Rosneft has been implementing a policy aimed at ensuring a required balance of crude monetization channels, including crude oil processing at its own refining facilities in Russia and Germany, export sales under long-term and tender-based spot contracts, and domestic sales.
The Company is monitoring the economic effectiveness of crude monetization channels on an ongoing basis, as a result, in 2014 the share of high margin channels increased to 40.2% of the total volume of crude (vs. 38.9% in 2013).
In 2014, the Company supplied 86.6 mln tons of crude oil to the company-owned refineries in Russia, an 11% growth over 2013 supplies (77.8 mln tons). Total supplies to third parties in 2014 amounted to 111.2 mln tons, including 8.8 mln tons of crude oil sold domestically.
The Company also supplies natural, dry and associated gas to consumers in the Russian Federation. Associated petroleum gas is supplied to the company-owned gas processing plants (GPP) and to the gas processing complex of SIBUR Holding. Natural and dry lean gas is supplied to consumers via Gazprom’s unified gas distribution system under a gas transportation contract. Natural and dry lean gas is supplied both to end users and regional retail companies in above 30 regions.
In order to increase its share in the gas market the Company is currently moving towards extension of its contracts portfolio and diversification of sales channels. In 2014, Rosneft signed long-term gas supply contracts with RUSAL, EuroSibEnergo, GAZ Group, EuroChem and Fortum for the total amount of above 40 bcm of gas.
In 2014, the Company’s domestic gas sales increased by 46% and amounted to 55.9 bcm of gas, including 32.75 bcm in West Siberia, 3.1 bcm in South Russia, 0.6 bcm in the Far East, 19.4 bcm in European Russia and other regions.
Increased gas supplies in 2014 were driven by extension of the Company’s contracts portfolio as a result of consolidation of ITERA and TNK-BP, which provided Rosneft with access to the consumer market in the premium regions of the Russian Federation.
In October 2014, Russia launched its first auction of natural gas at the St. Petersburg International Mercantile Exchange (SPIMEX). Rosneft took part in gas trading at two delivery bases (balance points) – Nadym and Vyngapurovskaya compressor stations – for delivery in the next month. Based of the results of three trading sessions (October, November, December) the Company signed supply contracts with end users for the delivery of above 100 mmcm of gas.