Description
SWOT ANALYSIS OF GAZPROM

Gazprom

Parent Company

Gazprom

Category

Oil and Gas

Sector

Energy

Tagline/ Slogan

Dreams come true!

USP

World’s largest company in terms of natural gas reserves STP

Segment

Corporates, countries and Russian and foreign consumers

Target Group

Entities which require gas, gas condensate and oil

Global energy company providing reliable, efficient and balanced Positioning supply of natural gas and other energy resources SWOT Analysis

1. Dominant market share globally in the natural gas business as a result of having large natural gas and hydrocarbon reserves in Russia, which gives it a huge platform of growth 2. Its strong Gas transportation network, the UGSS that also happens to be the world’s largest gas transportation system allows it direct control over its transport activities and helps it in trade 3. Excellent R&D initiatives (technologies of helium extraction in field conditions of East Siberia and Far East; technologies of distributed compressing to increase operational efficiency of fields in their closing stage; using gas as a motor fuel; harmonization of gas industry national standards and norms) help it reinforce its competitive edgeand enhance its technological progress 4. Its strategic partnerships with GDF SUEZ(for comprehensive electrometric corrosion inspection of five km of the Center-Vostok Strength underground gas pipeline without pipeline pigs) and with BASF/Wintershall Holding facilities (for tests of BIOROS

biopreparation for treatment of environmental areas contaminated with hydrocarbon pollutants) have helped it retain a technological advantage and thereby helped its trade 5. Its vertically integrated operations coupled with its operational infrastructure boosts its businesses and leads to high profits 6. Sponsorship of sports teams and events gives good visibility to the brand 7. Nearly 400,000 people are employed with the company worldwide

1.Maturing Gas fields in western Siberia (Urengoyskoye, Yamburgskaya, and Medvezhye) whose production is declining over time will adversely impact its gas production in the near future 2.Old deteriorating pipeline systems which are still in use can lead to operational accidents and other leakages etc., which can impact its Weakness finances and revenue

1.Its strategic acquisitions and joint ventures (with companies as Wintershall, WINZ, WINGAS, WIEH, WIEE,Novatek, Rozneftgas, Enel, ArmRozgasProm) will allow it to strengthen its existing business and enable it to gain a foothold in newer sectors 2.Science and Technology agreements (with United Metallurgical company, Severstal, Chelyabinsk Pipe Rolling Plant, PetroVietnam, VNG, Gasunie) will help it develop newer technologies to reduce operating costs and increae efficiency 3.Strategic memorandums (with CNPC, Europol GAZ, Shell, Petrovietnam, Caterpillar, Gasunie, and even the Russian railways) will help it increase its presence as well as revenues 4. Its Investment program which will see a major focus on the following gas production projects: pre-development of the Bovanenkovskoye, Medvezhye, Urengoyskoye, Yamburgskoye, and other fields and projects will improve its competitive advantage and Opportunity increase its revenues

1.Governmental Regulation leading to unfavorable pricing policies can result in losses for the company and hamper its growth plans 2.Weather sensitivity in the Siberian region where it mainly operates can lead to production/transportation problems and increase operational costs 3.Fluctuation in crude oil and natural gas prices due to gro-politics Threats and other reasons can cause heavy losses to the company

Competition

1.OAO Rosneft Oil Company 2.OAO Tatneft 3.OJSC Surgutneftegas Competitors 4. Russneft Neftegazovaya Kompaniya OAO



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