Gulf Oil and Gas accountACCOUNT

Orsk Oil Refinery Capex to Total $3 bln to 2025

Source: 7/10/2013, Location: Asia

Capital expenditure to modernize OJSC Orsknefteorgsintez from Orenburg region is slated to total $3 billion under the investment program running to 2025, a spokesman for CJSC ForteInvest, the refinery's main partner for oil deliveries and sale of finished product, told Interfax.

"The development program in the period to 2025 was drawn up by CJSC Neftekhimproyekt (St. Petersburg) and approved in 2012. It provides for construction of technological complexes at the Orsk oil refinery, including new technological units and general refinery facilities," the spokesman said.

The program will be implemented in three stages. The first stage includes construction of five of the eight planned complexes which, upon completion, will produce Euro 5 fuel, lower fuel production to 950,000 tonnes, increase product yield from crude to 75% and raise the proportion of light product output to 64%.

The second stage will see construction of the 6th and 7th complexes, which will boost light product output to 68% by increasing diesel fuel production. The third stage will raise product yield from crude to 90% and light product output to over 75%.

"Upon completion of the reconstruction, production of products such as fuel oil will cease altogether and production of Euro 5 fuel - gasolines, kerosene and diesel fuel - will increase," the spokesman said.

Once the modernization program is completed the refinery will increase the amount of oil it processes, but only slightly, to 6 million tonnes of crude a year from 5.6 million-5.8 million tonnes currently. However, it will be "one of the most efficient refineries in Russia: light production output equal to 84.7%, product yield from crude at 96.4% and the Nelson Index at 9.06," the spokesman said.

The program includes construction by 2025 of an isomerization unit for C5-C6 fractions, a C7 isomerization complex, a unit for visbreaking vacuum residues, a hydrocracker, a crude vacuum unit (ELOU-AVT-4), and hydrogen and sulfur production units, a reforming unit, a coking unit, and a secondary products hydrofiner.

Aside from the new construction, the existing primary refining units, reforming units, kerosene fractions hydrofiner and bitumen units will be rebuilt. In addition, storage tanks will be added, a new substation will be built, the loading pier will be rebuilt, and an operator station for controlling several production facilities at once will be added.

The refinery raised a non-renewable credit line from Sberbank at the end of June which will be used to finance the modernization production up to December 28, 2018. The credit limit is $442 million, of which the refinery may take up to $39 million from the issue date, up to $225 million from July 1, 2013 and up to $442 million from January 1, 2014.

The loan agreement was concluded on June 26, 2013 and will be presented to company shareholders for approval.

Orsknefteorgsintez, the biggest oil refinery in Orenburg region, refined 5.8 million tonnes of oil in 2012, which is also the refining target for 2013.

Sermules Enterprises owned 77.2% of voting shares in Orsknefteorgsintez (71.94% of share capital) as of March 31, 2013, according to the refinery's list of associated parties. Sermules Enterprises is wholly owned by Cipation Holdings Ltd, which is registered in the Virgin Islands and belongs to Kazakh businessman Igor Shkolnik, who is the son of Vladimir Shkolnik, the chairman of National Atomic Company Kazatomprom.

ForteInvest owned 7.6% of voting shares in the refinery and Luxembourg-based SBI Voskhod Capital had 10%.

For more information about related Opportunities and Key Players visit Caspian Region Projects

Investment News in Russia >>

United Kingdom >>  4/12/2019 - Independent global completions service company Tendeka has more than doubled its work in the UK offshore sector over the past 12 months. The growth in...
Canada >>  4/10/2019 - Africa Oil Corp. had acquired 4,752,850 common shares of Eco (Atlantic) Oil and Gas Ltd. ("Eco") for US$1.05 per common share for a total consideratio...

Saudi Arabia >>  4/9/2019 - Saudi Aramco is set to raise $12 billion with its first international bond issue after receiving more than $100 billion in orders, a record breaking v...
United Kingdom >>  4/7/2019 - The offshore market is set for a bumper year with 83 greenfield FIDs expected, totalling $115 billion in infrastructure, equipment & associated drilli...

Nigeria >>  4/6/2019 - Shell Petroleum Development Company of Nigeria Ltd (SPDC) plans to invest about $15 billion in oil and gas projects in Nigeria over the next five year...
United States >>  4/3/2019 - Total and Tellurian signed a series of agreements strengthening the partnership between the two companies to develop the Driftwood LNG project located...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Russia Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 | 41 | 42 | 43 | 44 | 45 | 46 | 47 |

Oil & Gas Projects in Russia >>

More News

Related Links

Gulf Oil and Gas
Copyright Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.