Aircraft Refuelling Business
In 2019, sales of jet fuel reached 3.4 mmt. With a 31.2% share of the Russian market in terms of jet fuel output in 2019, the Company maintained its leading position in the country.
The sales structure in 2019 was as follows:
- 2.2 mmt sold to airlines and refuelling facilities;
- 1.2 mmt sold in bulk, including commodity exchange sales (0.5 mmt).
In Russia, jet fuel is sold through a chain of Rosneft's refuelling facilities at 21 airports and third-party refuelling facilities at 22 airports. The Company also sells jet fuel at seven airports in Germany, Georgia and Mongolia.
Key customers of the Company are Aeroflot Group, S7 Group, Ural Airlines, Pegas Group, Volga-Dnepr Group, Yamal Airlines, NordStar Airlines, Turkish Airlines, and Lufthansa Group.
Rosneft’s bunker fuel is sold in all major Russian sea and river ports and a number of foreign destinations. Bunker fuel sales in 2019 amounted to 2.85 mmt, including bulk sales to foreign consumers (operators of transcontinental container shipping lines) at sea ports in the Russian Far East.
The sales structure was as follows: 0.6 mmt (20%) was sold in the domestic market, and 2.3 mmt (80%) was sold to non-resident shipping companies.
In 2019, the Company took action to increase the output of environmentally friendly marine fuels compliant with the Russian and international standards, including the marine fuel sulphur content restrictions imposed by MARPOL (Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter) in effect from 1 January 2020. In particular:
- RN-Komsomolsk Refinery began manufacturing RMLS 40 low-sulphur marine fuel (max. 0.5% sulphur content) for the Russian Far East;
- Krasnoleninsky Refinery started the production of DMF-III distilled marine fuel (max. 0.5% sulphur content) for Central Russia;
- Nizhnevartovsk Refinery put DMF-III distilled marine fuel (max. 0.5% sulphur content) into production. The fuel is intended to be sold at river ports in the Volga and Don basins and in Western Siberia.
- Bashneft-Ufaneftekhim began manufacturing RMLS 40 bunker fuel oil (E II category with max. 0.5% sulphur content and E I category with max. 0.1% sulphur content).
Sales of Bitumen Products
Sales of bitumen materials in 2019 reached 2.6 mmt. Sales of road bitumen compliant with the new GOST 33133-2014 standard amounted to 1 mmt, a sizeable increase from 0.6 mmt in 2018.
The domestic market accounted for 98% of total bitumen sales in the reporting period.
Rosneft continues expanding production of an innovative polymer-modified bitumen (PMB), which substantially improves the road surface quality. Sales of PMB in 2019 grew 41% year-on-year to 107 kt.
Sales of Lubricants
In 2019, sales of the Company’s oil business totalled 1,075 kt, up 6% (70 kt) year-on-year. Domestic sales accounted for 712 kt (66% of total sales).
Sales of premium lubricants in the reporting period reached 77 kt.
In 2019, sales of lubricants to end consumers under direct contracts increased by more than 40% (41 kt) year-on-year.