Rosneft’s retail chain ensures uninterrupted supply of high-quality motor fuels to customers in 66 Russian regions, Abkhazia, the Republic of Belarus, and Kyrgyzstan. Rosneft is a leading Russian fuel brand in terms of recognition and quality perception.
As at 31 December 2020, the Company’s retail network comprised 3,057 filling stations, including 61 in Belarus, Abkhazia, and Kyrgyzstan. Our own and leased filling stations operated 2,092 shops. As at 31 December 2020, the Company had 129 oil depots (including two NGV filling stations) with a combined capacity of 2.3 mmcm and approximately a thousand gasoline tanker trucks in operation.
Amid the COVID-19 pandemic, the Company maintained a leading position in the Russian retail market for petroleum products. In 2020, Rosneft’s petroleum product retail sales amounted to 13.3 mmt, while average daily sales per filling station came in at 11.7 t.
In accordance with its retail business strategy, the Company took the following steps in 2020:
- ensured uninterrupted operation of its filling stations during the COVID-19 pandemic, while also maintaining high customer service standards. Rosneft took all the necessary measures to protect the health of its staff and customers at the filling stations. The shops were systematically inspected to ensure there were enough sanitisers and health products to supply the increased demand. All shops and cafés at Rosneft filling stations operated in strict compliance with the guidance on preventive and protective measures issued by the Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing (Rospotrebnadzor);
- constantly worked on solutions for minimising contact and maintaining social distance to support and improve sales. In particular, Rosneft kept developing services allowing customers to pay for fuel and complementary goods from inside the car via mobile apps (Yandex.Fuel, Yandex.Navigator, Yandex.Maps). By the end of 2020, about 1,500 filling stations had been connected to the fuel payment service in Moscow, St Petersburg, Ufa and Novosibirsk, as well as in Krasnoyarsk, Samara, Voronezh, Rostov, Krasnodar and Volgograd together with their respective regions and territories, with 50 multi-purpose filling stations offering contactless payment solutions for food;
- started selling the Pulsar 95 gasoline in the Khabarovsk Territory and the Bryansk Region as part of a project to expand retail sales of its own fuels. As at the end of 2020, the Pulsar 92, Pulsar 95, and Pulsar 100 gasolines were available at over 1,100 filling stations in 33 Russian regions, Euro-6 at over 750 filling stations in eleven regions, and Active at over 130 stations in eight regions;
- assured high quality at all stages of the product journey from refinery to vehicle. The fuel quality was assessed at oil depots and filling stations in all regions where Rosneft operated its retail network, with over 5,000 tests carried out daily in 74 fixed and 17 mobile laboratories;
- in 2020, the Federal Agency for Technical Regulation and Metrology (Rosstandart) conducted 24 independent inspections at eight oil depots and 85 filling stations across Russia. The inspections confirmed the high quality of our motor fuel;
- refurbished 41 filling stations in St Petersburg and the Leningrad, Kursk and Belgorod regions as part of the project to rebrand TNK and PTK stations as Rosneft and BP;
- continued to expand the food offering at filling stations by installing equipment for making hot dogs, sandwiches, and hot beverages at 602 locations;
- promoted healthy eating by running a Breakfasts and Lunches project at Rosneft filling stations and launching a pilot project to offer made-to-order sandwiches;
- continued to develop the kiosk café formats for filling stations and complexes, respectively, opening Zerno-branded kiosks / shops with cafés as part of a new pilot project in Moscow and the Moscow Region;
- to expand the range of services, piloted parcel lockers together with a leading e-commerce company and, at a number of BP multi-purpose filling stations, touchless (automated) car washing;
- tested demand for bundled insurance and service products in categories like cars; healthcare, legal, and advisory services; and travel and property insurance;
- operated a network of 13 CNG units at existing filling stations and a separate NGV station in Stavropol, servicing up to 3,600 vehicles daily. In 2020, the network sold 22 mmcm of natural gas as motor fuel, up 19 % year-on-year. The Company will continue this project. Developing an NGV filling station network in Russia is one of Rosneft’s priorities in the retail business and one of the most important focus areas, since it enables the Company to expand its competitive advantages in the domestic market;
- developed EV charging infrastructure at its filling stations based on demand forecasts and EV market trends to expand its innovative and environmentally-oriented services. We have installed and now operate 14 charging points for electric vehicles at our filling stations, including five fast-charging (50 kW) points in the Moscow and Leningrad regions, Vladivostok and Khabarovsk, and nine slow-charging (22 kW) ones in the Tver Region and the Krasnodar Territory. Rosneft has joined forces with some of Russia’s largest electric power companies to continue expanding its EV charging infrastructure;
- since 2017, all Marketing and Distribution Group Subsidiaries have been implementing plans to reduce internal fuel consumption, resulting in both savings and lower greenhouse gas emissions.
