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Vladimir Putin Greenlights Launch of CDU-12 Unit at Tuapse Refinery

11 October 2013

Russian President Vladimir Putin and Rosneft President Igor Sechin took part in the launch of the most powerful Russian crude distillation unit CDU-12 at Tuapse refinery.

Modernization of Tuapse refinery suggests in-process construction of the advanced oil refinery. Upon its completion, the refinery throughput will increase from 4.5 to 12 mln tons per annum, refining depth will reach 98.5%, Nelson Complexity Index will reach 9 and exceed the average comparable figures of refineries in Western Europe. The refinery will produce a wide range of petroleum products meeting high environmental requirements. The environmental and industrial safety will be considerably boosted. Modernization of the refinery is being carried out in three stages.

The unit launch has resulted from completion of the first stage, including such large facilities, as crude and commercial oil depots, central laboratory, fire station, light oil pump house and others in addition to CDU-12.

As soon as the second stage facilities are launched, Tuapse refinery will start producing Euro-5 petrol, diesel and jet fuel. The third stage of construction provides for the launch of the Flexicoking unit designed for deeper conversion of oil residues. It will allow the refinery to maximize the refining depth rate.

In his speech at the launch of CDU-12, Russian President Vladimir Putin said: “I would like to congratulate Rosneft staff and all your partners on this step forward. It is a significant and serious step. Rosneft has made considerable progress towards strengthening its positions as one of the largest global oil companies. What you did today is not just ordinary business. It is another proof that the Russian oil and gas industry is increasing its hi-tech potential. More contracts awarded to our machine engineering enterprises are also important. Because it means that the oil and gas industry is the initiator, a powerful stimulus and a powerful driver of development in other production sectors.

It is especially important in the present-day world, particularly in places like Tuapse, (well, as a matter of fact, Krasnoyarsk or Irkutsk regions, or the Far East are not in the least less important) to take care of ecology. What was done by your Company in this area deserves a very close consideration, a very close attention and support. Nowadays it is impossible to develop large-scale production facilities without introducing nature-saving technologies. It would like to congratulate you all again. Let’s begin work.”

Commenting on the unit launch, Igor Sechin said: “CDU-12 has unique parameters. Its capacity exceeds all predecessors operated by Russian refineries almost by half. It is unique as it combines high capacity and limited placement space, which is a little more than two hectares. We have succeeded thanks to a whole range of technology solutions.”

The first stage of Tuapse refinery construction required almost half a million tons of reinforced concrete structures, 55,000 tons of steelworks, over 350 km of industrial pipelines. Rosneft President emphasized that preference was given to products and equipment of Russian manufacturers with all other factors held equal. Therefore, over 50% of orders are accounted for the Russian equipment suppliers.

Modernization of Tuapse refinery will allow the company to meet growing demand for high quality motor fuels in the Southern Russia. Besides, Rosneft will get more crude export options given its unique geographic location and transshipment capacities in Tuapse.

Rosneft Information Division
Tel.: +7 (499) 517 88 97
October 11, 2013

These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.