US GAAP Financial and Operating Results for Second Quarter 2011

3 August 2011

22

Alexey YankevichHead of Economics and Corporate Planning Directorate

Yuri KalnerHead of Strategic Planning Department

Vladimir KonstantinovHead of Economics and Investment Department

Refining and Marketing Division

Management participating in this call

Boris ZilbermintsDeputy Chairman of the Management Board

Deputy CEO for Exploration and Production

33

Disclaimer

This presentation contains forward-looking statements concerning the financial condition, results of operationsand businesses of Gazprom Neft and its consolidated subsidiaries. All statements other than statements ofhistorical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements arestatements of future expectations that are based on management‟s current expectations and assumptions andinvolve known and unknown risks and uncertainties that could cause actual results, performance or events todiffer materially from those expressed or implied in these statements.

Forward-looking statements include, among other things, statements concerning the potential exposure ofGazprom Neft to market risks and statements expressing management‟s expectations, beliefs, estimates,forecasts, projections and assumptions. These forward-looking statements are identified by their use of termsand phrases such as „„anticipate‟‟, „„believe‟‟, „„could‟‟, „„estimate‟‟, „„expect‟‟, „„intend‟‟, „„may‟‟, „„plan‟‟,„„objectives‟‟, „„outlook‟‟, „„probably‟‟, „„project‟‟, „„will‟‟, „„seek‟‟, „„target‟‟, „„risks‟‟, „„goals‟‟, „„should‟‟ and similarterms and phrases. There are a number of factors that could affect the future operations of Gazprom Neft andcould cause those results to differ materially from those expressed in the forward-looking statements includedin this presentation, inclusively (without limitation): (a) price fluctuations in crude oil and oil products; (b)changes in demand for the Company‟s products; (c) currency fluctuations; (d) drilling and production results;(e) reserve estimates; (f) loss of market and industry competition; (g) environmental and physical risks; (h) risksassociated with the identification of suitable potential acquisition properties and targets, and successfulnegotiation and completion of such transactions; (i) economic and financial market conditions in variouscountries and regions; (j) political risks, project delay or advancement, approvals and cost estimates; and (k)changes in trading conditions.

All forward-looking statements contained in this presentation are expressly qualified in their entirety by thecautionary statements contained or referred to in this section. Readers should not place undue reliance onthese forward-looking statements. Each forward-looking statement speaks only as of the date of thispresentation. Neither Gazprom Neft nor any of its subsidiaries undertake any obligation to publicly update orrevise any forward-looking statement as a result of new information, future events or other information.

44

Highlights

Macro Environment

Upstream

Downstream

Financials

Q & A

Appendix

Overview

55

Financial performance in 1H 2011:

• Revenue: US$ 21,341 mln (+39.3% Y-o-Y)

• EBITDA: US$ 4,945mln (+57.7% Y-o-Y)

• Net Income: US$ 2,604 mln (+73,5% Y-o-Y)

Continued operational progress :

• 7.7% Y-o-Y production increase (boe) as Cenomanian gas

reaches full production

• 12.0% Y-o-Y increase in refining volumes

• Substantial gains in premium channel sales (+38.3% Y-o-Y)

Strategic advances:

• Omsk refinery started production of Class 5 motor fuel in

June 2011

• On July 21, President Dmitry Medvedev signed a law

granting MET relief for the Yamal Nenets AO, increasing the

profitability of Gazprom Neft‟s Messoyakha and

SeverEnergy projects

Strong financial performance while advancing on

2020 strategic goals

66

Macro Environment

Improved domestic product prices, stronger ruble

77

Domestic product prices recover to align with high

global crude price environment

Brent, $/bbl Average exchange rate Inflation (PPI), %

Growth in global crude and product prices

New export duties on gasoline and naphtha

Improved domestic prices and strong demand

Government policy and FAS activity focused on

maintaining consumer affordability

Continued ruble appreciation against US$

$/tonne

Omsk refinery netback prices

for unleaded 92 petrol

150

250

350

450

550

650

jan.11 feb.11 mar.11 apr.11 may.11 jun.11

Domestic price (taxes excluded)

