Long-Term Development Programme

The Long-Term Development Programme of Transneft (hereinafter also referred to as “LDP”) was authorised by the resolution of the Board of Directors of Transneft in 2014 Minutes No. 3 as of 19 November 2014.. It specifies the lists of means and specific measures to ensure the achievement of strategic development goals of Transneft, defined in the Strategy, within the set deadlines, with indication of the level and sources of their financing. The LDP indicates the current and expected performance of Transneft till 2023.

Measures as per LDP
Development and upgrading
  • Increasing the capacity of oil and petroleum products trunk pipelines to provide for transportation of the volume of crude planned to be extracted by oil companies both from fields currently being used and from prospective fields. The increased capacity will also ensure transportation of planned volumes of petroleum products from currently operating and new refineries
Innovations
  • Developing innovative operational activities
Efficiency
  • Raising energy efficiency by taking energy saving measures
  • Implementing a programme for cutting pipeline construction and operation costs
  • Ensuring labour productivity at the level of best overseas pipeline companies
Reliability
  • Ensuring reliability of the operated oil and petroleum products trunk pipelines system by revamping it based on the results of fixed assets diagnostics and modernisation
  • Developing benefits for the Company’s employees
Environmental and Industrial Safety
  • Raising the level of environmental and industrial safety at the Company’s operational facilities
External and Internal Communications
  • Shaping the corporate identity and promoting the Company’s unified brand
  • Providing advertising support of the Company’s activities in the external environment
  • Shaping and developing an intra-corporate communications system

Audit of the Transneft Long-Term Development Programme Implementation

KPMG has performed an audit of Transneft’s LDP implementation in 2018, providing its Opinion. Based on the results of auditing procedures, the Auditor believes that the Report on the Long-Term Development Programme implementation in 2018 has been prepared in all material respects in compliance with the requirements of the applicable laws, standards, regulatory methodological instructions and recommendations, as well as Transneft’s internal regulations, and does not contain any significant deviations.

Changes in the Strategy and the Long-Term Development Programme

The LDP the corrected LDP was approved by the Transneft Consumer Council and coordinated with the Ministry of Energy and the Ministry for the Development of the Russian Far East and Arctic. It was also approved by the Transneft Board of Directors on 27 December 2018 (Minutes No. 22). was duly updated in 2018. The following changes were made.

  • To prolong the LDP up to 2022 as per the Methodological Recommendations on the Creation of Long-Term Development Projects by Joint-Stock Companies and Federal State Unitary Enterprises, as well as by Public Joint-Stock Companies, Whenever the Aggregate Share of the Russian Federation in the Authorised Capital of Such Companies Exceeds 50%.
  • To adjust the Development, Technical Upgrading and Revamping Programme for Transneft Trunk Pipeline Facilities, which is in the LDP.
  • To adjust the indicators of energy consumption, productivity of labour, anti-terror security and financial and economic performance.
  • To adjust the Transneft Corporate Import Substitution Plan included in the LDP.