This action might not be possible to undo. Are you sure you want to continue?
Communication and public relation in busines Lect. dr. BALASESCU SIMONA Bostan Dana-Maria 8801,III year Business Administration
Mission 1.Production Units 4.2. Marketing of the products 6. Conclusion 7. Bibliography 1 .Modernisation Program 5.Table of contents: 1.3 Strategy 2. Crude Oil Logistics 3. History 1.
share capital.2001 the shares sale-purchase contract no.History In 1964. attracted in its the name or on a 5 years period.10. RAFO S.C. based on which S. IMPERIAL OIL S.2004.2008 AVAS (The Authority for State Assets Recovery) notified the cessation of SC RAFO SA post-privatisation monitoring.10.375. On 25.A.000 and investments worth USD 16.2002 the shareholders made technological investments / capital contribution in cash or in kind worth USD 63.A. In 1991.A.2001 was concluded. Borzesti Petrochemical Group of enterprises was set up in 1956 based on a Governmental Decision. Refinery 1 Onesti was part of this group and the refinery processed domestic sweet crude oil In the period 1979 -1980 Refinery 2 was commissioned for processing imported sour crude oil.C. On 26.10.08. and thus Balkan Petroleum LTD became the major shareholder of SC RAFO SA. ONESTI was registered as a stand-alone trade company in 1991.06. On 11.9960% of S.000 for environment protection. 10/26. During the running of the privatisation contract. 2 .1. starting with the date of 30. In 2004.994. RAFO S.C. S. the shareholders made technological and environmental investments according to the obligations stipulated in the privatisation contract. and CANYON SERVICOS LDA purchased 59. by their resources. the novation of the share packages held by Canyon Servicos LDA and Imperial Oil towards Balkan Petroleum LTD took place. In 2002. until 1990 being part of Borzesti Petrochemical Group of Enterprises.
2009. the Central Depository registered the increase of Rafo’s share capital by means of a contribution in cash of Balkan Petroleum LTD.9%. Balkan Petroleum LTD holding 7.A. On 21. registered the ownership transfer of a number of 69.10.C.08.61%.06. 13/2005.2010. the Central Depository registered a new structure of Rafo’s shareholding.A. 121/05.2010.N. Thus. RAFO S.9056 % of the share capital) from the account of Balkan Petroleum Limited to the account of Petrochemical Holding GmbH.A share capital. the shareholding structure was changed.2010. based on the provisions of the art. 3 . II. Brasov Court rendered the decision for closing the judicial reorganization procedure of SC RAFO S. Onesti (representing 7. as a result of direct shares transfer. On 11. DEPOZITARUL CENTRAL S.N. the shareholding structure of S.409.M. III. letter g4 of the C. RAFO S. Petrochemical Holding GmbH became the main shareholder holding 96.06. On 11.08. was amended. Petrochemical Holding GmbH becoming the holder of 96.On 28.V.A.A.C. with the following amendments and additions and of the C. S.2010. 81. Regulation no. representing the counter-value of the environmental and technological investments undertaken and performed in accordance with the terms of the privatisation contract.5141% of RAFO’s shares.M. Certificate no. Petrochemical Holding GMBH became the main shareholder with a percentage of 88.21% of SC RAFO S.V.C.780 shares issued by S. 2010 I. Consequently.
generating value for stakeholders. The demand for propylene. 4 . given the higher efficiency of diesel engines compared to those running on gasoline.2 Mission RAFO’s mission is to provide by means of energy generation. shareholders and for the activity fields in which it operates. This is the reason why Rafo has decided to stop producing gasoline and focus our strategy in the field of Petrochemicals and Euro V Diesel. benzene and PX has grown significantly. • To improve the quality of diesel by means of conforming with Euro V standards (10 ppm sulphur). by eliminating gasoline production we now no longer have to face the production/marketing challenge faced by many European refiners. This will eliminate the production of low value fuel oil and allow the conversion of all residues produced at Onesti into light products and petroleum coke for the Romanian domestic market.1. The primary purpose consists in maintaining RAFO’s position as an integrated oil processing asset. Consequently. customers. which has affected RAFO’s historic profitability and its plans for the future is Europe’s turning to diesel and a decrease in gasoline consumption. 1. the key aspects of the transformation programme are the following: • To relocate a delayed cooker from nearby Darmanesti (located 40 kilometres from Onesti). the quality of everyday life of individuals. Through its performance and technological development RAFO should become the focal point and the centrepiece of the Romanian petrochemical industry recovery. Petrochemicals have enjoyed good profitability in recent years.3 Strategy A key trend. From RAFO’s point of view.
