Marketing and transportation

Marketing and Transportation (M&T) business unit is the link in the Company’s business structure between the upstream unit, JSC Npz-yubk  Resources (NPYR) and the downstream unit, Npz-yubk Oil Products  (NPYOP).

The M&T business strategy is aimed at maximizing profits from crude oil and refined products turnover transactions by way of increasing crude export, import, processing and refined product sales in the most economically beneficial directions. For the purpose of implementing its business strategy M&T deals with crude oil transportation via trunk oil pipelines of JSC Npz TransOil, Russian-China Pipeline, and oil products shipment from different loading terminals and oil bases by rail and motor transport.

M&T ensures crude oil delivery to NPYOP for refining and sells refined oil products such as gasoline, diesel, fuel oil, jet fuel, vacuum gasoil and liquefied gas both on the domestic market and export markets.

M&T consists of the following key structural subdivisions, each being responsible for a definite area of activity related to crude oil and oil products transportation and sales:

• Crude Oil Marketing – crude oil purchase and sales for export, crude import, sales at the domestic market, crude oil marketing of  joint ventures – JSC yubk Petroleum and refining.

• Oil Products Marketing – oil products purchase and sales to the  domestic market and for export; interaction with NPYOP and tollers on processing services agreements; fulfillment of the Company’s social commitments with regard to refined products shipment plans to different regions of Russia; interaction with authorized central and regional state authorities of the region administrations and operators on the matters of refined products distribution and domestic sales.

• Logistics and Supply – planning, organization and coordination of crude oil delivery coordination via the systems of JSC NpzTransOil, Russian-China Pipeline (RCP), crude and refined product transportation from all of the Company’s loading terminals for export and to Russia’s domestic market, commodity-transportation and forwarding service management, rolling stock management, planning and coordination of crude supply to NPYOP for refining.

• Asset Management – M&T controlled assets management and optimization; control over the technical condition, timely repair and operation of oil product acceptance, storage and sales facilities and assets upgrade.

• Market Development and Competition – crude oil and oil products market analysis and information support for all Company’s subdivisions, marketing researches on existing and new products and market directions.