As is known investments are made only in the development of the most promising companies. This rule is applicable to all sectors of the economy both, in Russia and all over the world. So, the very fact of the signature on the 26th of April 2012 of a multi-currency facility agreement on the extension of term and revolving credit lines to the tune of up to USD 750 million to Antipinsky Oil Refinery CJSC proves that serious stakes have been placed on this enterprise. All the more so, the list of investors includes Gazprombank OJSC, Raiffeisen Bank International AG, and RaiffeisenBank CJSC jointly with Glencore International AG, Vitol S.A., Globex CJSC, and WestLB AG (London).
Oil refineries with maximum possible processing depth producing the full range of high-quality engine fuels are constructed in several workflow phases since the construction thereof requires significant capital investments. That is, each phase implies the organization of a complete production cycle making it possible to produce oil, refine it and ship a certain range of oil products of agreed quality to consumers. This is the development mode chosen by Antipinsky Oil Refinery CJSC. This enterprise was founded in July 2004 on the territory of one of the largest oil and gas constituents of the Russian Federation, the Tyumen Region, where most of Russian oil (72%) and natural gas (91%) reserves are concentrated. The refinery has become the symbol of a new industrial sector emerging in the south of the Tyumen region. Strange as it may seem, though the neighboring districts are rich in oil and gas resources no oil refining industry was in the region. It appeared only after commissioning of the first production complex of Antipinsky Oil Refinery with the capacity of 400 thousand tons of oil per year in 2006. The first extension of the enterprise (the commissioning of the 1st Phase of Antipinsky Oil Refinery) took place in the period of 2006-2008 in order to swell the production capacity from its initial indicator to 740 thousand tons of oil products per year. In May 2010 the second phase of the enterprise (the 2nd phase of Antipinsky Oil Refinery) with the capacity of up to 2.8 million tons of oil products per year was put into operation. Nowadays the total production capacity (the 1st and 2nd phases) makes up 3.58 million tons p.a. The facilities of phase III are planned to be commissioned in 2013-2016.
ELOU-AT-3 unit with the capacity of 3.7 million tons p.a. will be put into operation at the 1st stage of workflow phase III what makes it possible to swell the capacity of the entire refinery up to 7.5 million tons p.a. A diesel hydrotreating unit with a dewaxing module will be constructed for the quality of diesel fuel to comply with Euro-5 standards and for the necessary freezing point to be ensured so that winter and arctic diesel fuels can be produced, what will entail the construction of hydrogen production units, gas amine treatment systems and sulfur production units, as well. The project is to be implemented by 2014. The initial step of the 3rd construction phase of Antipinsky Oil Refinery consisting of several stages: the growth of the refinery’s capacity up to 7.5 million tons p.a., the increase of the processing depth up to 94%, the implementation of Euro-5 standard for diesel fuel, as well as the creation and development of infrastructure. Construction of waste treatment facilities is underway. The quality of wastewater treatment complies with the most stringent European standards.
As of today Antipinsky Oil Refinery processes crude oil into technological fuel oil, bunker fuel, directly distilled gasoline, and diesel fuel in compliance with both, GOST Russian national standard and EURO-5. The processing depth amounts to 60%. The main buyers of Antipinsky Oil Refinery products are Glencore International AG and Arkham S.A. of Vitol company group. Oil and oil-product processing units form the basis of Antipinsky Oil Refinery CJSC. Off-site facilities are included in the refinery’s infrastructure in order to produce oil, ship oil products to consumers, provide the processing units with energy sources, ensure quality control over technological processes, raw materials, and finished products, provide the refinery with water, heat and electricity. There are three rail tanker loading racks with the capacity of 3 million tons per year, a road tanker loading rack, a unified automated control system integrated with the refinery’s computer network, high-speed external telephone and electronic communications channels. For the purpose of ensuring the required level of the products’ quality there is an accredited chemical analytical laboratory at the enterprise equipped with the most up-to-date technology the basis of which is formed with computerized analyzers measuring the quality of oil products and other analyzed substances and indices. Advanced quality control methods have been applied in the laboratory, such as gas chromatography, atomic absorption spectrometry, and others.
Having occupied a well-deserved place on the Russian market of oil products the enterprise maintains this high level being the subject to which not only the Urals Federal District, but also other regions pay close attention. It also focuses on HR policy which is aimed, first and foremost, at the recruitment of qualified personnel with higher and specialized secondary education, as well as at the efficient use of labor resources with due consideration of their development prospects in the current economic environment.
