Fact Book – p. 37-47
Transcription
Fact Book – p. 37-47
Oil refining LUKOIL on the world map Euro-5 As of July 2012 all of LUKOIL’s Russian refineries had switched to production of automotive gasoline that fully meets Euro-5 specifications. This provides a significant economic benefit due to the differentiation of excise taxes and also enables the Group to recoup its investments in refinery modernization. Company refineries One of the Group’s strategic objectives is to maximize the value-added of products and profitability of operations, by increasing the contribution of oil refining to the formation of Group value. Exploration and production LUKOIL strives to balance its extraction and processing volumes by giving much attention to the development of its refining business. Euro-5 gasoline ensures so-called ‘clean exhaust’, reducing emission of sulphur oxides and the products of incomplete combustion of aromatics (including the particularly dangerous carcinogen and mutagenic, benzopyrene). Sales of LUKOIL’s EKTO-branded environment-friendly motor fuels increased by 20% in 2014 to 4.5 mln tonnes and the share of EKTO fuels in total retail sales increased from 41% in 2013 to 47% in 2014. Introduction of European standards The Company is also increasing production of high-octane gasolines (AI-95 premium and above) in compliance with European environmental standards in response to growing demand and gradual changeover to new environmental standards for motor fuels. Tax Environment in Russia Company refineries have up-to-date conversion and enrichment facilities and produce a wide range of high-quality petroleum products. LUKOIL’s Russian refineries are ahead of the national average by quality of their facilities and the level of their performance indicators, and the Group’s European refineries match the standards of competitors. Crude oil refining by the Group rose by 0.6% in 20102014 and refining volumes in 2014 were 66.57 mln tonnes (including LUKOIL’s share of refining at Zeeland). Refining and marketing When LUKOIL was created, it included only two refineries – the Perm and Volgograd facilities – with total annual crude oil capacity of about 24 mln tonnes. Today, the Group owns 4 large refineries and 2 minirefineries in Russia, as well as plants abroad (in Bulgaria, Romania and the ISAB complex in Italy) and a stake in a refinery in the Netherlands. LUKOIL now has total annual refining capacity for 77.7 mln tonnes of crude oil. Modernization Lubricants Installation of a residue processing complex at the Perm Refinery, catalytic cracking at the Nizhny Novgorod Refinery, a complex for deep conversion of vacuum gas oil at the Volgograd Refinery and of a heavy residue conversion complex at Burgas will significantly boost the Group’s financial results in the refining segment. All LUKOIL refineries in Russia switched to production of Euro-5 compliant automotive gasoline as early as 2012. Production and sale of lubricants represents a distinct segment within LUKOIL’s business. Lubricants are produced at LUKOIL refineries in Perm, Volgograd and Nizhny Novgorod. The Company also blends lubricants from ready-made components (produced in-house and bought from third parties) at facilities in Russia, Finland, Romania, Turkey and Austria. Lubricant production volumes at Group facilities in 2014 were 1.1 mln tonnes. Reference Information LUKOIL is constantly modernizing its refining capacities, reacting quickly to main market trends. The Company uses the latest technologies in modernization of its refineries in order to improve the quality of production and to reduce environmental impact. The Company is rapidly introducing European quality standards for engine oils at all its refineries. This offers significant competitive advantages as well as a price premium, reflecting the environmental and functional qualities of Company products. The development of a product range that meets the latest requirements is crucial for the success of LUKOIL’s lubricant business. In the last 5 years, the Company’s lubricant range has expanded from 230 to 336 products, including the development and production launch of 37 new products in 2014. LUKOIL obtained 47 approvals in 2014 for engine, transmission and industrial lubricants from Russian and foreign manufacturers, including MAN, Mercedes, Porsche, Renault, Cummins and Danieli. Fact Book 2014 37 An agreement was signed in 2014 for the supply of LUKOIL’s INTEGO branded lubricants to the Russian steel maker MMK, a three-year contract was signed with the ferrous-metals giant, Norilsk Nickel, and an agreement was reached for the supply of high-performance LUKOIL lubricants to SUEK, which is one of the world’s largest coal mining companies and the largest producer of coal in Russia. Chusovoy Metallurgy Works, Europe’s largest manufacturer of automotive springs (supplier to the Russian vehicle builders, KAMAZ, URAL Automotive, UAZ and NEFAZ) will also use LUKOIL lubricants. The Company is also developing rapidly as a supplier of lubricants for first-fill of vehicles at assembly plants. The LUKOIL plant in Vienna (Austria) has been certified compliant with the VDA 6.3 standard maintained by German automakers. Deliveries have begun of LUKOIL ATF transmission oil as first-fill for automatic transmissions manufactured by Voith Turbo for DIWA buses. LUKOIL pursued development of its marine lubricant business in 2014. At the world-leading SMM Exhibition in Hamburg the Company presented a new line of biodegradable synthetic oils that meet the latest and strictest quality and safety standards as well as the innovative iCOlube lubrication system. After a year of successful operation by 7 vessels of Carnival Group (P&O Cruises), including the world passenger fleet flagship, Queen Mary II, 8 more