Production of Lubricants

Rosneft has a rapidly developing lubricants business. The company was the second-largest producer of lubricants in Russia in 2009.

Lubricants are produced at the Angarsk refinery, at the Novokuibyshevsk oils and additives plant, whose production cycle is associated with the Novokuibyshevsk refinery, and also by a specialized subsidiary, Moscow Plant Nefteproduct, which produces a unique range of lubricants. Rosneft also has a specialized scientific research institute focused on the lubricant segment.

Overall annual capacity of Rosneft lubricant plants is in excess of 600,000 tonnes of ready products, including 485,000 tonnes of lubricants (motor oils, industrial oils, base oils), 10,000 tonnes of motor oil additives and 115,000 tonnes of other products (paraffin, petrolatum, wax, extracts, etc.). Rosneft plants produce a range of more than 100 types of lubricants, providing for the needs of large industrial enterprises as well as motorists.

The Company’s lubricant plants produced 534,000 tonnes of lubricants, additives and other related products during 2009. Output of saleable lubricants was 452,000 tonnes.

A program for development of lubricant production at Company plants was designed in 2009. The program envisages construction of a hydrotreatment unit for base oil components, optimization of lubricant blending and expansion of packaging facilities at the Novokuibyshevsk oils and additives plant. Development of lubricant production is also planned at the Angarsk refinery. The Company’s strategic task is production of high-quality base oils to replace imported base oils, currently used for production of internationally known lubricant brands.