OREANDA-NEWS. Bashneft has released its preliminary operating results for the fourth quarter and the 12 months of 2014.

In 2014:

Oil production increased by 10.8% to 17,808 thousand tonnes

Production in Bashkiria added 3.9%

New assets in Timan-Pechora and Western Siberia accounted for 8.4% of production

By the end of December, daily production exceeded 52 thousand tonnes

Oil refining increased by 1.2% to 21,661 thousand tonnes

The output of Euro 5 gasoline gained 30.7%, while the output of Euro 5 diesel fuel grew by 26.6%

'Despite adverse external factors, in 2014 Bashneft reported the strongest production growth among Russia's oil companies once again,' emphasized Bashneft's President Alexander Korsik. 'Our new assets in the Nenets Autonomous District and Western Siberia were an important factor behind this achievement, as in 2014 they accounted for 8.4% of oil production; it was also made possible by efficient operations at brownfields in the Republic of Bashkortostan, where the Company managed to boost production once again; last year, production growth in the region totalled 3.9%.'

In the fourth quarter of 2014, Bashneft produced 4,723 thousand tonnes of oil, which is 13.2% more than in the fourth quarter of 2013. In the fourth quarter of 2014, average daily production reached 51.3 thousand tonnes per day.

In 2014 Bashneft's refining complex processed 21,661 thousand tonnes of hydrocarbons, which is 1.2% more than in 2013. In 2014 average refining depth and the average share of light products increased to 84.9% and 61.1% respectively.

In 2014 the output of commercial products grew to 19,935 thousand tonnes, up by 1.5% year-on-year, with gasoline output adding 2.6% to 5,005 thousand tonnes, while the output of diesel fuel remained flat year-on-year.

In the fourth quarter of 2014, Bashneft's refineries processed 5,339 thousand tonnes of crude oil, which is comparable to the level reached in the fourth quarter of 2013. At the same time, the period saw a considerable improvement in the average share of light products (from 60.6% to 64.2%) and refining depth (from 82.4% to 84.6%).

In the fourth quarter of 2014, the output of commercial products (4,920 thousand tonnes) remained virtually unchanged year-on-year. At the same time, during the said period gasoline output rose by 12.5% (to 1,407 thousand tonnes), and the output of diesel fuel increased by 3.5% (to 1,859 thousand tonnes), while the output of heavy petroleum products dropped considerably (the output of fuel oil declined by 7.5%, while the output of vacuum gas oil slumped by 25.4%).

The increase in the share of light products and the reduction in production of VGO in the fourth quarter of 2014 were related to the start of pilot operation of a new hydrogen production unit at the Bashneft-Novoil Branch, which enabled a considerable increase in the throughput of conversion processes at the refineries in Ufa.

Continuous refinery upgrades, including the launch of a new catalytic cracking gasoline hydrotreater at the Bashneft-UNPZ Branch in 2014, enabled the Company to significantly increase the output of light products of higher quality.

Thus, in 2014 the output of Euro 5 gasoline added 30.7% and reached 4,282 thousand tonnes, while the output of Euro 5 diesel fuel increased by 26.6% (to 2,696 thousand tonnes). In the fourth quarter of 2014, the output of Euro 5 gasoline grew by 22.2% year-on-year (to 1,161 thousand tonnes), while the output of Euro 5 diesel fuel gained 40.6% (reaching 773 thousand tonnes).

2014 also saw an improvement in Bashneft's product mix related to production of niche light products; for instance, the output of bunker fuel, which is included in the Other category, more than tripled, reaching 296 thousand tonnes.