Carnival cruise ships are to be supplied with LUKOIL NAVIGO oils and the Company has won first-fill rights for the Carnival’s new flagship, the Britannia. A one-year contract has been signed with Oman Shipping Company for the supply of marine lubricants to the fleet of the Oman state shipping company (43 vessels with deadweight of 300-400 th. tonnes each). Lubricant deliveries began in December for 130 heavy-tonnage vessels of Mediterranean Shipping Company, including the world’s 20 largest container ships, which are now being built in China and South Korea. VOLGOGRAD REGION Volgograd Volgodonsk to Tikhoretsk LUKOIL-Volgogradneftepererabotka • • • • • • • • The Refinery produces fuels and lubricants Located in southern Russia Refines a blend of light West-Siberian and Lower-Volga crudes Crude oil is supplied to the Refinery via the Samara–Tikhoretsk pipeline Petroleum products are shipped by rail, road and river transport Capacity – 11.3 mln tonnes per year Nelson index – 6.1 Main conversion process – coking (2 units with capacity of 24.0 th. barrels per day) Gases Gas fractionation Naphta Reforming Naphta Isomerization Liquified hydrocarbon gases Gasoline component Gasoline component Diesel fuel Gas oil Gas oil hydrotreating ATMOSPHERIC AND VACUUM DISTILLATION Kerosene Vacuum gas oil Fuel oil Coke Coke calcination Calcinated coke Coking Vacuum residue Refining volumes at Russian refineries were almost unchanged in 2014 at 45.3 mln tonnes. Vacuum gas oil Capital expenditures at Russian refineries totaled $1,691 mln in 2014, up from $1,393 mln in 2013. The growth was due to further work on deep processing of vacuum gas oil at the Volgograd Refinery and the construction of a heavy residue processing complex and a generating block at the Perm Refinery. from Samara Volgograd Refinery Russian refineries The share of high-octane gasoline in total output of gasoline at Group refineries in Russia (not including mini-refineries) increased to 100% in 2014. Refining depth is steadily increasing as modernization of the Group’s refineries progresses and reached 77.1% in 2014 (up from 75.7% in 2013) thanks to the modernization of the Volgograd Refinery (inclusion of lubricant production residues, which were previously used in fuel oil, in vacuum gas oil) and of the Ukhta Refinery (launch of the tar visbreaking unit reduced output of fuel oil and increased the production of diesel and vacuum gas oil). 38 Volgograd Refinery Bitumen blowing Productionбитума Производство of lubricating oils Gasoline component production Vacuum residue conversion Distillates upgrading Gas processing Bitumen Lubricating oils Vacuum gas oil conversion History of the Refinery The Volgograd Refinery was commissioned in 1957 and became a part of LUKOIL Group in 1991. In 1997–1998 the Refinery commissioned automatic equipment for blending of gasolines and a rail trestle for crude oil discharge. In 1998–2001 the Refinery launched equipment for hydrotreatment of diesel fuel, naphtha stabilization and fractioning of saturated hydrocarbon gases. In 2004–2006 the first stage of a coke calcination facility was completed and a catalytic reforming unit was installed. In 2007 the Refinery obtained an isomerization unit with annual capacity of 380,000 tonnes. In 2008 the vacuum block on distillation unit No6 was re-commissioned after an upgrade and an automated gasoline blending station was brought into operation. New facilities in 2009 included a unit for production of inert gas was and a steam recuperation unit at the oil loading rack. EKTO diesel fuel production was started in the same year. In 2010 a short-cycle Perm Refinery from Kholmogory PERM REGION Krasnokamsk A second line of the coke calcination unit was launched in 2013, increasing annual calcination capacity to 280 th. tonnes. A line for packaging of lubricants into 216.5-liter barrels was installed as well as an automated warehouse line for packaging of lubricants into 1-, 4- and 5-liter cans. Perm Refinery LUKOIL on the world map absorption unit to produce concentrated hydrogen was brought into operation and the diesel hydrotreatment unit was modernized. In 2011 a new delayed coking unit with 1 mln tonnes capacity was commissioned. In 2012 a diesel hydrotreatment unit with annual capacity of 3.0 mln tonnes was commissioned. Kama reservoir Perm to Polotsk from Surgut to Klin LUKOIL-Permnefteorgsintez • The Refinery produces fuels, lubricants and petrochemicals • Located 9 km from the city of Perm • Refines a blend of crudes from the northern part of Perm Territory and from Western Siberia • Crude oil is supplied to the Refinery via the Surgut–Polotsk pipeline and the Kholmogory–Klin pipeline • Petroleum products are shipped by rail, road, and river transport, and also via the Perm Andreyevka–Ufa product pipeline • Capacity – 13.1 mln tonnes per year • Nelson index – 8.1 • Main conversion processes are hydrocracking (T-Star, 65.2 th. barrels per day), catalytic cracking (9.3 th. barrels per day) and coking (18.9 th. barrels per day) Quality of products • Since mid-2008 the Refinery has been producing diesel fuel with sulfur content below 50 ppm • Since 2008 the Refinery has been producing engine gasolines that meet Euro-3 standards • Since 2012 all engine gasolines produced at the Volgograd Refinery meet Euro-5 standards • The Refinery produces about 500 th. tonnes per year of mineral, semi-synthetic and synthetic lubricants to Russian and international (API) standards Isomerization Gasoline component Platforming process for aromatics production Extraction Vacuum gas oil Vacuum gas oil Catalytic cracking С7+ Raffinate Benzene Toluene Solvent Mixed gas Gasoline component Gas oil Hydrocracking Diesel fuel Vacuum gas oil Production of lubricating oils Lubricating oils Gasoline component