We will double tax payments

15.02.2013
Antipinsky Oil Refinery has drastically changed ideas about growth rates of an industrial enterprise. Over several years its output volumes have grown tenfold and the enterprise has been ranked among the five major taxpayers of the Tyumen Region.

Reference information

Construction began in 2004, and in 2006 the first work-flow phase with the capacity of 400 thousand tons p.a. was commissioned. The 2nd phase commissioning in 2010 made it possible to refine 2.75 million tons of oil products p.a. Today the enterprise is refining over 4.2 million tons of oil p.a. By the 2013 yearend the refining capacity will grow up to 7.5 million tons p.a.

Only facts

The year of foundation:

2004

The volume of investment by 2015 will amount to:

USD 2 billion

Personnel:

over 1000 people

The Tyumen Region supplied crude oil to the market for decades, but actually there were no facilities to refine it. Antipinsky Oil Refinery has become the first project of the kind in the region and the first private new oil refinery of such scale in Russia over the past 30 years. 

Chairman of the Board of Directors Dmitry Mazurov and General Director Gennady Lisovichenko have managed to raise foreign investments, solicit support of local authorities, and reach accord on connecting to Transneft pipeline system – for the first time after serious changes in this area.

Over several years its production volumes have grown 10-fold. After the third phase commissioning the oil processing depth will reach 94%. By the year 2018 the construction of the refinery will be completed in full, and the Tyumen Region will be provided with its own locally produced gasoline and diesel fuel.

Expectations and reality

Tyumen: Just six years ago after the first phase commissioning your refinery was a relatively small-scale enterprise, but today it occupies the top lines in ratings. How many jobs has Antipinsky Oil Refinery created over these years?

Gennady Lisovichenko: Some time ago Sergei Sobyanin as the regional governor supported our project, first and foremost, because a new enterprise meant additional jobs and replenishment of the budget. Today we have already created over 1000 of jobs for Tyumen residents. After the enterprise begins operating at full capacity, 2500 people will work here. Now we have already become the major taxpayers of the region and are ranked as second regarding tax payments to the region.

EVEN NOW ANTIPINSKY OIL REFINERY IS RANKED SECOND REGARDING TAX PAYMENTS TO THE REGION

Are all the refinery’s staffers residents of Tyumen?

Local residents make up 90% of the staff and only some people, specialists of rare professions, have come from other regions. We are closely cooperating with the State Oil and Gas University of Tyumen, use the potential of its graduates.

Have tax payments met expectations of regional authorities as well?

Of course, we are in fact ramping up production from year to year. So, the volume of tax payments is growing. By the 2013 yearend we will increase production capacities from 4.2 to 7.5 million tons. And tax payments will actually double, accordingly.

What does the status of one of the major regional taxpayers indicate: the scope of business or its “transparent” nature?

I think that both answers are equally true. It is, indeed, a major production event according to Russian standards. In addition to that, our business is extremely transparent due to its technological process specifics. The state may always control the volume of oil products delivered to the enterprise and leaving it. Hence it is not difficult to calculate the amounts of tax payments. Last year we refined about 3 million tons, this year we are to achieve the level of 4.2 million tons. Is it possible to conceal such volumes?

Impressive...

Today we ourselves smile when recollecting figures which just not so long ago seemed to be so impressive. The enterprise refined 400 thousand tons of oil products per year after the first phase commissioning. Today we refine 310 thousand tons per month. But not too much time passed!

Investments were first

Have any industrial enterprises of a similar scale been established in the region over the past decade?

A very serious industrial enterprise is being established in Tobolsk on the basis of a petrochemical complex: Tobolsk-Polymer polypropylene producing plant. True, such comparison is not quite exact, since there was a strong industrial base there founded in the soviet time. As for us, we had to build from scratch, from the ground up.

What is the reason in your opinion?

One of the main reasons is high cost of credit resources on the domestic market. Besides, the majority of Russian banks are simply unable to finance the project of such level. We managed to convince creditors and obtain investments, foreign investments, first and foremost, under conditions acceptable for our business. But it is a difficult task, one should think and act according to the world standards in order to fulfill it.

IN THREE YEARS 2500 PEOPLE WILL WORK AT ANTIPINSKY OIL REFINERY

Could you repeat your success today?

What would prevent us from doing so? We borrowed our first credit in 2005, when economic situation was far from simple. Creditors provided us with USD 40 million, when there was nothing on the site. Today the total amount of loans has made up USD 1 billion and in the nearest future we are to receive USD 400 million more. Whereas, the total investment volume will exceed USD 2 billion by 2015.

Relations with authorities

It is common knowledge that your project has come true to life mainly due to support provided by Sergei Sobyanin. Do you think he would be satisfied with current performance?

Sergei Semyonovich is a progressively minded man of business and he would deservedly appreciate the scope of work which has been done. By the way, Antipinsky Oil Refinery is not only jobs and tax payments, but also guaranteed supplies of gasoline and diesel fuel for the region. Our subsidiary includes 31 refueling stations. At the requests of governor Vladimir Yuakushev we subsidize regional farmers in critical situations. We have always closely cooperated with regional authorities, reached mutual understanding and solved any issues promptly. The governor understands the logic of business excellently and uses its potential for the regional development.

What tasks do you face now?

Hydrotreating units will be here in autumn already, and we will set about assembly works. In 2014 we will begin producing Euro-5 diesel. By that time diesel fuel transportation via the Transneft pipeline system will have started. This fact will make it possible to reduce railing volumes and cut transportation costs twice. Principal agreement with Transneft has already been reached. In 2015 we will deliver the first 1.5 million tons via the pipeline system.

Will it meet your demands in full?

No, that is why considerable funds (some 4.5 billion rubles) need to be invested in the infrastructure modernization, so that the pipeline would be able to accept the entire volume. But it will take for us some time to fulfill this task.

Are oil products delivered to the refinery via the pipeline system too?

Yes, they are, we have fulfilled all requirements of Transneft provided in technical specifications. In autumn our delivery-and-acceptance section passed the assessment procedure and from December 1 oil products are already delivered via the pumping station in Torgili settlement from where sulfur-bearing oil comes.

Are there any new oil refineries of such level in Russia?

Since 1980s no projects of such scale have been implemented in Russia, all the more so that an entirely private development with no governmental investments is referred to. We have managed to raise considerable investments under acceptable conditions. We were the first to receive technical specifications for connecting to the Transneft pipeline system after the entry into force of the new law. All these tasks are complex.

The further, the more

Today you are one of the key enterprises of the region. What will happen in five or ten years?

Time will tell. I think we will maintain the level of achieved results, as a minimum.

Are you happy with the annual results?

They say that a leap year is never lucky, but we have managed to work in accordance with the construction and production schedule. Most of all I was nervous about the delivery-and-acceptance section intended for increasing oil-intake capacity from 3 to 6 million tons, but everything went smoothly.

What will be a priority task in the new year?

The commissioning of the third crude distillation unit. It has been installed, equipment setting is underway now. As from December 1 we have increased refining volume by 100 thousand tons, what gladdened the hearts of our creditors.

When will Antipinsky Oil Refinery begin to work at full capacity?

In 2015 we will commission the third phase and start the construction of hydrocracking. In 2016 the facilities of fuel-oil high-level processing (deferred carbonization unit) will begin operating. In 2018 the facilities of gas oil reforming into commodity product (hydrocracking) will begin operating. After that the refinery can be considered a completely ready and finished facility

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