Production Planning and Logistics
2019 Performance Highlights
- The Company met its targets for oil and petroleum product shipments.
- Refineries’ production programmes and petroleum product sales destinations were chosen to maximise consolidated netback.
- Rosneft and Russian Railways extended their petroleum product transportation contracts providing for discounts on railway transportations from the Saratov Refinery, Samara group of refineries and refineries in Eastern Siberia (Angarsk, Achinsk and Komsomolsk), and signed a contract for discounted railway transportations from the Ufa group of refineries.
- The Company launched an initiative to synchronise daily production and shipment plans and performed factor analysis to identify deviations across the branches of RN-Trans to decrease the downtime of empty freight cars.
Performance Priorities for 2020
The Company views improvement of production programmes for its refineries, optimisation of shipment schedules and reduction of costs as its top priorities. In 2020, the Company will continue working to achieve the above goals through:
- optimisation of production programmes for the refineries and sales of petroleum products to the most profitable destinations;
- tendering out contracts for the transportation and forwarding of oil and petroleum products from all of Rosneft's loading terminals, and awarding five-year contracts to rolling stock operators based on the bidding results;
- reduction of logistics costs associated with the transportation of petroleum products by different modes of transport, optimisation of costs associated with the Company’s own logistics assets, elimination of bottlenecks in logistics, and finding new and efficient logistics routes;
- fulfilment of commitments regarding railway shipments of petroleum products to extend the discounts offered by Russian Railways to the Company, and further negotiations with Russian Railways on discounts;
- development of the Company’s shipping services following the commissioning of its new tanker fleet (several Aframax tankers).