OIL GASYAKUTIYA 2020

33

Introduction

СоntentsIntroduction............................................................................................... 3.

Mission.and.goals................................................................................... 4

RNG.today................................................................................................... 5

Map.of.license.areas.controlled.by.RNG................................... 6

Competitive.advantages.of.the.project...................................... 8

Operating.region..................................................................................... 9

Project.life.cycle...................................................................................10

Oil.production.profile........................................................................11

Field.Summary.......................................................................................13

Field.Facilities.Construction..........................................................14

Company.structure.............................................................................16

Management...........................................................................................18

Investment.Committee.of.the.Board.of.Directors.............20

Agreement.&.Contract.Commission.(ACC)...........................21

Major.contractors................................................................................22

RNGOIL.RU

RNG. is.one.of. the. leading.oil.and.gas.producers. in. the.Far.Eastern.Federal.District.

In. 2014,. the. Company. commenced. active. development.of. the. license. area. designated. Eastern. Blocks. of. the.Srednebotuobinskoye Oil and Gas Condensate Field..In.2018,.RNG. started. test. production.. On. August. 29,. 2019,. RNG.began.commercial.operations.of.the.field.

In.just.five.years,.Company.employees.managed.to.complete.a.huge.scope.of.work.in.field.exploration.and.infrastructure.development..This.was.possible.owing.to.three.key.factors:

•. engaging.major.international.and.Russian.contractors;

•. utilizing.state-of-the-art.innovative.technologies;

•. the. extensive. experience. possessed. by. corporate.leadership. in. implementing. large-scale. oil. and. gas.projects.

The. Company. takes. the. time. to. make. sure. strict. safety.standards.are.complied.with;.it.also.takes.steps.to.protect.the.environment. in.the.Republic.of.Sakha.(Yakutia),.and.makes.sure. that. its. natural. resources. are. utilized. rationally,. with.no. exceptions. allowed. for. compliance. with. environmental.regulations.

The. Company. also. pays. close. attention. to. how. it. interacts.with. the. indigenous. minorities. in. Russia’s. Far. North,. and.takes.efforts.to.preserve.their.national.culture.

RNG,. together. with. its. shareholders. and. investors,. apply.a. . odern,. efficient,. and. responsible. approach. to. organizing.how.work.is.performed,.thereby.providing.for.the.Company’s.sustainable. growth,. the. well-being. of. its. employees,. and..ositive.development.for.the.entire.East.Siberian.oil.and.gas.industry.

The images are the property of RNG and may not be used (displayed, modified, printed, etc.) without asking permission from the rightholder.

On.the.cover:.Central.Gathering.Plant..

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54 RNG / 2020 5MISSION.AND.GOALS

RNG.TODAY

Goals

Mission.Developing.the.fuel.and.energy.industry.in.Eastern.Siberia.

-.Protecting.the.environment.............and.carrying.out.all.social.commitments

-.Developing.human.resources,.contributing.to.employment.and.welfare.in.the.Republic.of.Sakha.(Yakutia).

-.Enhancing.shareholder.value.................and.business.performance.of.RNG

-.Maximizing.efficiency.in.development.of.eastern.blocks.of.the.Srednebotuobinskoye.oil.and................gas.condensate.field

5252..production.wellsproduction.wellscompleted

128128..thousand.metresthousand.metresof.production.drilling.completed

2828..million.tonsmillion.tonsof.oil.reserves.(State.Reserves.Committee.figure,.01.01.2018)

625625..thousand.tonsthousand.tonsof.oil.per.year.(production.capacity.already.launched)

33.thousand.tons.thousand.tonsof.oil.produced.per.day

6464..wellswellsin.operation

7.57.5..billion.roublesbillion.roublescharter.capital

33..wellswellsextended.by.drilling.of.sidetracks

12.512.5..billion.mbillion.m33of.natural.gas.reserves.on.the.statebalance.sheet

1.0000001.000000..thousand.tonsproduced.by.20.01.2020

2.7682.768company.employees.

1.7001.700personnel.at.the.field

4.784.78..billion.roublesbillion.roublestransferred.to.budgets.of.all.levels.and.extra-budgetary.funds.(as.of.January,.01,.2020)

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76 7АО «РНГ» / 2020

Аэрофотосъемка.месторождения

Operating.region.

