Midstream

We uphold rigorous standards and ethics when trading and transporting both petroleum and petroleum products. Whilst the company itself is not involved in refining and transportation operations, Rusneftegaz conducts extensive upstream and downstream activities, selling millions of barrels of oil and its derivatives every year. All the crude extracted from our fields is sent to a delivery point designated by Transneft, either via road in tankers, or by rail on cargo trains. At this particular location, the petroleum produced by Rusneftegaz is pumped into pipelines, from which it can be transported across the Russian Federation. In most instances, the product arrives at refineries for processing, or to major international shipping ports for sale and to be exported later. In our case, the majority of our commodities trade on the domestic market on exchanges, mostly to refineries in Moscow, Krasnoyarsk and Ufa, but also the ports of Novorossiysk, Primorsk and Ust-Luga.

​Oil transactions are considered complete when the purchased product has left the flange of the seller, with ownership then being transferred immediately to the buyer. Thus, it is paramount that the latter is prepared to take custody of the product immediately, such as onto a modicum of transportation, or into another storage tank within the same terminal complex. This can be on a short or long-term arrangement, ranging from days to years, unless of course the facility itself is owned by the acquirer. For export, the customer will need to transfer the petroleum to a major international port, except for cases where the contract has been fulfilled there, where it can then be loaded onto a suitable vessel.  At larger harbors, it is common for oil to be stored away from the busiest locations within the site, and is therefore transferred onto tankers and other ships via barges. Whilst the shipping company will not take ownership of the hydrocarbons at this point, it will bear significant responsibility for its safe transportation.

​Cargoes can take many weeks or months, depending on the distance from the final destination and any additional stops that may be necessary on the journey. At the end of the itinerary, the holder will be required to coordinate between both the controllers of the vessel, and the management of the oil and gas tank storage terminal, this is to ultimately ensure the fuel reaches its intended destination. Once this is complete, the goods will be processed by customs and transferred to its terminus, where it can be used or sold. Whilst this can be accomplished using any of the aforementioned means of transportation, it can also be completed by loading small quantities onto trucks, which remains the preferred method of shipment for the majority of the worlds’ fuel needs, including to both rural settlements and gas stations in major metropolises. In most commodity contracts, it is necessary to also consult with legal representatives not only for advice, but to manage certain phases of the broader transaction process which require oversight and high standards of corporate governance.

Whilst Rusneftegaz itself is not involved in the business, a percentage of the petroleum extracted by our organization is also processed into petrochemical products, including aromatics such as xylenes in addition to olefins. Although the majority of what our company produces transforms into useful commodities that are consumed every second across the world, including but not limited to gasoline, jet fuel, diesel and both motor and heating oil. Our organization does intend to expand our production and trading capabilities internationally in the future, in addition to focusing on the long-term development of all our existing projects. Ultimately, with over twenty years of history in the oil and gas industry, we have accrued an abundance of experience and knowledge to continue to face any challenges that occur in the next twenty years and beyond.