JSC NPEC Oil Refinery is a leader of the Russian oil refining industry accounting for over 35% of oil refining in Russia. In 2016, refining throughput at the Company’s refineries in Russia, amounted to 87.5 mmt. compared to 84.7 mmt in 2015.

In addition the volume of refining of the Company’s refineries abroad (12.8 mmt) exceeded the figure of 2015 by 4.8%. JSC NPEC Oil Refinery successfully continues to optimize refinery utilization to ensure an efficient level of feedstock processing, taking into account the capacity of secondary processes to minimize the output of heavy petroleum products.

In 2016, fuel oil production at Russian refineries decreased by over 17%, while the output of Euro 5 gasoline and diesel fuel increased to 31.1 mmt, up by 56% year on year. Due to increased operating efficiency of process units and optimized operations of Russian refineries, and taking into account new assets, in 2016, light product yield increased by 1.3 p.p. and reached 56.6%, while the conversion rate increased by 5.5 p.p. compared to 2015 and amounted to 72.0%.

Refinery throughput at the Company’s mini-refineries in Russia amounted to 1.9 mmt in 2016. in 2016, refinery throughput at German refineries increased by 17.8% year on year due to acquisition of an additional stake in PCK Raffinerie GmbH in November 2015.

JSC NPEC Oil Refinery continues implementing the refinery upgrade program in Russia, which involves construction and renovation of processing units.

Petrochemical assets form an important part of JSC NPEC Oil Refinery’s production complex. High quality of products and continuous improvement of the production process enable the Company to compete successfully with Russian and foreign producers on the Russian market. JSC NPEC Oil Refinery’s petrochemical complex comprises . Angarsk Polymer Plant (APP), . Novokuibyshevsk Petrochemical Company (NPC), P. Ufaorgsintez (UOS). Petrochemical production facilities also include the aromatic hydrocarbon production complex at Bashneft-Ufaneftekhim and methanol, butyl alcohol and amine production capacities at Angarsk Petrochemical Company.

The Company processes associated petroleum gas at . Otradnensky Gas Processing Plant (OGPP), . Neftegorsky Gas Processing Plant (NGPP), Tuymazinskoye Gas Processing Plant . (TGPP) and Shkapovskoe Gas Processing Plant . (ShGPP). In 2016, the Neftegorsky and Otradnensky Gas Processing Plants processed 399 mmcm and 264 mmcm of associated gas respectively. The main products are dry stripped gas, natural gas liquids (NGLs), the ethane fraction and industrial sulfur.

At present, NGPP and OGPP continue to implement a comprehensive program involving refitting and replacing worn-out and obsolete equipment with modern modular units that will improve operational efficiency and the automation level.