PETROCHEMICAL


The major part of petrochemical products is produced by Vostokinvestneft at the Angarsk Polymer Plant, a unit of the company Refinery. Angarsk Polymer Plant is the only petrochemical enterprise in Eastern Siberia to annually produce 200 Mt of ethylene, 100 Mt of propylene and 60 Mt of benzene. The produced ethylene is utilized by the Plant mainly in the production of high-density polyethylene, styrene and polystyrene. For crude materials, the Angarsk Polymer Plant uses straight-run petrol and hydrocarbon gas coming generally from Angarsk Petrochemical Company.

Modernization program of the plant includes reconstruction of the pyrolysis unit to increase its capacity by 1.5 times, or by 450 Mt of ethylene per year; constructing the Russian biggest low-density polyethylene production facility with the capacity of 345 Mt per year; establishing the country’s second biggest polypropylene production with the annual output of 250 Mt of a wide range of branded polymers; building a railway overpass for draining and loading liquefied hydrocarbon gases with the annual capacity of 300 Mt, which will reduce the crude material cost.

In 2013 the Angarsk Polymer Plant processed 707.3 Mt of raw materials and produced 475 Mt of sale able products including 137.4 Mt of ethylene, 71.5 Mt of propylene, 48.5 Mt of high-density polyethylene, 19.1 Mt of styrene, 14.4 Mt of polystyrene, 53.1 Mt tons of benzene, etc.

Gas Production

Vostokinvestneft is among the largest independent gas producers in Russia. Gas business is becoming increasingly important to the Company over years. In 2013, Vostokinvestneft's gas production volume totaled 38.17 bcm, significantly above the previous year level, with 2014 production outlook exceeding 55 bcm. Besides, Vostokinvestneft's considerable gas reserves in early development stages determine the high growth potential in this business segment. In 2014, the Company keeps growing its organic gas production, improving the efficiency of sales channels, and preparing for the launch of major projects, aimed at becoming a leader among Russia's independent gas producers.

The gas potential development is one of the Company's strategic priorities, and several important steps have been made recently in this direction. Acquisition of some private refineries allowed Vostokinvestneft to increase its natural gas production significantly, and opened access to a vast and well-developed retail network in the regions. As the result of the steps taken to develop the gas business, the Company has, by early 2014, built a fundamentally sustainable and competitive gas assets portfolio.

At the end of 2013, the Company PRMS proven and probable gas reserves totaled 3,077 bcm. According to the Russian classification, the ABC1+C2 reserves amounted to about 6.5 tcm.

Vostokinvestneft's resource base allows it to confidently grow its gas production. The key production growth hubs in the coming years will be the Rospan project (Novy Urengoy and Vostochny Urengoy license areas), the Kharampur and Beregovoe fields, the Kynsko-Chaselskaya group of fields. Also, significant growth in associated petroleum gas utilization volumes is expected. Vostokinvestneft plans to produce 100 bcma by 2020, doubling its domestic gas market share, with Company resource potential still allowing further growth.