production Distillates upgrading Vacuum gas oil conversion Vacuum residue conversion Fuel oil Gas oil Gas oil hydrotreating Vacuum residue Fat gas from crude distillation and coke units NGL Associated petroleum gas Bitumen blowing Production of lubricating oils Gas processing Diesel fuel Kerosene Light gas oil Gasoline Coke Bitumen Lubricating oils Liquified hydrocarbon gases Stable gas naptha Stripped gas Reference Information Analyst Databook, p. 41 Gasoline component Coking Current modernization • Construction of a new crude oil distillation unit with annual capacity of 6 mln tonnes in 2015 • Work to expand primary refining to 14.5 mln tonnes per year by 2016 • Construction of a deep refining complex for vacuum gas oil in 2016 Reforming Tax Environment in Russia ATMOSPHERIC AND VACUUM DISTILLATION Naphta Refining and marketing Primary oil refining, mln tonnes Exploration and production In 2014, the company Tecnicas Reunidas (Spain) carried out an EPC contract for the delivery and installation of main hydrocracking and hydrogen production equipment to create a new complex for deep processing of vacuum gas oil. A contract has also been made for the construction and installation of other facilities as part of this deep processing project. The new complex, which includes a vacuum gas oil hydrocracker with 3.5 mln tonnes annual capacity as well as units for hydrogen and sulfur production, is scheduled to launch in 2016. Its effect will be to greatly increase outputs of diesel fuel complying with Euro-5. History of the Refinery The Perm Refinery was brought into operation in 1958 and became a part of LUKOIL Group in 1991. Large-scale reconstruction was carried out in 1993–1998, including extensive re-building of coking equipment, installation of a vacuum distillation unit, modern lubricant production, and creation of a system for protecting the environment. In 1999 the Refinery launched new equipment for utilization of hydrogen sulfide and production of sulfuric acid. In 2004-2005 the Refinery launched a deep oil refining complex and completed reconstruction of the vacuum block on distillation unit No4. 1 The Perm Refinery includes gas processing assets of the Perm Gas-processing Plant following merger of the two companies in November 2014. Fact Book 2014 39 An assembly for introduction of diesel fuel additives was installed on the hydro-dearomatization unit. In 2007 an isomerization unit with annual production capacity of 450 th. tonnes was launched and annual refining capacity at the Refinery was increased to 12.4 mln tonnes thanks to overhaul of the distillation units. In 2008 the Refinery’s annual capacity increased to 12.6 mln tonnes thanks to modernization of the atmospheric distillation block on distillation unit No4, which gave an increase of annual capacity by 125 th. tonnes. In 2011 capacity of the delayed coking unit was increased to 1 mln tonnes per year. In 2012 a modern microprocessor-based distributed control system (DCS) was installed on the hydrocracking unit, hydrogen generation unit, raw material preparation aggregate, and the solvent deasphalting and dewaxing units. Current modernization • Construction of a deep conversion complex • Reconstruction of the diesel hydrotreatment unit, and of hydrodearomatization equipment on the hydrocracking unit Analyst Databook, p. 42 Nizhny Novgorod Refinery NIZHNY NOVGOROD Nizhny REGION from Surgut Novgorod Nizhny Novgorod Refinery Cheboksary Kstovo Modernization of the 24/7 diesel hydrotreatment unit was completed in 2013 with increase of annual capacity by 0.3 mln tonnes of Euro-5 diesel. Construction and installation work continued in 2014 in the project for construction of an oil residue processing complex, including installation of a delayed coker with annual capacity of 2.1 mln tonnes, as well as a diesel hydrotreatment unit and hydrogen production unit. An air compression station was commissioned during the year as part of this work. The new processing complex will make it possible to end production of fuel oil and to increase light product yield while observing current requirements for industrial safety and environmental protection. Technical refit of the vacuum block on distillation unit-4 was completed in 2014. to Polotsk LUKOIL-Nizhegorodnefteorgsintez • • • • • • • • Technical furnaces at the Refinery are being modernized to increase operation efficiency and reduce emissions. Primary oil refining, mln tonnes Quality of products • Since 2004 the Refinery has produced diesel fuel with sulfur content below 50 and 10 ppm (Euro-4 and Euro-5) • Since 2008 the Refinery produced only Euro-3 gasoline • Since 2012 the Refinery has produced only Euro-5 gasoline • The Refinery produces mineral, semisynthetic and synthetic lubricants to Russian and international standards (API) • The Refinery has been certified compliant with the ISO 9001:2000 quality standard 40 The Refinery produces fuels and lubricants Located in the town of Kstovo in Nizhny Novgorod Region Refines a blend of West Siberian and Tatarstan crude oil Crude oil is supplied to the Refinery via the Almetyevsk–Nizhny Novgorod and Surgut–Polotsk pipelines Petroleum products are shipped by rail, road and river transport and by pipeline Capacity – 17.0 mln tonnes per year Nelson index – 6.4 Main conversion processes are catalytic cracking (41.0 th. barrels per day) and visbreaking (42.2 th. barrels per day) Gas ATMOSPHERIC AND VACUUM DISTILLATION A new process for extraction of diesel fraction as a separate product has been developed and implemented at the Refinery. from Almetyevsk Naphta Naphta Gas oil Vacuum gas oil Absorbing gas fractionation Isomerization Reforming Liquified hydrocarbon gases Butane Gasoline component Gasoline component Gas oil hydrotreating Kerosene Diesel fuel Vacuum gas oil