Total refining rose by 6.8% in 2011 compared to 2010, due to:
- Maximum load at Company refineries in Russia due to high demand for petroleum products on the domestic market and higher refining margin (year-on-year);
- Full substitution of third-party crude oil by own crude oil by own crude oil the Moscow Refinery
Refining by NIS in 2011 fell due to scheduled program to optimise its production structure.
Output of gasoline rose by 11.7% in 2011 compared to 2010, due to:
- Greater efficiency of oil refining than crude exports;
- Higher demand for petroleum products in the domestic market.
Requirements for motor fuels to meet the Government’s Technical Regulation for fuel quality caused the following changes in production structure:
- Lower production of Class 2 gasoline in 2011 compared to 2010, and increased production of Class 3 gasoline;
- Start of production of Class 4 gasoline (by the Moscow Refinery from January 2011, and by the Omsk and Yaroslavl Refineries from February 2011), and of Class 5 gasoline (at the Omsk Refinery from June 2011).
Purchases of petroleum products on international markets rose by 119.0% in 2011 due to increased trading activity and favorable market conditions.
Purchases of petroleum products on the CIS market doubled in 2011 compared to 2010 due to increased trading activity and higher demand for petroleum products in CIS member states. Purchases of petroleum products on the domestic market rose by 24.5% in 2011 compared to 2010, due to the need to meet high demand for petroleum products at the Company’s filling stations.
The total number of the Company’s operating filling stations rose by 4.6% in 2011 against 2010. The number was determined by partial completion of upgrades of filling stations in Russia, the CIS and Eastern Europe, and the purchase of 113 filling stations in Russia.