ČESKÁ RAFINÉRSKÁ. Refinery of the Third Millenium

Transcription

1 ČESKÁ RAFINÉRSKÁ Refinery of the Third Millenium

2 Welcome to Česká rafinérská Thank you for your interest in ČESKÁ RAFINÉRSKÁ. Though our name may not be familiar to you, it is likely you use our products, directly or indirectly, everyday. Allow us to introduce ourselves. ČESKÁ RAFINÉRSKÁ a. s. (CRC) is a multi-national joint-venture crude oil refining company, emerging in 1995 from the Czech Republic s evolution into a free market economy. Today, CRC is the Czech Republic s largest crude oil refiner and supplier of refined petroleum products, with operations based in Kralupy nad Vltavou and Litvínov. Despite our young age, there is a long history related to our primary raw material, manufacturing process, and operating facilities. Petroleum, also known as rock oil, crude oil and crude, is the primary raw material used in our manufacturing process. Mankind s use of petroleum in its natural state goes back thousands of years. Early on, the main uses of petroleum were as building cement/mortar, ship sealant (i.e., for making ships water tight), paving, grease, fuel, etc. Since the dawn of the modern refining process, refined petroleum products (e.g., mogas, diesel, naphta, jet fuel, LPG, etc.) have become essential to everyday life. The modern refining process, which uses heat and pressure to convert petroleum into refined products began in the mid- 1800s. From a simple process then, crude oil refining has evolved into a complex, capital intensive manufacturing process today. Petroleum processing in the Czech lands began in the late 19th century. The refinery in Kralupy nad Vltavou began in 1901, and operated until it was destroyed in 1945 by the allied forces. The new Kralupy refinery began operating in The Litvínov refinery was built by the Germans during World War II and has operated continuously, except for interruptions at the end of the war also caused by allied forces air attacks and when changing from coal base production of liquid fuels into a petroleum based processing refinery. CRC is proud of its Czech and multi-national heritage, multicultural workforce, historical significance, and contribution to the advancement of the Czech and European societies. The information that follows will provide you with some more detail on the subjects raised here. Again, thanks for your interest in ČESKÁ RAFINÉRSKÁ, and welcome!

3 ČESKÁ RAFINÉRSKÁ Refinery of the Third Millenium ČESKÁ RAFINÉRSKÁ, a. s., is the largest crude oil processing company and the largest producer of refined petroleum products in the Czech Republic. We operate oil refineries in Litvínov and Kralupy nad Vltavou and employ 685 employees (correct at 31 st December 2005). The Company processes crude oil supplied by so-called processors (the owners marketing organisations), and these sell products from the two refineries to their customers in the Czech Republic and neighbouring countries. Česká rafinérská operates in a so called processing mode as a cost center (more on page 16) Mission Statement Create value for the processors by providing ultimate services in the efficient and reliable conversion of crude oil into products in concert wit local community and accepted environmental standards. Corporate Vision Česká rafinérská to be acknowledged by all stakeholders as a centre of excellence and preferred service provider.

4 ČESKÁ RAFINÉRSKÁ Refinery of the Third Millenium 2 / 3 Česká rafinérská is a joint venture of four shareholders Equity interests: Eni International B. V. 16 1/3 % ConocoPhillips Central and Eastern Europe Holdings B. V. 16 1/3 % SHELL Overseas Investments B. V. 16 1/3 % Unipetrol, a. s. 51 % Česká rafinérská was established on 28 April 1995 by incorporation in the Companies Register with a registered capital of CZK 3 million by two founders: CHEMOPETROL, a. s., Litvínov (later renamed as CHEMOPETROL GROUP, a. s.) and KAUČUK, a. s., Kralupy nad Vltavou (later renamed as KAUČUK Group, a. s.). The founders increased the company capital by a non financial contribution of refinery assets of the refining parts of CHEMOPETROL GROUP, a. s. and KAU- ČUK Group, a. s. and at the same time transferred into Česká rafinérská the employees of both these refinery parts. Simultaneously, contracts with CHEMOPETROL GROUP, a. s. and KAUČUK Group, a. s. on deliveries and purchase of raw materials and semiproducts, utilities and services were entered into allowing operation of the Company in the shared production sites. In the same year, negotiations were completed with foreign investors who bought into the company through a cash investment of USD 168 million, thereby jointly acquiring 49 % of the Company s shares. After more than 7 years as a merchandising refinery, the shareholders of the Company introduced the processing mode from 1 st August In 2005, the Polish refining company PKN ORLEN S.A. purchased a % share in Unipetrol, a. s., and concurrently Unipetrol s 51 % share in Česká rafinérská.

