Sign in to follow this  
Followers 0

Some information about the transport of oil in the Russian Federation, i.e. the company Transnieft

Recommended Posts



The weighted average tariff of PJSC "Transneft" in 2018-2019, calculated for 100 tkm of oil trade, is more than half of the median value for comparable companies: $ 0.87 against the median of $ 2.13 - according to the review of the results of the Russian monopoly and foreign analogues prepared by KPMG.
"This tariff value is one of the lowest among oil pipeline companies," notes the consultant.
The situation is similar with the tariff for the transport of petroleum products - its value for Transneft is over 32.9% lower than the median among foreign companies: USD 2.12 against USD 3.16.
The comparison according to the weighted average tariff per 100 tkm allows to take into account the factor of differences in the length of the transport lever from oil collection points to delivery points and to minimize the error resulting from differences in the scale of enterprises - explains the report.
The value of Transneft's specific operating costs for oil transport in 2019 was 3.2 times lower than the median: USD 0.31 / 100 tkm compared to the median USD 1.01, in the case of petroleum products - two times lower: USD 0.81 compared to from $ 1.61 ...
In 2018-2019, Transneft's EBITDA margin was stable at 44-46%, but slightly below the median (50%) for the compared companies.
The depreciation rate for the Russian monopoly's fixed assets in 2019 (41%) was below the median (46%). Judging by the slight increase in wear and tear, Transneft is currently spending a significant amount of funds on reconstruction and modernization, as well as building a new structure, KPMG notes.
The specific accident rate during transport through the main PJSC pipelines in 2019 was 17 times lower than the median among comparable companies (0.06 vs 1.05). Last year, the value of the leakage rate to the length of Transneft's pipelines was several thousand times lower than the median value (0.0003 compared to 5.43).
In 2019, the physical labor productivity in Transneft was more than twice as high as the median (17.6 million tonne kilometers / person versus 7.6 million tonne kilometers / person). Among foreign companies, ExxonMobil Pipeline Co showed high work efficiency (18.4 million tonne-kilometers / person in 2018), Chevron Pipeline Co was the worst - 0.7 million tonne-kilometers / person.
The final scope of the KPMG study included 62 foreign companies: 44 companies from the US and Canada, 11 European companies and seven companies from South America, Africa and the Asia-Pacific region.
The study confirmed that there are no PJSC Transneft analogues among foreign pipeline companies that would be comparable to the company in terms of the scale of pipeline activity in terms of key production indicators: freight performance, freight volume, transport arm, pipeline length and transport revenues, KPMG notes. Thus, in the years 2018-2019, the trade in goods of the Russian company amounted to over 1.2 trillion tonne-kilometers, which is over seven times more than the index of the company with the highest turnover of goods in the United States in the surveyed sample (Enbridge).

I decided that since this issue is extremely important in the field of oil production in the USA and Canada, it is worth quoting a basic article about the giant - the Russian publicly traded company Transnieft, in which the Russian government seems to have a significant stake and some shares are also listed on the stock exchange.

As far as I know, this company has a practical monopoly on the transport of crude oil and petroleum products in the territory of the Russian Federation.

It is only really strange that this report omits last year's big scandal with the contamination of the Druzhba pipeline, because it has such big scandal impact  that paradoxically it contributed to the fact that oil exports in the second quarter, especially in June, were not really  lower than in 2019 and the effects of export cuts were not felt by Russia until 3rd q. Thus, officially, in the second quarter, the Russian GDP fell by 8% year on year and in the third quarter by 3.6% and, according to the Ministry of Economy, 1.6% of these 3.6% is a decline in oil production.

Edited by Tomasz

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

You are posting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  
Followers 0