1. Antipinsky Oil Refinery: It Is Time To Receive Dividends

Antipinsky Oil Refinery: It Is Time To Receive Dividends

22.05.2013

This March when Sergei Sobyanin, the Mayor of Moscow, arrived in Tyumen on a visit an agreement on trade, economic, R&D, and cultural cooperation between the two regions was signed. A special clause of the agreement regulates the issues of raising investments and of innovation activity. The parties expressed their willingness to develop joint solutions in these spheres, including those on attracting foreign capital and advanced international technologies.

Investment policy in the Tyumen Region became especially active in the middle of the past decade, at that time when Sergei Sobyanin was the leader of the region. The Mayor of Moscow has pointed out that many projects which he and Vladimir Yakushev began some years ago are now nearing completion or have already been implemented. In particular, he appreciated the successful realization of the Uvat project, the construction of the petrochemical production plant by Sibur, the work performed by Antipinsky Oil Refinery.
The merit of Sergei Semyonovich Sobyanin is great in the history of the oil refinery establishment. Initially Transneft was going to build the enterprise. But the president of the country set another global task to the oil transporting company: the construction of pipelines to the Far East, though equipment for a small refinery had already been bought and delivered from the USA. Perhaps, that industrial metal would have become junk and would have been scrapped. But there are still such people in Russia who can be commercially minded and provident at the same time. And there are still such politicians here who don’t regard a short-term local perspective, but think globally, within the framework of the public interest ...
Entrepreneur Dmitry Mazurov set about the project implementation on the construction of Antipinsky Oil Refinery, then Gennady Lisovichenko joined him. Investors were found, the land was bought, the construction began. Many people treated the project skeptically. Once ideas appeared in the press to the effect that it was a reckless venture and at best they would build the first phase and burst like a bubble. But, as the saying goes, the dogs bark, but the caravan goes on. Sergei Sobyanin the then governor of the Tyumen Region was sure that the refiner would be built. At various times he stated that Antipinsky Oil Refinery was a real-life production facility which would provide the region with jobs and taxes. His visit of the construction site in the summer of 2005 became an especially decisive factor for the project implementation. Tyumenskaya Linia Information Agency is quoted as saying: “After visiting the oil refinery in Antipino the regional head gave instructions to consider a possibility of providing additional areas for the refinery’s construction. An additional land plot will require for production development, namely, for the set up of a crude oil loading terminal and a laboratory. In the governor’s opinion it is necessary to review the project documentation for this purpose.”

“Already in 2006 the first facilities of Antipinsky Oil Refinery were put into operation. Nowadays the third workflow phase of the enterprise is being built which will make it possible not only to swell production volumes, but to yield products complying with modern world quality standards. Let’s remember that over the entire history of contemporary Russia only two major oil refineries have been built in the country. One of them is Antipinsky Oil Refinery. One can be justifiably proud of it.”

Vladimir Yakushev,
Governor of the Tyumen Region

In the course of his visit Sobyanin managed to solve the most acute problem, the land-related one. Having seen the real situation (at that time racks were already assembled, first workshops were available, and in a close proximity thereto there was a vast empty area which was supposed to be the site for another enterprise) the governor gave instruction to expedite the legal registration of that land plot for the purpose of proceeding with the refinery’s construction. As a result, today we have what we have. Namely: a successfully developing enterprise which is of great importance for the region both, from the economic and social point of view.
It is still prematurely to say that the investment project on the construction of Antipinsky Oil Refinery has been implemented. As of today the building of the third phase of the enterprise is in full swing. However the first dividends have been received. Of course, it is not any financial profit (though it has really been gained) what is meant. We are speaking of the social effect. New jobs (about 1,000 people are working at the refinery now), cheap diesel without intermediaries (this problem is especially topical for the enterprises of agro-industrial complex), and considerable revenues to the regional treasury making it possible for the refinery to stably occupy the second place on tax payments in the region whish fact certainly gives confidence in the future. So, it is not by chance that both, governor Vladimir Yakushev and speaker Sergei Korepanov laid an emphasis on Antipinsky Oil Refinery when discussing economic prospects of the region at the recent briefing in the regional Duma (local parliament).

