Gazprom Neft pursues diversification of downstream business

After sowing the benefits of downstream diversification in the third quarter of 2012, Gazprom Neft, Russia’s fifth-largest oil producer, is pursuing plans to expand its share in the sector.
Over the first nine months of 2012, the company had a 20% growth in premium sales volumes, including retail, aero fuelling and lubricants, which is described by VTB Capital analysts as “highly value accretive,” because it represents a welcome expansion into high-margin non-core activities. Because of these, Gazprom Neft will proceed with its refining modernization program, and will finish construction of an isomerization unit at its Moscow refinery.
The company has a target refining capacity of 41.6 million tons in 2012, compared to 40.5 million tons in 2011. (November 15, 2012)