1. The business up to european standards

The business up to european standards

02.09.2012
  Even five years ago no oil was refined in the Tyumen Region, one of the largest oil-and-gas s of subjects the Russian Federation. Today Antipinsky Oil Refinery CJSC, the first major refining venture built from scratch on the territory of the former Soviet Union, is rapidly developing there.

In 2011 its trade turnover amounted to USD 2 billion taking into account its corporate partner. The project is unique due to a principally new approach to production: it uses the most up-to-date and environmentally friendly technologies for the processing of crude hydrocarbons, including those belonging to the refinery. It has enabled the company not only to win recognition of Russian consumers, but also to enter export markets. Now the refinery’s executives plan to develop the enterprise so that it could reach a qualitatively new level by producing Euro-5 top-grade motor fuel in the Tyumen Region.

Efficient Start
Antipinsky Oil Refinery was built on a too tight schedule. The enterprise was founded in July 2004, and already in November 2006 its first phase with the capacity of 400 thousand tons per year was commissioned. Antipinsky Oil Refinery has become the Tyumen Region’s symbol of the nascence of a new industrial sector, the transfer to a new quality level. Since there were no crude refining facilities before in that area rich in oil and gas. However, the company shareholders did not rest on laurels: already in two years the enterprise was technically reequipped, and its capacity grew almost twice, up to 740 thousand tons p.a. It accounted for about 25% - 30% of the fuel need of the Tyumen Region at that time.

In May 2010 one more significant event took place: the second phase of Antipinsky Oil Refinery with the capacity of 2.75 million tons p.a. was put into operation. This fact enabled the enterprise to rank pari passu with the largest oil refining companies of Russia. Over the year 2011 the refinery has yielded more than 2.6 million tons of products, such as technological fuel oil, bunker and diesel fuel, directly distilled gasoline. The quality of Antipinsky Oil Refinery’s products has already been appreciated not only by Russian, but also by foreign companies. The latter include such international leaders as GLENCORE, MERCURIA, and LITASCO. In 2012 Antipinsky Oil Refinery extends its presence on the oil-product market, it is expected that due to the second-phase modernization to be completed before the 2012 yearend the crude refining capacity of the enterprise will reach 4.1 million tons p.a.

However, no cost effective production is possible without environmentally friendly technologies. The issues of environmental protection and industrial safety are of top priority for Antipinsky Oil Refinery, as well. Special attention was paid to the application of high ecological standards in the course of its construction. 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. 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.

Successful Future
The level of the oil processing depth at Antipinsky Oil Refinery makes up 60%. But being a successful and steadily developing company it makes plans for both, the increase in capacity and the growth of oil processing depth up to 94%. The enterprise will be able to implement its plans due to obtaining credit resources of international banks and the refinancing of its own profit. The first step has already been made. On April 26, 2012 the company signed a multicurrency loan agreement with seven banks on the extension to Antipinsky Oil Refinery of the term and revolving credit facilities for the total amount up to USD 750 million. Gazprombank OJSC, Raiffeisen Bank International AG and ZAO Raiffeisenbank (CJSC) jointly with Glencore International AG, Vitol S.A., Globexbank CJSC, and WestLB AG (London) lent their resources to the refinery. The Credit consists of 3 tranches in USD and Russian rubles secured with a collateral in the form of pre-export and project financing components. The partners have scheduled the repayment period for March 2017 when a considerable part of the project is to be implemented.

Thus, already in 2013 the enterprise plans to commission the third phase for the refining of 3.7 tons of oil what will result in the growth of entire refinery’s capacity up to 3.7 million tons per year. In order to make diesel fuel comply with Euro-5 standard and to produce it at the refinery as both, a winter and arctic diesel fuel it is planned here to build a hydrotreating unit by December 2014. And in one more year the commissioning of a deferred carbonization unit making it possible for Antipinsky Oil Refinery to increase the oil processing depth to 94% is planned.

