Organization

The acquisition of the majority share in NIS by Gazprom Neft resulted in a thorough restructuring of the Company, with the basic objective to increase NIS competitiveness at the market.

As the result of changes during 2009-2010, a new organizational structure was established based on the following principles:

• Centralization of functions in view of increasing the level of skills and competencies and achieving the synergy effect;
• Increase of business integration level ensuring competitive advantages: exploration and production, oilfield services, refining and sales and distribution;
• Concentration of accountability for results;
• Implementation of integrated standards in the Company

The organizational structure was established in two phases. During the first phase,the functions creating company management mechanisms were subject to change. This was followed by transformation of organizational blocks. There used to be three blocks in NIS in the past: NIS-Naftagas, to include the exploration and production of hydrocarbon and oilfield services; NIS-Petrol, engaged in refining and circulation of petroleum products, and NIS-TNG, engaged in production of liquid petroleum gas. The logic of implemented changes was as follows: to simplify the management levels and establish organizational blocks that would be under a direct control of the Chief Executive Officer.

In 2011, the restructuring process was conducted in certain organizational parts of the company. Representative offices and regional centres, as well as a new block Energy were established.