1. Antipinsky Oil Refinery Launches Workflow Stage II

Antipinsky Oil Refinery Launches Workflow Stage II

26.05.2010

A grand opening ceremony to mark the completion of the Antipinsky Oil Refinery’s Workflow Phase II was held in Tyumen. The new production facility will enable the refinery to considerably increase product refining volumes and reduce their costs. The taxes payable to tax authorities of all levels are expected to amount to about RUB 800 million per annum.

As Dmitry Mazurov, Chairman of the Antipinsky Oil Refinery’s Board of Directors emphasized, the launching of Workflow Stage II was just another stage of a modern oil refinery project. “We have not yet built a modern, perfect refinery required for fully-fledged deep processing of oil, but we are already at the point of no return,” he said.

The refinery’s resultant capacity is seven million tons of crude oil per annum and by the end of 2010 the Antipinsky Oil Refinery will be producing over three million tons of fuel. According to its plans, about 2-2.5 million tons of the refinery’s 7 million tons resultant output will be sold in the Urals Federal District practically covering the region’s demand, and the companies already operating in the region’s market may have to make room for the refinery. Upon the completion of the second stage, the refinery will proceed with the last stage. First of all, the refinery is planning to start refining diesel oil to bring it to Euro-5 standard. It will take two and a half years. “Our products will be suitable for operation at low temperatures, as we will be producing not only winter, but also Arctic grade diesel fuel,” Dmitry Mazurov promised.

As the next stage, the company is going to master the heavy oil residues refining technology, tar after vacuum distillation will be converted into coke. The reforming will upgrade large amounts of gasoline and diesel fractions to 92 and 95 gasoline meeting Euro-5 standard. “Thus, we shall reach the refining depth of 94 percent, which exceed the requirements set by the country leaders and the benchmarks the global community is currently guided by. This stage will be completed by the end of 2014. In order to implement it, we shall have to raise over two billion dollars investment. We are counting on banks and our foreign partners for that,” Mr. Mazurov said.

The Chairman of the Antipinsky Oil Refinery’s Board of Directors thanked the bankers who believed in the project though at its initial stage six years ago there were more questions than answers, the contractors who worked continuously despite the complexity of the financing. Special thanks were extended to local officials and personally Governor Vladimir Yakushev. “He supported, helped us and personally stood up for us in difficult situations,” Dmitry Mazurov noted. For the Tyumen Region, the refinery is not only a new major taxpayer, although, as of today, the refinery has already paid in aggregate over one hundred billion US dollars in taxes from the refinery’s Workflow Phase I alone, but also a new industry in the southern part of the region. Strange as it may seem, despite the proximity of the neighboring oil- and gas-bearing regions, oil refining industry did not exist in the Tyumen Region.

“It is a historic moment for the Tyumen Region today – we have never had such enterprises here. Deep refining of raw hydrocarbons produced in Russia is one of the top priority tasks facing our economy. I am overwhelmed with joy because through our private-public partnership we managed to set up a major production facility engaged in deep refining,” Vladimir Yakushev said. He awarded the Antipinsky Oil Refinery’s CJSC employees represented by the company’s Director General Gennady Lisovichenko with the Certificate of Appreciation in recognition of their significant contribution to the development of oil refining industry in the Tyumen Region.

Alexander Beletsky, Deputy Plenipotentiary Representative of the President of Russia in the Urals Federal District, called the launching of the Antipinsky Oil Refinery’s Workflow Phase II a significant event for the region and an example of a responsible statesmanlike approach to business operations highlighting the enterprise’s high antiterrorist and fire safety standards and its environmental friendliness.

Under the Tyumen Region law, the Antipinsky Oil Refinery has been entitled to corporate property tax exemption since 2008. The company employs 540 people. To remind our readers, despite the fact that the Tyumen Region is one of the country’s largest oil producing regions, it has to bring about 1.2 million tons of light petroleum products from other regions, in particular, from Omsk Oil Refinery (550 km away from Tyumen), Ufa Oil Refinery (800 km) and Permnefteorgsyntez (600 km). The construction of a modern oil refinery using new technologies is particularly important in the context of countering mini-refineries producing substandard fuel in order to meet the region’s demand for high-quality petroleum products.

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