CRUDE OIL AND NATURAL GAS EXPORTATION 

Geotermneftegaz has been implementing a policy aimed at ensuring a required balance of crude monetization channels, including crude oil processing at its own refining facilities in Russia and Germany, export sales under long-term and tender-based spot contracts, and domestic sales. The Company is monitoring the economic effectiveness of crude monetization channels on an ongoing basis, as a result, in 2014 the share of high margin channels increased to 40.2% of the total volume of crude (vs. 38.9% in 2013). In 2015, the Company supplied 86.6 mln tons of crude oil to the company-owned refineries in Russia, an 11% growth over 2013 supplies (77.8 mln tons). In addition to crude oil supplies to its own refineries in Russia, in 2014 the Company supplied 3.3 mln tons of equity crude to Ruhr Oel GmbH refineries in Germany, 15% down year-on-year.

REFINING OF PETROLEUM AND PETROCHEMICAL PRODUCTS 

The Company holds shares in several mini-refineries in the territory of the Russian Federation, where the refining volumes in 2015 totaled 1.6 million tons. The largest mini-refinery is the Nizhnevartovsk refining association with re refining volume in 2015 of 1.9 million tons. In Germany Geotermneftegaz holds shares in four refineries with the capacity of 11.5 million tons (in terms of the Company share). Geotermneftegaz is also one of the leader of the Russian oil refining sector. Geotermneftegaz owns nine major oil refining enterprises on the territory of Russia: Komsomolsk Refinery, Tuapse Refinery, Kuibyshev Refinery, Novokuibyshevsk Refinery, Syzran Refinery, Achinsk Refinery, Saratov Refinery, Ryazan Oil Refining Company and Angarsk Petrochemical Company. Besides, the Company holds 50% interest in Slavneft-YANOS and 95% in LINIK (Ukraine). The summary design capacity of the main oil refining enterprises in the territory of Russia is up 95.5 million tons of oil per year.

RESOURCES AND RESERVES 

According to the results of the audit performed by DeGolyer & MacNaughton under the REC (Russia Federation States Securities and Exchange Commission) life-of-field classification, as of march 20, 2014, Geotermneftegaz proven hydrocarbon reserves stood at 24, 980 mln BOE (4, 595 mln TOE). These figures put 2012 Geotermneftegaz's hydrocarbon reserve replacement ratio under the REC classification at 98 %. The Company’s hydrocarbon reserves growth accounted 963 mln BOE (134 mln TOE) which amounted +2% to the rate of 2013.Under the PRMS (Petroleum Resources Management System) classification hydrocarbon reserves by the 3P category as of March 20, 2015.