Downstream Overview

Moscow Oil and Gas Company (MOGC)

Sibir's downstream assets in refining and marketing are held primarily through its 100% ownership of MOGC. Key assets include a 50% stake in a 50/50 joint venture with Gazprom Neft that controls and manages the 240,000 bopd Moscow Refinery (100,000 bopd operating capacity net to Sibir), 100% ownership of the 69-station MTK retail fuels network in Moscow and 69,9 % ownership of the 64-station Mosnefteprodukt retail network and storage terminals network in the Moscow region.

Moscow Market

With a metropolitan area population of over 16 million, Moscow is the largest city in Europe. Some 100,000 cars are added to Moscow City streets every year making it the Continents fastest growing market with some of its highest retail fuels margins. The Moscow Refinery is the city's primary supplier of fuels which, together with our retail fuels market share position of over 20%, provides significant price support for our refined products.

Trading Operations

Sibir manages all downstream supply and trading operations through the trading arm of its subsidiary, Magma Oil Company. Domestic crude from the Yuzhnoye and Salym oil fields and third party suppliers is supplied directly and through crude swaps to the Moscow Refinery to fulfill Sibir's 100,000 bopd share of the refining quota. Sibir retains title to all products through the refining process until it is sold to the Moscow retail networks or shipped for export. The trading group likewise manages crude export operations for the company.