PJSC VERKHNECHONSKNEFTEGAZ

Corporate Company Profile

August 2017

13.09.2016
 Important Notice

Information herein has been prepared by the Company. The presented conclusions are based on the general information collected as
of the date hereof and can be amended without any additional notice. The Company relies on the information obtained from the
sources which it deems credible; however, it does not guarantee its accuracy or completeness.

These materials contain statements about brief information, events and explanations about VCNG. Any assertion in these materials
that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other
factors, which may cause our actual results, performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking statements. We assume no obligations to update the
forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting such
statements.

This presentation does not constitute an offer to sell, or any solicitation of any offer to subscribe for or purchase any securities. It is
understood that nothing in this report / presentation provides grounds for any contract or commitment whatsoever. The information
herein should not for any purpose be deemed complete, accurate or impartial. The information herein in subject to verification, final
formatting and modification. The contents hereof has not been verified by the Company. Accordingly, we did not and do not give on
behalf of the Company, its shareholders, directors, officers or employees or any other person, any representations or warranties,
either explicitly expressed or implied, as to the accuracy, completeness or objectivity of information or opinions contained in it. None of
the directors of the Company, its shareholders, officers or employees or any other persons accepts any liability for any loss of any kind
that may arise from any use of this presentation or its contents or otherwise arising in connection therewith.

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INTRODUCTION
Verkhnechonskneftegaz explores and develops the
Verkhnechonsk oil, gas, and condensate field, which is
the second largest field in East Siberia, located in the
Irkutsk Region.
Oil production exceeded 8.6 mmt in 2015, which was
5.4% above the 2014 level. Production growth was
supported by the implementation of a production drilling
program and intensification of production in the base
stock.
Such results were achieved owing to efficient well work,
optimization of the drilling cycle, construction of new
wells and monitoring of pay zone parameters. The
hydraulic fracturing program for the base stock
facilitated an increase in well efficiency. The development
of the field onshore infrastructure was a significant
contribution to production increase. The rebuild of the oil
treatment unit increased its throughput by 25% from
the design capacity and the start-up of an oil pipeline
contributed to the significant growth of oil transportation
volumes.

IN 2015, THE COMPANY REACHED THE HISTORICAL

DAILY PRODUCTION MAXIMUM OF 23.7 KT AT THE
VERKHNECHONSK FIELD BY OPTIMIZING THE
INFRASTRUCTURE.
 History
Public Joint Stock Company Verkhnechonskneftegaz (PJSC VCNG) is engaged in the exploration and development of the
Verkhnechonsk oil and gas condensate field, one of the largest in Eastern Siberia, located in the Katangsky District of the
Irkutsk Region, about 440 km northwest of the city of Ust-Kut. Rosneft controls 45.94% of VCNG shares.

The development of the Verkhnechonsk field, along with the exploration of 8 adjacent sites, is one of the priority activities of
Rosneft in Eastern Siberia.

All oil from the Verkhnechonsk field is exported through the Eastern Siberia-Pacific Ocean pipeline system.

SERVICES OFFERED LIST OF PRODUCTS TARGET MARKET

Our services include: The Products we supply are: The target market includes:
Oil and Gas Exploration Lubricants and Oils Government parastatals
Bitumen Airports
Bulk Fuel Sales and Distribution
Aviation Kerosene Commercial transport
Refining Diesel Manufacturing and
Bulk Fuel Transportation Liquefied Petroleum Gas Processing
Fuel Deport Management Gasoil Mining
Oil field Services Naphtha Major International
Gasoline Importers
Russian Export Blend Crude

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 2008 2009 2010 2011 2012

PRODUCTION VOLUMES 100%, kt 156 1 181 2 603 5 023 7,051

Oil production of PJSC Verkhnechonskneftegaz

100%, million
1.2 8.9 19.5 37.7 52.9
barrels.

Stocks of PJSC Verkhnechonskneftegaz (100%, as of December 31, 2012

according to the classification of PRMS, DeGolyer & McNaughton)