Export netback

Gasoline export duties

88

Upstream

New projects on track, upgrading production base

99

Legacy Assets

Cenomanian gas: produce 3.2 MMtoe

Messoyakha: complete development plan,

exploration drilling

Orenburg: beginning of drilling program

realization, the asset is controlled by GPN

Novoport: well re-entry, further study;

preparation for developing long term strategy of

project

SeverEnergy: gas and condensate transportation

infrastructure construction

Continue to develop new technologies

Maintain production levels

Badrah: complete seismic and first stage

infrastructure; begin de-mining (phase 2) begin

drilling (7 wells)

Equatorial Guinea: selected sites for

exploration drilling

Venezuela: organizational activity and

stratigraphic drilling, preparation for on-shore

infrastructure

Cuba: preparatory work and drill first well

New projects driving domestic growth while international expansion continues

Cenomanian gas: full scale production

Messoyakha: seismic complete; drilling

exploration wells; preparation for test

production

Orenburg/Novoport: preparation to

transfer licenses

Novoport: reappraisal identified premium

quality crude oil; marine transport plan

approved; preparation for test production

SeverEnergy: Long term strategy

submitted for Board of Directors approval

1Н11 Key Events: 2011 Major Goals:

Badrah: de-mining complete (phase 1); 3D

seismic complete; infrastructure work in

progress (phase 1 complete); drilling

contractors approved

Equatorial Guinea: completed 3D seismic

on Blocks T and U

Venezuela: planning; well permitting

agreement; make a decision about „Early

Production‟

Cuba: signed JV agreement (July 2011)

NIS: Hydrocarbon production increase

(+25% Y-o-Y)

New Source

International

Tomskneft compressor station startup

Removal of unprofitable wells from

operations

Intensified E&P activity

Priobskoye field added 8% Y-o-Y

Zimnee field added 56% Y-o-Y

1010

KboepdMMToe

Group hydrocarbon production

kMMtoe

+8%+1%

SPD was a key contributor to production

from equity affiliates, growing by 2.7% Q-o-

Q and 10.3% Y-o-Y

Tomskneft Q-o-Q gas production increased

by 25.1% due to completion of maintenance

at the Luginetskaya gas compressor station

Total Group hydrocarbon production increased by

1.2% Q-o-Q and 7.7% Y-o-Y

Crude oil production by consolidated subsidiaries

increased 0.9% Q-o-Q and 0.1% Y-o-Y, driven by

seasonal factors and increased development

activity in 2Q11 vs. 1Q11:

Drilling

Hydrofracking

Production growth continues for fourth straight

quarter

1111

▪ Gazprom Neft and Schlumberger signed a

technology cooperation agreement to

increase E&P efficiency in Gazprom Neft‟s

domestic and international operations

▪ Weatherford partnership will accelerate

technology application (in the stage of

preparation the drilling program of multilateral

wells with coil tubing application)

▪ Specific projects include

• Completing production test of foam fracking

technology at Priobskoye field

• Preparing well coverage optimization plan for

Priobskoye field

• Evaluating experimental use of nitrified foam

fracking at Vingapurovskoe field

• Developed plan to test horizontal drilling and

multi-stage foam fracking at Vingapurovskoe

field

• Continued testing new technologies for

remedial cementing of producing and injection

wells

Modern technology will drive improved recovery at

older fields

Planning multi-stage completion

program using Weatherford coiled

tubing technology

Application of modern technology

will increase production and

improve recovery from older fields

1212

MET relief significantly improves economics

of SeverEnergy and Messoyakha fields:

• Total economic benefit over 10 years

>130 bln rubles

• Allows Gazprom Neft to start

immediate development of oil

component

But Messoyakha needs oil prices >US

$100/bbl to recoup investment

Additional stimulus is therefore needed:

• Crude oil export duty exemption

• Reformed oil sector tax system

Further decision-making in the region will

require additional tax reductions beyond

Yamal MET relief

Novoport

Messoyakha

YNAO

– Messoyakha

– Gazprom

– Sever Energy

– Unlicensed federal resources

Exploration

“Zapolyarye Purpe” pipeline

– Exploration area (after 2020)

– Projected pipeline

Yamal peninsula Gydan

MET relief raises profitability of Projects in YNAO, but further tax reforms still necessary

