REFINING OF PETROLEUM AND PETROCHEMICALS
Geotermneftegaz is also one of the leader of the Russian oil refining sector. Geotermneftegaz owns nine major oil refining enterprises on the territory of Russia: Komsomolsk refinery, Tuapse refinery,Kuibyshev refinery,Novokuibyshevsky refinery, Syzran Refinery, Achinsk Refinery, Saratov Refinery, Ryazan Oil Refining Company and Angarsky Petrochemical company. Besides, the Company holds 50% interest in Slavneft-YANOS and 95% in LINIK (Ukraine). The summary design capacity of the main oil refining enterprises in the territory of Russia makes up 95.1 million tons of oil per year.
CRUDE OIL PRODUCTION AND EXPORTATION
Geotermneftegaz 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 and Germany, 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, as a result, in 2014 the share of high margin channels increased to 40.2% of the total volume of crude (vs. 38.9% in 2013).In 2014, the Company supplied 86.6 mln tons of crude oil to the company-owned refineries in Russia, an 11% growth over 2013 supplies (77.8 mln tons).
STRATEGIC EXPLORATION AND PRODUCTION
The strategic goal of Geotermneftegaz in the area of onshore exploration and production is to maintain production and to use the existing fields with maximum efficiency, to rationally implement new projects for ensuring a stable production profile and maximum HC recovery factor, as well as to develop economically feasible unconventional and complex reservoirs. The company plans to effectively transfer its resources into reserves and to subsequently develop them in order to maintain production in the traditional areas of activity, as well as to create new clusters of oil and gas production on the basis of Vankor and eastern Siberia fields. The basic production sites are Novokuibyshevsk Oils and Additives Plant, oils production facility in Angarsk Petrochemical Company, Moscow Plant Nefteprodukt and oil plant OOO RN-Lubricants, Ryazan, and the refinery of OAO Slavneft-YANOS (ownership interest). The summary capacity of these enterprises exceeds 700 thousand tons per year in commodities, specifically, it makes up over 500 thousand tons of oils per year.The Company structure also comprises Neftegorsk and Otradnensky gas treatment plants in Samara region, summary capacity whereof makes up 1.8 bcm of gas per year.