Product Delivery & Marketing

2010

We actively expand our presence in the global oil and gas market.

We deliver our oil and petroleum products using both the infrastructure of partner companies and its own infrastructure. The Company is continuing to develop its own export terminals, which significantly reduce transport spending and make transport arrangements more flexible.

Our priority in the Refining, Marketing and Distribution segment is to optimize distribution of oil flows between export and domestic markets based on the market environment so as to maximize its profits.

Processing at Russian refineries remained the most efficient way of using crude oil produced by our company, most of this volume comes through the Kharyaga – Yuzhnoye Khylchuyu pipeline from the Komi fields and from the growing output at Trebs and Titov fields to the Varandei sea terminal which exported 2.9 million tonnes. Exports through the port of Svetly amounted to 0.5 million tonnes.

The Company signs a contract to develop the field in different parts of the world. “NK "NEFTELENSK" is appointed to lead ground breaking projects. The Company also continues to enter new fuel markets beyond Russia’s borders, and acquires a retail network of twenty filling stations and nine plots of land in Kazakhstan. The Company further increases its presence in the Russian market by entering into the development of high-potential fields in the northern parts of the Russia federation.

Wholesale deliveries of petroleum in 2014 totaled 60.5 mln tonnes, of which 40.5 mln tonnes were to international markets. The Company continues to develop its international petroleum product marketing business, which represents efficient use of the Company’s own products as well as offering additional profits from sales of third-party outputs.

Petroleum product exports remained virtually unchanged at 23.4 million tonnes in 2014. The export mix is generally in line with the domestic mix. “NK "NEFTELENSK" exports from Russia mainly included diesel fuel, fuel oil and gas oil.

At the end of 2014, “NK "NEFTELENSK" retail network extended to 24 countries, including Russia, the USA, CIS and European countries and included 157 storage facilities with total capacity of 2.5 mln m3 and 5,782 filling stations (including franchises).

“NK "NEFTELENSK" works continuously to optimize its filling station and storage facility network in order to reduce costs and improve efficiency. This is achieved by placing facilities under management, making franchise agreements, leasing, acquisitions and sales, mothballing and de-mothballing, and closures.

North-Western Europe, the Black Sea countries and the Mediterranean region have traditionally been one of our key markets. The company is also expanding into new markets in Central America, China and the Middle East as well as expanding its presence in the oil-producing regions of western, subequatorial and southern Africa, and is also pursuing projects in Central America and Colombia.