hydrotreating Diesel fuel Vacuum gas oil Production of Lubricanting oils Lubricants Production of Bitumen Bitumen Visbreaking Fuel oil Fuel oil Vacuum residue Catalytic cracking Gasoline component Gasoline component Fuel oil component Propylene Gasoline component production Vacuum gas oil Vacuum residue Butane-butylene fraction Alkylation Distillates upgrading Vacuum gas oil conversion Vacuum residue conversion Gas processing History of the Refinery The Perm Refinery was brought into operation in 1958 and became a part of LUKOIL Group in 2001. In 2002-2003 distillation unit-5 and a lubricants hydrotreatment unit were rebuilt, and technology was installed for the production of highly-purified paraffins for the food industry. The modernization increased output and export of paraffins. • Since 2004 the Refinery produced diesel fuel with sulfur content below 50 ppm (Euro-4) • Since 2006 the Refinery produced Euro-3 gasolines and Euro-5 diesel fuel • Since 2011 the Refinery has produced Euro-5 gasolines • The Refinery has been certified compliant with ISO 9001:2000 Current modernization • Construction of a second complex for catalytic cracking of vacuum gas oil in 2015 • Construction of a vacuum block • Project studies for construction of a facility for hydrocracking of residues Exploration and production In 2008, a vacuum residue visbreaking unit with annual capacity of 2.4 mln tonnes was commissioned. The unit increased margins from Refinery operations by reducing output of heating oil (by 930 th. tonnes per year) and increasing volumes of vacuum gas oil (by 860 th. tonnes per year). In 2009 the Refinery began production of the high-performance EKTO-98 automotive gasoline. In 2010 a new complex for catalytic cracking of vacuum gas oil was brought into operation, which increased annual output of high-octane gasoline and diesel fuel by 1.4 mln tonnes and 400 th. tonnes, respectively. Light product yield was increased by 12%. The unit for diesel hydrotreatment was modernized in the same year. In 2011 a hydrogen fluoride alkylation unit was brought into operation. Reconstruction work on distillation unit-5 was completed in 2012 and a modern distributed control system using microprocessors was installed on distillation unit-1. Quality of products LUKOIL on the world map In 2004 the Refinery installed a catalytic reforming unit with annual capacity of 1 mln tonnes. In 2006 an isomerization unit with 440 th. tonnes annual capacity was commissioned, enabling the Refinery to produce automotive gasolines to Euro-3 standards, and modernization of distillation unit-6 was completed, increasing its capacity to 9 mln tonnes. The hydrotreatment unit was also rebuilt, enabling production of diesel fuel to Euro-5 standards. Analyst Databook, p. 43 Ukhta Refinery Ukhta Production of low viscosity marine fuel began in 2013. Storage capacity for oil and petroleum products was expanded, enabling creation of an oil reserve and optimization of fuel oil logistics. An improved control system was installed on the catalytic reforming and isomerization unit. Nizhny Odes Refining and marketing Ukhta Refinery from Usa KOMI REPUBLIC Troitsko-Pechorsk LUKOIL-UNP Main equipment was supplied in 2014 for the construction of a second catalytic cracking complex and principal infrastructure for the complex was put in place. Critical equipment for vacuum block-2 was delivered. The Refinery produces fuels Located in the central part of the Komi Republic Refines a blend of crudes from oil fields in the Komi Republic Crude is supplied to the Refinery via the Usa–Ukhta pipeline Petroleum products are shipped from the Refinery by rail and road Capacity1 – 4.0 mln tonnes per year Nelson index – 3.8 Main conversion process is visbreaking (14.1 th. barrels per day) Naptha Primary oil refining, mln tonnes Naptha Reforming Gas oil Hydrodewaxing Gasoline component Gasoline component Diesel fuel Kerosene Vacuum gas oil Vacuum residue Bitumen blowing Vacuum residue visbreaking Reference Information ATMOSPHERIC AND VACUUM DISTILLATION Isomerization Tax Environment in Russia Long-term plans include the construction of a complex for hydrocracking of residues, including capacities for hydrocracking, diesel hydrotreatment, and production of hydrogen and sulphur. Implementation of the project will substantially increase light oil yield and minimize production of dark products, including changeover to outputs of low-sulfur fuel oil. • • • • • • • • Bitumen Fuel oil Gasoline component Gasoline component production Distillates upgrading Vacuum residue conversion 1 Not including distillation capacity (vacuum unit). Fact Book 2014 41 History of the Refinery Mini-Refinery in Uray The Refinery was brought into operation in 1934 and became a part of LUKOIL Group in 1999. Distillation unit-1 was rebuilt in 2001–2003, when a unit for hydrodeparaffinization of diesel fuel was also commissioned. In 2004 a trestle for crude oil discharge and lading of dark petroleum products was put into operation. The first stage of reconstruction of the catalytic reforming unit was also completed at that time, improving its performance and increasing annual capacity by 35 th. tonnes. In 2005 a block was installed to increase hydrogen concentration in the hydrodeparaffinization unit with annual capacity of 250 th. tonnes of Arctic fuel. In 2006 work was completed on the second stage of a loading facility for oil and petroleum products with annual capacity of 4 mln tonnes. Re-equipment of the catalytic reforming unit was also completed, increasing its annual capacity from 300 to 380 th. tonnes. In 2007 the Refinery commissioned a vacuum residue visbreaking unit with 800 th. tonnes annual capacity, increasing outputs of vacuum gas oil. In 2009 construction work was completed on an isomerization