Gazprom Neft launches technology commercialization business model

AK&M 14 September 2020 23:46

Gazprom Neft has announced plans to launch a business model for technology commercialization. The company's new subsidiary Gazpromneft-Technology Partnerships will focus on creating integrated solutions aiming at commercial effectiveness of tight oil production projects and implementing innovations in the industry market, the company informed.

As part of the new business model and the project portfolio expansion process, the Bazhen Technology Center is renamed as Gazprom Neft's subsidiary Gazpromneft-Technology Partnerships. The company acting as the operator will continue implementing the national project of creating technologies for cost-effective development of Bazhenov formations. Gazpromneft-Technology Partnerships will also become the management and expertise center for Gazprom Neft's strategic bids such as "Non-conventional reserves", "Paleozoic reserves", "Chemical EOR methods" and "Achimovsky deposits".

Gazprom Neft PJSC (tax number: 5504036333) and its subsidiaries own 61 licenses for the prospecting and development of oil fields. The proven oil reserves in the company's fields exceed 4.5 billion barrels. The company's largest shareholder is Gazprom Group.

IFRS net profit attributable to the shareholders of Gazprom Neft PJSC for 2019 increased by 6.2% YoY to reach RUB 400.201 billion versus RUB 376.667 billion a year earlier. Revenue was RUB 2.485 trillion decreasing by 0.2% YoY from RUB 2.489 trillion). Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) stayed flat YoY at RUB 795.1 billion, despite negative price dynamics and adverse market trends.

IFRS loss of PJSC Gazprom Neft for Q1 2020 attributable to the company's shareholders amounted to RUB 13.806 billion against a profit of RUB 107.894 billion a year earlier. Revenue decreased by 12.2% to RUB 514.568 billion from RUB 586.359 billion, EBITDA by 54.6% to RUB 81.376 billion from RUB 179.052 billion.