The management team of the enterprise is sure that sustainable business development can be achieved only by the efficient development of people, providing favorable conditions for work and creativity when an employee is happy with his/her work both, morally and materially. That is why everything necessary has been provided here so that every staffer can count on remuneration and career development depending on his/her professional and personal contribution to the company’s activity. The management team of the refinery helps to develop professional qualities of its employees, it arranges for their professional training and qualification upgrading.
Foreign investors do not take into consideration productivity only when making a decision on investing in oil producing and oil refining industries. Environmental friendliness, reliability, and safety of equipment, as well as technological-process automation are the today’s requirements imposed on such enterprises. To comply with them means to attract investments for the industry re-equipment. Antipinsky Oil Refinery is a young enterprise but it has managed to prove itself to be not only a reliable partner and oil derivative supplier, but also a guarantor of environmentally friendly production. The refinery project has its specifics from the viewpoint of technologies applied in the course of the product manufacturing. They enable one to make industrial process more efficient, environmentally safe, and the processing units more space-saving so that their servicing becomes easier. For example, the analogue of ELOUAT 2 unit functioning at the refinery occupies twice as much territory at other enterprises of the industry, and it should be taken into account that Antipinsky Oil Refinery has entirely excluded the use of recycle water in the work process.
However, the Tyumen refinery has a number of competitive advantages over Russian famous oil refining giants.
First, it is situated near an oil stream. Second, transport component impacts the cost of fuel significantly. Let us say, Antipinsky Oil Refinery doesn’t need to use railway transport for the delivery of its products to the south of the Tyumen Region, so the fuel price is formed without any transport component.
Third, it is possible to sell fuel to enterprises directly from the refinery by road tanker loading using small gasoline trucks of 5-10 tons. That is, costs are saved due to the way of supplying products in small volumes what is especially convenient for local consumers, not large agricultural organizations.
One of the main competitive advantages of the refinery is the use of low-cost power equipment which makes it possible to reduce the consumed number of energy resources for the manufacturing of one ton of products subsequently cutting down its prime cost. As far as the quality of products is concerned all of them are certified, safety data sheets are duly provided, the accredited laboratory issues quality certificates per each batch of oil products.
The construction of Antipinsky Oil Refinery was conditional, first and foremost, upon the demand of the Tyumen Region for oil products, and after the commissioning of the 2nd workflow phase it became possible for the enterprise to meet the entire region’s demands for fuel. But the expansion of the territory of business and the entrance to new sales markets is absolutely logical for any developing enterprise. As of today approximately 70% of the volume of products manufactured by the refinery are sold for export (mainly by the LITASCO company) and, accordingly, 30% of oil products are sold on the domestic market. A considerable portion of fuel is sold throughout the entire Urals Federal District, oil products are transported by railway and motor vehicles.
Furthermore, demand for the products of the refinery is growing, deliveries are made to a number of other provinces: the Altai Territory, the Irkutsk, Kemerovo, Novosibirsk regions, to Khakassia and Buryatia. Fuel oil is shipped to the North-Western region of the country.
However, the most promising area of activity of Antipinsky Oil Refinery is the production of Euro-5 standard fuel. This fuel is in demand both, abroad and in the nearby regions of Russia where temperatures are often below zero, for example, in the Khanty-Mansi and Yamal-Nenets areas. For the purpose of supplying quality fuel to these regions the following production shops will be built on the territory of the refinery: hydrogen and sulfur production shops, hydrosulfuric gas purification and diesel fuel hydroforming shops. Its production will begin in 2013. After completion of the second stage of the third phase the refining process of heavy residues of oil after vacuum distillation will be organized.
So, no wonder investors are willing to contribute considerable funds to the development of this enterprise. The reason is that Antipinsky Oil Refinery has become a perfect example of task-oriented development, thoughtful and competent management, and, as a result, considerable progress. Although this enterprise is still deemed to be a medium-sized plant it is already clear that it has great potentials and the time will come soon when Antipinsky Oil Refinery will be ranked on a par with the world’s leading oil refining giants. And if it continues to develop at the same accelerated pace quite soon this enterprise will definitely become the world’s leader in the oil refining industry.
Tochka Opory Russian Business Magazine, Lilia Zolotareva