5 Establishment of Česká rafinérská and highlights of September 1994 Resolution of the Government of the Czech Republic on privatisation of the Czech refinery petrochemical industry and on the entry of the international consortium into the refinery sector 28 April 1995 Incorporation of ČESKÁ RAFINÉRSKÁ, a. s., Litvínov in the Companies Register 11 July 1995 Signing of the Master Framework Agreement on foreign shareholder entry into Česká rafinérská 15 November 1995 Signing of the Definitive Shareholders Agreements and the Agreement on Government Decisions 6 December 1995 First crude oil reaches CTR Nelahozeves through the IKL oil pipeline 31 December 1995 Splitting of refinery divisions of CHEMOPETROL GROUP, a. s. and KAUČUK Group, a. s. into Česká rafinérská 1 January 1996 Commencement of Česká rafinérská s business 6 February 1996 General Meeting decided on increasing of company capital and on issuing of the new shares and extention of the Board of Directors to seven members 25 March 1996 IOC Consortium members AgipPetroli, Conoco and Shell bought new issued shares 10 January 1997 Launch of the isomerisation unit in the Kralupy refinery 25 March 1998 Conoco President s Award for Safety and Environmental Protection Improvements 5 December 1999 Launch of the visbreaking unit at the Litvínov refinery April 2000 Business Leaders Forum s Health and Environment Award 21 April 2001 Launch of the FCC unit at the Kralupy refinery 27 July 2001 Certification under ISO 9001 and ISO August 2003 Transition to processing refinery cost centre 10 February 2005 Completion of the Clean Fuels 2005 programme 25 October 2005 Health-supporting Company Award received 29 December 2006 Completion of Biofuels programme Important planned projects after 2006 Completion of Clean Fuel programme Refinery Margin Optimisation Fulfilment of the so-called ecology legislation requirements Financial performance (CZK billion) Year I VII VIII XII Mode Merchandise Processing Turnover 36,6 39,0 27,3 31,6 51,1 46,8 40,7 26,0 6,8 8,9 9,3 Net profit 0,86 2,03 1,96 1,48 2,52-0,06-0,74 0,32 0,01 0,02 0,26 Investments 0,31 0,98 1,84 4,33 4,99 2,47 1,18 0,83 0,93 0,48 Long term assets value 5,38 5,89 7,09 10,9 15,2 16,6 16,5 16,3 15,8 15,1 Processed crude oil (million tonnes) 6,83 6,35 6,01 5,29 5,16 5,42 5,60 5,95 6,03 7,10 3,25 2,70

6 ČESKÁ RAFINÉRSKÁ Refinery of the Third Millenium 4 / 5 Health, Safety, Environmental Protection and Quality Health, safety, environmental protection and quality have been a permanent priority of Česká rafinérská s activities since the setting-up of the Company. A number of programmes and projects to educate employees and motivate responsible behaviour in the areas of health protection and environmentally friendly approaches have been implemented. The accident frequency rate, the number and consequences of fires and other emergencies with an impact on health and environment quality have been reduced since the Company s establishment. An extensive long-term programme of equipment integrity and environmental protection has brought about a significant increase in operational reliability and improvements in protection of employees health and the environment in the surroundings of production plants. Quality Management is focused on systems implemented within the Company and harmonising the various production and non-production processes, and on establishing transparent relationships and proceedings with documents, including communication with internal and external customers. Laboratories have performed the circle test worldwide. Periodically executed certification checks these systems functionality. Certificates and awards: ISO 9001:2001 Quality Management System ISO 14001:2004 Environmental Management Systems Responsible Care Safe Company Health and Safety Management System Conoco President s Safety and Environmental Protection Improvements Award (1998) Shell plaques for achievement of safety milestones Business Leaders Forum s Health and Environment Award (2000) Best Practise Program Award Noise Stop (2005)

