Bashneft

OAO ANK Bashneft is the parent company of the Bashkir fuel and energy complex group, which is part of the Top10 oil production enterprises of the Russian Federation and the Top5 oil refining enterprises of the Russian Federation.

Aktivs

The production unit of the group is allocated to the operating company for the extraction of raw materials LLC Bashneft-Dobycha"."

The processing unit is represented by three oil refineries (OJSC Ufa Oil Refinery, OJSC Ufaneftekhim, OJSC Novoil) and one petrochemical plant of OJSC Ufaorgsintez.

The group also includes the sales company Bashkirnefteprodukt OJSC, which specializes in the sale of motor fuels through a network of gas stations and oil depots and BashNIPIneft. At the end of 2011, Bashneft owned and operated 460 gas stations (including 20 stations under management).

The products of the Bashneft ANC enterprises are sold in Russia, and are also exported to Western Europe, the Czech Republic, Hungary, Kazakhstan, Ukraine.

Bashneft is a member of the Interregional Exchange of the Oil and Gas Complex (MBNK) and the St. Petersburg International Commodity Exchange (SPIMEX).

The number of employees of the group's enterprises is about 22 thousand people.

Performance indicators

2023: Revenue - RUB 1.03 trillion

In 2023, Bashneft earned 1.03 trillion rubles in sales revenue and profit from joint ventures. The company's net profit reached 178.88 billion rubles. The Group published such data in accordance with International Financial Reporting Standards (IFRS) on February 20, 2024. The financial statements under IFRS for 2022 were not published.

According to Russian accounting standards (RAS), Bashneft's revenue in 2023 increased by 10.8% compared to 2022 and amounted to 766.49 billion rubles. Gross profit increased by 8.4%, to 234.88 billion rubles. The company's cost of sales reached 529.92 billion rubles (+ 11.9%), profit from sales - 162.04 billion rubles (+ 20.5%).

source = Bashneft

Bashneft has oil reserves and a resource base in the Volga-Ural province, Timan-Pechora and Western Siberia. The company has more than 180 fields in industrial operation (by the end of 2023). Bashneft also conducts geological exploration abroad - in Iran and Myanmar. The company's refinery complex includes three production sites - Bashneft-UNPZ, Bashneft-Novoil and Bashneft-Ufaneftekhim - with a total capacity of 23.5 million tons per year.

In 2023, Bashneft, thanks to the successful conduct of geological exploration, increased hydrocarbon reserves by 24.4 million tons of oil equivalent, the recovery factor of reserves amounted to 135%. Based on the results of drilling prospecting, appraisal, exploration and development wells, Bashneft geologists discovered 32 new oil deposits in 2023 at fields under development located mainly in the Republic of Bashkortostan, as well as in the Khanty-Mansi Autonomous Okrug - Ugra. In total, from 2019 to 2023, Bashneft increased oil and gas reserves of the industrial category in the amount of more than 170 million tons of oil equivalent.

Bashneft reporting for 2023

2021: Revenue growth by 60%, to 851.66 billion rubles, profit - 84.93 billion rubles

In 2021, Bashneft's revenue amounted to 851.66 billion rubles, an increase of 60% compared to the previous year. Net profit reached 84.93 billion rubles, while in 2020 there were net losses in the amount of 12.5 billion rubles.

Almost all revenue came from the sale of oil, gas, petroleum products and petrochemicals - 845.04 billion rubles. Auxiliary services and other sales added 6.48 billion rubles to the turnover against 5.34 billion rubles at the end of 2020. Profit from Bashneft's joint ventures in 2021 turned out to be equal to 143 million rubles, while a year earlier losses of 24 million rubles were registered.

In 2021, Bashneft got rid of losses

According to a press release, a significant improvement in financial and economic indicators was the result of high efficiency of production activities. In 2021, Bashneft increased oil production in Bashkortostan, the main region of its activities, by 7.7%. 11.6 million tons were produced in the republic, and in total in all regions - almost 13.8 million tons of oil.

The key areas of Bashneft's investments remain strengthening the resource base and increasing the efficiency of oil production.

Drilling in production drilling in 2021 amounted to 525 thousand meters. 254 production wells were drilled, which is 22% more than in 2020, of which 228 were with horizontal completion. Thanks to this, the company was able to quickly restore oil production as the restrictions imposed under the agreement of the OPEC + countries eased.

