Personnel management and corporate culture

Zarubezhneft JSC is implementing its personnel policy as per the JSC Zarubezhneft Group of Companies 2014-2019 PERSONNEL POLICY.

MAIN DIRECTIONS OF PERSONNEL POLICY

• Establishment of an efficient remuneration system and social package;
• Development of a personnel reserve and a personnel rotation system;
• Improvement of personnel selection and adaptation quality;
• Improvement of performance results at all levels, employee training and career development;
• Establishment of an efficient corporate culture and its continuous development.

PERSONNEL STRUCTURE AND HEADCOUNT

In 2018, Zarubezhneft JSC Group of Companies had an employee headcount of 12,681 persons, which was 4% less than in 2017. In general, the average headcount of the Zarubezhneft JSC Group of Companies tends to be decreasing due to the ongoing headcount optimization measures being implemented in the Group of Companies: the headcount decrease was 5.5% in the "Service and Other Assets" segment, 4.5% in the “Upstream” segment and 2.1% in the "Downstream" segment.

The “Upstream” segment remains the priority development direction of Zarubezhneft JSC Group of Companies. In 2018, this segment accounted for 68% of all personnel of the Group.

82% of the Group’s headcount are men. This is because oil production requires carrying out operations at remote fields, rotational work, as well as a significant share of physical labor.