Fact Book – p. 37-47

Transcription

Fact Book – p. 37-47
Oil refining
LUKOIL on the world map
Euro-5
As of July 2012 all of LUKOIL’s Russian refineries
had switched to production of automotive
gasoline that fully meets Euro-5 specifications.
This provides a significant economic benefit due
to the differentiation of excise taxes and also
enables the Group to recoup its investments
in refinery modernization.
Company refineries
One of the Group’s strategic objectives is to maximize
the value-added of products and profitability of
operations, by increasing the contribution of oil
refining to the formation of Group value.
Exploration and production
LUKOIL strives to balance its extraction and processing volumes by
giving much attention to the development of its refining business.
Euro-5 gasoline ensures so-called ‘clean exhaust’, reducing
emission of sulphur oxides and the products of incomplete
combustion of aromatics (including the particularly dangerous
carcinogen and mutagenic, benzopyrene). Sales of LUKOIL’s
EKTO-branded environment-friendly motor fuels increased by
20% in 2014 to 4.5 mln tonnes and the share of EKTO fuels in
total retail sales increased from 41% in 2013 to 47% in 2014.
Introduction of European standards
The Company is also increasing production of high-octane
gasolines (AI-95 premium and above) in compliance with
European environmental standards in response to growing
demand and gradual changeover to new environmental
standards for motor fuels.
Tax Environment in Russia
Company refineries have up-to-date conversion and enrichment
facilities and produce a wide range of high-quality petroleum products.
LUKOIL’s Russian refineries are ahead of the national average by quality
of their facilities and the level of their performance indicators,
and the Group’s European refineries match the standards of
competitors. Crude oil refining by the Group rose by 0.6% in 20102014 and refining volumes in 2014 were 66.57 mln tonnes
(including LUKOIL’s share of refining at Zeeland).
Refining and marketing
When LUKOIL was created, it included only two refineries – the Perm
and Volgograd facilities – with total annual crude oil capacity of about
24 mln tonnes. Today, the Group owns 4 large refineries and 2 minirefineries in Russia, as well as plants abroad (in Bulgaria, Romania
and the ISAB complex in Italy) and a stake in a refinery in the
Netherlands. LUKOIL now has total annual refining capacity for
77.7 mln tonnes of crude oil.
Modernization
Lubricants
Installation of a residue processing complex at the Perm Refinery,
catalytic cracking at the Nizhny Novgorod Refinery, a complex for
deep conversion of vacuum gas oil at the Volgograd Refinery and
of a heavy residue conversion complex at Burgas will significantly
boost the Group’s financial results in the refining segment. All LUKOIL
refineries in Russia switched to production of Euro-5 compliant
automotive gasoline as early as 2012.
Production and sale of lubricants represents a distinct segment within
LUKOIL’s business. Lubricants are produced at LUKOIL refineries in Perm,
Volgograd and Nizhny Novgorod. The Company also blends lubricants
from ready-made components (produced in-house and bought from
third parties) at facilities in Russia, Finland, Romania, Turkey and
Austria. Lubricant production volumes at Group facilities in 2014
were 1.1 mln tonnes.
Reference Information
LUKOIL is constantly modernizing its refining capacities, reacting
quickly to main market trends. The Company uses the latest
technologies in modernization of its refineries in order to improve
the quality of production and to reduce environmental impact.
The Company is rapidly introducing European quality standards for
engine oils at all its refineries. This offers significant competitive
advantages as well as a price premium, reflecting the environmental
and functional qualities of Company products.
The development of a product range that meets the latest requirements
is crucial for the success of LUKOIL’s lubricant business. In the last
5 years, the Company’s lubricant range has expanded from 230 to
336 products, including the development and production launch of
37 new products in 2014. LUKOIL obtained 47 approvals in 2014 for
engine, transmission and industrial lubricants from Russian and foreign
manufacturers, including MAN, Mercedes, Porsche, Renault, Cummins
and Danieli.
Fact Book 2014
37
An agreement was signed in 2014 for the supply of LUKOIL’s INTEGO
branded lubricants to the Russian steel maker MMK, a three-year
contract was signed with the ferrous-metals giant, Norilsk Nickel,
and an agreement was reached for the supply of high-performance
LUKOIL lubricants to SUEK, which is one of the world’s largest coal
mining companies and the largest producer of coal in Russia. Chusovoy
Metallurgy Works, Europe’s largest manufacturer of automotive springs
(supplier to the Russian vehicle builders, KAMAZ, URAL Automotive,
UAZ and NEFAZ) will also use LUKOIL lubricants.
The Company is also developing rapidly as a supplier of lubricants for
first-fill of vehicles at assembly plants. The LUKOIL plant in Vienna
(Austria) has been certified compliant with the VDA 6.3 standard
maintained by German automakers. Deliveries have begun of
LUKOIL ATF transmission oil as first-fill for automatic transmissions
manufactured by Voith Turbo for DIWA buses.
LUKOIL pursued development of its marine lubricant business in
2014. At the world-leading SMM Exhibition in Hamburg the Company
presented a new line of biodegradable synthetic oils that meet
the latest and strictest quality and safety standards as well as the
innovative iCOlube lubrication system. After a year of successful
operation by 7 vessels of Carnival Group (P&O Cruises), including
the world passenger fleet flagship, Queen Mary II, 8 more Carnival
cruise ships are to be supplied with LUKOIL NAVIGO oils and the
Company has won first-fill rights for the Carnival’s new flagship,
the Britannia. A one-year contract has been signed with Oman
Shipping Company for the supply of marine lubricants to the fleet
of the Oman state shipping company (43 vessels with deadweight
of 300-400 th. tonnes each). Lubricant deliveries began in December
for 130 heavy-tonnage vessels of Mediterranean Shipping Company,
including the world’s 20 largest container ships, which are now
being built in China and South Korea.
