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.
The product breakdown reflects the sales of crude oil, refined products and petrochemicals by the Group, excluding affiliates, own consumption, production losses, change in inventories and other items. Due to rounding, inflow and outflow totals may differ. Other sales include non-fuel revenues from filling stations, services related to crude oil production, transport services, lease, and other non-core revenues.
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 of third-party volumes. 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.
Our priority when selling crude oil and petroleum products is efficient logistics and maximum utilization of our own transportation infrastructure to reduce transportation costs and optimize routes. LUKOIL Group owns three crude oil and petroleum products transshipment terminals in Russia (Varandey in Timan-Pechora on the Barents Sea, one in the port of Svetly in the Kaliningrad Region, and one in the port of Vysotsk on the Baltic Sea), and a terminal in the port of Barcelona in Spain. The combined capacity of the terminals is 36 million tonnes of oil and petroleum products per year. LUKOIL also uses its own floating oil storage unit in the Caspian Sea for oil transshipment.
Transportation via own terminals in Russia
| 2016 | 2017 | 2018 | 2019 | 2020 | |
|---|---|---|---|---|---|
| Oil transhipment, mln t | 10.2 | 11.1 | 9.6 | 9.8 | 7.5 |
| Terminal in port Svetly | 0.7 | 0.7 | 0.5 | 0.5 | 0.5 |
| Varandey terminal | 8.0 | 8.3 | 7.0 | 7.2 | 4.9 |
| Other | 1.5 | 2.1 | 2.1 | 2.1 | 2.1 |
| Oil products transhipment, mln t | 11.6 | 10.8 | 11.34 | 12.5 | 11.0 |
| Vysotsk terminal | 10.9 | 10.1 | 10.6 | 12.0 | 10.5 |
| Terminal in port Svetly | 0.6 | 0.5 | 0.6 | 0.4 | 0.5 |
| Other | 0.1 | 0.2 | 0.2 | 0.2 | 0.1 |
