4 September 2015

Today, Bashneft has started pilot operation of a new process line of the elemental sulphur production unit at the Bashneft-Ufaneftekhim Branch. Investments in the project totalled 2.4 billion roubles.

The ceremony held to mark the start of operation of the unit was attended by the President of the Republic of Bashkortostan Rustem Khamitov, Bashneft's President Alexander Korsik and the Head of the Administration of the Ufa Municipal District Irek Yalalov.

'The launch of a new unit incorporating state-of-the-art technical solutions is an important milestone in the Company's large-scale refinery upgrade programme,' commented Bashneft's President Alexander Korsik. 'Continuous refinery upgrades not only enable the Company to remain the technological leader in the oil refining industry in Russia, to improve the performance of our refineries and to supply consumers with high-quality products, but also make an important contribution to environmental protection.'

The elemental sulphur production unit helps ensure that hydrogen sulphide produced as part of hydrotreatment, hydrocracking, delayed coking and tar deasphalting processes is utilized as effectively as possible. The technology used by the Company helps achieve a high level of conversion of hydrogen sulphide into elemental sulphur, which is used in the chemical and metals industries.

The new process line makes it possible to create the necessary spare capacity at the elemental sulphur production unit, given that in recent years an increase in the efficiency of hydrotreatment processes as a result of upgrades aimed at switching over to production of Euro 5 fuel has led to a considerable increase in the amount of gas containing hydrogen sulphide; consequently, the four existing process lines of the elemental sulphur production unit at the Bashneft-Ufaneftekhim Branch are operating almost at full capacity.

Construction of the fifth process line of the elemental sulphur production unit started in 2014. SUE Bashgiproneftekhim was the general designer of the unit; OJSC Vostokneftezavodmontazh was hired as the general contractor to construct the unit.

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