Downstream TNK BP Integration Synergies
Conversion
LTO
10
Quality
Combined Refining: upgrades in Russia will significantly increase
margin per BBL
Benefits
High HSE standards
Maximum possible throughput
Continuity of operations
Refining upgrades program impact in Russia
Program
Sufficient equity volumes for sales
channels development
• Excise benefits from production
ahead of timeline
Defense of domestic sales channels
margin
Increase of light yields and yields
optimization (fiscal regime risks
mitigation)
OPEX decrease
new conversion
and treatment
capacities are
under
construction with
total capacity of
39 mtpa
$25 bln planned
investments in
upgrades -
LTO CAPEX decrease
1 gasoline, diesel, jet fuel
Source: Rosneft
Refining throughput in Russia, mtpa
Light yields1
+63.5%
52
56.0%
92
85
+8.2%
80.0%
2012 7 Rosneft 2013 10 refineries
refineries
incl. TNK-BP
Euro-5 requirements since 2016
Target for 2017
■ Motor fuels growing demand meeting in Russia and abroad
Light yields growth from 56% to 80%
Refining gross margin growth from 7.5 $/bbl to 11 $/bbl
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