The oil refining industry is one of the most important integral components of the Ukrainian fuel & power complex. It accounts for 2.3% of the total manufacturing output in the country. Six enterprises contribute the bulk to production in the oil refining
ADDING OIL TO PROBLEMS
The oil refining industry is one of the most important integral components of the Ukrainian fuel & power complex. It accounts for 2.3% of the total manufacturing output in the country. Six enterprises contribute the bulk to production in the oil refining business. These are JSC Ukrtatnafta (Kremenchug oil refinery), JSC LiNOS (Lisichansk oil refinery), JSC KhersonNeftePererabotka (Kherson oil refinery), JSC Galychyna Oil Refining Complex (Drogobych oil refinery), JSC Odessa Oil Refinery and JSC Neftekhimik Prikarpatya (Nadvornya oil refinery). These refineries own about 90% of the total tangible productive assets, give jobs to 75% of the total number of main workers and account for 85% of the total output in the oil refining industry in Ukraine.
Kremenchug oil refinery
Kremenchug oil refinery is the most powerful refinery of Ukraine controlling 35.5% of the total oil-refining capacities in the country. Facilities of this company have enough capacity to refine 18,600,000 tonnes of oil per year.
In 1995 Kremenchug oil refinery was transformed into joint-stock company Ukrtatnafta in accordance with agreement between the governments of Ukraine and the Republic of Tatarstan. JSC Tatneft, Tatarstan, holds a large interest in this Ukrainian enterprise. Tatneft can obtain additional 8% of Ukrtatnafta’s share capital as settlement for debts on crude oil supplies to Ukraine. As a result, Ukraine and Tatarstan will own about equal 35% stakes in this enterprise.
In 1999 the quantity of oil supplied to Kremenchug oil refinery totaled 5,097,600 tonnes including 1,716,000 tonnes of Ukrainian crude oil and 3,381,700 tonnes of imported oil. More than half of the total imported crude oil (52.61%) came from Russia.
During this period the refinery processed 5,248,900 tonnes of oil (50.55% of the total quantity refined in Ukraine) producing 1,208,600 tonnes of gasoline, 1,502,400 tonnes of diesel oil and 1,462,200 tonnes of fuel oil.
It is notable that in September 1999 Kremenchug oil refinery attained the refining rate of 14 to 15 thousand tonnes of oil per day (around 10,000 tonnes of Russian oil and 4,000 to 5,000 tonnes of Ukrainian crude oil daily). However, specialists have calculated that the refinery needs to process an average of 18 to 20,000 tonnes of oil per day to get high rates of return.
Although the refinery functioned during all the 365 days in 1999, only 29.4% of its productive capacities were utilized.
Lisichansk oil refinery
Lisichansk oil refinery ranks the second in Ukraine. This company has capacities to refine up to 16,000,000 tonnes of crude oil per year (30.5% of the total in Ukraine) with a 68.4% depth of refining.
The refinery has productive facilities for deep oil refining (secondary processes) including equipment for gasoline reforming (with capacity for 2,300,000 tonnes per year), for hydrorefining of diesel oil and kerosene (4,100,000 tonnes per year) and ethylene production (240,000 tonnes annually).
In 1999 some 463,600 tonnes of oil were supplied to the refinery. Most of this oil was imported, namely 437,800 tonnes arrived from Russia and 20,000 tonnes from Kazakhstan. It is notable that the refinery paid for 61.89% of the imported oil in cash unlike in case of the other Ukrainian refineries that take advantage of tolling transactions. The quantity of oil refined during this period totaled 528,600 tonnes. Output figures were as follows: 134,500 tonnes of gasoline, 178,600 tonnes of diesel oil and 188,100 tonnes of fuel oil.
It should be mentioned that LiNOS actually functioned only in January and April 1999. After a long downtime, operations were renewed in early November. The State Reserve of Ukraine supplied oil to the refinery. The latter began processing the lowest possible quantities of crude oil (100,000 tonnes) necessary to keep the production process alive. By the way, to reach positive returns on production, Lisichansk oil refinery has to process no less than 500,000 tonnes of oil per month. However, on November 23 the refinery once again ceased its operations mainly due to shortage of crude oil. Thus, only 3.6% of the refinery’s productive capacities were used during the year.
