POGRUZNENSKAYA NEFTEBAZA is one of fastest growing company inrefined petroleum products and crude in Russian Federation, withfew top Producing and Refinery Companies as their Mandate, we alsowork direct with companies that buy and resell refined petroleumproducts. 0pen Joint Stock Company "POGRUZNENSKAYA NEFTEBAZA" is asubsidiary of the "Tatneft" Group. The focus of its activities isoil and gas production, processing, geological surveys, sale ofproducts.POGRUZNENSKAYA NEFTEBAZA is situated in the industrial area in theSouth East of Tyumen, near samara settlement. The region is thehome of the greater part of the Russian oil (72%) and natural gas(91%) reserves. However, being one of the largest oil-producingregions, the samakaskaya Region has to import some 1.2 million tonsof light oils from other regions including Omsk Oil Refinery (550km from Tyumen), Ufa Oil Refinery (800 km) and Permnefteorgsintez(600 km).That makes it logical to construct an own oil refinerywithin the region. In light of the struggle with mini oilrefineries producing improper fuel, construction of an advanced oilrefinery comprising new technologies is an issue of high priorityas it can help replenish the market with high-quality oil products.On November 4, 2006, phase I of POGRUZNENSKAYA NEFTEBAZAconstruction with the estimated capacity of 400 thousand tons ofprocessed oil per year was approved for start-up by Tyumenauthorities. As at the end of 2009 the actual capacity of phase Ifacilities reached the point of 800 thousand tons per year thanksto re-equipment and modernization. On April 9, 2010, Tyumenauthorities authorized commissioning of phase II facilities withthe estimated capacity of 2, 750 thousand tons per year. As thesecond phase facilities are under modernization, the capacity willincrease by up to 3, 300 thousand tons per year before the yearend. Now that phase II facilities are launched, capacity of the oilrefinery is 3, 500 thousand tons per year and it is going to reachthe point of up to 4, 1 million tons per year by the end of 2010.No production plant of the similar capacity has been launched inthe Russian Federation during the past 28 years. Specifications forconnection of the oil refinery to main oil pipelines issued byTransneft JSC imply the total capacity of 6 million tons per yearin view of the refinery development including the 3rd constructionphase. Oil processing units form the basis of POGRUZNENSKAYANEFTEBAZA. The refinery comprises common facilities intended toproduce oil, provide the processing units with energy sources,ensure quality control over processes, raw materials and finishedproducts, and provide the refinery with water, heat and electricenergy. The refinery is connected to main oil pipelines ofTransneft JSC at the oil pumping station Tyumen-3 and has a crudeoil delivery and acceptance point with a LACT unit and oil meteringstation No.1006. There are 2 both-way railway tank filling racks, 3oil and oil-stock discharging racks, 2 road tanker filling racks, aunified network-integrated automated control system, high-speedexternal PRODUCTS WE PRODUCE AND EXPORTS Now that Phase II isimplemented the product range includes: 1. Diesel fuel brands asfollows: - summer diesel: L-0.2 - 62 (GOST); - summer diesel: 0.1(EURO); - winter diesel; - polar diesel 2. Low-sulphur fuel oil (upto 1%) - M40 3. Process fuel for export - PFE 4. Stable naturalgasoline - SNG After Liquefied Hydrocarbon Gases Storage Depot isestablished and ELOU-AT-2 is reequipped (by the end of 2010) 3 moreproducts will be offered for sale: 1. СLPG (GOST) 2. Commercialbutane - CB 3. Nefras (petroleum solvent) After Phase III isimplemented the product range will include: 1. Gasoline: - A-92; -A-95 (Euro-5); - A-98 (Euro-5); 2. Nefras (petroleum solvent) 3.Liquefied gases: - Commercial butane (CB); - LPG 4. Diesel fuel: -D-Euro-5 (10 ppm); - summer diesel; - winter diesel; - polar diesel5. Bunker fuel oil M-40 (total 1-2% of the overall volume) 6. Gasoil (export) 7. Petroleum coke 8. 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