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Press releases in November 2008

Lisichansk Oil Refinery has reached the technological regime

November 17, 2008, Monday

Until the end of November the refinery is going to process approximately 425 thousand tons of petroleum and 25 thousand tons of the additional raw stock.

The Lisichansk Oil Refinery (CJSC LINIK, the Lugansk oblast’, Ukraine) has accomplished the commissioning works, being conducted from the beginning of the current month. On November the 16th, 2008 all principal technological units of the refinery reached their planned technological regime.

In September — October 2008 the oil refinery was shut down for capital repairs, during which we conducted the detailed inspection of all production installations and performed reconstruction and replacement of the physically worn-out equipment. In particular, we have modernized the vacuum module of the combined unit for primary petroleum refining, which has allowed us to improve the black oil mixture’s division quality and to raise the vacuum petroleum gas oil extraction depth. We have also renovated the furnace for oxidation gases’ afterburning at the bitumen production unit, in the result of which the enterprise will be able to increase the output of these products. In addition, we have carried out the regeneration of the catalytic reforming unit catalyzer and the cleaning of the heat-exchange equipment at the polypropylene production unit.

A good range of works has also been performed at the catalytic cracking unit, where we have replaced and modernized rectification tower internal devices, and repaired the lining, reactor, regenerator, and the worn-out furnace pipes. Thanks to these works the enterprise has obtained a possibility to extract the lightened fraction catalytic petroleum gas oil and to use it as a diesel fuel component. Such innovation will have positive impact on the petrochemical production economics.

Until the end of the year the Lisichansk Oil Refinery also intends to put a new production installation into operation — a short-cycle adsorption unit. Such unit will allow the considerable reduction in the natural gas consumption, which is used by the refinery as a fuel and the raw materials to produce hydrogen.

In November the CJSC LINIK plans to refine approximately 425 thousand tons of petroleum, 15 thousand tons of black oil, and 10 thousand tons of the straight-run gasoline. Until the end of the current month the refinery is going to produce approximately 120 thousand tons of gasoline and 130 thousand tons of the diesel fuel.

According to the previously informed data, before 2004 the Lisichansk Oil Refinery had been shut down for repairs twice a year, and the principal task had been to restore the normal workability of the equipment after long periods of the enterprise’s standing idle. Thanks to the TNK-BP’s implementation of the development program, in 2004 the oil refinery switched over to the yearly working cycle, and in 2006 — to the two-year overhaul life.

Starting from the year of 2000, the Company has invested more than 350 million US Dollars into the Lisichansk Oil Refinery.  Thanks to these funds, five new production units have been built at the refinery, and the existing ones have been modernized and reconstructed. The previous capital repairs at the Lisichansk Oil Refinery were carried out in October — November 2006.

Reference

TNK-BP is the international vertically integrated holding, ranked among top ten world largest private oil companies on oil extraction.

The Company was established in 2003 as a result of the merger of ÂĐ Company oil and gas assets in Russia and the oil and gas assets of Alpha, Access/Renova (ŔŔR) Consortium.

In Ukraine TNK-BP deals with the crude oil refining and wholesale and retail trading of the petroleum products.

The business of TNK-BP Group in Ukraine is represented by the following key enterprises:

LLC «TNK-BP Commerce» — the managing center, wholesale oil products’ trading at internal and external markets, carrying out of the coordinated investment policy, and ensuring of maximum efficiency in assets’ utilization; 

JV LLC «Kersher» — retail trading of oil products via the network of proper and jobber fuel stations, and fuel stations’ management; and

CJSC «LINIK» (Lisichansk Oil Refinery) — crude oil processing and output of products.

TNK-BP is a responsible and transparent company, one of the strategic objectives of which consists in ensuring of the long-term sustainable development of its business in Ukraine on the basis of the corporate social responsibility principles.

The priorities of the Company’s activities include the establishment of the safe working environment for employees; ensuring of a fair remuneration for their labor and their professional growth; reduction in the degree of the technogeneous impact of production over the environment; and the provision of high-quality products and services to customers.

For further information please contact the LLC TNK-BP Commerce Public Communications Department by phone: +38 044 490-33-81.

Source: Public Communications Department

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