Crude Oil Exports
Rosneft delivers the oil it produces to the Company’s refineries in Russia and Germany and sells it in Russia, the CIS and in the international market. Crude volumes remaining after feeding own refineries are mainly exported by the Company, both via long-term and short-term contracts as well as tender-based sales.
Total oil sales amounted to 104.1 mln tons in 2013, of which oil exports was 97.3 mln tons, with the balance sold on the domestic market. Export sales volumes were 46.5% higher than in 2012, reflecting an increase in production.
The Company exported 63.6 mln tons of oil to North-West, Central and Eastern Europe, Mediterranean countries and other far abroad destinations. CIS exports amounted to 9.8 mln tons. The growth in exports is driven by the launch of railway deliveries of light oils produced by Orenburgneft. Supplies to Asia Pacific countries amounted to 23.9 mln tons, in particular, 15.8 mln tons were pipeline deliveries to China under long-term contracts, with the remaining amounts being exported via Kozmino and De-Castri ports. Supplies into Asia Pacific grew by 33% year-on-year, mainly in connection with the consolidation of Verkhnechonskneftegaz.
The majority of Rosneft’s export shipments are made via Transneft facilities, including the trunk pipeline network and the ports. In 2013, exports were made using the following means of transport:
- pipeline transport – 91.9 mln tons, which amounted to 94.5% of total oil exports;
- railway and mixed transport – 5.4 mln tons, or 5.5% of total exports.
In 2013, Rosneft continued providing supplies to the China National Petroleum Corporation (CNPC) under a long-term contract signed in 2009. The 2013 supply volumes were 15 mln tons, including those supplied under the contract between Rosneft and Transneft that provides resource backing for the contract between Transneft and CNPC (under this contract, Rosneft sells crude oil to Transneft for subsequent delivery to CNPC).
In June 2013, Rosneft signed a new long-term oil sale and purchase contract with CNPC on prepayment terms, which provides for the supply of 325 mln tons of oil over 25 years. The oil price under this contract corresponds to alternative routes of crude oil supply from eastern Company fields and is calculated on a monthly basis using Russian oil quotes on Kozmino port terms, which allows us to view the CNPC contract as a profitable and stable oil supply channel on a long-range horizon. Supplies under the new contract amounted to 0.8 mln tons in 2013. It is anticipated that supply volumes will grow to 15 mln tons a year by 2018.
In 2013, Rosneft also signed a series of long-term contracts for westward supplies by the Druzhba oil pipeline to Poland and Germany and with Glencore, Vitol and Trafigura.