ROSNEFT RUSSIAN REFINERIES RUNS UP 2.8% IN 2018, CRUDE AND FUELS SUPPLIES DEVELOP STEADILY
ROSNEFT’s 2018 oil refining throughput at the Company's refineries in the Russian Federation amounted to 103.3mn t (2.066mn b/d, 2.8% growth vs. 2017 level). Including the foreign assets on the back of improving market environment refining throughput increased by 2.0% as – up to 115.0 mn t (2.3mn b/d). Q4 refining throughput at the Company’s refineries in Russia amounted to 26.8 mn t (growth of 0.1% QoQ and 5.6% YoY).
Refining depth in 2018 amounted to 75.1%, light products yield - 58.1%.
In 2018, in accordance with the earlier approved Rosneft-2022 strategy, large-scale programmes of technical refurbishment of Oil and Petroleum Products Test Center at Syzran refinery were implemented.
The Komsomolsk Refinery control room was equipped with advanced digital equipment in H2 2018, which made it possible to improve the control over the performance of key technological facilities: two crude units, distillate hydrotreating unit and sulfur recovery unit.
The implementation of modern IT solutions allowed the Company to increase the efficiency of technological process, ensure the stability of the equipment, enhance the product quality control, improve the industrial safety level along with engineering staff efficiency.
In May 2018 at JSC Ufaorgsintez a major isopropylbenzol (cumol) production unit modernization investment project was completed. The new technological process provides safe and environmentally clean production, reduces feedstock and energy consumpion. It is the first time such technology is applied in Russia.
In April 2018 the Ufa group of the Company's refineries started commercial production of improved high-octane gasoline AI-95 of Euro-6 class, which is significantly superior to currently produced in the Russian Federation Euro-5 fuel with respect to environmental and performance indicators.
Moreover, Saratov refinery started the industrial production of Euro-6 high-octane gasoline in September 2018. The fuel received positive reviews from customers in the regions of its distribution – Bashkortostan and Krasnodar Krai.
In March 2018 The first batch of high octane fuel of Pulsar-100 was released at Ryazan refinery. The fuel provides allows for unleashing the potential and improving the effectiveness of high demand engines and offers improved environmental qualities. Pulsar-100 is the official Russian Circuit Racing Series fuel and is distributed among the majority of filling stations in Moscow.
In H2 2018 the Company commissioned an environmental facility at the Novokuibyshevsk Refinery – a post-treatment unit with membrane bioreactor at the wastewater treatment facilities. This unit ensures a high level of treatment and return of water to the production cycle, thus minimizing water resources consumption.
As part of the import substitution program, the catalysts purchased for the hydrogen unit of Kuibyshevsk and Ryazan refineries were substituted with catalysts produced by the Angarsk Plant of Catalysts and Organic Synthesis.
In December 2018 installation works for column replacement on gas fractionation unit were completed at Angarsk Refinery. The unit produces components of petroleum fractions and fuel gases, which allow for improvement of production process reliability along with increasing the environmental and industrial safety.
In 2018 Rosneft continued to actively develop the cooperation with international partners with respect to oil and petroleum products trading. Long term supply contracts were signed to deliver crude to Poland in the amount from 6.4 to 12.6 mn t with Grupa Lotos and to Germany in the amount from 4.8 to 10.8 mn t with TOTAL OIL TRADING. Furthermore, year-long contracts were signed with Shell and Eni to supply feedstock to Germany in the amount of 3.9 mn t and with SOCAR Trading for crude deliveries to Turkish refinery in the amount of 1 mn t. In November 2018 Rosneft signed an agreement with ChemChina to supply ESPO blend from February 2019 to January 2020 in the amount of 2.4 mmt via Kozmino port.
As part of developing the cooperation with Republic of Belarus the Company signed agreements with OJSC “Naftan”, OJSC “Belarusian Oil Company” and OJSC “Mozyrsky Oil Refinery” to supply oil in the amount of 8.7mn t.
Thereby the Company continues to successfully diversify oil distribution channels along with increasing its export in the Eastern direction: in 2018 supplies reached 59.2mn t (24.1% growth), where 16.1 mmt were supplied in Q4 (2.6% growth QoQ).
As part of expanding the cooperation with end-users a contract was signed with Japanese JXTG Nippon, which involves over 0.7mn t stable gasoline and gas feedstock blend supplies in 2019.
The Company signed a long term contracts for petroleum and diesel supplies with the largest Mongolian petroleum products importers on the XXII St. Petersburg International Economic Forum in Q2 2018. Contracts are valued at $2.1bn. These contracts will enable Rosneft to sustain its steady positions in the high-margin Mongolian petroleum product markets and strengthen its cooperation with Mongolian partners.
The Company complies fully with its obligations to provide the internal petroleum products market with sustained supplies by acting within the framework of the Agreement “On the measures to stabilize and develop the internal petroleum products market” established with the Ministry of Energy and Federal Anti-Trust watch-dog FAS of Russia. Thereby, Rosneft, being the leading supplier of petroleum products to the internal market, increased motor fuels sales on the internal market up to 28.1mn t, 3.7% higher than 2017 level. In addition, the Company exceeded the guidelines for gasoline sales via exchange more than 2 times, diesel sales – by over 1.5 times.
In 2018 petroleum product sales via retail channel grew by 16% with respect to 2017 level, revenue from non-fuel sales increased by 6%, mostly on the back of the introduction of the new product mix policy on all filling stations including cafés’ product-line expansion. Gross revenue from café business in 2018 increased by 14% vs 2017 level.
In 58 regions of the Russian Federation the work continued towards increasing the number of participants in "Family team" and "BP Club" loyalty programs. As of 2018 year end 10.3 mln participants were involved.
The Company received “Product of the year” prize for introducing the Pulsar fuel. The reward was received in “The most popular novelty product” nomination in the “Fuel” category. A comprehensive work was conducted to introduce the new fuels line-up with ACTIVE technology under BP branding in all regions of their filling stations presence.
The fuel quality control is being conducted constantly at tank farms and filling stations using stationary and mobile laboratories. More than 8 th. inspections were conducted at filling stations in 47 regions of the Russian Federation with the use of own mobile laboratories. Fuel quality tests at tank farms and filling stations were carried out in all regions of the Company's presence. Such control allows for elimination of risks of selling fuel with quality deviations.
Rosneft has efficient control system of fuel sales accuracy, that provides one of the best offers on Russian petroleum retail market.
In pursuance of the alternative fuel supply development, the works had been completed and 10 stations in Ulyanovsk, Voronezh, Saratov and Stavropol Krai had been put into pilot operations, where compressed natural gas (CNG) is sold as a motor fuel. Two more filling stations will be launched in Saratov and Ulyanovsk in the near future.
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