Key focus areas in 2020
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 process 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.
Most upgrade projects are in the active stage of implementation, with the bulk of equipment purchased, engineering design finalised, construction and installation in progress. Top priorities are hydrocracking units at the Tuapse, Achinsk, Novokuibyshevsk and Komsomolsk refineries.
When completed, the programme will improve the product portfolio and boost the competitiveness and profitability of the Russian refineries.
Achievements in 2020
- The Kuibyshev Refinery completed construction of a central laboratory for the MTBE unit and obtained a certificate confirming its compliance with the design documentation.
- The Yaroslavl Refinery developed a baseline design for the diesel fuel hydrotreating process as part of the deep conversion unit construction project.
Refinery maintenance programme in Russia
Rosneft continues to implement existing facility maintenance initiatives and refinery upgrade programmes. The total spending on Oil Refining maintenance and upgrade projects under IFRS amounted to RUB 34.4 bln in the reporting year. The Company remains focused on highly efficient projects to debottleneck the refinery configuration by overcoming production and technical constraints, and developing bitumen production, as well as increasing operational efficiency and reducing operating costs.
Rosneft continued working to ensure compliance with the instructions issued by regulatory authorities, minimise environmental risks, align rules and procedures with relevant requirements, replace worn-out equipment, and implement target programmes at the Company’s refineries in Russia.
In 2020, Rosneft continued to implement:
- a 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;
- a programme for measuring in-house material flows;
- projects for emergency recovery of gas fractionation section of the Achinsk Refinery's LK-6Us unit and a hydrocracking unit at 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.
57.1% light product yield
In 2020, the product range of Russian refineries was expanded to meet market demand:
- The Syzran Refinery and Achinsk Refinery started producing RMLS, a low-sulphur marine fuel compliant with IMO requirements. The fuel contributes to minimising the bunker’s environmental footprint.
- The Angarsk Petrochemical Company began manufacturing an advanced mineral base for drilling fluids.
In 2020, the Company continued to implement a number of large-scale projects to minimise the environmental impact of Rosneft’s operations, including:
- renovation/upgrade of wastewater treatment facilities at the Ryazan, Kuibyshev and Novokuibyshevsk refineries, and an oil sludge disposal unit at Bashneft-Ufaneftekhim;
- construction of a new two-unit desulphurisation system and an elementary sulphur complex at the Ryazan Refinery;
- construction of two additional elemental sulphur production lines at Bashneft-UNPZ.
Import substitution, development and launch of new products, and product approval processes
In 2020, the Ryazan Refinery switched another catalytic reforming unit over to a catalyst produced in house. It is the fourth out of five reforming units at the Ryazan Refinery to have successfully replaced costly foreign catalysts with Russian-made products. The catalyst produced by the Angarsk Plant of Catalysts and Organic Synthesis delivers outstanding performance in terms of its stability and product yield from hydrocarbon feedstock. In October 2020, the first commercial batch of the in-house produced hydrotreating catalyst was loaded into the diesel fuel hydrotreater 24/7-2bl at the Ryazan Refinery. Before that, the catalyst produced by RN-Kat, Rosneft’s specialist subsidiary, had successfully passed production tests at the Company’s Ufa Group of Refineries. This is the first diesel fraction hydrotreating catalyst for the Russian refining industry capable of fully replacing its foreign peers to produce the Euro-5 ultra-low-sulphur (below 10 ppm) diesel.
IDZ-028RN, an isodewaxing catalyst developed by RN-TsIR, successfully passed pilot tests at the Angarsk Plant of Catalysts and Organic Synthesis. The Novokuibyshevsk Catalysers Plant has produced a commercial batch of the catalyst for the Kuibyshev Refinery. Meanwhile, Bashneft-UNPZ has been using a diesel fraction hydrotreating catalyst developed by RN-TsIR and produced by the Angarsk Plant of Catalysts and Organic Synthesis. The catalyst, Ht-100RN, has so far proved more reliable than foreign-made alternatives. Another product, RN-Kat's catalyst for hydrodesulphurisation of vacuum gasoil, is being production-tested at unit 24/8 of the Syzran Refinery. Preliminary results show it to be on par with the previously-used imported alternatives. Finally, the Ryazan and Strezhevskoy refineries are testing the guard beds of gasoline fraction hydrotreating catalysts developed by VNII NP.
The Saratov Refinery started producing diesel fuel with a new Russian-made additive RN-DDP-2401. The new additive demonstrates excellent performance, with some of its properties being even better than those of foreign-made alternatives. It substantially increases the cold filter plugging point in cold-weather and winter diesel fuels and maintains their performance properties during low-temperature storage.
Refineries’ operational efficiency improvement in 2020
In 2020, the operational efficiency improvement programme had an actual economic effect of RUB 22 bln (including quick diagnoses and additional measures with an EBITDA impact).
Measures to cut energy consumption produced an economic effect of over RUB 1.4 bln, positively affecting the energy efficiency by 2.8 p.p.
In 2020, the Oil Refining segment met the approved energy saving target. The actual savings amounted to over 200 ktce against the plan of 120 ktce.
Comprehensive accelerated digital transformation plan
In 2020, the Company continued working on initiatives under the consolidated strategy implementation plan in Oil Refining. They included:
- approving the funding to roll out a standardised solution for optimised blending of dark petroleum products at five refineries;
- signing contracts for the implementation of an optimised process control system at 47 units of the Ryazan and Saratov refineries, and Bashneft. The work to adopt the process control system started at six units as provided for in the roadmap;
- approving functional and engineering specifications for the development and deployment of the Digital Plant information system at Bashneft;
- developing and updating 24 process unit models;
- approving functional and engineering specifications to build a single information space at the production control centre of the Syzran Refinery;
- a project launched to develop and deploy a manufacturing execution system in Oil Refining.
|Main areas of operational efficiency improvement programme||Key initiatives of 2020|
|Capacity and product yield optimisation|| |
|Reducing energy consumption|| |