The total downtime of this company amounted to 326 days.
LiNOS’ total accounts payable exceed UAH 1 billion including a UAH 580 million debt to business entities and a UAH 208.8 million debt on WestDeutsche LandesBank’s loan. Since 1992, the arrears to Rosneft oil company have built up to USD 12,000,000.
Besides, the refinery has accounts payable to the state, although at the end of December 1999 the Verkhovna Rada (Supreme Council) passed the law on restructuring of tax debts of open joint-stock company LiNOS for the period until December 31, 2005. The restructuring plan deals with the debt amount, fines and various penalty fees accrued on taxes and compulsory payments from April 1, 1997 till September 30, 1999 and unsettled as of the moment of the law’s coming into force. The restructured debt shall be repaid in equal installments starting January 1, 2001.
At the end of 1999 the President of Ukraine signed a decree obliging the government to consider whether OJSC LiNOS can be transformed into a basic company to refine Ukrainian crude oil into oil products for the needs of the Ministry of Energy and the Ministry of Defense.
Concerning privatization of OJSC LiNOS, back in November 1999 the State Property Fund issued an order approving the final distribution plan for shares in the refinery. Until July 2007 the state will control 50% of shares in the company. A 17.41% interest will be sold via PFTS (over-the-counter trading system).
At the moment, 32.59% of the enterprise’s shares have already been realized. Out of this quantity, a 9.96% stake was purchased by the refinery’s employees on privileged terms, a 19.04% interest was sold at a certificate auction for privatization property certificates and a 3.59% interest went to the stock exchange.
The refinery has the authorized capital of UAH 9,887,421 with par value of a share at UAH 0.01.
Kherson oil refinery
Kherson oil refinery has the capacity for processing 7,100,000 tonnes of oil per year and ranks the third in Ukraine (accounting for 13.6% of the total capacities in the country). The enterprise has the necessary facilities for catalytic reforming (with the maximum capacity for 680,000 tonnes of light oil products per year) and units for production of coke (630,000 tonnes) and bitumen (350,000 tonnes).
In addition, construction of 1,500,000 tonne per year units for hydrorefining of diesel oil is under way at the refinery. Successful completion of this project will boost diesel oil’s extraction from 18% to 30% of the total oil processed. Sulfur contents in diesel oil are planned at the European standard of 0.05%. In addition to the main process of diesel oil hydrorefining, the units will also be engaged in concurrent technological processes, such as sulfur production (24,000 tonnes per year); salvation of acid residuals and monoethanol cleanup of process gases to remove hydrogen sulfide. Construction works are scheduled to take no more than 2 years.
In 1999 Kherson oil refinery received 1,299,100 tonnes of oil, 88.62% of which were imported to Ukraine. The primary suppliers of crude oil are Russia’s Lukoil company and Kazakhstan-based oil producers. Supplies of Ukrainian crude oil amounted to 147,900 tonnes in 1999. JSC Ukrnafta is the primary supplier of Ukrainian oil to Kherson refinery.
In 1999 Kherson oil refinery processed 867,900 tonnes of crude oil producing 144,000 tonnes of gasoline, 283,300 tonnes of diesel oil and 329,200 tonnes of fuel oil. Only 11.1% of the refinery’s productive capacities were actually employed. From December 20, 1999, till January 2000 the refinery sat idle due to problems with worn-out equipment. The 1999 total downtime equaled 164 days.
