Energy Efficiency Improvement and Environmental Impact Mitigation Policy

The Company is aware of the adverse environmental impact of its operations and finiteness of the Earth energy resources.

Recognizing the steady upward trend of energy resource costs and high energy intensity of oil, gas and condensate production and processing processes, the Company views energy efficiency improvement in all operations as a key factor of its successful development, which is an integral part of business and a contribution to the society’s sustainable development.

The Company in the course of its energy management activities shall be primarily guided by international and Russian power saving and energy efficiency regulatory requirements and other obligations undertaken by the Company.

Values

We value rational use of the Earth’s nonrenewable energy resources for the sake of future generations as much as we value our performance.

Principles

1. Leadership at all management levels
2. Improvement of the energy management system
3. System and process approaches to energy efficiency management
4. Financial and moral motivation of all employees
5. Training, skills upgrading and experience sharing
6. Continuous improvement of current operations
7. Informed decision making; and
8. Supplier and contractor motivation and incentives

Commitments

1. Consistently improve energy efficiency performance and reduce energy consumption at all operating facilities
2. Aim for high performance and integrate energy efficiency issues into the decision-making system at all management levels
3. Define energy efficiency requirements when selecting suppliers and contractors in accordance with this Policy and provide support to them to ensure compliance
4. Develop operations and commission new energy efficient facilities using best international practices
5. Measure energy efficiency performance and assess it against compliance with external and internal requirements
6. Develop commercially, technically and ecologically efficient utilization methods (use and monetization) for oil production by-products to ensure energy efficiency and energy security, and
7. Continuously work to improve energy efficiency and power saving awareness of employees and other people performing work at Company sites or on its behalf.

This Policy shall be implemented through the introduction, continuous development and improvement of the Company energy management system.