It was a surprise to hear an unfamiliar voice among the clamor of a recent conference in Vienna on refining in the former Soviet Union.
Delegates to the Second International Conference on the Refining Industry in the FSU heard reports from chiefs of large refineries in Russia and Ukraine on upgrades - or at least efforts to finance them. Delegates also received a rare insight into the oil industry of Belarus.
Anton Loiko, president of Belnefteproduct, outlined the republic's prospects and ambitions for an oil industry privatization program.
Belnefteproduct was founded in 1966, when commercial production of oil in the republic began. Now the company produces from 24 oil fields in the Pripjat trough area of Southeast Belarus.
So far, Belarus is estimated to have yielded 38 million metric tons of oil. Loiko said that as of Jan. 1, 1994, Belarus was estimated to hold reserves of 70.9 million metric tons of oil, with the potential to boost this by further exploration to 199.3 million metric tons.
SHORTFALLS
Oil production in Belar-us peaked at 8 million metric tons/year in 1975. This fell away to 2 million metric tons/year by 1985, at which point production stabilized. Since dissolution of the Soviet Union, however, Belarus has not escaped the problems that have hamstrung the FSU oil industry.
"Transition to market economy financing of geological work ha; brought severe reductions," Loiko said. Replacement of equipment and machinery has slowed and, with it, the introduction of new methods and technologies for exploration and production."
Now Loiko reckons investment of 100 billion rubles/year is needed to return Belarus oil production to 2 million metric tons/year from existing fields.
joint ventures with Russian and foreign oil companies are seen as a way to secure funding: "Draft legislation is being studied with the intention of creating the best possible conditions for investment."
Here the refining sector has the edge. Belarus has two refineries, the 24 million metric ton/year capacity Naftan unit at Novopolotsk and the 16 million metric ton/year capacity Mozyr refinery.
RUSSIAN PARTNERS
Petroleum products demand in Belarus is expected to be 14-15 million metric tons this year. However, lack of crude oil supplies and shallow refining have meant products demand has not been met recently. Government has had to act to secure supplies of fuel and lubricating oils for Belarus.
The Mozyr refinery has been privatized with establishment of Slavneft Oil & Gas Co., a joint stock company owned by the Mozyr refinery and the Megionneftegaz production company of Tyumen, western Siberia.
Slavneft plans to refine 6 million metric tons/year of Siberian oil at the Mozyr plant. Loiko said a similar plan for Russian/Belarussian joint stock ownership of the Naftan plant is being examined.
He said, "This policy of combining capital to create joint Russian/Belarussian joint stock enterprises should lead to an interest on both sides in oil production and refining, an increase in export potential, and saturation of the home petroleum products market."
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