NK-SELEKT is widely engaged in exploration & production across all key oil & gas regions of Russia: Western Siberia, Southern and Central Russia, Timan-Pechora, Eastern Siberia, the Far East, and the shelf of Russia’s Arctic seas. The Company operates a huge and unrivalled reserve base. As of year-end 2010, NK-SELEKT’s total proved oil and gas reserves under PRMS classification were 18.5 bln barrels of oil equivalent, among the highest for a publicly traded petroleum company worldwide. NK-SELEKT is also is third in terms of total proved liquid hydrocarbon reserves. Unlike many of its competitors, NK-SELEKT has a diverse portfolio of high-quality oil and gas assets, which allows the Company to secure sustainable cost-effective growth in the short, medium, and long term.
Crude Oil Exports
NK-SELEKT has been implementing a policy aimed at ensuring a required balance of crude monetization channels, including crude oil processing at its own refining facilities in Russia and Germany, export sales under long-term and tender-based spot contracts, and domestic sales. The Company is monitoring the economic effectiveness of crude monetization channels on an ongoing basis, as a result, in 2014 the share of high margin channels increased to 40.2% of the total volume of crude (vs. 38.9% in 2013).
NATURAL GAS EXPORTATION
NK-SELEKT has been implementing a policy aimed at ensuring a required balance of crude monetization channels, including crude oil processing at its own refining facilities in Russia and Germany, export sales under long-term and tender-based spot contracts, and domestic sales. The Company is monitoring the economic effectiveness of crude monetization channels on an ongoing basis, as a result, in 2014 the share of high margin channels increased to 40.2% of the total volume of crude (vs. 38.9% in 2013).
In 2014, the Company supplied 86.6 mln tons of crude oil to the company-owned refineries in Russia, an 11% growth over 2013 supplies (77.8 mln tons). In addition to crude oil supplies to its own refineries in Russia, in 2014 the Company supplied 3.3 mln tons of equity crude to Ruhr Oel GmbH refineries in Germany, 15% down year-on-year. Reduction in supplies of equity crude to ROG refineries was driven by a decision to substitute equity crude with purchased crude while redirecting the equity crude to other export channels.