VACUUM GAS OIL DEEP CONVERSION PROJECT. Lukoil - Volgograd Russia

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VACUUM GAS OIL DEEP CONVERSION PROJECT Lukoil - Volgograd Russia

BRIEFLY VGO LUKOIL-Volgogradneftepererabotka is now a large advanced enterprise engaged in the production of fuels and lubricants. The refinery treats 9.8 million tonnes of crude a year with a product yield of 77.5%. Its work force exceeds 5,000. With an annual output of nearly 1 million tonnes, the refinery has become in recent years one of Russia's largest producers of lubricants. Unleaded motor gasolines, transmission, compressor and turbine oils are on its list of products which also includes benzene, toluene, jet-engine, diesel and furnace fuels, fuel oil, bitumen and coke. The refinery has started pilot production of new kinds of lubricants, in particular for polar areas. The modernization program now underway will lead to an increase in the production of motor fuels; the products will meet the highest quality standards. Two gas refinery units and units for high-yield refinery of oil residues and isomerization of low-octane gasoline catalytic reforming fractions and 1.4 million tonnes a year diesel fuel hydrocleaning units will be built. The construction of an automatic gasoline blending station with an additional assembly for removal of high-octane dopes will be brought to completion. "We attach great importance to the overhaul and modernization of our oil refineries and so our investment program calls for the allocation of large amounts for these purposes," said LUKOIL President Vagit Alekperov.

MAIN FIGURES OF THE PROJECT Client : LukOil Location : Volgograd / Russia Contract Amount : 250M USD Scope : Perform all the construction works of Mild Hyrocracker Unit which will be One of the World's Largest VGO light hydrocracker units with a capacity of 3.5 million tons per year and up to 75% conversion ratio, a combined sulphur production unit and hydrogen production facilities Concrete Works Steel Structure Erection Equipment Installatio Piping Works Electrical Cable Laying Instrumentation Cable Insulation Works : 7500 m3 : 6800 tons : 8800 tons : 4200 tons : 270 km : 455 km : 55000 m2

OPENING CEREMONY

OPENING CEREMONY PRESS-RELEASE 31.05.2016 LUKOIL COMMISSIONS VGO DEEP CONVERSION COMPLEX Today, in Volgograd, Oil Deep Conversion Complex has been commissioned as part of vacuum gasoil (VGO) hydrocracking facility at PJSC LUKOIL s wholly owned oil refinery OOO LUKOIL-Volgogradneftepererabotka. The ceremony was attended by the Head of the Government of the Russian Federation Dmitry Medvedev, Deputy Head of the RF Government Arkadiy Dvorkovich, RF Minister of Energy Alexandr Novak, Envoy of the RF President to the Southern Federal District Vladimir Ustinov, Governor of the Volgograd Oblast Andrey Bocharov and President of PJSC LUKOIL Vagit Alekperov. The capacity of Russia s largest VGO deep conversion complex is 3.5 million tons a year. The complex, which also has hydrogen and elemental sulfur production units and auxiliary facilities, was completed in record breaking time of three years. In total, 2.2 billion US dollars were invested in the project. The project, which created additional employment for 300 people, will allow an annual increase in output of EURO-5 diesel fuels, motor gasoline components and liquefied gases by 1.8, 0.6 and 0.1 million tons respectively. These products will be marketed in the southern parts of Russia in the first place. The VGO Deep Conversion Complex, designed by OOO LUKOIL-Nizhegorodniinefteproyekt, was constructed by Russian and foreign contractors. Commissioning of the Complex in Volgograd makes LUKOIL the first Russian company to fulfill its commitments under a quadripartite agreement between oil companies, RF Federal Antimonopoly Service, Federal Service for Environmental, Technological and Nuclear Supervision (Rostechnadzor) and Federal Agency for Technical Regulating and Metrology (Rosstandart).