In 4Q 2020, Rosneft commenced the industrial use of an in-house hydrotreatment catalyst. In October 2020, a commercial batch of the catalyst was applied at the diesel hydrotreater unit 24/7-2bl. of Ryazan Oil Refining Company. Earlier, a commercial testing of the catalyst produced by RN-Kat, a company specializing in catalyst production, was successfully conducted at the refineries of Ufa Group. This is the first hydrotreating catalyst for the Russian oil refining industry capable of fully substituting foreign alternatives for production of Euro-5 ultra-low-sulfur diesel fuel with the content of sulfur of less than 10 ppm. In 2020, scientists of the Rosneft United Research and Development Centre developed innovative catalysts for production of winter and arctic grades of diesel fuel. The catalysts are based on noble metals and their key feature is the ability to process high-sulfur feedstock to produce ultra-low sulfur fuels. In Q4 2020, the pilot production unit of NCP produced the first commercial batch of isodeparaffinization catalysts for diesel fuel intended for production of winter and arctic diesel fuel without pore point depressants at Kuibyshev Refinery. Crude oil and petroleum products sales In Q4 2020, the international crude oil supplies to non-CIS countries amounted to 23.8 mmt, a 1.2% increase QoQ. Crude supplies in eastwards amounted to 13.4 mmt, or 56.3% of the total international crude oil supplies to non-CIS countries. In Q4 2020, the volume of crude oil export from Russia to non-CIS countries constituted 22.1 mmt, with the share of crude oil supplies under contracts with a validity period of one year or longer exceeding 90% of the indicated volume. In 2020, oil supplies to non-CIS countries amounted to 109.1 mmt, while the volume of crude oil export from Russia to non-CIS countries was 96.0 mmt. In 4Q 2020, the Company sold 24.7 mmt of petroleum products, which is a 2.5% increase QoQ. Petroleum products export from Russia amounted to 11.4 mmt, which is a 20.0% increase QoQ. The share of petroleum products supplies under contracts with a validity period of one year or longer exceeded 90% of the indicated volume. In 2020, the Company sold 101.3 mmt of petroleum products, which is a 9.6% decline YoY. Sales of petroleum products to non-CIS countries dropped by 8.4% YoY and amounted to 58.7 mmt. In 2020, the volume of petroleum products exported from Russia to non-CIS countries constituted 46.0 mmt, domestic sales of petroleum products amounted to 37.2 mmt, and petroleum products sales in CIS countries amounted to 3.5 mmt. In 2020, the Company continued to actively trade on the St. Petersburg International Mercantile Exchange, consistently meeting the needs of the domestic market of the Russian Federation. In Q4 2020, the Company exceeded the required quotas for exchange-traded motor fuel sales by 3 times. In 2020, in the territorial waters of the Russian Federation, a total of 1,584 th. t of bunker fuel, including 1,343 th. t of low-sulfur marine fuels fully complying with the MARPOL regulations, was supplied to end-consumers, namely domestic and foreign ship owners. More than 46% of this volume accounted for low-sulfur residual marine fuel RMLS 40 (621 th. t). A total of 284 th. t of marine fuel, including 130 th. t of marine fuel with sulfur content of up to 0.5%, was sold in foreign ports. Retail business As of the end of 2020, the Company's retail network comprised 3,057 filling stations and complexes, including 2,996 filling stations and complexes in the Russian Federation. In 2020, the Company ensured uninterrupted operation of filling stations and complexes, maintaining high standards of retail network customer service. All the necessary measures were taken to protect the health of personnel and customers of retail sites. In Q4 2020, despite the resumption of a number of restrictive measures related to the spread of the coronavirus infection, the Company's retail business demonstrated stable performance. Thus, the volume of retail sales in H2 2020 exceeded the level of H1 2020 by 17%. The Company continued to work actively with corporate customers, the volume of sales to which in Q4 2020 almost reached the level of Q4 2019, preceding the introduction of restrictive measures. In Q4 2020, the Company started introducing and piloting the following services: postal terminals in partnership with OZON were installed, a pilot project for contactless car washing (robotic car wash) was implemented at a number of BP multi-purpose filling stations, testing