7 Česká rafinérská s employees are committed to environmental conservation focusing on the levels of gaseous emissions, industrial noise, the purity of wastewater effluents and the amount of solid waste. For many parameters, Česká rafinérská is far below the limits required by the applicable laws. Low-sulphur and since 2001 unleaded motor vehicle fuels with a low content of aromatic compounds contribute to the improvement of the environment in cities and other locations with high-density motor vehicle traffic. Česká rafinérská has been implementing a host of environmental programmes and projects: Programmes Review of projects having an impact on the environment Implementation of tools aimed at meeting legal requirements Education of employees on responsible environmental behaviour, publication of an Environmental Charter Modernization of the production process scheme Lead Detection And Repair (LDAR) programme Cessation of leaded petrol production Production of low-sulphur fuels, as required by law Production of motor fuels with bio-components Founder and ongoing support for environmental centres in Most and Kralupy nad Vltavou Projects: Installation of double seals on the roofs of storage tanks for crude and feedstock, semi-finished products and finished products Refurbishment of the loading bays Recovery of volatile organic compound vapours Reduction of noise emissions Separate disposal of wastewater Replacement of wastewater drainage systems Upgrade of the wastewater treatment plant Overhaul of the Claus unit and construction of incinerators for the elimination of sulphurous components Construction of a system for the mixing and distribution of purified refinery gas Replacement of liquid fuel with gaseous fuel Installation of equipment for continuous monitoring of outlet gases

8 History: Litvínov - Záluží Refinery 1939 Commencement of construction work 1942 Launch of petrol production from Most brown coal Allied forces air raids interrupted production 1945 Post-war resumption of engine fuel production 1951 Concurrent oil and coal processing 1965 Commencement of supply through the Druzhba oil pipeline 1967 Atmospheric-vacuum distillation put into operation 1972 Hydrogenation coal processing discontinued Units of the NRL complex put into operation 1989 Launch of a new hydrocracking unit 1995 Launch of continuous reformer CCR 1996 Incorporation of the Litvínov refinery into Česká rafinérská 1996 Fire at E, F, G tank farms 1999 Launch of visbreaking unit 2004 Gas oil hydrotreater and chamber 5, 6 up-grading, segregation project 2006 Up loading, storage and blending facility construction to produce biofuels. Chamber 11 restarting. At the present time, the Litvínov refinery is a comprehensive state-of-the-art refinery with high hydrogenation capacity, operating two oil distillation units and four conversion units, and a number of technological facilities that improve the quality of primary distilling products. The total capacity amounts to 5.4 million tonnes of sour crude oil, flowing in through the Druzhba or IKL oil pipeline. Alongside engine fuel production, a significant volume is represented by production of feedstock for CHEMOPETROL petrochemical production, located at the same site. In addition to these strategic products, other important products include fuel oils, asphalts, sulphur and oil hydrogenates. Technological processes control is overseen in a modern control room that provides a safe and well-equipped environment for operators and process engineers. Quality control is carried out in state-of-the-art laboratories. Truck tanker and railway tanker loading facilities serve for the dispatch of products. Some fuels are transported through a pipeline system to various large scale fuel storage sites all over the Czech Republic.