Concerning the owners of JSC Kherson Oil Refinery, in July 1999 the National Agency for Management over State-Owned Corporate Rights conducted a tender for the right to manage the state-owned interest (50% plus 1 share) and another 6% of the unsold share capital of the refinery. Trade House UkrNefteProduct won the tender. By the way, the latter company was founded by Velta, Site Management and joint-stock chemical company UkrNefteProduct. However, October 1999 saw another astonishing change in the story with privatization of KhersonNeftePererabotka. In compliance with decree of the Cabinet dated October 7, 1999, Kazakhstan’s Kazneft company was assigned and authorized to manage the state-owned 56% interest in OJSC KhersonNefte-Pererabotka. The National Agency for Management over State-Owned Corporate Rights was obliged to work out and approve the terms for transfer of the state-owned stake to Kazneft. According to these terms, the Kazakh company has to annually supply 3,000,000 tonnes of oil to the refinery and to upgrade its facilities, that is to reconstruct the gasoline-reforming unit to produce A-92 and A-95 high-octane gasolines and to construct a hydrorefining unit for diesel oil. It is anticipated that these measures will boost sale revenues to no less than UAH 100,000,000 per year, as well as enable repayment of the refinery’s outstanding debts on electric power and workers’ wages. In October 1999 the president of Kazneft Mr. Nurlan Balgimbayev engaged in negotiations with the head of Russian holding company Alliance Group Mr. Ziya Bazhayev. In consequence, Alliance Group was appointed the operator of the joint Ukrainian-Kazakh project and the refinery was to receive combined oil supplies from both Kazakhstan and Russia.
However, decree of the Ukraine’s Cabinet of Ministers of January 24, 2000 rendered void the previous government’s decision as regards Kazneft and OJSC KhersonNefte-Pererabotka. The managers and other workers of the refinery currently own 24% of the company’s shares, financial agents hold 20% of the company’s share capital purchased for PPCs at certificate auctions and at the stock exchange.
The authorized capital of OJSC KhersonNeftePererabotka amounts to UAH 6,583,000.
Drogobych Oil Refinery
Galychyna oil refinery of Drogobych has productive capacity to refine 4,300,000 tonnes of oil per year (8.2% of the total Ukrainian capacities) with a 64% depth of refining. The oil refinery has facilities for primary oil refining, thermal cracking, catalytic reforming, production of bitumen, paraffin and coke.
The main products of this refinery are motor gasoline, diesel oil, heating fuel, liquefied gas, bitumen, paraffin (including refined paraffin for food processing), electrode coke and fuel oil.
In addition, the project of refinery’s technical upgrade envisions construction of a fuel complex to produce A-95 and A-98 high-octane gasolines, along with a plant for isomerization of gasoline and hydrorefining of diesel oil. Besides, there is a project for construction of combined unit for environment-friendly high-octane gasoline. It is planned to back this project with money from the Japanese line of credit under security of the Ukrainian government.
In 1998 Galychyna refinery reported a UAH 15,772,000 balance-sheet profit, 62% down from the 1997’ figure. The 1998 output totaled UAH 162,646,000 and sales – UAH 220,689,000. The rate of return on main production lowered from 29.4% in 1997 to 9.6% in 1998. In 1998 the refinery utilized only 14% of its total productive capacities and processed 700,000 tonnes of oil.
In January-September 1999 oil supplies to Galychyna refinery amounted to 802,800 tonnes, 74.96% of which was imported from Russia (491,900 tonnes). Kazakhstan-based oil producers supplied 109,900 tonnes of crude oil to the refinery in 1999. Imports of crude oil were mainly conducted under tolling contracts (52.59% of the total amount imported). Supplies of Ukrainian crude oil to the refinery made up 25.04% of the total figure.
During the period of January-December 1999 Galychyna refined 828,100 tonnes of oil producing 160,200 tonnes of gasoline, 225,300 tonnes of diesel oil and 263,500 tonnes of fuel oil. in 1999 51% of the refinery’s productive capacities were utilized, which is the best performance in the Ukrainian oil refining industry last year.
Total downtime came only to 29 days.
Good news for this refinery was the official commissioning of the first section of Zhulin-Drogobych oil pipeline in December 1999. The pipeline belongs to Druzhba company and will convey crude oil to Galychyna oil refinery.
As regards the owners of this refinery, several companies were among the contestants claiming the right to manage a state-owned 25% interest in the refinery. One of the contestants was the closed joint-stock company Economic Union Galychyna, which already controls a 40.48% stake (it is notable that a 30% interest was purchased at the investment tender). The second contender was Avias company, member of Sentoza corporation (which is one of Privatbank’s shareholders). The other interested companies included Watford Petroleum Group, Russia’s Slavneft and Tyumen Oil Company, as well as Ukraine’s Alpha-Nafta. However, in October 1999 the state-owned stake in Galychyna oil refinery was assigned to joint venture Shelton. The other shareholders in Galychyna oil refinery comprise OLgroup concern (a 17% interest) and joint-stock company Gosinvest Ukrainy (holding a 10% interest).
