Caspian Energy (CE): Mr. Ismayilov, what could you tell about the potential of the Heydar Aliyev oil refinery in the downstream sector?
Elman Ismayilov, Director, Heydar Aliyev Oil Refinery: Our refinery was created on July 29, 1953 in accordance with the former USSR Oil Industry Ministry’s order. However, the dynamic development began during 70-80s of the past century.
It refers to introduction of new technologies and production facilities inseparably associated with the name of National Leader of Azerbaijan Heydar Aliyev. It is noteworthy that all units currently operating at the refinery were built after 1976. The 6MTA ELOU-AVT-6 plant was commissioned (in 1976) within a short period of time; the process took only 2 years.
The catalytic reforming unit producing high-octane petroleum on basis of the license of the American UOP Company, the global leader in this sphere, was built in December 1980. The refining capacity of this facility built in accordance with the project of the French company LITVIN totals 1mln tons.
A delayed coking unit was launched at OR in 1986. Later, the catalytic cracking unit G-43-107M was commissioned in 1993 after Heydar Aliyev’s return to power.
Considering the significant role the National Leader played in history and development of the OR, the facility has been named after Heydar Aliyev since 2004.
Azerneftyag Oil Refinery has merged with our facility since January 1, 2015. So, the plant is named Heydar Aliyev Oil Refinery as it is the only oil refinery operating in the country now. At present, Heydar Aliyev OR by means of ten production units is fully meeting Azerbaijan’s demand for oil products and even exporting them. All production units have been stably operating.
CE: What kind of work is carried out for upgrading of units?
Elman Ismayilov: Addressing the meeting of the Cabinet of Ministers, dedicated to the results of social-economic development during 2014 and the forth-coming tasks, President of Azerbaijan Ilham Aliyev emphasized the importance of reconstruction of operating refineries. It will let us meet the growing domestic demand and produce engine fuel meeting Euro-5 standards. For this reason, the upgrading process has been launched at Heydar Aliyev Oil Refinery. The major objective is to ensure production of engine fuel meeting Euro-5 standards. At the same time, it is planned to expand production capacity.
Thus, the output of the catalytic cracking unit will increase from current 2 mln tonnes up to 2.5 mln tonnes per year, the ELOU-AVT crude oil distillation unit - from 6 up to 7.5 mln tonnes per year.
Along with this, about 8 new production units are scheduled to be built at the refinery within coming 3-4 years in order to manufacture products meeting Euro-5 standards. The work on feasibility study of these units is already underway. SOCAR Foster Wheeler, American companies UOP and Fluor are involved in development of the feasibility study of new units and upgrading of existing ones. After this work is over, we will start working on design and construction of new units. In this way, all oil products manufactured in Azerbaijan are going to meet the highest European standards.
Apart from this, reduction of overspending at production sites is one of the major directions of the economic policy of the country. Heydar Aliyev Oil Refinery consolidates overlapping production sites to raise economic efficiency and optimize spending.
Broad restructuring work was carried out due to Azerneftyag Oil Refinery’s joining in our facility and its elimination as an economic entity.
Free employees were qualified by the HR Department of SOCAR. Those who were examined successfully were employed. The rest employees were involved in different training programs of SOCAR.
The units which we received for management are now operating. The decision on stoppage of old units will be made after upgrading and construction of new units at Heydar Aliyev Oil Refinery has been completed.
CE: What kind of work has been carried out on operating processing units of the refinery?
Elman Ismayilov: Important upgrading operations have been performed at the plant over the past period. The K-10 vacuum column of the ELOU-AVT-6 plant underwent reconstruction on basis of the Technovacuum-Engineering LLC in order to increase production of the vacuum distillate which is a major raw material for the catalytic cracking unit. Thus, the production of the vacuum distillate was increased up to 32%.
Apart from this, with the purpose to improve the cooling system and lower excessive waste of plant water down to a minimum level, Hamon Thermal Europe has completed the work on projection of the cooling plant and launched its construction. As soon as the plant comes on stream, the cooling systems of the processing units will be shifted to a closed operation mode, which will save water used by the plant and simultaneously boost environmental efficiency.
CE: What have been the main economic performance figures of the refinery this year?
Elman Ismayilov: All operating processes of the catalytic cracking, delayed coking plants and other sections of the refinery have already been computerized. Overall renovation has been carried out at workshops and production sites. All necessary conditions have been created for employees. All safety regulations, quality of products and ecological requirements meet international standards at the refinery.
According to the outcomes of the first quarter of 2015, the management and the staff of the refinery have successfully fulfilled all the tasks and assignments of SOCAR. As the result, high performance indicators were fixed in implementation of the production program owing to maximal use of human and technical resources.
The refinery processed 1667.7 thousand tonnes of crude within the first quarter of 2015. Of this total, 1633.7 thousand tonnes and 34 thousand tonnes fell to the share of oil and external semi-finished products respectively.
Owing to optimization of work related to the operation of the refinery and rational usage of capacities of processing units, especially catalytic cracking and delayed coking processes units that refer to reprocessing, created were conditions for production of more expensive oil products out of cheaper resources of heavy as well as light fuel oil components obtained during refining.
Fulfilling President’s recommendations, the staff of the refinery increased the processing depth up to the highest rate in 2015. Thus, following the President’s order on maintenance of the high rate processing depth as it plays an important role in oil refining industry, we raised the processing depth up to 96.2% (+7.8% compared to the figures of the same period of 2014) by the end of the first quarter of 2015. This indicator was achieved owing to the optimization of operation of processing units, especially due to the growth of efficiency of oil recycling units (catalytic cracking and delayed coking).
The Refinery produced 300.3 thou tonnes of petrol, 709.9 thou tonnes of jet engine fuel and diesel fuel, 32.6 thou tonnes of bitumen, 9.7 thou tonnes of DT and A engine fuel, 2.2 thou tonnes of different lubricant products, 56.1 thou tonnes of hydrotreated gasoline for chemical industry, 15.6 thou tonnes of dry gas and other oil products in the first quarter of 2015. In general, commercial products worth 451.5 mln AZN were produced in the first quarter of 2015. 44.3% of products produced at the refinery have been exported. The fact that the refinery, named after National Leader Heydar Aliyev, has been actively developing is certainly clear. All of it promotes further fruitful work of the personnel this year and fulfillment of all tasks assigned by the management of SOCAR.
