PJSC Tatneft. Annual report 2017
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PJSC Tatneft. Annual report 2017

Oil sales

«In the context of unstable prices in the world markets, the main directions for the progressive development of the Company are to strengthen the vertically integrated structure, to increase the resource base, to intensify the cost-effective processing, and to expand sales channels.» Vladimir Karpov Head of the Oil and Oil Products Sales Department of PJSC Tatneft

The oil produced by the Company is sold in three areas: oil supply for Russian refineries, for export to the CIS member-states and to non–CIS countries. The Company maintains a balance of supply distribution based on strategic priorities and economic feasibility.

In the reporting year about 13 million tonnes of oil were supplied to the domestic market for further processing, including 7,3 million tonnes for the TANECO Complex facilities. 4,7 million tonnes of oil was supplied as raw materials to the TAIF-NK refinery.

The volume of oil exports to non–CIS countries in 2017 was 14,3 million tonnes.

In 2017, in addition to the Transneft system, the resources of oil-producing enterprises with the participation of TATNEFT in the Orenburg and Samara Regions and the Nenets Autonomous Area in the amount of 118,2 thousand tonnes were sold outside the Republic of Tatarstan.
In 2017 the Group exported approximately 73% of all its crude oil sold compared to approximately 61% in 2016, which made it possible to increase revenue from the sale of oil in general by 22,5%. At the same time, the Company provides a full load of its own refining production.
For crude oil export the Group is using transportation services of Transneft, the state-owned monopoly owner and operator of Russia’s trunk crude oil pipelines.

In 2017 the Company delivered 65% of its own crude oil for export through Transneft’s Druzhba pipeline (mainly to Poland, Germany and Slovakia); 4%of crude oil was shipped through Russian Black Sea ports (mainly Novorossiysk) and 31%of crude oil exported through Russian Baltic Sea ports (mainly Primorsk).

SALE OF CRUDE OIL BY THE GROUP, THOUSAND TONNES
REVENUE FROM CRUDE OIL SALES LESS EXPORT DUTIES, RUB BILLION
SHARES OF CRUDE OIL SALES BY THE GROUP AND DESTINATION
SHARE OF REVENUES FROM THE SALE OF CRUDE OIL LESS EXPORT DUTIES BY DESTINATION