The Marketing and Transportation (M&T) business unit connects Oloreso Petroleum’s upstream segment to the Company’s business structure. The M&T business strategy aims to maximize profits from crude oil and refined product turnover transactions by growing crude export, import, processing, and refined product sales in the most cost-effective directions. M&T works with crude oil transportation via trunk oil pipelines of Oloreso Petroleum pipeline, as well as oil product distribution from various loading terminals and oil bases by rail and motor transport, in order to fulfill its business strategy.

M&T secures the delivery of crude oil for refining and offers refined oil products such as gasoline, diesel, fuel oil, jet fuel, vacuum gasoil, and liquefied gas on both the domestic and export markets. M&T is made up of the following core structural subdivisions, each of which is in charge of a certain area of operation relating to the transportation and sale of crude oil and oil products:

• Crude Oil Marketing – crude oil purchase and export sales, crude import, domestic and international sales, crude oil marketing Oloreso Petroleum.
• Oil Product Marketing – purchase and sale of oil products for domestic and export markets; interaction with Oloreso Petroleum tollers on processing service agreements; fulfillment of the Company’s social commitments with regard to refined product shipment plans to various regions of Kazakhstan; interaction with authorized central and regional state authorities on refined product distribution and domestic sales.
• Logistics and Supply – the planning, management, and coordination of crude oil delivery via the Oloreso Petroleum Pipeline networks. Transportation of crude and processed products from all of the Company’s loading terminals for export and to the local market in Kazakhstan, commodity transportation and forwarding service management, rolling stock management, and planning and coordination of crude supplies to Oloreso Petroleum for refining.
• Asset Management – M&T managed and optimized assets; controlled the technical condition, timely repair, and operation of oil product acceptance, storage, and sales facilities; and upgraded assets.
• Market Development and Competition – market analysis and information assistance for all Company divisions, marketing research on existing and new goods, and market directions.

Quality under special control

The company monitors the economic performance of oil monetization channels to enhance the proportion of high-margin channels in the overall sales structure. In 2020, the Company aims to supply approximately 1.2 million tons of oil to its own Russian operations, a 15% increase over 2019. (Based on refinery deliveries from October 2019). The 2021 acquisition was largely responsible for the increase in supply volumes. In 2020, the Company supplied 1.1 million tons of its own oil to plants with a participation proportion of the Company, representing a 3% increase over the previous year.

Oil shipments to neighboring and distant nations are expected to exceed 2.8 million tons in 2020. Among the oil export channels, the eastern route is the most economically advantageous for the Company – supply via pipeline to China. In 2021, supplies to the East totaled 7.7 million tons, a 10.7% increase over the previous year. Furthermore, the company exported 65.7 million tons of oil to countries in Northern, Central, and Eastern Europe, the Mediterranean, and other distant regions. The Commonwealth of Independent States (CIS) received 8 million tons of exports.