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.

The investment program for 2020 was approved by a resolution of the Zarubezhneft Board of Directors

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)
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