Petroleum Product Exports

In 2007, Rosneft exported 19.17 mln. tonnes of petroleum products, which accounted for 51.2% of the Company’s total petroleum product sales volume. Rosneft’s petroleum product deliveries to global markets were 18.47 mln. tonnes, while another 0.70 tonnes was exported to the CIS. In 2007, petroleum product exports grew 43.7% over the prior year, which was explained by increased crude throughput resulting from the acquisition of new upstream and downstream assets.

Rosneft enjoys significant competitive advantages over other Russian oil companies as its two major refineries are located in close proximity to export markets: the Tuapse refinery is on the Black Sea coast, and the Komsomolsk refinery is in the Russian Far East. In addition, the Company-owned transshipment facilities in Tuapse and Nakhodka, which are close to Rosneft refineries, ensure higher efficiency of petroleum product exports.

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 (124 mln. barrels) 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