PJSC Rosneft Oil Company held its Annual General Meeting of Shareholders (AGM) in person for the first time in seven years. The venue chosen for the event was the city of Bolshoy Kamen in the Russian Far East, home to the Zvezda Shipbuilding Complex, a strategic project for the Company.

Igor Sechin, Chief Executive Officer of Rosneft, addressed shareholders with a report detailing the Company's operational results for 2025.

FLAGSHIP OF TECHNOLOGICAL INDEPENDENCE

Igor Sechin noted that the selection of Bolshoy Kamen as the venue for the AGM was no coincidence: Rosneft is the operator of the Zvezda Shipbuilding Complex located here—a pioneer in the construction of technically complex civil vessels.

He highlighted that the facility is Russia’s first large-capacity shipyard, which not only strengthens the industry’s industrial capabilities, but also serves as a key link in achieving import substitution targets.

The development of Zvezda directly ensures the nation's technological autonomy in creating critical infrastructure for Arctic projects.

The head of the Company recalled that in 2025, the shipyard delivered to the customer the lead ARC 7 ice-class LNG carrier tanker Alexey Kosygin, which is capable of independently negotiating ice over two metres thick. With a capacity exceeding 170,000 cubic metres of liquefied natural gas, the vessel is equipped with unique steerable propellers manufactured at the Sapphire plant.

Last year also saw the delivery of the dual-fuel tanker Ivan Aivazovsky, with a cargo capacity of 50,000 tonnes, which became the lead vessel in a new series of ice-class product tankers.

At the end of 2024, the first Arctic shuttle tanker, Valentin Pikul, with a deadweight capacity of 69,000 tonnes, was handed over to the customer. Thanks to its high ARC6 ice class, the shuttle is capable of navigating independently without icebreaker support in ice conditions up to 1.7 metres thick.

Igor Sechin stressed that since 2020, Zvezda has delivered nine vessels to customers, including five Aframax dual-fuel crude oil tankers, while the shipyard’s current order book exceeds 50 units.

DEVELOPMENT OF THE NORTHERN SEA ROUTE AND METALLURGICAL CLUSTER

Special attention in the report was paid to logistical risks in the Middle East. As Igor Sechin noted, these developments clearly demonstrated the need to build out alternative routes, among which the Northern Sea Route plays a pivotal role.

"Against this backdrop, the strategic role of Zvezda, which is capable of building modern icebreakers, ice-class tankers, and gas carriers, increases dramatically," Sechin said.

The Head of Rosneft also reported that construction of the Primorsky Metallurgical Plant is underway adjacent to the shipyard. The plant will be fully integrated into the shipbuilding cluster’s structure, with a designed capacity of 1.5 million tonnes per year. The enterprise will produce large-format steel plate and large-diameter pipes. The project will create over 3,800 jobs and provide a strong boost to the economic development of the Primorsky Territory.

ROSNEFT: STABILITY MIDST TURBULENCE

Presenting to shareholders the Annual Report approved by the Board of Directors, Igor Sechin characterised 2025 as a year of serious trials for the sector.

In his words, a global market surplus, stringent macroeconomic conditions, natural monopoly tariff increases outstripping inflation, and unprecedented sanctions pressure created challenging operational conditions for the Company.

Military conflicts and their consequences—specifically restrictions on shipping through the Strait of Hormuz—are exerting additional pressure on the industry heading into 2026.

Under these circumstances, the Company focused its efforts on enhancing operational efficiency and cost optimisation, as well as the continuous monitoring and ranking of its project portfolio.

Rosneft not only maintained its resilience, proving the reliability of its business model once again, but also continued the systematic implementation of strategic initiatives.

"Following the results of 2025, Rosneft remained second in the world in hydrocarbon production among public companies," Igor Sechin stated. Production in liquid equivalent in 2025 amounted to 247 million tonnes of oil equivalent (toe). "We remain Russia’s largest oil company, producing nearly 40% of Russian crude. Rosneft’s share of Russian refining accounts for around 30%, and our filling station network is the largest in the country," added the head of the Company.

Gas production volume in the reporting year stood at 79.6 billion cubic metres, which was lower than the 2024 figure due to scheduled maintenance across key assets, as well as adherence to the OPEC+ agreement. However, following the completion of these works in Q4 2025, gas production rose by 4% year-on-year and continued to grow in Q1 2026.

Commenting on current market conditions, the head of the Company noted that the crisis in the Strait of Hormuz demonstrated the impossibility of making even short-term forecasts, given that political factors are becoming fundamental.

