Large-scale construction works are underway at Antipinsky Oil Refinery: the facilities of the third workflow phase are being built. Their commissioning will swell the refinery’s capacity almost twice (up to 7.5 million tons p.a.), increase the processing depth up to 94 percent, and, what is most important, will make it possible to yield oil products in conformity with Euro-5 standard. General Director of Antipinsky Oil Refinery CJSC Gennady Lisovichenko speaks about what good it will do to the region and about development trends of the enterprise.
Gennady Alekseevich, Antipinsky Oil Refinery is the only major oil refining enterprise in the Tyumen Region and, in point of fact, in the entire Urals Federal District. How did it happen that the region on the territory of which 60 percent of all Russian oil are produced had no refineries of its own until 2006?
GENNADY LISOVICHENKO: It so happened historically that the North of Tyumen, mainly Yugra, had become an oil producing province of the country since Soviet times. It is clear that it is not reasonable to refine raw hydrocarbons locally in severe climatic conditions, it is more advantageous to build high-capacity pipelines. But, as a result, the regions situated in close proximity to oil production sites found themselves somewhat aside from these streams. Oil products needed for manufacture, transport, power industry, i.e. gasoline and diesel fuel, first and foremost, had to be delivered from other entities of the Russian Federation, mainly from the Omsk Region, Bashkiria, the Perm Territory, which means the haul distance from 550 to 800 kilometers. And when in 2004 construction of the major oil refinery began in the settlement of Antipino near Tyumen it was quite logical that the project strategically important for the economy of the region was approved by both, regional and Russian federal authorities.
What is the enterprise’s capacity today?
GENNADY LISOVICHENKO: We commissioned the first phase in November 2006, its initial capacity was 400 thousand tons of refined oil per year, but already in 2008 as a result of technical modernization it achieved 740 thousand tons. In 2010 the second phase was commissioned, it has also been modernized by today and as from January 1, 2013 the overall capacity of the refinery amounts to 4.2 million tons p.a. At the end of the current year we plan to put into operation one more primary crude oil refining unit which will enable us to refine up to 7.5 million tons of crude oil per year. In the 4th quarter other most important facilities will be commissioned, including modern sewage treatment facilities the construction of which is nearing completion. Up-to-date methods applied to the treatment of industrial and rainfall as well as domestic sewage waters in five stages will enable the refinery to reuse up to 60% of effluents for technical purposes, to make the remaining 40% of water meet hygienic requirements applied to surface water protection and channel it to the Tura River. It is especially worth noting that over the past 30 years no private enterprises of similar capacity have been commissioned in Russia.
In my opinion it is not the volume of refined oil, but its depth which is of more importance. Indeed, for already several years many regions have suffered from fuel deficiency from time to time, and after transfer to European ecological standards the problem will grow: the majority of Russian oil refineries have become unable to quickly reorganize so that to produce Euro-4 and Euro-5 gasoline. What are the prospects of Antipinsky Oil Refinery in this situation?
GENNADY LISOVICHENKO: The matter is that the construction of a refinery with a maximum possible oil processing depth when producing a full range of high-quality motor fuels requires considerable capital investments. By the way, our enterprise is one of the few fully private projects in this area. All oil refineries are built in workflow phases – each of which requires the organization of a certain complete production cycle.
Diesel fuel hydrotreating unit will be built in the fourth quarter of the next year for the purpose of improving the quality of diesel fuel as required by Euro-5 standards with the sulfur content not exceeding 10 ppm (unit of measurement for concentration – editor’s note) and with low freezing temperature (so that it can be used under winter and arctic conditions). In the last quarter of 2015 a combined deferred tar carbonization unit will start operating and the oil processing depth will reach 94%. In 2016 it is planned to transfer to the production of high-octane gasoline of Euro-5 standard due to the commissioning of the gasoline reforming unit.
Even today all orders have been scheduled in advance for the forthcoming six months. In the future the enterprise will fulfill the demands of the Tyumen Region, Yugra, and the Yamal-Nenets Autonomous District for light oil products in full.
Even today the oil refinery is the second largest taxpayer in the Tyumen Region and it employs almost one thousand people. What is the social policy of the enterprise?