block with planned annual input capacity of 120 th. tonnes. Refitting of the reactor block of the GDS-850 diesel hydrotreater was completed in 2012. Uray Irtysh Mini-refinery in Uray KHANTY-MANSI AUTONOMOUS DISTRICT Tobolsk Urayneftegaz • • • • • The Refinery produces fuels Located in Uray Refines a blend of local crudes Capacity – 100 th. tonnes per year Brought into operation by LUKOIL Group in 1995 Gasoline component Catalytic reforming Naphta Diesel fuel ATMOSPHERIC DISTILLATION Fuel oil (reterned to oil) The atmospheric-vacuum distillation unit was relaunched after reconstruction in 2013, and capacity of the vacuum block was increased to 2 mln tonnes per year. Construction of an aggregate for offtake of gas condensate was also completed. Modernization work continued in 2014 to make Refinery installations compliant with current standards and regulations. Fuel oil Bitumen Bitumen blowing Gasoline component production Vacuum residue conversion Mini-Refinery in Kogalym Plans for the Refinery include construction of a gas fractionation plant, a unit for sweetening of kerosene fraction and a block for separation of isopentanes. Noyabrsk KHANTY-MANSI AUTONOMOUS DISTRICT Mini-refinery in Kogalym Kogalym Primary oil refining, mln tonnes Nefteyugansk Surgut Ob Megion Nizhnevartovsk Kogalymneftegaz Quality of products • In 2003 the Refinery transferred to production of winter and Arctic brands of diesel fuel • Since 2005 the Refinery has produced diesel fuel with sulfur content below 50 and below 10 ppm • Since 2009 the Refinery has produced Euro-3 and Euro-4 gasoline • In 2012 the Refinery started production of Euro-5 gasoline Analyst Databook, p. 44 • • • • • The Refinery produces fuels Located in Kogalym Refines a blend of local crudes Capacity – 350 th. tonnes per year Brought into operation by LUKOIL Group in 1997 Catalytic Reforming Diesel fuel ATMOSPHERIC AND VACUUM DISTILLATION NGL NGL hydrotreatment Jet fuel Fuel oil (reterned to oil) Vacuum residue Bitumen blowing Gasoline component production Distillates upgrading Analyst Databook, p. 45 42 Gasoline Bitumen Vacuum residue conversion Refining volumes at LUKOIL Group’s foreign refineries increased slightly in 2014 (by 0.9%) to 21.3 mln tonnes. Decline of product output at the Zeeland Refinery by 20.3% due to an overhaul in the second quarter was compensated by growth of volumes at ISAB. Capital expenditures at Group refineries abroad were $627 mln in 2014 compared with $791 mln in 2013. The main investment project outside Russia was at the Burgas Refinery (Bulgaria) where work was completed in 2014 on the construction and installation of a gaseous sulfur unit as part of the project to create facilities for refining of heavy residues. Exploration and production Irretrievable losses during refining in 2014 at the Company’s own refineries outside Russia (excluding ISAB and Zeeland) were 0.76%. Refining depth rose to 87.4% thanks to improvement of the structure of outputs from processing units at the Ploiesti Refinery (Romania). Production of marketable fuel was terminated and there was a corresponding increase in production of motor fuels. The light product yield in 2014 was 72.2%. In 2007 a 25 megawatt power supply unit was commissioned. In 2009 the Refinery completed upgrading of units for hydrotreatment of diesel fuel, catalytic cracking, hydrotreatment of gasoline produced by catalytic cracking, and production of MTBE and TAME, as well as a vacuum block for distillation unit-1. Construction of a hydrogen unit was also completed, which made the Refinery capable of producing Euro-5 fuels. In 2010, 2 new coke drums were installed on the delayed coking unit. In 2011 the Refinery began production of propylene with sulfur content below 5 ppm. Reconstruction of the amine unit was completed in 2012, and an enhanced control system was installed on distillation unit-3, increasing the yield of marketable products. LUKOIL on the world map Foreign refineries Projects completed in 2013 included raising levels of C3+ recovery from catalytic cracking dry gas and modernization of purification units in 2013. An overhaul of the Refinery was also carried out with reconstruction of the catalytic cracking unit and replacement of the catalyst system on the diesel hydrotreater, which enabled changeover to a system of production without fuel oil, significantly increasing the depth of processing and light oil product yield. Further work was carried out in 2014 in accordance with the roadmap for maximizing the economic efficiency of Refinery operations. Ploiesti Refinery Ploiesti Refinery Bucharest e b Danu Constanta BULGARIA Petrotel-LUKOIL, Romania Naptha Gasoline component production Reforming Gasoline component Distillates upgrading Gasoline hydrotreating Gasoline component Isomerization Naptha Vacuum gas oil Liquified hydrocarbon gases Gasoline component Gas fractionation Gasoline Catalytic cracking Fuel oil Diesel fuel Propylene Vacuum gas oil conversion Vacuum residue conversion Gas processing Fraction C4 Ether production Gas oil Gasoline component Gas oil hydrotreating Diesel fuel Coking Coke Diesel fuel Vacuum residue Tax Environment in Russia • The Refinery produces fuels • Located in Ploiesti (central Romania), 55 km from Bucharest • Refines Urals crude (Russian export blend) and oil from fields of Romania • Crude oil is supplied to the Refinery by pipeline from the Black Sea port of Constanta. Romanian oil is also supplied by rail • Petroleum products are shipped by rail and road • Capacity – 2.4 mln tonnes per year • Nelson index – 10.0 (the highest indicator at any LUKOIL Group refinery) • Main conversion processes are catalytic cracking (18.5 th. barrels per day) and coking (10.5 th. barrels per day) ATMOSPHERIC AND VACUUM DISTILLATION ROMANIA Refining