Russian oil company Rosneft plans to focus on upgrading its Russian refineries, rather than expanding their capacity, company vice-president Peter O’Brien said at a conference.
„It does not make sense to add refining capacity in Russia,” O’Brien said at the conference, adding increasing product quality would be more the focus for domestic facilities. „We are contemplating upgrades,” he said. Rosneft operates a total of seven refineries in Russia, including the five facilities which it bought during the Yukos bankruptcy.
Since it bought the Yukos refineries, it has given little information on what it plans for the facilities, as plans have yet to be approved by the company’s board. The board is expected to approve this by the end of the year. In terms of expansion, O’Brien said Rosneft is considering adding refining capacity outside Russia. „It would make sense to add capacity in a location well-placed for export markets,” he said, but did not say anything on possible location.
Rosneft has previously said it is considering the construction of a refinery in China. In 2008, Rosneft plans to refine up to 50 million (1 million barrels per day) of its own crude. Its refineries are already operating at a daily run-rate equivalent to around 45 million mt/year, O’Brien told Platts last month. At that time he noted Rosneft would not refine as much as 45 million mt this year, as the refineries have only been on the books since May.
The five refineries purchased earlier this year in the Yukos bankruptcy are in Novokuybyshev, Kuybyshev, Syzran, Angarsk and Achinsk. Rosneft also has refineries in Komsomolsk in Russia’s Far East and Tuapse on the Black Sea, for which expansion plans have been previously announced. (oilandgaseurasia)