Pavlodar-based oil refinery almost doubles oil processing

Pavlodar-based oil refinery almost doubled the volume of oil processing in September 2011 up to record 514 thousand tons, Shukhrat Danbai, CEO of the facility, told News-Kazakhstan Agency. “The refinery has come to a record high volume of oil processing over the last ten years. 505 thousand tons were processed in September alone. In October we are processing 514 tons of oil”, - Mr. Danbai said. He reminded that earlier the monthly volume of oil hadn’t exceeded 250-300 thousand tons. According to him, such a growth has become possible due to prudent investments over the last two years worth KZT six billion annually. “By late 2011 we intend to reach 4646 thousand tons of oil”, - Danbai added. Pavlodar refinery is capable of producing 7.5 million tons of oil a year. The facility was constructed in 1978 and is currently owned by Refinary Company RT (KazMunaiGas subsidiary) (58%) and Samruk-Kazyna Sovereign Wealth Fund (42%). Danbai reported earlier that the refinery plans to reach 4.5 million tons of processed oil in 2011, bringing the figure up to 4.7 million tons next year. Oil and Gas Minister Sauat Mynbayev had said earlier that, “overhaul of the three refineries [based in Pavlodar, Shymkent and Atyrau] will enable to raise processing to 17.5 million tons, introducing deeper conversion to start producing petrol in line with Euro-5 emission standards”. As of today the refineries process a bit over 13 million tons a year. “After 2019-2020 plans are there to construct another refinery”, Mynbayev said. Mid-July Tengrinews.kz reported, citing PM Karim Massimov, that a special survey had been made and it had shown that it was more feasible for Kazakhstan to upgrade three existing plants, rather than construct a new one. Construction of the fourth plant would cost the country $6 billion, while reconstruction of existing refineries will cost $2.5-3 billion. Massimov said that modernization of existing plants would finish not later than on January 1, 2015. Tengrinews.kz reported that In January – July 2011 petrol production in Kazakhstan had dropped 16% as compared to the like period of 2010. According to the stats, production figure for the period made up 1.5 million tons, 15.9% down against the same period of 2010.