Emerson Milenski
Advisor to President
12 th Annual Russian-Norwegian
Oil & Gas Conference
January 20-21, 2014
Tromso, Norway

Information herein has been prepared by the Company. The presented conclusions are based on the general information collected as of the date hereof and can be amended without any additional notice. The
Company relies on the information obtained from the sources which it deems credible; however, it does not guarantee its accuracy or completeness.
These materials contain statements about future events and explanations representing a forecast of such events. Any assertion in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting such statements.
This presentation does not constitute an offer to sell, or any solicitation of any offer to subscribe for or purchase any securities. It is understood that nothing in this report / presentation provides grounds for any contract or commitment whatsoever. The information herein should not for any purpose be deemed complete, accurate or impartial. The information herein is subject to verification, final formatting and modification. The contents hereof have not been verified by the Company. Accordingly, we did not and do not give on behalf of the Company, its shareholders, directors, officers or employees or any other person, any representations or warranties, either explicitly expressed or implied, as to the accuracy, completeness or objectivity of information or opinions contained in it. None of the directors of the Company, its shareholders, officers or employees or any other persons accepts any liability for any loss of any kind that may arise from any use of this presentation or its contents or otherwise arising in connection herewith.

1

The Company’s operating countries
Turkmenistan
Mongolia
Norway
Belarus
Ukraine
Russia
Canada
Germany
Italy
Algeria
Venezuela
VNKhK
Tianjin refinery
China
Vietnam
Gulf of Mexico
UAE
Brazil
Producing fields
Refineries

Upstream and downstream projects in 16 countries (1)

850 licenses (1) for hydrocarbons production in Russia and abroad

11 refineries in Russia and stakes in 7 refineries abroad

A wide network of retail sites in Russia and CIS: 2,439 retail sites (2)
4
Note: (1) including Abkhasia (2) as of 14-Oct-2013. Not including Belarus (41)/ Ukraine (147)

(1)

4,884 kboepd – hydrocarbons production,

4,193 kbpd – oil consumption (2) in 2012
 largest gas producer


5% of global the country’s third

1,356 RUB bln – revenue, 15.3% growth

303 RUB bln – record high EBITDA (3) , 40.9% growth

280 RUB bln – net income (4) , x8 higher

84 RUB bln – free cash flow (5) , more than x2 higher

3 .0 mln t – domestic retail sales, growth by 7.1%
Crude oil production in Q3
40% of the total production in Russia (6)
Refining throughput in Q3
32% of the total refining in Russia (6)
Note: (1) Compared to Q2’13; (2) According to BP Statistical Review; (3) Including the effect of TNK-BP assets revaluation related to previous 2013 periods
(4) Net income includes preliminary gain recognition of 167 RUB bln on revaluation of TNK-BP assets and other effects of revaluation in the total amount of
(30) RUB bln (5) Adjusted for operations with trading securities (outflow of 3 RUB bln in Q2’13), and one-off effect from prepayments under long-term oil supply contracts (26 and 49 RUB bln in Q2 and Q3 2013 respectively) (6) According to CDU TEK
5

Crude oil production in 2009-2013 (on a monthly basis) mln t
18
Brownfields Greenfileds th. m
Production drilling in 2009-2013 (1)
1,377
12
6
3,936
3,373
2,726
2,278
0 jan
2009 may
2009 sep
2009 jan
2010 may
2010 sep
2010 jan
2011 may
2011 sep
2011 jan
2012 may
2012 sep
2012 jan
2013 may
2013 sep
2013

5% оf world’s oil production;
4,884 kboepd in 3Q

40% of Russian crude oil production in 3Q 2013

5.0 $/bbl – the lowest lifting costs for crude oil

205 (2) mln t – 2013 production plan
Note: (1) 100% consolidated entities
(2) incl. TNK-BP from 01/01/13 wells
2009 2010 2011 2012
Launch of new oil wells in 2009-2013 (1)
733
2009
837
2010
1,011
2011
1,126
2012
4,611
9M
2013E
478
1,514
9M
2013E
6

