Merchandise

Oloreso Petroleum’s Merchandising and Transportation (M&T) Business Unit: Optimizing Crude Oil and Refined Product Sales

 

The Marketing and Transportation (M&T) business unit plays a crucial role in connecting Oloreso Petroleum’s upstream segment to its broader business structure. With a focus on maximizing profits through crude oil and refined product turnover transactions, M&T aims to grow crude export, import, processing, and refined product sales in the most cost-effective ways possible.

M&T is instrumental in managing crude oil transportation through Oloreso Petroleum’s trunk oil pipelines and overseeing the distribution of oil products via various loading terminals and transportation methods, including rail and motor transport. This strategic approach ensures that Oloreso Petroleum meets its business objectives and delivers on both domestic and international markets.

Core Structural Divisions of M&T

 

Oloreso Petroleum’s M&T business unit operates through several core subdivisions, each responsible for a specific aspect of crude oil and refined product transportation and sales:

1. Crude Oil Marketing

The Crude Oil Marketing subdivision focuses on the purchase and export sales of crude oil, as well as domestic and international crude oil marketing. It ensures that crude oil is efficiently transported for refining and handles the export of oil to meet the company’s growth objectives.

2. Oil Product Marketing

This subdivision manages the purchase and sale of refined oil products, including gasoline, diesel, fuel oil, jet fuel, vacuum gasoil, and liquefied gas. It is responsible for both domestic and export market sales, working closely with Oloreso Petroleum’s tollers on processing service agreements. Furthermore, it ensures the fulfillment of the company’s social commitments related to refined product shipments in Kazakhstan and interacts with state authorities to manage domestic product distribution.

3. Logistics and Supply

The Logistics and Supply division is responsible for the planning, management, and coordination of crude oil delivery through Oloreso Petroleum’s pipeline network. It oversees the transportation of both crude and processed products from the company’s loading terminals for export and local distribution. This subdivision also manages commodity transportation, rolling stock, and coordination of crude oil supplies for refining.

4. Asset Management

This division manages and optimizes Oloreso Petroleum’s assets, including oil product acceptance, storage, and sales facilities. Asset Management is responsible for ensuring the technical condition of these assets, overseeing timely repairs, and facilitating necessary upgrades.

5. Market Development and Competition

Focusing on market analysis and research, the Market Development and Competition subdivision provides critical information support for Oloreso Petroleum’s various divisions. It conducts marketing research on existing and new products and monitors emerging market trends, ensuring that Oloreso Petroleum remains competitive.

6. Quality Control

M&T also places special emphasis on the quality of its products, ensuring that all oil and refined products meet the necessary standards and specifications, keeping the company in compliance with global quality expectations.

Economic Performance and Market Expansion

Oloreso Petroleum continually monitors and improves the economic performance of its oil monetization channels to increase the share of high-margin sales in its portfolio. The company’s robust marketing and transportation strategy contributed to impressive growth in oil supply and exports in recent years.

  • 2020 Growth: The company aimed to supply approximately 1.2 million tons of oil to its Russian operations, reflecting a 15% increase compared to 2019. Additionally, the company supplied 1.1 million tons of oil to plants where it holds a participation stake, marking a 3% increase over the previous year.

  • Export Growth: In 2020, oil exports to neighboring and distant nations exceeded 2.8 million tons. The company’s eastern export route to China emerged as the most economically advantageous, with supplies reaching 7.7 million tons in 2021—representing a 10.7% increase over the previous year.

  • Wider Export Reach: Oloreso Petroleum also saw significant growth in its export activities, shipping 65.7 million tons of oil to Northern, Central, and Eastern Europe, the Mediterranean, and other distant regions. The Commonwealth of Independent States (CIS) received 8 million tons of oil exports.