VOLGOGRAD
REGION
Volgograd
Volgodonsk
to Tikhoretsk
LUKOIL-Volgogradneftepererabotka
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The Refinery produces fuels and lubricants
Located in southern Russia
Refines a blend of light West-Siberian and Lower-Volga crudes
Crude oil is supplied to the Refinery via the Samara–Tikhoretsk
pipeline
Petroleum products are shipped by rail, road and river transport
Capacity – 11.3 mln tonnes per year
Nelson index – 6.1
Main conversion process – coking (2 units with capacity
of 24.0 th. barrels per day)
Gases
Gas
fractionation
Naphta
Reforming
Naphta
Isomerization
Liquified hydrocarbon
gases
Gasoline component
Gasoline component
Diesel fuel
Gas oil
Gas oil hydrotreating
ATMOSPHERIC
AND VACUUM
DISTILLATION
Kerosene
Vacuum gas oil
Fuel oil
Coke
Coke calcination
Calcinated coke
Coking
Vacuum residue
Refining volumes at Russian refineries were almost unchanged
in 2014 at 45.3 mln tonnes.
Vacuum gas oil
Capital expenditures at Russian refineries totaled $1,691 mln in 2014,
up from $1,393 mln in 2013. The growth was due to further work on
deep processing of vacuum gas oil at the Volgograd Refinery and the
construction of a heavy residue processing complex and a generating
block at the Perm Refinery.
from
Samara
Volgograd Refinery
Russian refineries
The share of high-octane gasoline in total output of gasoline at Group
refineries in Russia (not including mini-refineries) increased to 100%
in 2014. Refining depth is steadily increasing as modernization
of the Group’s refineries progresses and reached 77.1% in 2014
(up from 75.7% in 2013) thanks to the modernization of the
Volgograd Refinery (inclusion of lubricant production residues,
which were previously used in fuel oil, in vacuum gas oil) and of the
Ukhta Refinery (launch of the tar visbreaking unit reduced output of
fuel oil and increased the production of diesel and vacuum gas oil).
38
Volgograd Refinery
Bitumen blowing
Productionбитума
Производство
of lubricating oils
Gasoline component production
Vacuum residue conversion
Distillates upgrading
Gas processing
Bitumen
Lubricating oils
Vacuum gas oil conversion
History of the Refinery
The Volgograd Refinery was commissioned in 1957 and became a part
of LUKOIL Group in 1991. In 1997–1998 the Refinery commissioned
automatic equipment for blending of gasolines and a rail trestle for
crude oil discharge. In 1998–2001 the Refinery launched equipment
for hydrotreatment of diesel fuel, naphtha stabilization and fractioning
of saturated hydrocarbon gases. In 2004–2006 the first stage
of a coke calcination facility was completed and a catalytic reforming
unit was installed. In 2007 the Refinery obtained an isomerization unit
with annual capacity of 380,000 tonnes. In 2008 the vacuum block
on distillation unit No6 was re-commissioned after an upgrade and
an automated gasoline blending station was brought into operation.
New facilities in 2009 included a unit for production of inert gas was
and a steam recuperation unit at the oil loading rack. EKTO diesel
fuel production was started in the same year. In 2010 a short-cycle
Perm Refinery
from
Kholmogory
PERM REGION
Krasnokamsk
A second line of the coke calcination unit was launched in 2013,
increasing annual calcination capacity to 280 th. tonnes. A line for
packaging of lubricants into 216.5-liter barrels was installed as well
as an automated warehouse line for packaging of lubricants into
1-, 4- and 5-liter cans.
Perm
Refinery
LUKOIL on the world map
absorption unit to produce concentrated hydrogen was brought
into operation and the diesel hydrotreatment unit was modernized.
In 2011 a new delayed coking unit with 1 mln tonnes capacity was
commissioned. In 2012 a diesel hydrotreatment unit with annual
capacity of 3.0 mln tonnes was commissioned.
Kama reservoir
Perm
to Polotsk
from Surgut
to Klin
LUKOIL-Permnefteorgsintez
• The Refinery produces fuels, lubricants and petrochemicals
• Located 9 km from the city of Perm
• Refines a blend of crudes from the northern part of Perm Territory
and from Western Siberia
• Crude oil is supplied to the Refinery via the Surgut–Polotsk pipeline
and the Kholmogory–Klin pipeline
• Petroleum products are shipped by rail, road, and river transport,
and also via the Perm Andreyevka–Ufa product pipeline
• Capacity – 13.1 mln tonnes per year
• Nelson index – 8.1
• Main conversion processes are hydrocracking
(T-Star, 65.2 th. barrels per day), catalytic cracking
(9.3 th. barrels per day) and coking (18.9 th. barrels per day)
Quality of products
• Since mid-2008 the Refinery has been producing diesel fuel with
sulfur content below 50 ppm
• Since 2008 the Refinery has been producing engine gasolines that
meet Euro-3 standards
• Since 2012 all engine gasolines produced at the Volgograd Refinery
meet Euro-5 standards
• The Refinery produces about 500 th. tonnes per year of mineral,
semi-synthetic and synthetic lubricants to Russian and international
(API) standards
Isomerization
Gasoline component
Platforming process
for aromatics production
Extraction
Vacuum
gas oil
Vacuum
gas oil
Catalytic cracking
С7+
Raffinate
Benzene
Toluene
Solvent
Mixed gas
Gasoline component
Gas oil
Hydrocracking
Diesel fuel
Vacuum gas oil
Production
of lubricating oils
Lubricating oils
Gasoline component
production
Distillates upgrading
Vacuum gas oil
conversion
Vacuum residue
conversion
Fuel oil
Gas oil
Gas oil hydrotreating
Vacuum
residue
Fat gas from
crude distillation
and coke units
NGL
Associated petroleum gas
Bitumen blowing
Production
of lubricating oils
Gas processing
Diesel fuel
Kerosene
Light gas oil
Gasoline
Coke
Bitumen
Lubricating oils
Liquified hydrocarbon gases
Stable gas naptha
Stripped gas
Reference Information
Analyst Databook, p. 41
Gasoline component
Coking
Current modernization
• Construction of a new crude oil distillation unit with annual
capacity of 6 mln tonnes in 2015
• Work to expand primary refining to 14.5 mln tonnes per year
by 2016
• Construction of a deep refining complex for vacuum gas oil
in 2016
Reforming
Tax Environment in Russia
ATMOSPHERIC AND VACUUM DISTILLATION
Naphta
Refining and marketing
Primary oil refining, mln tonnes
Exploration and production
In 2014, the company Tecnicas Reunidas (Spain) carried out an EPC
contract for the delivery and installation of main hydrocracking and
hydrogen production equipment to create a new complex for deep
processing of vacuum gas oil. A contract has also been made for the
construction and installation of other facilities as part of this deep
processing project. The new complex, which includes a vacuum gas oil
hydrocracker with 3.5 mln tonnes annual capacity as well as units for
hydrogen and sulfur production, is scheduled to launch in 2016.
