On May 3, 2007, LLC Neft-Aktiv, a 100% held indirect subsidiary of Rosneft, was declared the winner of an auction for Lot 10 of the YUKOS assets being sold in connection with the company's bankruptcy proceedings. After an opening price of RUR 166,339,025,000, Neft-Aktiv offered the winning bid of RUR 175,699,000,000.
Lot 10 consists of stakes in 37 enterprises, the most material of which include:
- 100% of Tomskneft-VNK;
- 70.78% of East Siberian Oil and Gas Company;
- 100% of Angarsk Petrochemical Company;
- 100% of Achinsk Refinery;
- 100% of Angarsk Polymer Plant;
- 100% of Strejevskoy Refinery;
- 25.88% in entities operating in power market in the Tomsk Region, including Tomskenergo, Tomsk Distribution Company, Tomsk Energy Retail Company, Tomsk Transmission Networks and others;
- Numerous controlling stakes in oil products distribution companies owning retail stations and oil product storage facilities in Eastern Siberia, including Irkutsknefteprodukt (100%), Buryatnefteprodukt (95.11%), Khakasnefteprodukt VNK (100%) and Tomsknefteprodukt (100%).
OJSC Tosmkneft VNK (Tomskneft) was established in July 1993. The company is engaged primarily in oil and gas production in the Tomsk Region and the Khanty-Mansiysk Autonomous District. According to a reserve audit performed by Miller and Lents, as of January 1, 2006 proved reserves at Tomskneft under SPE classification amounted to 1.0765 billion barrels of oil equivalent, proved and probable reserves were 1.8254 billion barrels of oil equivalent. In 2006, Tomskneft produced 11.6 million tonnes of crude oil and 1.599 billion cubic meters of gas. Tomskneft owns exploration and production licenses for over 20 fields.
East Siberian Oil and Gas Company
OJSC East Siberian Oil and Gas Company (VSNK) was established in April 1994 as a successor to state enterprises Eniseyneftegazgeologiya and Eniseygeophysika. The company owns an exploration and production license for the Yurubchensky block of the Yurubcheno-Tokhomskoye oil and gas field, as well as an exploration license for the Agaleevsky gas condensate field in the Eastern Siberia. As of January 1, 2005, the company's recoverable reserves under Russian C1 and C2 classifications amounted to 74.6 million and 237.8 million tonnes of oil and gas condensate and 127.5 billion and 408.6 billion cubic meters of gas, respectively. The Yurubchensky block at the Yurubcheno-Tokhomskoye oil and gas field is located in the Baikitsky region of the Evenkiysky Autonomous District, which is located 150 kilometers south of Baikit.
Angarsk Petrochemical Company
OJSC Angarsk Petrochemical Company (Angarsk Refinery) was established in August 1993. Primary refining capacity is 16.4 million tonnes. In 2006, the refinery processed 8.7 million tonnes of oil with a capacity utilization rate of 53%, producing 1.4 million tonnes of gasoline, 0.5 million tonnes of jet fuel, 2.5 million tonnes of diesel and 1.8 million tonnes of fuel oil. The refinery is equipped with primary distillation, reforming, hydrotreatment of diesel fuels and catalytic cracking units. The refinery is able to produce Euro-2 quality gasoline as well as GOST 305-87 quality diesel fuel with 0.2% sulphur content. Usage of secondary processes, such as catalytic cracking and tar production, has allowed the refinery to increase refining depth in the last five years from 73.5% to 78.1%. The Angarsk Refinery plays an important role in the Siberian oil products market and is the ninth largest producer in Russia.
Achinsk Refinery VNK
OJSC Achinsk Refinery VNK (Achinsk Refinery) was established in May 1993. The refinery began operating in the 1980s and is the only producer of oil products in the Krasnoyarsk Territory. Primary capacity at Achinsk Refinery is 6.5 million tonnes. The refinery`s technological chain includes primary distillation, catalytic reforming, hydrotreatment of jet and diesel fuels, a tar producing unit and gas fraction units. In 2006 the refinery processed 5.6 million tonnes of oil, producing 1.1 million tonnes of gasoline, 0.3 million tonnes of jet fuel, 1.7 million tonnes of diesel fuel and 2.1 million tonnes of fuel oil. Light product yield varied from 56-57%. The Achinsk Refinery plays a major role in the central Siberian oil products market, serving both local customers and neighboring regions.
The retail businesses acquired include 8 retail subsidiaries controlling 236 retail stations which sell approximately 2000 tonnes per station annually.
The acquisition of the above enterprises is a significant step in Rosneft?s development which will accelerate improvements in the Company's operational and financial performance via improved vertical integration, resulting earnings growth particularly from the attractive downstream market in Russia, and benefits of scale.
Rosneft intends to publish more detailed information on the acquired assets including production, cost cutting and investment plans in July 2007 during its first annual performance review presentation with investors.