Crude oil and gas sales

Crude oil sales

In 2018, crude oil sales decreased 8.6% year-on-yea r to 24.26 mt as production increased at Russian refineries of the Group.

Domestic sales dropped 22.6% to 4.31 mt, and total oil exports decreased 6% to 18.70 mt. By contrast, oil sales to global markets rose 17.9% to 1.25 mt on the back of increased production in Iraq.


Crude oil sales (mt)

In 2018, Gazprom Neft's fleet received enough vessels to ensure uninterrupted service of the Company's fields in the Arctic region. Two cutting-edge icebreakers Alexander Sannikov and Andrey Vilkitsky entered service in the reporting year.

In addition to that, Gazprom Neft's vessels operating in the Arctic include six Arc7 tankers of the Shturman (Navigator) series (with a capacity of 42,000 t each) and one Arc5 tanker with a capacity of 19,800 t.

With the fully-fledged Arctic fleet, Gazprom Neft ensures year-round oil delivery to global markets with maximum cost efficiency and minimal risk of interruptions caused by external negative factors. In 2018, Novy Port crude was shipped to nine countries, including the UK, France, Norway and Netherlands.

Technology
Russian-made state-of-the-art icebreakers

22
MW
diesel electric propulsion capacity
Max. 30 
km/h
speed
40
days
autonomous operation
- 50
°C
extremely low temperature operation

Comprehensive logistics is an essential element of the Company's projects in the Arctic region as it ensure continuous year-round transportation of crude oil from the Arctic fields.

In 2018, Gazprom Neft's Arctic fleet was joined by Alexander Sannikov, a high-tech icebreaker built at the Vyborg shipyard (Leningrad Region). The vessel is named after Alexander Sannikov, an ex-head of Gazprom Neft Oil Refining Division, who supervised large-scale projects of the Company.

In August, Alexander Sannikov started escorting tankers in the Gulf of Ob from the Arctic Gates terminal to the storage tanker moored in the Kola Bay. In December, the fleet was joined by the second icebreaker named after Russian hydrographer, geodesist and polar explorer Andrey Vilkitsky.

The two icebreakers are state-of-the-art vessels in their class. They are highly manoeuvrable and need just 60 seconds to make a 360-degree turn. Capacity of their propulsion units is comparable to those of nuclear icebreakers and allows them to move through 2-meter thick ice.

The icebreakers are equipped with state-of-the-art automatic power supply and navigation systems. Their electronic equipment can be controlled remotely. Like other Gazprom Neft's facilities, the vessels are designed around the zero-waste principle: all ship-generated waste is either recycled or stored until the ship returns to the port.

On-board equipment includes:

  • 2 motor boats for spill response activities;
  • A helipad for heavy helicopters of Mi-8 class;
  • Fire-fighting systems with a capacity of 2,500 cubic meters per hour;
  • 2 lifeboats, 1 auxiliary motor boat, and 6 rescue rafts.

Tasks of Gazprom Neft's icebreaker fleet include:

  • Escorting tankers in ice-covered seas;
  • Safety measures during tanker mooring and loading;
  • Protection of the Arctic Gates terminal from ice field movement;
  • Transportation of personnel and small cargoes to the terminal;
  • Automated remote control of the terminal.

The icebreakers are equipped for rescue and emergency response missions and are capable of:

  • Fighting fires at vessels and onshore facilities accessible from sea;
  • Managing oil spill response activities;
  • Rescuing vessels in distress;
  • Searching and rescuing people.
Technology
Captain of the Arctic
66.5
million
solutions analysed hourly by the system to select the best option
2
hours
3-year hour-by-hour shipment schedule
5
minutes
required to build a monthly shipment schedule
3
years
maximum planning horizon

To manage its Arctic fleet, the Company has developed Kapitan (Captain), an interactive oil transportation planning system. The system is intended to maximise efficiency of oil transportation from the fields to end customers by fully synchronising the entire logistics chain of production and tanker availability, minimising downtime and improving the fleet utilisation.

The Kapitan system has fleet planning and scheduling capabilities and provides analytics based on accumulated statistical data. It analyses available cargo capacity and generates monthly oil shipment schedules for a period of up to three years. The shipment scheduling and approval time was reduced from three business days to two hours.

The Kapitan system boosts revenues by increasing the number of trips while reducing their duration, cuts costs through efficient utilisation of the fleet and tank farms, and manages operational and environmental risks.

In the future, the Kapitan system will be integrated into a comprehensive program for modernisation and expansion of the transport infrastructure in the Russian Arctic and contribute to fulfilling Russia’s strategic goal of increasing cargo traffic along the Northern Sea Route.

Gas sales

In 2018, domestic and international sales of gas (natural and associated gas, excluding Gazprom Neft's share in Northgas and Arcticgas joint ventures) declined 5.7% year-on-year on the back of declining production of associated petroleum gas and natural gas by the Company's subsidiaries.


Gas sales (bcm)