In 2021, the group discovered 88 new productive deposits in the Republic of Bashkortostan, the Khanty-Mansi and Nenets Autonomous Districts, and the Orenburg Region. The increase in reserves amounted to 43.5 million tons, which is more than three times more than a year earlier. The volume of processing amounted to 16.1 million tons, which is 3.9% higher than in 2020.^[1]

2017: Oil production 10.4 million tonnes

For the period January-December 2017, oil production in Russia:

• Rosneft - 210.8 million tons (-0.3%),
• Lukoil - 82.2 million tons (-1.6%),
• Surgutneftegas - 60.5 million tons (-2.1%),
• Gazprom Neft - 59.9 million tons (+ 3.8%),
• TATNEFT - 28.9 million tons (+ 0.9%),
• Novatek - 11.8 million tons (-5.5%),
• Bashneft - 10.4 million tons (-3.4%),
• Russneft - 7.0 million tons (+ 0.2%),
• Neftegazholding - 2.1 million tons (-7.5%).

2015: 19.9 million tons of oil produced

According to the results of 2015, the company ranks 6th in terms of oil production (19.9 million tons) and 4th in terms of primary oil processing (19.1 million tons) among oil companies in Russia. Bashneft accounts for 3.7% of total production and 6.8% of total oil refining in Russia.

History

2024

The introduction of 24 IT systems that helped increase the production of petroleum products

At the end of spring 2024, it became known that Bashneft completed the introduction of 24 intelligent IT systems at its refineries in Ufa, which led to a significant increase in the production of petroleum products. These solutions are part of the large-scale Digital Plant project aimed at improving production efficiency.

According to the press service of Rosneft (owns Bashneft), new systems for improved process control are capable of analyzing hundreds of parameters in real time and automatically regulating the operation of installations. This made it possible to optimize production processes at three Ufa refineries: Bashneft-Novoil, Bashneft-UNPZ and Bashneft-Ufaneftekhim.

source = Bashneft

The result of the implementation was an increase in the output of key high-margin products by 64 thousand tons. The total economic effect of using new systems exceeded 1 billion rubles. In addition, 8 more systems are at different stages of implementation, which promises further growth in indicators.

The Digital Plant project includes not only the introduction of intelligent control systems, but also the robotization of production processes, predictive analytics of equipment operation, as well as the use of augmented and virtual reality technologies to train employees.

The introduction of hardware and software systems at the Ufa refinery group has become one of the largest such projects in the Russian oil refining industry, the company's press service noted.

It is worth noting that the Bashneft Ufa oil refining complex has a total processing capacity of up to 23.5 million tons of raw materials per year. In 2023, the depth of oil refining at Ufa refineries amounted to 86.4%, which exceeds the industry average in Russia.^[2]

Vladimir Chernov - the new head of Bashneft

On June 20, 2024, it became known about the appointment of Vladimir Chernov as the new general director of Bashneft instead of Andrei Lazeev, who, after leaving this post, headed RN-Vankor (operator of the Vankor cluster fields included in Rosneft's Vostok Oil project) and NGH-Nedra (part of Taimyrneftegaz, which owns the Payakhsky field, also included in Vostok Oil). Read more here.

2022: Andrey Lazeev is Bashneft's new head

On May 24, 2022, Bashneft announced the appointment of Andrei Lazeev as the new CEO of the company. He replaced Hassan Tatriev, who was included in the British sanctions list in March 2022. Read more here.

2016: Bashneft moves to Rosneft for 329.6 billion rubles

On October 10, Russian Prime Minister Dmitry Medvedev finally decided the fate of Bashneft. By order of the prime minister, the asset will go to Rosneft for 329.6 billion rubles, which is 16% higher than the market price. Experts point out that to improve the investment climate, it would be better to invite foreign investors, but fiscal considerations in this case had more weight^[3]

Bashneft was put in line for privatization at the end of May, although the market began to talk about its possible sale back in late 2014 - early 2015, when the company passed from AFK Sistema Vladimir Yevtushenkov to the state. The privatization of Bashneft is designed to replenish the budget. Funds from the sale of the asset will immediately go to the budget.

In addition to Rosneft, LUKOIL, Russneft Mikhail Gutseriev, NNCs of the former head of Rosneft Eduard Khudainatov, Tatneft, Tatneftegaz Sergei Bakhir and the Energia fund of ex- power Minister Igor Yusufov announced their interest in acquiring the asset. But the market from the very beginning assumed that other candidates would not be able to compete with Rosneft in monetary terms.

At the same time, it was Rosneft's candidacy that caused the greatest controversy in the government, the relevant departments could not decide for a long time whether Rosneft, as a state-owned company, had the right to participate in the privatization of the state asset. The contradictions were finally resolved at the end of September, when Igor Shuvalov announced that there were no restrictions on Rosneft.

Dmitry Medvedev said he expects to make all the necessary agency decisions and work to find the necessary investors to sell 19.5% of Rosneft by the end of 2016.

