Oil sales

Despite macroeconomic headwinds and weak demand amid the pandemic, the company was able to maintain a stable level of exports year-on-year.

A total of 20.4 mt of oil were supplied to international markets, while 4.6 mt were supplied domestically.

Despite the challenging situation in international markets, the company successfully ramped up oil supplies from its Arctic fields in 2020. Exports of ARCO blends (Prirazlomnoye field) and Novy Port (Novoportovskoye field) grew 5.3% to 10.5 mt. In addition, the company widened the geography of its Arctic oil supplies by making its first delivery of Novy Port oil to China. This event is of strategic importance given the company’s plans to foster stronger ties with Asia-Pacific countries.

Crude oil sales, mt
Product 2016 2017 2018 2019 2020
Domestic sales 7.43 5.57 4.31 4.37 4.57
Exports to non-CIS countries 12.89 18.19 17.05 19.16 18.48
Exports to CIS 1.66 1.71 1.65 1.71 1.10
Sales to international markets 0.73 1.06 1.25 0.99 0.79
TOTAL CRUDE OIL SALES 22.71 26.53 24.26 26.23 24.94
Source: company data

The company uses a unique transport and logistics strategy to manage oil supplies from its Arctic fields, ensuring year-round consignments at minimum cost. It encompasses the Prirazlomnaya offshore ice-resistant oil-producing stationary platform, the Arctic Gate oil terminal in the Gulf of Ob, a heavy ice-class tanker fleet, icebreaker support vessels, an offshore transshipment facility in Murmansk, as well as tankers transporting oil from the transshipment facility to consumers in Europe. Operational safety and efficiency are ensured by the world’s first digital Arctic logistics management system, Kapitan. The system’s accumulated historical data and predictive capabilities help it to foresee potential constraints that vessels may face along the journey and offer optimal and safe routes.

In 2020, the company’s Arctic logistics system achieved a historic milestone as the 1,000th oil tanker from the Novoportovskoye field was shipped through the Arctic Gate terminal, an event that reflects its performance and safety. Also in 2020, Kapitan was integrated with the Umba storage tanker to automatically receive its data, which accelerated the transmission and recording of the tanker’s storage data by 60 times and improved oil shipment performance. Automated recording of data from the Umba storage tanker in the Kapitan system will improve the speed and quality of logistics planning as well as enable crude transshipments to be managed online.

Thus, as at 2020-end, the company was using all available logistics models for oil export and domestic sales. The company’s onshore logistics, which includes supplies via Transneft’s pipeline system, enables us to flexibly allocate oil flows to the Eastern Siberia–Pacific Ocean pipeline via the port of Kozmino and to the west, depending on market conditions. The company’s sea logistics ensure year-round oil exports from the Arctic fields to Northwestern Europe and Asia-Pacific countries.

The company’s centrally-managed specialised fleet, supplemented by icebreaker support and digital technologies, ensures uninterrupted and safe operations in the challenging Arctic ice conditions.
Vadim Simdyakin Head of the Logistics and Oil Operations Directorate
Opening up a route to China for Arctic oil

During the year, the company made its first supplies of Arctic blends to Asia-Pacificcountries. The first batch of Novy Port oil was delivered to China’s Yantai, its destination port.

Until 2020, the company’s Arctic blends were exported exclusively to Europe, but by ramping up our business with key Asian refineries, Gazprom Neft was able to expand its supplies of Arctic blends into the burgeoning post-pandemic China. The tanker sailed from Murmansk to Yantai through the Arctic seas and along the southern route cutting across the Atlantic, Indian and Pacific oceans.

The 1,000th tanker shipped through the Arctic Gate

In December 2020, the 1,000th tanker was shipped from the Novoportovskoye field of Gazpromneft-Yamal through the Arctic Gate terminal. This milestone shipment of Novy Port oil was carried by the Shturman Albanov.

Gazprom Neft’s tanker fleet makes over 200 voyages a year from the oil terminal to Murmansk, mostly in challenging ice conditions. In winter, vessels break through two-metre thick Arctic ice. Uninterrupted operations at the terminal are supported by the icebreakers Alexander Sannikov and Andrey Vilkitsky.

Over 30 mt of liquid hydrocarbons had already been shipped through the Arctic Gate by the end of 2020. Average daily production at the field reached 20,800 tonnes of oil and condensate.