Its effect will be to greatly increase outputs of diesel fuel complying
with Euro-5.
History of the Refinery
The Perm Refinery was brought into operation in 1958 and became
a part of LUKOIL Group in 1991. Large-scale reconstruction was
carried out in 1993–1998, including extensive re-building of coking
equipment, installation of a vacuum distillation unit, modern lubricant
production, and creation of a system for protecting the environment.
In 1999 the Refinery launched new equipment for utilization of
hydrogen sulfide and production of sulfuric acid. In 2004-2005
the Refinery launched a deep oil refining complex and completed
reconstruction of the vacuum block on distillation unit No4.
1
The Perm Refinery includes gas processing assets of the Perm Gas-processing Plant following
merger of the two companies in November 2014.
Fact Book 2014
39
An assembly for introduction of diesel fuel additives was installed
on the hydro-dearomatization unit. In 2007 an isomerization unit
with annual production capacity of 450 th. tonnes was launched
and annual refining capacity at the Refinery was increased to
12.4 mln tonnes thanks to overhaul of the distillation units. In 2008
the Refinery’s annual capacity increased to 12.6 mln tonnes thanks
to modernization of the atmospheric distillation block on distillation
unit No4, which gave an increase of annual capacity by 125 th. tonnes.
In 2011 capacity of the delayed coking unit was increased to
1 mln tonnes per year. In 2012 a modern microprocessor-based
distributed control system (DCS) was installed on the hydrocracking
unit, hydrogen generation unit, raw material preparation aggregate,
and the solvent deasphalting and dewaxing units.
Current modernization
• Construction of a deep conversion complex
• Reconstruction of the diesel hydrotreatment unit, and of
hydrodearomatization equipment on the hydrocracking unit
Analyst Databook, p. 42
Nizhny Novgorod Refinery
NIZHNY NOVGOROD
Nizhny
REGION
from Surgut
Novgorod
Nizhny Novgorod
Refinery
Cheboksary
Kstovo
Modernization of the 24/7 diesel hydrotreatment unit was completed
in 2013 with increase of annual capacity by 0.3 mln tonnes of Euro-5
diesel.
Construction and installation work continued in 2014 in the project
for construction of an oil residue processing complex, including
installation of a delayed coker with annual capacity of 2.1 mln tonnes,
as well as a diesel hydrotreatment unit and hydrogen production unit.
An air compression station was commissioned during the year as part
of this work. The new processing complex will make it possible
to end production of fuel oil and to increase light product yield
while observing current requirements for industrial safety and
environmental protection.
Technical refit of the vacuum block on distillation unit-4 was completed
in 2014.
to Polotsk
LUKOIL-Nizhegorodnefteorgsintez
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Technical furnaces at the Refinery are being modernized to increase
operation efficiency and reduce emissions.
Primary oil refining, mln tonnes
Quality of products
• Since 2004 the Refinery has produced diesel fuel with sulfur
content below 50 and 10 ppm (Euro-4 and Euro-5)
• Since 2008 the Refinery produced only Euro-3 gasoline
• Since 2012 the Refinery has produced only Euro-5 gasoline
• The Refinery produces mineral, semisynthetic and synthetic
lubricants to Russian and international standards (API)
• The Refinery has been certified compliant with the
ISO 9001:2000 quality standard
40
The Refinery produces fuels and lubricants
Located in the town of Kstovo in Nizhny Novgorod Region
Refines a blend of West Siberian and Tatarstan crude oil
Crude oil is supplied to the Refinery via the Almetyevsk–Nizhny
Novgorod and Surgut–Polotsk pipelines
Petroleum products are shipped by rail, road and river transport
and by pipeline
Capacity – 17.0 mln tonnes per year
Nelson index – 6.4
Main conversion processes are catalytic cracking
(41.0 th. barrels per day) and visbreaking
(42.2 th. barrels per day)
Gas
ATMOSPHERIC AND VACUUM DISTILLATION
A new process for extraction of diesel fraction as a separate product
has been developed and implemented at the Refinery.
from Almetyevsk
Naphta
Naphta
Gas oil
Vacuum
gas oil
Absorbing
gas fractionation
Isomerization
Reforming
Liquified hydrocarbon
gases
Butane
Gasoline component
Gasoline component
Gas oil hydrotreating
Kerosene
Diesel fuel
Vacuum gas oil
hydrotreating
Diesel fuel
Vacuum
gas oil
Production of
Lubricanting oils
Lubricants
Production of Bitumen
Bitumen
Visbreaking
Fuel oil
Fuel oil
Vacuum
residue
Catalytic
cracking
Gasoline
component
Gasoline component
Fuel oil component
Propylene
Gasoline component production
Vacuum gas oil
Vacuum
residue
Butane-butylene
fraction
Alkylation
Distillates upgrading
Vacuum gas oil conversion
Vacuum residue conversion
Gas processing
History of the Refinery
The Perm Refinery was brought into operation in 1958 and became
a part of LUKOIL Group in 2001. In 2002-2003 distillation unit-5
and a lubricants hydrotreatment unit were rebuilt, and technology was
installed for the production of highly-purified paraffins for the food
industry. The modernization increased output and export of paraffins.
