Refinery throughputs at the Group’s international refineries
grew by 2.5% in 2007 to 9.61 million tonnes. Total international refinery
throughputs, including processing, were 10.63 million tonnes, which is 4.1% less
than in 2006. The reduction was due to scaling down of deliveries to third-party
refineries outsideRussia by 39.9% due to
redirection of crude oil flows to refineries in Russia. Average
capacity load at the Ploiesti (Petrotel) Refinery
in Romania and at the Burgas
Refinery in Bulgaria was 85.8%, which is slightly
higher than the level in 2006.
Average
refining depth at the Company’s foreign refineries rose to 81.0% in 2007 from
80.4% in 2006. Light product yield was 64.1%, down slightly from 66.1% in 2006,
which was due to unscheduled stoppages of catalytic cracking units at the
Petrotel-LUKOIL Refinery and unscheduled repairs to catalytic cracking units and
distillation unit at the Burgas Refinery. Irretrievable losses were 1.11%. The
share of high-octane gasoline in total output of gasoline at foreign refineries
was 100% in 2007 (as in 2006).
The
highest rates of output growth at international refineries were for jet fuel
(+20.5%) and coke (+13.5%). Production of motor gasoline rose by 1.8%, and
increase of diesel output was 3.5%.
Capital
investments in modernization of foreign refineries were $224 million in
2007.
 Burgas Refinery
(Bulgaria)
At
the Burgas Refinery in Bulgaria construction of a unit for
isomerization of n-butane with 50,000 tonnes annual capacity was completed. Its
launch will increase production of feedstock for the sulfuric acid alkylation
unit at Burgas, raising production potential and enabling greater flexibility in
production of highoctane gasolines (by increasing output of alkylate, which is a
high-octane component) at the Refinery.
Economic effect (NPV) from launch of the new unit exceeds
$70 million.
Odessa
Refinery (Ukraine)
The
Odessa Refinery inUkraine completed the first stage of
reconstruction, which was begun in August 2005. The distillation unit and
various other facilities were rebuilt during this first stage. Test operation
was successfully carried out at the Refinery in 2007. In 2008 the Refinery
completed the second stage of modernization by installation of a visbreaking
unit, which will lower output of fuel oil and raise output of vacuum gas oil.
The Odessa Refinery was put back in operation in April 2008. Modernization of
the Refinery will increase refining depth from 56% to 78%. Economic effect (NPV)
from the modernization is estimated at $87 million.
Petrotel-LUKOIL Refinery
(Romania)
A
25 megawatt power supply unit was commissioned in 2007 at the Petrotel-LUKOIL Refinery in Romania, increasing total installed
generating capacity at the Refinery to 61 megawatts. The new power supply unit
increases reliability of power supplies to the Refinery, fully covering its
electricity and heat needs, and also creates potential for supplies of heat to
meet needs of the city of Ploiesti. The first stage of reconstruction of
the power generating facilities at the Refinery has now been completed. The
overall project also includes construction in the second half of 2009 of a
boiler complex with 245 megawatts heat capacity, fired by petroleum coke.
Petroleum coke is also produced at the Refinery and is considerably cheaper than
fuel oil, which is currently used at the Refinery’s generating
station.
Petrotel-LUKOIL
also commissioned an automated system, which ensures efficient management of
technical processes at various Refinery units and can react in real time to any
changes in the Refinery’s production cycle.
| 