It will lead the enterprise to the advanced positions in the industry. The processing depth will be provided by the construction and commissioning of a complex fuel-oil high level processing unit consisting of a fuel-oil vacuum distillation block and deferred tar carbonization block. The licenser of the units is FosterWheeler. The transfer to the production of high-octane Euro-5 gasoline is scheduled to the first quarter of 2016 on account of the commissioning of the gasoline hydrotreating, isomerization, and reforming block. The construction of the vacuum gasoil hydrocracking unit will become the final stage of the project. It is expected to be completed in 2017-2018 making it possible to obtain high quality Euro-5 fuels. The volume of investments in the project for the period from 2010 to 2015 is planned at the level of USD 2 billion including both, own and borrowed funds.

The enterprise modernization will enable Antipinsky Oil Refinery not only to expand its presence on the motor fuel markets, but also to enter the market of raw materials for the iron and steel industry. It is possible that the refinery will produce coke which is in great demand with metallurgists, as well as elementary sulfur granulate.

Antipinsky Oil Refinery CJSC is already prepared for considerable expansion of production. The company has acquired and repaired Antipino Railway Station near which a finished products sector (FPS) intended for loading such light oil products as gasoline and diesel fuel to be transported by railway was built. It is connected with the production complex by industrial pipelines with the length of about 2.9 km. Two either-direction filling racks are located on the site of 15 ha making it possible to fill 71 railway tanks simultaneously, in addition to that, there is an intermediate tank farm with the volume of 20 thousand cubic meters there (the total volume of the refinery’s tank farms makes up more than 315 thousand tons).

Gennady Lisovichenko, General Director of the Antipinsky Oil Refinery: “WE PLAN TO LEAD THE ENTERPRISE TO A QUALITATIVELY NEW LEVEL BY PRODUCING TOP-GRADE EURO-5 MOTOR FUEL IN THE TYUMEN REGION”

The new FPS has increased the overall estimated capacity of the refinery as to the filling of oil products from 3 to 8 million tons per year and lessened the load on the filling racks functioning on the main site of the refinery. It will enable the enterprise to enhance the reliability of operation of processing facilities subsequently increasing the supply of crude to the refinery by railway.

Business Harmony
Cost effective production enables Antipinsky Oil Refinery not only to expand its facilities, but also to channel the company’s funds to the development of its raw-material base. The corporate partner, Tarkhovskoe LLC, holds licenses for oil exploration, prospecting, and extraction within six licensed territories (the total reserves of ABC1+C2 categories are as follows: geological reserves make up 75.1 million tons, extractable reserves - 8.45 million tons). The company has already been developing six oil fields within the said territories: Yershovoe, Sorominskoe, Severo-Sorominskoe, Severo-Tarkhovskoe, Nikolskoe, Tul-Yoganskoe. One more oil field, Zapadno-Tarkhovskoe, is still at the stage of prospecting. As a result, in 2011 the company extracted and refined some 340 thousand tons of its own oil.

Social policy is of special priority at Antipinsky Oil Refinery. The company’s management team is sure that business can develop efficiently only if favorable conditions are provided to the company employees for their work and creativity. That is why the company takes care of quality medical service, supports its staffers through the system of different kinds of benefits and compensations, and, what is especially important, it strives to improve their living conditions. Thus, by resolution of the Chairman of the Board of Directors a multi-family house with 152 flats is being built in Tyumen for the company’s professionals and foremost workers to which the refinery’s staffers will be able to move already in 2013.

The company spares no expense on charity, too. For the entire period of its existence Antipinsky Oil Refinery has developed its own approach in this area: it doesn’t use charitable organizations and foundations, but renders assistance directly to orphanages, boarding schools, clubs, cultural institutions, the Tyumen regional organization of the Russian national society of the disabled. The efficiency of such approach to social policy is proved by friendly relations established between the enterprise and Orphanage No. 66, Municipal Educational Establishment, intended for orphans and children deprived of parental care, as well as one of the Tyumen Junior Judo Clubs which is subsidized by the company on a permanent basis.

Developing its business harmoniously the young and modern company, Antipinsky Oil Refinery, has proved to be a reliable partner and oil-product supplier. The company has become a demonstrative example of targeted development, thoughtful and competent management, as well as respectful attitude to the region where it operates.

EXPERT Ural
Regional Business Magazine

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