• Since 2004 the Refinery produced diesel fuel with sulfur
content below 50 ppm (Euro-4)
• Since 2006 the Refinery produced Euro-3 gasolines
and Euro-5 diesel fuel
• Since 2011 the Refinery has produced Euro-5 gasolines
• The Refinery has been certified compliant with ISO 9001:2000
Current modernization
• Construction of a second complex for catalytic cracking
of vacuum gas oil in 2015
• Construction of a vacuum block
• Project studies for construction of a facility for hydrocracking
of residues
Exploration and production
In 2008, a vacuum residue visbreaking unit with annual capacity of
2.4 mln tonnes was commissioned. The unit increased margins from
Refinery operations by reducing output of heating oil (by 930 th.
tonnes per year) and increasing volumes of vacuum gas oil
(by 860 th. tonnes per year). In 2009 the Refinery began production
of the high-performance EKTO-98 automotive gasoline. In 2010
a new complex for catalytic cracking of vacuum gas oil was brought
into operation, which increased annual output of high-octane gasoline
and diesel fuel by 1.4 mln tonnes and 400 th. tonnes, respectively.
Light product yield was increased by 12%. The unit for diesel
hydrotreatment was modernized in the same year. In 2011 a hydrogen
fluoride alkylation unit was brought into operation. Reconstruction
work on distillation unit-5 was completed in 2012 and a modern
distributed control system using microprocessors was installed on
distillation unit-1.
Quality of products
LUKOIL on the world map
In 2004 the Refinery installed a catalytic reforming unit with annual
capacity of 1 mln tonnes. In 2006 an isomerization unit with
440 th. tonnes annual capacity was commissioned, enabling the
Refinery to produce automotive gasolines to Euro-3 standards, and
modernization of distillation unit-6 was completed, increasing its
capacity to 9 mln tonnes. The hydrotreatment unit was also rebuilt,
enabling production of diesel fuel to Euro-5 standards.
Analyst Databook, p. 43
Ukhta Refinery
Ukhta
Production of low viscosity marine fuel began in 2013. Storage
capacity for oil and petroleum products was expanded, enabling
creation of an oil reserve and optimization of fuel oil logistics.
An improved control system was installed on the catalytic reforming
and isomerization unit.
Nizhny Odes
Refining and marketing
Ukhta
Refinery
from Usa
KOMI REPUBLIC
Troitsko-Pechorsk
LUKOIL-UNP
Main equipment was supplied in 2014 for the construction of a second
catalytic cracking complex and principal infrastructure for the complex
was put in place. Critical equipment for vacuum block-2 was delivered.
The Refinery produces fuels
Located in the central part of the Komi Republic
Refines a blend of crudes from oil fields in the Komi Republic
Crude is supplied to the Refinery via the Usa–Ukhta pipeline
Petroleum products are shipped from the Refinery by rail and road
Capacity1 – 4.0 mln tonnes per year
Nelson index – 3.8
Main conversion process is visbreaking (14.1 th. barrels per day)
Naptha
Primary oil refining, mln tonnes
Naptha
Reforming
Gas oil
Hydrodewaxing
Gasoline component
Gasoline component
Diesel fuel
Kerosene
Vacuum gas oil
Vacuum
residue
Bitumen blowing
Vacuum residue
visbreaking
Reference Information
ATMOSPHERIC
AND VACUUM
DISTILLATION
Isomerization
Tax Environment in Russia
Long-term plans include the construction of a complex for
hydrocracking of residues, including capacities for hydrocracking,
diesel hydrotreatment, and production of hydrogen and sulphur.
Implementation of the project will substantially increase light oil yield
and minimize production of dark products, including changeover
to outputs of low-sulfur fuel oil.
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Bitumen
Fuel oil
Gasoline component
Gasoline component production
Distillates upgrading
Vacuum residue conversion
1
Not including distillation capacity (vacuum unit).
Fact Book 2014
41
History of the Refinery
Mini-Refinery in Uray
The Refinery was brought into operation in 1934 and became a part
of LUKOIL Group in 1999. Distillation unit-1 was rebuilt in 2001–2003,
when a unit for hydrodeparaffinization of diesel fuel was
also commissioned.
In 2004 a trestle for crude oil discharge and lading of dark petroleum
products was put into operation. The first stage of reconstruction
of the catalytic reforming unit was also completed at that time,
improving its performance and increasing annual capacity by
35 th. tonnes. In 2005 a block was installed to increase hydrogen
concentration in the hydrodeparaffinization unit with annual capacity
of 250 th. tonnes of Arctic fuel. In 2006 work was completed on
the second stage of a loading facility for oil and petroleum products
with annual capacity of 4 mln tonnes. Re-equipment of the catalytic
reforming unit was also completed, increasing its annual capacity from
300 to 380 th. tonnes. In 2007 the Refinery commissioned a vacuum
residue visbreaking unit with 800 th. tonnes annual capacity, increasing
outputs of vacuum gas oil. In 2009 construction work was completed
on an isomerization block with planned annual input capacity of
120 th. tonnes. Refitting of the reactor block of the GDS-850 diesel
hydrotreater was completed in 2012.
Uray
Irtysh
Mini-refinery
in Uray
KHANTY-MANSI
AUTONOMOUS DISTRICT
Tobolsk
Urayneftegaz
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The Refinery produces fuels
Located in Uray
Refines a blend of local crudes
Capacity – 100 th. tonnes per year
Brought into operation by LUKOIL Group in 1995
Gasoline component
Catalytic reforming
Naphta
Diesel fuel
ATMOSPHERIC
DISTILLATION
Fuel oil (reterned to oil)
The atmospheric-vacuum distillation unit was relaunched after
reconstruction in 2013, and capacity of the vacuum block was
increased to 2 mln tonnes per year. Construction of an aggregate
for offtake of gas condensate was also completed.