Digital transformation in retail
The Company continues to develop digital communication channels for customers and suppliers.
As at 31 December 2020, we automated measurements at 119 oil depots and more than 2,900 filling stations and provided measuring instruments for nearly 100% of material flows at filling stations and 90% at oil depots.
In 2020, the Company developed a prototype of a monitoring system to enhance end-to-end supply chain control from oil depot to fuel nozzle.
Rosneft also piloted a three-tier ERP system to manage retail sales of petroleum products and complementary goods and services at all stages from filling station to head office. The Company intends to roll out the new system across its retail operations.
The Company tested a blockchain-based electronic workflow solution for ordering complementary goods and supplying them to filling stations.
Rosneft is now piloting an innovative technology that makes it possible to pay for petroleum products and complementary goods and services at filling stations by scanning QR codes via mobile apps of partner banks.
The Company took the following steps to improve digital corporate training resources for filling station personnel:
- developed and introduced at Marketing and Distribution Group Subsidiaries a distance learning course in standards and rules for filling station personnel;
- developed a VR-based simulator to practice unloading tank trucks and piloted training sessions at RN-Moscow's training centre.
Aircraft refuelling business
In 2020, sales of jet fuel from Rosneft refineries reached 2.7 mmt, including 2.6 mmt sold domestically and 0.1 mmt abroad.
The sales structure in 2020 was as follows:
- 1.4 mmt sold to airlines and joint ventures;
- 1.3 mmt sold in bulk, including commodity exchange sales.
In Russia, jet fuel is sold through a chain of Rosneft's own and partner refuelling facilities at 44 airports. The Company also sells jet fuel at ten airports in Spain, Germany, Georgia, the United Arab Emirates, Mongolia, and China.
In 2020, Rosneft expanded its refuelling network both in Russia and abroad by launching:
- operations at the Ulan-Ude airport;
- refuelling services at airports of Barcelona, Stuttgart, Dubai and Beijing.
Rosneft's bunkering business extends to five Russian sea basins and 20 ports, with trading subsidiaries in London and Beijing in addition to ten regional representative offices.
Bunker fuel sales in 2020 amounted to 1.9 mmt, including 34% sold in the domestic market and 66% to non-resident shipping companies.
In 2020, the Company took action to increase the output of marine fuels compliant with the IMO sulphur content requirements (max. 0.5%):
- the Achinsk and Syzran refineries started producing RMLS 40, a low-sulphur marine fuel targeting the Far Eastern market and those in the Black Sea and Northwestern regions, respectively;
- the Nizhnevartovsk Refinery began manufacturing DMF-III, a marine fuel to be sold at river ports in the Volga and Don basins and in Western Siberia.
Over one third of all inland bunkering services in Russia are provided by RN-Bunker.
Sales of bitumen products
Sales of bitumen materials in 2020 reached 2.9 mmt. Sales of road bitumen compliant with the new GOST 33133-2014 standard amounted to 1.1 mmt, up 10% year-on-year.
The bulk of bitumen products (96%) were sold domestically.
Rosneft continues to expand production of an innovative polymer-modified bitumen (PMB) which substantially improves the road surface quality. Sales of PMB in 2020 grew by 110% to 0.22 mmt.
Sales of lubricants
In 2020, sales of the Company’s lubricants and related products totalled 1.05 mmt, with 67% sold domestically and 33% exported.
Sales of premium lubricants grew by 23% to 0.1 mmt.
Angarsk Petrochemical Company launched production of Rosneft Drilltec B2, a state-of-the-art mineral oil base for drilling fluids.
Rosneft supplied premium motor, transmission, and hydraulic oils to BELAZ and to Minsk Automobile Plant (MAZ) for the first fill lubrication of mining trucks and special purpose vehicles.