Information about the non-core asset disposition program of ZARUBEZHNEFT JSC

In pursuance of the requirements set forth in Decree No. 596 of the President of the Russian Federation dated May 7, 2012, as well as Decree No. 894-р(r) of the Government of the Russian Federation dated May 11, 2017 “On Identification and Sale of Non-Core Assets”, in 2019, Zarubezhneft JSC took measures on disposition of the non-core assets possessed by Zarubezhneft JSC.

The measures on sale of the non-core assets were taken on the basis of the documents approved by the Board of Directors of Zarubezhneft JSC, as follows:

  • Non-Core Asset Disposition Program (Minutes No. 145 of the BD meeting dated November 27, 2017);
  • Register of Non-Core Assets (Minutes No. 166 of the BD meeting dated March 29, 2019);
  • Plan for Sale of Non-Core Assets (Minutes No. 166 of the BD meeting dated March 29, 2019).

In total, as of the end of 2019, 49 non-core assets were sold for a total amount of over 28.5 MM RUB (48 assets were sold through competitive bidding at public auctions and 1 non-core asset was liquidated).

Information about Sales of Non-Core Assets for 2019
Item No. Asset name Asset inventory number (if applicable) The balance sheet line the asset was recorded under on the reporting date prior to the sale of the asset Balance value of the asset (thous RUB) Actual sales value (thous RUB) Deviation of actual cost of sales from the asset balance value (thous RUB) The reason for the deviation of actual cost of sales from the asset balance value
1 Track-type snow/marsh vehicle ZVM 2411GP Uzola 004075 1150 0 331 + 331 Sold by auction
2 Tank semi-trailer NEFAZ (AE020373) 00000236 1150 0 57 + 57 Sold by auction
3 Tank semi-trailer NEFAZ (AE020273) 00-000319 1150 0 61 + 61 Sold by auction
4 Special-purpose bus, GAZ VM-3284 769 1150 169.3 169.3 0 Sold by auction
5 Motor vehicle UAZ-390945-360 00-000394 1150 0 29 + 29 Sold by auction
6 Motor vehicle UAZ-390995 E251MO73 000-00000-000427 1150 131.7 132 + 0.3 Sold by auction
7 Cable winding machine (trailer unit 8341(4333US73)) 00-000318 1150 84.7 92 + 7.3 Sold by auction
8 Hyundai IX 35 351 000-00000-000491 1150 0 750 + 750 Sold by auction
9 Ford Cargo 901 00000271 1150 1,031.6 1,031.6 0 Sold by auction
10 Ural PPU 344 00000012 1150 0 255 + 255 Sold by auction
11 Ural-ADPM 346 00000010 1150 0 185 + 185 Sold by auction
12 FORD CARGO 709 00000229 1150 643.4 668 + 24.6 Sold by auction
13 UAZ-120290 763 00-000394 1150 88.5 93.5 + 5 Sold by auction
14 GAZ 2705-505 00000180 1150 0 42 + 42 Sold by auction
15 Kamaz 65116-62-418 101264 1150 229.6 570 + 340.4 Sold by auction
16 Bus Peugeot 591 101316 1150 0 585 +585 Sold by auction
17 UAZ-390945 695 101203 1150 0 80 + 80 Sold by auction
18 Chevrolet Niva 697 101372 1150 0 260 + 260 Sold by auction
19 Lowboy ChM ZAP 0201 00000088 1150 0 130 + 130 Sold by auction
20 KAMAZ 53504-46 779 00-000309 1150 466.7 880 + 413 Sold by auction
21 VAZ LADA 4х4 2131 A313TP73 00000273 1150 0 70 + 70 Sold by auction
22 UAZ Patriot, with cargo box, 390 000-101389 1150 227.2 267.2 + 40 Sold by auction
23 Honda СR-V (Amer.) 181 101326 1150 0 805 + 805 Sold by auction
24 GAZ articulating crane 335 00000048 1150 0 305 + 305 Sold by auction
25 Honda CR-V 877 101248 1150 0 315 + 315 Sold by auction
26 Mitsubishi Pajero 817 101178 1150 0 605 + 605 Sold by auction
27 Heavy-duty semi-trailer 0917 101329 1150 274 395 + 121 Sold by auction