Modernization work continued in 2014 to make Refinery installations
compliant with current standards and regulations.
Fuel oil
Bitumen
Bitumen blowing
Gasoline component production
Vacuum residue conversion
Mini-Refinery in Kogalym
Plans for the Refinery include construction of a gas fractionation
plant, a unit for sweetening of kerosene fraction and a block for
separation of isopentanes.
Noyabrsk
KHANTY-MANSI
AUTONOMOUS
DISTRICT
Mini-refinery
in Kogalym
Kogalym
Primary oil refining, mln tonnes
Nefteyugansk
Surgut
Ob
Megion
Nizhnevartovsk
Kogalymneftegaz
Quality of products
• In 2003 the Refinery transferred to production of winter and Arctic
brands of diesel fuel
• Since 2005 the Refinery has produced diesel fuel with sulfur content
below 50 and below 10 ppm
• Since 2009 the Refinery has produced Euro-3 and Euro-4 gasoline
• In 2012 the Refinery started production of Euro-5 gasoline
Analyst Databook, p. 44
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The Refinery produces fuels
Located in Kogalym
Refines a blend of local crudes
Capacity – 350 th. tonnes per year
Brought into operation by LUKOIL Group in 1997
Catalytic Reforming
Diesel fuel
ATMOSPHERIC
AND VACUUM
DISTILLATION
NGL
NGL hydrotreatment
Jet fuel
Fuel oil (reterned to oil)
Vacuum
residue
Bitumen blowing
Gasoline component production
Distillates upgrading
Analyst Databook, p. 45
42
Gasoline
Bitumen
Vacuum residue conversion
Refining volumes at LUKOIL Group’s foreign refineries increased slightly
in 2014 (by 0.9%) to 21.3 mln tonnes. Decline of product output
at the Zeeland Refinery by 20.3% due to an overhaul in the second
quarter was compensated by growth of volumes at ISAB.
Capital expenditures at Group refineries abroad were $627 mln in 2014
compared with $791 mln in 2013. The main investment project outside
Russia was at the Burgas Refinery (Bulgaria) where work was completed
in 2014 on the construction and installation of a gaseous sulfur unit as
part of the project to create facilities for refining of heavy residues.
Exploration and production
Irretrievable losses during refining in 2014 at the Company’s own
refineries outside Russia (excluding ISAB and Zeeland) were 0.76%.
Refining depth rose to 87.4% thanks to improvement of the structure
of outputs from processing units at the Ploiesti Refinery (Romania).
Production of marketable fuel was terminated and there was
a corresponding increase in production of motor fuels. The light
product yield in 2014 was 72.2%.
In 2007 a 25 megawatt power supply unit was commissioned.
In 2009 the Refinery completed upgrading of units for hydrotreatment
of diesel fuel, catalytic cracking, hydrotreatment of gasoline produced
by catalytic cracking, and production of MTBE and TAME, as well as
a vacuum block for distillation unit-1. Construction of a hydrogen unit
was also completed, which made the Refinery capable of producing
Euro-5 fuels. In 2010, 2 new coke drums were installed on the delayed
coking unit. In 2011 the Refinery began production of propylene with
sulfur content below 5 ppm. Reconstruction of the amine unit was
completed in 2012, and an enhanced control system was installed on
distillation unit-3, increasing the yield of marketable products.
LUKOIL on the world map
Foreign refineries
Projects completed in 2013 included raising levels of C3+ recovery
from catalytic cracking dry gas and modernization of purification
units in 2013. An overhaul of the Refinery was also carried out with
reconstruction of the catalytic cracking unit and replacement of the
catalyst system on the diesel hydrotreater, which enabled changeover
to a system of production without fuel oil, significantly increasing
the depth of processing and light oil product yield.
Further work was carried out in 2014 in accordance with the roadmap
for maximizing the economic efficiency of Refinery operations.
Ploiesti Refinery
Ploiesti Refinery
Bucharest
e
b
Danu
Constanta
BULGARIA
Petrotel-LUKOIL, Romania
Naptha
Gasoline
component
production
Reforming
Gasoline component
Distillates
upgrading
Gasoline
hydrotreating
Gasoline component
Isomerization
Naptha
Vacuum gas oil
Liquified hydrocarbon
gases
Gasoline component
Gas fractionation
Gasoline
Catalytic cracking
Fuel oil
Diesel fuel
Propylene
Vacuum gas oil
conversion
Vacuum residue
conversion
Gas processing
Fraction C4
Ether production
Gas oil
Gasoline component
Gas oil hydrotreating
Diesel fuel
Coking
Coke
Diesel fuel
Vacuum residue
Tax Environment in Russia
• The Refinery produces fuels
• Located in Ploiesti (central Romania), 55 km from Bucharest
• Refines Urals crude (Russian export blend) and oil from fields of
Romania
• Crude oil is supplied to the Refinery by pipeline from the Black Sea
port of Constanta. Romanian oil is also supplied by rail
• Petroleum products are shipped by rail and road
• Capacity – 2.4 mln tonnes per year
• Nelson index – 10.0 (the highest indicator at any LUKOIL Group
refinery)
• Main conversion processes are catalytic cracking (18.5 th. barrels
per day) and coking (10.5 th. barrels per day)
ATMOSPHERIC AND VACUUM DISTILLATION
ROMANIA
Refining and marketing
Gas
Ploiesti
Primary oil refining, mln tonnes
Quality of products
The Refinery was opened in 1904 and became a part of LUKOIL Group
in 1999. In 2001 the Refinery started production of AI-98 high-octane
gasoline and low-sulfur diesel fuel (sulfur content below 0.035%).