This project is important for the process of replacing the gasoline production by paraxylene. benzene. propylene and raw material for steam cracking.• To revamp the FCC in order to maximize the output of aromatics and propylene. 5 . • To build a new state of the art aromatics complex. minimizing investment costs by making maximum use of the existing equipment.
In turn. • All of the major inland refineries in Romania are supplied with crude from the deep-sea terminal at Constanta.6 Mtpa of imported URALS crude. a 50 cm diameter pipeline supplies Onesti refinery from Baragan. CRUDE OIL LOGISTICS • Rafo’s first two distillation units had a capacity of only 1.5 Mtpa each and were used to process Romanian domestic crude. 6 .6 Mtpa. • The latter CDU is now the only distillation unit in operation.2. on the Black Sea. • Several pipelines start from Constanta to Baragan. A third and much larger tower (3 Mtpa) was subsequently added. This latter pipeline has more than enough pumping capacity for RAFO to run at 2. Under RAFO’s modernisation scheme. it will process 2.
Gasoil Hydrofining Unit .3.Crude oil.5 mil tons/year .Atmospheric and Vacuum Distillation Unit . used waters stripping .DGRS – Gas Desulphurization and Sulphur Recovery Unit.CC3 – Catalytic Cracking Unit . liquid gases storage tanks . finished and half-finished products. The main production units .PRODUCTION UNITS 1.Own production utilities: steam.FGR – Gas Fractionation Unit .Crude oil and other raw materials unloading rack 7 . cooling water .HDV – Vacuum Gasoil Hydrofining Unit .Flare Farm .PHB – Gasoline Hydrofining Unit . HP.3.HM.Truck and railcar loading racks .Ethers Unit (MTBE and TAME) .DAV . nitrogen.Used waters mechanical-chemical and biological treatment station .Hydrogen Plants .RC2 – Catalytic Reforming Unit . technical and instrumental air. HM2 .
eliminating the gasoline production and obtaining EURO V gasoil. According to the gasoil – aromatics flow sheet the total investment for refinery’s modernisation amounts to EUR 330.000 and includes: • Increasing Coker’s capacity up to 650.2.Increasing the capacity of the delayed coking unit up to 650 kta .000 t/year. in order to process 2.Paraxylene separation (it includes ortho-ethyl benzene separation. Main projects in progress .Aromatics extraction – separation (2 lines) . methaxylene isomerisation. MODERNISATION PROGRAM Concept In 2008 the program for the modernisation and revamp of Rafo refinery was initiated.Block of Aromatic Units with Paraxylene. using GTC technologies and licenses.411 kta and Benzene .233 kta 4.6 million tons of crude oil per year. RAFO also has 2 aromatics sections in “preservation” . paraxylene separation by absorption) 3. by using UOP technology. 8 . • Modernisation and modification of the operational status of FCC unit.000. • Implementation of Aromatics Complex.Euro 5 fuels related projects . The goals of RAFO’s modernisation are: reverting to gasoil – petrochemicals production.
RAFO’s management took the necessary steps in order to contract 9 . the works necessary to implement this project have been performed (engineering and construction works. It is estimated a steady increase in terms of the specific refining products consumption – gasoil and liquefied gases. The Romanian Government also supported this concept because the project called “The modernisation and rec onstruction of RAFO refinery into a petrochemical complex with aromatics production” may constitute a basis for reviving Romanian petrochemical industry. The petrochemical products (propylene. paraxylene) are not distributed only on the European market. In this respect. on their application. All products obtained as a result of this project will be traded in Romania or in the European Community. Since February 2008. Gases Desulphuration and Sulphur Recovery units using Le Gas Integral technology (France). All design solutions are based on the most efficient technologies. • Other utilities projects. both the utilization of the efficient technologies and their combination within RAFO refinery will represent a first time implementation in Europe and this will enable the creation of a new petrochemical complex. as well as on the maximum utilization of the facilities and of the equipments existing within the refinery. with EBIDTA of 186 million dollars per year. According to the investment’s feasibility study the average yearly sales will be of 1. more economically efficient and durable considering the market changes. Thus. benzene.• Increasing the capacity of Hydrofining using Axens technology (France).5 times as compared to the “Greenfield” type projects (new constructions) and it allows reaching the maximum complexity and increasing crude oil processing degree – aromatics production yields will represent 25% of the processed crude oil quantity. order and deliver y of facilities and equipments). and the liquefied gases together with the raffinate will represent the best feedstock for the pyrolysis plants.5 billion dollars. Such an approach will enable the decrease of the investment costs by 2. in order to comply with EURO V standards. The investment’s feasibility study was carried out for 4 crude oil price options and the price of 60 dollars per crude oil barrel was taken into consideration as a basic option. they could become feedstock for the further development of the complex.
