In 2012, Gazprom Neft Group exported 16.44 million tonnes of petroleum products, including 13.54 million tonnes to non-CIS countries and 2.90 million tonnes to CIS countries. Exports to non- CIS countries grew by 14.43% compared with 2011. Exports to CIS countries rose by 5.30% over 2011. Overall growth in petroleum product exports during the reporting year was 12.70%.
In the reporting year, crude oil exports by Gazprom Neft Group reached 16.7 million tonnes in absolute terms, or 0.6 million tonnes more than in 2011. Crude oil exports to non-CIS countries increased by 8.4% as compared with 2011. Crude oil exports to CIS countries were 2.5 million tonnes, or less than in 2011. An 18.0% drop in revenues from crude oil sales in CIS countries from 2011 to 2012 was due to lower sales volumes (down by 16.5%).
Gazprom Neft Trading GmbH
Oil is exported to non-CIS countries through Gazprom Neft Trading GmbH, Austria, a foreign trading company within the Group that supplies petroleum products manufactured by the Company to end consumers. The establishment of a trading subdivision for centralized exports of products is in line with common practices by the majority of the largest international vertically integrated companies (BP, SHELL, ExxonMobil, TOTAL, ENI, etc.), national oil companies (Petro China, Aramco, Kuwait Petroleum, etc.) and leading Russian companies: Rosneft, Bashneft, Lukoil.
The Company has identified the following advantages of channeling crude oil and petroleum product exports through Gazprom Neft Trading GmbH:
- Geographical proximity to the main international oil trading centers, optimized administrative costs in customer negotiations, less paperwork and faster decision making.
- The employment of both Russian and foreign experts backed by experience with international companies and deep knowledge of world oil markets creates competitive advantages for Gazprom Neft Trading that enable it to export the Company’s oil to international markets in an efficient manner.
- Potentially expeditious mutual settlements with contractors with no need for currency regulation and control procedures.
- A more flexible access to hedge operations through both leading international commodity exchanges (ICE, NYMEX) and off-exchange contractors due, inter alia, to the absence of currency regulation and control procedures.
- Expeditious oil tanker tonnage chartering.
- Favorable terms of cooperations with leading international banks: ING, BNP Paribas, RBI, and Credit Agricole, owing to the trader’s long-term record in the EU zone.
- Minimized risks from not submitting documents required by Russian laws to confirm a VAT zero rate for petroleum product exports, and optimized costs for collecting a full package of documents.
In 2012, Gazprom Neft Trading sold 14.23 million tonnes of oil, or 8.5% more than in 2011.
In 2012, GPN Trading exported 12.80 million tonnes of petroleum products, including 12.44 million tonnes to non-CIS countries and 0.36 million tonnes to CIS countries.
Exports to non-CIS countries grew by 14.5% over 2011. Petroleum product exports to CIS countries dropped by 46.7% compared with 2011.
In 2012, overall petroleum product exports by GPN Trading rose by 10.9% compared with 2011.