2015: Part of Bashneft's state package is transferred to the government of Bashkiria

Russian President Vladimir Putin signed a decree on the transfer of part of the Bashneft state package to the government of Bashkiria, TASS reports. The government of Bashkiria will receive 38 million 128 thousand 551 ordinary shares and 6 million 280 thousand 76 preferred shares.

The property of the Federal Property Management Agency will remain 50% plus 1 share. In addition, according to the decree, the company is included in the list of strategic enterprises of the Russian Federation. The decree comes into force from the date of its signing. Thus, Bashkiria will receive 25.79% of ordinary and 21% of preferred shares of Bashneft.

Earlier, the head of the republic, Rustem Khamitov, said that Bashkiria expects to receive a stake in Bashneft by the end of June-July 2015. And the head of the company, Alexander Korsik, noted that Bashkiria could receive dividends from Bashneft in 2014 in the amount of 5 billion rubles, and the state - about 10 billion rubles. Bashneft's board of directors previously recommended that the meeting of shareholders set July 17 as the date on which the persons entitled to receive dividends are determined. The amount of dividends recommended by the Bashneft Board of Directors is 113 rubles per ordinary and preferred share. In total, 20.07 billion rubles can be allocated for the payment of dividends.

In December 2014, the state received almost 74% in the authorized capital of Bashneft, suing them from the former owner of AFK Sistema.

2014: Court rules to return company shares to state

The Moscow Arbitration Court seized the company's securities in September 2014 at the suit of the Prosecutor General's Office, in which it seeks their claim from "someone else's and illegal treatment" with subsequent transfer to the Federal Property Management Agency. Earlier, the actions were arrested as part of the criminal case of the son of the ex-head of Bashkiria, Ural Rakhimov, who sold them to AFK. However, the criminal prosecution of the latter may be terminated after the expiration of the statute of limitations^[4].

In October 2014, the Moscow Arbitration Court granted the petition of the Prosecutor General's Office to return the shares of Bashneft to state ownership. On what basis the court made such a decision is still unknown - the motivation part will be prepared within five days. At the meeting, prosecutors said that the privatization of Bashneft was illegal and took place without sanctions from the federal authorities. Representatives of AFK Sistema considered the claims of the Prosecutor General's Office unlawful, explaining that the transaction itself for the purchase of shares was legal^[5].

2013: 16.1 million tons of oil produced (6th place in Russia)

According to the results of 2013, the company ranks 6th in terms of oil production (16.1 million tons) and 4th in terms of primary oil processing (21.4 million tons) among oil companies in Russia. Bashneft accounts for more than 3% of total production and about 8% of total oil refining in Russia. The company's proved oil reserves as of December 31, 2013 amounted to 2.045 billion barrels according to the PRMS classification, and the availability of reserves is 18 years.

2011: 15.1 million tons of oil produced (+ 6.8 %)

In 2011, oil production increased by 6.8% compared to the previous year and reached 15.1 million tons. At the end of 2011, Bashneft reached the optimal level of oil production ahead of schedule.

The company's exports amounted to 3.6 million tons of crude oil and 9.2 million tons of petroleum products in 2011, compared to 3.2 million tons and 7.8 million tons in 2010, respectively.

Bashneft refineries processed 5.3 million tons of crude oil in the fourth quarter of 2011, showing an increase of 1.5% compared to the corresponding period of 2010. In 2011, capacity utilization decreased from 87.9% to 87.4%, the refining depth was 85.9%, and the yield of light products amounted to 60%.

In October 2011, Bashneft won an auction for licenses for three subsoil plots near the fields named after R. Trebs and A. Titov in the Nenets Autonomous Okrug of the Russian Federation, paying 292.2 million rubles.

In October 2011, Bashneft approved a project for pilot operation of the R. Trebs and A. Titov fields in the Central Development Commission (CDC) of the Federal Agency for Subsoil Use of the Russian Federation.

In November 2011, Bashneft completed the repurchase of its non-convertible interest-bearing bonds totaling RUB 40.4 billion (approximately US $1.3 billion).

In December 2011, Bashneft placed on the MICEX exchange-traded bonds series BO-01 a total face value of 10 billion rubles with an offer 2 years after the date of the placement.

In December 2011, Bashneft won auctions for licenses for two subsoil plots in the Republic of Bashkortostan: Yelansky and Znamensky-1.

In December 2011, Bashneft acquired 100% of LLC SKON Group of Enterprises, which owns an oil depot and a network of 25 gas stations in Yekaterinburg and the Sverdlovsk Region operating under the ERGO brand.

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