Rosneft to study feasibility of Yelizovo fuelling complex

05.10.2011 11:45:58 (GMT+12)

Specialists of the Rosneft oil company together with the government of the Kamchatka Territory will study the feasibility of creating an alternative refuelling complex at Petropavlovsk-Kamchatsky airport that is located in the town of Yelizovo and is the main air gateway to the peninsula, governor of the territory Vladimir Ilyukhin has said, the press service of the regional government told Itar-Tass.

According to him, an agreement to establish a joint working group was reached during talks with the Rosneft leadership. The group will work during the two coming months.

In addition to examining the situation at the airport the specialists will assess “the feasibility of expanding the market of motor fuel suppliers in the region,” Ilyukhin said, recalling that Rosneft supplies more than 90 percent of fuel to Kamchatka fuelling enterprises and is “the main wholesale supplier of motor fuel to Kamchatka.”

“We must be guided first and foremost by issues of energy security in the region and the fuel price for consumers. At present, Kamchatka refuellers are working pretty steadily. We need to understand whether the expansion of the fuelling companies’ market will affect the final price of motor fuel and jet fuel,” the territorial governor said.

According to Vladimir Ilyukhin, the experts will make a conclusion on the need for expanding the network of filling stations and the construction of an alternative refuelling complex at Petropavlovsk-Kamchatsky airport. The current refuellers of aircraft there are the companies Aerofuels Kamchatka and Solnechny Veter (Solar Wind). The cost of aviation fuel from these complexes is up to 44 thousand roubles for one tonne, the Kamchatka government reported.

Rosneft is the leader of Russia’s petroleum industry, and ranks among the world’s top publicly traded oil and gas companies. The Company is primarily engaged in exploration and production of hydrocarbons, production of petroleum products and petrochemicals, and marketing of outputs. Rosneft has been included in the Russian Government’s List of Strategic Enterprises and Organisations. The state holds 75.16 percent in the Company (through OJSC ROSNEFTEGAZ), while approximately 15 percent of shares are in free-float, according to the company website.

Rosneft is widely engaged in exploration and production across all key hydrocarbon regions of Russia: Western Siberia, Southern and Central Russia, Timan-Pechora, Eastern Siberia and the Far East. In addition, the Company participates in several exploration projects in Kazakhstan and Algeria. Rosneft’s seven major refineries have convenient locations throughout the country, from the Black Sea coast to the Far East, and the Company’s retail network covers 41 regions of the Russian Federation. Rosneft also owns 50 percent of Ruhr Oel GmbH which holds stakes in four refineries in Germany.

Rosneft has been successfully implementing its strategy of steady production growth, supported by constant monitoring and adoption of innovative technology. In 2010, the Company produced a total of 875 mln barrels of crude oil, thus posting a six fold growth in crude output over the last five years. Furthermore, the Company consistently maintains high operating efficiency, and has the lowest upstream production and operating expenses among its national and major international peers. Rosneft’s refinery throughput in 2010 totalled 369 mln barrels – a record high for the Russian oil industry. Favourable refinery locations enable the Company to raise consistently the efficiency of petroleum product sales. Rosneft is now actively involved in expanding and upgrading its refineries to enhance further the balance between crude output and refinery throughput, and to boost production of higher value-added petroleum products meeting the latest environmental standards.