The second Catalytic Cracking Complex of vacuum gas oil (CCC-2) has been commissioned at the LUKOIL-Nizhegorodnefteorgsintez refinery (a fully owned subsidiary of PJSC LUKOIL) in Kstovo (Nizhny Novgorod Region) today. Dmitry Medvedev, Prime Minister of the Russian Federation, Mikhail Babich, Presidential Plenipotentiary Envoy to the Volga Federal District, Valery Shantsev, Governor of Nizhny Novgorod Region, and Vagit Alekperov, President of PJSC LUKOIL, took part in the ceremonial launch.
Construction of CCC-2 began in 2010 following the launch of the first Catalytic Cracking Complex that allowed LUKOIL-Nizhegorodnefteorgsintez to switch to production of Euro-5 class fuels.
The launch of CCC-2 will increase the production of Euro-5 class fuels by 1.1 million tons (the annual production of the refinery is currently 3 million tons). Production of propylene, raw material for petrochemistry, will increase nearly twofold, up to 300 thousand tons per year. The investments in the project came to USD 1 billion.
Therefore LUKOIL completed the obligations under the quadruple agreement between the oil companies, the Federal Antimonopoly Service of the Russian Federation, Rostechnadzor and the Federal Agency on Technical Regulating and Metrology.
Specialists of several Russian companies participated in the construction of CCC-2. The engineering design was made by LUKOIL-Nizhegorodniinefteproekt (Nizhny Novgorod), CJSC Neftekhimproekt (Saint Petersburg) and JSC Giprogazoochistka (Moscow) while assembly and installation operations were performed by PJSC Globalstroy-Engineering (Moscow), OJSC MMUS and CJSC KXM (Moscow).
PJSC LUKOIL reports that on the 22nd of September 2015, the district tribunal of Prahova (Romania) decided to adjust the amount of damages allegedly caused by S.C. PETROTEL LUKOIL S.A. PLOIESTI and LUKOIL EUROPE HOLDINGS BV and some of its employees. The charges were brought by the Prosecutors’ Office under the Chamber of Appeals of the city of Ploesti.
On the basis of the Prosecutor’s notes to the previously submitted calculations, the injunctive measures applied upon S.C. PETROTEL LUKOIL S.A. PLOIESTI were reduced to less than a third.
Romanian tax authorities have also completed the audit of PETROTEL LUKOIL in the sphere of local taxes (including property tax, land tax, etc.) due for the period from 2010 to the first half of 2015. The tax audit established that in general PETROTEL LUKOIL pays the local taxes on time, in full and in conformity with the law.
LUKOIL has cumulatively produced 30 billion cubic meters (bcm) of natural gas at its projects in Uzbekistan. Most of this (about 85%) comes from the Khauzak-Shady field in the Bukhara Province.
Commercial gas production at the Khauzak-Shady field started in November 2007. In 2011, the West Shady site was put into operation. In 2014, a booster compressor station was started up at the field, allowing for a 20% increase in production. In May 2015, test operation of the Gas Pretreatment Plants began at the Kuvachi-Alat field of the Kandym Group of Fields and the Northern Shady site of the Dengizkul field as part of the Kandym Early Gas Project. To date, cumulative production at the Khauzak-Shady field exceeds 25 bcm.
Natural gas production under the Southwest Gissar Project began in December 2011. In spring 2013, the Gissar Full Development Project entered the execution phase. Major construction projects include a Field Support Base, Gas Pretreatment Plant with an annual capacity of 1.8 bcm, and Gas Treatment Plant with a capacity of up to 5 bcm per year. So far, cumulative production at the Gissar field has amounted to about 5 bcm.
LUKOIL has been implementing major investment projects in Uzbekistan since 2004 jointly with National Holding Company Uzbekneftegaz. To date, LUKOIL is the country's largest foreign investor.
The Tashkent branch of Gubkin Russian State Oil and Gas University hosted an international conference on petroleum industry personnel training today.
LUKOIL Uzbekistan Operating Company (the Operator of PJSC LUKOIL's exploration and production projects in Uzbekistan) sponsored the forum in collaboration with National Holding Company Uzbekneftegaz and the Tashkent branch of Gubkin Russian State Oil and Gas University.
The conference discussed current petroleum personnel training methods and technologies as well as existing training opportunities for workers and engineers in Uzbekistan. Participants also outlined the personnel demand from petroleum entities inUzbekistan for the next ten years with respect to the major hydrocarbon production investment projects ahead.
