OREANDA-NEWS. August 7, 2012. At the scheduled meeting held on July 31, the Board of Directors of JSOC Bashneft discussed the implementation of the Group’s functional strategy for managing oilfield service organizations and made a number of decisions on establishing an oilfield service holding company.

The Board of Directors approved the structure of the oilfield service holding company being established on the basis of the Group’s subsidiary LLC Bashneft-Service Assets. Initially, the holding company will include eleven oilfield service organizations having market potential for development. These organizations provide five types of services: drilling, current and major workover of wells, manufacture of oilfield and mechanical equipment, as well as transport and construction.

As part of forming the holding company, the Board of Directors approved a number of transactions. As a result of these transactions, LLC Bashneft-Service Assets will have a controlling stake in the following oilfield service organizations:

LLC Bashneft-Bureniye;

LLC Ufimsky Administration of Underground Workover;

LLC Bashkirsky Branch of Well Workover;

LLC Oktyabrsky Plant of Oilfield Equipment;

LLC Neftekamsky Plant of Oilfield Equipment;

LLC Department of Motor Vehicles of Bashneft;

LLC Oktyabrskoye Administration of Utility Vehicles;

LLC Arlanskoye Administration of Utility Vehicles;

LLC Arlanskoye Administration of Maintenance of Site Access Roads;

LLC Transkhim;

LLC Yanaulskoye Administration of Neftestroymontaj.

As has been reported before, it is planned to divest the enterprises comprising the oilfield service holding company of JSOC Bashneft to develop the competitive environment, which complies with international practice within the industry.

The Board of Directors also considered a number of issues related to improving the Group’s organizational structure and approved several major transactions related to the current operations.

The Board of Directors terminated the authority of Ali Uzdenov, the First Vice President for Refining and Commerce and member of the Management Board of JSOC Bashneft, due to his transfer to another job.

The Board of Directors approved the candidacy of Maxim Andriasov, Bashneft’s Vice President for Regional Sales, for the position of the First Vice President for Refining and Commerce and assigned him to the Management Board from the date of termination of Ali Uzdenov’s authority.

Note. Maxim Andriasov was born on June 2, 1974. He graduated from Gubkin Russian State University of Oil and Gas as mining engineer in 1997. In 2012, he graduated from INSEAD Business School ("Building world-class companies" educational programme).

In 1996–1998, M.Andriasov worked in banking, and from 1998, he was the employee of OJSC Tyumenskaya Neftyanaya Kompaniya (TNK), where he also held the positions of Deputy Head of Petroleum Products Marketing Department of OJSC Trading House TNK and the Director of Marketing and Sales Department of OJSC TNK-Ukraine. In 2002–2003 M.Andriasov was the Director for Oil Refineries Management of OJSC Sidanko.

From 2003, he worked for TNK-BP Oil Company, where he was the Deputy General Director for Development of CJSC Petrol Complex Equipment Company network in 2004–2005. In 2005–2008, he headed OJSC TNK-Stolitsa, and in 2008–2010, he was the General Director of Karcher Joint Venture that manages TNK-BP retail network in Ukraine. In 2009–2010, M. Andriasov was the director of TNK-BP Zapad in the Republic of Belarus. In 2010–2012, he headed the Performance Unit South-East of TNK-BP. Since May, 2012, M. Andriasov has been the Vice President for Regional Sales of JSOC Bashneft.