Proved hydrocarbon reserves, mln barrels. AD 1408.32

Proved oil reserves, million barrels. 1348.873

Proved gas reserves, billion cubic meters. m 9.762

Probable hydrocarbon reserves, mln barrels. AD 716,914

Probable oil reserves, mln barrels. 685,605

VOLUME OF STOCK
Probable gas reserves, billion cubic meters. m 5,143

Possible hydrocarbon reserves, mln barrels. AD 505,369

Possible oil reserves, mln barrels. 492,028

Possible gas reserves, billion cubic meters. m 2,191

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TECHNOLOGY
VCNG is a modern company, and the
nature of its prevailing business
activities is such that it requires
special and constant attention that will
ensure healthy, secure, and safe
environment.
For that reason, we develop plain and
strict principles and standards,
application of new clean technologies
and partner relationship with
interested parties. Transparency of
our business activities, confidence in
partnership, and investment into
employee safety, health, and
development, responsible relation to
environmental protection, investments
into society, its demands and values, all
form the backbone of the sustainable
development principle we apply.
CORPORATE
MANAGMENT
For VCNG, which strives to achieve its
goals and apply the most demanding
standards in all business areas, a high
level of corporate management is very
significant in order to ensure protection
of shareholders interests, successful
business operations, maintaining of the
market position and contributing to the
overall social development.
SUSTAINABLE
DEVELOPMENT
The vision of VCNG sustainable
development lays in achieving balance
and reliability and focuses on the
responsibility to future generations.
VCNG has adopted the Corporate
Management Code of the Company
which comprises its own principles of
corporate management.
The objective of the Code is to introduce
approved business customs that should
ensure a balanced influence of their
carriers, consistency of the control
system, and strengthening of
shareholders and investors trust in
order to provide a long-term business
development of the Company.
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 8

OILFIELD SERVICES
VCNG owns the full equipment, production units and transportation means required for works
execution. The servicing capacities of VCNG also provide services to third parties in the field of oil and
gas exploration and production:

geophysical testing - seismic, gravimetric, electromagnetic, and geo-electrical testing methods

construction, workover, and equipping of oil, gas, and hydrothermal wells
execution of special operations and well logging for oil, gas, and water: electric logging and
hydrodynamic measurements, cementing, stimulation, and testing
maintenance and repair of facilities and equipment, construction of pipelines, installation of oil and gas
technological systems, preparatory construction works for drilling and well workover.

VCNG have the goal to strengthen their position in the region and in the international market, therefore
their priority is to provide the best possible quality of service, increase of technical and technological
efficiency and ensure a growing number of jobs in VCNG and other companies.
 VCNG Development Pipeline

Greenfield start up pipeline Superb efficiency of greenfields3

8 Uvat+VCNG+Vankor 159.0
Company E&P total
mmt

6
105.2

Rospan s-Yuryah (2 st.)Russkoeuyumba Tagul

Production plateau,

85.8

1
NaulSuzunE.Messoyakh1 Yu
4
48.8
2

2
La
ba
ga

L
o
d
o

h
n
o
n

e
0
2015 2016-2017 2018-2019 2019-2020 Average flow rate Unit OPEX, RUB/boe
of new wells, tpd
Launch in 2015

Greenfield production and CAPEX4 The Company optimizes the budget with a
RUB bln mmt
focus on new upstream greenfields
CAPEX, RUB bln

Production, mmt Launch of Labaganskoye field in July 2015

with expected ~1 mmtoe output in 2016
Key near-term launching targets Suzun, Naul
and East Messoyakha
Preliminary contracts signed for Russkoe,
Kuyumba, YuTM and E. Messoyakha to deliver
oil to Transneft pipeline system (Zapolyarye-
Purpe, Kuyumba-Taishet)

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 HEALTH AND SAFETY AT WORK,
INDUSTRIAL SAFETY, AND
ENVIRONMENTAL PROTECTION
VCNG strives to achieve a most rational use of natural resources
and decrease of negative impact on human life and environment by
means of improvement of HSE culture (Health, Security, and
Environment). The Company continually undertakes activities in the
field of application of demanding HSE standards, in accordance
with international trends and regulations, being one of essential
requirements imposed by the development of technical and
technological process for resource exploitation, as well as by the
growing awareness of health care and environmental protection.
Our aim is to achieve a sustainable HSE integration into the
everyday operations and Company culture, being the basis for
application and fulfillment of legal and other commitments, as well
as the fulfillment of requirements of all interest groups - owners,
employees, social community, partners, and the country.

VCNG AND ITS EMPLOYEES

One of the most important resources of VCNG, as a modern and
dynamic company, are its employees who contribute to the
achievement of the Companys organizational goals through
realization of their personal and professional potential. Therefore,
the skilled and top quality personnel are the foundation that VCNG
success is built upon.
Continual investment into the development of know-how,
competences and skills of young talents and successors enables
the Company on a long-term basis to have the best employees at
12 the key positions at any moment, and we are extremely proud of
this fact.
NEW TECHNOLOGIES AND ENVIRONMENTAL PROTECTION
Equipment modernization, innovative approach, and application of modern technologies are a prerequisite for advancement,
competitiveness, and gaining of regional leadership. VCNG has adopted the Concept of Innovative and Science and Technical Activity
Development of the Company by 2020, with the following goals:
support to the implementation of the Companys strategy, creating competitive advantages as to ensure a stable leading position in the
region and building an image of a modern and innovative company which applies the advanced technological solutions in its operations.
The successful implementation of planned projects and the Company development strategy require continual training and advancement
of employees, including application of the latest and best quality technologies in the field of petroleum business.

