Petrom has commissioned a modernized crude vacuum distillation unit at its Petrobrazi refinery. The unit was installed during the scheduled sixweekrefinery general shutdown. The investment in the modernization program amounted to around € 100m. The Petrobrazi refinery resumed operations this week. The modernization project of the crude vacuum distillation unit was initiated in 2009. In parallel with the commissioning of the unit, a series of other modernization and maintenance projects were performed.
Our view:
We see the news as positive as Petrom not only delivered a major milestone in the refinery upgrade program but delivered it in record time.
According to our calculations, following the full revamp of Petrobrazi (to be finalized by 2014 with total additional capital outlays of roughly € 200m), the decrease in own consumption from 12% to 10% and an improved product yield (middle-distillates up from 35% to 45%) could add up to US$ 2.0/bbl to Petrom’s realized margin.
Admittedly, however, this remains significantly below the company’s target of US$ 5.0/bbl.