- 2Message from the Executive Chairman of the Board of Directors
- 3Interview with the Deputy Chairman of the Management Board of TNK-BP
- 4Our Strategy for the Future
- 5Key financial and operational highlights of 2010
“The Salt of the Earth”
“The Core Value of Integration”
- 8Gas business development “Transformational Change”
- 10Social responsibility
“Doing It Right”
- 11Our financial performance
- 12Subsequent events
9.5 MB PDF
8.5 MB PDF
|Wholesale B2B trading of oil products||Sales, trading and logistics|
The development of refining is based on the implementation of major integrated projects, which will improve the efficiency of oil refining, strengthen the competitive edge of TNK-BP in the refining industry, and considerably increase the production of high-quality light oil products. In 2010, TNKBP achieved a record refining throughput of 732 th. barrels/day. Another important accomplishment was a 4% increase (1.5 mln tons) in the refining cover through the debottlenecking at the Ryazan and Saratov refineries and incremental crude oil production. We continued with implementation of the quality projects and improving operational efficiency.
TNK-BP refining investment program
Integrity and Quality Drilling
Ryazan: Isomerization, Diesel Hydrotreater upgrade, MTBE*
Efficiency and growth
Ryazan: Vacuum unit, Visbreaker, Hydrocracker, Crude unit, FCC expansion
Implementation of TNK-BP’s mid-term refining development program will enable us to achieve:
Investment in refining, mln USD
The main oil refining projects of 2010
In 2010, TNK-BP reached a record refining throughput, owing mainly to aligned teamwork and implementation of the following projects:
— Conversion of the AVT-2 unit at the Ryazan refinery to process crude oil instead of fuel oil, which led to a record refining throughput of 323 mb/d (16 mln tons a year)
— Transportation of light crude to the Ryazan and Saratov oil refineries by rail
Optimized refinery operations enabled the company to refine an additional 1.3 mln tons of crude oil and improve oil product yields. In 2010, the company carried out major repairs at the Ryazan refinery, Nizhnevartovsk refinery (NNPO) and Lisichansk refinery (LINIK), which increased the reliability and integrity of the equipment. This work also served to increase the capacity of the Ryazan refinery, and improved the operational availability of each of the refineries.
Output of oil products, mln tons
In 2010, production of gasoline and diesel regained momentum owing to the optimisation of outputs and the improvement of production units at the oil refineries after a decline in light oil product yields due to a slowdown in sales in 1H 2009 and major scheduled repairs.
Refining throughput, mb/d
Operational efficiencies in refining
In 2010, we achieved significant improvements in efficiency of refining operations and management.
— Feedstock optimization for the AVT primary oil treatment units
— Optimisation of the technological mode in refining units
— Energy efficiency and fuel-loss reduction program
— Optimization of the technological mode and heat exchange at the ELOU-AVT-6 oil treatment unit in spring 2010 led to a feedstock increase from 18,200 to 18,700 tons/day.
The economic effect of these performance improvement initiatives amounted to USD 35 mln.
Quality of oil products
The production of high-quality oil products for the Russian and Ukrainian domestic markets, as well as for export, has always been a high priority for TNK-BP. We are constantly working on improving quality to meet modern environmental requirements and satisfy the growing demand for higher-quality fuels. Our investments in quality projects are also in compliance with the governmental requirement to comply with new technical regulations for fuel marketed in Russia.
In 2010, the company implemented a number of measures as part of quality improvement projects:
— Saratov refinery
— Design work was completed and the necessary permissions obtained to commence the construction of an isomerisation unit, while orders were placed for long-lead equipment.
— Design documentation was submitted to obtain the necessary permissions to construct a diesel fuel hydro-treatment unit.
— Ryazan refinery
— A list of equipment was drawn up for the planned hydro-cracking unit.
— Preparatory work was carried out for the construction of an isomerisation unit and a diesel fuel hydro-treatment unit.
In 2010, the company made considerable changes to the range of oil products it produces.
— Production of high-octane gasoline brands at the Saratov and Ryazan refineries increased to 3.488 mln tons, a 14.7% increase on 2009 figures.
— Production of AI-80 gasoline at the Saratov and Ryazan refineries terminated, and the resulting free production capacities were converted to produce AI-92 and AI-95 gasoline.
— Production of AI-92 and AI-95 gasoline meeting Euro-3 standards started at the Saratov refinery in the autumn of 2010 – earlier than the 2011 deadline set by the government regulations. Upgrades carried out at all other refineries to produce gasoline compliant with Euro-3 standards as of 1 January 2011.
— Production of base gasoline for the branded fuel Pulsar-95 started at the Saratov refinery.
— The Ryazan and Yaroslavl refineries have produced and exported Euro-5 diesel with less than 10 ppm of sulphur since 2008. In 2010, the refineries began supplying Euro-5 diesel to a number of Russian regions.
— The standard diesel fuels supplied to service stations in 2010 by Ryazan refinery were Euro-3 and Euro-4 diesels.
— All diesel produced by the Saratov refinery and supplied to service stations has met the requirements of Euro-3 standards since November 2010.
Quality management and control systems
The quality management systems of all TNK-BP enterprises comply with the requirements of ISO 9000 international standards.
The general management systems of the company’s enterprises include an environmental protection management system compliant with ISO 14000 international standards and a health and safety system compliant with OHSAS 18000 international standards, ensuring that the company’s business processes are organised in accordance with global best practices.
In 2010, the quality management system used in the production of jet fuel at the Ryazan refinery was certified as being compliant with the requirements of AS 9100 international standards, which is the first step towards the production of Jet A-1 fuel.
The quality of testing is an important element of the quality of products. The laboratories of all TNK-BP refineries are accredited as technically competent in accordance with Russian laws and regulations and the company’s test-reliability verification procedures.
Health, safety and environmental achievements
— Major repairs were carried out at the Ryazan Oil Refinery, Nizhnevartovsk Oil Refinery (NNPO) and Lisichansk Oil Refinery (LINIK) over the course of 1.2 million man-hours without accidents causing temporary incapacity.
— Within the period 2008-2010, major repairs were carried out at the company’s oil refineries without accidents causing temporary incapacity over the course of a total of 6 million man-hours.
— 94 service stations were built or upgraded without any accidents causingin capacity.
— Construction of protective facilities to eliminate the subsurface pollution layer at the Uvek Oil Depot was completed (see TNK-BP’s Sustainability Report for more information).
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