21
Gas
HRR
East

Long-term crude supply contracts on prepayment basis:
 Planning the Company’s investments and business development backed by guaranteed long-term demand

Partnership with major oil traders and end consumers on marketbased pricing terms

Cooperation with partners under the ongoing contracts for crude supply with agreed terms and volumes
Contract with CNPC is the largest crude supply contract to China
•
Supply volume up to 30 mln t annually
• Unprecedented contract duration of 25 years with an option of 5 year prolongation
8

Tax incentives for hard-to-recover reserves
Tax incentives for offshore projects
Gas MET
LNG export liberalization

Decree approved (FL No 213)
 Rosneft accounts for 70% of Russian tight reserves

Bazhenovskaya, Abalakskaya, Tumenskaya formations
 Margin increase by 1.84 times

Decree approved (FL No. 268)
 Rosneft accounts for 40% of prospective resources

Margin will be increased by 2.5 times

Decree approved (FL No. 263), including tax benefits for hard-to-recover Turon gas reserves

Ongoing dialogue with federal government concerning cost accounting of gas transportation via unified system of gas supply for independent gas producers
 Draft law developed by the Russian Ministry of Energy

5 mln t LNG plant in the Far East
9

2

By 2018, 10 major assets will be put into operation in West and East Siberia
Taas-Yuryakh
Production**: > 120 mtoe
Launch: 2013
Messoyakha
Production**: > 195 mtoe
Launch: 2016 Полярное Сияние
Suzun
Production**: > 50 mtoe
Launch: 2016
Белоруссия
Rospan
Москва
Production**: > 390 mtoe
Launch: 2017
Самаранефтегаз
Нягань
Удмуртнефть
Северная нефть
Западно-
Заполярное Ванкор
Береговое
Пырейное
Хадырьяхинское
Губкинское
Пурнефтегаз
Юганскнефтегаз
Кынско-Часельский
ЛУ
Мегионнефтега
Самотлор
Оренбургнефть
Уват
Томскнефть
Production**:
Launch:
Launch:
Tagul
2018
> 125 mtoe
Russkoe
Production**:
2017
Таас-Юрях (35%)
> 175 mtoe
Сахалин-1,3,5
ЛУ Иркутская обл.
Верхнечонское
ЛУ Красноярский край
Lodochnoe
Сахалинморнефтегаз
Production**: > 80 mtoe
Launch: 2017
Активы ГРР
Астрахань Kharampurskoe
Production**: > 155 mtoe
Launch: 2017
Yurubcheno-Tokhomskoe
Production**: > 125 mtoe
Launch: 2017
Kuyumbinskoe
Production**: > 135 mtoe
Launch: 2017
Oil assets Exploration assets Gas projects New major oil projects
*
The slides shows project’s estimated total Capex
** The slides shows estimated total production of oil, gas condensate and gas in tons of oil equivalent
New major gas projects

Distribution of key hard-to-recover reserves in compliance with federal law №213 RF
Moscow
North Caucasian
Federal District
2.3 / 1.4
Republic of Komi
0.3 / 0.3
Yamal-Nenets autonomous district
3.7 / 8.5
Kkanty-Mansiisk autonomous region
280.8 / 502.7
Volgo-Urals
0.7 / 3.8
Tyumen region
34.2 / 129.3
Tomsk region
19.1 / 15.8 Irkutsk region
21.6 / 407.5

Tax incentives to develop tight reserves

Economic effect of reduced MET estimated at RUB 21 bln for 5 years

Optimal logistics: locations in regions with well-developed infrastructure

Partnerships with technology leaders

Contracts with leading OFS companies:

Production potential – 10-15 mln tons per annum
Okhotsk sea offshore
1.5 / 0.3
* Distribution of АВС1 / С2 reserves, mln tons
12

