PJSC Gazprom: structure, branches, board of directors

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Gazprom Corporation is one of the largest players in the Russian and global economy. How is the corporate governance structure organized? In which cities does Gazprom operate?

Company overview

Before considering what constitutes the organizational structure of Gazprom, let's study the basic information about the company.

Gazprom is traditionally regarded as a global energy corporation. Its main activities:

- mineral exploration;

- fuel extraction;

- gas transportation;

- processing and sale of fuel.

In addition, the corporation also produces and sells heat and electricity. Gazprom has at its disposal the richest natural gas reserves in the world. The value of the corresponding reserves is about 18% of the world and 72% of the Russian. In turn, if we talk about gas production, then the corporation accounts for about 14% of its global volumes and 14% of Russian ones.

The company is actively developing projects in vast territories - in Yamal, on the Arctic shelf of Russia, in Siberia, in the Far East. Settlements, the economy of which is largely based on the facilities owned by Gazprom - Urengoy, Astrakhan, Nadym, and many others. The gas industry itself can be one of the city-forming industries in these settlements.

Gazprom has a developed transport and industrial infrastructure at its disposal. The company is also actively developing processing industries. Gazprom's capabilities make it possible to almost completely satisfy the domestic demand of the Russian economy in natural gas.

Besides, Gazprom has branches abroad. The activities of these structures are also largely related to the exploration and production of fuel. The corporation supplies gas to both the Russian and foreign markets.

The corporation is one of the key players in the European fuel market. Gazprom's largest foreign field development projects are being implemented in Venezuela, India, and Algeria. Managers of the Russian corporation actively interact with colleagues on a wide range of issues: investment, implementation of joint projects, exchange of experience in the application of technologies for the extraction and delivery of fuel.

In Russia, Gazprom owns the Unified Gas Supply System. Its total length exceeds 168 thousand km. In fact, the company is the only manufacturer and exporter of liquefied gas in the Russian Federation.

Gazprom was founded as a public company in 1989. Its turnover during the active periods of capitalization was fixed at about 3.9 trillionrubles.

The city where the head office of Gazprom is located - Moscow. The largest structures of the corporation are also located in St. Petersburg. It is known that it is planned to move the main office of Gazprom to the Northern capital in 2018.

Company History

It will be useful to get acquainted with the main facts from the history of the company's development.

In the middle of the 20th century in Siberia, in the Urals, in the Volga region, Soviet specialists discovered a number of large gas fields. They began to be quickly mastered, and, as a result, in the 1980s, the USSR became one of the largest countries in the world in the field of gas production.

In 1965, the Ministry of Gas Industry was established in the USSR. He was in charge of mineral exploration, fuel extraction, its delivery and sale to consumers. In August 1989, this department was transformed into an economic entity - the Gazprom concern.

In 1993 it was renamed RAO Gazprom. The ownership structure of a corporation has changed significantly over time. Thus, in the 1990s, a significant part of the corporation's shares were sold as part of the privatization mechanism. By 2004, the state in Gazprom owned 38.7% of the shares. In addition, the Russian Federation had a majority in the company's Board of Directors. Subsequently, the state's share was increased to more than 50%.

In 2000, the corporation actively increased its turnover. In 2008, in terms of capitalization, it was among the top 3 largest global businesses. In 2009, Gazprom launched the first plant in the Russian Federation forrelease of liquefied gas. The European direction of business was actively developing. Thus, in 2012 the company launched the second branch of the Nord Stream pipeline. Soon, Gazprom officially launched production at one of the largest gas fields - Bovanenkovo.

In May 2014, Gazprom and the Chinese corporation CNPC signed a major contract for gas supplies to China. The contract price was $400 billion. The agreement is for 30 years.

Company Owners

Who owns Gazprom? The ownership structure of a corporation has the following features.

The main shareholder of the corporation is the Federal Property Management Agency, which in this case represents the state. This department - in fact, the country - owns 38.373% of Gazprom's shares. The next largest shareholder of the corporation is The Bank of New York Mellon. He owns 26.955% of the corporation's securities. Rosneftegaz owns 10.74% of Gazprom's shares. Rosgazifikatsiya has a 0.889% stake in the gas corporation's capital structure. Others own 23.043% of the company's shares.

One way or another, the state owns 50% plus 1 share of Gazprom Corporation. The management structure of the company is as follows.

Corporate Governance: General Meeting of Shareholders

The supreme governing body of the company is the General Meeting of Shareholders. Its formation is carried out annually. In addition, extraordinary General Meetings are possible. The owners of ordinary shares have the right to vote.

All ownersof the corresponding type of securities, independently or through a representative, may exercise the right to participate in the General Meeting. An event of the corresponding type is recognized as eligible if the attendance of shareholders is ensured, which together have more than half of the votes.

The competence of the general meeting is presented, in particular:

- changing the provisions of the company's Articles of Association;

- formation of annual reports;

- the definition of the auditor;

- income distribution;

- choice of members of the Board of Directors, as well as the Audit Commission;

- making decisions to change the structure of the company's management;

- making decisions to change the size of the authorized capital of Gazprom.

General management of the corporation is carried out by the Board of Directors. It will be useful to study its features.

