Rosneft acquires 37.5% share in German PCK refinery

Rosneft exercised the pre-emption right for 37.5% share of the PCK (Schwedt) refinery from Shell. Relevant notifications have been shared with the partner. The transaction is subject to government and regulatory approvals.

As result of the purchase, Rosneft will increase its shareholding in PCK from 54.17% to 91.67%.

Rosneft Chief Executive Officer Igor Sechin noted: “Increasing the share of PCK refinery is testament to the strategic importance of the German market for Rosneft. The Company builds long-term relationships with its German partners, provides timely and uninterrupted crude supplies, and modernizes key refinery units.

PCK is one of the most technologically complex refineries in Germany, with a Nelson index of 9.8. Rosneft plans to strengthen the technological leadership of the refinery, including through the implementation of low-carbon projects, considering the current environmental agenda of the EU. The company is already developing projects aimed at the production of cleaner fuels, such as "green" hydrogen and sustainable aviation fuel. Work in this direction will continue”.


Notes for editors:

Rosneft is the third largest player in the German oil refining market. Operating activities are carried out by Rosneft Deutschland GmbH, a subsidiary of the Company. This company manages both the supply of crude oil to the refineries, the shares of which belong to Rosneft (PCK Raffinerie GmbH, MiRO refinery, Bayernoil refinery), and sales of petroleum products.

The PCK Raffinerie GmbH refinery is located in Schwedt, Brandenburg. The location of the refinery makes it possible to supply Urals crude through the Druzhba pipeline. The capacity of the refinery is 11.6 million tons per year (Rosneft's current share in the capacity is 6.3 million tons per year), the Nelson complexity index is 9.8. Current shareholders: Rosneft - 54.17%, Shell - 37.5%, Eni - 8.33%

Axens Selected for Byco’s Refinery Upgrading Project Phases I, II & III to Support in Producing Euro V Gasoline and Diesel, Pakistan

Byco and Axens are pleased to announce that Axens has been selected to support Byco’s Refinery upgrading Project Phases I, II, III with providing advanced technical solutions in order to achieve Euro V gasoline and diesel specifications in Pakistan.

Prime-G+® Technology

The solution consists of a unique integration of three existing units into a Cracked Naphtha Desulfurization unit using best in the business Prime-G+® licensed technology. This technology plays a major role in meeting Euro V specifications with the best octane retention along its selective hydrodesulphurization process.



Virgin Mix Distillate Hydrotreater (DHT-2), Mixed Distillate Hydrotreater (DHT-3) and Sulfur Recovery Unit (SRU) Catalysts & Adsorbents combined with Proprietary DHT-3 Reactor Internals

Reactors will be loaded with Axens Catalysts & Adsorbents in order to meet stringent Euro-V specifications in the refineries.


The scope of Axens work includes the supply of process design package for integration of three existing units into FCC gasoline hydrotreating configuration using licensed Prime-G+® technology, catalysts & adsorbents for SRU & respective Hydrotreators, internals for DHT reactor, trainings and long term technical services.
The start-up date of the complete Phases I, II & III is expected in Q2 2024. This award reinforces the intense cooperation between Axens and Byco Petroleum Pakistan Limited, which started in 2019 when Byco awarded Axens with an adaptive study consisting in evaluating the configuration of units to be fitted into their existing refineries. Axens developed at that time a Linear Programming modelling solution that allowed Byco to define the basis of their future refineries configuration and operation when processing different crude oils

PKN ORLEN’s investment in deep crude conversion in Mažeikiai will enhance the refinery’s profitability

PKN ORLEN is investing to expand its refinery in Mažeikiai. By the end of this year construction will start on a project to build deep crude conversion units enabling production of larger volumes of high-margin products. According to the agreement signed between PKN ORLEN and ORLEN Lietuva on the financing of the project, the Company is to invest EUR 641m. This will be the largest capex project carried out by the ORLEN Group in Lithuania in its operating history. The project will enhance the profitability of the refinery, contributing to strengthening energy security of the region. The project is slated for completion by the end of 2024, and it will add as much as ca. EUR 68m to annual EBITDA.

‘This is a historic day for ORLEN Lietuva and the Lithuanian economy. As announced earlier, our investment in deep crude conversion in Lithuania is entering the execution phase. In the agreement signed today PKN ORLEN has declared its intent to fund the project, which will help us to significantly enhance the competitiveness of the refinery in Mažeikiai, which is key to ensuring energy security for our region. Increased yields of high-margin products will also improve the stability of fuel supplies in the Baltic states as well as in Poland. In a parallel effort, we are holding discussions with the Lithuanian government on possible forms of support for the project. This reflects the warming of Polish-Lithuanian relations at the governmental and business levels seen in recent years,’ said Daniel Obajtek, President of the PKN ORLEN Management Board.

Deep conversion units built at the Mažeikiai refinery will increase the yield of high-margin products by 12%, to over 84%, from less than 72% today. The project will reduce crude oil throughput but not fuel production volumes, also enabling the company to further expand its business into new products and extend its value chain. This in turn will reduce the company’s sensitivity to changes in the macro environment.

The deep crude conversion project will help eliminate production of high-sulphur heavy fuel oils, enhancing the refinery’s profitability given ever more stringent environmental regulations on heavy fuels. PKN ORLEN has already purchased a licence and procured front-end engineering design for the project.

In July 2021, ORLEN Lietuva, an ORLEN Group company, signed a letter of intent with the Lithuanian Energy Ministry to pursue a deep crude conversion project. Closer cooperation between the Company and Lithuania is a result of an earlier meeting of Daniel Obajtek, President of the PKN ORLEN Management Board, with the Lithuanian Prime Minister Ingrida Šimonytė.

ORLEN Lietuva is a key ORLEN Group company, operating the sole refinery in the region, guaranteeing its security. PKN ORLEN is consistently investing in expanding its assets in Lithuania. The Mažeikiai refinery is important to the Polish and Lithuanian economies. It is Lithuania’s largest company, with about 1,500 employees, of whom over 90% are residents of Mažeikiai and neighbouring towns. Another 4,500 people are employees of external service providers and subcontractors. ORLEN Lietuva is also one of the largest exporters and taxpayers in Lithuania having paid EUR 566,495,374 in taxes to the Lithuanian government in 2020 alone.

Phillips 66 to Convert Alliance Refinery to Terminal Facility

 Phillips 66 (NYSE: PSX) announced today it plans to convert its Alliance Refinery in Belle Chasse, La., to a terminal facility. The conversion is expected to take place in 2022.

“We made this decision after exploring several options and considering the investment needed to repair the refinery following Hurricane Ida,” said Greg Garland, Chairman and CEO of Phillips 66. “Alliance’s existing infrastructure and Gulf Coast location make it an attractive midstream asset. Phillips 66 will continue to be a major refiner with 12 facilities in the U.S. and Europe.”

The Alliance Refinery employs approximately 500 employees and 400 contractors.

“Our decision was a difficult one, and we understand it has a profound impact on our employees, contractors and the broader Belle Chasse community,” Garland said. “We will work to help them through this transition and support them as Alliance takes on a new role in our portfolio.”