1.3. Milestone events in 2015

Rosneft started oil production in the Arktun-Dagi field under Sakhalin-1 Consortium.

Rosneft closed the transaction involving the acquisition of SANORS Petrochemical Holding. This transaction will boost the development of Rosneft’s own import substitution and satisfy growing internal demand for main polymers and other chemicals with competitive quality and technologies in the Russian market.

As a part of Sakhalin-1 Consortium, Rosneft successfully drilled the world’s longest well in the Chaivo field.

O-14 production well was drilled towards the edge south-eastern tip of the field from Orlan drilling platform. The well has the longest borehole of 13,500 meters with a horizontal section of 12,033 meters.

Rosneft and Pirelli are expanding their marketing cooperation. Their agreement provides for further development of a retail chain selling Pirelli products at Rosneft’s gas stations. The parties also agreed to continue the implementation of the projects involving the opening of Pirelli flagship tyre center in Russia.

The joint venture of Rosneft, Sberbank Investments, and Pietro Barbaro S.p.A. (JV) signed a legally binding framework agreement for the purchase by JV of ship assets from Pietro Barbaro Group in the Russian Federation (100 % in Prime Shipping Group). The purchase of a logistic asset will help Rosneft to strengthen its positions in the cross-river transportation market and improve its operations performance, including oil and petroleum trading results as well as the safety of transportation in tankers.

Rosneft and ChemChina agreed about partnership to supply oil. The contract stipulates the supply of up to 200 thousand tons of oil to the PRC monthly. The contract was signed for a year.

Rosneft closes the transaction involving the acquisition of Trican Well Service Ltd, Russian oil services company. This transaction will boost Rosneft financial and operating performance with regard to oil yield improvement services, downhole scope, and well cementing.

Rosneft and Japan Drilling Co, Ltd (JDC, Japan) signed an agreement for the provision and operation of HAKURYU-5, offshore drilling rig to be used for drilling of exploration wells under Rosneft’s projects in Vietnam. The rig is planned to be used for drilling of two wells at blocks 06.1 and 05.3/11 in the Nam Con Son offshore in Vietnam in 2016.

On September 4, 2015 within the Eastern Economic Forum Rosneft agreed to sell to ONGC Videsh Ltd.15 % of Vankorneft. The transaction shall be closed upon performing the conditions precedent.

Rosneft and ExxonMobil were called winning bidders in the license round in Mozambique. The positive outlook of prospecting in license areas was confirmed by the analysis conducted by the geological services of both companies.

Rosneft agreed to sell 8.99 % in Saras S.p.A. The Company earned over 38 % to the initial acquisition price and sets an example of efficient portfolio management and optimization of Rosneft’s assets.

Rosneft and EGPC signed an oil product supply agreement. Execution of the agreement will allow Rosneft to able to significantly expand its cooperation with Egypt and EGPC and strengthen its positions as a petroleum product supplier in North African markets.

Rosneft sold a 20 % share in Taas-Yuriakh Neftegazodobycha LLC to BPRIL (a BP plc. Group company).The joint venture will continue to develop Srednebotuobinskoye field, one of the largest oil and gas condensate fields in East Siberia. The shareholders shall jointly take steps to create an infrastructure for further exploration and development reserves in the region.

Rosneft produced the second million ton of oil at the North edge of Chaivo field in 14 months upon putting the first well into operation.

In December 2015 Rosneft and Alltech Group completed a joint venture to develop upstream projects in the Nenetsk Autonomous District. Gas monetization is supposed to be performed by means of LNG plant construction. The Company’s share in the joint venture amounts to 50.1 %.

Rosneft sold a 50 % share in Polar Lights Company LLC. The transaction was implemented on the conditions favorable for the Company fully in compliance with Rosneft’s strategy aimed at the optimization of its asset portfolio.

Large-scale retrofit and upgrade were completed at all Rosneft refineries in 2015 driving the Company’s transition to the production of Euro-5 Class gasoline and diesel fuel for the Russian market. The launch of Euro-5 fuel at Rosneft’s refineries was driven by the implementation of a largescale investment program involving refinery upgrades, high professionalism and efficient, well-coordinated efforts of the Company’s specialists.

In December 2015 Rosneft and BP signed a legally binding agreement on Ruhr Oel GmbH (ROG) dissolution under the previously commenced rearrangement of refinery and petrochemical joint venture in Germany. Upon completion of the rearrangement by the end 2016 Rosneft shall become the direct shareholder and increase its share in Bayernoil refinery by 25 % (from12.5 %); in MiRO refinery — by 24 % (from 12 %); in PCK Schwedt refinery — by 54.17 % (from 35,42 %). Rosneft shall also increase its share in Trans Alpine Line (TAL) from 5.5 % to 11 %. BP in turn consolidates 100 % in Gelsenkirchen refinery and in DHC Solvent Chemie solvents plant.

Rosneft and Grupa Lotos S.A. agreed to extend the agreement on oil supply to Poland of December 20, 2013. The updated business terms and conditions stipulate agreement extension for a year (until December 31, 2017) and a supply increase by 300 thousand tons to 2.7 mmt of oil per year.

Rosneft and General Electric signed a program on long-term strategic cooperation development.

The document includes a plan of construction of joint venture ship-building, oil / gas and electrical equipment manufacturing plants to ensure their timely construction and start-up.

On March 9, Rosneft Vietnam B.V., a Rosneft Group company, started drilling exploration well PLDD-1X at the Block 06.1 in the offshore in Vietnam.Under the project Rosneft for the first time will become an international offshore drilling project operator and confirm the Company’s competences for implementing technically challenging complex offshore drilling programs.

On March 16, 2016 a Rosneft subsidiary and Oil India, Indian Oil and Bharat Petroresources consortium signed an s&p agreement for 29.9 % share inTaas-Yuryakh- Neftegazobobycha, LLC. Previously in 2015 Rosneft sold a 20 % share to a ВР Group company. On March 16, 2016 Rosneft and ONGC Videsh.

ONGC Videsh Ltd. signed Memorandum of Understanding regarding cooperation at Vankor field, providing for potential increase in the Indian company share by 26 % of Vankorneft shares and for reviewing potential development of joint operations in sphere of hydrocarbons trading, particularly, signing long-ter oil supply agreements. On March 16, 2016 Rosneft and Oil India, Indian Oil and Bharat Petroresources signed master agreement for acquiring up to 23,9 % of Vankorneft shares by the Indian group of companies. The companies also signed Memorandum of Understanding regarding cooperation at Vankor cluster (Suzunskoe, Tagulskoe and Lodochnoe fields).