AZERNEFTYAG ORP: FLASHING OF PETROLEUM REFINING INDUSTRY IN AZERBAIJAN

 

Azerneftyag Oil Refinery Plant (ORP) operated by the State Oil Company of the Republic of Azerbaijan and considered as a flagship of the in-country petroleum refining industry has celebrated its 125th anniversary with high technical and economic indicators.

 

Contemporary level

Regardless of the long history, since the late 60s when National Leader of Azerbaijan Heydar Aliyev came to power the refinery has been experiencing the second and efficient period of its development. The drawing-up of the strategic policy that defined the urgent need to upgrade the petroleum refining industry is inseparably linked to his name.

At that time the entities engaged in the petroleum refining industry, including Azerneftyag ORP, launched construction of oil-processing plans of contemporary design meeting the requirements of advanced technologies.

Due to the far-seeing policy of Heydar Aliyev in 1981 the refinery started up the complex crude oil distillation plant of ELOU-AVT-6 design. Since that very moment the old plant has started a new life and, as a result, furthermore commissioned the oil hydrotreater. In 1994-1995 the refinery additionally started up two processing plants of ELOU-AVT-2 design and the bitumen plant in 2000.

Over 20 kinds of oil products are currently produced at the refinery's manufacturing areas. As a result, 54% account for Azerneftyag Oil Refinery Plant in the petroleum refining industry in Azerbaijan.

The upgraded production capacities enabled to compete at the international sales markets and sell products of petroleum refining industry of independent Azerbaijan that meet international standards.

The Contract of the Century initiated by national leader Heydar Aliyev and successfully implemented now creates a firm basis to supply long-range for oil refineries.

Today the oil strategy of National Leader Heydar Aliyev is successfully followed by incumbent President of Azerbaijan Ilham Aliyev. The implementation of reforms in the petroleum industry, including those in the field of petroleum refining industry, is underway. The State Programme on Development of the Fuel-Energy Complex of the Republic of Azerbaijan (2005-2015) approved at the initiative of the Head of State and being of great importance for oilmen is a valuable asset to the further development of the refinery and strengthening its economic potential.

The State Programme that provides new investments, introduction of new techniques and technologies, improvement of well-being of employees makes people see the future with optimism.

 

Good Year

The team of Azerneftyag Oil Refinery Plant completed the 2006 year with high economic indicators. The main forecasted indicators approved by the State Oil Company of Azerbaijan exceeded the expected numbers.

Crude oil reception was executed at 124.7%, while processing at 123.3%.

As a result of the improved technological and labour discipline, enhanced responsibility and concern of the team in end products, the refinery produced and supplied to consumers 82,100 tons of straight-run gasoline, 135,100 tons of black oil, 51,300 tons of jet engine fuel, 169,700 tons of diesel fuel, 41,600 tons of lubricating oils and 58,400 tons of bitumen in access of the plan.

In the previous year the refinery completely implemented the plan on the nomenclature of lubricating oils. 24,300 tons of turbine oil, 7,300 tons of motor oil and other types of oils exceeded the planned indicators.

At the same time the yield of light oil products was planned at the level of 49.7%, whereas the actual indicator reached 50.4%. It resulted in surplus 23,500 tons of products manufactured. The enhanced yield of light oil products at the ratio to the norm is explained by the quality of crude oil and well-run production process at processing facilities.

Due to the diligent and efficient work of specialists and, on the whole, the refinery's team, in 2006 both qualitative and quantitative indicators of manufactured products can be regarded as satisfactory. The production programme on the major nomenclature of manufactured commodity output was executed at 124.2%. The refinery produced surplus commodities to the sum of 92,600 AZN. In total, in 2006 the refinery manufactured over 550,000 tons of various oil products exceeded the planned figures.

In the 2006 fiscal and economic year the refinery benefited 475.8 million AZN, which exceeds the forecasted level 2.5 times.

The positive technical and economic indices reached by the refinery's team has, to a great extent, improved well-being of employees and influenced the level of social protection. In 2006 the average wage at the refinery reached 223.96 AZN. In 2006 the labour productivity grew by 66.7 % vs. 2005.

