Maire Tecnimont and Rosneft agree to implement a project at the Ryazan refinery in the Russian Federation

by with No Comment News

Maire Tecnimont S.p.A. announced that it has signed an Agreement of Intent with Rosneft for the implementation of a project related to the “Construction of the VGO Hydrocracking Complex” at the Ryazan Refining Company’s (RORC) production site, approximately 200 km South East of Moscow. 

The agreement was signed on the occasion of the ХIV Eurasian Economic Forum in Verona, in Italy. 

VGO stands for Vacuum Gas Oil, which is produced by vacuum distillation unit in a refinery plant. Rosneft’s subsidiary RORC is one of the largest Russian refineries by volume of refining and production output.

The project’s scope of work entails a full range of works related to the design, supply of equipment and materials, construction, start-up and commissioning, and project finance services.

The VGO hydrocracking complex will enable RORC to increase refining margins by converting heavy petroleum products into Class 5 light commercial petroleum products (gasoline, kerosene, diesel fuel). The complex includes hydrocracking units, hydrogen production units, elemental sulphur production units, and off-site facilities. All equipment has high environmental performance characteristics. The project uses modern, highly efficient technology and equipment with an automated control system to reduce the carbon footprint of the plant.

Rosneft is implementing an unprecedented program to upgrade its refineries, with more than 900 billion rubles (13 billion USD approximately) already been invested to significantly increase production of Class 5 gasoline, diesel fuel and fully meet the needs of the domestic market.

Pierroberto Folgiero, Maire Tecnimont Group Chief Executive Officer, commented: “We are really honored to put for the first time at Rosneft’s service our technological know-how as well as our engineering and construction capabilities for this strategic initiative to unlock greater value through the transformation of natural resources, while ensuring best environmentally performing standards. This achievement with a prestigious client such as Rosneft let us further consolidate our very strong track record in the Russian Federation, a market currently showing really significant investment trends in downstream”.

Source: Maire Tecnimont

108

Rosneft Prepares to Lead Massive $157 Billion Arctic Oil Project

by with No Comment News

Rosneft is preparing to lead an Arctic oil field development project that will cost an estimated $157 billion (10 trillion rubles).

Reuters quoted Russia’s Deputy Energy Minister Pavel Sorokin as announcing the price tag of the Vostok Oil project to media last week, adding that the Kremlin had already agreed on a tax relief package that would help with the Artic oil and gas push.

The Vostok Oil project will include already producing fields as well as untapped ones, and Rosneft will develop them along with partner Independent Petroleum Company. The tax relief for this project alone could reach some $940 million (60 billion rubles) annually, the chief of the tax department of Russia’s Finance Ministry said.

The tax relief package for the energy industry has been the subject of heated debate in political circles because at the same time that the Kremlin is lending its generous support for oil and gas, it is hiking other taxes, on citizens, and extending the retirement age as part of a delayed and highly unpopular retirement system reform.
Alexei Sazanov, the head of the tax department at Russia’s finance ministry, told reporters at the same event on Friday that tax benefits for Vostok Oil could cost up to 60 billion roubles per year. The comments by Sorokin and Sazanov were embargoed until early on Monday.

Russia’s budget surplus, projected at 1.7% of gross domestic product this year, is expected to shrink to 0.2% in 2022, partly due to the various supports offered to the energy sector, a cornerstone of budget revenue.

Source: https://www.rosneft.com/

116

Rosneft and Pertamina JV signed a contract with Tecnicas Reunidas to carry out the FEED project for Tuban Refinery, Indonesia

by with No Comment News

PT Pertamina Rosneft Pengolahan dan Petrokimia, joint venture of PJSC Rosneft Oil Company and Indonesian state oil and gas company Pertamina, signed a contract with Spanish Tecnicas Reunidas SA to carry out the Basic Engineering Design (BED) and the Front-End Engineering Design (FEED) project for the construction of oil refinery and petrochemical complex in Tuban (East Java, Indonesia).

PT Pertamina Rosneft Pengolahan dan Petrokimia joint venture was established according to the agreement signed in October 2016. Rosneft owns a 45% stake, Pertamina – 55%.

The favourable market environment and the consumption growth prospects in Indonesia allowed the joint working group of Rosneft and Pertamina to develop a competitive conception of refinery/petrochemical complex. The plant is expected to become one of the most high-tech in the world (Nelson’s complexity index 13.1). Design capacity of primary processing is planned at the level of up to 15 mmta, of the petrochemical complex – more than 1 mmta for ethylene and 1.3 mmta for aromatic hydrocarbons.

The project will receive the full support of the Indonesian authorities, both in terms of the necessary benefits and the provision of the infrastructure. Commissioning of the refinery/petrochemical complex is planned for the next 5 years. Due to the implementation of the project, a large new petrochemical cluster in the region of the city of Tuban can be created in the future.

The project is a significant element of Rosneft’s strategy to strengthen its presence in the high-margin market for petroleum-based products in the Asia-Pacific Region. The construction of the plant will strengthen the Company’s position in the Indonesian consumer market and confirm its status as a reliable partner in oil and gas production and refining projects in the region.

Source: https://www.rosneft.com/