Sibneft Expands Retail Network Into New Regions

Moscow, 13 June 2002; Sibneft has reached agreement to acquire a network of filling stations in the Tomsk region, one of three new markets which the company is entering this year. Sibneft recently unveiled its first gasoline station in Moscow, and the company has also entered the Krasnoyarsk market, where it is developing its network of dealers.

Sibneft aims to achieve retail sales in the Tomsk region of around 6,000 tonnes of refined products per month, and secure a 20% share of the region’s gasoline market. The company this year aims to add almost 200 outlets to its network of filling stations, the bulk of them through acquisitions, and total investment in its retail network is forecast at $61 million. Sibneft plans to increase domestic retail sales of gasoline and diesel by more than 18% from 2.3 million tonnes in 2001 to over 2.7 million tonnes this year.

Sibneft’s refinery throughput is growing more rapidly than oil production, following the start of processing at the Moscow refinery. Refinery runs in April were up 38% year-on-year and totaled 342,000 barrels per day (1.42 million tonnes), including 255,000 barrels per day (1.06 million tonnes) at the Omsk refinery and 87,000 barrels per day (360,000 tonnes) at the Moscow refinery.