Refining, marketing, and distribution

We aim to use the natural resources we extract with maximum efficiency. After completing a wide-ranging modernization program at Russian and foreign refineriesAt our own refineries, including Zeeland., the refining depth of oil reached 86.7% and 86.9%, respectively, at these refineries. Over the past three years light product yield has risen by almost 10 percentage points, while the annual increase in the level of primary oil refining at Russian and European own refineries and contracted refineries was 10% (2017 versus 2016). In 2017 a decision was taken to build a delayed coker complex at the Nizhny Novgorod Refinery, similar to the unit operating at the Perm Refinery, which will make it possible to increase the light products yield by more than 10 percentage points.

Our priority in this area of activity is to boost operating efficiency and to ensure that the structure of our output matches the needs of consumers and market demand.

In 2017 we achieved the highest level of marine fuel sales for five years, including environmentally friendly marine fuelFuel that meets MARPOL requirements (the International Convention for the Prevention of Pollution from Ships, 1973, as amended 1978, MARPOL 73/78) regarding the content of pollutants in air emissions of combustion products in sulfur emission control areas (SECA) – the North Sea and Baltic Sea, and part of the US coast – as well as waterways of the European Union. sales. As part of our strategy in this area, we are preparing to produce marine fuel with an even lower sulfur content (down to 0.5%), in order to ensure timely compliance with the requirements of the International Maritime Organization (IMO), pursuant to which such fuel must be in use from 2020.

At the end of 2017 our marketing network for motor fuels comprised 5,258 filling stationsCompany-owned, leased, and franchised, including mothballed stations., 50% of which were located in Russia.

In 2017 we continued to develop our advanced electronic fuel quality control system, which allows us to track the movement of petroleum products from refineries to end users.