9 ČESKÁ RAFINÉRSKÁ Refinery of the Third Millenium 6 / 7 / 8 / 9 Production Units Unit name Year Capacity (kt/y) Licensor Hydrogenation chambers Atmospheric distillation (AVD) ,752 Vacuum distillation (AVD) ,077 Semi-regenerative reforming Atmospheric distillation (NRL) ,697 Hydrorefining (NRL) ,234 Isomeration UOP Asphalt blowing Vacuum distillation (PSP) ,752 UOP Hydrocracker ,095 UOP Continuous catalyser regeneration reforming IFP Visbreaker SGSI Claus units II 1981, III 1987, IV Process Chart of Litvínov- Záluží Refinery Desulphurization LPG Crucial products of Litvinov refinery are middle destilates, namely Diesel. Important products are the feedstocks for petrochemical units CRUDE OIL CRUDE OIL Crude atmospheric distillation NRL Crude atmospheric distillation AVD Vacuum distillation AVD Vacuum distillation PSP Naphta hydrotreater Kerosene hydrotreater Gas oil hydrotreater 1 Gas oil hydrotreater 2 Redistillation Bitumen blower Isomeration Reforming Hydrocracker Hydrocracker chambers Visbreaker Sulphur LPG Base lubes Heating oils Bitumen Diesel Mogases Partial oxidation Steam cracker

10 Litvínov-Záluží Refinery History: Kralupy Refinery Operation of the Kralupy kerosene factory, destroyed by an air raid in Operation was not resumed 1964 Government decision to construct the Central Bohemia refinery 1969 Commencement of construction of the Kralupy New Refinery (NRK) on the premises of state-owned Kaučuk 1975 Launch of hydroskimming refinery s operation 1981 Construction and launch of the MTBE unit 1997 Launch of the isomeration unit s operation 2001 Launch of the FCC complex s operation 2004 Gas oil hydrotreater up-grading 2005 Launch of the FCC gasoline splitter 2006 Uploading, storage and blending facility construction to produce biofuels Since 2001 the Kralupy refinery has been a complex refinery with a state-of-the-art fluid catalytic cracking (FCC) unit, through which the original hydroskimming refinery with a capacity of 3.3 million tonnes of crude oil a year was further developed. The existence of the MTBE unit provides the possibility to produce high-octane lead-free petrol, while the equipment installed under the Clean Fuels programme allows the production of low-sulphur and sulphur-free fuels. The Kralupy refinery produces the JET A1 aviation fuel used at Prague international airport. The Kralupy refinery processes low-sulphur crude oil transported through the IKL/TAL oil pipeline from Trieste via Vohburg to Nelahozeves and Moravian crude oil supplied via Druzhba pipeline. The main dispatching channels from the Kralupy refinery are by road tankers, then railway tanks and, to a lesser extent, pipeline transportation. The Kralupy refinery is controlled from a modern control room, and great attention is paid to ensuring safe and efficient operation of the refinery facilities with regard to the environment in its surroundings.

11 ČESKÁ RAFINÉRSKÁ Refinery of the Third Millenium 10 / 11 / 12 / 13 Production Units Unit name Year Capacity (kt/yr) Licensor Atmospheric distillation ,369 Hydrorefining ,330 Semi-regenerative reforming Claus MTBE Hüls Isomeration UOP Fluid catalytic cracking ,387 UOP FCC petrol separation SGSI Selective hydrodesulphuration Axens Process Chart of Kralupy Refinery Desulphurization Claus Isomeration LPG Sulphur LPG Since 2001 Kralupy refinery is a complex conversion refinery with modern fluid catalytical cracker (FCC) allowing to produce predominantly motor gasolines. CRUDE OIL Crude atmospheric distillation Naphta hydrotreater Kerosene hydrotreater Gas oil hydrotreater Redistillation Reforming Redistillation Mogases Jet Propylene Diesel Fluid catalytic cracking 3 cut splitter Selective hydrogenation RAFINATE I Methanol / Ethanol Vacuum distillation MTBE/ETBE MTBE / ETBE Heating oils