began of the demand for banking and insurance services among clients of the filing stations in the Moscow Region. Within the framework of the development of 'kiosk-at-filling station' and 'café-at-filling complex' formats in the Moscow Region, in Q4 2020 a pilot project was implemented to launch seven facilities (kiosks/stores with cafes) under "Zerno" brand. The Company has also been consistently developing the services for contactless remote payment service for fuel and related products through the Yandex.Fuel, Yandex.Navigator, and Yandex.Maps mobile applications. As of the end of Q4 2020, about 1,500 filling stations were connected to the contactless fuel payment service, while contactless food payment service was available at 50 BP multi-purpose filling stations. As of the end of Q4 2020, 1.7 mln virtual loyalty cards were issued, which is a 20% increase QoQ. As part of the development of the branded fuel retail supplies, in Q4 2020 the sale of branded gasoline Pulsar-95 started in the Khabarovsk Region. As of the end of 2020, Pulsar gasolines have been sold in 33 regions of Russia at more than 1,100 filling stations. In Q4 2020, two fast-charging stations for electric cars were installed at Rosneft's filling complexes in the Khabarovsk Region as part of cooperation with RusHydro. International business In October 2020, the Board of Directors of Nayara Energy Limited, in which Rosneft holds a 49.13% stake, made a final investment decision on the implementation of the first stage of Vadinar Refinery Development Project in India. The first stage involves organization of petrochemical production, including construction of new units capable of producing up to 450,000 t of polypropylene per year by 2023, and entry into the Indian petrochemical market. Rosneft Deutschland GmbH, a Rosneft subsidiary, started supplies of two new grades of its own polymer-modified bitumen product (PMB), Alfabit, to Switzerland. New Alfabit grades have enhanced performance properties such as higher elastic recovery value (30% higher than classic PMB grades), and an expanded plasticity range to ensure resistance of the road pavement to temperature fluctuations. Key operating results for 4Q and 12M 2020: 4Q 3Q QoQ 4Q YoY 2020 2019 YoY '20 '20 '19 Hydrocarbon production (kboepd) 5,048 4,898 3.1% 5,814 (13.2)% 5,186 5,791 (10.4)% Liquids production (mmt) 49.46 48.51 2.0% 58.03 (14.8)% 204.51 230.25 (11.2)% Gas production (bcm) 16.08 14.96 7.5% 17.22 (6.6)% 62.83 66.95 (6.2)% Development drilling (th. km)* 3,041 3,056 (0.5)% 2,223 36.8% 10,947 10,034 9.1% 2D seismic (linear km)* 447 803 (44.3)% 726 (38.4)% 1,418 2,871 (50.6)% 3D seismic (sq. km)* 1,678 2,549 (34.2)% 1,578 6.3% 7,576 11,316 (33.1)% Oil refining (mmt) 25.80 25.46 1.3% 28.33 (8.9)% 103.98 110.23 (5.7)% At Russian refineries 23.05 22.52 2.4% 25.51 (9.6)% 93.01 100.10 (7.1)% Outside Russia 2.75 2.94 (6.5)% 2.82 (2.5)% 10.97 10.13 8.3% Refining depth 73.6% 75.7% (2.1) p.p. 73.0% 0.6 p.p. 74.5% 74.4% 0.1 p.p. Product output in Russia (mmt) 22.25 21.76 2.3% 24.72 (10.0)% 90.01 96.78 (7.0)% Gasoline 3.36 3.70 (9.2)% 3.61 (6.9)% 13.30 15.13 (12.1)% Naphtha 1.37 1.25 9.6% 1.58 (13.3)% 5.67 5.62 0.9% Diesel fuel** 7.49 7.33 2.2% 8.23 (9.0)% 30.51 32.63 (6.5)% Fuel oil 5.71 5.10 12.0% 6.49 (12.0)% 22.17 23.96 (7.5)% Kerosene 0.51 0.71 (28.2)% 0.72 (29.2)% 2.61 3.35 (22.1)% Petrochemicals 0.41 0.29 41.4% 0.42 (2.4)% 1.52 1.54 (1.3)% Other 3.40 3.38 0.6% 3.67 (7.4)% 14.23 14.55 (2.2)% Product output outside Russia (mmt) 2.87 3.06 (6.2)% 2.99 (4.0)% 11.40 10.68 6.7% Light products yield 56.4% 58.4% (2.0) p.p. 56.7% (0.3) p.p. 57.1% 57.6% (0.5) p.p. Sales volumes Crude oil (mmt) 27.4 26.7 2.5% 41.6 (34.1)% 120.6 155.0 (22.2)% International sales to non-CIS 23.8 23.5 1.2% 37.9 (37.2)% 109.1 140.7 (22.5)% International sales to CIS 2.4 1.9 25.5% 2.2 9.1% 6.3 8.7 (27.6)% Domestic market 1.2 1.3 (7.3)% 1.5 (20.0)% 5.2 5.6 (7.2)% Petroleum products (mmt) 24.7 24.1 2.5% 29.5 (16.3)% 101.3 112.0 (9.6)% International sales to non-CIS 14.2 12.5 13.6% 18.0 (21.1)% 58.7 64.1 (8.4)% International sales to CIS 0.8 0.8 5.4% 0.8 (7.5)% 3.5 3.7 (5.4)% Domestic market 9.2 10.3 (10.7)% 10.3 (10.7)% 37.2 41.4 (10.1)% Sales of bunker fuel to end-users 0.5 0.5 (5.2)% 0.4 9.3% 1.9 2.8 (32.1)% Petrochemical products (mmt) 0.6 0.6 24.8% 0.7 (10.1)% 2.4 2.6 (7.7)% International sales 0.2 0.2 36.7% 0.3 (18.5)% 0.8 1.0 (20.0)% Domestic market 0.4 0.4 19.3% 0.4 (7.0)% 1.6 1.6 (0.7)%
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February 12, 2021 06:01 ET (11:01 GMT)