Bashneft has released its preliminary operating results for the second quarter of 2016.

  • Average daily oil production grew by 9.6% year on year to 58.2 thousand tonnes.
  • Oil production at brownfields added 0.6% year on year.
  • New assets in Timan-Pechora and Western Siberia accounted for 21.6% of oil production.
  • Refining decreased by 8.6% year on year due to scheduled repairs at Bashneft-UNPZ.
  • The share of light products and refining depth stood at 67.7% and 86.2% respectively.
  • 100% of motor gasoline and diesel fuel meet the Euro 5 standard.

In the second quarter of 2016, the Company produced 5,294 thousand tonnes of oil, which is 9.6% more than in the second quarter of 2015. In the second quarter of 2016, average daily production reached 58.2 thousand tonnes per day. Production growth was driven mainly by Bashneft-Polyus and Burneftegaz, which accounted for 21.6% of total oil production as against 14.6% in the second quarter of 2015.

Thus, in the second quarter of 2016, Bashneft-Polyus boosted production by 84.3% year on year (to 571 thousand tonnes), while Burneftegaz increased production by 44.3% (to 572 thousand tonnes). Production growth was driven by efficient implementation of the production drilling programme involving drilling highly productive horizontal wells, as well as by the use of state-of-the-art enhanced oil recovery techniques.

Year-on-year production growth was also supported by a 0.6% increase in oil production at brownfields, mainly due to commissioning of new wells and highly efficient geological and engineering operations in Bashkortostan.

During the six months of 2016, Bashneft produced 10,580 thousand tonnes of oil, which is 10.9% more than during the same period in 2015. Bashneft-Polyus boosted production by 76.3% year on year (to 1,082 thousand tonnes), while Burneftegaz increased production by 66.3% (to 1,141 thousand tonnes). In the first half of 2016, production at brownfields gained 1.4% year on year.

In the second quarter of 2016, Bashneft's refining complex processed 4,092 thousand tonnes of crude oil, which is 8.6% less than in the second quarter of 2015. The reduction in refining was caused by a planned shutdown of process units at the Bashneft-UNPZ industrial site due to major repairs. During the six months of 2016, refining totalled 8,824 thousand tonnes, which is 4.0% less than in the first half of 2015.

In the second quarter of 2016, the output of petroleum products and petrochemicals decreased by 10.0% year on year (to 3,772 thousand tonnes), while during the six months of 2016, it dropped by 4.9% (to 8,213 thousand tonnes). At the same time, close integration of the refining complex in Ufa and completed modernization enabled the Company to maintain a high quality of its product mix. The share of light products remained almost unchanged: during the six months of 2016, it stood at 68.3% as against 68.5% in the first half of 2015, while in the second quarter of 2016, it totalled 67.7% as against 68.5% in the second quarter of 2015.

During the six months of 2016, gasoline production fell by 6.5% year on year to 2,048 thousand tonnes, while the output of diesel fuel decreased by 3.6% (to 3,531 thousand tonnes). In the second quarter of 2016, gasoline production fell by 16.4% year on year (to 895 thousand tonnes), while the output of diesel fuel decreased by 5.8% (to 1,660 thousand tonnes). All engine fuel produced in the first half of 2016 met the Euro 5 standard; at the same time, during the six months of 2016, the output of Euro 5 gasoline decreased slightly compared to the first half 2015 by 1.3% (to 2,004 thousand tonnes). The reduction in the output of engine fuels related to scheduled repairs at Bashneft-UNPZ did not affect the fulfilment of the Company's obligation to supply petroleum products to the domestic market under the quadripartite agreement on refinery upgrades.

During the six months of 2016, refining depth increased to 86.2% as against 85.2% during the same period in 2015; in the second quarter of 2016, it stood at 86.2% as against 86.8% in the second quarter of 2015.

PRELIMINARY OPERATING RESULTS FOR THE FIRST HALF OF 2016

thousand tonnes 6M
2016
6M
2015
Change,
%
2Q
2016
2Q
2015
Change,
%
Oil production, including 10,580 9,540 10.9% 5,294 4,831 9.6%
LLC Bashneft-Dobycha 8,357 8,240 1.4% 4,150 4,124 0.6%
LLC Bashneft-Polyus 1,082 614 76.3% 571 310 84.3%
LLC Burneftegaz 1,141 686 66.3% 572 397 44.3%
Average daily oil production 58.1 52.7 10.3% 58.2 53.1 9.6%
LLC Bashneft-Dobycha 45.9 45.5 0.9% 45.6 45.3 0.6%
LLC Bashneft-Polyus 5.9 3.4 75.3% 6.3 3.4 84.2%
LLC Burneftegaz 6.3 3.8 65.4% 6.3 4.4 44.1%
Crude oil distillation 8,824 9,193 -4.0% 4,092 4,478 -8.6%
Output of petroleum products and petrochemicals 8,213 8,668 -4.9% 3,772 4,193 -10.0%
Gasoline, including 2,048 2,191 -6.5% 895 1,071 -16.4%
Motor gasoline 2,004 2,185 -8.3% 886 1,065 -16.8%
Euro 5 2,004 2,030 -1.3% 886 1,013 -12.5%
Diesel fuel 3,531 3,661 -3.6% 1,660 1,763 -5.8%
Euro 5 3,531 3,656 -3.4% 1,660 1,761 -5.7%
Fuel oil 1,122 1,283 -12.5% 492 577 -14.7%
Petrochemicals* 629 600 4.8% 288 288 0.0%
Other 883 933 -5.4% 437 494 -11.6%
Refining depth, % 86.2% 85.2% 1.0 p.p. 86.2% 86.8% -0.6 p.p.
Share of light products, % 68.3% 68.5% -0.2 p.p. 67.7% 68.5% -0.8 p.p.

* - including products manufactured by PJSC Ufaorgsintez, the Shkapovskoye and Tuimazinskoye GPPs

OIL PRODUCTION BY OIL AND GAS PROVINCE

thousand tonnes 6M 2016 6M 2015 Change,
%
2Q
2016
2Q
2015
Change,
%
Volga-Urals* 8,256 8,119 1.7% 4,100 4,063 0.9%
Timan-Pechora** 1,082 614 76.3% 571 310 84.2%
Western Siberia*** 1,242 807 53.9% 623 457 36.3%
Total: 10,580 9,540 10.9% 5,294 4,831 9.6%

*- LLC Bashneft-Dobycha; **- LLC Bashneft-Polyus; ***- LLC Bashneft-Dobycha and LLC Burneftegaz

OAO Bashneft published this content on 27 July 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 July 2016 07:39:12 UTC.

Original documenthttp://www.bashneft.com/press/releases/8750/

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