12 ČESKÁ RAFINÉRSKÁ Refinery of the Third Millenium 14 / 15 Our Employees Kralupy Refinery Employees are the main asset of Česká rafinérská, and the Company s results depend on their performance. Therefore great attention is paid to employees. In the Company extended education programmes take place for all groups of employees. The opportunities to obtain know-how and best practise by shareholders companies are widely utilized. The staff members have the possibility to gain special knowledge and take part in training courses and study stays both in the Czech Republic and abroad. Great attention is paid to recruiting and employing promising young people, primarily university graduates. They are provided with the opportunity to take part in the graduate programme under which, in an individual scheme, they can gain practical knowledge and seek permanent employment and develop their knowledge. The relations with trade unions are on high level and are reflected in collective agreements corresponding to the standards of modern societies. Employee care programmes and projects Operator 2000 Multi-skilling expertise and rotation of operators system Foreman 2000 Education of shift managers and foremen Lab Assistant 2000 Training of laboratory assistants in new laboratory procedures Language 2000 Language training with the aim of obtaining Cambridge certification Shift Operator 2005 Risk matrix, non-standard situation solution Paleta Non-financial benefits system Education programmes implemented both in the Czech Republic and abroad Employee evaluation system Sociological survey mapping feedback from employees Graduate programme for new university graduates Monitoring and evaluation of employee health Safety in the office occupational accident prevention and mental balance Probeta anti-smoking programme NEVA anti-obesity programme AktiVITAlita exercise and healthy lifestyle programme Antistress programme Awards: Learning Company Health-supporting Company Employee afternoon picnic Česká rafinérská grand ball Theatre performances Saint Nicholas children s party and Children s Day Sport tournaments, competitions and matches

13 Employee education and personnel development is a crucial task of the Company.

14 ČESKÁ RAFINÉRSKÁ Refinery of the Third Millenium 16 / 17 Support for Regions Česká rafinérská carries out a wide range of activities pertaining to donorship, promotion of sports, culture, education, social life and support of the needy in the social and health area. The Company has the following two priorities: Support for youth development up to the age of 16 years. Priority allocation of finance contributions to the regions where the company operates, i.e. the Most and Litvínov region, and Kralupy nad Vltavou and surrounding areas. Česká rafinérská supports the two regions through long-term master agreements on cooperation, annually amended. The long term partners of Česká rafinerska are Most, Kralupy nad Vltavou, Litvínov, Veltrusy, Meziboří and Chvatěruby. With other municipalities the co-operation is provided via support of single project or activity. Most and Litvínov region Youth hockey teams in Litvínov Derby Days at the Most Hippodrome Lighting in the Most State Gallery Reconstruction of Radniční sklípek, Litvínov Construction of sports grounds in Meziboří Reconstruction of children s playground at Louka Cooperation with the Municipal Theatre, Most Ore Mountains and St. Michael festival in Litvínov Most Music Evenings Most Regional hospital, Most Hospice and other medical facility support Sport facility maintenance in Litvinov Kralupy, Veltrusy, Chvatěruby Green Belt Strachov, Kralupy Music festival: Dvořák s Nelahozeves Reconstruction of a municipal gym and construction of the cycle path and its turistic facility at Chvatěbury Modernisation of the Vltava culture centre, including safety playground in the garden, Kralupy Laying a new road surface and sewage line in Veltrusy Cultural events at Veltrusy Chateau IT classroom at Veltrusy primary school New welfare facilities at Veltrusy nursery school and primary school School canteen reconstruction at Veltrusy A day centre for pre-school children with allergies, Kralupy Over the time of its existence, Česká rafinérská has allocated tens of millions of Czech crowns

15 Green Belt Strachov, Kralupy Open House Day at the Litvínov site Česká rafinérská provided prompt financial assistance to the two regions stricken by the disastrous floods in 2002 and also assisted to the Horní Jiřetín municipality in the wake of destructive gales in On a nationwide scale, Česká rafinérská supports physically and mentally handicapped persons, as well as participating in a drug-prevention and road-traffic safety campaign. Česká rafinérská supports the regions and carries out its activities in line with the Social Responsible Company standard (CSR). and facilitated the implementation of a number of important projects and activities.

