Human capital asset

- The policy of the Company’s top management is aimed at procurement of the entity with highly qualified staff by means of staff development and cross – training of the existing staff. Requirements in the sphere of personnel’s professional training and skill maintenance have become more exacting. The necessity to systemize working process has become more evident. All the mentioned above factors served as a background for creation of this group.
The group operates of the basis of the existing legislation of the Russian Federation and the provisions of the entity which are the provision on personnel’s professional training and skill maintenance, the provision on young employees and the provision on the arrangement of the work practice for students.
We can characterize our work as investments into human capital assets, in other words, the development of the personnel. The experience of major Russian and foreign companies testifies to the fact that such kind of investments has a positive effect on the productivity and the performance.
Nowadays it is more difficult in Russia to find “ready-made” experts. That is why much attention is paid to the career advancement inside the company, to the efficient methods of personnel’s development, education and training. Every year this object of expenditure is increasing. If we compare 2005 and 2006 the share of spending increased by 1,5 times. The financing was increased and in 2007 this share doubled as compared to 2005. At an average 25% of employees are annually trained.
It is annually planned to provide professional training to each structural subdivision of the Company and the budget for professional training is formed basing on these data.
The professional training is provided on the basis of a framework contract made with educational institutions. Our partners are the “Neftyanik” educational center in Variegansk, the petroleum college in Nizhnevartovsk and the professional college №8 in Raduzhniy. These educational institutions provide professional training for our personnel. Experts study in Moscow and St. Petersburg educational institutions such as the Institute of Oil and Gas Business, the International center of finance and economic development, the “Vostok - Zapad” international institute of cooperation and other educational centers.
Another direction of our activity is personnel reserve of the Company which, firstly, deals with admission of students to work practice from institutions of higher education and colleges. During the working practice students can see the production. Each student has a mentor, a highly qualified expert from OAO “Varieganneft” and subsidiaries. Students form other cities are provided with dwelling, their transport expenses are also covered.  Every year 200 students come to “Varieganneft” for practice many of which come back to the company.  
Special attention within this group is paid to work with young personnel. Every year more than 20 graduates are employed. Thus, last year we accepted 25 specialists and this year there have already come 27 graduates.  The status of a young specialist is valid for 3 years of work. Every young specialist has a supervisor that helps him to feel at ease at work and solve possible social problems.  Several years ago the Company revived the tradition of payment of a “dislocation” allowance”, the sum of which is annually increasing – at an average in1,5 times. Every year in October newcomers undergo the initiation ceremony which is organized by the Youth Committee of the Company.