In the same year the Refinery suspended operations in order to carry out
major reconstruction. The work included modernization of facilities for
primary refining, hydrotreatment, reforming, coking, catalytic cracking,
gas fractionation and isomerization as well as construction of facilities
for hydrotreatment of gasoline, catalytic cracking and production of
hydrogen. The Refinery was relaunched in 2004. In 2006, a unit for
production of MTBE/TAME additives was installed.
• Since 2009 all gasoline and diesel fuel produced at the Refinery
complies with Euro-5 standards
Reference Information
History of the Refinery
Current modernization
• Construction of a treatment unit for flue gas from fluid catalytic
cracking (FCC)
Analyst Databook, p. 46
Fact Book 2014
43
Burgas Refinery
ROMANIA
ude
Dan
Varna
BULGARIA
Burgas Refinery
Black sea
Burgas
Projects were completed in 2013 to bring metering equipment into
compliance with Bulgaria’s tax legislation.
LUKOIL Neftochim Burgas
• The Refinery produces fuels and petrochemicals
• Located on the Black Sea coast, 15 km from the city of Burgas
• Refines various crude oils (including Russian export blends)
and fuel oil
• Oil is supplied to the Refinery by pipeline from an oil terminal
at the port of Rosenets
• Petroleum products are shipped by rail, road and sea transport,
and also via a petroleum product pipeline to central regions of
Bulgaria
• Capacity – 9.8 mln tonnes per year
• Nelson index – 8.9
• The main conversion processes at the refinery are catalytic
cracking (37.1 th. barrels per day) and visbreaking
(26.4 th. barrels per day)
Absorbing
gas fractionation
Propane-butane
Propanebutane
Naptha
Absorbing gas
fractionation
Reforming
Liquefied
hydrocarbon gases
Isomerization
n-butane
N-butane
Vacuum
gas oil
Vacuum
residue
Vacuum
residue
44
Vacuum gas oil
hydrotreating
Isobutane
Alkylation
Gasoline component
Butene
Kerosene
Gas oil hydrotreating
Construction of the heavy residue processing complex should be
completed in 2015. The aim is to increase conversion of oil inputs
to the refinery, to cease production of high-sulfur heating oils, and to
increase production of Euro-5 diesel fuels. The main facility in the new
complex will be an H-Oil tar hydrocracker with annual capacity
of 2.5 mln tonnes.
Hydrocarbon
gases
Butene
Gas oil
Construction and assembly work on a gaseous sulfur (GS-4) unit
was completed in 2014 as part of the new complex for processing
of heavy residues (CMP), a natural gas pipeline was commissioned,
an exhaust heat boiler was installed on the catalytic cracking unit,
and a purification system was fitted for flue gas from waste
incinerators.
Primary oil refining, mln tonnes
ATMOSPHERIC AND VACUUM DISTILLATION
Gases
In 2006-2007 work was carried out to reduce emissions,
and construction of a unit for isomerization of n-butane with
50 th. tonnes annual capacity was completed. In 2009 a new unit for
sulfuric acid alkylation with 300 th. tonnes annual capacity was put
into operation, and construction of a diesel fuel hydrotreatment unit
was completed. In 2010 a diesel hydrotreatment unit and FCC naphtha
hydrotreatment unit were commissioned, as well as a sulfuric acid
regeneration facility. In 2011 work was completed to optimize the
system for loading of boiler fuel at the Rosenets oil terminal.
Diesel fuel
Diesel
fuel
VGO
Bitumen blowing
Bitumen
Visbreaking
Fuel oil
Gasoline
component
Catalytic
cracking
Gasoline component
Ether
production
Gasoline
Hydrotreating
Gasoline
component
Gasoline
component
Gasoline
component
Diesel fuel
Fuel oil
Propylene
Gasoline component production
Vacuum gas oil conversion
Distillates upgrading
Vacuum residue conversion
Production of
polypropylene
Polypropylene
Gas processing
Quality of products
• In 2003 gasoline production was fully upgraded to high-octane,
unleaded products and production of clean diesel fuel with sulfur
content below 0.035% was increased
• Since 2009 the Refinery has produced automotive gasolines
and diesel in compliance with Euro-5 standards. All of the fuel is
marketed in EU countries
History of the Refinery
Current modernization
The Refinery was brought into operation in 1964 and became a part
of LUKOIL Group in 1999. In 2001-2002 the Refinery began production
of light high-octane gasolines and launched 5 new products to
European standards, including products meeting EN-228 and EN-590
standards. In 2004 the catalytic reforming unit was rebuilt increasing
its annual capacity to 600 th. tonnes and the catalytic cracking unit
was rebuilt. In 2005 the regenerator of the catalytic cracking unit was
rebuilt and a system was put in place for altering fuel inputs to the
power and heat generating station depending on market price trends
for boiler fuel and gas. Construction of a unit for production of gaseous
sulfur (30 th. tonnes annual capacity) was completed in the same year.
•
•
•
•
Commissioning of a complex for refining of heavy residues
Commissioning of a unit for the production of gaseous sulfur
Modernization of logistics infrastructure at the Rosenets terminal
Modernization of reservoirs and the sea section at the Rosenets
oil terminal
Analyst Databook, p. 47
IT
Rome
AL
Y
ISAB Complex
TUNISIA
GREECE
Mediterranean
sea
i.Sicily
LUKOIL on the world map
In 2013, LUKOIL’s interest in ISAB was further increased from 80% to
100%. The Group’s share in refining at ISAB was then 8.23 mln tonnes.
ISAB Refinery Complex
In 2014 an integrated gasification combined cycle (IGCC) unit was
acquired and work was carried out to improve efficiency (including
energy efficiency).
