Investment activities of zarubezhneft
Zarubezhneft’s projects are funded in accordance with investment decisions and aim to ensure the Company’s development in accordance with the approved Long-Term Development Program. In 2020, Zarubezhneft’s investment activities were associated with the continued implementation of investment projects that had previously been initiated, such as the prospecting and development of fields in Vietnam, Cuba, Egypt, and Uzbekistan.
in Minutes No. 175 dated December 26, 2019.
Funding of Zarubezhneft’s investment plan, RUB mln
| Investment target | 2020 Plan | 2020 Actual | +/– | % |
|---|---|---|---|---|
| Exploration projects | 3,479 | 2,202 | –1,277 | –37 |
| Block 12/11 | 2,344 | 1,298 | –1,046 | –45 |
| Boca de Jaruco | 1,135 | 904 | –232 | –20 |
| Corporate Center investments | 10,394 | 3,900 | –6,494 | –62 |
| Expansion of the business function | 10,000 | 3,543 | –6,457 | –65 |
| R&D | 338 | 188 | –150 | –44 |
| Other | 56 | 169 | 113 | 202 |
| TOTAL | 13,874 | 6,102 | –7,771 | –56 |
| Intra-group loan program | 2020 Plan | 2020 Actual | +/– | % |
| Exploration and production segment | 4,373 | 3,198 | –1,175 | –27 |
| Severo-Karasevskoye Oil and Gas Production Enterprise | 3,603 | 1,417 | –2,185 | –61 |
| ZN Dobycha | 6 | 6 | 1 | 9 |
| ZN LA | 300 | 573 | 273 | 91 |
| ZN BV | 465 | 1,130 | 665 | 143 |
| ZN Development | 0 | 71 | 71 | – |
| Service and other assets segment | 662 | 1,400 | 738 | 111 |
| Arktikmorneftegazrazvedka JSC | 422 | 346 | –76 | –18 |
| SPK | 240 | 1,024 | 784 | 327 |
| EXPLON | 0 | 1 | 1 | – |
| Zarnestservice | 0 | 14 | 14 | – |
| Nestro | 0 | 15 | 15 | – |
| TOTAL | 5,035 | 4,598 | –437 | –9 |
| INVESTMENT PLAN TOTAL | 18,909 | 10,701 | –8,209 | –43 |
In addition, the Company continued to develop the Orenburg cluster. In December 2020, it acquired a 56.17% stake in Uralneftegazprom JSC (UNGP), which owns three license areas in the southern Orenburg region, where three oil and gas condensate fields have been discovered.
ZARUBEZHNEFT GROUP’s assets in 2020 also included its own pipeline system in the Nenets Autonomous Area, whose further development will help to maximize synergy with producing assets in the district.
We also continued to modernize our assets in Russia.
The actual funding of the investment program amounted to RUB 6.1 billion, including:
- Funding of RUB 2.2 billion for Zarubezhneft’s exploration projects
- Investments of RUB 3.9 billion in the Corporate Center (expansion of the area of operations and modernization of the Corporate Center’s fixed assets)
