Gazprom Neft Increases Omsk Refinery Investment, Oil Daily Says

Gazprom Neft JSC (SIBN) will spend 115.3 billion rubles ($3.7 billion) from 2012 to 2020 to upgrade its Omsk facility to comply with new tax laws, the International Oil Daily reported today, citing a refinery official.

Refiners will be forced to improve fuel quality and expand output range under the tax changes, the paper said. An increased portion of Gazprom’s investment will go to a new gasoline hydrocracker to be brought online in January 2012 and a new gasoil hydrocracker four months later, Omsk general director Oleg Belyavsky said last week, according to the newsletter.

The gasoline unit will be able to produce 1.2 million metric tons a year, and the gasoil unit will produce as much as 3 million tons a year, the newsletter reported. The refinery, which now has capacity of 286,200 barrels a day, plans to stop producing Euro-3 grade fuels in 2013 to boost Euro-4 and Euro-5 fuel output, it said.

To contact the reporter on this story: Jacob Adelman in Tokyo at jadelman1@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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