Table 1. Production performance of Ukrainian oil refineries in 1999 (‘000 tonnes if other is not specified)
Indicators |
Supplies of crude oil |
Output |
Oil processing |
Supplies (% of the total quantity) |
Extraction, % |
Utilization of capacities (%) |
Downtime (days) |
||||||
Gasoline |
Diesel oil |
Fuel oil |
Gasoline |
Diesel oil |
Fuel oil |
||||||||
Kremenchug oil refinery |
|||||||||||||
Subtotal Ukrainian crude oil |
1,716.0 |
406.8 |
505.7 |
492.2 |
33.66 |
||||||||
Including state-owned oil |
1,091.9 |
258.8 |
321.8 |
313.2 |
21.42 |
||||||||
Tolling oil |
624.1 |
148.0 |
183.9 |
179.0 |
12.24 |
||||||||
Subtotal imported crude oil |
3,381.7 |
801.8 |
996.7 |
970.0 |
66.34 |
||||||||
Including from Russia |
2,681.7 |
52.61 |
|||||||||||
from Kazakhstan |
700.0 |
13.73 |
|||||||||||
Settled for in money |
1,763.0 |
34.58 |
|||||||||||
Purchased via tolling |
3,334.6 |
65.42 |
|||||||||||
Total |
5,097.6 |
1,208.6 |
1,502.4 |
1,462.2 |
5,248.9 |
100.00 |
23.0 |
28.6 |
27.9 |
29.4 |
0 |
||
Lisichansk oil refinery |
|||||||||||||
Subtotal Ukrainian crude oil |
5.8 |
1.7 |
2.2 |
2.3 |
1.24 |
||||||||
Subtotal imported crude oil |
457.8 |
132.8 |
176.4 |
185.8 |
98.76 |
||||||||
Including from Russia |
437.8 |
94.45 |
|||||||||||
from Kazakhstan |
20.0 |
4.31 |
|||||||||||
Settled for in money |
286.9 |
61.89 |
|||||||||||
Purchased via tolling |
176.6 |
38.11 |
|||||||||||
Total |
463.6 |
134.5 |
178.6 |
188.1 |
528.6 |
100.00 |
25.4 |
33.8 |
35.6 |
3.6 |
326 |
||
Kherson oil refinery |
|||||||||||||
Subtotal Ukrainian crude oil |
147.9 |
16.4 |
32.3 |
37.5 |
11.38 |
||||||||
Including state-owned oil |
147.9 |
16.4 |
32.3 |
37.5 |
11.38 |
||||||||
Tolling oil |
0.0 |
0.0 |
0.0 |
0.0 |
0.00 |
||||||||
Subtotal imported crude oil |
1,151.2 |
128.0 |
251.0 |
291.7 |
88.62 |
||||||||
Including from Russia |
542.5 |
41.76 |
|||||||||||
from Kazakhstan |
608.7 |
46.86 |
|||||||||||
Settled for in money |
0.0 |
0.00 |
|||||||||||
Purchased via tolling |
1,299.1 |
100.00 |
|||||||||||
Total |
1,299.1 |
144.4 |
283.3 |
329.2 |
867.9 |
100.00 |
16.6 |
32.6 |
37.9 |
11.1 |
164 |
||
Odessa oil refinery |
|||||||||||||
Subtotal Ukrainian crude oil, including tolling oil |
14.9 |
1.3 |
2.2 |
3.9 |
0.48 |
||||||||
state-owned oil |
0.0 |
0.0 |
0.0 |
0.0 |
0.00 |
||||||||
Subtotal imported crude oil |
3,078.1 |
271.0 |
461.4 |
798.0 |
99.52 |
||||||||
Including from Russia |
3,078.1 |
99.52 |
|||||||||||
from Kazakhstan |
0.0 |
0.00 |
|||||||||||
Settled for in money |
0.0 |
0.00 |
|||||||||||
Purchased via tolling |
3,093.1 |
100.00 |
|||||||||||
Total |
3,093.0 |
272.3 |
463.6 |
801.9 |
1,664.4 |
100.00 |
16.4 |
27.9 |
48.2 |
46.4 |
69 |
||
Drogobych oil refinery |
|||||||||||||
