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Refining & Petrochemicals

PJSOC Bashnefts refining complex comprises three refineries with a total capacity of 24.1 million tonnes per year: Bashneft Ufaneftekhim
Bashneft Ufaneftekhim
Capacity: 9.5 million tonnes.

Products: high-octane gasoline, low-sulphur diesel fuel, boiler fuel, bitumen, coke, lump and granulated sulphur, liquefied gases, benzene, orthoxylene and paraxylene.
Bashneft Ufaneftekhim is one of the largest refineries in Russia, it uses advanced technologies and specializes in refining several types of hydrocarbons (West Siberian oil, a high-sulphur oil blend from the Arlanskoye field andgas condensate) producing various fuel grades and petrochemicals.
Bashneft Ufaneftekhim has fuel, gas catalysis, goods production and service units and aromatic hydrocarbons production. Tens of technological units operate at the refinery, including practically all units ensuring a high rate of crude oil refining depth (delayed coking, hydrocracking, catalytic cracking, deasphalting, visbreaking, bitumen production).
, Bashneft-UNPZ
Bashneft Ufimsky refinery plant
Capacity: 7.5 million tonnes

Products: high-octane gasoline, diesel fuel, boiler fuel, liquefied gas, liquid and lump sulphur, bisphenol A.
Bashneft Ufimsky refinery plant is one of the most up-to-date oil refineries in Russia which can produce a wide range of high-quality petroleum products.
The technological workflow of the refinery ensures complex and deep oil refining using highly efficient thermic, catalytic and hydrogenation processes. The refinerys modern technological equipment produces Euro-4 and Euro-5 fuels, boiler fuel as well as a wide range of liquefied gases.
To achieve 100% output of Euro-4 and Euro-5 automobile gasoline, a catalytic cracking gasoline hydrotreater for removal of sulphur compounds is being constructed at Bashneft Ufimsky refinery plant. In the future the plant plans to construct a delayed coker which will enable to achieve a refining depth of 95%.
and Bashneft Novoil
Bashneft Novoil
Capacity: 7.1 million tonnes

Products: gasoline, jet fuel, diesel fuel, engine, transmission and other special oils, vacuum gas oil, paraffin-wax products, oil bitumens, boiler fuel, coke, lump sulphur
Bashneft Novoil is one of the biggest producers of high-quality petroleum products in Russia. The current production facilities of Bashneft Novoil include primary oil refining, hydrotreatment, reforming and iso-reforming, sulphuric acid alkylation, thermocracking and visbreaking, coking and gas fractionation, solvent refining and dewaxing of oil distillates, tar deasphalting and bitumen production, gas desulphurization and sulphur production units as well as environmental facilities.
The flexible technological schemes refine various types of hydrocarbons  low- and high-sulphur crude oil, various gas condensates as well as medium and heavy distillates obtained at other refineries of Ufa Group  and produce a wide range of high-quality petroleum products.
In 2011, the refinery continued to produce Euro-3 and Euro-4 engine fuels. It is planned to start producing Euro-5 fuel in the near future.
. Bashnefts refineries are characterized by the highest share of light products and refining depth in the industry. The Group accounts for over 12% of domestic sales of gasoline and about 6% of domestic sales of diesel fuel.

The refineries are adjacent to each other and closely cooperate as a single processing complex. This enables the Group to select the best refining configuration and maximize the economic impact.

Due to its flexible configuration, Bashnefts refining complex can process various types of hydrocarbons: low- and high-sulphur oil, various types of gas condensate, medium and heavy distillates produced in the course of cooperation between the refineries.

Bashnefts refining complex includes a wide range of modern high-technology process units; as a result, the Group has the highest Nelson Index in the industry (9.1).

A delayed coker, sulphuric acid alkylation and sulphuric acid regeneration units, a catalytic cracking gasoline hydrotreater and a hydrogen production unit commissioned over the last few years have enabled the Group to become an industry leader in terms of refining depth (85.8%) and the share of light products (68.0%) and to ensure the feasibility of producing 100% of fuel to the Euro 5 standard in accordance with the Technical Regulations.

