Petroleum Product Exports

Rosneft exported 25.94 mln tonnes of petroleum products in 2008 (including products bought from other producers), representing 56.7% of total product sales. Petroleum product exports grew 35.4% over the prior year, which was explained by increased refinery throughput. The Company delivered 24.89 mln tonnes of products (96% of overall export) to the ‘far abroad’ (non-CIS countries) and 1.05 mln tonnes to CIS countries. Fuel oil was 50% of product exports, 36% was diesel fuel, 11% was naphta.

Railroad and mixed transport was used for the largest part of product exports (16.5 mln tonnes or 64% of the total). Pipeline transport was used to export 1.7 mln tonnes. Exports by sea through Tuapse terminal totalled 7.7 mln tonnes, including 4.7 mln tonnes of product produced by the Tuapse refinery.

Rosneft has a number of clear advantages compared to other Russian oil companies in the export of petroleum products. Two of the Company’s refineries are located directly adjacent to export markets: the Tuapse refinery on the Black Sea coast and the Komsomolsk refinery in the Far East. Rosneft also has its own transhipment capacities at Tuapse and Nakhodka, located near the Company refineries, which significantly improves the efficiency of export deliveries.

Rosneft is currently implementing comprehensive modernization programs at its terminals to ensure their capacity will meet the planned petroleum product export volumes. For example, the Tuapse terminal is expected to have an annual capacity of 17 mln tonnes by 2011. As a result, the terminal will be able to handle more deliveries from the Tuapse refinery, whose capacity will also substantially increase when the plant’s upgrade is completed.

Petroleum product export sales