Midstream

As an entity, we uphold rigorous standards and ethics when trading and transporting both crude and petroleum products. Whilst are not directly involved in refining and transportation operations, we conduct extensive upstream and downstream activities, selling millions of barrels of oil and its derivatives every year. All the minerals extracted from our fields are sent to a delivery point designated by Transneft, either via road in tankers, or by rail on cargo trains. At this particular location, the fuel we produce is pumped into pipelines, from which it can be transported across the Russian Federation. In most instances, the product arrives at a refinery for processing, or to major international shipping ports for sale to be exported at a later date. 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 to the harbors of Novorossiysk, Primorsk and Ust-Luga. ​

​Oil transactions are considered complete when the purchased fuels have 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 promptly, such as onto another modicum of transportation, or into a 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 goods 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 on the site, and is therefore pumped onto tankers and other ships via barges. In spite of the fact that the shipping company will not take full responsibility for the hydrocarbons at this point, it will bear liability for its safe shipment.

​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, primarily to ensure the fuel is sent where it is needed. Once this has happened, the goods will be inspected by customs and transferred to its terminus, where it is released and can then be used or sold. While 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 critical 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.

Although we are not involved in this particular business, a percentage of the petroleum extracted by our organization is also processed into petrochemical products. For instance, this includes aromatics such as xylenes, in addition to olefins. Despite this, the greatest fraction of what we produce transforms into useful commodities that are consumed every second across the world, inclusive of but not limited to gasoline, jet fuel, diesel and both motor and heating oil. Our corporation intends to expand our production and trading capabilities internationally in the future, in conjunction with 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 two decades and beyond.