OPERATING.REGION.

The. assets. of. RNG. are. located. in. Eastern. Siberia,. . a..region. of. great. promise. for. the. future. development. of.the.Russian.oil.and.gas.industry.

The.Srednebotuobinskoye.oil.and.gas.condensate.field.is.one.of.the.largest.fields.in.Eastern.Siberia.by.proven.oil.reserves.

Along. with. developing. the. Eastern. blocks. of. the.Srednebotuobinskoye. field,. the. Company. carries. out.prospecting,.exploration.and.production.of.oil.and.gas.as.an.operator.at.six.licensed.sites.at.other.locations.in.the.Republic.of.Sakha.(Yakutia).

Specific.advantages.of.the.region

. .Access. to. the. East. Siberia-Pacific. Ocean. trunk.pipeline.

. .ESPO.oil.brand.(East.Siberian.light.crude).

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98 RNG / 2020 9

Map.of.licenseareas.controlledby.RNG

MAP.OF.LICENSE.AREAS.CONTROLLEDBY.RNG

- Eastern Siberia-Pacific Ocean pipeline

- TAAS-Yuryakh Neftegazodobycha LLC pipeline

- Power of Siberia pipeline

- projected gas pipeline of RNG

- Sakha Transneftegaz gas pipeline

- year-round roadways

- winter road

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1110 RNG / 2020 11

PROJECTLIFE

CYCLE

19701970

DISCOVERY..OF.THE.FIELD

1

PILOT.PRODUCTION2014.–.20182014.–.2018

2

Drilling.the.projected.number.of.wells..Achievement.of.annual.production.plateau..

Ramping.up.production.to.1.2.million.tons.p/a..

Start.of.pilot.production.in.Q4.2018.

EXPLORATION..AND.CONSTRUCTION

2019.–.20222019.–.2022

3

Exploration.drilling,.reserve.evaluation,.сreation.of.infrastructure.for.annual.production.

of.1.5.million.tons.of.oil..

Oil production profile Oil production profile (thousand tonnes)(thousand tonnes)

QIV 2018

115

141

192

247

∑ = 847 267

QI 2019 QII 2019 QIII 2019 QIV 2019

PROJECT.LIFE.CYCLE

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1312 НАЗВАНИЕ РАЗДЕЛА RNG / 2020 13

RNG.holds.Subsoil.Use.License.No..YaKU.04493.NE.issued.September.3,.2015.for.the.exploration.and.production.of.hydrocarbons.within.the.Eastern.Blocks.of.SB.OGCF..The.license.is.valid.till.December.31,.2117.The.licensed.area.is.385.5.sq..km..

Srednebotuobinskoye.field

Licenсe

Eastern.blocksoverview.

The.Srednebotuobinskoye.oil.and.gas.condensate.field.(OGCF).is.situated. in. Mirny. District. of. the. Republic. of. Sakha. (Yakutia),.130.km.south-west.of.Mirny.and.140.km.north-west.of.Lensk..

Produced. oil. will. be. delivered. to. the. Eastern. Siberia. –.Pacific. Ocean. (ESPO). pipeline. system. in. accordance.with.the.received.tie-in.specification.

The.short-term.plans.call.for.the.completion.and.start-up.of.the.Power.of.Siberia.gas.pipeline,.which.will.run.150.km.from.the.Eastern.Blocks.of.the.Srednebotuobinskoye.OGCF.

85. km. south-west. of. SB. OGCF. is. the. Chayandinskoye. field,. which.is. of. strategic. importance. for. the. creation. of. the. Yakut. center. for. gas.production.and.supply.of.gas.to.China.via.the.Power.of.Siberia.gas.pipeline.

Tectonically,.the.field.is.divided.into.three.large.blocks:.Central.Block,.Northern.Block,.and.Eastern.Blocks..The.field.is.divided.into.four.license.areas.

The. Botuobinsky. horizon. of. the. Vendian. terrigenous. complex.is. a. major. productive. zone. of. the. Srednebotuobinskoye. field,.

spreading.over.the.entire.area.of.the.Central,.Northern.and.Eastern.Blocks..

