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Oile Refinery

“Saleem Caravan Oil Refinery ”

Project and investment short plan for development and expansion of the existing oil refinery

City of Kabul, Afghanistan. 2016.

  1. INTRODUCTION

The economy of Afghanistan steadily grows and develops, disproving pessimism of the various western experts who have got addicted to hopeless poverty of the African countries. Cardinal difference of Afghanistan from group of the poorest countries consists that the Afghan economy achieved of good growth rate and carries out structural changes. Afghanistan was included into number of developing countries. Recently, after the beginning of “resource boom” in Afghanistan, the situation in that sphere started improving. India and China undertook a construction of large-scale infrastructure that allows to draw a conclusion on advantage of similar projects. Besides and other states – neighbors of Afghanistan are ready to invest in infrastructure of this country. So, already operating section of the railroad from the Uzbek-Afghan border to Mazar-i-Sharif, company of “China Metallurgical Group Corporation” plans to prolong to Kabul, and then and to Torkham, where Afghan railroad to be connected to the Pakistan. All works have to be complete by 2017. Also at an early stage of realization to be the railroad construction project (cost about 350 million dollars) from Turkmenistan to Mazar-i-Sharif which can become one of the main transport lines in the region, considering proximity of an arrangement of large-scale oil fields in the Balkh province. By the last estimates of the American experts near 1,9 billion barrels of crude oil to be in the Afghan-Tajik pool. At the beginning of March, 2012 the Ministry of Mining Industry of Afghanistan announced the tender for investigation and raw materials production, having offered licenses for blocks:

  1. Ahmadabad (area more than 1,8 thousand square kilometers),
  2. Balkh (1,9 thousand square kilometers),
  3. Mazar-i-Sharif (2,7 thousand square kilometers),
  4. Mohamad Jan Dagaf (3,6 thousand square kilometers),
  5. Sandukli (nearly 2,6 thousand square kilometers),
  6. Shamar (2,1 thousand square kilometers).

Cumulative potential volumes of these blocks are estimated at 200-220 million tons of oil and 70 million tons of condensate.

The investment policy is aimed at further increase of rates and efficiency of development of economy of Afghanistan on the basis of acceleration of scientific and technical progress, modernization and reconstruction of production lines, an intensive use of the created production potential and on this basis of further lifting of welfare of the people. Need of the solution of the following tasks is put in a basis of prospects of development of investment process:

  • further improvement of structure of a national economy and its branches, increase of a role of the republic in world division of labor and deepening of production specialization;
  • fuller involvement in a social production of a natural and economic and fast-growing manpower;
  • Ensuring high rates of development of branches of production of goods and non-productive sphere, solution of food and housing programs, increase of welfare of the people, further alignment of levels of economic and social development.

This technical and economic project justification is prepared with the purpose to develop the investment project with the organization of production of processing of crude oil and receiving exit production, to be export-oriented import-substituting and answering to the international standards in amount of 25 thousand tons per year.

  • Preconditions of creation of the project

Fast payback of capital expenditure, existence of large supplies of raw materials (crude oil), convenient territorial arrangement, possibility of supplement of necessary components, supplement with the qualified labor specialists, and also existence of a capacious sales market of exit production creates favorable opportunities for successful implementation of the project.

Preconditions of implementation of the project and acquisition of the equipment is:

  1. introduction of advanced technologies;
  2. offered project provides safe working conditions for workers and the organizations of additional workplaces;
  3. all made production is export-oriented and import-substituting that in turn will increase inflow of currency to Afghanistan;
  4. at the expense of the most effective use of heat the consumption of fuel gas, and, therefore, emissions in the atmosphere is cut;
  5. the offered project meets requirements for environmental protection;
  6. production being in a stable demand;
  7. the greatest possible covering and providing with high-quality production for quite reasonable prices;
  8. the highest efficiency and quality of the equipment (international standard);
  9. the debugged system of service – warranty and after-guarantee service, delivery of spare parts, personnel training;
  10. Moderate cost both capital equipment, and spare parts.
  • Initiator of the project

The initiator of the project is “Saleem Caravan Group” group of companies who have established the “Saleem Caravan Oil Refinery Company” the in the form of the limited liability company, Islamic Republic of Afghanistan.

In business form of – Limited Liability Company.

The legal status – the collective enterprise.

Enterprise primary activity:

  1. oil refining;
  2. services in transportation of goods and other forwarding services;
  3. Other kinds of activity which haven’t been forbidden by the legislation of the republic Afghanistan.

The kinds of activity, which implementation it is possible only on the basis of the special permission (license), can be carried out only in the presence of such permission which will be got.

Implementation of this project will allow to ensure stable functioning of joint venture, and the received money will be directed on expansion and further development of production in Afghanistan.

The most important part which to be allocated for the foreign partner is a preparation of production placement for installation of equipment, the production process organization, monitoring of preparation of production lines, the organization of sales, selection of the working personnel, the production process management organization.

  • CURRENT PROJECT STATUS

As per the original idea and project, the company of “Saleem Caravan Oil Refinery Company” planned to realize the full-circle crude oil refinery with the next key factors:

  1. To purchase the locally gathered legal crude oil with the aim of next refining;
  2. Execute the full scope refining process on the local, newly build oil refinery with full specter of the final ready-to-use crude oil products, like gasoline (both types), European and Russian standard diesel fuel, furnace oil, technical kerosene and bitumen.
  3. Organize the stable supply of the locally refined light oil products and bitumen to the customers all over the Afghanistan.

As per company plans, the company started the planning, engineering and design stage at the end of the year of 2012. The overall plan included the 2 main stages:

  1. First stage: the design, engineering and construction of the primal raw crude refinery with the exit of the 5 key products: gasoline AI-80, naphtha, furnace oil, diesel fuel 0.5-40, fuel oil.
  2. Second stage: expansion, upgrade and technical modernization of the first-stage factory to the full-circle crude oil refining factory with the exit of the light oil products up to 97% from the volumes of the refined crude oil.

By the preliminary financial and investments plan, the first stage need 60,000,000 USD, the second stage need 190,000,000. So the total investment required 250,000,000 USD.

The realization of the first stage project started after the finish of the Engineering and design works at the beginning of the 2013. Construction works started at the 2013 and finished 2015 with the legal state commission pass and obtaining the refining license. After the completion the factory started test refining processes and operated at the locally gathered crude oil. Due to the some unstable gathering of the crude oil because of the fact, that crude oil gathering just started at the Afghanistan, we met the issue of the stable purchase of the crude oil. In present moment the governmental organizations and the gathering company solved this issues and there is ability to stable purchase of the crude oil since the year of 2016. Besides during the test refining in 3 months in the year of 2015 our factory reached the successful and well quality exit products. All exit product passed the state certification and laboratories, which is proved with relative documents. The factory is capable to refine the 100,000 metric tons of the crude oil rep year due to the fact of installation of the 2 atmosphere columns block – one for light type crude oil and one for high-Sulphur and high-paraphine crude oil. As per first stage plan the factory need to be equipped with 4 atmosphere columns block in order to provide the 300,000 ton/year products refining capacity. Also, the factory storage facility like preliminary product tankers and main storage tankers are capable to work with the 300,000 metric tons of products volumes.

So, as per finish of the first stage and by present moment our company operates the crude oil refinery with the capability to refine the 100,000 MT of crude oil per year and well quality certified production. The present factory can be fastly upgraded to the 300,000 MT refinery due to the existing project design.

Please see the next listed photo report of the factory: