Operating results

Commerce and logistics

Oil sales

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

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 93 mmt of oil to Russian refineries. In addition to shipments to its Russian refineries in 2020, the Company supplied 4.6 mmt of oil to its partly owned refineries in Germany.

The total sales to third parties in 2020 amounted to 120.6 mmt, including 5.2 mmt of oil sold domestically.

Export channels, %

Oil exports to FSU and non-FSU countries

In the reporting year, Rosneft’s FSU and non-FSU oil exports totalled 115.4 mmt. Eastbound exports, particularly pipeline supplies to China and sales via the Kozmino and De-Kastri ports, are the most profitable for the Company.

In 2020, eastbound supplies, including international trading, amounted to 61.9 mmt, their share in the total external sales reaching 54%. Out of this amount, Rosneft supplied 54.8 mmt, while international traders shipped 7.1 mmt.

In addition, the Company exported 47.2 mmt of oil to Northwestern, Central, and Eastern Europe, Mediterranean and other non-FSU countries, while also shipping 6.3 mmt to the CIS.

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

  • Pipeline: approximately 96 mmt (83.2% of total FSU and non-FSU exports), including 32.7 mmt shipped via ports and around 63.2 mmt transported by pipelines to China, Belarus, Central and Eastern Europe;
  • Rail and mixed transport: 1.9 mmt, or 1.6% of total exports;
  • Other channels, including shipments through the De-Kastri export terminal: 3.6 mmt.

Oil supplies under long-term contracts

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 via Kazakhstan, enable Rosneft to retain its presence in this strategic export market.

Expanding cooperation with oil and petroleum product consumers

In 2020, the Company continued to focus on end consumers. Total oil exports to them were around 67 mmt.

To maintain and expand relationships with end consumers, Rosneft signed a long-term contract with Total Oil Trading in 2020 to supply oil to Leuna Refinery (Total Group) in Germany via the Druzhba pipeline for the period from April 2020 to March 2022. Also in 2020, the Company began oil supplies to Germany under the previously signed annual contracts with Shell and Eni. Additionally, Rosneft and Indian Oil Corporation Limited signed a contract to supply oil to India via the port of Novorossiysk till the end of 2020. In 2020, Rosneft continued working with SOCAR Trading S.A. to supply oil to its STAR Refinery (Turkey) from the port of Novorossiysk, and with ENEOS (JXTG Nippon) to supply ESPO and Sokol crudes to Asia Pacific.

We continue to foster collaboration with end consumers of petroleum products. In 2020, we shipped approximately 0.7 mmt of stable natural gasoline to ENEOS (JXTG Nippon).

The share of oil and petroleum products supplied under long-term contracts (1+ year) exceeded 90% of total exports from Russia to non-FSU countries in 2020.

Key achievements

In 2020, eastbound oil supplies, including international trading, accounted for 54% of total FSU and non-FSU oil exports. Supplies to China under long-term contracts remained robust at 40.0 mmtpa. The share of oil and petroleum products supplied under long-term contracts (1+ year) exceeded 90% of exports from Russia to non-FSU countries.

Oil supplies under long-term contracts