Oil refining volumes were optimal in the current economic conditions. The decrease in refining at the Company’s Russian oil refineries in 2016 was due to economic factors, in particular the marginal refining efficiency in the first half of 2016 was lower than the efficiency of oil exports.
The total output of petroleum products decreased due to marine fuel and fuel oil. At the same time, the production of motor fuels and jet fuel increased by 1.2%.
In 2016, the Company continued to implement a modernisation programme for its oil refineries that aims to improve their operating efficiency, increase the depth of oil refining, expand the yield of light petroleum products and enhance production and environmental safety. Gazprom Neft carried out projects at the Omsk and Moscow Oil Refineries to build advanced oil refining facilities as well as a number of environmental projects.
The key projects of the Moscow Oil Refinery – the construction of the Euro+ combined oil refining unit and the Biosphera biological treatment facilities – entered their active phase in 2016. The Company commenced the project to build a new primary oil refining unit at the Omsk Oil Refinery, which will become one of the biggest in Russia. A major oil refining project for Gazprom Neft in 2016 was the development of catalyst production in Omsk. The importance of the project for the entire industry was confirmed by the Russian Ministry of Energy, which assigned it the status of a national project. By 2020, the Company will build a high-tech complex that will make it possible to supply the Russian oil refining industry with high-quality Russian-made catalysts.
The Company established Gazpromneft-Catalytic Systems LLC to develop the new business for the production of oil refining catalysts. In 2019, the Company plans to launch the largest complex for the production and maintenance of catalysts for catalytic cracking, hydrotreatment and hydrocracking in the CIS.