Primary oil refining1, mln tonnes
ISAB Refinery Complex, Italy
Kerosene
Merox
Мерокс
Mild
hydrocracking
Propylene
Benzene
ATMOSPHERIC
AND VACUUM
DISTILLATION
Gas oil
Gasoline
Gas oil
hydrotreating
Мерокс
Gas oil
Gasoline
Vacuum
residue
Gas
Visbreaking
Isomerization
Gasoline
component
Reforming
Gasoline
component
Visbreaking
residue
Gas fractionation
Gasoline component
Cumene
Gas oil
hydrotreating
Mild
hydrocracking
• Conversion of one line of the IGCC to use of natural gas in 2015
Hydrocracking
residue
Deasphaltizate
Analyst Databook, p. 48
Diesel fuel
Rotterdam
Southern Refinery
Zeeland Refinery
Gas oil
Thermal cracking
Vlissingen
Fuel oil
Deasphaltizing
Liquified hydrocarbon
gases
Amsterdam
Zeeland Refinery
BELGIUM
Asphalt to IGCC
Gasoline component production
Vacuum gas oil conversion
Distillates upgrading
Vacuum residue conversion
Tax Environment in Russia
Gasoline
Vacuum
gas oil
Current modernization
Gasoline component
Cumene
production
Diesel fuel
Gas oil
Gasoline
hydrotreating
• The Refinery produces only Euro-5 gasolines and diesel fuel
Fuel oil
component
Butane
MTBE production
Catalytic
cracking
VGO
Northern Refinery
Gas oil
Quality of products
Alkylation
Gas oil
ATMOSPHERIC
DISTILLATION
Group share.
Refining and marketing
Gasoline component
Kerosene
fraction
Fuel oil
Vacuum
gas oil
1
Exploration and production
• Located in the eastern part of Sicily, near the town of Priolo
• Refines various types of crude oil and straight-run fuel oil
• Inputs are supplied mainly from countries of the Black Sea region,
North and West Africa, and the Persian Gulf
• Petroleum products are shipped by road and sea transport
• Capacity – 16.0 mln tonnes per year
• Nelson index – 9.3
• Main conversion processes are catalytic cracking
(38 th. barrels per day), hydrocracking (90 th. barrels per day),
visbreaking and thermal cracking (99 th. barrels per day)
Gas processing
History of the Refinery
In 2008 LUKOIL signed an agreement with the Italian company ERG
S.p.A. to purchase a 49% interest in a joint venture for operation of the
ISAB refining complex. In 2011 the Company’s interest was increased
from 49% to 60%. LUKOIL’s share in refining at ISAB was 6.95 mln
tonnes. In 2012 the Company’s interest in the ISAB Refining Complex
was increased from 60% to 80%.
Zeeland Refinery N.V.
• Located in the biggest oil refining and trading hub in north-west
Europe (the Amsterdam–Rotterdam–Antwerp region, often
referred to as ‘ARA’)
• About 90% of Refinery outputs are marketed in Belgium,
the Netherlands, Germany and Switzerland
• Petroleum products are shipped by road and sea transport
• The Refinery has access via its own pipeline to the Maasvlakte Olie
Terminal, which has 4 mln tonnes capacity
• The Refinery owns 54 reservoirs for storage of crude oil
and petroleum products
• Capacity – 3.6 mln tonnes per year 2
• Nelson index – 8.4
• The main conversion process is hydrocracking
(74 th. barrels per day)
2
Reference Information
The Refinery was brought into operation in 1964 (northern section)
and 1975 (southern section). Large-scale modernization began
in 2003 in response to growing demand for medium distillates in
Western Europe.
Antwerpen
By Group share at the end of 2014 (45%).
Fact Book 2014
45
ATMOSPHERIC AND VACUUM DISTILLATION
Liquified hydrocarbon gases
Gas processing
Naphta
Naphta
Production
of gasoline
(100% TOTAL)
Gas oil
hydrotreating
Diesel fuel
Kerosene
Hydrocracking
Solvent
Diesel fuel
Kerosene
Vacuum gas oil
Gas oil
Vacuum gas oil
Gasoline component
Gasoline component production
PRODUCTION
OF OIL AND GAS
PURCHASES
FROM
THIRD-PARTY
PRODUCERS
PERM GPP
LOKOSOVKSY GPP
USINSK GPP
NATURAL GAS LIQUIDS
LIQUEFIED PETROLEUM GAS
STABLE GAS NAPHTHA
STRIPPED GAS
PENTANE-ISOPENTANE FRACTION
Vacuum gas oil conversion
Primary refining1, mln tonnes
OTHER
KOROBKOVKSY GPP
GAS PROCESSING
GAS PRODUCT
MARKETING
Distillates upgrading
The Zeeland Refinery (formerly the TRN Refinery) was commissioned
by Total S.A. in 1973. In 1980 the company Dow acquired 20% of
the Refinery. Modernization was carried out in the early 1980s and
a hydrocracking unit was commissioned in 1986. Dow increased its
stake in share capital to 45%. The Refinery has carried out a series
of modernizations since 1990 to remain one of the most advanced
facilities in Europe: units have been installed for purification of
kerosene fractions and production of sulfur, and the reactor for
hydrotreatment of medium distillates has been expanded to enable
production of diesel fuel with sulfur content below 50 ppm. One of
the most recent large modernization projects at the Refinery was
reconstruction and capacity increase of the hydrocracking unit
(completed in 2004). In 2009 LUKOIL signed an agreement
with TOTAL S.A. for acquisition of a 45% stake in the TRN Refinery,
which changed its name to the Zeeland Refinery in 2011.
TIMAN-PECHORA
URALS
VOLGA
Fuel oil
History of the Refinery
WESTERN SIBERIA
LUKOIL Group’s gas-processing plants process associated petroleum
gas (APG) and natural gas liquids extracted in Russia into marketable
gas (fed into the national pipeline system of Gazprom) and liquid
hydrocarbons. Gas processing ensures efficient use of associated
petroleum gas by transforming it into marketable product, offering
additional profit without any substantial raw material costs.
In 2014, the Company’s gas processing plants processed 3,221 mcm
of gas feedstocks, which is 2.9% more than in 2013. Processing
of liquid hydrocarbons at the plants totaled 710 th. tonnes.
