Bashneft has released its preliminary operating results for the fourth quarter and the 12 months of 2013. In 2013 oil production at the Company’s fields totalled 16,073 thousand tonnes (117,333 thousand barrels)*, which is 4.1% more than in 2012. In 2013 Bashneft’s average daily production reached 44 thousand tonnes per day (321.2 thousand bbl/d)

‘In 2013 Bashneft reported the strongest growth of annual production in Russia’s oil industry once again,’ commented the Company’s President Alexander Korsik. ‘We achieved this impressive result primarily by boosting production in our key operating region, the Republic of Bashkortostan, and by starting oil production at the Roman Trebs and Anatoly Titov fields in the Nenets Autonomous District ahead of schedule.’
In the fourth quarter of 2013, Bashneft produced 4,173 thousand tonnes of oil, which is 6.8% more than in the same period in 2012. In the fourth quarter of 2013, average daily production totalled 45.4 thousand tonnes per day (331.4 thousand bbl/d), reaching a record high since 1995.

In 2013 more than half (54%) of the increase in oil production in traditional oil-producing regions was related to highly efficient geological and engineering operations and the use of cutting-edge technology, for instance, while drilling high-rate horizontal wells both at brownfields and at the v. Afanasyev field commissioned in 2013, where over 150 thousand tonnes of oil (1,095 thousand barrels) were produced in 2013.

In 2013 Bashneft’s production was boosted considerably by the start of pilot production at the R. Trebs and A. Titov fields in the Nenets Autonomous District, where the Company produced 291 thousand tonnes of oil (2,168 thousand barrels)** during the period from August through December 2013, meeting the target.

In 2013 Bashneft’s refining complex in Ufa processed 21,399 thousand tonnes of oil (156,213 thousand barrels), which is 3% more than in 2012. In 2013 refining depth at Bashneft’s refineries averaged 84.7%, which is comparable to the level reached in 2012. The share of light products increased to 60.4% compared to 59.7% a year earlier.

Preliminary data suggest that the average Nelson Index increased from 8.55 to 8.65 after a complex of sulphuric acid alkylation and sulphuric acid regeneration units was put into operation at the Bashneft-Novoil Branch.

The share of Euro 4 and Euro 5 gasoline in the total gasoline output amounted to 87.7% in 2013 compared to 72.9% in 2012. The share of Euro 5 gasoline rose to 67.2% in 2013 against 20.1% in 2012.

In the fourth quarter of 2013, the share of Euro 4 and Euro 5 gasoline in the total gasoline output fell to 79.3% from 94% in the fourth quarter of 2012. At the same time, the share of Euro 5 gasoline increased to 76% in the fourth quarter of 2013 compared to 35.8% in the fourth quarter of 2012.

In 2013 Euro 4 and Euro 5 diesel fuel accounted for 31.6% of the total output of commercial diesel fuel compared to 23.6% in 2012. In 2013 the share of Euro 5 diesel fuel increased to 28.5% against 13.1% in 2012.

In the fourth quarter of 2013, the share of Euro 4 and Euro 5 diesel fuel increased to 34.2% from 29% in the fourth quarter of 2012. In the fourth quarter of 2013, the share of Euro 5 diesel fuel rose to 30.6% compared to 25.1% in the same period in 2012.

A 6.7% increase in the output of other petroleum products was caused by an expansion of the range of commodities, including an increase in the output of bitumen, jet fuel and marine fuels. In 2013 the output of VGO added 8.3% as the Company took measures for ensuring that its process units fully comply with industrial safety requirements.

Preliminary operating results for the fourth quarter and the 12 months of 2013

*- the barrel-tonne conversion factor is 7.3
** - the barrel-tonne conversion factor is 7.45
*** - development of the R. Trebs and A. Titov fields