Oil Refineries Announces the Successful Activation of the Hydrocracker
HAIFA, Israel, January 3, 2013
HAIFA, Israel, January 3, 2013 /PRNewswire/ --
Oil Refineries Ltd. (TASE: ORL.TA) (hereinafter " the C ompany, " " ORL "
) , Israel's largest integrated refining and petrochemical group, announced
that it has successfully activated the hydrocracker, which passed the
project's acceptance test and is producing distillates of the required quality
and commercial quantities.
Pinhas Buchris, CEO of ORL, commented: "We are pleased with the hydrocracker's
activation, which is an important step in the implementation of the Company's
strategy. The hydrocracker is a very complex piece of equipment. The
project's establishment lasted about three years and cost about $500 million
so we see its activation as a business, technological and organizational
achievement. The integration of the hydrocracker into ORL's operations will
enable us to produce improved and higher quality distillates relative even to
the strict environmental standards and improve our competitive standing in the
world. We believe that through the hydrocracker we can maximize the production
capacity of the Company and positively impact our operational efficiency and
hence improve the Company's financial results."
The hydrocracker project is part of the Company's strategic plan, which was
outlined in late 2007. The $500 million invested in the project was a key
part of the 2007 strategic plan, which overall totaled $1 billion. The
strategic plan includes, among other things, upgrading the HVGO
desulfurization facility of and other facilities, which have expanded and
upgraded our refining and cracking capacity as well as our production of oil
and petrochemical products.
The hydrocracker is currently working on an input of about 25,000 barrels per
day. Its products - LPG, naphtha, kerosene and diesel - are of a very high
quality. The hydrocracker significantly improves the competitive positioning
of the refinery by increasing the refinery's complexity and improving the
Company's ability to produce a more profitable product mix.
The Company believes that the hydrocracker's operation will improve its
refining margin and as such, its financial results. It will also help to
expand and further focus our efficiency measures and streamlining processes,
about which the Company recently announced. The impact of the facility on the
Company's operating results will depend on the prevailing refining margins in
the global market, and in the Mediterranean market in particular.
About Oil Refineries Ltd.
Oil Refineries Ltd. (ORL), located in the bay area of the city of Haifa,
operates Israel's largest integrated refining and petrochemical group. It is
one of the leading refineries in the Eastern Mediterranean area and
integrates, on-site, petrochemical businesses. ORL runs sophisticated and
state-of-the-art industrial facilities with a refining capacity of 9.8 million
tons of crude oil per year, providing a variety of quality products used in
industrial operation, transportation, private consumption, agriculture and
infrastructure. Besides production of fuels, the company produces in its
wholly owned subsidiaries Polymers (through Carmel Olefins Ltd), Aromatics
(through Gadiv Petrochemical Industries Ltd), and Lube-Oils (through Haifa
Basic Oils Ltd). The Company's shares are listed on the Tel Aviv Stock
Exchange under the ticker ORL. For additional information please visit
ORL is controlled by the Israel Corporation Ltd. and Israel Petrochemical
Enterprises Ltd., both public companies whose shares are traded on the Tel
Aviv Stock Exchange.
The above noted in this release includes forward-looking statements based on
Company data, as well as Company plans and estimations based on this data. The
activity, results and other data may be substantially different in reality
given uncertainty and various risks, including those discussed under risk
factors in the Company's financial statements and Director's report
Company Contact: Rony Solonicof Chief Economist and Head of Investor Relations
Tel. +972-4-878-8152 Contact IREn@orl.co.il Ehud Helft / Porat Saar CCG Israel
Tel. (US) +1-646-233-2161 / (Int.) +972-52-776-3687 email@example.com
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