000 MT per year Markets for RAFO: Continental Europe.000 MT per year 10 .a loan with state guarantee. agriculture. railway tran sportation Distribution: by railway. Bulgaria. Turkey and CIS countries European consumption: 2. This governmental guarantee does not represent a state aid and will be contracted taking into account the market conditions. by trucks AROMATICS • Paraxylene (PX) is used primarily as a feedstock for the manufacture of purified terephthalic acid (PTA) which is an important chemical in the production of fiber and plastic bottles • • • Planned production: 414.000 MT per year Domestic market growth: (2002 -2007) approximately 7% Main consumption sectors: automotive vehicles. Serbia Domestic market volume approximately 5. Moldova. namely: • The amount of the state guarantee will constitute 80% of the credit’s total value (amounting to Euro 330 million) • The guarantee will be granted based on an undertaking.080.396.000 MT per year Markets for RAFO: Romania. Marketing of the products DIESEL • • • • • • Planned production: 1. • RAFO’s shares and/or assets will be used to pledge the guarantee 5. Slovakia. Ukraine.000.
total capacity approximately 1. phenol and acetone LPG • • • • • Planned production: 262.000 Market growth: (2008 -2010) approximately 5% Main market sectors: automotive vehicles. polyamides. MDI (polyurethane component).500.• • Market growth: approximately 13% in 2010 Consumers: PTA and DMT produc ers BENZENE • • • • • Benzene is the basic petrochemical feedstock used for producing a wide range of Planned production: 233. Ethylene Crackers MT per year. PROPYLENE • • • • • Main fields of utilization are: polypropylene. Turkey and CIS countries European consumption: 11. Bulgaria. Continental Europe European consumption: 4.000.000 MT per year Markets for RAFO: Romania.000 MT (CIS not included) Consumers: domestic market and European customers of petrochemical products component). Moldova Domestic market volume: 300.000. (Ethylene Crackers not included) 11 . Serbia. etc.000 MT per year Markets for RAFO: Conti nental Europe.000 MT per year Consumers: petrochemical companies (mainly MDI and Polystyrene producers) products such as polystyrene.000 MT per year.000 MT per year Markets for RAFO: Romania. households. propylene oxi de (polyurethane Planned production: 100.
export .OTHER PRODUCTS Naphtha • • • Planned production: 283. former USSR. Consumers: fertilizers producers and other fertilizers producers: North Africa . export Sulphur • • • Planned production: 23. Serbia.000 MT per year Markets for RAFO: Romania. Hungary Consumers: domestic and foreign markets Coke • • Planned production: 157.00 0 MT per year Markets for RAFO: Romania. 12 .000 MT per year Markets for RAFO: Romania (domestic market).
Cluj – Napoca and Craiova. Such sales strategy will definitely broaden the area and the number of consumer groups. The fuel distribution 13 . The distance between the stations and the main regional or national roads or highways. Deliveries were made either directly from the refinery or from the four storage facilities held by the company in Brasov. Rafo’s retail sales were carried out through 33 old fuel distribution stations. Oradea. Until recently(2011). the products were distributed to 258 fuel distribution stations belonging to other persons and companies. On its turn.FUEL DISTRIBUTION STATIONS The network of fuel distribution stations will ensure full usage of the advantage that made the difference between markets’ offers and will provide the possibility of segmenting the market more deeply. this will increase the precise adaptation of the company’s strategy to the consumer’s preferences from each segment. residential areas or competitors’ existing fuel distribution stations may be used as segmenting criteria. in addition.
Luchian and Marin on charges of abuse of office. charged with money laundering. criminal organization and false testimony.3 mln to RAFO and RON 7. declared that this is a perfectly viable project. reaching 14 . "Rafo" agreed to work for free one week per month. on behalf of "Petrom". for defrauding the RAFO Onesti oil refinery. respectively. The ruling was challenged by the prosecutors. the main shareholder of "Petrom". for abuse of office.500 billion) processing free of charge the crude oil in the Moldova basin for "Petrom". on the grounds that their alleged crimes are not stipulated in criminal law or do not exist. and acquitted Liliana Luchian and the other defendants. general manager for "Rafo". Mr. In 2005. respectively but they were acquitted in 2008 by the Court of Bucharest. The Court also sentenced Marin Marin to seven years in prison. Problems on Rafo Onesti: Corneliu Iacobov sentenced to 7 years in prison over Rafo Onesti fraud after previous exoneration The Bucharest Court of Appeals sentenced business people Corneliu Iacobov and Toader Gaurean to seven and six years in prison. The rent fee received from these sale points will cover the personnel costs and the expenses related to the normal operation of the fuel distribution stations.stations should have sale points and the necessary infrastructure for providing additional services to the customers. Gaurean and Marin have been ordered to pay EUR 4. Iacobov. Paul Ivascu. Rafo Onesti would work free of charge for Petrom to pay its debts The "Rafo" refinery might pay its debt to "Petrom" (almost ROL 1. Gaurean. According to this plan. The construction of such fuel distribution stations will allow the company to rent these sale points and service centres. the employment of additional personnel than the one already employed to provide the usual commercial services to the customers not being necessary. for three years. the company might take advantage of its real estate guarantees in "Rafo". during the next three years. it was already submitted to "Petrom" which is inclined to agree. money laundering. prosecutors indicted Iacobov. According to our sources within the Ministry of Economy and Commerce.000 each in court expenses to the state.
