Rosneft owns and operates seven major refineries in Russia: the Tuapse refinery on the Black Sea coast, the Komsomolsk refinery in the Russian Far, the Kuibyshev, Novokuibyshevsk, and Syzran refineries in the Volga-Urals region, and the Achinsk and Angarsk refineries in Eastern Siberia. The total primary capacity of Rosneft refineries is 372 mln barrels (50.9 mln tonnes) of crude oil.
Rosneft also owns four mini-refineries (in Western Siberia, Eastern Siberia, Timan-Pechora and the southern part of European Russia) with overall annual capacity of 4 mln barrels (0.5 mln tonnes) as well as a 50% stake in the Strezhevskoy mini-refinery in Western Siberia. Output from mini-refineries is mainly for own-use by the Company’s production subsidiaries.
Favorable refinery locations ensure Rosneft’s successful petroleum product marketing both domestically and abroad. Moreover, the Company-owned terminals in Tuapse and Nakhodka enable Rosneft to capture much higher margins on petroleum product exports to Europe and the lucrative Asian market.
2010 was a breakthrough year for Rosneft’s refining business in several ways. Firstly, the modernization program of Company refineries entered its most intensive phase. This program will radically improve quality indicators at existing Rosneft facilities. Secondly, agreement was reached with the company PDVSA on acquisition of 50% in Ruhr Oel, the owner of stakes in four refineries in Germany. The transaction expands Rosneft’s refining capacity and gives it access to the German market as well as to the latest technologies for refinery operation and management. Thirdly, the Board of Directors approved a general concept for construction of a petrochemical complex in the Far East. Other important developments were the start of work on a new refinery in China, expansion of the Angarsk Polymer Plant, and approval of the project for construction of a new refinery with 1 mln tonnes capacity in Grozny (southern Russia). Successful completion of these projects will raise Rosneft’s refining business to a new level and strengthen its competitive positions.
Company refineries, including mini-refineries, processed 50.5 mln tonnes (369.4 mln barrels) of oil in 2010, which is 1.3% more than in 2009. Throughput increased at all Company refineries, with the exception of Tuapse and Kuibyshev. Utilization of refining capacity was 99% and light product yield was 55.8%. Overall output of petroleum products rose to 47.9 mln tonnes, including outputs from the Angarsk Polymer Plant and the Novokuibyshevsk Oils and Additives Plant.
Refinery throughput and petroleum product output
|Petroleum product output, mln tonnes