What lies ahead for Antipinsky Oil Refinery? Sure enough, it is the completion of construction of the third workflow phase. By the end of this year the first stage of construction will have already been completed. ELOU-AT-3 unit with the capacity of 3.7 million tons per year will be commissioned, it will swell the crude oil refining capacity of the enterprise up to 7.5 million tons.
Together with the unit several off-site facilities will be commissioned: the tank farm for commercial diesel fuel with the volume of 80 thousand tons, the tank farm for crude oil with the volume of 60 thousand tons It should be specially mentioned that already in early July the construction of treatment facilities complying with the most strict ecological standards will be completed.

INFORMATION
Competitive advantages of Antipinsky Oil Refinery:
• Antipinsky Oil Refinery is the only production oil refinery in the region and in the Urals Federal District.
• Antipinsky Oil Refinery is conveniently located nearby a developed logistic network: railway and motorway infrastructure.
• Antipinsky Oil Refinery is connected to oil trunk pipelines of Transneft JSC with the total capacity of 6 million tons per year taking into account the development of the enterprise including the third phase.
•The Tyumen Region is noted for its great demand for oil products. Moreover, Antipinsky Oil Refinery can sell fuel to enterprises directly from the refinery by loading it to small tank trucks of 5-30 tons. Therefore, it becomes economically advantageous due to the method of product shipment in small volumes.

Diesel fuel hydrotreating unit will be built at the 2nd stage of workflow phase III for the purpose of improving the quality of diesel fuel as required by Euro-5 standards (with the sulfur content not exceeding 10 ppm) and for the purpose of ensuring the necessary freezing temperature so that winter and arctic diesel fuels can be produced (Danish company Haldor Topsoe is the licenser of the process and the developer of the basic project). To guarantee the operation of the hydrotreating unit hydrogen and elemental sulfur production units with the granulation block will be constructed. To be completed in the IVth quarter of 2014.
The oil processing depth will reach up to 94% at the 3rd stage of workflow phase III due to the commissioning in the 4th quarter of 2015 of a combined deferred tar carbonization unit with a fuel-oil vacuum distillation block. As a consequence, the output of diesel fuel will grow up to 50% of the total refining volume. American company Foster Wheeler is the licenser of the process and the developer of the basic project. Coke which is received as a result of tar carbonization and constitutes the end product is in great demand in metallurgy.
In 2016 (the 1st and 2nd quarters) it is planned to transfer to the production of high-octane gasoline of Euro-5 standard with the octane number of no lower than 95 points under research method due to the commissioning of the gasoline reforming unit with the catalyst permanent regeneration and isomerization block. UOP is the licenser of the processes.
In 2017-2018 it is planned to build the vacuum gasoil hydrocracking unit, and the refinery’s own vacuum gasoil from the deferred carbonization unit and the vacuum block will be used as the raw material for it. In addition to that the second hydrogen production unit and off-site facilities will be built.
Many analysts forecast that in the nearest future fuel be in deficiency. Antipinsky Oil Refinery will hardly influence the overall balance of oil refining industry on Russian national scale, but at the local level this enterprise will be able to make fuel more affordable for the Tyumen Region, Yugra, and Yamal. High quality fuel is meant.
In June Mayor of Moscow and ex-governor of the Tyumen Region Sergei Sobyanin will mark his 55th birthday.
Long-term partner relationships connect Antipinsky Oil Refinery CJSC and the person whose jubilee is celebrated. In spite of the fact that Sergei Sobyanin is extremely busy in Moscow he doesn’t forget the Tyumen Region to which he pays working visits on a regular basis. One of priority tasks is establishment of reliable long-term cooperation between Moscow and the Tyumen Region in economic and scientific areas. Therefore, in the course of his business trip to Tyumen in March Sergei Semyonovich inspected the construction site of a new plant of Antipinsky Oil Refinery CJSC.
It is common knowledge that in many respects owing to decisions taken by Sergei Sobyanin when he was the regional governor now the Tyumen Region is one of the leaders judging by the level of economic and cultural development among all constituent entities of the Russian Federation. Some enterprises which form today the backbone of the Tyumen economy have been established in the south of the region. Large-scale construction activities have been started all over the Tyumen Region and the way Tyumen looks now corresponds to its status of the main city of the land of gasmen and oilmen. Due to the ability of the person marking his jubilee to establish business contacts at any level Sergei Semyonovich has laid the basis for high-quality interaction between authorities and business providing for stability of regional wellbeing nowadays, as well.
Occupying the post of the main city administrator of the country Sobyanin is still adhering to his personal efficient work-style which has become his original trademark. It means that the capital city is in good hands.

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