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1514 RNG / 2020 15FIELD.FACILITIES.CONSTRUCTION

CNG.Filling.Station

Рower.supply.station

The.bridge.over.the.river.Taas-YurekhWater.intake..at.the.Taas-Yurekh.River.(the.effective.foundation.pit.volume.is.500,000.m3)

SB.OGCF.Eastern.Blocks.field.facilities:•. .wellsite.pads;•. .single.wells;•. .integrated.crude.oil.treatment.

site.and.associated.facilities:.crude.oil.treatment.and.transfer.department,.crude.oil.treatment.unit,.CGF,.integrated.gathering.facility,.booster.pump,.booster.pump.with.free.water.knockout.unit,.etc.

Site.preparation.and.land.developmentThe.scope.of.site.preparation.and.land.development.has.reached.3,320.mln.m3,.including:.

•.6.pads.-.837,000.m3;•.14.single.well.pads;•.233,000.m3;•.135.km.of.intra-field.service.roads.

1,307,000.m3;•.CGF,.FSB,.energy.facilities.and.other.

on-site.facilities.-.943,000.m3.

A.bridge.across.the.Taas-Yurekh.River.is.built.to.enable.year-round.traffic.from.Tas-Yuryakh.village.to.the.Lensk-Mirny.federal.highway.

•. .working.fluid.injection.areas.for.reservoir.pressure.maintenance,.including.cluster.pump.stations;

•. .integrated.or.preliminary.gas.and.condensate.treatment.unit.and.related.facilities:.booster.compressor,.condensate.de-ethanizer,.etc.;

•. .intra-field.oil,.gas,.and.condensate.transfer.lines.from.sites.to.pipeline.tie-in.points.(or.to.other.treatment.sites);

•. .auxiliary.facilities.associated.with.the.above.facilities,.such.as:.metering.units,.brine.plants,.oil.sludge.pits,.firefighting.facilities,.water.supply.and.disposal.facilities,.other.process.facilities.supporting.the.operation.of.field.production.facilities;

•. .water.mains;•. water.intake;•. .service.roads;•. .high-voltage.power.transmission.lines;•. .transformer.substations;•. .utility.complex;•. .other.infrastructure.facilities.(landfill,.firefighting.

depot,.construction.camp,.etc.).Pipeline.Cleaning

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1716 RNG / 2020 17

1999-2000:.Deputy.Executive.Secretary.of.the.Russian.Ministry.of.Railways.2004-2010:.Vice-President.of.EUROFINANCE.MOSNARBANK.2010.to.2013:.Director.of.the.Security.Department.of.North-West.Sberbank.2013-2014:.Vice-President.of.Soyuz.Corporation.2014.to.the.present:.First.Deputy.CEO.of.the.Interstate.Development.Corporation.

Member.Alexander.Bondarenko.was.born.in.Sevastopol.in.1972.In.1989.graduated.from.Sevastopol.№3.special.secondary.school.with.a.medal.In. 1994. graduated. from. Saint. Petersburg. State. University. of.Economics. and. Finance. (a. degree. with. honors. in. International.Economic.Relations)..In.1998.he.has.completed.a.postgraduate.course.in.International.Economic.Relations.at.the.same.university.In. 1997. Mr.. Bondarenko. attended. Legal. courses. at. Russian. State.Plekhanov. Academy. and. Russian. Federal. Property. Ministry. and.received.a.license.of.state.representative.in.public.companies.In.2001.defended.his.thesis.at.Moscow.State.Social.University.for.a.degree.of.Candidate.of.Sciences.in.Law.In.2006.completed.Private.Equity.Course.at.London.Business.School.Holds.CIIA.Diploma.(Certified.international.investment.analyst)