One of the largest aromatic hydrocarbon production complexes in Russia processes straight-run gasoline into benzene, paraxylene, orthoxylene and toluene, which play an important role in petrochemical production.

In order to improve the organizational structure, in 2013 we centralized management of the three refineries and introduced uniform principles and standards. This helped to improve the organization and production efficiency and enhance business process transparency.

Key refining indicators


2013 2014 2015
Crude oil distillation capacity, million tonnes per year 24.1 24.1 23.2
Oil refining per year, million tonnes 21.4 21.7 19.1
Utilization rate 88.9% 90.0% 82.3%
Total refinery output, million tonnes 19.6 19.9 17.7
Refining depth 84.7% 84.8% 85.8%
Share of light products 60.4% 61.1% 68.0%
Nelson Index 8.8 8.9 9.1

In 2015, Bashnefts refining complex in Ufa processed 19.1 million tonnes of oil (140 million barrels), which was 11.7% less than in 2014. At the same time, the output of gasoline and diesel fuel remained at the level reached in 2014. Flexible approach to use of the production capacities enabled the Group to maximize the product mix value under the currently existing macroeconomic and tax environment due to increased output of light petroleum products In this regard, the refining depth increased to 85.8% and share of light products amounted to 68%.

Product mix of Bashneft Groups refining complex, million tonnes


2013 2014 2015 Change, 2015 vs. 2014, %
Diesel fuel 7.48 7.49 7.43 -0.8
Gasoline (including SNG) 4.88 5.00 4.95 -1.0
Fuel oil 2.97 3.05 2.52 -17.6
VGO 1.76 1.65 0.19 -88.4
Other 2.57 2.74 2.63 -4.2
Total (commercial petroleum products) 19.65 19.94 17.71 -11.1

In 2015, the refining complex produced 17.7 million tonnes of petroleum products. An 11.2% decline over 2014 was mainly due to an increase in operational efficiency and a reduction in the output of low-margin products (fuel oil and VGO).

Our product mix consists predominantly of diesel fuel (42%) and gasoline (28%). Despite a decline in refining, the output of main types of light products remained almost unchanged compared to 2014: gasoline production totalled 4,953 thousand tonnes, while the output of diesel fuel amounted to 7,426 thousand tonnes.

Motor gasoline production by grade

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Diesel fuel production by grade

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Furthermore, in 2015, 95.7% of produced motor gasoline and almost 100% of diesel fuel met the Euro 5 standard, compared to 90.7% and 36.0% respectively in 2014. Euro 3 and Euro 4 gasoline accounting for 4% of the total output was produced in order to meet the needs of the Kazakhstani market.

At the same time, in 2015, Bashneft continued to reduce the output of low-margin heavy petroleum products: the output of vacuum gas oil fell by 88.4% year on year (to 0.19 million tonnes), while the output of fuel oil decreased by 17.6% (to 2.52 million tonnes).

In addition, according to the renewed strategy, Bashneft has been developing production of niche products, such as jet and marine fuels and lubricants, which have a high potential for growth of domestic demand.

In 2015, the output of niche products declined by 4%, while their share in the total output of petroleum products increased to 15%. Structure optimization is aimed at maximizing economic performance in the current macroeconomic environment.

Production of niche and additional products, million tonnes

Product 2013 2014 2015 Share in 2015
Jet fuel 0.22 0.2 0.10 4%
Low-viscosity marine fuel 0.09 0.3 0.29 11%
Lubricants 0.18 0.17 0.17 6%
Bitumen 0.39 0.4 0.38 15%
Petroleum coke 0.82 0.83 0.82 31%
Industrial sulphur 0.22 0.23 0.24 9%
Others 0.65 0.62 0.63 24%
Total 2.57 2.75 2.63 100%

Refinery upgrades

Despite being a leader in the oil refining segment, PJSOC Basheft continues to invest in upgrading its refining capacities, as it rightly believes that modernization helps to make the Company more competitive.