and marketing Gas Ploiesti Primary oil refining, mln tonnes Quality of products The Refinery was opened in 1904 and became a part of LUKOIL Group in 1999. In 2001 the Refinery started production of AI-98 high-octane gasoline and low-sulfur diesel fuel (sulfur content below 0.035%). In the same year the Refinery suspended operations in order to carry out major reconstruction. The work included modernization of facilities for primary refining, hydrotreatment, reforming, coking, catalytic cracking, gas fractionation and isomerization as well as construction of facilities for hydrotreatment of gasoline, catalytic cracking and production of hydrogen. The Refinery was relaunched in 2004. In 2006, a unit for production of MTBE/TAME additives was installed. • Since 2009 all gasoline and diesel fuel produced at the Refinery complies with Euro-5 standards Reference Information History of the Refinery Current modernization • Construction of a treatment unit for flue gas from fluid catalytic cracking (FCC) Analyst Databook, p. 46 Fact Book 2014 43 Burgas Refinery ROMANIA ude Dan Varna BULGARIA Burgas Refinery Black sea Burgas Projects were completed in 2013 to bring metering equipment into compliance with Bulgaria’s tax legislation. LUKOIL Neftochim Burgas • The Refinery produces fuels and petrochemicals • Located on the Black Sea coast, 15 km from the city of Burgas • Refines various crude oils (including Russian export blends) and fuel oil • Oil is supplied to the Refinery by pipeline from an oil terminal at the port of Rosenets • Petroleum products are shipped by rail, road and sea transport, and also via a petroleum product pipeline to central regions of Bulgaria • Capacity – 9.8 mln tonnes per year • Nelson index – 8.9 • The main conversion processes at the refinery are catalytic cracking (37.1 th. barrels per day) and visbreaking (26.4 th. barrels per day) Absorbing gas fractionation Propane-butane Propanebutane Naptha Absorbing gas fractionation Reforming Liquefied hydrocarbon gases Isomerization n-butane N-butane Vacuum gas oil Vacuum residue Vacuum residue 44 Vacuum gas oil hydrotreating Isobutane Alkylation Gasoline component Butene Kerosene Gas oil hydrotreating Construction of the heavy residue processing complex should be completed in 2015. The aim is to increase conversion of oil inputs to the refinery, to cease production of high-sulfur heating oils, and to increase production of Euro-5 diesel fuels. The main facility in the new complex will be an H-Oil tar hydrocracker with annual capacity of 2.5 mln tonnes. Hydrocarbon gases Butene Gas oil Construction and assembly work on a gaseous sulfur (GS-4) unit was completed in 2014 as part of the new complex for processing of heavy residues (CMP), a natural gas pipeline was commissioned, an exhaust heat boiler was installed on the catalytic cracking unit, and a purification system was fitted for flue gas from waste incinerators. Primary oil refining, mln tonnes ATMOSPHERIC AND VACUUM DISTILLATION Gases In 2006-2007 work was carried out to reduce emissions, and construction of a unit for isomerization of n-butane with 50 th. tonnes annual capacity was completed. In 2009 a new unit for sulfuric acid alkylation with 300 th. tonnes annual capacity was put into operation, and construction of a diesel fuel hydrotreatment unit was completed. In 2010 a diesel hydrotreatment unit and FCC naphtha hydrotreatment unit were commissioned, as well as a sulfuric acid regeneration facility. In 2011 work was completed to optimize the system for loading of boiler fuel at the Rosenets oil terminal. Diesel fuel Diesel fuel VGO Bitumen blowing Bitumen Visbreaking Fuel oil Gasoline component Catalytic cracking Gasoline component Ether production Gasoline Hydrotreating Gasoline component Gasoline component Gasoline component Diesel fuel Fuel oil Propylene Gasoline component production Vacuum gas oil conversion Distillates upgrading Vacuum residue conversion Production of polypropylene Polypropylene Gas processing Quality of products • In 2003 gasoline production was fully upgraded to high-octane, unleaded products and production of clean diesel fuel with sulfur content below 0.035% was increased • Since 2009 the Refinery has produced automotive gasolines and diesel in compliance with Euro-5 standards. All of the fuel is marketed in EU countries History of the Refinery Current modernization The Refinery was brought into operation in 1964 and became a part of LUKOIL Group in 1999. In 2001-2002 the Refinery began production of light high-octane gasolines and launched 5 new products to European standards, including products meeting EN-228 and EN-590 standards. In 2004 the catalytic reforming unit was rebuilt increasing its annual capacity to 600 th. tonnes and the catalytic cracking unit was rebuilt. In 2005 the regenerator of the catalytic cracking unit was rebuilt and a system was put in place for altering fuel inputs to the power and heat generating station depending on market price trends for boiler fuel and gas. Construction of a unit for production of gaseous sulfur (30 th. tonnes annual capacity) was completed in the same year. • • • • Commissioning of a complex for refining of heavy residues Commissioning of a unit for the production of gaseous sulfur Modernization of logistics infrastructure at the Rosenets terminal Modernization of reservoirs and the sea section at the Rosenets oil terminal Analyst Databook, p. 47 IT Rome AL Y ISAB Complex TUNISIA GREECE Mediterranean sea i.Sicily LUKOIL on the world map In 2013, LUKOIL’s interest in ISAB was further increased from 80% to 100%. The Group’s share in refining at ISAB was then 8.23 mln tonnes. ISAB Refinery Complex In 2014 an integrated gasification combined cycle (IGCC) unit was acquired and work was carried out to improve