From.2014.to.date.Mr..Bondarenko.holds.the.position.of.Chairman.of.Investment.Committee.of.the.Board.of.Directors.RNG.From.2008.to.2016,.he.was.a.Partner.at.Wragge.Lawrence.Graham.CIS.LLP.In. 2008. –. 2013:. Taas‐Yuriach. Neftegasodobycha. (oil. company),.member.of.the.Board.of.directors,.Chairman.of.the.Board.of.Directors.From.2000.to.April.2014.he.held.the.positions.of.Senior.Vice.President,.First.Vice.President.and.Deputy.Chairman.of.the.Management.Board.at.EVROFINANCE.MOSNARBANK.2010.–.2015:.member.of.the.Board.of.directors.at.AK&M.Information.Agency.2005.–.2010:.Board.director.at.PRIME-TASS.Business.News.Agency.1994. –. 1998:. held. the. positons. of. managing. director,. head. of. the.Department. of. Monetary. and. Financial. Operations. in. the. Saint-Petersburg.branch.of.Imperial.Bank.1991.–.1993:.minority.shareholder.and.one.of.the.directors.of.Modern.TV.and.radio.company.

Professional MembershipUnion.of.lawyers.of.Russia,.member.of.the.Expert.Council;Member.of.Association.of.International.Petroleum.Negotiators.(AIPN);Member.of.Chartered.Institute.of.supply.and.procurement.(CISP).and.member.of.Guild.of.Investment.and.Financial.Analysts.(GIFA);Chartered.Institute.of.supply.and.procurement.(CISP).(UK)..

Participation in public lifeMember.of.the.Presidium.of.the.Russian.Jewish.Congress.(RJC)Established. and. funded. on. the. regular. basis. several. student.scholarships.at.The.Russian.Institute.of.Theatre.Arts.–.GITIS.Member.of.the.Friends.of.the.Russian.Museum.International.Society.Member.of.the.Society.of.Friends.of.Tretyakov.Gallery.

Doctoral.Candidate.in.Economics..Distinguished.Geologist.of.the.Republic.of.Sakha.(Yakutia)..Acting.State.Advisor.of.the.Russian.Federation.(2nd.class).Since.1993:.Head.of.the.Regional.Policy.Department,.member.of.the.Board.of.the.Russian.State.Committee.for.Geology.and.Subsoil.Use.(Rosnedra).1996-2001:.Deputy.Minister.for.Natural.Resources.of.the.Russian.Federation.2002:.Appointed.Head.of.the.Russian.Geological.Heritage.Foundation.

Distinguished.Lawyer.of.the.Republic.of.Sakha.(Yakutia).and.Russia..Honored.Worker.of.the.Investigative.Committee.of.the.Russian.Federation..Honored.Worker.of.the.Prosecutor’s.Office.of.the.Russian.Federation.1990-1994:.Prosecutor.of.the.Republic.of.Sakha.(Yakutia).1994-2004:.Deputy.Prosecutor.General.of.the.Russian.Federation.2000:.Additionally.appointed.to.duties.as.Head.of.the.Main.Investigation.Department.of.the.Office.of.the.Prosecutor.General.of.Russia.2004.to.2006:.Advisor.to.the.Prosecutor.General.of.the.Russian.Federation..Awarded.the.Order.of.Honor.

Frederick.Matthew.Thomas.Ponsonby,.born.in.1958..British.peer.(made.a.Lord.on.April.19,.2000).1984.to.1986:.Petroleum.engineer.at.Charterhouse.Petroleum.1989.to.1992:.Senior.petroleum.engineer.at.LASMO.PLC.1994. to. 1998:. Chief. engineer. at. Phibro. Energy,. responsible. for.international.research.and.production.projects..2003.to.2008:.Non-executive.director.at.Emerald.Energy.PLC2013:.Chairman.of.the.Board.of.Directors.of.Yakut.Energy.Limited.(former.shareholder.of.Taas-Yuryakh.Neftegazodobycha.LLC)From.2010:.Chairman.of.the.Board.of.Directors.of.Aladdin.Oil.&Gas.Lord.Ponsonby.also.served.as.Chairman.of.the.Board.of.Directors.and.CEO.of. Rosehill. Energy. Plc,. and. has. been. delegated. to. several. EU. agencies,.including. the. Council. of. Europe. (1997-2001). and. the. Organization. for.Security.and.Cooperation.in.Europe.(2001-2010).Lord. Ponsonby. currently. serves. as. Chairman. of. the. Boards. of. Directors..of.Eastsib.Holding.and.of.its.wholly-owned.subsidiary.RNG.

