Caspian Energy (CE): Mr. Ismayilov, what is the role of the Heydar Aliyev Baku Oil Refinery at the regional level? How would you assess the refinery’s current potential?
Elman Ismayilov, Director, Heydar Aliyev Baku Oil Refinery: Heydar Aliyev Baku Oil Refinery was created on July 29, 1953 in accordance with the former USSR Oil Industry Ministry’s order. However, the dynamic development began during the 70-80s of the past century. This 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 within a short period of time (two years) in 1976. The catalytic reforming unit producing high-octane petroleum on basis of the license of the American UOP Company, a 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 tonnes.
Working in Moscow in 1980s, Heydar Aliyev kept contributing directly to further development of this industry. Thus, a delayed coking unit was launched at BOR 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 the history and development of the BOR, the facility has been named after Heydar Aliyev since 2004. At present, Heydar Aliyev BOR is fully meeting Azerbaijan’s inner demand for oil products by means of four units and even exporting them.
CE: What technology innovations are expected at the Heydar Aliyev BOR in the nearest future?
Elman Ismayilov: Processing units are constantly changing because the production process demands a continuous upgrading. As you know, we have recently introduced the AZS standards. As for these standards, our oil products completely conform to Euro-2 standard and on some parameters and terms even to Euro-3 standard. However, if consider such criteria as the content of benzene and sulfur, our oil products yet do not meet the high European standards such as Euro-5. Our objective for today is to produce motor fuel according to the highest European standards. In this regard we have decided to upgrade the facilities in operation at the refinery. In particular, the output of the catalytic cracking and ELOU-AVT units will go up. At the same time, we are strongly committed to improving the quality of production and blending fuels manufactured at both units.
Besides, as many as 8 new production units shall be constructed at the refinery in the coming 3-4 years to ensure production of commodities meeting Euro 4 and Euro5 standards. Preparation of feasibility studies for these units is now in process. As soon as these works are accomplished, we will launch engineering and construction of new units. As a result, all petrochemicals manufactured in Azerbaijan are going to meet the highest European standards.
CE: Could you please specify what units you are speaking about?
Elman Ismayilov: Considered now is the possibility of constructing hydro-treating units for purification of petrols, and diesel fuel. Kerosene and liquid gas purification will be carried out on basis of MEROX process. Besides, it also refers to building facilities for production of high-octane blending agents. Also we are considering the option to build a MTBE process unit (methyl tertiary-butyl ether) and isomerization units, which will enable to bring the content of benzene and sulfur in fuel to the level of the European standards.
The decisions to construct these units have been already made, these projects are scheduled for the coming 3-4 years.
CE: Please specify, which works will be performed at the operating facilities?
Elman Ismayilov: The capacity of the fluid catalytic cracking unit (FCC unit) will increase from present 2 mln tonnes to 2.5 mln tonnes, while that of the crude vacuum distillation unit ELOU-AVT will go up from 6 to 7.5 mln tonnes per annum. As you know, energy costs are one of the main components of the cost of petrochemicals production. In this regard, heat exchange processes will be improved at the ELOU-AVT unit to reduce energy costs by 30%.
We also plan to modernise the hydro-treating section of the catalytic reforming unit. Here heavy petrol brands manufactured at the catalytic cracking unit will undergo hydro-treating. Crude from the catalytic reforming unit will be processed at the hydro-treating block (after carrying out some reconstruction works), which is now operating at the catalytic cracking unit (No. 55).
CE: Do the existing sites of the BOR enable to implement so large-scale works on repair and construction of new facilities?
Elman Ismayilov: They certainly do. The sites of old dismantled units have been improved and are now ready for implementation of new projects.
CE: What would you say about development plans after Azerneftyag Oil Refinery will merge with Heydar Aliyev BOR?
Elman Ismayilov: The Government has made a decision to dismantle Azerneftyag Oil Refinery in the coming 5 years. Firstly, the refinery is morally obsolete, it is about 150 years old. Secondly, according to the Program of Development of the Capital and the White City Project, the refinery should be moved away to another site. At present the bitumen unit can be considered as the main facility at the refinery supplying the country with bitumen. Accordingly, a new bitumen unit shall be erected at the territory of the Baku Oil Refinery. Relevant researches are now underway in this regard.
At the same time, when the capacity of the crude vacuum distillation unit ELOU-AVT increases from 6 to 7.5 mln tonnes per annum, two small crude vacuum distillation units at the Azerneftyag Oil Refinery will be decommissioned.
Besides, the hydro-treating unit is now in operation at the old refinery to refine certain types of distillates. Its decommissioning will not also affect our activity since all operations on hydro-treating are going to be performed at the BOR site.
So, the consistent work is now performed to ensure a full decommissioning of the Azerneftyag Oil Refinery. The two refineries have already merged and since January 1, 2015 have been working as Heydar Aliyev BOR in line with the relevant Executive Order of the President of Azerbaijan and the order of SOCAR’s management. The merge process is at the final stage.
CE: What are the main performance figures of the refinery for the last year?
Elman Ismayilov: All operating processes of the catalytic cracking, delayed coking units and other sections of the refinery have been already computerized. Overall renovation has been carried out at workshops and production sections. All necessary conditions have been created for employees, including provision of special summer and winter season clothes, footwear and jackets. Milk is supplied for employees engaged in operations under harmful working conditions. All safety regulations, quality of products and ecological requirements meet international standards at the refinery.
According to the outcomes of the year 2014, the management and the staff of the refinery successfully fulfilled all the tasks and assignments of SOCAR. High performance indicators were fixed in implementation of the production program owing to maximal use of human and technical resources.
In 2014 the refinery processed 6,328.1 thousand tonnes of crude. Of this total, 4,738.2 thousand tonnes and 1,589.9 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 the process units, especially catalytic cracking and delayed coking processes unit that are part of reprocessing, created were conditions for manufacturing of more expensive oil products out of cheaper resources of heavy and 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 2014. Thus, following the President’s order on maintenance of the high rate processing depth as it plays an important role in oil refining industry, throughout 2014 we raised the processing depth up to 91.7% (+1% vs. the same figure of the last year). This indicator was achieved owing to the optimization of operation of the process units at the refinery, especially due to the growth of efficiency of oil recycling units (catalytic cracking and delayed coking).
In general, the Oil Refinery fulfilled the production plan by 103.1% in 2014, which is 2.4% up vs. the same figure of the last year. The fact that the refinery, named after National Leader Heydar Aliyev, has been actively developing is clear. All of it promotes further fruitful work of the personnel this year and fulfillment of all tasks assigned by the management of SOCAR.
