Corporation Management

Management of the NEFTESNAB Group

PJSC NEFTESNAB is a parent company of NEFTESNAB Group. Organization of the management of subsidiaries and affiliated companies is carried out with prevailing participation in the authorized capitals of the mentioned companies through managing bodies of the subsidiary by an appropriate instruction in the founding documents; the Management Companies included in the Group through conclusion of agreements between these companies and other economic entities – members of the Group on the transfer of the Executive Management Board functions to the Management Companies, as well as through other ways provided by the legislation of the Russian Federation subject to equitable interests of all the participants of the Group. Planning and control of business processes by the activities segments are provided for through uniform standards and regulations.


  • single mission and development strategy;
  • transparency of production and financial activities;
  • ensuring equitable interests of all the  members of the Group, as well as other stakeholders;
  • balance of powers and responsibilities distribution at each management level;
  • unified corporate standards valid for PJSC NEFTESNAB, structural divisions, subsidiaries and associates;
  • common mechanisms of corporate management and corporate control;
  • assessment of corporate and industrial risks;
  • effective use of financial, property and other assets and resources;
  • increasing intellectual capacity, including development of the scientific and technological base, strengthening of the corporate brand and  complex of intangible assets;
  • corporate social responsibility.

Planning of financial and business activity

In accordance with changing-over of the state budget formation to a 3Y cycle and within the frames of improvement of the corporate business planning, the Company developed a standard for the system of scenario planning of financial and economic activity of PJSC NEFTESNAB for a 3Y period.
The standard determines the procedure of formation — on the basis of the Company development strategy — of a 3Y forecast for financial and economic activity of PJSC Neftesnab depending on price trends on the oil market. 

Main objectives of the standard:

  • formation of a forecast for financial and economic activity, investment program, and budget of PJSC NEFTESNAB for three years and ensuring predictability of the Company development for the medium-term outlook;predictability of the Company development for the mediumterm outlook;
  • increase in the accuracy of forecasting due to development of scenario options of economic situation development;
  • regulation of the expenses balancing mechanism depending on expected profit and priorities of the Company’s social-and-economic policy for the planned period.

Scenario planning regulates distribution of additional sources of funds — in case of a favorable scenario, and compensation of the budget deficit — in case of worsening of economic conditions. Selection of one of the scenarios is performed on the basis of the output realization price level.

Main areas of distribution or sequestering of the sources are determined in acc. with priorities of the Company's development.

Scenario planning conserves current planning tools of the Company — Cost Savings Fund and Internal Refunding Source.

The scenario planning system is based on formation of a basic forecast for financial and economic activity, developed using conservative approach to selection of the source macroeconomic conditions (unfavorable) and minimization of corporate expenses.

Basic conditions for the 3Y planning of PJSC NEFTESNAB are formed on the basis of:

  • macroeconomic parameters of the economy development for the planned period, accepted by the Ministry of Economic Development of the Russian Federation and Ministry of Finance of the Russian Federation;
  • program for stabilization of oil production.


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