Rosneft is a vertically-integrated Russian oil and gas company with upstream and downstream operations in each of Russia’s oil-producing regions. Headquartered in Moscow, compared to public companies it is the world’s second largest company in terms of proved SPE oil reserves and Russia’s second-largest hydrocarbon producer. Rosneft operates ten oil and gas producing enterprises across Russia and is involved in over ten world-class exploration projects. In addition to its strong upstream operations, the Company also owns two refineries, which have a combined capacity of 10 million tons per year, as well as four main oil export terminals and a nationwide network of over 600 service stations. Over the past six years, Rosneft has pursued a strategy of reducing costs, implementing new technologies and developing a highly diverse asset portfolio by exploiting exploration licenses and making promising new acquisitions. The result has been significantly increased oil production, from approximately 260 kb/d in 2000 to over 1.5 mb/d in 2005. The scale of Rosneft’s business was transformed at the end of 2004 following the US$9.3 billion purchase of a controlling interest in Yuganskneftegaz, one of the country’s largest hydrocarbon producers.