“On Construction of an Oil Refining Factory with Annual Capacity of 6,000,000 tons for Raw Materials in the Krasnoarmeysky Municipal District of the Saratov Region”
It is planned to construct the factory at the site of total area about 1,016 hectares which is situated in 4 kilometers from Krasnoarmeysk town, the administrative center of the Krasnoarmeysky municipal district of the Saratov Region. The favorable geographical location of the chosen site ensures guaranteed supply of raw materials for the factory, as well as a full-scale transport and logistic infrastructure for shipping of trade goods by water, railway and motor transport.
In order to achieve the enterprise’s long-term competitiveness it is planned to choose the newest technological form of oil refining factory directed at the manufacture of European level quality oil products with the high added cost and export potential to be compatible with the Euro-4 and Euro-5 international quality standards, with expected depth of oil refining of more than 95 percent and the maximum indicator of light mineral oil selection.
As the result of this the Saratov Region will get:
- High-performance enterprise with international competitiveness, producing “oil products basket” of European quality with high added cost and export potential satisfying the international market and ecological standards.
- Oil products of high quality produced in accordance with advanced European quality standards.
- Additional employment – 617 persons.
- Annual revenues – 11.5 billion rubles.
- Development of related sectors (oil extraction, petrochemistry) and infrastructure of the region and of its chemical science.
- Facilitation of attracting investments into the Krasnoarmeysky municipal district of the Saratov Region.
| Capital investments | |
| Costs | Amount, million rubles |
| I. Construction of the 1st start-up facility | |
| Engineering services on conduct of exploratory design | 3.0 |
| Engineering services on feasibility study | 30.1 |
| Consulting services on selection of project management team | 0.9 |
| Consulting services on project management | 48.1 |
| Elaboration of design documents | 150.5 |
| Expertise of the project | 30.1 |
| Equipment and building and assembly jobs | 47,090.9 |
| Engineering services on adjusting and start-up proceedings | 18.1 |
| TOTAL for section I: | 47,371.7 |
| II. Construction of the 2nd start-up facility | |
| Equipment and building and assembly jobs | 53,560.2 |
| Engineering services on adjusting and start-up proceedings | 27.1 |
| Consulting services on project management | 72.2 |
| TOTAL for section II: | 53,659.5 |
| TOTAL FOR SECTIONS: | 101,031.2 |
| Basic techno-economic indices | |
| Annual raw material processing, million tons | 6.0 |
| Range of produced goods: | |
| diesel fuel (Euro-4, Euro-5) | 40.3% |
| motor petrol (Euro -3, Euro -4, Euro -5) | 42.5% |
| coke | 6.1% |
| concentrated propylene | 2.0% |
| modified bitumen | 3.3% |
| liquefied gas | 3.3% |
| residual oil | 2.5% |
| Total number of employees, persons | 617 |
| Aggregate sale proceeds, million rubles | 96,264.9 |
| Net cost of the products, million rubles | 50,762.7 |
| Profit tax, million rubles | 4,491.9 |
| Net income, million rubles | 17,967.9 |
| Efficiency, % | 35% |
| Investment efficiency indices | |
| Payback period of the project | |
| – excluding discounting | 10 years 10 months |
| – adjusted for discounting | 17 years 10 months |
| Net present value (NPV) of the project, million rubles | 25,988.9 |
| Profitability index of investments (PI) | 1.26 |
| Accounting rate of return (ARR) | 0.23 |
| Internal rate of return (IRR), % | 76 |