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Sibneft To Speed Up Modernisation Of Omsk Refinery

Moscow, 30 November 2000; Sibneft plans to ramp up investment in the Omsk refinery by almost five times next year to $52 million. The investment blueprint focuses on two key projects - the completion of a new alkylation unit and the acceleration of work on replacing the reforming unit.

Following completion of the alkylation unit in September 2001, the Omsk refinery will become the first in Russia to begin commercial production of high-octane A-98 gasoline. The completion of the new unit will allow the refinery to increase its depth of refining and the share of light products in its output slate. The new unit will also lead to a cut in atmospheric emissions, as it will enable the refinery to process a higher proportion of the gases generated in the refining process. French engineering group Technip is supplying equipment for the new facility, which will have a total cost of $60 million.

The new catalytic reforming unit, due for completion in 2003, will also help to boost production of high-octane gasoline. The unit is being built using equipment supplied by Italy’s Eurotecnica Contractors and Engineers at a total cost of $67 million.

The Omsk refinery is next year expected to hike throughput to 262,000 barrels per day (13.25 million tonnes) from an expected 246,000 barrels per day (12.5 million tonnes) in 2000. The increase in refinery runs will come on the back of an expected 11% rise in Sibneft’s oil production. The refinery will next year hike the share of high-octane gasoline in its output slate, and will also significantly boost output of lubricants.

The Omsk refinery has a total capacity of 385,000 barrels per day. The plant is the most modern and sophisticated refinery in Russia and enjoys the highest depth of refining, which climbed to 83.5% in the first nine months of this year. “This aggressive investment programme reaffirms our commitment to maintain the technological edge enjoyed by the Omsk refinery, and to remain one step ahead of changes in demand,” Sibneft president Eugene Shvidler noted.