Company Field Accumulated

Production*

Tax relief

effect**

Messoyakha 50 MMTonnes 98.6 bln RUB

SeverEnergy 33.3 MMTonnes 33.4 bln RUB

Total GPN 83.3 MMTonnes 132 bln RUB

* Total project production applicable to MET tax exempt

** Attributable to GPN

1313

• 100% (Gazprom transfer)

• Reserves: 404 MmToe

• Startup: 2014

• Peak: 13.1 MmToe at 2021

• + US$ 0.4 bln to GPN value

Novoport

• 50% (JV with TNK-BP)

• Reserves: 513 MmToe

• Startup: 2015

• Peak: 33.4 MmToe at 2025

• + US$ 2.1 bln to GPN value

Messoyakha

• 25.5% (JV with NOVATEK)

• Reserves: 1,177 MmToe

• Startup” 2012

• Peak: 35 MmToe at 2024

• + US$ 0.7 bln to GPN value

Sever Energy

• 50% (JV with TNK-BP)

• Reserves: 420 MmToe

• Startup: 2016-2018

• Peak: 15 MmToe at 2022

• + US$ 0.4 bln to GPN value

Kuyumba

New projects gain significant value under new tax incentives

2012-2021 MET relief (approved 21 July)

and “60-66” tax regime adds ~16% to

Gazprom Neft market cap

1414

Downstream

Fuel quality upgrades and increase in marginal sales add value to

industry-leading portfolio

1515

Begin construction of isomerization

units at Moscow and Yaroslavl

refineries to improve gasoline quality

Upgrade and construct fuel quality-

focused units (hydrotreaters) at all

refineries to achieve EU

environmental standards

Continue NIS refinery modernization

plan, including construction of

MHC/DHT unit, allowing transition to

Euro-5 product output in 2012

Premium sales development in Serbia

Growing sales volumes at

Gazpromneft Lubricants Italia

Complete retail station rebranding and

introduce customer loyalty programs

Optimize network to increase average

per-site throughputs and related

products and services sales

Continue premium sales growth

Refining volumes up 19% 2Q

2010/2Q 2011

Omsk started production of

Class-5 motor fuel in June

In June Omsk refined its

billionth ton of oil

Test refining of gas condensate

from SeverEnergy

2Q11 Key Events: 2011 Major Goals:

Premium sales volume up 45%

2Q11 / 2Q10

Rebranding campaign well

underway due to Sibir Energy

retail network

Increased Euro-quality fuel

output at NIS

Entered new international

bunkering markets

Refining

Premium Sales

International

Refinery modernization raises fuel quality, drive

continued premium sales growth

1616

4.675.24

4.62

1.65

2.73

2.57

1.65

1.68

1.740.71

0.67

0.518.68

10.32

9.43

0

2

4

6

8

10

12

2Q10 2Q11 1Q11

MMTonnes

Omsk Moscow Yaroslavl NIS

+18.9%+9.4%

70%

30%

82%

6%

12%

21%

68%

11%

72%

28%

Gazprom Neft refining throughput Gazprom Neft gasoline and diesel yields

(MMTonnes)

Gasoline

Upgraded fuel quality adds value to increased

refining runs

Refinery throughputs rise due to increased demand

Moscow refining volume up 65% Y-o-Y due to

consolidation of third party processing and

difference in maintenance cycles Q-o-Q and Y-o-Y

High-octane gasoline production up 33% Y-o-Y:

-Excise taxes differentiation

-Increase in Moscow Refinery throughput

-Following streaming of Omsk Isomalk-2 unit

Diesel

2.5

1.6

2.8

2.1

= < Class 3

= Class 3

= Class 4 & 5

2Q10 2Q11

1717

Gazprom Neft average netbacksGazprom Neft Crude mix

2070

Refining netbacks remain strong

Crude export profitability down from March 2011 highs due to:

- Lag in crude oil export duty

- Stabilizing oil price environment

Higher domestic and CIS sales driven by buoyant post-crisis demand and prices

MMTonnes

Utilizing higher netbacks by channeling crude to Refining

$/bbl

1818

Y-o-Y 2Q premium*

sales increase

Expanded refueling operations

to 11 civil and 11 military

airports in Russia and 26

abroad

Entered new bunkering markets

in Klaipeda, Tallinn and Leipaja

internationally and Nizhniy

Novgorod domestically

Increased G-Family lubricants

international sales volume by

2.7 times Y-o-Y

G-Drive premium branded

motor fuel achieved 16% share

of high octane market in Saint

Petersburg

Market share**

Lubricants

•premium sales include retail and small wholesale

**Market shares are retail market shares for retail fuels and lubricants, overall national market shares for aviation and bunkering

