TATNEFT and SPIMEX Move Forward with Cooperation

 

The interim results for 10 months of 2021 in the OTC market electronic trading system (ETS BP SPIMEX) exceeded two million five hundred thousand tonnes of petroleum products (2,500 thousand tonnes).

TATNEFT has been using the SPIMEX electronic platform to sell products since December 2019 and all procedures have been carried out using the electronic auction mechanism as the most open and competitive trading mode since September 2020. More than 100 non-resident companies have been registered to participate in the trades in various groups of goods in the TATNEFT’s segment of SET BP. The largest traders have highly appraised the availability, transparency and efficiency of the proposed mechanism, including the capability thereof that helps to reducing the transaction costs of the participating parties.

The practice of online trading continues and TATNEFT has expanded the Company’s product range in 2021. In addition, the Company uses the SET BP online auction mechanism to plan long-term sales: for example, a number of trading procedures were carried out in October 2021 with an intended delivery time scheduled until end of the 1st quarter in 2023.

Online auctions are an important step in introducing representative pricing mechanisms using the capabilities of the SPIMEX infrastructure. TATNEFT contributes to the development of the exchange's auction platform functionality to support national economic interests in the area of international trading. This approach forms the pricing of hydrocarbon raw materials using information on the actually completed transactions.

JSC SPIMEX, for its part, systematically scales up its experience in organizing the online hydrocarbon export sales, extends it to new product groups and markets, introducing modern digital technologies in the area of trade and transparent formation of pricing of Russian goods.

 

Vladimir Karpov, Head of Oil and Petroleum Products Sales Department of PJSC TATNEFT:

“Cooperation with the St. Petersburg Commodity and Raw Materials Exchange has fully justified itself. The transition to transparent pricing mechanisms has increased the client base, and the marginality of transactions has increased. We have expanded the geography of sales, while reducing labor costs for organizing trade procedures. In the future, together with SPIMEX, we will develop our site, expanding the range of the products sold by TATNEFT.

Anton Karpov, Vice President of SPIMEX:

 “TATNEFT Company actively uses the capabilities of the SPIMEX trade infrastructure when selling petroleum products for export. Online auctions held on the Exchange's electronic platform represent another step in solving the task set by the President of the Russian Federation to form price indicators for the hydrocarbons exported. Our joint work fully meets the goals of the National Plan for the Development of Competition until 2025”.

 

Reference Information

PJSC TATNEFT named after V.D. Shashin is one of the largest Russian oil companies, which dynamically incorporates the development of oil and gas production, oil refining, petrochemicals production, a tyre manufacturing complex, a network of filling stations, as well as electric-power engineering, development and manufacturing of equipment for the oil and gas industry and a block of service structures. TATNEFT also participates in the capital in of the financial (banking and insurance) sector companies. The Company’s website: https://www.tatneft.ru/.

St. Petersburg International Commodity Exchange (SPIMEX) is the largest commodity exchange in Russia, which organizes exchange trading in the markets of petroleum products, oil, natural gas, LPG, timber and building materials, mineral fertilizers, as well as in the derivatives market. SPIMEX implements the task of creating a transparent mechanism for the formation of fair prices for Russian goods. The stock exchange was established in May 2008. The exchange license and clearing license are posted on the website.