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« July, 2021
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Crude Oil Exports

PJSC NK Rosneft conducts a policy aimed at balancing the channels of oil monetization, including refining at its own refineries in Russia, Germany and India, export sales under long-term contracts and spot sales as part of tenders, as well as sales in the domestic market.

The company continuously monitors the economic efficiency of the oil monetization channels, which helps it maximize the share of high-margin channels in the overall sales structure.

In 2017 the Company supplied about 100.5 million tons of oil to its own plants in Russia, which is 15% higher than the level of 2016 deliveries (taking into account the deliveries to Bashneft refineries since October 2016). The growth in supply volumes was mainly due to the acquisition of Bashneft's assets in Q4 2016.

In addition to oil supply to its own refineries in Russia, in 2017, the Company supplied 4.5 million tons of its own oil to the plants with a participation share of the Company in Germany, which is 3% more than in 2016.

The volume of oil sales to the neighboring and far-abroad countries amounted to 121.8 million tons in 2017. Among the export directions of oil sales, the eastern direction is the most economically attractive for the Company - deliveries via the pipeline to China, sales in the ports of Kozmino and De Kastri. The volume of supplies to the East in 2017 amounted to 47.7 million tons, which is 10.7% more than over the same period last year.

In addition, the Company sold 65.7 million tons of oil to the North-West, Central and Eastern Europe, to the Mediterranean countries and other destinations of the far abroad. Exports to the CIS totaled 8.4 million tons.

The bulk of the Company's exports is made through the capacities of Transneft, represented by main pipelines, and ports. In the reporting year, exports were mainly carried out using the following transportation routes:

  • pipeline transportation - about 103.1 million tons, which accounted for 84.7% of total oil sales to the countries of the CIS and far abroad. 48.4 million tons of this volume were exported via ports, and about 54.7 million tons via  pipelines to China, Belarus, Central and Eastern Europe
  • railway and mixed transport - 2.2 million tons, or 1.8% of total exports, excluding the effect of acquired assets. Mainly, these are supplies via the pipeline of the Caspian Pipeline Consortium (CPC) and by rail to China through Mongolia.

In addition to the above routes, in 2017, 4.9 million tons of the Company's crude oil were shipped via the export terminals of De Kastri and Varandey. In addition, about 11.6 million tons of third-party resources were sold to non-CIS countries via the Company's trading divisions.

Expansion of cooperation in oil trading

In 2017, the Supplementary Agreement between Rosneft and the China National Oil and Gas Corporation (CNPC) became effective, involving increase of oil transit supplies to China through Kazakhstan and extending the contract valid from 2013 until the end of 2023. In accordance with the Agreement, the volume of supplies in this direction will reach 91 million tons over a 10-year period, which will make it possible to deliver minerals in the future using one of the strategic lines for Rosneft. The total volume of deliveries to CNPC in 2017 was 30.0 million tons, including 10 million tons of transit through the territory of the Republic of Kazakhstan.

During 2017, the Company continued its cooperation with end-users. The export of oil to the end consumers in 2017 amounted to more than 65 million tons, which is the same as in 2016. As part of developing cooperation with end-users in 2017, the Contracts with Shell, Eni for the supply of oil via the Druzhba oil pipeline to Germany were renegotiated.

Key achievements in the field of export deliveries

  • Supply of oil in the eastern direction increased by 10.7%, to 47.7 million tons, in 2017.
  • Supply of oil to China taking into account international trading amounted to a record 39.1 million tons.
  • Under long-term contracts, the volume of supply to China increased by 9.5%, to 30.0 million tons.