Interfax - CNA 2 Pervaya Tverskaya- Yamskaya Moscow, 127006, Russia Tel. (7-499) 250-2922 cna@interfax.ru http://www.ispark.ru RUSSIA'S OIL SECTOR IN 2010-2011 February 2011 MARKET SURVEY TABLE OF CONTENTS RUSSIA S OIL SECTOR: MAJOR TRENDS...5 Oil sector in Russia's economy... 5 Russia's economic performance... 5 Russia's oil sector via GDP... 6 Russia's oil production: major trends... 8 Oil reserves... 8 Exploration and production drilling... 9 Oil wells... 14 Trends in oil production in 2010... 20 Russia's oil companies: oil output in 2010... 21 Gas production by oil sector... 27 Russia s oil refining industry... 30 Primary refining... 30 Petroleum products output... 34 Gasoline... 35 Jet kerosene... 36 Diesel fuel... 37 Heating oil... 38 Russian market for oil products... 40 Major trends...40 Regional markets for gasoline... 41 Regional markets for diesel fuel... 45 Russia's exports of oil and petroleum products... 49 Crude oil export... 49 Exports of oil products... 53 Oil export: transportation issues... 57 Oil industry: regulation issues in 2010... 60 RUSSIAN OIL MAJORS...63 LUKOIL... 63 Lukoil: structure... 63 Lukoil: overview... 64 Lukoil in 2010-2011: operations summary... 64 Lukoil: key financials an ratios... 70 Rosneft... 71 Rosneft: structure... 71 Rosneft: overview... 72 Rosneft in 2010-2011: operation summary... 73
Russia's Oil Sector in 2010 Rosneft: key financials an ratios... 81 TNK-BP... 83 TNK-BP: structure... 83 TNK-BP: overview... 84 TNK-BP in 2010-2011: operation summary... 84 TNK-BP: key financials an ratios... 90 Surgutneftegas... 91 Surgutneftegas: structure... 91 Surgutneftegas: overview... 92 Surgutneftegas in 2010-2011: operations summary... 92 Surgutneftegas: key financials and ratios... 94 Gazprom Neft... 95 Gazprom Neft: structure... 95 Gazprom Neft: overview... 96 Gazprom Neft in 2010-2011: operations summary... 96 Gazprom Neft: key financials an ratios... 100 Tatneft... 101 Tatneft: structure... 101 Tatneft: overview... 102 Tatneft in 2010-2011: operations summary... 102 Tatneft: key financials an ratios... 105 Slavneft... 106 Slavneft: structure... 106 Slavneft: overview... 107 Slavneft in 2010-2011: operations summary... 107 Slavneft: key financials an ratios... 109 Russneft... 110 Russneft: structure... 110 Russneft: overview... 111 Russneft in 2010-2011 operations summary... 111 Russneft: key financials and ratios... 113 AFK Sistema (oil segment)... 114 AFK Sistema (oil segment): structure... 114 AFK Sistema (oil segment): overview... 115 AFK Sistema (oil segment) in 2010-2011: operations summary... 115 AFK Sistema (oil segment in the Republic of Bashkortostan): key financials... 118 2
Russia's Oil Sector in 2010 LIST OF TABLES Table 1 Disparities in Reserves of Russia's Oil Companies under Russian and International Classifications9 Table 2 Production and Exploration Drilling in Russia in 2006-2010...10 Table 3 Ranking of Russia's Oil Companies by Volume of Exploration Drilling in 2010, '000 meters...10 Table 4 Exploration Drilling by Russian Companies in 2010, '000 meters...11 Table 5 Ranking of Russia's Oil Companies by Volume of Production Drilling in 2010, '000 meters...12 Table 6 Production Drilling by Russian Companies in 2008-2010, '000 meters...13 Table 7 Russian Oil Wells Fund in 2010...16 Table 8 Bringing-In of New Oil Wells by Companies in Russia in 2009-2010, (units)...17 Table 9 Ranking of Russian Oil Companies by Oil Output in 2006-2010, 000 barrels...22 Table 10 Oil Production of Downstream Units of Russian Oil Companies and Medium Oil Producers in 2007-2010, 000 barrels...24 Table 11 Ranking of Russia's Oil Companies by Gas Output in 2010, mln cub meters...27 Table 12 Gas Output by Downstream Units of Russian Oil Companies in 2007-2010, mln cub meters...28 Table 13 Share of Export of Key Petroleum Products in Output in 2006-2010...31 Table 14 Ranking of Russian Oil Companies by Primary Oil Refining in 2010, 000 barrels...31 Table 15 Primary Refining at Upstream Units of Russian Oil Companies and Independent Refineries in 2007-2010, 000 barrels...33 Table 16 Russia s of Key Petroleum Products in Output in 2006-2010, million barrels...34 Table 17 Ranking of Top Russian Companies by Gasoline Production in 2010, '000 barrels...36 Table 18 Ranking of Top Russian Companies by Production of Aviation Kerosene in 2010, '000 barrels..37 Table 19 Ranking of Top Russian Companies by Production of Diesel Fuel in 2010, '000 barrels...38 Table 20 Ranking of Top Russian Companies by Production of Heating Oil in 2010, '000 barrels...39 Table 21 Petroleum Products Supply to Russian Market in 2008- Jan.