Key Focus Areas in 2019
Refinery Upgrade Programme in Russia
The Company continued to implement the refinery upgrade programme in the Russian Federation, which involves the construction and renovation of refining units and facilities in order to increase the depth of processing, light product yield, and the output of high-quality motor fuels and provide the Company's sales channels with petroleum products that meet the requirements of the Technical Regulations of the Customs Union.
When completed, the programme will improve the product portfolio and boost the competitiveness and profitability of the Russian refineries.
Achievements in 2019
- The Novokuibyshevsk Refinery piloted a kerosene preparation unit as part of the off-site facilities for a hydrocracking plant.
- The Tuapse Refinery completed the construction of water disposal (treatment) facilities and a jet fuel filtration unit as part of its diesel pool project.
- The Syzran Refinery commissioned a central distribution substation as part of the off-site facilities for the catalytic cracking complex.
- The Yaroslavl Refinery developed a basic project for its DCU process and selected a designer for the basic project for diesel fuel hydrotreating process as part of the construction of a deep conversion unit.
Refinery Maintenance Programme in Russia
Rosneft continued to pursue projects on ensuring compliance with instructions issued by the regulatory authorities, minimising environmental risks, aligning rules and regulations with the relevant requirements, replacing worn-out equipment, and implementing target programmes at the Company’s refineries in Russia.
In 2019, Rosneft continued to implement:
- large-scale programme to comply with instructions issued by the Federal Service for Environmental, Technological and Nuclear Oversight (Rostekhnadzor) following the inspections of production facilities;
- programme for measuring plant internal material flows;
- projects for emergency recovery of gas fractionation section of Achinsk Refinery's LK-6 Us unit and hydrocracking unit of Bashneft-Ufaneftekhim;
- measures aimed at reducing unscheduled production stoppages: replacement of worn-out equipment, implementation of industrial and fire safety projects, as well as targeted pipeline replacement and reliability improvement programmes.
In 2019, the product range of Russian refineries was expanded to meet market demand:
- In May 2019, the Ryazan Refinery launched the production of AI-95-K5 Euro-6 gasoline to supply the Moscow Region with greener fuel. The gasoline will help minimise the footprint of road transport and improve the environment, which is especially relevant for large cities;
- the Ufa Refinery also began the commercial production of AI-100 high octane gasoline using the proprietary technology;
- the Komsomolsk and Ufa refineries started producing RMLS, a low-sulphur marine fuel compliant with the IMO standards that went into effect in early 2020. The fuel contributes to minimising the bunker’s environmental footprint.
In 2019, the Company continued to implement a number of large-scale projects to minimise the environmental impact of Rosneft’s operations, including:
- the renovation/upgrade of wastewater treatment facilities of the Ryazan, Kuibyshev and Novokuibyshevsk refineries, and oil sludge disposal unit of Bashneft-Ufaneftekhim branch of Bashneft;
- the construction of a new two-unit desulphurisation system and an elementary sulphur complex at the Ryazan Refinery, and two additional elemental sulphur production lines at Bashneft-UNPZ.
Import Substitution, Development and Launch of New Products, and Product Approval Processes
The first batch of hydrotreating catalysts suitable for Euro-5 compliant diesel fuel underwent industrial tests at Rosneft’s Ufa group of refineries. This is the first-ever hydrotreating agent capable of fully replacing its foreign analogues for the Russian refining industry. The tests proved that Rosneft’s proprietary catalyst was fit for the production of diesel fuel compliant with all the latest technical requirements. The catalyst is on par with the best foreign peers and even superior to them in some aspects.
Comprehensive Accelerated Digital Transformation Plan
In 2019, initiatives under the comprehensive accelerated digital transformation plan in Oil Refining included:
- concept study of seven new digital transformation initiatives in five Group Subsidiaries;
- ten technological prototypes / test runs in four Group Subsidiaries and the Head Office of the Oil Refining segment;
- System For Optimised Mixing Of Heavy Petroleum Products piloted at the Syzran Refinery;
- tender procedures to select a vendor for the implementation of optimised process control systems at 49 units of Ryazan and Saratov refineries, and Bashneft.
Refineries’ Operational Efficiency Improvement in 2019
In 2019, the planned and additional measures of the operational efficiency improvement programme delivered the economic effect of RUB 17.6 bln.
The energy saving initiatives contributed to:
- economic effect of over RUB 1.5 bln;
- 1.8 point improvement in Solomon Energy Intensity Index in 2019.
In 2019, the Oil Refining segment saved 567.7 ktce, overachieving its energy saving target of 510.0 ktce.
|Main Areas of Operational Efficiency Improvement Programme||Key initiatives of 2019|
|Capacity and product yield optimisation|| |
|Reducing energy consumption|| |