16 ČESKÁ RAFINÉRSKÁ Refinery of the Third Millenium 18 / 19 Processing Refinery The processing refinery mode, or cost-centre arrangement, means a functioning of a refinery company whereby shareholders marketing companies, so-called processors, buy crude oil and other raw materials which Česká rafinérská processes, and these companies take and sell the products. Every processor possesses a capacity proportionate to its equity interest and pays the company a processing fee. Česká rafinérská s shareholders decided to introduce the processing refinery mode from 1st August Upon the introduction of the processing arrangement, Česká rafinérská s business activities including foreign activity were terminated and handed over to the processor companies. The main criterion of our effort has become the quality of products, the availability and reliability of operating facilities and cost level. Česká rafinérská s processors are: Agip Česká republika, s.r.o. ConocoPhillips Czech Republic s.r.o. Shell Czech Republic a. s. UNIPETROL RAFINÉRIE a. s. Unipetrol Rafinérie Česká rafinérská s primary focus is now the quality of products, the availability and reliability of operating facilities, and cost level.

17 Beneficial for All The Česká rafinerska s products have wide use in the industrial and private sphere: Automotive gasoline spark engine fuel Aviation kerosene jet turbine fuel Diesel fuel fuel for Diesel engines LPG engine fuel or heating material Heating oil heating material Propylene for chemical synthesis Bitumens road surfacing or isolation material Sulhur raw material for various industries Oil Hydrogenate base oils for lubricant Feedstocks for steamcracker and POX of Chemopetrol Benefits to society Česká rafinérská s performance gives benefit to society by offering and maintaining work places and keeping the income level of the regions. By collecting and paying taxes it is a significant contributor to the state and local budgets. The company offers contracts to service providers and various material providing companies, mostly local ones, and contributes to regional development. Due to its contracts and relations with research and development, institutes and universities accelerate the science potential of the country. And the strategic importance of the company performance as leading local motor fuel producer remains doubtless.

18 ČESKÁ RAFINÉRSKÁ Refinery of the Third Millenium 20 A Company for the New Millennium The priority of engine fuel production over the next few years will be the correlation of their use with the emissions produced. Today s already virtually sulphur-free fuels will be further reformulated to reduce the content of aromatics and other compounds whose emissions have an impact on air quality. In close cooperation and interaction with engine manufacturers and vehicle design engineers, development will be focused on systems that, while retaining use properties, bring about a significant saving of engine fuels or permit their replacement by other fuels, currently called alternative fuels. Česká rafinérská will respond to the developing needs of the automotive industry and other consumers of refinery products, it will take measures aimed at ensuring that production of engine fuels and other energy carriers meets legislative requirements for the condition of production facilities and their impact on the working and surrounding environment. Even though crude oil reserves appear to be exhaustible, future production may focus on higher utilisation of energy components from renewable resources, for example, agricultural production. As regards the even more distant future, when, as futurologists predict, the internal combustion engine concept will have been superseded and replaced by, for example, hydrogen propulsion, the refinery can focus on a significantly more efficient utilisation of fossil fuels or other organic substances occurring in nature and be a feedstock base for the future petrochemical and chemical industry of new materials and syntheses of the future, providing substances with properties inconceivable today. However, even the refinery of the future will need educated, motivated and well-prepared employees to operate and maintain new production facilities and progressively develop them, as well as laboratory technicians to control quality and oversee logistics systems. The refinery of the future will perhaps be an even more organic part of the region in which it will operate, and its activity will be a guarantee of development and the prosperity of the region s inhabitants. In the future too Česká rafinérská wants to prosper, and meet the requirements of its owners and the expectations of its neighbours.

19 ČESKÁ RAFINÉRSKÁ, a. s. Záluží Litvínov 7 Czech Republic Kralupy Refinery O. Wichterleho Kralupy nad Vltavou Czech Republic [email protected]

20 Č E S K Á R A F I N É R S K Á