-Nov.2010, 000' barrels...41 Table 22 Ranking of Russia s Federal Districts by Gasoline Shipments in 2010, share in the total...42 Table 23 Ranking of Top Russia s Regions by Gasoline Shipments in 2010, share in the total...43 Table 24 Oil Refineries Shipments of Gasoline to Consumers by Regions in 2008-2010, 000' barrels...43 Table 25 Ranking of Russia s Federal Districts by Diesel Fuel Shipments in 2010, share in the total...45 Table 26 Ranking of Top Russia s Regions by Diesel Fuel Shipments in 2010, share in the total...46 Table 27 Oil Refineries Shipments of Diesel Fuel to Consumers by Regions in 2008-2010, 000' barrels46 Table 28 Russia s Crude Oil Exports in 2005-2010, million barrels...49 Table 29 Ranking of Russia s Companies by Oil Exports to Outside the CIS in 2010, '000 barrels...50 Table 30 Breakdown of Oil Exports by Russian Companies to Outside the CIS by Main Routes in 2006-2010...51 Table 31 Russia's Non-CIS Oil Exports by Destinations in 2009-2010...52 Table 32 Breakdown of Russia Crude Oil Exports to CIS by Country in 2007-2010...53 Table 33 Russia s Oil Products Exports in 2006-2010, 000' barrels...54 Table 34 Russia s Export Markets for Gasoline by Volume in 2009-2010...55 Table 35 Russia s Export Markets for Diesel Fuel by Volume in 2009-2010...55 Table 36 Russia s Export Markets for Fuel Oil in 2009-2010...56 3
Russia's Oil Sector in 2010 LIST OF GRAPHS Graph 1 Russia's GDP Growth in 1999-2010, per cent...5 Graph 2 Russia's Oil Sector via GDP in 1999-2010, annual growth...7 Graph 3 Share of Idle Wells in Russia's Oil Sector in 2002-2010...15 Graph 4 Ranking Russian Oil Companies by Share of Idle Wells in 2010...15 Graph 5 Bringing-In of New Oil Wells in Russia in 2004-2010, (units)...17 Graph 6 Russia s Oil Output in 1995-2010, mln barrels...20 Graph 7 Ranking of Russian Oil Companies by Oil Output Growth in 2010...22 Graph 8 Breakdown of Russia's Oil Production by Top Companies in 2006-2010...23 Graph 9 Primary Refining of Oil in Russia in 1996-2010, mln barrels...30 Graph 10 Breakdown of Russia's Oil Refining by Top Companies in 2007-2010...32 Graph 11 Russia s Output of Key Petroleum Products in 1996-2010, mln barrels...35 Graph 12 Sales of Petroleum Products in Russia's Market in 2006-2010, '000 barrels...40 Graph 13 Breakdown of Russia's Oil Exports to Outside the CIS by Main Routes in 2002-2010...50 Graph 14 Breakdown of Russia's Oil Exports by Sea Ports in 2002-2010...52 Graph 15 Breakdown of Russia s Oil Products Exports by Value in 2002-2010...54 4
INTERFAX - CORPORATE NEWS AGENCY Phone: +7 495 2502922 Fax: +7 495 2502584 E-mail: cna@interfax.ru http://www.ispark.ru Publications Available Hard Copy or E-Mail Russia s Meat and Meat Products Market in 2010. January 2011 The survey provides an insight in meat and meat products market in Russia, retail prices by key products and regions, meat and poultry farming, import penetration, major trends in meat-processing industry, regional production, key holdings as well as ranking of major producers. The survey also studies financial performance of meat-processing industry. Russia s Oil Refining Sector in 2010. November 2010 The survey provides an insight in major trends in Russia s oil refining in 2010 (primary refining, output of gasoline, jet kerosene, diesel fuel, fuel oil, lubricants by companies, regional markets for petroleum products, price trends, exports of oil products by volume and destinations) as well as financial performance of the sector. The survey covers performance downstream units of 7 Russian oil companies in 2009 (Rosneft, Lukoil, Surgutneftegaz, TNK-BP, Gazprom Neft, Russneft, Slavneft) and refining sector of AFK Sistema. Russia's Fertilizer Industry in 2009-2010. November 2010 The survey provides an insight in major trends in development of Russia s fertilizer industry, output of nitrogen, phosphate and potash fertilizers, exports by volumes and destinations, regional production, holding's structure (EuroChem, Uralkali, Acron Holding, Phosagro, Silvinit Group, UralChem, SIBUR-Fertilizers), performance of independent producers (Togliattiazot, Kuibishevazot, Minudobreniya). The survey also studies in financial positions of Russia s fertilizer industry. Russia's Top Holdings at a Glance: Business Priorities and Key Companies. October 2010 The survey provides an insight in business models of 19 top holdings (Gazprom, Lukoil, Alfa Group, Rosneft, Renova, Basic Element, Surgutneftegaz, Severstal,
