The year 2004 was marked by successful completion of the Program of refurbishment and reconstruction of the enterprise “Naftan 1998-2004” covering the whole production cycle of the enterprise.

10 major projects were implemented including Vacuum Gasoil Hydrocracking Complex.

Implementation of these projects enabled to:

• improve crude distillation units operating efficiency;
• introduce state-of-the-art industrial processes, such as mild hydrocracking, high pressure hydrocracking, visbreaking, thermal cracking, wax isomerization, Tatoray, Paraxylene-Parex processes;
• decrease fuel oil output from 38 % to 27 % of crude oil, which increased the yield of diesel fuel and middle distillates up to 45.4 %;
• improve quality of products recovered – production of diesel fuel with sulfur content over 50 ppm was terminated, the share of high-octane motor gasolines was increased and benzene content in them was reduced to 1%. The quality of lubricating oils and individual aromatic hydrocarbons improved. Production of high quality compounded bitumens was set to work;
• improve the operation efficiency of power supply system and off-site facilities.

With the aim of further increasing the efficiency of the enterprise based on newest achievements in processing and taking into account the ever-changing sales markets and due to reconsideration of terms and prices of energy resources supplies to the Republic of Belarus, the Program “Naftan 2005-2010” was reviewed and adopted at the session of the Presidium of the Council of Ministers of the Republic of Belarus.

Principal directions of “Naftan 2005-2010” program:

• Refining capacity increase;
• Refinery yield increase;
• Production quality improvement;
• Energy and off-site facilities development.

The following projects were implemented:

It should be noted that during the abovementioned period, the Prospective Development Program of OJSC Naftan was developed to ensure the integrated development of OJSC Naftan, taking into account the actual results of previous development programs implementation.

Furthermore, during the implementation of the “2005-2010 Program”, a great deal of work was also done to obtain licenses, design other important facilities of the OJSC Naftan Prospective Development Program, which allowed to start the construction and installation works and lay the basis for the future.

Implementation of these projects enabled to:

• increase refining capacity up to 10.8 mln. tons per year;
• ensure sustainable production of aromatic hydrocarbons for OJSC Mogilevkhimvolokno, OJSC Grodno Azot and OJSC Lakokraska;
• reduce atmospheric pollutant emissions volume;
• improve efficiency of energy supply system and off-site facilities;
• to divest production of diesel fuel with 0.2% sulfur content, only eco-friendly diesel fuel grade EN 590, F and C classes, is produced (50 ppm and 10 ppm sulfur content);
• to increase the refinery yield and commercial products yield, to decrease the yield of fuel oil (see the graph).

In 2005, fuel oil production accounted for 30% of crude oil. The decrease in the proportion of fuel oil production was due to the reconstruction of the existing production.

Between 2011 and 2015 OJSC Naftan implemented the following investment projects:

Implementation of these projects enabled to:

• switch over to production of 100 % of gasolines as per K-5 standards;
• increase diesel fuel production as per K-5 (Euro-5) standards up to 1.4 mln. tons per year (by 37 %);
• expand crude and petroleum products tank battery;
• set up production of Group III base oils as per API requirements;
• increase the capacity of workshop No.104 of Polymir plant by ethylene;
• commission in-house power generating capacities.

The Program implies comprehensive development of the enterprise including construction of new production facilities and reconstruction of the existing ones for the purpose of reaching the refinery yield of 89-90% and ensuring products conformity to current requirements. The Program involves a number of investment projects which are divided into 4 blocks depending on their focus:

Block 1 of OJSC Naftan Prospective Development Program is aimed at increasing the refinery yield. The Program involves construction of a new Deep Conversion Complex comprising Delayed Coking Unit, and reconstruction of existing deep conversion and hydrogenation facilities for the purpose of increasing their yield and improving diesel fuels quality.

Block 2 of the Prospective Program is aimed at refining capacity increase and product quality improvement. The Program involves reconstruction of AT-8 Unit and renovation of a number of process technologies with increase in crude distillation capacity up to 12 mln. tons per year and increase in production of high-octane motor gasolines meeting Euro-5 specifications.

Block 3 of the Prospective Program is aimed at development of infrastructure facilities and off-sites, intended for the balance of required auxiliary facilities and systems ensuring trouble-free operation of the entire refinery, and at development of in-house power generation, uninterrupted power supply and energy efficiency.

Block 4 of the Prospective Program is aimed at implementation of measures intended for increasing the yield, improving product quality, development of energy and off-site facilities of Polymir plant.

To date OJSC Naftan has completed a large-scale investment project:

• Crude distillation complex construction; includes 2 projects aimed at increasing the refinery throughput up to 12 mln. tons per year.

Implementation of a complex investment project consisting of several units is in progress:

• Delayed coking complex construction – includes 5 projects aimed at refining capacity increase up to 90%.

Such projects implementation will enable to:

• increase oil refining capacity up to 12 mln. tons per year;
• increase the yield of light petroleum products up to 63.5 %;
• increase the refinery yield up to 90 %;
• ensure sulfur content in diesel 10 ppm max.;
• reduce fuel oil yield by 2.0 mln. tons per year.

Belneftekhim concern has elaborated new development strategy up to 2030. OJSC Naftan development is a part of this strategy. Options for future projects implementation are currently being worked out.

Investment projects implementation will enable to:

• ensure increase in hydrocarbon feed processing into petrochemical products;
• increase the yield of target petrochemical products (ethylene and propylene) per unit of hydrocarbon feed processed by using it more efficiently in new pyrolysis furnaces;
• increase equipment “flexibility” for the used hydrocarbon feed by operating new high-efficiency pyrolysis furnaces allowing to process both liquid and gaseous feed on the same equipment;
• increase energy, process and ecological safety of the industrial base;
• increase the production competitiveness on the global market;
• reduce costs for physically worn-out equipment repair and replacement;
• introduce new high-tech equipment that meets modern production, industrial and environmental safety requirements.

Factors of successful operation for OJSC Naftan involve implementation of the Company development program: reconstruction, refurbishment and upgrading of current production facilities, construction of new processing facilities which will ensure the yield of products meeting European quality standards.