LUKOIL plants produced 2,454 mcm of marketable stripped gas,
791 th. tonnes of liquefied gas, over 748 th. tonnes of natural gas
liquids and 179 th. tonnes of liquid hydrocarbons (stable natural
gasoline and isopentane fraction).
Production of liquid hydrocarbons at Group gas-processing plants
in Western Siberia, the Urals and the Volga region increased slightly
in 2014 to 13.9 mln boe from 13.7 mln boe in 2013.
LUKOIL gas-processing plants
1,700
629
1,460
468
600
271
Usinsk
GPP
2,140
2,049
Lokosovksy
GPP
Perm GPP
1
Group share.
Analyst Databook, p. 49
450
433
161
81
Korobkovsky GPP
4,650
3,221
1,861
710
Gas processing
Refining of liquid
hydrocarbons
mcm
per year
mcm
Analyst Databook, p. 50
46
Capacity
Processing
in 2014
th. tonnes
per year
th. tonnes
Korobkovsky Gas-processing Plant
Re-equipment work continued at the Plant in 2014, rebuilding of the
air compression unit was completed.
Perm Gas-processing Plant
Lokosovsky Gas-processing Plant
• Processes associated gas from fields in Western Siberia
• Marketable products – stripped gas, NGL, stable gas naphtha,
propane
• Customers – Russian industrial and power generating companies
(dry stripped gas), LUKOIL-Permneftegazpererabotka (NGL)
and local consumers
• Capacity – 2.140 bcm per year
• Commissioned in 1983, became part of LUKOIL Group in 2002
In 2005 construction of storage tanks with a trestle for lading of
NGL was completed. In 2006 work was completed to increase annual
capacity of the Plant from 1.0 to 1.9 bcm of associated gas per year,
and further work brought capacity to 2.3 bcm per year. This project
included connection of the Plant to the Urengoi–Surgut– Chelyabinsk
trunk gas pipeline. In 2009 two cylindrical vertical flare furnaces were
brought into operation. In 2010 work was carried out on assembly
of a gas discharge pipeline, as well as modernization of the flare
systems and of fire and accident prevention systems.
Refining and marketing
• Processes associated gas from fields of LUKOIL-Perm, wet gas
from the Perm Refinery and NGLs from the Lokosovsky
Gas-processing Plant and the Perm Refinery
• Capacity – 1,460 mcm of gas, 1.7 mln tonnes of NGLs per year
• Marketable products – stripped gas, stable gas naphtha,
isopentane, LPG, sodium bisulfite
• Customers – Perm Refinery, Stavrolen, foreign marketing units
of LUKOIL Group and local consumers
• Commissioned in 1969, became part of LUKOIL Group in 1998
In November 2014 gas processing assets at the Perm Gas-processing
Plant became part of the Perm Refinery.
Exploration and production
In 2001–2003 external energy supply was overhauled and a steam unit
was launched. In 2005 an associated gas compressor and dryer unit
was put into operation. In 2009 modernization work at the plant was
carried out. In 2010 a long-term program of measures was designed
and approved to keep the Plant in working order and ensure operating
safety.
LUKOIL on the world map
• Processes associated gas from fields operated by RITEK and the joint
venture, Volgodeminoil, as well as natural gas liquids (NGLs)
• Capacity – 450 mcm per year of gas, 161 th. tonnes per year
of NGLs
• Products – stripped gas, stable gas naphtha and LPG
• Customers – petrochemical enterprises and power generating
companies (LUKOIL-Volgogradenergo), foreign marketing units
of LUKOIL Group and local consumers
• Commissioned in 1966 and became a part of LUKOIL Group in 1996
and processing of additional associated and natural gas volumes from
fields operated by LUKOIL-Perm, transport of stripped gas through the
Gazprom pipeline system began and gas supplies were put in place to
the power generating block at the Perm Refinery.
Plans were reviewed in 2013 for reconstruction of the Lokosovsky
Gas-processing and its product storage facilities with installation
of a loading rack.
Usinsk Gas-processing Plant
In 2008 output structure was optimized and NGL processing capacities
were increased to 1,000 th. tonnes per year. In 2009 the Plant carried
out various projects to help achieve the Company target of 95%
utilization of associated gas.
In 2013, construction of a complex for liquefied gases was completed.
A number of new facilities were completed and brought into operation
in 2014: a booster compressor station, the low-temperature
condensation and rectification unit-2, gas fractionation unit-2
and a modernized desulfurization unit. The Plant began reception
• Prepares and processes associated gas from fields operated
by LUKOIL-Komi
• Marketable products – dry and stripped gas, stable gas naphtha
and LPG
• Customers – oil production enterprises of LUKOIL Group
and local consumers
• Capacity – 600 mcm per year
• Brought into operation in 1980, became a part of LUKOIL Group
in 2000
In 2004 the plant launched a gas preparation and processing block,
and a gas input station. This enabled the plant to produce LPG and
stable gas naphtha. In 2010 work proceeded on construction of an
associated gas compressor unit with annual capacity of 500 mcm,
and on installation of a desulfurization unit with annual capacity
of 100 mcm. A project for reconstruction of existing processing
capacities was carried out in 2011. It included installation of a gas
desulfurization and dehydration unit, a booster compressor station for
sulfurous gas and reconstruction of the booster compressor station for
sulfur-free gas. Work began in 2012 for reconstruction of the input
compressor station and installation of a gas desulfurization unit.
Fact Book 2014
Reference Information
In 2010, installation work was completed on a stenching unit for
propanebutane mixtures and work was carried out to identify
pipeline sections in need of replacement. Project documentation
was completed in 2012 for a second low-temperature condensation
and rectification unit.
Tax Environment in Russia
В In 2003-2005 the gas fractionation unit was rebuilt to increase NGL
processing capacity, and a sodium bisulfite unit was put into operation.
In 2006-2007 reconstruction of the plant was carried out, increasing
capacity from 550 th. tonnes to 700 th. tonnes per year of NGL.
47