Norilsk Nickel, Evraz Group, AFK Sistema, Russian Technologies, Magnitogorsk Iron & Steel Works, Novolipetsk Steel, Mechel, Metalloinvest, Tatneft, TMK, Urals Metallurgical and Mining Company). The survey reveals the holdings structure, distribution of major assets by industries as well as key drivers of holdings growth. Major Russian Ferrous and Non-Ferrous Metals Holdings in 2009-2010. October 2010 The survey provides an insight in structure, strategy and performance of 10 top holdings in their key business areas (Severstal, Evraz Holding, Novolipetsk Steel, Mechel, Magnitogorsk Iron & Steel Works, Metalloinvest, TMK, Norilsk Nickel, UC RUSAL, Urals Mining and Metals Company). Major Russian Oil & Gas Holdings in 2009-2010. September 2010 The survey provides an insight in structure and performance of 6 top holdings in their key business areas (Gazprom, Lukoil, Rosneft, Surgutneftegaz, TNK-BP, Tatneft). Russia s Gas Industry in 2009-2010. August 2010 The survey provides information on major trends in Russia s gas industry in 2009-1H2010 (demand, gas reserves, production, exports, transportation issues, gas distribution and gasification of Russian regions, regulation of prices for natural gas, setting of domestic gas market). The survey also covers performance of top gas producing companies (Gazprom, NovaTEK, Surgutneftegas, Rosneft, Lukoil, TNK-BP). Russian Agriculture in 2009-2010. June 2010 The survey provides information on major trends in Russia s agriculture in 2008-2009, regulation, export performance, import penetration, fixed-capital and foreign investments, financials, debt burden, regional production of key products, performance of key sectors (plant growing, livestock agriculture). Russian Coal Industry in 2009-2010. May 2010 The survey provides information on major trends in the industry (reserves, production, ranking of key coal producers, regional production, transportation issues, sector's restructuring, export performance, holding's structure, major projects,) as well as recent performance of 7 top holdings and companies: SUEK, Kuzbassrazrezugol, Mechel (Yuzhny Kuzbass, Yakutugol), Evraz Holding (Raspadskaya, Yuzhkuzbassugol), Sibuglemet Severstal (Vorkutaugol), Russian Coal, SDS-Coal, Kuzbass Fuel Company, Belon. The survey also gives an insight in financial positions and debt burden of Russia s coal industry.
INTERFAX CORPORATE NEWS AGENCY Head of Research Dr. Igor Y. Volosov Tel.: +7 495 2502922 Fax.: +7 495 2502584 E-mail: cna@interfax.ru Internet: http://spark.interfax.ru/ Interfax - Corporate News Agency has become Russia s leading provider of business, financial and risk-related information to clients doing business with Russia, CIS, Baltics, Central and Eastern Europe. Interfax-CNA's research products are widely recognized as an unbiased information source. The company cooperates closely with SPARK Database, the Economic Development and Trade Ministry, the Ministry for Industry and Energy, the State Customs Service, Federal Financial Markets Service and other key agencies. Interfax-CNA also relies on data feed from Interfax News Agency, which has earned the reputation on the world market of an independent, competent, and reliable source of news and information. Interfax-CNA product range includes: Profiles on more than 4.5 million Russian companies Profiles on Russian banks and insurance companies Marketing profiles (regions, goods, producers, exporters etc.) In-depth analysis on Russian markets and industries Macroeconomic research and policy impact analysis Identification and evaluation of potential business partners Individual data search