OREANDA-NEWS. December 23, 2011. On December 21, 2011 Rosneft Board of Directors met to review key financial and operational results for 2011 and business plan for 2012.

The Board of Directors reviewed the Company’s 2011 expected performance indicators which exceeded 2011 plan:

Oil and gas condensate production is expected to reach 122.5 mln tons exceeding planned amount by 2.3 mln tons and 2010 production by 2.5%;

The increase in oil and gas condensate reserves due to geological and exploration works (without taking into account acquired assets) will amount to 170.7 mln tons exceeding business plan by 26.2%;

The Company’s refinery throughput will amount to 57.9 mln tons which represents an increase of 14.7% year-on-year;

Domestic sales of petroleum products will rise by 5.4% compared to 2010 to 24 mln tons. Retail sales will increase by 16.7% amounting to 6.3 mln tons; and

According to preliminary data, operational income before depreciation is estimated at 636.2 bln rubles and income from ordinary operations is estimated at 404.9 bln rubles (according to RAS) exceeding planned 2011 performance by 43% and 69% respectively.

The Board of Directors also considered and approved 2012 plan for financial and business operations. The business plan for 2012 envisages further increase of Rosneft’s production potential, continuation of the Company’s refineries modernization, application of innovative and high technologies that will provide for business efficiency increase and further cost optimization.

The following is planned in 2012:

Oil and gas condensate production to increase to 124.0 mln tons;

An increase in the Company’s refinery throughput to 64.6 mln tons with a considerable rise in production of gasoline and diesel fuel compliant to Euro-3, 4 standards. This complies with the provisions of the 4-party Agreement between Rosneft, FAS (Federal Antimonopoly Service), Rostechnadzor (Federal Service for Ecological, Technological and Atomic Supervision) and Rostekhregulirovaniye (Federal Agency on Technical Regulating and Metrology);

Investment programme is planned at the amount of 480 bln rubles, with investments in refineries modernization expected to reach 168 bln rubles.

The Board of Directors instructed the management of the Company to continue the refineries modernization and development programme providing for the construction of 47 new units as well as the reconstruction of 10 units. The purpose of the programme is the transition by 2015 to the production of motor fuels compliant with the Euro-5 standard and to increase the Company’s refining depth to 88.5%.

The Board of Directors supported the proposal to develop the aviation fuel business through the creation of the Company’s own network of fuel complexes which will provide additional profits to the Company’s shareholders. The Board of Directors also supported the proposal to acquire 50% of the Fuel Complex of Vnukovo with approval of the preliminary conditions of the potential transaction.

The Board of Directors also considered a number of other matters concerning the operations of the Company including approval of the programme “Improvement of purchasing operations at OJSC Oil Company Rosneft” and the Company's purchasing policy. Realization of this programme will ensure compliance of Rosneft purchasing operations with the new legal requirements of the Russian Federation and will increase the efficiency of the Company's expenditures.