efficiency (including energy efficiency). Primary oil refining1, mln tonnes ISAB Refinery Complex, Italy Kerosene Merox Мерокс Mild hydrocracking Propylene Benzene ATMOSPHERIC AND VACUUM DISTILLATION Gas oil Gasoline Gas oil hydrotreating Мерокс Gas oil Gasoline Vacuum residue Gas Visbreaking Isomerization Gasoline component Reforming Gasoline component Visbreaking residue Gas fractionation Gasoline component Cumene Gas oil hydrotreating Mild hydrocracking • Conversion of one line of the IGCC to use of natural gas in 2015 Hydrocracking residue Deasphaltizate Analyst Databook, p. 48 Diesel fuel Rotterdam Southern Refinery Zeeland Refinery Gas oil Thermal cracking Vlissingen Fuel oil Deasphaltizing Liquified hydrocarbon gases Amsterdam Zeeland Refinery BELGIUM Asphalt to IGCC Gasoline component production Vacuum gas oil conversion Distillates upgrading Vacuum residue conversion Tax Environment in Russia Gasoline Vacuum gas oil Current modernization Gasoline component Cumene production Diesel fuel Gas oil Gasoline hydrotreating • The Refinery produces only Euro-5 gasolines and diesel fuel Fuel oil component Butane MTBE production Catalytic cracking VGO Northern Refinery Gas oil Quality of products Alkylation Gas oil ATMOSPHERIC DISTILLATION Group share. Refining and marketing Gasoline component Kerosene fraction Fuel oil Vacuum gas oil 1 Exploration and production • Located in the eastern part of Sicily, near the town of Priolo • Refines various types of crude oil and straight-run fuel oil • Inputs are supplied mainly from countries of the Black Sea region, North and West Africa, and the Persian Gulf • Petroleum products are shipped by road and sea transport • Capacity – 16.0 mln tonnes per year • Nelson index – 9.3 • Main conversion processes are catalytic cracking (38 th. barrels per day), hydrocracking (90 th. barrels per day), visbreaking and thermal cracking (99 th. barrels per day) Gas processing History of the Refinery In 2008 LUKOIL signed an agreement with the Italian company ERG S.p.A. to purchase a 49% interest in a joint venture for operation of the ISAB refining complex. In 2011 the Company’s interest was increased from 49% to 60%. LUKOIL’s share in refining at ISAB was 6.95 mln tonnes. In 2012 the Company’s interest in the ISAB Refining Complex was increased from 60% to 80%. Zeeland Refinery N.V. • Located in the biggest oil refining and trading hub in north-west Europe (the Amsterdam–Rotterdam–Antwerp region, often referred to as ‘ARA’) • About 90% of Refinery outputs are marketed in Belgium, the Netherlands, Germany and Switzerland • Petroleum products are shipped by road and sea transport • The Refinery has access via its own pipeline to the Maasvlakte Olie Terminal, which has 4 mln tonnes capacity • The Refinery owns 54 reservoirs for storage of crude oil and petroleum products • Capacity – 3.6 mln tonnes per year 2 • Nelson index – 8.4 • The main conversion process is hydrocracking (74 th. barrels per day) 2 Reference Information The Refinery was brought into operation in 1964 (northern section) and 1975 (southern section). Large-scale modernization began in 2003 in response to growing demand for medium distillates in Western Europe. Antwerpen By Group share at the end of 2014 (45%). Fact Book 2014 45 ATMOSPHERIC AND VACUUM DISTILLATION Liquified hydrocarbon gases Gas processing Naphta Naphta Production of gasoline (100% TOTAL) Gas oil hydrotreating Diesel fuel Kerosene Hydrocracking Solvent Diesel fuel Kerosene Vacuum gas oil Gas oil Vacuum gas oil Gasoline component Gasoline component production PRODUCTION OF OIL AND GAS PURCHASES FROM THIRD-PARTY PRODUCERS PERM GPP LOKOSOVKSY GPP USINSK GPP NATURAL GAS LIQUIDS LIQUEFIED PETROLEUM GAS STABLE GAS NAPHTHA STRIPPED GAS PENTANE-ISOPENTANE FRACTION Vacuum gas oil conversion Primary refining1, mln tonnes OTHER KOROBKOVKSY GPP GAS PROCESSING GAS PRODUCT MARKETING Distillates upgrading The Zeeland Refinery (formerly the TRN Refinery) was commissioned by Total S.A. in 1973. In 1980 the company Dow acquired 20% of the Refinery. Modernization was carried out in the early 1980s and a hydrocracking unit was commissioned in 1986. Dow increased its stake in share capital to 45%. The Refinery has carried out a series of modernizations since 1990 to remain one of the most advanced facilities in Europe: units have been installed for purification of kerosene fractions and production of sulfur, and the reactor for hydrotreatment of medium distillates has been expanded to enable production of diesel fuel with sulfur content below 50 ppm. One of the most recent large modernization projects at the Refinery was reconstruction and capacity increase of the hydrocracking unit (completed in 2004). In 2009 LUKOIL signed an agreement with TOTAL S.A. for acquisition of a 45% stake in the TRN Refinery, which changed its name to the Zeeland Refinery in 2011. TIMAN-PECHORA URALS VOLGA Fuel oil History of the Refinery WESTERN SIBERIA LUKOIL Group’s gas-processing plants process associated petroleum gas (APG) and natural gas liquids extracted in Russia into marketable gas (fed into the national pipeline system of Gazprom) and liquid hydrocarbons. Gas processing ensures efficient use of associated petroleum gas by transforming it into marketable product, offering additional profit without any substantial raw material costs. In 2014, the Company’s gas processing plants processed 3,221 mcm of gas feedstocks, which is 2.9% more than in 2013. Processing of liquid hydrocarbons at the plants totaled 710 th. tonnes. LUKOIL plants produced 2,454 mcm of marketable stripped gas, 791 th. tonnes of liquefied gas, over 748 th. tonnes of natural gas liquids and 179 th. tonnes of liquid hydrocarbons (stable natural gasoline and isopentane fraction). Production of liquid hydrocarbons at