Frederick.Matthew.Thomas.PONSONBY

Chairman of the Board of Directors

Nikolai.PINCHUKMember.of.the.Board.of.Directors

Alexander.BONDARENKOChairman.of.the.Investment...Committee

Vasily.KOLMOGOROVMember.of.the.Board.of.Directors

Yury.VILOCHKINMember.of.the.Board.of.Directors

BOARD.OF.DIRECTORS

BOARD.OF.DIRECTORS

RNGOIL.RURNGOIL.RU

1918 RNG / 2020 19MANAGEMENT

Alexander.USKOVDeputy CEO,Head of Capital Construction

2002-2007:.Senior.Pipeline.Construction.Engineer.at.Fedorovskneft.(Surgutneftegaz).2007-2012:.Head.of.Technical.Supervision.in.the.Uvat.project.(TNK-Uvat.LLC).2012-2014:.Head.of.a.standalone.sub-division.of.Taas-Yuryakh.Neftegazodobycha.LLC.(Tyumen).

Yuriy.YAKIMOVDeputy CEO, Head of Well Drilling Department

Born.in.1974.in.Sosnogorsk,.Komi.Republic.He.graduated.from.Ukhta.Industrial.Institute.in.1998,.with.a.degree.in.drilling.of.oil.and.gas.wells.He.graduated.from.the.Russian.Presidential.Academy.of.National.Economy.in.2005,.a.degree.in.finance.and.credit..He.worked.as.a.driller.assistant.of.production.and.exploration.drilling.of.the.4th.category.in.OJSC.“Surgutneftegas”.in.1997.2000-2002:.Drilling.mud.engineer.of.the.1st.category.in.“Lukoil.–.Burenie”.LLC.2002-2011:.Drilling.mud.engineer,.technical.supervisor.and.project.manager.in.«Halliburton.Int..Inc».2011:.Chief.technologist,.head.of.chief.process.engineer’s.office.in.UF.“RN-Burenie”.LLC.2011-2012:.Head.of.Drilling.Department.and.Well.Servicing.and.Workover.in.TYNGD.LLC..2012-2014.Head.of.the.Drilling.Integrated.Projects.in.Russia.«Weatherford.Holdings.(RUS)».From.2014:.Head.of.Well.Drilling.Department.in.RNG.

MANAGEMENT

Vladimir.RAKITINCEO, PhD in economics

Born.in.1986.in.Leningrad.He.graduated.from.the.G.V..Plekhanov.Russian.Economic.University.in.2008,.and.has.a.degree.in.Finance.and.Credit.In.2013,.V..Rakitin.defended.his.thesis.to.receive.a.PhD.in.economics.From.2007.to.2010,.he.worked.as.the.Direct.Investment.Project.Manager.at.EVROFINANCE.MOSNARBANK.From.2010.to.2014,.he.was.a.Senior.Tax.Adviser.at.the.Moscow.office.of.Lawrence.Graham.(CIS).LLP.From.2014.to.2019,.V..Rakitin.hold.the.position.of.the.Director.of.Finance.at.RNG.In.2019.V..Rakitin.was.appointed.as.the.CEO.of.RNG.

Evgeny.CHERYKAEVDeputy CEO, Chief Engineer

1998.to.2011:.Oil.and.gas.production.expert,.senior.technologist.at.the.oil.&.gas.production.department,.shift.manager.and.deputy.head.of.the.central.engineering.service.at.Orenburgneft.Mr..Cherykaev.has.worked.as.chief.engineer.at.Taas-Yuryakh.Neftegazodobycha.LLC.

Sergey.NAZAROVDeputy CEO,Chief Geologist

1986-2000:.Posts.at.Nizhnevartovskneftegaz.(subsequently.Tyumen.Oil.Company),.including.Senior.Production.Geologist.and.Head.of.Production.at.Samotlor.Oil.&.Gas.Production.Unit-2.2001-2005:.Chief.Geologist.at.the.Production.Unit.of.Orenburgneft.(TNK-BP).2005-2010:.Deputy.CEO,.Chief.Geologist.at.Chepakovskoye.Oil.&.Gas.Production.2010-2011:.Deputy.CEO,.Chief.Geologist.at.RN-Sakhalinmorneftegaz.LLC2012-2014:.Chief.Geologist.at.Taas-Yuryakh.Neftegazodobycha.LLC.

