Gazprom

Gazprom PJSC is an oil and gas company in which the Russian government is a majority shareholder. The company is a major gas supplier to European countries, with gas pipelines throughout Western Russia that extend into Europe. Although its oil segment is a smaller portion of the company's revenue, the company is also involved in the production, processing, and refinement of crude oil and refined products. Across both segments, the Gazprom produces its oil and gas from fields distributed around Russia, with end markets consisting mostly of Europe and Russia.

Gazprom overview video

Gazprom is the largest supplier of natural gas to Europe and Turkey and holds the world’s largest natural gas reserves. The company’s share in the global and Russian gas reserves amounts to 16 and 71 percent respectively, and it operates the world’s largest gas transmission system, the total length of which extends 175.2 thousand kilometers within the boundaries of Russia. Gazprom sells over half of its gas to Russian customers and exports gas to over 30 countries within Europe and beyond.

Photograph showing the Zapolyarnoye gas field, a natural gas field located in the Yamalo-Nenets Autonomous Okrug.

In addition, Gazprom is one of the largest producers and exporters of liquefied natural gas (LNG) in Russia and is among the top four oil producers in the country. The company also owns power-generating assets that constitute approximately 16 percent of the total installed capacity of Russia's national energy system, and has the highest output of thermal energy generation in the country. Moreover, the company uses green technologies along the entire production chain and has the lowest carbon footprint among major oil and gas companies.

As of December 31, 2020, Gazprom's A, B1, and C1 hydrocarbon reserves amounted to 33,574.5 billion cubic meters of gas, 1,494.4 million tons of gas condensate, and 2,023.8 million tons of oil, achieving a total production of 11 percent of the global gas output. In 2020, Gazprom extracted 453.5 billion cubic meters of natural and associated gas, 16.3 million tons of gas condensate, and 41.6 million tons of oil.

Gazprom is engaged in expanding its petrochemical production, improving the extraction of valuable components from natural gas, and increasing the output of advanced processing products. In 2020, the company processed 30.6 billion cubic meters of associated gas and 53.7 million tons of oil and gas condensate.

Gazprom replenishes its resource base by carrying out geological exploration in Russia and abroad and through the continuous monitoring of new projects and suitable purchasable assets. The main goals of the geological exploration undertaken by Gazprom are to replenish the extracted hydrocarbons with commercial reserves and to prepare the feedstock base in regions with a potentially high output of gas. The growth rates of the company’s natural gas reserves have been surpassing the production rates since 2005, and in 2020, the reserves replacement ratio for natural gas measured 1:1.

Ekaterina drilling rig performing geological exploration in Yamal Peninsula

Gazprom operates in nearly all of Russia’s regions that have petroleum and gas deposits. In 2020, the company allocated a budget of RUB 90 billion for the geological exploration of domestic hydrocarbons. Throughout 2020, the additions in A, B1, and C1 hydrocarbon reserves as a result of geological exploration in Russia measured:

• 486.3 billion cubic meters of natural gas
• 17.2 million tons of gas condensate
• 9.5 million tons of oil

In 2020, Gazprom discovered three new fields: 75 Years of Victory, a gas field located on the Arctic shelf in the Kara Sea; the Solkhem oil field in the Khanty-Mansi Autonomous Area – Yugra; and the Tsentralno-Uranskoye oil field in the Orenburg Region, as well as 22 new deposits at the fields discovered earlier in the Yamal-Nenets Autonomous Area, the Khanty-Mansi Autonomous Area – Yugra, the Arctic shelf in the Kara Sea, and the Tomsk Region.

In 2020, Gazprom carried out geological and geophysical exploration in the Commonwealth of Independent States (CIS), Europe, Southeast Asia, Africa, Middle East, and South America. The investment in geological exploration projects abroad amounted to RUB 3.1 billion in 2020.

In June 2011, the Gazprom Management Committee approved the Gas Industry Mineral Resource Base (MRB) Development Program until 2035. This program has as its aim improvements in replenishment of the mineral resource base with due consideration of the changes in the reserve structure and the move of gas production centers to the following regions: the Yamal Peninsula, Eastern Siberia, the Far East, and the Arctic shelf. It is estimated that the program will result in the production of an additional 20 billion tons of fuel equivalent between 2011 and 2035.