Performance Results

Commerce and Logistics

Oil sales

Rosneft pursues a policy aimed at ensuring a balanced mix of oil monetisation channels, including refining at its own facilities in Russia and Germany, export sales under long-term contracts, tender-based spot transactions and domestic sales.

The Company continuously monitors the cost efficiency of its oil monetisation channels to maximise the share of high-margin channels in its overall sales structure.

In the reporting year, the Company supplied about 100.1 mmt of oil to Russian refineries. In addition to shipments to its refineries in Russia during 2019, the Company supplied 2.8 mmt of own oil to German refineries where it holds a stake.

The total sales to third parties in 2019 amounted to 155.0 mmt, including 5.6 mmt of oil sold domestically.

Oil Exports to FSU and Non-FSU Countries

In the reporting year, Rosneft’s FSU and non-FSU oil exports totalled 149.4 mmt. Eastbound exports, in particular pipeline supplies to China and sales via the Kozmino and De-Kastri ports, are the most profitable for the Company. In 2019, supplies in eastern direction, including international trading, reached 79.7 mmt, up 35% year-on-year. Oil produced in Russia accounted for 53.9 mmt of these supplies (up 7% year-on-year), with another 25.8 mmt sold through international trading units, which represents an almost threefold increase year-on-year. In addition, the Company exported 61.0 mmt of oil to Northwestern, Central, and Eastern Europe, the Mediterranean and other non-CIS countries, while also shipping 8.7 mmt to the CIS.

The bulk of crude oil is exported via the Transneft system, including the trunk pipeline network and ports. In the reporting year, we primarily exported crude oil via the following channels:

  • Pipeline: approximately 114.4 mmt (76.6% of total FSU and non-FSU exports), with 49.5 mmt of this volume shipped via ports, and around 64.9 mmt through pipelines to China, Belarus, and Central and Eastern Europe;
  • Rail and mixed transport: 2.2 mmt, accounting for 1.5% of total exports, excluding the effect of asset acquisition. These were mainly supplies via the Caspian Pipeline Consortium (CPC) running from the Tengiz field in Western Kazakhstan to the port of Novorossiysk;
  • Other, including shipments through the De-Kastri export terminal: 4.0 mmt.

Rosneft joined the CPC in 1996. It holds a 7.5% stake in the project via Rosneft Shell Caspian Ventures Ltd., a joint venture between the Company (51%) and Shell (49%).

Breakdown of Exports, %

Key Achievements

  • In 2019, eastbound oil supplies, including international trading, soared 35% to 79.7 mmt, with around 58.3 mmt shipped to China, up 17% year-on-year.
  • Shipments under a long-term contract with CNPC, our key counterparty, remained robust at 40.0 mmtpa.
  • Rosneft’s trading subsidiaries shipped 28.7 mmt of third-party oil to non-FSU countries, many times more than in 2018.

Oil Supplies under Long-Term Contracts

In 2019, the Company continued supplying oil to China National Petroleum Corporation (CNPC) under the China-Russia government agreement. The supplies, which total 40.0 mmtpa, including 10.0 mmt transported through Kazakhstan, enable Rosneft to retain its presence in this strategic export market.

Expanding Cooperation with Oil and Petroleum Product Consumers

In 2019, the Company continued to focus on end-consumers, with exports exceeding 72 mmt.

In an effort to maintain and strengthen cooperation, we signed a two-year contract with PKN Orlen S. A. to supply oil to Poland via the Druzhba pipeline. We also obtained a three-year extension for the existing contract with this company to ship oil to refineries in the Czech Republic. Furthermore, Rosneft made an agreement with JXTG Nippon to supply ESPO and Sokol crude in 2020.

We continue to foster collaboration with end-consumers of petroleum products. In 2019, we shipped 0.7 mmt of stable natural gasoline to JXTG Nippon.

The Company steps up domestic sales of vacuum gasoil processed at TANECO and Orsknefteorgsintez refineries. Over the year, we supplied 27.4 kt of this product.