The 25-th Jubilee of the Oldest Refinery in Russia. On August 31 Krasnodar refinery, the oldest in Russia, celebrated its 95the jubilee.

The first Russian Refinery

The history of Krasnodar Refinery tracks back to the beginning of the XX century. According to Dmitry Mendenleyev, discovery of rich oil fields in Krasnodar Terriotory promised to make Kuban Peninsula “the second California”. Growing production made the businessmen seriously consider the fact that it would be much more profitable first to refine the produced oil and after that deliver it to the points of destination. It was then that the idea of constriction of the first Russian refinery, the future proud of the Territory, first came up.

The refinery was opened in 1911.  The first products – gasoline distillate and ligroin – were almost fully exported. The working conditions of the 45 workers of the refinery were very hard:  the refinery was located at the suburb, in a swampy place, the manufacture was hazardous, fires and floods occurred quite frequently. During the Great Patriotic War the refinery was blown up by the Soviet troops retreating from Kuban. But by Victory Day the refinery, restored from ashes by heroic efforts of the workers,  started production again.

At the Soviet times Krasnodar Refinery and Afibsky gas processing plant were included in “Krasnodarnefteorgsintez” (KNOS) In 1990 KNOS was incorporated in the state-owned company “Rosneft”. And in 1991 Krasnodar Refinery was transferred to ownership of Russian-Austrian JV “Krasnodareconeft”, where its interest amounted to 31%. (Another 20% were owned by Kuban Ecological Scientific and Manufacturing Plant “Sirius”, and 49% belonged to  Austrian company GMB Handels GmbH.)  In the 90ths , however, supplies of raw stock to the refinery were drastically reduced and the plant suffered hard time. In 1996 KNOS was declared bankrupt. And in 1998 Arbitration Court of Krasnodar Terriotory declared Krasnodar refinery bankrupt as well (for its indebtedness to Federal Budget in amount of 355 million rubles) The rights of shareholders, including “Rosneft” in regard of the refinery were terminated. ZAO “Atlas”, a regional oil trader, became the main shareholder of ZAO “Krasnodareconeft”, having purchased the Austrian share and controlling the remaining 20% through affiliated companies. 

In the end of 2005 the controlling  interest of Krasnodar Refinery was purchased by Oil and Gas Company “RussNeft”.  “Krasnodar Refinery”, said President of “RussNeft”, Mikail Gutseriev, “as well as Orsknefteorgsintez is the basis for developing processing complex of the holding.”  It meant that the new owner was not only going to “sweep clean”, but to supply oil to the refinery, which suffered from the shortage of it in post-Soviet times.

Technological achievements of the refinery

In 1950 a new atmospheric-vacuum pipe plant was installed at the refinery which made it possible to produce:
• liquefied gas
• gasoline fraction
• straight run kerosene
• components of diesel  and motor fuel
• solar oil
• straight-run fuel oil
• tar

In 1951 BU-1 plant was brought into action. And in 1961, when demand for bitumen increased, the first in the Soviet Union reactor plant BU-2, consisting of two blocks, was put into operation. It was developed and introduced by the Chief Engineer of the refinery Alexander Matveichev and the Chief Mechanic Arkady Lopatinski. At the same time, in 1961, two additional dispensers for BU-2 were mounted.

In 1976 one of the shops of the refinery produced upgraded bitumen for the first time in Russia.

In 1956 extracting plant for the refinery was designed and constructed.

In 1992 the Russian-Austrian Joint Venture “Krasnodareconeft” reconstructed the plant AT2. And in 1994 the filling hoses of the loading rack were reconstructed.

In 2000 new systems for measuring levels control of daily oxygen yield at BU3 and a new unloading pipeline were introduced at the refinery.

Reconstruction and introduction of the latest achievements of technological progress kept up during all the period of existence of the refinery, but the most significant renovation began in the 2000-ths. At the refinery there were installed new modern pumps, instrumentation and automatic control systems which permit to mind technological mode more precisely. Technological losses are reduced due to additional air-cooling condensers- refrigerators.

Nowadays

The existing processing units provide wide range of products, including:
• straight-run gasoline fractions
• summer gas oil
• furnace oil
• sodium naphtenate

Krasnodar refinery is the only one in Russia to carry on the state order for supply of T-1 high density jet fuel.

Re-equipment of the refinery, which began a few years ago, is being carried on and its aim is to increase industrial and ecological safety of the production. From 2001 t0 2005 the investments into development of the production basis and renovation of the capital assets amounted to 675 million rubles and in 2006 it is planned to allocate for these purposes about 521 million rubles, which exceeds the figures of 2005 more than twice.

In 2006 it is planned to finish reconstruction of:
• atmospheric-vacuum pipe plant, including reconstruction of the atmospheric distillation block and change of K-2 column;
• vacuum creating unit of the column k-3 and oil preparation block;
• rectificate cooling block of the columns K-1, K-2 –
which will permit to increase the cost-performance ration of the plant, to reduce hazardous emissions to atmosphere and the quantity of backwater.

For these purposes “RussNeft” is planning to allocate more than 78 million rubles.

Modernization of atmospheric pipe plant AT-2 in complete with oil preparation block is also going on. The estimated cost of the works is about 55 million rubles.

Reconstruction and re-equipment of the bitumen plant BU-3 is planned too. (Its modernization will cost about 2 million rubles.)

The refinery coordinated with the administration of the Territory the plan of actions for reduction of hazardous emissions to atmosphere and amount polluting substances discharged with the refinery’s waste waters to bodies of water. According to this plan in 2006 the following works will be carried out:
• equipment of gasoline reservoirs with pontoons;
• pre-project revision of reconstruction of disposal facilities;
• construction of a protecting drainage ditch for catch of oil products and prevention of their getting into the river Kuban along with ground waters from production sites of the refinery.
Besides, reconstruction of reservoir parks is planned, including both construction of new reservoirs and additional furnishing or the existing ones (financing will amount to 197 million rubles).

The new equipment, representatives of the refinery say, is furnished with modern control devices which, upon completion of the reconstruction, will become parts of the integrated automated control system, which will permit to increase reliability of the work process and to minimize the influence of human factor.

In “RussNeft” they say that modernization of Krasnodar refinery is next to the largest-scale investment program implemented by the holding. The company is sure that modernization of the refinery and procurement of high production ratio will provide “RussNeft” with high and stable profits.

Editor’s reference

In 2005 the amount of sales of Krasnodar refinery equaled 2.4 billion rubles and its net profit amounted to 232 million rubles.

In the first half of 2006 ZAO “Krasnodar Refinery – Krasnodareconeft” increased production of straight-run gasoline as compared with the period of January-June of 2005 by 60.4% - up to 240.8 thousand tons. According to the information of  Vice President of “RussNeft” for public relations, Mr. Eduard Sarkisov:

• production of  gas oil at Krasnodar refinery increased by 1.1% - up to 339.9 thousand tons;
• paving petroleum bitumen – by 7.5% up to 7/5 thousand tons;
• production of fuel oil reduced by 62% - to 459 thousand tons.

During the reporting period the refinery also produced 10/1 thousand tons of high density jet fuel.

On the whole in the first half of 2006 the plant refined 1.13 million tons of oil.