GENNADY LISOVICHENKO: First of all, we pay all taxes and official indexed salary without fail. Since 2007 a labor contract is in effect which provides for a number of measures of additional social assistance to personnel. We have an efficient labor collective council headed by a young energetic chairman. It is important that the refinery’s administration and the council understand each other and actively communicate on the issues of regular amendment of the labor contract provisions.
However, from time to time local mass media give information about a conflict between the administration of Antipinsky Oil Refinery and trade union chairman Ivan Statyev who states that the rights of workers are violated at the refinery. What can you say to this effect?
GENNADY LISOVICHENKO: Frankly speaking I wouldn’t like to comment on this situation. This conflict does not tell on the general atmosphere in the team because our employees are busy with their work and have no time to participate in conflicts. The refinery’s administration does not stand in opposition in its relations with the primary trade union organization. For example, member of Zashchita (Protection) Interregional Integrated Workers Trade Union Yevgeny Kibirev has been working and is still working for our enterprise, we have no claims to him and he has no disciplinary punishments.
Maksim Okopelov was subject to redundancy, according to Statyev we have dismissed him, but Okopelov is still working at the refinery. Ivan Statyev himself has presented his activities as a conflict between the trade union organization consisting of several persons and the refinery’s administration. He allegedly stands for the protection of workers, but, it seems that he acts for his personal advantage only and the working team does not support him.
All began after Ivan Statyev had been dismissed for multiple omissions to fulfill his employment duties – it is in no way connected with his public activity. He petitioned to court, the first instance reinstated him in his job, but the court of appeal recognized that his dismissal had been lawful, and all next instances confirmed such judgment. In my opinion it had to be finished here, but Statyev filed several claims against the refinery. And even against his former colleagues. He demanded financial compensation for the moral damage inflicted on him, for his personal data disclosure, in order to protect his honor, dignity, and business reputation, for delay of releasing his employment record card – generally, for all possible reasons. He lost all lawsuits in the first and second instances, but since he had left the refinery he was constantly writing complaints to law-enforcement authorities, prosecutor’s office, labor inspectorate. He wrote to the president of the Russian Federation, FSB (Federal Security Service), plenipotentiary representative of the president in the Urals Federal District Igor Kholmanskikh.
Inspections carried out in connection with his complaints revealed no violations.
Perhaps, the situation at hand is the result of the insufficient transparency of the company’s management board?
GENNADY LISOVICHENKO: I don’t think so. Administration meets and speaks with the workers, including in production shops. People ask questions regarding the organization and protection of labor, everyday life, and all of them are decided without delay. Besides, there are special boxes for letters, a “hot line” is functioning enabling one to communicate any issues, industrial and social, to the refinery’s top management. HR Director and Director-At-Large meet with the refinery’s employees in their offices practically any time.
Social assistance to employees is one of our priority areas. Being a developing and socially responsible enterprise we value our reputation, we don’t aim at deriving here-and-now profits, but at efficient performance in the long run.
Gennady Lisovichenko: It was quite logical that the project strategically important for the economy of the Tyumen Region was approved by both, regional and Russian federal authorities.
Simultaneously with the commissioning of oil refining units proper the enterprise is actively developing its infrastructure. What for?
GENNADY LISOVICHENKO: Even now our products are in great demand – all orders have been scheduled in advance for the forthcoming six months. In the future the enterprise will fulfill the demands of the Tyumen Region, Yugra, and the Yamal-Nenets Autonomous District for light oil products in full. Production volumes are growing, so, logistics should develop at outstripping rates. The refinery is located nearby rail and motor ways and it is our competitive advantage. In October 2010 Antipinsky Oil Refinery CJSC acquired and repaired Antipino railway station. The finished products sector (FPS) was built for the purpose of improving the shipment of finished products. It 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. There are two either-direction tank filling racks making it possible to load 71 rail tankers at a time in the sector. Besides, there are two tank-truck loading racks making it possible to load fuel to small tank trucks of 5-30 tons.
In order to supply crude uninterruptedly the refinery is connected to the oil trunk pipelines of Transneft JSC with the capacity of six million tons p.a. (taking into account the commissioning of the third phase of the enterprise), it operates a delivery and acceptance point with an oil metering station. The unified computerized control system provides for the functioning of all units.
The company is striving to be not only the major oil product manufacturer in the region, but also the most advanced enterprise in terms of technology, compliance with industrial and environmental security standards, social policy. So that the development of the enterprise would be of benefit for the entire region.