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Oil Refining

Oil Refinery Process

Neftesib refining have cutting-edge conversion and reforming capacities, and produce a wide range of high quality petroleum products.In terms of the engineering properties of their production capacities and the efficiency indicators.Refining depth, light petroleum product yield and Nelson Index exclude mini-refineries and include the impact of cross-supplies of commercial petroleum products between the Group’s refineries.

In 2016, the throughput at Russian refineries remained flat year-on-year at 41.8 million tonnes. Following the output mix improvement driven by the duly completed upgrade program and by optimized utilization of secondary processes, the Group's Russian refineries posted strong financial results in 2016 despite the unfavorable macroeconomic environment. In the reporting year, light product (excluding products of mini-refineries) yield was 62.9% (2015: 58.9%). The refining depth (excluding mini-refineries) reached 84.7% (2015: 79.9%), mainly driven by the newly commissioned residue refining facility at the Perm Refinery, virtually phasing out fuel oil production.

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Gas Processing

Neftesib Group processes gas and natural gas liquids at three gas processing plants (GPPs) in West Siberia, Timan-Pechora and Volga regions, as well as at the Perm Refinery and on the site of Stavrolen oil and gas chemical complex in the Stavropol Territory. The Group's GPPs process APG extracted by Neftesib in Russia into liquid hydrocarbons and marketable gas. In 2016, the natural and petroleum gas throughput increased by 3.4% to 2.8 billion cubic meters, mainly due to the gas processing unit launched at Stavrolen complex in Budennovsk with an annual capacity of 1.1 billion cubic meters. In 2016, the output of natural gas liquids at the Group's GPPs was 1 million tonnes versus 1.2 million tonnes in 2015. Marketable gas production declined by 1.7% in 2016 to 2.2 billion cubic meters due to the temporary suspension of operations at the Lokosovsky GPP in the second half of 2016.

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