"At the start of the acute phase of the conflict, we urged market participants not to overestimate the effect of rising prices on revenues, and to continue using conservative macroeconomic assumptions during planning. From our perspective, this approach has proven its worth," noted Igor Sechin.

The head of the Company also spoke about Rosneft’s leading position in resource base development. In 2025, 6 new fields and 112 deposits were discovered, containing hydrocarbon reserves exceeding 250 million toe. Reserve replacement of production reached 122%. "At the same time, unlike many international competitors, the Company’s reserve life extends nearly half a century ahead," he added.

Igor Sechin highlighted the creation within the Company of a highly efficient drilling business with an active fleet of 340 drilling rigs of various capacities in mobile and heavy-cluster configurations. "This is nearly a third more than the total number of rigs across the entire Permian Basin in the US," he noted.

Sechin explained that hydraulic fracturing (fracking) remains one of the main tools for production stimulation in horizontal wells. According to him, in the reporting year, the share of horizontal wells with multi-stage hydraulic fracturing reached almost half of all newly commissioned wells.

In 2025, one of Rosneft’s largest production assets, Samotlorneftegaz, set an industry record by executing a 40-stage hydraulic fracturing job within 24 hours for the first time. Yuganskneftegaz completed a 30-stage hydraulic fracture creating 116 fractures with the injection of 9,000 tonnes of proppant, achieving one of the highest initial production rates from hard-to-recover oil reserves over the past 10 years. Meanwhile, Orenburgneft implemented a pilot high-volume hydraulic fracturing project at the Tarashchanskoye field in 2025, setting a regional record injection volume of 100 tonnes of proppant per operation.

"Thanks to the application of innovative technologies at Rosneft, the average flow rate of new wells in 2025 was 17% higher than the Russian industry average; by the end of Q1 2026, it rose to 53 tonnes per day—representing the Company's highest figure in 10 years and exceeding the Russian average by 31%," reported Igor Sechin.

EFFICIENCY OF SAKHALIN-1

The head of Rosneft commended the performance of the Sakhalin-1 project, where, following the departure of former operator ExxonMobil and foreign contractors, Rosneft stepped in to assume control during a near-emergency situation in accordance with a Decree of the President of Russia. The Company swiftly restored the project's production and export operations and resumed gas supplies to the Khabarovsk Territory.

In 2023, the Company drilled the world’s second most complex well by difficulty index at the Odoptu-More field. In 2025, a new offshore feature was brought online—the Odoptu South Dome—achieving record initial well flow rates of up to 2.6 thousand tonnes per day. In 2026, active simultaneous drilling commenced across all three project fields.

Thanks to the efficient actions of the Company’s specialists, Rosneft not only preserved over three thousand jobs, but also exceeded the planned production targets set by the previous operator by 20%.

KEY PROJECT: VOSTOK OIL

Igor Sechin noted that active construction continues on the main facilities of the Vostok Oil project, including the Sever Bay Port oil terminal, oil pumping stations, and a custody transfer metering point with a tank farm.

Construction of an oil pipeline with a total length of 790 km is nearing completion. The commissioning of the first phase of the Sever Bay Port terminal is planned.

DIGITALISATION AND TECHNOLOGICAL SOVEREIGNTY

In its operational activities, Rosneft places special emphasis on digital and technological transformation. Igor Sechin noted that Rosneft views digital technology not as a secondary support service, but as one of the primary drivers of efficiency growth.

"Through our technology, real-time collection and monitoring of over 85% of all the Company's operational parameters is already ensured, including: 100% of drilling rig data, 96% of active well fleet operations, 98% of refinery units, and 62% of electricity meters. This aligns with global best practice established by our Western partners," said the head of Rosneft.

The deployment of unified platform solutions and artificial intelligence across business processes is already delivering measurable results: in the first four months of 2026, the economic impact reached 44 billion roubles, with plans to surpass the 100 billion rouble mark by year-end.

Furthermore, the Company is the only producer in Russia completely self-sufficient in a full range of catalysts for high-octane petrol production, reducing import dependence from 90% to zero over five years.

SHAREHOLDER INTERESTS ARE THE TOP PRIORITY

In conclusion, the head of Rosneft emphasized that despite external pressure, the interests of shareholders remain an unwavering priority for the Company.

An eightfold-plus increase in private investors over the last five years to nearly 1.7 million individuals represents a record metric among major companies on the Russian stock market, serving as the strongest validation of the Company's strategic direction.

Report on the First Item on the Agenda of the Annual General Meeting of Shareholders of PJSC Rosneft Oil Company: “Approval of the Company’s Annual Report”

Department of Information and Advertising
Rosneft Oil Company
June 19, 2026