negotiations are still ongoing. The company also withdrew its application Refinery Darmanesti appeal. according to Bogdan Paraschiv associate lawyer quoted the truth. in order to set up a network of gas stations. according to them. "Rafo" shareholders will meet to debate on some proposals issued by managers concerning the acquisition of several assets. Anyway. Several companies of the Tender Group took over "Rafo" debts last year. committing to pay through services. The Court granted the application and ordered the closure of the judicial reorganization procedure to RAFO. The decision was taken after 11 days of deliberation by the sentencing Brasov Court dismissing as unfounded complaints made about the closing of the reorganization procedure. allowing "Rafo" to pay its debts to "Petrom" by its own means. The other shareholders are "Tender" SA (50% of the equity capital) and VGB Invest (40% of the equity capital). plus several local fuel ware-houses. The same sources confirmed negotiations with "Rafo".10. The "Rafo" managers also proposed to sell stakes owned by the company in "Rafo Trans" SRL and "Iaco Invest" SRL. Under the law. currently owning 90% of "Rafo".ROL 1. 22. which means that the company can return to economic activity. judicial reorganization procedure applies debtor is a legal entity and to pay its debts 15 . The "Rafo" strategy for the next two years includes a network of 80 gas stations to be built (approximately USD 45 million). but.2010 The court rejected the bankruptcy of RAFO Onesti Brasov Court rejected the company's bankruptcy RAFO Onesti. Paul Ivascu stated that "Rafo" requested this deal to be suspended for three years. Shareholders will also decide on "Rafo"'s participation in the equity capital of "Top Oil". Court ordered the judicial reorganization and closure.550 billion. VGB Invest is also shareholder in "Balkan Petroleum". Mr. the problem of "Rafo" debts towards "Petrom" is expected to be solved before the privatization of the latter. By the end of this month.
being at that time the largest debtor to the state. but which needs state support.which will take a significant share of products RAFO. and the creation of the strongest integrated petrochemical complex in Eastern Europe.2010. Rafo would handle three million tons of oil annually. These would be Oltchim forthe including pyrolysis plant Arpechim Chimcomplex . however. and Thermal UTON.according to a payment schedule of claims. Carom . In 2008 work was stopped. Reorganization procedure closes the sentence after meeting all the liabilities assumed in the plan of reorganization confirmed by the bankruptcy judge. The project reached 330 million. during which he paid all trade payables and budget. Technological food chain that would keep Rafo All units would benefit RAFO development can achieve commercial links would not work even if the integrated structure. Nelson index (which indicates the complexity of the installations. Rafo will not produce commercial gasoline. Since the summer of 2008. in order to reorganize. coke and sulfur are sufficient market. but materials for petrochemicals. increasing the production of rubber and other technologies on which Products resulting demand by domestic and foreign. the processing of crude oil and semi-deep) would increase to about 9-14. a program of reorganization. and the project implementation in 19 months.Conclusion Rafo Onesti has come. during 2004 . Thus. but has all the technological equipment necessary in conservation. Restart the refinery would lead. the majority shareholder and the administration have initiated a project to modernize investment. Refinery is stationary in April 2008. "All aspects 16 . 6.who would develop two new plants. Rafo went insolvent in 2004. For the production of oil. and develop business Compet Oil Terminal and other service-providing units horizontally.
regardless of type.said Ion Marian . and the units will work in collaboration with the RAFO. will profit.have been the subject of studies and analysis specialists at large and the RAFO project analysis that the unit will operate on the basis of maximum efficiency. it achieved by RAFO existence. Virtually all economic and social activity Borzeşti platform. including developing and populating Onesti.summarized . " 17 .
ro/ 3.ro/2013/03/01/rafinorii-din-onesti-se-intalnesc-cu-premierulponta.Bibliography: 1.rafo. 18 .ziaruldebacau. Ziarul de Bacau: http://www.html 2. Rafo Onesti http://www.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.