Group gas-processing plants in Western Siberia, the Urals and the Volga region increased slightly in 2014 to 13.9 mln boe from 13.7 mln boe in 2013. LUKOIL gas-processing plants 1,700 629 1,460 468 600 271 Usinsk GPP 2,140 2,049 Lokosovksy GPP Perm GPP 1 Group share. Analyst Databook, p. 49 450 433 161 81 Korobkovsky GPP 4,650 3,221 1,861 710 Gas processing Refining of liquid hydrocarbons mcm per year mcm Analyst Databook, p. 50 46 Capacity Processing in 2014 th. tonnes per year th. tonnes Korobkovsky Gas-processing Plant Re-equipment work continued at the Plant in 2014, rebuilding of the air compression unit was completed. Perm Gas-processing Plant Lokosovsky Gas-processing Plant • Processes associated gas from fields in Western Siberia • Marketable products – stripped gas, NGL, stable gas naphtha, propane • Customers – Russian industrial and power generating companies (dry stripped gas), LUKOIL-Permneftegazpererabotka (NGL) and local consumers • Capacity – 2.140 bcm per year • Commissioned in 1983, became part of LUKOIL Group in 2002 In 2005 construction of storage tanks with a trestle for lading of NGL was completed. In 2006 work was completed to increase annual capacity of the Plant from 1.0 to 1.9 bcm of associated gas per year, and further work brought capacity to 2.3 bcm per year. This project included connection of the Plant to the Urengoi–Surgut– Chelyabinsk trunk gas pipeline. In 2009 two cylindrical vertical flare furnaces were brought into operation. In 2010 work was carried out on assembly of a gas discharge pipeline, as well as modernization of the flare systems and of fire and accident prevention systems. Refining and marketing • Processes associated gas from fields of LUKOIL-Perm, wet gas from the Perm Refinery and NGLs from the Lokosovsky Gas-processing Plant and the Perm Refinery • Capacity – 1,460 mcm of gas, 1.7 mln tonnes of NGLs per year • Marketable products – stripped gas, stable gas naphtha, isopentane, LPG, sodium bisulfite • Customers – Perm Refinery, Stavrolen, foreign marketing units of LUKOIL Group and local consumers • Commissioned in 1969, became part of LUKOIL Group in 1998 In November 2014 gas processing assets at the Perm Gas-processing Plant became part of the Perm Refinery. Exploration and production In 2001–2003 external energy supply was overhauled and a steam unit was launched. In 2005 an associated gas compressor and dryer unit was put into operation. In 2009 modernization work at the plant was carried out. In 2010 a long-term program of measures was designed and approved to keep the Plant in working order and ensure operating safety. LUKOIL on the world map • Processes associated gas from fields operated by RITEK and the joint venture, Volgodeminoil, as well as natural gas liquids (NGLs) • Capacity – 450 mcm per year of gas, 161 th. tonnes per year of NGLs • Products – stripped gas, stable gas naphtha and LPG • Customers – petrochemical enterprises and power generating companies (LUKOIL-Volgogradenergo), foreign marketing units of LUKOIL Group and local consumers • Commissioned in 1966 and became a part of LUKOIL Group in 1996 and processing of additional associated and natural gas volumes from fields operated by LUKOIL-Perm, transport of stripped gas through the Gazprom pipeline system began and gas supplies were put in place to the power generating block at the Perm Refinery. Plans were reviewed in 2013 for reconstruction of the Lokosovsky Gas-processing and its product storage facilities with installation of a loading rack. Usinsk Gas-processing Plant In 2008 output structure was optimized and NGL processing capacities were increased to 1,000 th. tonnes per year. In 2009 the Plant carried out various projects to help achieve the Company target of 95% utilization of associated gas. In 2013, construction of a complex for liquefied gases was completed. A number of new facilities were completed and brought into operation in 2014: a booster compressor station, the low-temperature condensation and rectification unit-2, gas fractionation unit-2 and a modernized desulfurization unit. The Plant began reception • Prepares and processes associated gas from fields operated by LUKOIL-Komi • Marketable products – dry and stripped gas, stable gas naphtha and LPG • Customers – oil production enterprises of LUKOIL Group and local consumers • Capacity – 600 mcm per year • Brought into operation in 1980, became a part of LUKOIL Group in 2000 In 2004 the plant launched a gas preparation and processing block, and a gas input station. This enabled the plant to produce LPG and stable gas naphtha. In 2010 work proceeded on construction of an associated gas compressor unit with annual capacity of 500 mcm, and on installation of a desulfurization unit with annual capacity of 100 mcm. A project for reconstruction of existing processing capacities was carried out in 2011. It included installation of a gas desulfurization and dehydration unit, a booster compressor station for sulfurous gas and reconstruction of the booster compressor station for sulfur-free gas. Work began in 2012 for reconstruction of the input compressor station and installation of a gas desulfurization unit. Fact Book 2014 Reference Information In 2010, installation work was completed on a stenching unit for propanebutane mixtures and work was carried out to identify pipeline sections in need of replacement. Project documentation was completed in 2012 for a second low-temperature condensation and rectification unit. Tax Environment in Russia В In 2003-2005 the gas fractionation unit was rebuilt to increase NGL processing capacity, and a sodium bisulfite unit was put into operation. In 2006-2007 reconstruction of the plant was carried out, increasing capacity from 550 th. tonnes to 700 th. tonnes per year of NGL. 47