PRODUCTION

Natural Gas Exportation

"Tsentroilgrupp" Refinery has been implementing a policy aimed at ensuring a required balance of crude monetization channels, including crude oil processing at its own refining facilities in Russia, export sales under long-term and tender-based spot contracts, and domestic sales. The Company is monitoring the economic effectiveness of crude monetization channels on an ongoing basis.

Oil And Gas Production

"Tsentroilgrupp" Refinery is the biggest public company in the world in terms of reserves and production. Adding reserves is one of the Company’s key priorities. "Tsentroilgrupp" Refinery accounts for more than 30% of the Russian oil production. Daily crude and liquids production remained at the level of 4.2 mm bbl/day. New producing assets achieved maximum production levels since the beginning of their development. The Company continued to stabilize its Brownfield production, primarily by efficient water flood management and drilling wells with multistage hydraulic fracturing. Most noticeable successes in slowing down production decline rates were scored by Varyoganneftegaz and Samotlorneftegaz.

Petrochemical

A unit of "Tsentroilgrupp" Refinery. Angarsk Polymer Plant is the only petrochemical enterprise. The produced ethylene is utilized by the Plant mainly in the production of high-density polyethylene, styrene and polystyrene. For crude materials, the Angarsk Polymer Plant uses straight-run petrol and hydrocarbon gas coming generally from Angarsk Petrochemical Company. Reduction in supplies of equity crude to ROG refineries was driven by a decision to substitute equity crude with purchased crude while redirecting the equity crude to other export channels.