Corporate Governance: Board of Directors

The activities of the Corporation's Board of Directors are regulated by a separate Regulation. The considered intracorporate structure of the Gazprom company solves the issues of business development, if they are not within the competence of the higher management body of the corporation - the General Meeting. At the same time, among the relevant competencies is the election of members of the Board of Directors. This procedure is carried out annually.

The chairman of the board of directors of Gazprom is in charge of the company's management structure under consideration. Core competencies of the relevant body:

- approval of the corporation's budget for the year;

- development of investmentprograms;

- making decisions on the formation of general meetings;

- establishment of executive bodies of the corporation;

- development of recommendations on the amount of dividends to shareholders.

If we talk about the executive structures of the company, the main one is the Board. Let's study its features in more detail.

Gazprom Corporation Management: Board

It can be noted that the board of the Gazprom company is a structure that has the status of a collegial body. In turn, its Chairman is the sole body. At the same time, both the board and its chairman are accountable to the General Meeting, as well as to the Board of Directors of the corporation. Their task is to ensure the implementation of decisions made by higher management structures of the company.

The Management Board of Gazprom and its Chairman are elected as part of the activities of the Board of Directors. Their term of office is 5 years. The competence of the Board includes, in particular:

- developing a budget for the year;

- development of investment programs, plans for the activities of the corporation;

- preparing reports;

- organization of gas supply management;

- ensuring the functioning of the Russian gas supply system.

Departments

Gazprom's organizational structure is also represented by various departments. They may be responsible for:

- ensuring technological processes;

- bookkeeping;

- implementation of foreign economic programs;

- holding domesticcontrol, as well as audit;

- investment and implementation of construction projects;

- marketing policy;

- organization of fuel processing;

- fuel production;

- information policy;

- interaction with Russian regions;

- organization of transportation, storage, use of fuel;

- management of various property, affairs, personnel, projects;

- implementation of corporate relations;

- strategic development;

- economic expertise;

- issues of pricing, economics, finance;

- production management organization;

- legal issues.

Gazprom Audit Commission

There is another important structure that is part of the management structure of the Gazprom corporation. We are talking about the Audit Commission. It is accountable to the General Assembly and is an elected body. The work of the Audit Commission of the company is also regulated by a separate Regulation.

In addition, the relevant structure of Gazprom is guided in its activities by the legislation of the Russian Federation, the company's Charter, as well as decisions of the General Meeting. The main tasks that this structure solves:

- control over the formation of reports and other information reflecting the indicators of the company's economic development, as well as characterizing its financial position;

- control over the compliance of accounting methods used in the corporation with the provisions of Russian legislation;

- Ensuring timely deliveryreporting corporation to interested structures;

- preparation of proposals aimed at improving the efficiency of the disposal of the corporation's assets, as well as the implementation of other areas of financial and economic activities of companies;

- preparation of proposals to reduce economic risks, optimize internal control mechanisms in the corporation.

This is how one of the largest companies in the world works, this is how its management is organized. In terms of its structure, Gazprom is generally organized like other corporations of the corresponding scale. But given the importance of the tasks that the company solves in the course of its activities, the organization of business management in this case requires the use of the most effective approaches in management.

De jure, the head of Gazprom - the chairman of the company's Board of Directors, as well as his subordinates solve difficult tasks to bring the corporation's management system in line with this criterion.

Company branches

In the course of building the management model of Gazprom, its branches were transformed into independent legal entities. They began to function as regional corporations in the gas sector. Each branch of Gazprom is thus de jure independent of the main company, although, of course, it develops in the context of the strategic priorities developed by the head office of the corporation.

Migration of management to the northern capital

The management of the largest Russian gas corporation is characterized by a very remarkabletrend - a steady migration of internal corporate structures of "Gazprom" in the Northern capital. We already know that the city where the main office of the Gazprom corporation is located is Moscow. But now St. Petersburg has every chance of becoming a key city in Russia in terms of brand presence at various levels of legal relations. With what it can be connected? What attracts a corporation like Gazprom, St. Petersburg?

First of all, of course, it is worth noting that the northern capital of Russia is a beautiful city in itself, and this circumstance alone can become a factor in the desire of the country's leading managers to work there. According to experts, the largest Russian gas corporation now occupies about 20% of St. Petersburg offices in the luxury segment.

By 2018, the company's headquarters will be located in the northern capital. It is assumed that the new head office of Gazprom will be located in the Lakhta Center building, which is currently being built in the Primorsky district of St. Petersburg. The building will be represented by a skyscraper, as well as an office complex. The total area of the facility will be about 400 thousand square meters. meters.

Where will the head office of Gazprom be located in the Northern capital? The address of the Lakhta Center is Lakhtinsky Prospekt, 2, bldg. 3. The construction of the structure began in 2013. It is expected that the skyscraper of the center will be the highest among the buildings in Russia and Europe. In particular, it will be 88 meters higher than the Federation Tower, which is located in the Moscow City office complex.

Office Address

Actually, where is Gazprom's headquarters now? The address of the current head office of the corporation: Moscow, st. Nametkina, 16. The building is thus located in the South-West of the Russian capital. It is possible that after Gazprom moves (St. Petersburg and Lakhta Center are still in a state of expectation of this), the competent structures involved in the management of the company will continue to work in the building of the current headquarters of the corporation..

Gazprom subsidiaries and departments operate in St. Petersburg.