Page 17 - FSUOGM Week 24

FSUOGM NEWS IN BRIEF FSUOGM

Tatneft begins planned supply during May by 9.4mn bpd versus
RUSSIA 9.7mn bpd supply cut. The group reduced
Gazprom starts installing maintenance work at April, to deliver a compliance rate of 89%.
Saudi Arabia and Russia achieved a rate at
water treatment systems at Nizhnekamsk refinery or near 100%, while other Gulf producers
came in above 90%,” the IEA said. Russia’s
Omsk refinery Russia’s Tatneft is undertaking a three-week compliance with the deal stood at 97%.
turnaround at the more than 10mn tonne
Oil production in the U.S. decreased by
The Gazprom Neft Omsk Refinery has begun per year (200,000 bpd) refinery of subsidiary a record 1.3mn bpd in May. It may fall by
installing flotation treatment systems at the site Taneco’s multiphase integrated refining and 0.9mn bpd in 2020 and by 0.3mn barrels
of its future “Biosphere” biological treatment petrochemical complex in Nizhnekamsk, 250 more in 2021 if higher oil prices don’t
facilities, currently under construction. km from Tatarstan’s capital city of Kazan. stimulate investment in the shale oil sector,
The biosphere will increase the efficiency The scheduled maintenance overhaul— the agency said.
of water treatments to 99.99%, thanks to which began on June 10 and will run to July Global oil supply shrank by 11.8mn bpd
which the Omsk Refinery will be able to 2—will include works to ensure the safe, in May due to a record output cut by OPEC
move over to virtually closed-cycle water reliable operation of process equipment and due to suspension of economies in the
consumption, reducing demands on local at the refinery’s 2.4mn-tpy sulfur dioxide U.S., Canada, and other states. The global
city wastewater treatment plants. The unique (SO2) visbreaking unit and 2mn-tpy SO2- oil output should shrink to 86.4mn bpd in
environmental Biosphere project forms part oil vacuum distillation unit, Tatneft said on June, the lowest point since the beginning of
of the Omsk Refinery’s full-scale development June 11. 2010, the IEA said.
programme, itself part of the holistic federal Scheduled major repairs during the Commercial reserves of oil and oil
“Clean Air” project, part of the national turnaround include the following: replacing products in countries of the Organisation
“Ecology” programme. The company’s total vacuum column nozzles, cleaning process for Economic Cooperation and
investments in the project stand at RUB19 deposits from unit equipment, ultrasonic Development (OECD) rose by 148.7mn
billion. Construction works are expected to be thickness-gauging of furnace coils, barrels to 3.137bn barrels in April,
completed in 2021. technical inspection of tanks, vessels, and exceeding their 5-year average figures by
The flotation system forms part of pipelines, hydraulic testing, modifying 208.3mn barrels, the agency said in the
the multi-stage water treatment process instrumentation and automation controls. report.
to be offered by the Biosphere, with all Particular attention will be paid during The global oil production should
industrial effluents and storm drainage maintenance work to ensure compliance contract by 7.2mn bpd in 2020 and rise
from the plant passing through mechanical, with sanitary and epidemiological standards by 1.7mn bpd in 2021 if the OPEC+
flotation and biological treatment facilities, for preventing proliferation of coronavirus restrictions soften and if countries outside
as well as membrane and charcoal filters, (COVID-19), Tatneft said. the alliance like Norway, Brazil, and Guyana
in turn. In the main part of the complex Per Taneco’s turnaround procedures, actively raise their production, the agency
— the bioreactor — water is mixed with a overhaul activities will be carried out said.
special sludge, containing microorganisms in a manner that enables minimising At the same time, the agency upgraded
that absorb oil-product residues. The equipment downtime while allowing all its forecast for the fall in oil output of
cleaned waster is then also disinfected work to be fully completed on installations countries outside OPEC in 2020, and it
with ultraviolet light and returned to the and interconnections. As such, operation now expects it to shrink by 3.1mn bpd, up
production cycle, while the recovered of other process units not involved in from 3.3mn bpd expected before. In 2021,
petroleum products are sent for recycling. the turnaround will continue to operate production outside OPEC may rise only
Thanks to the technology in the Biosphere, normally to ensure yields of petroleum by 0.8mn bpd if there is no investment
reusing this purified water will allow the products in accordance with the refinery’s in short-term projects or if the OPEC+
Omsk Refinery to make a 2.5-fold reduction approved production plan, according to the alliance does not ease its restrictions.
in its water consumption. company. The agency also downgraded its estimate
Cutting-edge pressure-flotation for contraction of demand for oil in 2020 to
technology will be deployed at the 8.1mn bpd taking into account the 17.8mn
Biosphere complex — with oil-product bpd contraction in April–June and an
residues being removed from the water by IEA: compliance with OPEC+ 11.4mn bpd contraction in July–December.
aerodynamic flows, in special hermetically Demand in October–December would be
sealed containers. Three of the nine flotation with cuts deal at 89% in lower by 3.8mn bpd y/y.
units envisaged under this project have In 2021, demand for oil should jump
already been installed at the construction May by 5.7mn bpd, showing a record annual
site. Company specialists have, prior to this, growth in the history as economies
also completed installation of equipment Compliance of the OPEC+ alliance with would be returning to their normal lives.
for the tank unit responsible for initial the oil output reduction deal under the new Nevertheless, oil consumption should be
mixing of the full volume of industrial water configuration reached 89% as the oil output lower by 2.4mn bpd than consumption in
prior to it being sent for subsequent water fell by 9.4mn barrels per day (bpd) in May 2019 due to low demand for jet fuel and
treatments. Installation of the disinfection with Saudi Arabia cutting production by 100% kerosene.
and biological treatment units remains of the agreed level and Russia by 97%, the The expected increase of oil supply
ongoing. Omsk-based contractors are International Energy Agency (IEA) said in its of 1.7mn bpd in 2021 is not even close
among those involved in these works. June report on June 16. to the forecasted increase in demand, so
“For its part, OPEC+ got off to a strong the market provides opportunities for
GAZPROM NEFT (RUSSIA), June 10 2020 start during the first month of its historic expansion of oil production faster than

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