Ilsky oil refinery is a new modern industrial complex, which is among the leading factories of the region, located near Ilsky urban–type locality, Seversky district, Krasnodar Krai, 55 km away from Krasnodar and 80 km away from Novorossiysk.

In 1980 in Ilsky village Azov-Black Sea Federal Department of Road Construction built a tar-bitumen plant, which included full technological cycle. The plant contained tar pumping reservoirs, tar preparation unit, tar heating furnaces and oxidation unit.
The factory was producing road and building bitumen using raw materials, which were delivered from Grozny (80%) and Ufa (20%), some time later a new technology of roofing bitumen was invented. Producing bitumen from heavy crudes was also successful and capacity equaled 100-130 tons per day. Products were delivered all over the region, from Sochi to Korenovsk.

In 2001 it was decided to restructure the company for another function and construct a new atmospheric distillation unit, which would produce residual oil and bitumen using local feedstock. State Design Institute of chemicals use in oil industry GPI Neftekhimproekt (Tatarstan republic) developed a project of “Major overhaul of bitumen complex in Ilsky”. Newly projected complex included a processing unit, receiving product oil and producing:

  • Straight-run gasoline;
  • Components of diesel fuel;
  • Residual oil, used in order to get oxidized road bitumen.

In 2002 the bitumen plant was renovated and reconstructed into the first atmospheric distillation unit – AT-1 with overall capacity of 35 thousand tons per year. Later on 3 more units were built, including AT–2 (2007), AT–3 (2009) and AT–4 (2010). As a result, annual capacity of the factory equaled 1,1 million tons of fuel. Besides, all the required infrastructures, providing smooth and failure–free work, were also built in a very short period. There are such facilities as 75 cubic meters tank battery, advanced railway overpass for loading, up–to–date treating facilities, motorways etc.

AT–5 unit construction was finished in 2013 and it is now used for processing both low sulphur and sulphur feedstock. After commissioning in September, 2013, total amount of processed feedstock reached up to 3 million tons per year.

By the time of launching new facilities there had been also accomplished the following:

  • an additional 100 cubic meters tank battery (besides already existing one; total volume of all the tank batteries equal 167 thousand cubic meters, available storage equals 125 thousand cubic meters)
  • railway rack intended for simultaneous loading and off-loading of 60 rail tankers with feed and oil products;
  • throughput of Ilsky railway station increased with a dead–end track of 12 km long, allowing the factory to receive necessary amount of feed and transmit the same amount of oil products;
  • the company purchased land lots nearby the oil refinery allowing to place all the objects of Deep oil refining complex and increase overall capacity to 5-6 million tons per year;
  • new treating facilities with stormwater drainage;
  • new electricity networks with 1 MW and 6 MW of power;
  • as a result of joint meeting with representatives of “AK Transneft” OJSC it was decided to develop technical specification and connect Ilsky oil refinery to a network of main pipelines.

Oil refining factory is located in an advantageous geographical land spot in terms of logistics, feed supplying and selling final product. There are oil pipelines of AK “Transneft” nearby, which are used for exporting oil and supplying local refineries with feed. There are two access points, terminals of “Grushovaya” and “Tikhorezkaya”, belonging to “Chernomortransneft” OAO, which carry out feed in rail tankers to the site of the refinery.

Except for Afipsky refinery, Ilsky oil refinery is the closest factory to Russian largest seaports of Chernomorsky and Azovsky shores, such as Novorossiysk, Tuapse, Temryuk, Eisk. This fact significantly increases possibility and effectiveness of oil products export through the oil terminals.

In 2011 Ilsky oil refinery entered a four-party agreement along with Federal Service for Environmental, Technological and Nuclear Supervision, Federal Agency on Technical Regulation and Metrology and Federal Antimonopoly Service of Russia and Federal Anti-Monopoly Service concerning construction of new refining units and production of motor fuels that would meet all the Russian Government’s requirements. In 2015 the Parties signed a Supplementary Agreement presupposing time extension for project execution.

A project of reconstruction and modernization of Ilsky oil refinery presupposes creating a huge complex, intended for deep refining of oil feedstock; it is planned to reach 95% of processing depth and produce fuel, which would meet the requirements of European standards (Euro–5), as well as regulations of custom union concerning “Requirements to Automobile and Aviation Gasoline, Diesel and Ship Fuel, Jet Engine Fuel and Furnace Boiler Oil” TP TC 013/2011.

As of today, the factory and its partners have accomplished the following tasks:

  • the factory deals with many respected banks, both domestic and foreign, concerning long-term financing (Vnesheconombank, Alfa Bank OJSC, ZAO Raiffeisenbank etc.).

List of licensors include the following companies:

  • American UOP company specializes in vacuum gasoil hydrocracking units and middle distillates hydrotreating units and is involved in Ilsky oil refinery modernisation project;
  • German Linde AG company is involved in projecting hydrogen production unit;
  • Dutch Jacobs company is involved in projecting sulphur production unit;
  • Bashkir GUP INHP company is involved in projecting vacuum unit;
  • LENGIPRONEFTEKHIM (Saint-Petersburg) is responsible for gas fractionation unit;
  • Combined unit for reforming and isomerization, including:
    • gasoline fraction hydrotreating unit;
    • reforming unit;
    • isomerization unit;
    • delayed coker unit.

The whole advanced oil processing center will be able to refine 3 million tons of feedstock and it is planned to finish the construction in 2022. During XI International Investment Forum in Sochi, 2012, the factory provided media materials concerning Ilsky oil refinery’s 2013–2017 modernization project, including 3D installations.

All the designing, financing, economic, legal and engineering backing is carried out by Kuban Oil and Gas Company and its design and engineering center, which has more than 100 staff members involved in given project.

Speaking of Ilsky oil refinery development it is worth mentioning those who actually made it possible to achieve such goals. Each and every director of the factory contributed a lot: Prokopenko V.I., Kovalev D.F., Petrosov V.Y., Kopka A.I., Taran A.G., Shamara Y.A., Tagirov A.V.

All the ideas and plans would be impossible to accomplish and bring to life without the refinery’s employees. The main value of Ilsky oil refinery is people who have become a part of one big staff, who gave their experience, professionalism and knowledge. As of today, there are 515 employees working in Ilsky oil refinery. Ilsky oil refining factory is currently a major budget revenue generating enterprise for Seversky district.