Key events of 2018

February Standard & Poor’s upgraded the long-term foreign currency credit rating of Transneft with respect to obligation in foreign currency to «stable».
Credit rating Current rating / outlook Previous rating / outlook
With respect to obligations in foreign currency BBB—/Stable BB+/Positive
With respect to obligations in national currency BBB/Stable BBB—/Positive
March 100 percent of CPC Investments Company’s shares and 100 percent of CPC Company’s shares were removed from trust management and transferred to the ownership of Transneft.
Direct contracts for in-line inspection were signed by Transneft Diascan, the Pipeline Transport Institute and the Algerian government-owned oil and gas company Sonatrach.
April Implementation of Transneft’s Long-Term Development Programme for 2017 was audited. An independent auditor’s opinion was received, which confirmed the fairness of the Report on Implementation of Transneft’s Long-Term Development Programme for 2017.
Under the memorandum on cooperation between Transneft and KazTransOil, an agreement was signed between KazTransOil and TOMZEL on pilot testing of an electric drive and a device for dissolving bottom sediments at facilities in Kazakhstan.
May Amendments to Transneft’s Articles of Association were registered due to the increase of the Company’s authorised capital owing to the contribution put up by the Russian Federation in the form of 100 percent of shares of CPC Company and CPC Investments Company, owned by the federal government.
July The USD loan issued by the China Development Bank was repaid in full.
Decision was made to pay out the record-breaking dividends in the amount of RUB 82.5 billion according to Directive of Rosimushchestvo No. 498-r dated 30 June 2018.
August Scheduled Eurobond extinguishment in the amount of USD 1.05 billion was completed.
Thus, Transneft paid off its foreign currency debt in 2018, thereby reducing its currency exposure and interest risks.
September The troughput capacity of the oil trunk pipelines for delivering oil to TANECO’s refinery was increased to 14 MTPA.
The equity stake held by Transneft in the capital of NCSP Group was increased to 62 percent. The deal was closed by acquiring 100 percent of shares in the Novoport Holding joint venture, that controlled 50.1 percent of NCSP and was owned by Transneft on a par with Summa Group.
October A factory manufacturing high-voltage electric motors belonging to Russian Electric Motors was launched. The factory was built in cooperation with the Italian partner Nidec in the area of the Stankomash industrial park. That is the second entity of Transneft in Chelyabinsk that was established in response to the instructions for setting up local manufacture of major production facilities in the territory of Russia in order to ensure self-sufficiency and independence of the industries critical for the national economy.
The railroad loading rack at the Tinguta IPS was commissioned as part of Phase 2 of the Yug project. It provided the opportunity to receive diesel fuel into the pipeline system from rail transport for further transfer thereof to the port of Novorossiysk.
An agreement between Transneft and Gazprom was signed, which envisages coordinated efforts for setting up and developing gas fuelling infrastructure in the points of high priority for Transneft, where motor and special-purpose vehicles using compressed natural gas operate, along with improvement of economic benefits of its use.
An agreement between Transneft and Chevron was signed, which not only envisages continued exchange of experience but also launches a dialogue at the level of expert boards and roundtable discussions devoted to the matters of current interest for the industry and cooperation of the R&D units of the companies.
November Transneft shipped the billionth tonne of liquid hydrocarbons (oil and diesel fuel) for export via Transneft Primorsk Port from the date of loading the first tanker in 2001. The billionth tonne of oil was loaded onto the Mastera tanker, heading for the port of Porvoo (Finland), on 23 November 2018.
As of 23 November 2018, the amount of oil shipped out of the port of Primorsk (since it was put in service) reached 901.2 million tonnes (9,099 tankers handled). 98.8 million tonnes of diesel fuel were shipped (with 3,361 tankers handled). A total of 12,460 tankers were handled, with 1 billion tonnes of oil and petroleum products shipped.
Transneft’s delegation, headed by President of the Company Nikolay Tokarev, took part in the tenth meeting of the Governing Board of the International Association of Oil Transporters. The meeting was held on 27 November 2018 in Beijing (the People’s Republic of China) under the chairmanship of Mr. Ling Xiao, Vice President of PetroChina Company Ltd. During the meeting, the results of the Association’s work in 2018 were summed up and the plan of activities for 2019 was updated.
December A project for developing the trunk pipeline system was implemented in order to increase the supply of petroleum products to the port of Primorsk up to 25 MTPA (the Sever project). 2018 saw commissioning of the Vtorovo — Filino PPTP, the Vorotynets-1 BPS, revamped facilities of the Ryazan LODS, the Starolikeyevo IPS and the Vtorovo BPS.
The Revamping of the System of Trunk Pipelines for Increasing Petroleum Products Transportation to the Moscow area project was completed. That enabled the Company to increase the transit capacity for motor petrol, diesel fuel and aviation kerosene. Within the project, 2018 saw completion of a comprehensive revamping of the Volodarskaya LODS, the Nagornaya LS and the Solnechnogorsk LS, as well as construction of the Shilovo-3 — Ryazan petroleum products pipeline and the Shilovo-3 initial pumping station, whose railroad loading rack can receive aviation fuel for further pumping towards the Moscow Aviation Hub.
Transneft’s amended Long-Term Development Programme was adopted to be the main planning document for Transneft’s operations and designed to determine the main measures aimed at achieving the strategic goals set for the period until 2023.
The station for loading oil into tank vehicles at the Nevskaya oil pumping station (Leningrad Region) was commissioned.