1. Business strategy and tactics for the benefit of the state

Business strategy and tactics for the benefit of the state

14.06.2012

The Refinery: History and Today

Antipinsky Oil Refinery CJSC 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 1st workflow phase with the estimated capacity of 400 thousand tons per year was commissioned already in 2006 (in November). Owing to technical re-equipment its actual capacity amounted to 740 thousand tons per year in 2008.

In May 2010 the 2nd workflow phase with the capacity of 2.75 million tons per year was put into operation. Thus, due to the 2nd workflow phase commissioning the total capacity of the Oil Refinery made up 3.5 million tons per year. However, it is expected that in the course of the 2nd workflow phase modernization its capacity will reach 3.3 million tons p.a. even before the 2012 yearend what will make it possible to achieve the total capacity of oil refining at the enterprise of 4.1 million tons.

Antipinsky Oil Refinery acquired and repaired Antipino railway station in the vicinity of which the finished products sector (FPS) was built for the purpose of the transportation of light oil products (gasoline, diesel fuel) by rail.

The FPS is a detached facility connected with the main area of the refinery by means of industrial pipelines with the total length of about 2.9 km. The area of the site is 15 ha. There are two either-direction tank filling racks making it possible to load 71 rail tankers at a time (what amounts to the RZhD rate) with a relay tank terminal of 20 thousand cu. m.

The FPS commissioning has increased the total estimated oil-product loading capacity of the refinery up to 8 million tons per year (the basic capacity is 3 million tons + 5 million tons of the FPS), it also lessened the load of functioning fill/discharge racks situated on the main area of the refinery. Empty tanks of the main area of the refinery will be used as relay both, now and in the future, what will make it possible to enhance the performance reliability of processing facilities and raise the enterprise’s productivity in the course of refining oil which, in part, is delivered by railway transport. The total volume of tank farms makes up 315 thousand tons.

The leading international companies such as, inter alia, VITOL, GLENCORE, MERCURIA, LITASCO are strategic partners of Antipinsky Oil Refinery CJSC.

Over the year 2011 more than 2.6 million tons of products were transported. In addition to that, some 340 tons were produced and subsequently refined at the enterprise’s own Tarkhovskoe oilfield. Thus, the turnover amounted to 2.94 million tons and over USD 2 billion in money terms.

It should be specially stressed that no enterprise of a similar capacity has been commissioned on the territory of the Russian Federation over the past 30 years, but for Taneko Company which is also growing and developing.

Breakthrough Projects Implementation

As of today the processing depth is at the level of 60% but due to the fact that Antipinsky Oil Refinery is a successfully and sustainably developing enterprise it plans to increase the volumes and processing depth of oil. So, after the 3rd phase commissioning in 2013 the refining capacity is expected to grow up to 7.5 million tons per year.

In 2014 it is planned to produce Euro-5 diesel and in 2015 the processing depth is to increase to 94%. The processing depth will be provided by the construction and commissioning of the complex plant intended for the high level processing of fuel-oil which will consist of a fuel-oil vacuum distillation block and a deferred tar carbonization block. FosterWheeler is the licensor of the units. The vacuum gasoil obtained in the complex plant intended for the high level processing of fuel-oil is to be processed at the hydrocracking unit which will subsequently yield high quality fuels of Euro-5 standard.

The transfer to the production of Euro-5 high quality gasoline is scheduled to 2016 on account of the commissioning of the gasoline hydrotreatment, isomerization, and reforming block.

In addition to high quality motor gasoline the refinery plans to produce gas carbon which is in great demand in metallurgy, and the unit for elemental sulfur (granulate) production is also to be installed.

The amount of funds to be invested in the project between 2010 and 2015 is planned at the level of USD 2 billion. One of the steps forward on the way to the implementation of the planned strategy of the company development is 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 for Antipinsky Oil Refinery CJSC. This multi-currency agreement was signed by Gazprombank OJSC, RaiffeisenBankInternational AG, and RaiffeisenBank CJSC jointly with GlencoreInternational AG, Vitol S.A., Globex CJSC, and WestLB AG (London).

The credit with its repayment date in March 2017 consists of 3 tranches in US dollars and Russian rubles secured with the elements of pre-export and project financing.

Environment: Comprehensive Approach

Of late the issues of environmental protection and industrial safety are among those which are of top priority for both, governmental structures and oil companies, against the background of the growing volumes of oil production and refining. Noteworthy is the acute need of applying comprehensive measures at modern oil refineries for the purpose of reducing the harmful impact of the exploitation of oil refining facilities on the environment. In this connection special attention was paid to complying with high technology standards when construction of Antipinsky Oil Refinery was in progress.

The ecology department of the Refinery’s accredited chemical analytical laboratory keeps regular monitoring of the environment, surface and waste water condition. To reduce impact on the environment a number of technological solutions were developed as the Refinery was designed in order to minimize water consumption and, consequently, waste water discharge and pollutant emissions to the atmosphere, as well as to avoid contamination of the soil and ground waters with oil and oil products.

Such solutions include as follows:
- equip process furnaces with burner units which comply with the most stringent environmental requirements;
- use a sealed system within the entire process flow;
- control, computerize, and telemeter processes to prevent accidents, as well as minimize pollutant emissions to the atmosphere by strict adherence to the established technological parameters;
- provide for leak-proof filling of tanks with light oil products via gas equalizing lines with gas removal;
- use air-cooling systems for process flows;
- apply a water drainage system to avoid waste water discharge to surface waters;
- construct concrete platforms for processing equipment and oil loading racks with guard rails and ladders.

Implementation of these solutions minimizes any eventual environmental damage.

In addition to that, sewage treatment facilities are being built which will provide for the treatment of technical, storm, service and household waste waters to the required extent making it possible to use purified waste waters repeatedly, or discharge them to a fishery water body.

Wastewater treatment facilities consist of three main blocks:
1. The physical-chemical wastewater treatment block (impeller flotation using Separation Specialists equipment).
2. The biological wastewater treatment block (the membrane bioreactor of GE WaterandProcessTechnologies).
3. The wastewater post-treatment block (the process of dual filtration using FSU sorption carbon filters with subsequent UV disinfection of wastewaters as required by Sanitary Rules and Standards (SanPin) 2.1.5.980-00 “Hygienic Regulations For Surface Water Protection”).

All in all, wastewater treatment facilities occupy the area of 10.73 ha. The total area of the refinery’s territories exceeds 150 ha.

Social Policy

Social programs of the enterprise include measures aimed at the social protection of its employees, creation of healthy and safe working environment. The company’s management team takes care of quality medical service to be provided to the employees, renders assistance to them through the system of various kinds of material aid and compensations, and, what is especially important, it endeavors to improve their living conditions. Thus, by resolution of the Chairman of the Board of Directors an apartment house with 152 flats to be delivered in 2013 is being built for the enterprise’s professionals and foremost workers.

Charity is one of important areas of social policy pursued by Antipinsky Oil Refinery CJSC. Over the entire period of its existence the enterprise has determined the key areas of charity what means that assistance is rendered not through charitable organizations and foundations but directly to kindergartens, boarding schools, clubs, cultural institutions, the Tyumen regional organization of the Russian national society of the disabled. Friendly relations established between the enterprise and Orphanage No. 66, Municipal Educational Establishment, intended for orphans and children deprived of parental care prove it. The enterprise pays no less attention to the area of sports subsidizing one of junior judo clubs in Tyumen.

Sovetnik Prezidenta (The Advisor To The President) Information and Analytical Edition

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