Oil Refining in Russia
In 2017, refining throughput at the Company’s refineries in Russia amounted to 100.6 mmt, compared to 87.5 mmt in 2016Including Bashneft’s performance since its purchase in October 2016.. The sharp increase was due to Bashneft’s assets integration in Q4 2016 and improved market conditions. In 2017, light product yield grew by 1.8 percentage points year-on-year to 58.4%, and refining depth grew by 3.2 percentage points to 75.2%. Refinery throughput at the Company’s mini-refineries in Russia amounted to 1.9 mmt in 2017, with Nizhnevartovsk Oil Refining Association accounting for a majority 1.5 mmt of the oil refined.
In 2017, the Company’s oil refining activities were focused on:
- meeting market demand for quality petroleum products through ongoing refinery maintenance and upgrade programs
- developing and implementing effective projects in refinery debottlenecking and bitumen production development
- improving operational performance and driving operating cost down.
Going forward into 2018 and through to 2020, the Company aims to bolster the segment’s resilience to tax and macroeconomic developments by prioritizing projects at near completion, as well as high-impact and fast-payback projects, including:
- debottlenecking and operational efficiency improvement projects
- renovation of the Bashneft-Ufaneftekhim Refinery’s hydrocracking unit
- the completion of the hydrocracking unit construction at the Tuapse, Achinsk, Novokuibyshevsk, and Komsomolsk Refineries, as well as the installation of catalytic cracking plants at the Kuibyshev and Syzran Refineries.
THE REFINERY UPGRADE PROGRAM IN RUSSIA
In 2017, Rosneft continued implementing refinery upgrade program in Russia to:
- further improve refining depth and light product yields
- increase clean motor fuels output, complying with requirements of the Technical Regulations of the Customs Union to meet the market demand for high-quality petroleum products
- improve the product mix, competitive position, and profitability of the Company’s refineries in Russia
- Production launch of high-purity Group III base oils, used to produce advanced synthetic and semi-synthetic lubricants at the Yaroslavl Refinery, cutting costs by utilizing own Group III base oils and expanding the range of products sold
- Installation of the new oxidation feedstock preparation package at the bitumen production unit and launching improved bitumen production, complying with intergovernmental standards at the Ryazan Refinery
- Installation of core large-capacity equipment for the ongoing construction of the diesel fuel hydrotreating unit at the Angarsk Refinery
|Ryazan Refinery||Angarsk Refinery||Novokuibyshevsk Refinery||Syzran Refinery||Kuibyshev Refinery||Komsomolsk Refinery||Effect|
|CokingDelayed coking or flexicoking.|
|Tuapse Refinery||Achinsk Refinery||Saratov Refinery||Ufa Group of Refineries||Effect|
|CokingDelayed coking or flexicoking.|
The Company’s oil refining operations are focused primarily on the strategic task of supplying high-quality petroleum products to the Russian domestic market, including remote Russian regions such as Eastern Siberia and the Far East.
Some of the Company’s refineries, unlike those of most other Russian producers, are located very far from export markets, which limits the potential for boosting economic efficiency and return on capital employed in the Company’s oil refining business. Therefore, the Company continues the efforts to connect its facilities to the pipeline infrastructure, and maintains active dialogue with authorities to create sustainable tax mechanisms stimulating the development of the oil refining industry.
REFINERY MAINTENANCE PROGRAM IN RUSSIA
In the reporting year, the Company continued to pursue projects rectifying violations and complying with instructions issued by the regulatory authorities by replacing worn-out equipment and implementing the following target programs at the Company’s refineries in Russia:
- Preparation and approval of a program to comply with instructions issued by the Federal Environmental, Industrial, and Nuclear Supervision Service of Russia (Rostechnadzor), following inspections of the Bashneft-Ufaneftekhim branch in 2016–2017
- One of the world’s largest biological wastewater treatment plants at the Bashneft-Ufaneftekhim Refinery was renovated, an addition to the framework within the Year of the Environment 2017 action plan approved by Decree of the Government of the Russian Federation No. 1082r dated 2 June 2016
- Successful construction of a central laboratory at the Kuibyshev Refinery
- Implementation of a pilot project to develop an automated process control system for the oil treatment unit (OTU-2) in shop No.2, using Rosatom equipment
IMPROVED OPERATIONAL PERFORMANCE OF REFINERIES
Rosneft consistently improves the operational performance across the Group’s refining assets.
In 2017, the Company:
- optimized hydrotreating unit operations to allow the use of a wider variety of feedstocks and the utilization of refined gas oil to increase diesel fuel output
- implemented scheduled and supplementary measures under the Operational Efficiency Improvement Program to obtain an economic benefit of RUB 22.6 bln
Continued operational excellence initiatives and made optimization decisions to improved performance across key Solomon Index indicators:
- Exploitation readiness of 92.8% – 0.1% above target
- Energy intensity index grew by 2.9 points to 124.8
In 2017, the Company implemented the previously approved Oil Refining and Petrochemicals Business Energy Savings Directive. The actual effect was 534.5 tce, exceeding the targeted 503.5 tce.
|Capacity and product yield optimization|| |
|Energy consumption reduction|| |
|Reliability and mechanical availability|| |
|Reduction in oil and petroleum product losses|| |