High growth premium channels continue strong

performance

Retail

Aviation

Bunker

37%

51%

45%

Bunkering

1919

Financials

Strong results on higher volumes and prices

2020

RevenuesUS$ mln

EBITDA*US$ mln

Net IncomeUS$ mln

*EBITDA includes share of affiliates’ EBITDA

Increased sales volume and higher crude and petroleum prices drove 16.3% revenue increase Average Urals price

increased10.8% Q-o-Q and 42% Y-o-Y

Strong revenue performance as well as improved sales mix driving 58% Y-on-Y growth in 6M EBITDA

Duty lag effect and ruble appreciation dampened Q-o-Q EBITDA increase

58% Y-o-Y EBITDA increase, gain from sale of investments drove 74% rise in net income

Net income fell 19% Q-o-Q due to increase in DD&A and changes in fair value of foreign currency derivative contracts

- US$ 198 mln charge to reserve for FAS penalties

Volume and pricing strength leverage 74%

net income expansion Y-o-Y

2121

Y-o-Y EBITDA growth driven by price, volume and improved sales mix

Changes in Net price = 1 386

3,136

4,945

OPEX = - 172

SG&A = - 29

Exploration expenses = 11

Management effectiveness = 405

2222

Volumes and tariffs growth lead to larger Opex

2323

US$ mlnCash reconciliation:. 1H11 vs. YE2010

Free cash flow boosted due to working capital

stabilization

Fre

e c

ash flo

w

2424

555

631

495

111

191

75

55

67

26

14

4

16

735

893

612

2Q10 2Q11 1Q11

Exploration and production Refining

Marketing and distribution Others

13,7%

72,1%

21,5%45,9%

27,5%

154,7%

157,7%+21,8%

Capex Comparisons (US$ mln)

Growth and improvement program continues to drive

capex

Capital spending program continues to focus

on growth and competitive improvement

Quarterly E&P capex up 27.5% vs. 1Q due to

28.4% increase in production drilling

Refining capex up 154.7% Q-o-Q due to

construction of catalytic cracking

hydrotreatment and diesel fuel

hydrotreatment units at Omsk refinery; light

naphtha isomerization unit at Moscow refinery

and other projects

Marketing and distribution capex up 157.7%

as service station rebranding program

focuses on integration and rebranding of Sibir

Energy assets, doubling presence in Moscow

region

2525

Continued commitment to capital discipline and

debt optimization

Net debt/EBITDA 0.8 vs. target < 1.5

Share of short term debt decreased by 10.3

p.p. Q-o-Q and 25.6 p.p. Y-o-Y

Average interest rate decreased 1% p.p. Y-o-Y

Gearing ratio and maturity mix

Signed US$ 600 mln unsecured 5 year

club deal in April 2011

Average debt maturity increased by

7.4% from 2.41 to 2.59 years Q-o-Q and

50,5% Y-o-Y

Debt by currency

2626

Questions & Answers

2727

Appendix

2828

2,467

Changes in Net Price = -49

2,478

Q-o-Q EBITDA growth was tempered by duty lag effect

Management

effectiveness = 164

OPEX = -10

SG&A = 78

Exploration

expenses = 11

2929

Q-o-Q Opex growth driven by real Ruble appreciation

and increase in upstream activity

3030

bbl barrel

boe barrel of oil equivalent

tonne metric ton

toe tonnes of oil equivalent

MMTonnes million tonnes

MMbbl million barrels

MMboe million barrels of oil equivalent

Mmtoe million tonnes of oil equivalent

bcm billion cubic metres

mcm thousand cubic metres

MMm3 million cubic metres

bcf billion cubic feet

kbpd thousand barrels per day

kboepd thousand barrels of oil equivalent per day

ktpd thousand tonnes per day

tonnes/day tonnes per day

For additional definitions:

http://ir.gazprom-neft.com/

Units