Eco-Fact PETROTEL-LUKOIL Deputy General Manager Dan Danulescu 24.11.2010
2 OVERVIEW OF LUKOIL by FACTS To get AN OVERVIEW OF LUKOIL COMPANY, (our Refinery, S.C.PETROTEL-LUKOIL S.A., belongs to), we can say that: No. 14 among 100 largest oil companies worldwide by NET PROFIT; No. 21 among 100 largest oil companies worldwide by SALES; No. 20 among 100 largest oil companies worldwide by ASSETS; No. 8 among European energy companies; No. 12 among 250 biggest energy companies worldwide according to Platt's; No. 69 among 2 000 largest companies worldwide according to Forbes; No 2 among largest Russian companies. LUKOIL is the 3rd largest privately owned oil&gas company in the world by OIL PRODUCTION., the 5th largest privately owned oil & gas company in the world by HYDROCARBON PRODUCTION. Last but not least, LUKOIL was set up in 1991, a young company which unites 3 OIL PRODUCING ENTERPRISES (Langepasneftegaz, Urayneftegaz, Kogalymneftegaz, i.e. LUK) and 3 OIL REFINERIES (Perm, Volgograd, Novoufimsk).
3 REFINERIES OF LUKOIL Refining and marketing is LUKOIL second major business segment. Today LUKOIL includes 4 major refineries and 2 mini-refineries in Russia, as well as 3 refineries abroad in Ukraine, Bulgaria and Romania and shares in a refinery complex in Italy and refinery in Netherlands. The total annual capacity at the beginning of 2010 of all refineries was 71.5 mln tons of crude oil per year. located in Ploiesti was taken over by LUKOIL in 1998. Its current capacity is 2.4 mln tons per year.
4 REFINING STRATEGIES SEEN BY LUKOIL Maximizing refinery throughputs Production of high quality, environmentally friendly petroleum products Use of latest technologies Control over production costs EcoFact: In 2005 LUKOIL became the first Russian oil company to begin the large-scale production of EURO4 diesel fuel with enhanced environmental characteristics at refineries in Russia. The fuel meets EN-590:2004 environmental standards for diesel fuel, according to UE. Apart from extending engine life and saving fuel, use of LUKOIL EURO4 reduces significantly carcinogenic emissions from engines. Sale fact: total sale of EKTO diesel fuel in 2009 869 000 tons, i.e. 23% more than in 2008. Since 2009 all LUKOIL refineries fully produce fuels to euro5 standards, in compliance with UE standards and in Russia, the refineries produce gasoline to Euro 3 standards. The company has increased its production of high-octane gasolines to European environmental standards in response to growing demand and gradual changeover to new ecological standards for motor fuels.
5 Steps towards future in growing awareness of our Environment Starting with the very moment of LUKOIL taking over refinery PETROTEL-LUKOIL, (1998), several modernizations and revamping times had as a common main goal, the environment and the social awareness, i.e. the fact our refinery uses the best technologies and the highest safety to assure Prahova county citizens of a pure environment. I would like to mention just the major revamping periods: 2003-2004 as a main goal EURO 4 fuels. 2005 a system for dehydration of inputs using molecular sieve within isomerization unit; the injection of secondary combustion additives, allowing the increase of the octane number of it; 2006 building a unit for MTBE-TAME additives; 2008-2009 upgrading units for the hydrotreatment of diesel fuel, CC, hydrotreatment of gasoline, a vaccum unit for the vacuum distillation block, building another hydrogen unit, all having as a main goal to produce EURO 5 fuels in compliance with UE standards.
6 Steps towards future in growing awareness of our Environment The use of best technolgies in the refinery field, have resulted in the case of PETROTEL- LUKOIL into: - The gradual diminishing of sources of pollution; The improvement of the quality of air building: -a TAIL GAS unit with a 99% sulphur recovery; of the residues within DGRS Plant. -a CLAUS II unit thus, increasing the refinery gas processing capacity and increasing the safety degree of the refinery operations. -a waste water stripping plant integrated with Claus Unit thus reducing by 20% the SO2 emissions, with a direct result of a better quality of the water towards the refinery purifying station. -the recovery vapour system within the railway and motor loading petroleum products and a complex reconstruction of the tank platform. Last but not least, a PROGRAMME of continuous INVESTMENT AND DEVELOPMENT of our Refinery, as the case of all the companies, present here, which would like to meet not only standards, but challenge. This programme includes also the reconstruction of all major objectives, the rebuilding of the fixed and technological Assets of the refinery and the deadline is 2015. It is our development schedule to meet all the standards towards social and environmental awareness.
7 Legal Framework -We all recognize in the picture the UE symbols, we all have strict and tight deadlines, it is a challenge for all of us and I wish all our participants GOOD LUCK in meeting them!). -According to Government Decree no.1844/2005, related to the European Unions Directive 2003-30-EC, starting with 01.01.2007 the use of bio-fuels and of other renewing energy sources has a mandatory character in Romania, as well. PETROTEL-LUKOIL Refinery has obtained The Integrated Environmental Authorization no.155/2009, with the validity up to 31st of December, 2014, issued by the Regional Agency for Environment Safety, Pitesti. - In 2007 PETROTEL-LUKOIL obtained its Certification for Environment Management System in compliance with ISO 14001:2004 requirements; ECO FACT PETROTEL-LUKOIL: - When taking over our refinery, LUKOIL took over not only the technology, but the history as well. A long and nice history and petroleum tradition that started in our case in 1904 when the Refinery was the Romanian-American Refinery. But, along with the history, LUKOIL took over the refinery lagoons. We would like to point out the fact that so far, PETROTEL-LUKOIL S.A. has fully complied with all the regulations and legal stipulations of UE and Romanian authorities and 2 of the lagoons have been already treated (one external, one internal - and by the end of our deadline, (i.e. 31.12.2012) all the other 3 external lagoons are to be treated, too. Please, note that the external lagoon has been fully treated by the end of year 2006 and the internal one is to be covered with vegetal soil.
8 We are all the People! Hence, the social and environmental responsibilities Our Refinery has developed a series of programs for social and environmental awareness. The specialists from HR and PR departments, as well as coordinators within a Young People organization we have are frequently organizing visits in our refinery to grasp the progress and the huge investment LUKOIL does, both in technology as well as in people. Our target now: to turn into the best working place. Step by step, meeting deadlines and legal requirements, but most of all, meeting people and their needs, building a common growing awareness that we are all the people, together in this world, responsible for saving and preserving resources and innovating continuously. From teachers with their students, from citizens to mass-media, we all invite them constantly in our refinery to show them that we cannot work but in a team, that includes our common-sense and awareness for environment! The progress is given by our people!
9 Social and Environmental Responsabilities Thank you all of you and thank you all the citizens of Prahova for their trust and for their support! For further details, please address to: Public Relation specs: DanielaDanulescu@petrotel.lukoil.com LStanemir@petrotel.lukoil.com Phone numbers: + 4 0 244 504 051 Fax numbers: + 4 0 244 504 625/629
THANK YOU!