A cargo train carrying the first 500 tons of crude oil from Yoloten field has arrived at the Seydi oil refinery. It was commissioned in neighbouring Mary province of Turkmenistan. This is indeed a remarkable event. The large oil field has started producing crude oil!
The country's second largest oil refinery (after the Turkmenbashi complex of oil refineries) waited impatiently for this moment. The oil refinery was built in the young town on Amudariya river in Soviet times. It was designed to process oil from Russia's Siberia. However, after gaining independence by Turkmenistan, oil supplies stopped. Starting middle 90s up to the last year, the oil refinery had processed oil from Kokdumalak field situated on the border with Uzbekistan. Today, the task is to provide the refinery with Turkmen oil. This is an optimal approach for the country with vast energy potential.
The Seydi oil refinery has not simply survived after the discontinuation of oil supplies from Russia but is steadily developing and successfully implementing new projects. The oil refinery has significantly increased the processing of hydrocarbons and turnout of oil products in recent years. More than one year and a half ago, Turkmenistan kicked off the commercial development of Yashyldepe oil field on the right bank of Amudarya river. In the short time, 14 production wells and 2 oil-gathering stations have been put into operation there. The 80-km oil pipeline Yashyldepe-Pelvert has been built. Oil tankers are transported to the refinery by train from the village of Pelvert where a filling terminal was built.
The oil wells commissioned on Sag Kenar filed together with Pelvert terminal ensure independent transportation of hydrocarbons. Over 800 tons of crude oil has been sent to the Seydi oil refinery by this route which is more suitable and economical.
And now, a new source of precious raw material from Yoloten field is on stream. The raw material base of the Seydi oil refinery will be strengthened significantly as the commercial production of the filed increases.
Gas condensate is also processed at the oil refinery. Light oil produced by the refinery from gas condensate is in high demand in the republic and the world market.
The Seydi oil refinery was the first among CIS oil refineries to develop and introduce a gas condensate processing technology as part of a unit for preliminary distillation of oil. Some 1,5 million tons of gas condensate have been processed so far. The supplies of gas condensate to the Seydi oil refinery have grown significantly since the commissioning of the Nayyp gas processing plant. It will double after the commissioning of Bagaji and Yashyldepe gas processing plants.
The preparations for this event at the Seydi oil refinery began long ago. Everything is ready for the comprehensive reconstruction and modernization of production. A large-scale investment programme has been developed. State-of-the-art equipment and latest technologies installed at the refinery will provide for deeper processing of the raw materials. It will make it possible to greatly increase the range of oil products meeting high world standards. There are plans for establishment of new high-tech facilities for production of high-octane gasoline, polypropylene and other products that are in demand at the world market.
A number of countries expressed interest in reconstruction of the Seydi oil refinery and construction of a polyethylene plant as part of the oil refinery. A large field being developed nearby is expected to supply raw materials to the plant. In particular, Turkmenistan negotiated this topic with China, Germany, UAE and Iran. The reconstruction of the Seydi oil refinery also featured among promising areas of Turkmen-Japanese cooperation in the oil and gas sphere discussed recently by Turkmen President Saparmurat Niyazov and Japanese business delegation led by the co-chairman of the Turkmen-Japanese economic cooperation committee, Minoru Murofusi. The representatives of business circles of Japan also offered their services at the 6th joint meeting of the economic cooperation committee in Tokyo. They stated their readiness to provide new unique technologies and equipment, soft long-term credits for construction purposes. The businessmen assured that the Japanese consortium would provide services in the sphere of engineering, equipment supplies, construction, financing and purchase-sale of production during the project implementation.
By the way, in the first half of 2006 the Seydi oil refinery produced 446 thousand tons of oil products. At the same time, the bulk of straight-run gasoline, diesel fuel and mazut is exported. These figures will increase many times in the course of further development of the raw material base in the east of Turkmenistan.