KEY ENVIRONMENTAL PROJECTS OF VCNG IN THE PREVIOUS PERIOD:

Verkhnechonskoe oil flied modernization, resulting in a decrease of hazardous substances emission into
atmosphere, whereas the process of obtaining EU standard 2009+ in gasoline and Diesel fuel production with an
increased Sulphur content have produced a positive impact on the overall environmental image in East Siberia.
Construction of the spent acid regeneration unit (SARU) has contributed to resolving the issue of storage and safe
disposal of hazardous waste, including its transportation.
Reconstruction of Verkhnechonskoe wharf has contributed to prevention of air pollution during oil and petroleum
products loading and unloading and to elimination of the possibility of groundwater and waterway contamination
during petroleum products transshipment.
Reconstruction of the waste water treatment unit has led to an improvement of waste water quality and
minimization of possibility of groundwater and waterway contamination.
Construction of petrol stations in accordance with the most contemporary world standards (installation of
separators for oily waste water purification, installation of a double lined tank, energy-efficient facilities) has resulted in
noise reduction and adequate groundwater and soil protection. In the forthcoming period, significant investments are
planned as well as some vital environmental improvements, by means of production process improvement and fuel
production as per the European quality standards.
Strategic goals by 2018 foresee almost 900 million Dollars investments, which is 6.5 times more than the funds
designated for environmental protection, in line with the sales contract.
Apart from the environmental projects, VCNG will invest into the infrastructure projects with an environmental effect,
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15
Successful Implementation of Refinery Modernization
Program Ensures Growth in Profitability

Large-scale modernization program including construction and upgrade of over 50 technological complexes and units
Remaining CAPEX for refineries modernization ~RUB 500 bln
Refining depth to increase to 78%
Downstream EBITDA growth to ~RUB 200 bln
Despite tightening tax regime and worsening macro environment investment attractiveness remains high
Focus on the most efficient projects

16
Note: (1) Including VAT, (2) Including mini-refineries
1
 17

Yuryakh - Kozmino
Verkhnechonsk field
The Verkhnechonsk field is a giant oil field in Eastern
Siberia, Russia. The field is located in Kataganskiy
district, Irkutsk Oblast, about 1,100 kilometres (680 mi) north-
east from Irkutsk. It is considered the largest oil field in Eastern
Siberia.
The field was discovered in 1978 and development started in
2002. Pilot operation of the field was started in 2005 and on
15 October 2008, first oil produced at the Verkhnechonsk
field was delivered. As of 2007, total proved reserves of
Verkhnechonsk were 409 million barrels (65.0106 m3) of oil
equivalent, and proved, possible and probable (3P) reserves
amounted to 1.886 billion barrels (299.9106 m3). Natural gas
reserves are 95.5 billion cubic meters. In 2009, the field
produced through 41 oil wells 1.181 million tons of oil, equal to
23,500 barrels per day (3,740 m3/d). The field is operated by
Verkhnechonskneftegaz, a joint venture of TNK-
BP (68.51%), Rosneft (25.94%), and East Siberian Gas Co.
(5.48%).

Produced oil is shipped by a 85-kilometre (53 mi) pipeline

to Surgutneftegaz' Talakan field where it supplied to
the Eastern Siberia Pacific Ocean oil pipeline.

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 EXECUTIVE DIRECTOR
WHEN ASKED As Verkhnechonsk,
has become an impetus to the
development of other oil and gas
fields. As a subsidiary of Rosneft,
PJSC VCNG acts as the operator of
other licensed sites in the Irkutsk
region. Can you tell us in what
order they are planned to
master?

Executive Team Now the Verkhnechonsk field is a

springboard for access to neighboring
territories. Rosneft, buying 12 sites in
the region, uses us as an operator for
their development. VCNG is tasked
with conducting appraisal exploration
works. Sites where as a result of
seismic prospecting, prospecting
drilling and trial operation, industrial
reserves will be confirmed, we will lead
to full-scale development. The current
task is to think over the development
strategy and implement it - create new
oilfield facilities and give the country
oil.

Alexander Bliznyuk
General Director
LEGAL INFORMATION
LEGAL NAME
PJSC "VCNG"

INN
3808079367

OGRN
1023801017580

CONTACT INFORMATION
PHYSICAL ADDRESS
BOLSHAYA LITEINYI AVENUE, 3
IRKUTSK, IRKUTSK REGION
RUSSIA FEDERATION.

POSTAL ADDRESS
664007, IRKUTSK CITY
IRKUTSK REGION, IRKUTSK CITY
BOLSHAYA LITEINYI PROSPECT, 3.

PHONE
TEL: +7 (3952) 265 691
+7 (3952) 265 692
FAX: +7 (3952) 289 922

E-MAIL
29
support@vcng-rosneft.ru
 2017 PJSC VCNG

WWW.VCNG-ROSNEFT.RU