Major upgrade projects completed in 2014

Construction of sulphur recovery unit train 5 at Ufaneftekhim In June 2015, elemental sulphur recovery unit was placed in operation at Ufaneftekhim (train 5).

The unit should help reduce negative impact of the production operations on the environment by utilizing sulphurous gas with a hydrogen sulphide degree sulphur conversion into sulphur at least 98%.
Construction of a treated recycled water cooling plant for the catalytic cracking complex The project implementation in June 2015 made it possible to increase the catalytic cracking complex loading to design level by improving the process stream cooling efficiency through the use of lithium bromide absorption refrigerating machines.

This resulted in an increase in the output of target products such as diesel fuel, light catalytic gas oil, propane-propylene (PPF) and butane-butylene fractions (BBF).

Key refinery upgrade projects up to 2019

Name Goal Expected completion date
Ufaneftekhim CDU/VDU construction

Construction of one up-to-date unit to replace three obsolete ones with performance capacity equal to their aggregated capacity should allow improve the refinery energy efficiency and operating reliability.
20162021
UNPZ Construction of a delayed coker

Construction of a delayed coker is aimed at increasing the oil refining depth: refining of heavy petroleum residues to yield light petroleum products, coke, PPF and BBF.
20142020
Ufaneftekhim Aromatic hydrocarbons production complex upgrade

The project should raise the commercial production of paraxylene up to 260 thousand tonnes per year and should also have positive impact on the energy efficiency of the complex.
20142017
Ufaneftekhim Upgrades of the biological wastewater treatment facilities

The environmental project is intended to improve the quality of treated wastewater discharged into the Belaya river.
20122017
Ufaneftekhim Construction of the oil sludge processing plant

The project is intended to minimize the negative impact on the environment from the waste recycling and disposal of accumulated and newly generated oily wastes.
20142018
UNPZ Construction of train 5 of the sulphur recovery unit

The project is intended to reduce negative impact of the production operations on the environment. The sulphur recovery unit should help increase utilization of sulphurous gas with a degree of H2S-to-sulphur conversion efficiency reaching 99.5% and should create spare capacity for hydrogen sulphide utilization for future development projects.
20142017
Construction of train 6 of the sulphur recovery unit 20162018

Petrochemicals

In 2013, under a resolution of the Board of Directors, JSOC Bashnefts key petrochemical assets (including OJSC Ufaorgsintez) were consolidated within JSC United Petrochemical Company (UPC). Later, as part of non-core asset divestment process, Bashnefts Board of Directors resolved to sell all shares in JSC UPC held by Bashneft to OJSC JSFC Sistema. However, the deal was not completed, and JSC UPC passed into the ownership of JSOC Bashneft once again in October 2014.

Petrochemical assets traditionally form part of Bashnefts production complex.

Bashnefts petrochemical complex includes:

  • PJSC Ufaorgsintez,
  • LLC Tuimazinskoye Gas Processing Plant,
  • LLC Shkapovskoye Gas Processing Plant.

The petrochemical assets also include the aromatic hydrocarbon production facility of the Bashneft-Ufaneftekhim Branch.

Petrochemical production, thousand tonnes


Petrochemical commercial production, thousand tonnes


2013* 2014** 2015
Liquefied petroleum gases 84.3 117.2 149.5
Polypropylene 119.4 120.9 130.7
Paraxylene 128.5 112.0 112.05
High-density polyethylene 95.1 85.5 100.1
Phenol 73.4 69.7 76.9
Acetone 45.9 43.6 48.2
Orthoxylene 48.5 51.2 46.42
Bisphenol A (diphenylolpropane) 27.2* 39.5 44. 5
Ethylene 16.9 27.1 27.9
Others 110.52 137.3 115.0
Total 749.7 804.0 851.3

* Diphenylolpropane production is part of operations of OJSC Ufaorgsintez starting from July 1, 2013
**The figures presented in the table show the output of petrochemicals for the full year, not only for the period when JSC UPC was owned by Bashneft

Currently, the Group is implementing a range of measures to improve the performance of the petrochemical complex, streamline the management structure and update the project portfolio.