LUKOIL sells crude oil, gas and petroleum products in the domestic and international markets, driving optimal distribution of flows to fit the market. The Company owns crude oil and petroleum products transshipment facilities, as well as pipelines, which helps minimize transportation costs.
Product balance reflects key product flows for the Group's crude oil (production, refining, purchases and sales), petroleum and gas products (output at own and third-party refineries and own gas processing plants, sales, purchases for sale, excluding purchases for refining and refined products for further processing volumes), and petrochemicals (output and sales), excluding affiliates, own consumption for fuel and operating purposes, changes in inventories, and other items in 2017. Due to rounding, sums of inflows and outflows may differ. Other sales, totaling RUB 0.3 trillion, include non-fuel revenue from filling stations, transportation services, and leases, and other revenue from non-core operations.
A well-developed trading arm within the Group maximizes efficient sales of own crude oil and petroleum products while generating additional income from sales of purchased hydrocarbons. LUKOIL performs trading operations in all regions of the world via its subsidiary, LITASCO. LITASCO's key functions include maximizing the efficiency of sales of crude oil and petroleum products produced by the Group, as well as boosting profits through trading purchased hydrocarbons. To maximize the efficiency of its trading operations, LITASCO builds long-term relations with major refineries in the South-East Asia, the USA, Canada and other countries and supplies crude oil and petroleum products to LUKOIL Group's refineries in Europe. Own crude oil and petroleum products accounts for 40% of LITASCO's total trading volumes.
The Company's priority when selling crude oil and petroleum products is efficient logistics and maximum reliance on own transportation infrastructure to reduce transportation costs and optimize transportation routes. The Group owns three terminals in Russia (Varandey Oil Terminal in Timan-Pechora, oil terminal in the port of Svetly in the Kaliningrad Region, and petroleum products terminal in the port of Vysotsk on the Baltic Sea), and one terminal in the port of Barcelona in Spain with an aggregate capacity of 36 million tonnes per year. The Company also uses for oil transshipment its own floating oil storage unit in the Caspian Sea.
Transportation via own terminals in Russia
|Oil transhipment, mln t||7.7||8.1||9.0||10.2||11.0|
|Terminal in port Svetly||1.0||0.8||0.8||0.7||0.7|
|Oil products transhipment, mln t||12.1||12.9||11.6||11.6||10.8|
|Terminal in port Svetly||1.1||0.8||0.6||0.6||0.5|