Due to rational and careful utilization of energy resources, in the elapsed year the refinery used 291 tons of equivalent fuel, 22522 Gkal of heat energy and 1,629 thousand kWh of electrical energy, which is less than the norm indicators.

Over 380,000 AZN has been saved due to the reduced consumption of chemical reagents and catalysts.

Major Construction

A number of facilities within the set of ‘Works on Technical Reconstruction at Processing Workshops and Areas and Works on Site Improvement' and ‘Improvement of Working Conditions for Employees' within the capital investments planned at Azerneftyag ORP were put in operation between 4Q2006 and January-April 2007.

The following are among them: installation of security posts in some workshops and in  stock tank farm; reconstruction of three canteens and a canteen in the administration building; repairs of roof covers in administrative buildings of shops ##7, 10 and 11, as well as improvement of nearby sites; reconstruction of service buildings (checkrooms) in shops ##18 and 53; replacement of operated transformers at the unit # 305 and installation of EAQ system; reconstruction of stock tank heating system in shop #5; construction of building for a workshop and warehouse in shop #45; construction of security post near the entrance to shop #15 and construction of dispatching office; reconstruction of administrative buildings and locksmithery in shop #10.

Within the above said works on major construction the pipeline was installed to transfer motor oil ТS-1 to Heydar Aliyev BORP.

Alongside, during the reported period the work was performed to protect the park area in shop #11 from subsoil waters. These works were performed as in the northern part of shop #11 the relief is high and subsoil and rain waters flooded the tank farm and power station #198. With the purpose to prevent the flooding two 300-400mm diameter drain lines were installed.

Since there was no drain line in the fifth station of shop #12 that shall timely discharge industrial wastes during the cleaning and repair of tanks the wastes were accumulating outdoors, thus inflicting damage to the environment. To solve this problem the drain line was installed from the fifth station that shall discharge industrial wastes to the plant's main industrial drain line.

Social Sphere

According to the State Programme for Social and Economic Development of Regions (2004-2008) initiated and supervised by President of Azerbaijan Ilham Aliyev, Azerneftyag ORP is scheduling a number of social-economic development activities for 2007. In particular, Azerneftyag ORP produces road bitumen being one of the major components of the asphalt-bitumen crude widely used in construction and reconstruction of highways.   

So, alongside the increase of social and economic basis of the plant, in particular growing economic indicators and profitable activity at the plant, Azerneftyag ORP creates favorable conditions to take actions on paying material aids and improving social conditions of the employees.

In particular, in 2007 the plant suggested the program for social development of the team, improvement of housing conditions for employees and their families; increase of estimated expenses from the consumer fund for the social development of the team; centralized provision of employees in canteens with hot meals; setting laborers in queue for apartments in accordance with the legislation; increase of material aid in connection with Gurban, Novruz and Ramazan holidays (for martyrs' families, victims of Chernobyl accident, as well as for invalids of Karabakh and Afghanistan wars; relevant bonuses to women working at Azerneftyag ORP on the occasion of March 8 - International Women's Day; bonuses to employees on occasion of Oilman Day, Day of Solidarity of Azerbaijanis of the World and other public holidays.

Alongside, it is suggested to take actions on ensuring employees activities, professional trainings and skill raising, improvement of working conditions of women and their health protection, efficient use of juvenile labor, provision of leisure hours and other social development-related activities.

It is noteworthy the new sports complex constructed at Children's Home No.3 in Khatai District at the expense of the funds provided by Azerneftyag ORP opened most recently, on April 25. The Plant allotted over 114,000 manat so as to implement construction of the sports complex and improve the territory of the children's home.

The similar works Azerneftyag ORP performs now in this field will be continued in future.

Campaign "Let Everyone Plant a Tree!", launched by the initiative of the President of the Heydar Aliyev Foundation, UNESCO and ISESCO Good Will Ambassador, Member of the Azerbaijan Parliament (Milli Majlis) Mrs. Mehriban Aliyeva, which has caused a wide resonance, is being successfully carried out by the labour forces of Azerneftyag ORP. Within the mentioned initiative, Azerneftyag ORP arranges planting of greenery in squares, streets, as well as along highways of the city to improve the ecological situation in the country, and particularly in Baku City.