuriy Khudyakov.^[4]

As of August 2008, its management committee consisted of Alexander Dyukov (the Company’s acting General director), Vadim Yakovlev (Deputy General director for Finance), Boris Zilbermints (Deputy General director for Exploration and Production), Anatoly Cherner (Deputy General director for Refining and Marketing) and Kirill Kravchenko (Deputy General director ).^[5]

Sponsorship

Sibneft was the official sponsor of the CSKA Moscow football team. In 2005 Gazprom bought the majority stake in FC Zenit, prompting the cancellation of the sponsorship deal between Sibneft and fellow Russian Premier Division football side CSKA. Gazprom Neft also sponsors the Avangard Omsk ice hockey team, and a variety of running, mini-football, Nordic skiing and motorcross events. Gazprom Neft and Gazprombank sponsored Russian racing driver Mikhail Aleshin in 2010 after he lost support from his long time sponsors Red Bull and Lukoil in the end of 2009 season.