Subtotal Ukrainian crude oil |
201.0 |
40.1 |
56.4 |
66.0 |
25.04 |
||||||||
Including state-owned oil |
145.2 |
29.0 |
40.7 |
47.7 |
18.08 |
||||||||
Tolling oil |
55.8 |
11.1 |
15.7 |
18.3 |
6.95 |
||||||||
Subtotal imported crude oil |
601.8 |
120.1 |
168.9 |
197.5 |
74.96 |
||||||||
Including from Russia |
491.9 |
61.27 |
|||||||||||
from Kazakhstan |
109.9 |
13.69 |
|||||||||||
Settled for in money |
380.6 |
47.41 |
|||||||||||
Purchased via tolling |
422.2 |
52.59 |
|||||||||||
Total |
802.8 |
160.2 |
225.3 |
263.5 |
828.1 |
100.00 |
19.3 |
27.2 |
31.8 |
51.0 |
29 |
Nadvornya oil refinery |
|||||||||||||
Subtotal Ukrainian crude oil |
514.5 |
88.4 |
172.5 |
218.3 |
41.48 |
||||||||
Including state-owned oil |
177.4 |
30.5 |
59.5 |
75.3 |
14.30 |
||||||||
Tolling oil |
337.1 |
57.9 |
113.0 |
143.0 |
27.18 |
||||||||
Subtotal imported crude oil |
725.9 |
124.8 |
243.4 |
307.9 |
58.52 |
||||||||
Including from Russia |
591.1 |
47.66 |
|||||||||||
from Kazakhstan |
134.8 |
10.86 |
|||||||||||
Settled for in money |
80.1 |
6.46 |
|||||||||||
Purchased via tolling |
1160.3 |
93.54 |
|||||||||||
Total |
1,240.4 |
213.2 |
415.9 |
526.2 |
1,246.1 |
100.00 |
17.1 |
33.4 |
42.2 |
29.6 |
52 |
||
Total for all the Ukrainian refineries |
|||||||||||||
Subtotal Ukrainian crude oil |
2,600.0 |
554.7 |
771.3 |
820.2 |
21.67 |
||||||||
Including state-owned oil |
1,562.3 |
334.7 |
454.3 |
473.7 |
13.02 |
||||||||
Tolling oil |
1,037.7 |
220.0 |
317.0 |
346.5 |
8.65 |
||||||||
Subtotal imported crude oil |
9,396.4 |
1,578.5 |
2,297.8 |
2,750.9 |
78.33 |
||||||||
Including from Russia |
7,823.1 |
65.21 |
|||||||||||
from Kazakhstan |
1,573.3 |
13.12 |
|||||||||||
Settled for in money |
2,510.6 |
20.93 |
|||||||||||
Purchased via tolling |
9,485.8 |
79.07 |
|||||||||||
TOTAL |
11,996.4 |
2,133.2 |
3,069.1 |
3,571.1 |
10,384.0 |
100.00 |
20.5 |
29.6 |
34.4 |
21.1 |
640 |
Odessa oil refinery
Odessa oil refinery is capable of processing 3,900,000 tonnes of oil annually (7.4% of the overall Ukrainian oil-refining capacities). It owns units for primary oil refining and catalytic reforming with capacity for 412,000 tonnes per year, a complex for bitumen production with capacity for 188,000 tonnes per year, units for hydrorefining of diesel oil and jet engine fuel. The refinery specializes in production of motor gasoline, diesel oil, fuel oil, bitumen and liquefied gas.
Odessa oil refinery has completed reconstruction of the hydrorefining complex for diesel oil and jet engine fuel with the capacity for 1,500,000 tonnes per year (costing USD 52,000,000). Italian company Ctip was in charge of the construction. Simultaneously with works on the hydrorefining complex, Ctip reconstructed the whole oil refinery.