Barents Sea
3 licenses*, partners – Statoil, ENI
Recoverable resources: Oil - ca 2 bln tons
Gas – ca 2 tcm
Kara Sea
3 licenses*, partner – ExxonMobil
Recoverable resources:
Oil - ca 5 bln tons
Gas – ca 8 tcm
Gulf of Mexico
20 licenses, partner
– ExxonMobil
Recoverable resources: Oil - 46 mln tons
Black Sea
2 licenses, partners – Exxon
Mobil, ENI
Recoverable resources: Oil - ca 3 bln tons
 46 offshore licenses with total recoverable resources of 42 bln toe, of which:
• 15 licenses acquired in H1 in offshore locations of the Barents,
Kara, Chukchee and Azov Seas and the Laptev Sea (16.7 bln toe of recoverable resources)
Sea of Okhotsk, Sakhalin-1
Participants – ExxonMobil,
Rosneft, Sodeco, ONGC
Reserves:
Oil
– 218 mln tons
Gas – 465 bcm Sea of Okhotsk
6 licenses, partners –
Sinopec, Statoil INPEX
Recoverable resources: Oil - ca 2 bln tons, Gas – ca 2 tcm
Blocks 5.3/11 and
6.1, Vietnam offshore
Partner –
Petrovietnam
Kara Sea, Laptev Sea,
Chukchee Sea, 7 licenses, partner – ExxonMobil
Recoverable resources: Oil - ca 7 bln tons
Gas – ca 6 tcm

3

Western Arctic
bln toe
Eastern Arctic
bln toe
Russian
Federation
Far East
bln toe
South Region
bln toe
Legend:
- Rosneft projects
- projects with partners
According to DeGolyer & MacNaughton independent audit.

Cooperation with International Partners in the Russian
Offshore
+
Cooperation agreements have been made with the leading international companies that have the greatest expertise in the Arctic and deep-water offshore
Joint development of resources
Key principles of cooperation Seismic work scope and distribution
Rosneft independently
+
1,6
1,9
9,5
4,1
25,0
Contracts attract billions of dollars in investments in exploration (including drilling) on risk terms
 ExxonMobil, Statoil and
Eni will invest not less than $ 14 billion in exploration
Contracts shall retain the government control over natural resources and do not provide that foreign companies will have an interest in the license
Rosneft contracts provide for clear work schedule aimed at fulfilling the license obligations and revealing the potential of the tracts
The partners bring their engineering and managerial experience
Okhotsk Sea
June 2013
2D Seismic
+
+
16
8

Е 2100
Е 2100
Е 2100
Е 2100
Е 2100
Drilling of E&A wells:
- in 2014 ( 2 wells)
- in 2015 ( 7 wells)
Е 2100
- in 2016 ( 8 wells)
Drilling of development wells:
- in 2015-2016 (3 wells)
• Consistent increase in scope of prospecting and appraisal drilling starts from 2014.
• Exploration drilling and new fields coming on stream start from 2015.
• In 2014-2016, prospecting and exploration drilling work will cover West Arctic, Far East and all south seas. Prospecting and appraisal drilling in East Arctic starts from 2019.

Year-round production, shipment and export of oil by tankers from the Kara
Sea will require a system to manage ice conditions
Complicated logistics:
Limited access to supply and support infrastructure
Arctic challenges
High environmental sensitivity:
- Presence of populations of marine mammals and migrating birds
Hard environmental conditions:
Extremely cold winter with long polar night;
Permafrost;
Presence of water ice (wind drift of ice up to 2 kmph);
Limited visibility (less than 500m) due to fog and snowstorm
Wind speed over 15 m/sec.
The research "Kara-Winter 2013" showed that the ice conditions in the waters of the East Prinovozemelsky license areas is significantly harder than expected ("Kara-
Winter 2013").
Technological challenges:
- Designing, construction and operation of vessels, sea platforms, and equipment capable of trouble-free operation in the Arctic conditions;
- Need to implement innovative technologies
To withstand such ice loads, a platform must be stronger and larger than those used in Sakhalin. Combination of sea depths over 150 m and ice load of hammock with a maximum keel draft of 26 m is a very challenging engineering problem to design structures ("Kara-Winter
2013").

