Another Phase of the Operational Efficiency Increase Program Completed in Pančevo Oil Refinery

October 2, 2013

As a part of the operational efficiency increase program, NIS has completed two additional unit modernizations in Pančevo Oil Refinery. Specifically, they include the replacement of worn-out relay protection in "C" substation and analyzer installation at the Platforming Unit (C-300) in the refinery Block 5. These investments are envisaged to increase operational reliability and energy efficiency and achieve financial savings in the refining process. The implementation of the program of operational efficiency increase in 2013 entails capital investments in the total amount of RSD 2.1 billion. Within the modernization process, three analyzers were installed at each of the four furnaces of the Platforming Unit, generating data which enable optimal combustion in the furnaces. In addition, this investment, the value of which exceeds 53 million RSD, is to ensure lower heavy fuel oil consumption and longer life-cycle of the entire equipment. On the annual basis, savings in heavy fuel oil consumption will range from 1,630 to 2,160 tons, i.e. from RSD 60 to 83 million. Furthermore, the reconstruction of "C" substation, worth of more than RSD 24 million, is to ensure reliable operation of all units located in this part of the factory. Additionally, the micro processing relays and other modern equipment should significantly improve the possibility of control, defect analysis, and preventive activities in the Refinery. The aforesaid activities, along with the completion of the previous phase of processing capacities modernization, will result in a significant improvement of two key indicators pertaining to the refinery unit operation. Particularly, the Nelson complexity index, indicative of level of technical equipment in the Refinery, complexity of technological processes, and costs of refining processes, has been increased from the level of 6.25 points in 2009 to of 8.9 points which is forecasted until the end of 2013. It should be noted that, in this way, Pančevo Oil Refinery operations will come closer to USA oil refineries in terms of average characteristics (average Nelson index - 9.6 points), whereas it has already surpassed the average of EU refineries, currently estimated to 6.1 points.