27 Jun 2014 09:06
OJSC Surgutneftegas / AGM Statement 27.06.2014 09:06 Dissemination of a Regulatory Announcement, transmitted byEquityStory.RS, LLC - a company of EQS Group AG.The issuer is solely responsible for the content of this announcement.--------------------------------------------------------------------------- ANNUAL GENERAL SHAREHOLDERS' MEETING FOR 2013 HELD IN SURGUT ON 27 JUNE In line with the agenda, the shareholders approved the annual report and annualaccounting statements of OJSC 'Surgutneftegas', including the income statement for2013.The meeting resolved to declare payment of dividends for 2013 as follows: RUB 2.36per preference share and RUB 0.6 per ordinary share.The meeting elected the following members of the Board of Directors:V.L.Bogdanov, A.N.Bulanov, V.P.Erokhin, I.K.Dinichenko, V.M.Krivosheev,N.I.Matveev, V.I.Raritsky, I.Sh.Usmanov and V.A.Shashkov.The meeting also elected the Auditing Committee of three people andapproved LLC 'Rosexpertiza' as auditor for 2014. In addition, the meeting resolvedto approve transactions that may be conducted in the future by OJSC'Surgutneftegas' and its affiliates in the course of its general businessactivity.In his report on the 2013 results, Vladimir Bogdanov, Director General of OJSC'Surgutneftegas', said that consistency in achieving production objectives andstable foreign economic conditions allowed the Company to reach the plannedamounts of hydrocarbon production in Western and Eastern Siberia, commission newfields, ensure the significant growth of reserves, put into operation newcapacities at the refinery of the Company.'In oil and gas production sector the Company reached the production resultsplanned for 2013: oil production amounted to 61.5 million tonnes, gas production -12.1 billion cubic meters. In 2013, the amount of upstream investments increasedby 4.2% and amounted to RUB 172.6 billion.One of the ways to achieve the desired level of profitability and maintainproduction output is the introduction of innovations, the use of modern equipmentand technologies, especially for hard-to-recover reserves.The Company uses many methods of reservoir stimulation including different kindsof hydraulic fracturing, sidetracking, physicochemical reservoir treatment,horizontal drilling, underbalanced and coiled-tubing drilling. Today, over 60% ofoil is produced due to new enhanced oil recovery techniques.Higher effectiveness through the rational use and saving of the resources, deepanalysis of investment efficiency, costs monitoring and quality control of theworks performed are among the Company's absolute priorities.OJSC 'Surgutneftegas' continuously implements a set of programs for theseactivities which have a significant economic effect.'The Company retained its position as an industry leader in exploratorydrilling. The performed exploration resulted in discovery of two new fields and 17new oil deposits. The growth of the recoverable C1 oil reserves equaled about 118million tonnes.Altogether, over the last five years, the total growth of C1 oil reservesamounted to 466.5 million tonnes which exceeded the oil output of theperiod by 54%. By virtue of exploratory works and updates on the structure ofdeposits the Company managed to add 397 million tonnes of reserves and obtainedabout 70 million tonnes from the new license areas.In 2013, the investment in the oil refining sector was about RUB 11billion. The Company completed construction and started an operation of Europe'slargest deep conversion complex based on residue hydrocracking with the capacityof 4.9 million tonnes.In 2013, the Company's in-house generation capacity exceeded 880 MW. The volume ofpower generation increased by 14% and amounted to more than 5.1 billion kWh, whichis about 42% of the electricity needed for oil and gas production.In his report, Vladimir Bogdanov put particular emphasis on the Company'soperations in Eastern Siberia. He said that one of the most remarkable events ofthe reporting year was the tenth anniversary of the Company's operation in thisregion. There was a tremendous amount of work done to create a modern productioncomplex over this period. All infrastructure facilities required for thedevelopment of fields were built from scratch. They included maintenance bases,power stations, roads and power lines. Development drilling amounted to more than1 million meters; exploratorydrilling - to 326 thousand meters. The well stock of various purposesexceeded 900 wells. The Company commissioned five fields. One of them, East Blockof the Talakanskoye field, was put online in the reporting year. Oil productiontotaled 26 million tonnes.Over the last ten years, the Company invested RUB 167 billion into theregion. And today, Eastern Siberia contributes significantly to theCompany's operating results: it provided about 12% of Surgutneftegas total crudeoutput in the reporting year.'And we intend to continue the Company's development in the region,' VladimirBogdanov said. 'We have 25 licenses for subsoil use. Eastern Siberia accounted for23% of the total exploratory drilling in 2013. We plan to put online four new oilfields in the next five years.Along with the construction of the production facilities, the Company is deeplyinvolved in social and economic development of the region.Surgutneftegas took part in some territory development projects by mutualagreement with the regional authorities. The 'Talakan' airport built by theCompany was officially commissioned in 2013. This not only allowed us to solvesome production tasks, but greatly increased the investment attractiveness of thewhole region and eased the transportation of its residents.'Talking about the financial results of the year, Vladimir Bogdanov noted that theCompany's production performance and external factors made it possible to increasethe net profit by 59% (RUB 256.5 billion).'The personnel have always been of great value for the Company,' Vladimir Bogdanovadded. 'Thanks to our employees, we have provided solutions to many technologicaland management tasks, achieved our production objectives, and ensured stablemarket and competitive positions of Surgutneftegas.'I believe that 2014 will be a year of new achievements, growth ofinvestment attractiveness and competitiveness. We have every reason to believethat the chosen development policy, which has proved its effectiveness, will inthe future serve as a reliable basis for fulfilling the goals set by theshareholders and ensuring our well-being.' 27.06.2014 EquityStory.RS, LLC's Distribution Services include RegulatoryAnnouncements, Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: EnglishCompany: OJSC Surgutneftegas Grigoriya Kukuyevitskogo, 1, bld.1 628415 Surgut RussiaPhone: Fax: E-mail: Internet: www.surgutneftegas.ruISIN: US8688612048Category Code: AGMTIDM: SGGDSequence Number: 2091Time of Receipt: Jun 27, 2014 09:06:20 End of Announcement EquityStory.RS, LLC News-Service ---------------------------------------------------------------------------UK-Regulatory-announcement transmitted by DGAP - a company of EQS Group AG.The issuer is solely responsible for the content of this announcement.