Partnership Programs to Ensure Environmental Safety
"Declaration on environment protection and conservation of biological diversity in the exploration and development of mineral resources of the Arctic continental shelf of the Russian Federation"
( signed with ExxonMobil, Statoil, Eni 21.07.2013).
International Murmansk Coordination Center involving the Federal Space Agency, the Ministry of
Transport and the Russian Emergency Ministry for environmental safety
Cooperation agreements with the Russian Emergency
Ministry, the Ministry of Transport and the Federal Space
Agency to be signed soon
"Code of best practices to minimize the impact of human factors in exploration and development of mineral resources on the continental shelf": intension of development, approval and signing of the joint Code with ExxonMobil, Eni, Statoil for accidents prevention in the Arctic
Conservation of biological diversity: intention to perform with partner companies a background investigation of the territory before the work starts in certain areas of the continental shelf of the Russian
Federation, creation of a refill database with a possibility to provide the information to the independent databases including World
Database of Protected Areas, UNEP-WCMC Proteus 2012, compliance with the principles of the of the Convention on Biological
Diversity, Rio de Janeiro, 05.06.1992

Ensuring Sustained Cooperation of the Company with
Non-Governmental Conservation Organizations
• Since 2008, the company collaborates with the Russian
Bird Conservation Union for birds monitoring in the wetlands, in the zone of influence of the Company's assets as part of initiatives to support the Convention on
Wetlands of International Importance Especially as
Waterfowl Habitat, as adopted in 1971 in Ramsar (Iran).
• From 2013, the company is a member of the non-profit partnership Russian National Committee for the United
Nations Environment Program
• On 21.06.2013, representatives of the Company and WWF
Russia signed a Protocol of Intent to conduct a constructive dialog in the area of environmental protection, including protection of polar bears and other wildlife in the Arctic. Consolidated action road map is under development.

4

Upstream

Stabilizing brownfield production

Pilot projects to develop tight reserves

Preparation to launch
Yamal projects in 2016-
2019

Preparation for exploration and prospecting drilling on the continental shelf
Downstream

Developing an updated marketing strategy and portfolio review

Launching 2 nd phase of Tuapse refinery upgrade
Gas Business

Increase in APG utilization rate: Vankor,
Kharampur, Orenburg,
Uvat

Pilot projects for the development of
Turonian deposits

Developing LNG production project in the Russian Far East

Development of the largest gas fields.
Projects: Rospan,
Kharampur, KClb 1 ,
Vankor
International
Projects

Developing projects in Venezuela

Optimizing the international assets portfolio

Progressing projects in US Gulf of Mexico,
Canada, Norway,
Brazil and Vietnam
Health, Safety and Environment is an unconditional priority
22
1 Kynsko-Chaselsk license block

1
2
3
4
The unique nature of the Arctic development is due to complexity of the offshore projects, climatic conditions and sensitivity of ecosystems.
The Russian offshore development program is a critical strategic task of the Government. This is not only a new step in the development of the oil and gas industry, but also a new step in the re-industrialization of the country.
Rosneft as a leading public Company is aware of the importance of this program and the importance of preserving ecosystems in the Arctic.
Rosneft and its partners understand their responsibility for ensuring industrial and environmental safety and occupational health in the Arctic and are ready to implement a comprehensive strategy to address these challenges.

Contact details
26/1 Sofiyskaya Embankment, Moscow 117997
Russia
Phone: +7 (495) 777-44-22
Fax: +7 (495) 777-44-44
E-mail:postman@rosneft.ru
11.02.2014