Refining

The Gazprom Neft’ oil–refining process is based on the high level of technology applied at its oil refineries and assisted by their favourable geographical locations.

 

The Company’s main oil-processing asset, the Omsk Oil Refinery, is one of the most advanced high-tech oil refineries in Russia and ranks among the largest refineries in the world. The Refinery’s installed capacity composes 19.5 million tons per year. In 2006, the Refinery’s throughput totalled 16.3 million tonnes of crude oil. It enjoys the prestige of having the highest oil conversion rate in the whole of Russia’s oil refining industry, at 84.45 percent in 2006. This is 12.8 percent higher than the average for the industry.

 

Smooth operation of the Omsk Oil Refinery enables the Company to maintain its leading position in sales of petroleum products in Western Siberia. The Omsk Oil Refinery is linked via a pipeline network to JSC Gazprom Neft’s major oilfields, thus providing supplies of high-quality crude oil. The distance between the oilfields and the Refinery is the shortest in Western Siberia. These factors help minimise the Company’s costs and market its oil products in regions located far from the Refinery.

 

At present, an upgrading program is under way at the Omsk Oil Refinery. Within this program, in 2005, the reconstruction of the catalytic reforming plant was completed. In 2006, an aromatic hydrocarbons production facility was upgraded. The main medium-term priorities include the commissioning of a new diesel oil hydro-treating unit and overhauling of hydro-treating and catalytic cracking units. Creating new and modernising existing capacities will make it possible for the Omsk Oil Refinery to upgrade its products to Euro 4 and 5 standards.

 

Apart from the Omsk Oil Refinery, JSC Gazprom Neft’ has participatory holdings in SlavNeft’ refineries such as YaroslavNeft’eorgsitez, Yaroslavl Oil Refinery and Mozyr Oil Refinery in Belarus; it also holds a stake in the Moscow Oil Refinery. Thus, Gazprom Neft’ currently possesses sufficient resources to meet the demand for petroleum products in Central Russia. Consolidating its market positions in this territory is one of the Company’s strategic goals.