OREANDA-NEWS. February 08, 2011. At the conference in "KazMunayGas – refining and marketing" JSC the report of the General Director of Pavlodar Oil Chemistry Refinery Sh. A. Danbay on the results of the activities of the refinery during 2010 was successfully presented. The results achieved tell about its effective work. We offer you a survey of key characteristics of the activities of the refinery for the last year in this press-release.

Pavlodar Oil Chemistry Refinery is one of the major industrial enterprises in Kazakhstan on the set of technological installations capable to provide depth of oil refining to 80 – 85%. Technical capacity of the refinery is 7,5 million tons of oil per year. Since August 2009 the factory has been in the structure of NC "KazMunayGas" JSC which became one of the major positive factors of its technical and social and economic growth.

Stable delivery of oil to the refinery was provided in the shortest time by straight contracts with major Russian oil-producing companies.

The most important result of the activity of the oil refineries are volumes of refining. For the last year Pavlodar Oil Chemistry Refinery processed 4,8mln tons of crude oil, which is by 676 thousand tons more, or higher of the 2009 level for 16,4% (4,1mln tons).

The volume of production increased in 2010 compared with 2009. The refinery transformed fully on producing oil products meeting the Euro– 2standard.

Output of high-octane gas has increased to 105 thousand tons or by 12% (in 2009 887 thousand tones was produced, in 2010 - 992 thousand tones). Thus, part of the production of high-octane gas in the total amount of automobile fuel makes 67% in 2008, 72% in 2009, and 77% in 2010. Such a result is the best evidence of competitiveness of this production. Further the production will be directed only to the output of demanded high quality automobile fuel.

In 2010 1,46mln tons of diesel fuel was produced, which is 126 thousand tons or 9% more than in 2009.

Pavlodar Oil Chemistry Refinery has entirely fulfilled the program of supplying aviakerosene to airports of Kazakhstan according to the program of the Ministry of Oil and Gas of the RoK and supplied full volume of material reserves for the Ministry of Emergencies . Aviation fuel production has increased twice: if in 2009 89 thousand tons were produced, in 2010 - 184 thousand tons.

Taking into consideration high demand of bitumen for building and reconstruction of roads in the country the refinery increased its production from 65 thousand tons, or 71% in 2009 to 110,8 thousand tons in 2010. Road workers highly estimated quality of Pavlodar bitumen, which is confirmed in the reviews and examinations of "Kazakh road scientific-research institute" and Karaganda branch of the Italian company "TODINI COSTRUZIONI". The accepted long-term program on increasing production volume and realization of bitumen will not only promote the quality of the production, meet the demand of road enterprises in oil bitumen, but also organize arranged logistical schemes for delivery of the product to consumers.

It is necessary to target the production on high quality oil products meeting world standards. This demands adoption of modern technologies, equipment updating, as the refinery installations have been maintained for more than 30 years. Thereupon, according to the governmental order of Republic of Kazakhstan № 712 as of May 14, 2009, a program of technical development of the enterprise for 2010-2014 was developed according to the complex plan of development of oil-refining in the RoK for 2009 – 2015. Within the limits of the given Program implementation of the Project of modernization of "POCR" is supposed. The accurate rebuilding plan of the refinery together with the Italian company Eni was developed. In the end of March 2011 the refinery will receive the complete feasibility report of the Project on modernization of the enterprise.

The results would be impossible without corresponding investments into the technical development of the refinery.

In September of the last year the input knot octane raising additives N-metilanilin (MMA) was put into operation. It was calculated for monthly volume of deliveries about 800 tons MMA and allows to improve anti detonation properties about 1 million tons of automobile gas. The installation allowed to reduce production of low octane gas AI-80 in advantage for high octane petrol AI-92, AI-95 AI-98. 348 million tenge were allocated to implement the project.

The increase of road bitumen production has demanded expansion of pouring possibility. On a railway platform of the refinery one-time front of bitumen pouring was increased to 770 tons per day. Automobile scales of the American-Swiss firm "Mettler Toledo" were also reconstructed. The established platform of weighing in length to 18 m has throughput capacity to 500 tons per day and allows bitumen pouring to tank wagons of any load capacity.

Due to managing, expenses on regenerative repairs of the technological equipment were considerably increased. In 2010 expenses on technological equipment repair in comparison with 2009 increased by 51 % and made 5,19 billion tenge. Taking into account the unsatisfactory road condition and with the aim of movement safety in the enterprise territory, 381 million tenge were allocated by the refinery for capital and average repair of 86 % of highways and sidewalks with total area of 159 thousand sq. meters or in the extent of 25 km.

Nowdays the production demands introduction of modern IT. Full modernization of IT systems was made for replacement of the obsolete and worn out equipment and communication facilities and telephony. For these purposes in 2010 448 million tenge were allocated, including building and equipment of a server room – 230 million tenge, telephony modernization – 218 million tenge.

The first stage of the store of firm waste products put into operation in September 2010 for a burial place of firm industrial and household waste products corresponds to the advanced requirements of nature protection norms and rules.

At the refinery the system of planning and purchases was introduced according to "The uniteded rules of realization of purchases of goods, works and services" of "NWF "Samruk-Kazyna" .

Increase in volumes of output promoted high financial results. Following the results of 2010 the enterprise received net profit of 3,128 billion tenge that exceeded the level of 2009 more than 7 times. Since January 1st 2010 salary of the enterprise personnel rose for 30 % .

The factory is the largest tax payer of Pavlodar region. For example, the total sum of tax deductions in off-budget funds for 2010 has made 10,42 billion tenge. 2,49 billion tenge have been transferred to the republican budget–, 7,93 billion tenge – to the local one. . The share of tax deductions of the Pavlodar Oil Chemistry Refinery makes 40 % from a total sum of tax income in the city treasury. Besides, 883 million tenge were transferred to the accumulative pension fund and the social insurance fund.

Pavlodar Oil Chemistry Refinery is a socially-responsible enterprise. Since 2010 the social package for workers of the enterprise has considerably expanded and resulted according to standards of KazMunayGaz. Medical insurance of the personnel is guaranteed, one-time grants on improvement are made during labor holiday, the extra grant to temporary disablement, financial aid is given to workers during retireing taking into account the work experience at the refinery, and also during life difficulties. The refinery allocates means for New Year gifts for children, organizations of cultural-sports leisure, summer holidays of workers and their children. In 2010 expenses on actions for social support of workers of the enterprise made 169 million tenge that exceeds the level of 2009 more than 9 times.

The enterprise takes care of the veterans, finances work of Council of veterans, realization of arrangements for the celebrating of Victory Day, Day of the elderly person. During the expired year for these purposes is allocated more than 4 million tenge. (For comparison: these expenses in 2009 were lower twice).

The factory actively participates in regional programs on sports development, is the general sponsor of an ice-hockey team of "Yertis-Pavlodar", female basketball team "Irtysh-PNHZ". Enterprise Strong support is received also by the Federation of boxing of the Pavlodar region. In 2010 on rendering sponsor's help the factory has directed 320 million tenge to sportsmen. Timely financial support has allowed hockey players and basketball players to win prize-winning places in the republic Championships. In September, 2010 the Pavlodar boxers have received a remarkable gift from factory - a specialized boxing hall. With the support of Pavlodar Oil Chemistry Refinery in February 2011 building of a boxing school is begun. Besides, 90 million tenge has been allocated for city roads repair.

The presented facts show positive dynamics of industrial and financial indices of the enterprise, testify the activity efficiency of the Pavlodar Oil Chemistry Refinery, its financial and industrial stability, growth of cost of its assets, profits, capital.