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2120 RNG / 2020 21

A permanent commission established for the purpose of arranging and holding bids to award contracts for rendering services, performing work, and delivering sellable inventories.

Agreement.&.Contract.Commission.(ACC)

AGREEMENT.&.CONTRACT.COMMISSION.(ACC)

* The Commission is an advisory body of the Board of Directors. ACC resolutions are of an advisory nature.

ACC.Functions:

•. conducts.the.bidder.pre-qualification.process

•. collects,.stores,.and.evaluates.proposals.submitted.by.bidders

•. selects.potential.contractors

•. awards.contracts.or.makes.other.decisions.after.bidding,.submitting.decisions.to.the.CEO.for.approval.

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2322 RNG / 2020 23

KEY.PARTNERS

LOGGING.SERVICES

Udmurtneftegeofizika LLC

OILFIELD.SERVICES

Schlumberger

Baker Hughes

National Oilwell Varco

East-Siberian Engineering Company LLC

Scientific Drilling

PRIMARY.BANK

ROSBANK PJSC

EXPLORATION..AND.DEVELOPMENT.SERVICES

GEOTECH Seismic Services PJSC

INTEGRATED.DRILLING.SERVICES

Halliburton International Inc.

DRILLING.CONTRACTOR

VPT-Neftemash LLC

ESTIMATION.OF.OIL.AND.GAS.RESERVES

DeGolyer&McNaughton

The Center of Scientific Research, Design, Fossil Raw Materials Geology (CNIP GIS LLC)

CONCEPTUAL.DESIGN

ThyssenKrupp AG

DESIGN.&.ENGINEERING

Giprovostokneft JSC

ENGINEERING.SURVEYS

YakutStroyIzyskaniya LLC

NPO VKTB LLC

ROAD.DESIGN

TEKPRO LLC

AUDITORS.(RAS.&.IFRS)

Ernst & Young Ltd.

LEGAL.ADVISORS

Intra Legem Law Firm

Allen & Overy Legal Services

INSURANCE.PARTNERS

SOGAZ JSC

AlfaStrakhovanie Group

ENVIRONMENTAL.CONSULTANTS

INsTITuTe fOr APPLIed eCOLOgy Of The NOrTh

KEY.PARTNERS

CertificateGOST ISO 9001-2011Quality management system

Certificate GOST R 54934-2012 (OHSAS 18001:2007)Health and safety management system

Certificate GOST R ISO 14001-2016 (ISO 14001:2015)Environment management system

MemberAssoneft

Member Russian Unionof Industrialists and Entrepreneurs

Member of the Chamber of Commerce and Industry of the Republic of Sakha (Yakutia)

Member of the US-Russia Chamber of Commerce

Head office in Moscow121099, Moscow, Novy Arbat st. 27. Telephone: +7 (495) 662-71-33 Fax +7 (495) 287-95-18 E-mail: office@rngoil.ru

Office in Moscow129090, Moscow,1st Troitskaya lane 12, building 5. Telephone : +7 (495) 662-71-33 Fax: +7 (495) 287-95-18 E-mail: office@rngoil.ru Office in Yakutsk677007, Yakutsk,Glukhoi lane 2, building 1, Portal business centre, 3rd floor, office 313.Telephone: +7 (4112) 33-50-90 Fax: +7 (4112) 33-50-99 E-mail: office@rngoil.ru

Office in Ust-Kut666780, Irkutsk Region, Ust-Kut, Lugovaya st. building 21/22. Telephone : +7 (495) 662-71-35E-mail: office@rngoil.ru

Office in Mirny678170, Mirny, Tikhonova st. 12, building А. Telephone: +7 (495) 287-95-19

Office in Samara443110, Samara,Lesnaya st. 23, building 100, office 207.Telephone : +7 (927) 761-34-99E-mail: office@rngoil.ru

Office in Lensk678144, Lensk,Pervomaiskaya st. 32, building А, office 1E-mail: office@rngoil.ru

Office in Irkutsk664009, Irkutsk, Shiryamova st. 38/1E-mail: office@rngoil.ru

Member of the Russo-British Chamber of Commerce

Member of the CCI France Russie

Member of the Russian Gas Society