Besides, Odessa oil refinery plans construction of catalytic cracking complex and reconstruction of catalytic reforming to equip it with isomerization units (increasing the depth of refining to 80%). Despite the measures taken, depreciation of the refinery’s tangible fixed assets exceeds some 70%.
In 1998 the refinery produced 294,400 tonnes of motor gasoline (worth UAH 143,710,000), 594,600 tonnes of diesel oil (worth UAH 198,748,400), 2,200 tonnes of fuel for jet engines (UAH 808,200) and 31,900 tonnes of bitumen (UAH 7,040,400).
The refinery’s sales in 1998 amounted to UAH 85,824,900. That year Odessa oil refinery suffered financial losses amounting to UAH 1,331,800. Accounts receivable of the refinery equal UAH 14,294,700, accounts payable – UAH 9,111,100 and rate of return on production – 2.56%.
In 1999 some 3,093,000 tonnes of crude oil were supplied to the refinery. Out of this quantity, Russian oil accounted for 99.52% of the total and was supplied exclusively via tolling schemes. Ukrainian oil was also supplied using the tolling transactions, though the quantity supplied was much lower and amounted to only 14,900 tonnes. In 1999 the refinery processed 1,664,400 tonnes of crude oil. The output figures were as follows: 272,300 tonnes of gasoline, 463,600 tonnes of diesel oil and 801,900 tonnes of fuel oil. In October 1999 the refinery was subject to the scheduled repair. As a result, the amount of oil refined was 53.9% down against the October 1998′ figure. On the whole, utilization of the refinery’s productive capacities was at 46.4%. The aggregate downtime in 1999 came to 69 days.
The controlling interest (51.9%) in OJSC Odessa Oil Refinery is owned by Russia’s LUK-Synthesis Oil Limited (a member with Lukoil Group). According to the tender’s conditions, LUK-Synthesis Oil Limited shall invest USD 1,200,000 in refinery’s reconstruction within a year and annually supply 2,400,000 tonnes of crude oil to the refinery for the period of 5 years. Besides, the owner shall not change the oil refinery’s specialization and is obliged to fulfill other tasks assigned by the Ukrainian government.
The state holds a 25%-interest in Odessa oil refinery. Some 8.13% of the shares have been sold on privileged terms, 14.87% were sold for privatization property certificates at certificate auctions and 0.1% of the shares have been put aside to be sold at the stock exchange.
The authorized capital of OJSC Odessa Oil Refinery amounts to UAH 2,201,959.53 with face value of a share equaling to UAH 0.01.
Nadvornya oil refinery
Productive capacities of Nadvornya oil refinery are capable of processing 2,500,000 tonnes of crude oil per year (4.8% of the total capacities in Ukraine). The refinery possesses plants for primary oil refining, catalytic reforming, coking, production of paraffin, synthetic fatty acids, etc.
The enterprise’s main activity is petrochemical production, in particular production of motor gasoline, diesel oil, liquefied gas, electrode coke and fuel oil. The technical upgrade plan stipulates for construction of hydrocracking facilities.
In 1999 Nadvornya oil refinery utilized 29.6% of its productive capacities. This period saw supplies of 1,240,000 tonnes of crude oil. It is notable that the portion of Ukrainian oil in total oil supplies to the refinery amounted to 41.48%. This is the highest figure among Ukrainian refineries (Kremenchug oil refinery was the second with Ukrainian oil accounting for 33.66%). Main oil supplies came from Russia (47.66%) and Kazakhstan (10.86%). The refinery processed 1,246,100 tonnes of crude oil in 1999 and produced 213,200 tonnes of gasoline, 415,900 tonnes of diesel oil and 526,900 tonnes of fuel oil. In January-December 1999 Nadvornya oil refinery sat idle for 52 downtime days.