"As a responsible investor LUKOIL strives to contribute to the development of the petroleum industry personnel training system. Uzbek citizens comprise over 85% of the headcount at LUKOIL Uzbekistan Operating Company, so we are keen to widen the training offerings for local staff and support our projects with skilled employees in the long term," – said Anatoly Moskalenko, Vice President for Human Resources and Organizational Development of PJSC LUKOIL.
LUKOIL is realizing major gas production projects in Uzbekistan in collaboration with Uzbekneftegaz. The current headcount at LUKOIL Uzbekistan Operating Company is 1600. It is expected to increase above 3500 at the peak of investment projects.
On September 12, PJSC LUKOIL held a festive ceremony dedicated to the 30th anniversary of its backbone towns of Langepas and Kogalym.
Vagit Alekperov, PJSC LUKOIL President, and Nataya Komarova, acting Governor of Yugra, together with Langepas residents, participated in the opening ceremony of the “Newlyweds Garden,” constructed as part of the Cooperation Agreement between the oil company and the government of KhMAO-Yugra. The garden features a distinctive Altar of Hymen depicting a two-meter statue of newlyweds, a tree of happiness and a bridge for the enamored.
Among the honored guests of Kogalym were Igor Kholmanskikh, authorized representative of the Russian Federation President for the Urals Federal District, Sergey Sobyanin, Mayor of Moscow, who from 1991 through 1993 was Head of the Kogalym administration, Vladimir Yakushev, Governor of the Tyumen Region, and Dmitry Kobylkin, acting Governor of the Yamalo-Nenets Autonomous District.
To celebrate the anniversary, LUKOIL and the government of Yugra presented Kogalym with a new healthcare center featuring cutting-edge medical equipment and a 16-storey residential building with 118 apartments with a total area of nearly 10,000 square meters.
Vladimir Putin, President of the Russian Federation, sent a congratulatory address to the residents of Langepas and Kogalym celebrating a jubilee.
“It is quite symbolic that three wonderful towns of the Khanty-Mansi Autonomous District are now celebrating their anniversaries. Urai turns 50, while Langepas and Kogalym are 30. Constructed through the selfless labor of geologists, builders, engineers and workers, they are rapidly developing and are rated among the more comfortable Russian towns,” President Putin commented.
“It is a great pleasure for me to be here today sharing the joy with the residents of Langepas, Urai and Kogalym, as through our joint efforts we constructed these towns, giving life to our company. They served as a foundation for the 'LUKOIL corporate style' recognized today all over the world. It is a style of high professionalism and responsibility, discipline and order, as well as a unique attitude towards one’s place. We succeeded in turning these West Siberian towns into most beautiful and comfortable places for life and work”, Mr. Alekperov said.
“Sometimes we hear claims that it is quite easy to pump oil from underground and to create a prosperous company in this business. However, those who think so do not have the slightest idea of the oil and gas industry and cannot imagine the price we have to pay for each ton of oil and cubic meter of gas, particularly in West Siberia. Actually, hydrocarbon production is a high-tech manufacturing process that requires a combination of scientific, production and managerial skills along with a smart personnel strategy and profound concern for people. It is exactly what LUKOIL has done, and this is the secret of its success”, Igor Kholmanskikh noted.
“The towns, now celebrating their anniversaries, became the home, the destiny and the center of efforts and talent for nearly 150,000 Yugra residents. The pace set by the town-forming company LUKOIL finds its reflection in all spheres of the town life, thus enabling them to rapidly and dynamically develop and populate towns which have become some of the most comfortable in the Russian Federation. I am firmly convinced that this process will continue, since for us Yugra and all its towns and settlements are the home and the main business that always remains in our hearts”, Natalya Komarova said.
“I am glad that today my hometown, Kogalym, is considered one of the most comfortable towns of Russia. It has changed its appearance, turned into a most comfortable place despite such a severe climate. We completely deserved the right to take pride in this success, since each resident of Kogalym contributed a particle of their labor to this success”, Sergey Sobyanin noted.
“Inspiring respect are the social policy of the oil company, its implementation of socially important and charitable programs and infrastructure development in cooperation with the towns’ administrations. However, whatever the town has become, it owes to its residents. And Kogalym today is rich in talented and ambitious people. It is a good foundation for the future”, Vladimir Yakushev said.
“The history of your town is inextricably intertwined with the development of Western Siberian mineral resources, with the discoveries of ‘black gold’ deposits on the land of Yugra – that led to establishment of the national oil industry and one its flagships, LUKOIL company. Today it is one of young Yugra towns with comfortable conditions for living and working. Remarkable and outstanding people live here – those whose efforts and achievements are increasing the labor merits and honorably keeping on with the traditions of the legendary explorers and groundbreakers”, Dmitry Kobylkin said.