Lisichansk Oil Refinery Acknowledged as Best TNK-BP Refinery
29 Sep 2006

In 2006 Lisichansk Oil Refinery (JSC LINIK) was acknowledged as the best oil processing enterprise belonging to the International holding TNK-BP. On the eve of 30-th anniversary of the plant TNK-BP President Robert Dudley congratulated the team and highly appreciated achievements of the Ukrainian team. From 2000 through 2006 thanks to joint efforts of the investor and plant’s managers Lisichansk Oil Refinery launched production of high-octane gasoline А-98 and fuel for jet motors ТS-1, road and roof bitumen. The loading of primary oil processing unit grew more than twice up to 85%, the processing depth increased by 2% and reached 67%. So, Lisichansk Oil Refinery became the first and the only one oil refinery in the country which manufactures more gasoline than black oil. After launching of isomerization unit in 2005 the share of high-octane fuel in light oil products grew by 26%.

 «In the next five years TNK-BP intends to invest in development of the plant about $300 mln, – informed LLC TNK-BP Ukraine President Sergey Lizunov. — The funds will be directed to improvement of quality of the manufactured products, operating safety and ecological programs, measures on increasing of oil processing depth. We shall increase effective use of the refinery’s assets and shall make the production process more flexible».

Already in the current year TNK-BP will invest in LINIK about $40 mln against $26 million in the last year. In 2007 – about $60 million

«From January 1, 2007 we shall be ready for production of diesel fuel based on standard EURO-4 (with reduced sulfur contents 50 ppm), and from the second quarter 2008  – based on standard EURO-5 (10 ppm). This is fuel of European quality which will be exported outside the country. With the time LINIK will start production of aviation kerosene based on International Specification JET A-1», – noted Sergey Lizunov.

Modernization of LINIK does not presuppose long-term shutdown of the enterprise. Furthermore, after completion of the scheduled repair in November 2006 the oil refinery can be stopped once it two years, though still in 2004 it should have been stopped every six months.

According to Head of Oil Processing Support Department LLC TNK-BP Ukraine Sergey Denisov, the ecological standards concerning the oil processing in TNK-BP are tougher than the Ukrainian ones. Therefore one the biggest project, being realized today by the investor at the Lisichansk Oil Refinery is construction of biochemical treating of sewage. It costs about $11 million. It is planned to commission this nature-conservative installation in the first quarter 2007. This will allow to increase reliability and effectiveness of plant’s sewage disposal facilities, to reduce contents of hazardous substances, prevent risk of pollution of water basins.

Reference

In 1976 Lisichansk Oil Refinery named after 60-th Anniversary of USSR (namely this was the name of LINIK in remote 70—ies) processed the first 1800 tons of oil and manufactured the first litre of gasoline. Completion of production facilities at the Lisichansk oil refinery went on another two years and it was added to the list of acting refineries only in December 1978. However, enterprise’s birthday is believed to be the moment when dessalter unit АWТ-6 for the first time manufactured the oil products on October 17, 1976.

At the beginning of the 90—ies the enterprise held one of the leading positions in the domestic oil processing industry. So, in 1990 the oil refinery processed 21.7 million tons of oil, and in 1991 set a personal record, having processed 23.7 mln tons of crude oil. However, after collapse of the ex-USSR this figure has been reducing drastically and from 1994 the amount of annual oil processing did not exceed 4,7 million tons.

In 2000 the enterprise faced another period of progressive development, which is going on until today. On July 18, 2000 the daughter enterprise of the Tumen Oil Company — Company with Foreign Investments «ТNК-Ukraine» — and State Property Fund of Ukraine signed in Kiev a sales agreement for the controlling stock (67,41%) of Open Joint Stock Company Lisichansknefteorgsintez (sales contract #  271 from July 18, 2000).

After this strategic investor came to the refinery it turned from an outsider into the leader of the oil processing industry in Ukraine. Being part of International Holding TNK-BP the refinery secured for itself a rank of leader in the branch which works using advanced achievements in management and production technologies.

Today Closed Joint Stock Company LINIK is a powerful enterprise not only in Ukraine but as well in the whole Eastern Europe. The oil refinery employs almost 5 000 employees. Among the main oil products manufactured by the refinery are unleaded motor gasoline А-80, А-92, А-95, А-98; diesel fuel with sulfur contents up to 0,2%; winter diesel fuel with sulfur contents up to 0,2%; fuel for jet motors ТS-1; furnace black oil; ethylene; polypropylene; carbureted hydrogen liquefied gas for general consumption; goudron; lump sulphur, bitumen.

TNK-BP

TNK-BP is a major, vertically integrated Russian oil and gas company. In 2010, average daily oil production totaled 1.74 million barrels per day (excluding a 50% interest of Slavneft). TNK-BP operates five refineries (four in Russia and one in Ukraine) and nearly 1,490 branded retail outlets across both countries.

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