Overview of International Oil Refining Projects. Promising Foreign Projects
Overview of International Oil Refining Projects
The Company indirectly holds a 21% interest in Mozyr Refinery, Belarus, through Slavneft. Rosneft’s share in the throughput of the Mozyr Refinery amounted to 2.1 mmt in 2019. In 2019, the Company supplied a total of 5 mmt of oil to the refinery, while completing its investment project for the construction of a heavy residue hydrocracking unit.
Promising Foreign Projects
In order to expand its presence in the growing high-margin markets, Rosneft is carrying out a number of promising oil refining and petrochemicals projects in Indonesia and China.
Refinery and Petrochemical Complex Construction in Tuban
The project is implemented in cooperation with Pertamina, Indonesian oil and gas company, through the establishment of a joint venture named РТ Pertamina Rosneft Pengolahan dan Petrokimia (Rosneft holds 45%, Pertamina – 55%) on 28 November 2017.
PT Pertamina Rosneft Pengolahan dan Petrokimia, a joint venture by Rosneft and Pertamina, Indonesian state oil and gas company, signed a contract with Spanish Tecnicas Reunidas SA on the basic (BED) and front-end engineering design (FEED) for an oil refining and petrochemical complex in Tuban, Java, Indonesia. The final investment decision (FID) on the project will probably be made after the completion of BED and FEED and will be based on the results of fundraising. The plant is expected to become one of the most hi-tech facilities globally (with a Nelson Index of 13.1). Its design capacity will be up to 15 mmtpa for primary oil refining, over 1 mmtpa for ethylene production and 1.3 mmtpa for aromatic hydrocarbons production.
PetroChina-Rosneft Orient Petrochemical Company, Tianjin (joint venture)
The ownership structure of the Tianjin Refinery includes:
- Rosneft – 49%;
- China National Petroleum Corporation – 51%.
The refinery’s design capacity is 16 mmtpa.
The Board of Directors of PetroChina-Rosneft Orient Petrochemical has approved the technological structure of the refinery and aromatic hydrocarbons complex. Following a change in the Chinese petroleum product market, the parties agreed to update the project’s feasibility study.
Nayara Energy Limited
In August 2017, Rosneft closed the deal to acquire 49.13% of shares in Essar Oil Limited (renamed as Nayara Energy Limited in May 2018), an Indian company that owns the country’s largest refinery situated in Vadinar and a retail network of filling stations across India.
The Vadinar refinery has a capacity of 20 mmtpa and ranks second in the Indian market by throughput. It is among the world’s top ten most complex refineries, with a Nelson Index of 11.8. It is highly flexible as it can process heavy and extra-heavy crudes, which account for over 90% of its annual throughput. The Vadinar refinery has achieved high operational efficiency for its assets as 17 of its 28 Solomon benchmarks are in the top 1st quartile.
The refinery owns a deep water port that can accommodate VLCC supertankers, while its power stations independently provide ample power supply.
Nayara Energy Limited runs a large network of filling stations under the Essar brand in India, which included 5,628 operating stations as at the end of December 2019. The number of filling stations more than doubled over the period of four years. The company has three own oil depots and 13 under rent.
Nayara Energy Limited operates in 27 out of 28 states of India, its market share by sales being around 5.3%. The company is planning to increase the number of filling stations to 7.3 thousand by 2022 selecting the most promising territories for development.
Nayara Energy Limited is implementing a phased development programme for its Vadinar refinery. During the first phase, the company will reconstruct the catalytic cracking facility and build new polypropylene production units with an annual capacity of up to 450 kt.
Kurdistan Pipeline Company Pte. Ltd.
In January 2019, a concession agreement on the operation of crude oil export pipeline in Iraqi Kurdistan came into effect. The pipeline’s design capacity will be nearly 950 kbpd. The concession term is 20 years with a 5-year extension option. The Company's share in the project is 60%.