The state-owned stake (25% of share capital plus 1 share) was assigned to management of Ivano-Frankovsk Regional State Administration. A 30% interest was transferred to state company Gosinvest Ukrainy, while 14% of shares in the refinery belong to Kiev-based Alpha-Nafta and another 16% – to Watfort Petroleum, UK. In addition, the latter has been assigned a proxy to manage the stake belonging to state company Gosinvest Ukrainy. Companies affiliated with Dnepropetrovsk-based Privatbank own another 12% of shares in Nadvornya oil refinery.
The authorized capital of OJSC Nadvornya Oil Refinery amounts to UAH 3,280,000.
Summary
As it can be inferred from facts and figures mentioned, Ukrainian oil refineries are capable of processing 52,400,000 tonnes of crude oil per year. According to the data of the former State Committee for Oil & Gas Industry, 22,000,000 tonnes of fuel per year are necessary to cover the domestic demands in Ukraine.
In spite of the tremendous potential, throughout the past eight years output of oil products in Ukraine has dropped to such a low level that the country is unable to satisfy even the domestic demands for fuel.
In 1990 Ukrainian refineries produced 8,914,600 tonnes of gasoline, 12,541,200 tonnes of diesel oil and 25,569,200 tonnes of fuel oil, whereas in 1995 output of gasoline was 2,757,200 tonnes (3.2 times as low as in 1990), of diesel oil – 4,020,000 tonnes (3.1 times lower) and of fuel oil – 6,588,500 tonnes (3.9 times lower).
The continuing recession in output led to production of only 2,530,700 tonnes of gasoline, 3,588,500 tonnes of diesel oil and 4,157,000 tonnes of fuel oil in 1997.
The year 1998 witnessed somewhat of a cutback in recession tempos and, in certain instances, even saw a slight recovery trend (e.g. gasoline output went up by 7.8% and diesel oil production – by 4.8% as compared to the 1997’ figures).
However, in the course of 1999 another downswing in output took place. The total 1999 production figures were as follows: 2,133,200 tonnes of gasoline, 3,069,100 tonnes of diesel oil and 3,571,100 tonnes of fuel oil.
On average, the six largest Ukrainian refineries utilized only 29.1% of their productive capacities.
Experts believe that it is possible to fully utilize Ukrainian refining capacities only in case of upgrading and reconstructing the equipment. The expected resulting effect is high competitiveness of Ukrainian oil products on the world market.
However, strategic investors with specific investment projects are the key to successful solution of this problem.
Table 2. Oil refining output in January-October 1999 (‘000 tonnes if other is not specified)
Product |
Registered output |
Output compared to the respective previous year’s figures |
% change year-on-year |
Carry-over stocks of oil products as of the fiscal year-end |
|||||
1999 |
1998 |
||||||||
Average per month |
Since the beginning of the year |
Average per month |
Since the beginning of the year |
Average per month |
Since the beginning of the year |
Average per month |
Since the beginning of the year |
||
Primary oil refining |
571.4 |
9,629.3 |
859.0 |
10,885.9 |
-287.6 |
-1,256.6 |
66.5 |
88.5 |
128.1 |
Motor gasoline |
121.8 |
2,184.5 |
217.4 |
2,531.7 |
-95.6 |
-347.2 |
56.0 |
86.3 |
19.4 |
A 72-80 gasoline |
96.3 |
1,744.6 |
172.0 |
2,134.5 |
-75.7 |
-389.9 |
56.0 |
81.7 |
12.2 |
AI 90-93 gasoline |
9.6 |
220.8 |
24.2 |
248.0 |
-14.6 |
-27.2 |
39.7 |
89.0 |
5.5 |
AI 94-98 gasoline |
15.9 |
219.1 |
91.2 |
149.2 |
-5.3 |
69.9 |
75.0 |
146.8 |
1.7 |
Total kerosene |
31.9 |
201.7 |
13.7 |
164.9 |
18.2 |
36.8 |
232.3 |
122.3 |
4.9 |
Diesel oil |
166.5 |
2,849.9 |
292.8 |
3,311.2 |
-126.3 |
-461.3 |
56.9 |
86.1 |
14.0 |
Fuel oil (gross output) |
145.9 |
3,178.5 |
281.8 |
3,433.8 |
-135.9 |
-255.3 |
51.8 |
92.6 |
20.5 |
the Metal