28 KAMAZ 65116 tractor 374 101251 1150 132 260 + 128 Sold by auction
29 Vacuum truck AKN (OSR; Oil Spill Recovery), on undercarriage, KAMAZ 284 000-101427 1150 1,341 1,595 + 254 Sold by auction
30 Steam generating unit, on undercarriage, KAMAZ 43118-15 101200 1150 0 935 + 935 Sold by auction
31 Suzuki Grand Vitara 313 00000253 1150 0 465 + 465 Sold by auction
32 Toyota Avensis 619 У(U) 619 УР (UR) 199 1150 0 670 + 670 Sold by auction
33 Toyota Avensis 380 000у(u)380вн(vn) 199 1150 0 556 + 556 Sold by auction
34 Toyota Avensis 156 Н(N)156КР(KR)197 1150 0 693 + 693 Sold by auction
35 Opel Insignia 612 000-01409 1150 0 419 + 419 Sold by auction
36 Skoda Octavia (A32-M-840) А(A)32-М(M)-840 143100 96 339.5 + 243.5 Sold by auction
37 Skoda Octavia (A24-O-374) А(A)24-О(O)-374 143100 0 293.4 + 293.4 Sold by auction
38 Toyota Avensis У(U) 620 УР(UR) 199 1150 0 616 + 616 Sold by auction
39 Toyota Avensis У(U) 621 УР(UR) 199 1150 0 614 + 614 Sold by auction
40 Bus Mercedes 2008 0041514 143100 551 1,372 + 821 Sold by auction
41 Bolster-type haulage tractor MAZ, E368MO73 000-00000-000442 1150 1,500 640 –860 Sold by open auction (the sale below the balance value was approved by the BD of Zarubezhneft JSC, Minutes No. 166 dated March 29, 2019)
42 Cementing truck TsA-320, with pump TsN-26-32, on undercarriage, Е911MO73 000-00000-000508 1150 1 429 2,053 +624 Sold by auction
43 Tractor with dozer blade attachment B10M. 101371 1150 562 805 +243 Sold by auction
44 Bolster-type haulage tractor MAZ No. E367MO73 000-00000-000444 1150 1,500 700 –900 Sold by open auction (the sale below the balance value was approved by the BD of Zarubezhneft JSC, Minutes No. 166 dated March 29, 2019)
45 Health complex, bathhouse/sauna, 27 km. 64420 1150 11,687 5,662 –6,025 Sold by open auction (the sale below the balance value was approved by the BD of Zarubezhneft JSC, Minutes No. 166 dated March 29, 2019)
46 Bolster-type haulage tractor MAZ-6430V9-1420-010 00-000351 1150 1,041.8 535 –506.8 Sold by open auction (the sale below the balance value was approved by the BD of Zarubezhneft JSC, Minutes No. 166 dated March 29, 2019)
47 Semitrailer MAZ АЕ02-07 00000064 1150 0 48 +48 Sold by auction
48 URAL 4320 ATs10 01S389 AS 00000019 1150 0 181 +181 Sold by auction
49 Arktik Drilling Limited Inc.
(18% of the authorized capital owned by AMNGR LLC)
- 1170 Not applicable Not applicable Not applicable Non-core asset was liquidated

In order to structure the sale of non-core assets, Zarubezhneft JSC approved the Regulations on the Organization of Sale of Non-Core Assets of Zarubezhneft Group (Order No. 127 dated May 17, 2017), which provides for a detailed and phased way of sale of the non-core assets through competitive procedures subject to the requirements of the legislation of the Russian Federation, as follows:

  • Stage 1: Holding auctions/tenders;
  • Stage 2: Sale by public offering;
  • Stage 3: Sale with no price declared;
  • Stage 4: Preparation of further proposals for sale of non-core assets (in the event if the above 3 stages have not identified a purchaser, a range of proposals will be prepared for possible transfer of the non-core asset for rent or pledge, gratuitous transfer thereof, etc.).

Reports on sale of non-core assets across Zarubezhneft Group were considered quarterly at the meetings of the Board of Directors of Zarubezhneft JSC.