President Lukashenko sets tasks before Belarus’ oil workers

President Lukashenko sets tasks before Belarus’ oil workers

One of the most important events of the week was the meeting of Alexander Lukashenko on oil processing. It is the black gold of Belarus and it must shine, it is not acceptable to turn into a loss-making sector.

Belarus doesn’t stint on modernizing oil processing technologies. Nearly 3.5 billion dollars were invested into the sector in the last six years. However, it didn’t lead to the planned result.

Alexander Lukashenko, President of the Republic of Belarus:
To return back to the starting point and to go downstream (I see it from your suggestions today) won’t work. I am not going to take in the modernization we are planning to finish by certain time. Don’t even think of wrangling here.

The economy of Belarus was placed on the rails of oil processing in the Soviet times. An important economic sector of a country is a guarantee of political stability.

Alexander Lukashenko:
This question existed ever since the independence of Belarus. We must do everything to provide energetic independence and security of Belarus. It’s a strategic sector of the Republic, 13% of which are in industry and 17% are in export. However, its contribution to the Belarusian economy is decreasing. Oil processing turned into a loss-making sector which must be modernized.

The interest towards oil in Europe is gradually falling. The oil processing sector in Asia is developing quite quickly, As many as six million barrels per day. The sanctions on Russia have an effect on Belarusian oil processing sector. The mark up of Belarusian plants has decreased.

Georgy Grits, Deputy Chairman of the Belarusian Scientific and Industrial Association:
The oil prices will fall. We all saw the sanction wars. Belarus has a problem of its own - the relations with Russia, which is one of the main suppliers of oil.

As a result the balance is in minus, the added value in the GDP is just 1.5% and the contribution of two oil refinery plants can be compared with just one company as Beltelekom.

Alexander Lukashenko:
The prices on oil have fallen by 2.5 times, maybe even more. However, miscounts on determining the strategy of the sector’s development played a negative role. Incompetent preparation of projects, illiterate distribution of power and finances led to the increase of price and terms of building (up to five years in some cases). It is doubtful that the modernization of oil refineries will be finished in 2019 as it was declared before.

The principal demand of the President is two years for finishing modernization and increasing the depth of refinery. From 75% to 92%. A complex like this is already being built in Mozyr. The power of this plant will be up to 12 million tons of oil products per year.

Vitaly Pavlov, General Director of Mozyr Oil Refinery:
A complex of hydrocracking of heavy oil remainings is meant for increasing the depth of processing up to 90%% and increasing the output of oil products up to 65-66%.

The Belarusian government will help the oil processing sector to get back on its feet again. Naftan and Mozyr oil processing plants need 1 billion and 200 million dollars of investments for the two of them. Besides The bank sector there is a loan from China.

Alexander Demidov, General Director of OJSC “Naftan”:
 The usage of finances, economy and activities on decreasing the prime cost is all we can do, it is our task number one.

After modernization of the oil sector takes place, it will be possible to process oil of any quality, from different countries. And the profitability of the product itself will be beneficial, no matter what the quota and the mood of Russia are.

Georgy Grits:
There are no alternatives to the Russian supplies. However, there is security. At the level of 20% at least Belarus must have an alternative supplier.

However, Belarus needs to look into the future, to think about the so called light chemical products.

Igor Lyashenko, Chairman of the Belarusian State Concern for Oil and Chemistry:
The plants are concerning investment projects which will allow diversifying the received streams from traditional diesel, petrol in the direction of petrochemistry.

The settlement of Svisloch near Minsk is renowned for being the place where all the waste of Naftan is kept.

Vasily Kovalchuk, Deputy Director on prospective development and investment of Fossil Wax Plant:
The wax was technical before. It is not the final product. Now highly processed wax is produced.

Wax concentrate was bought by Europe for silly amounts of money. Having mastered the technical production of paraffin wax, they started to save 400 euros on one ton, and when they started to produced pure paraffin wax they started saving another 200 euros.

Vasily Kovalchuk:
Naftan is considering the processing of wax concentrate, maybe even from Russia, but heavy wax concentrate which haven’t been processed before.

The modernization of the sector was looked at from a strategic point of view and Alexander Kosinets, an experienced director and scientist, was trusted to take charge of the project. The main thing for Belarusian petrochemists now is not to miss the right time.

Photo taken from th Official Internet Portal of the President of The Republic of Belarus