Rus News Journal

Surgutneftegaz strengthens vertical integration

Surgutneftegaz has returned to idea of building new NPZ capacity of 12 million t oil in a year. The FEASIBILITY REPORT of the project in cost $6 billion the next years on processing development " now prepares; Surgutneftegaz can spend $12 billion If all projects planned by the company are realised, it will increase a parity of processing and extraction from present 30 % to more than 50 %. Branch experts consider plans Surgutneftegaz in many respects the answer to an appeal of the authorities to processing increase, but are afraid that realisation of projects will be tightened.
on Saturday has passed annual meeting of shareholders Surgutneftegaz on termination of which the general director of the company Vladimir Bogdanov has told that it plans to construct new NPZ. Factory Kirishi - 2 capacity of 12 million t oil in a year will appear near to already existing only thing NPZ Surgutneftegaz - Kirishinefteorgsintezom . Working out of the FEASIBILITY REPORT of the project in cost of $6 mlrd is already begun. On NPZ it is planned to put complexes gidrokrekinga and kataliticheskogo krekinga therefore depth of oil refining will make 95 - 97 %. In Surgutneftegaz have specified that modernisation " at first will be finished; Kirishinefteorgsinteza that is new NPZ will appear not earlier than 2009.

it not the first statement Surgutneftegaz about plans on expansion of processing capacities. Several years ago the company informed on possibility of building NPZ at coast of gulf of Finland - in Primorske. But in the end of 2006 Vladimir Bogdanov has refused this idea, having explained that the project has proved to be inefficient - Surgutneftegaz Has faced a power supply and water supply problem (oil refining process provides a considerable water consumption). Thus, as mister Bogdanov, " has explained on Saturday; to build NPZ around Kirishi favourably as there there is all necessary infrastructure . And on the Kirishsky state district power station have confirmed that are ready to increase deliveries of the electric power for Surgutneftegaz .

Thus now depth of processing on Kirishsky NPZ makes only 54 %. Half made company of production - black oil. And, for example, at LUKOIL black oil manufacture makes 22 %, and depth of processing - 77,5 %. However, and this situation Surgutneftegaz promises to correct. In the first quarter 2009 Kirishinefteorgsintez intend to put into operation installation gidrokrekinga that will allow factory to increase depth of processing to 85 %, and capacities - to 24 million t in a year. According to mister Bogdanova, for these purposes it will be spent about $2,4 mlrd (earlier it was informed that already about $800 million is spent). And in 2012 the factory plans an installation construction kataliticheskogo krekinga that will allow to increase depth of processing to 97 %. It will manage in $2,8 mlrd if equipment cost does not increase (it was initially supposed that installation gidrokrekinga will cost to factory approximately $1 mlrd).

Desire Surgutneftegaz to increase processing quite explainably - it seriously lags behind on vertical integration (a parity of own extraction and processing) an average on indicator branch. In 2006 the company has processed 20,2 million t oil at extraction in 65,6 million t. Thus, a parity of processing and extraction at Surgutneftegaz makes 30 %. Until recently the worst indicator was only at Rosneft (14 %). But last week the company at sale of actives of YUKOS has got the Angarsk petrochemical company (ANHK) (see from May, 4th) that has allowed it to increase this parity to 37 %. Besides, Rosneft it is considered the basic applicant for three NPZ YUKOS in the Samara region which will be sold on May, 10th. If the winner of auction becomes Rosneft it will allow it to become the leader in Russia on processing. At LUKOIL, the multinational corporation - VR and oil Gazprom level of vertical integration - about 60 %.

Considering plans on a construction new NPZ, total volume of processing at Surgutneftegaz can reach in some years 36 million t oil in a year (vertical integration - more than 50 %), for what it is necessary to pay a minimum $12 billion According to mister Bogdanova, such parity of extraction and processing in the company consider optimum and others NPZ do not intend to build. Foreign NPZ, Vladimir Bogdanov, " marks; Surgutneftegaz do not interest.

branch experts notice that from the point of view of a diversification of business processing increase - rational idea. the increase in volumes of own processing raises profitability of work of the company, - the analyst of MDM - bank Andrey Gromadin has noticed. - if it exports the made oil products pays the smaller duty, than at oil export. Sale of oil products in home market too makes higher profit, than sale of crude oil . As the president and the government already spoke about necessity of increase in volumes of processing by the Russian companies - the analyst of Alpha bank Andrey Fedorov has underlined. At the same time, he has noted, before realisation of these plans can pass more many time. By estimations of mister Fedorova, the new factory usually is under construction about three years, and ` the Surgutneftegaz ` speaks only about a complex construction gidrokrekinga on the NPZ " already much longer;.

; BORIS - GORLIN, St.-Petersburg