STAVROLEN RESUMES MANUFACTURING PROCESS

Tuesday, May 27, 2014

The OAO LUKOIL Press Service announces that the commission working under the Caucasian Department of Rostekhnadzor (Russian technical supervisory authority) yesterday completed its investigation into the causes of the fire outbreak on February 26, 2014 in the gas-separation unit of ethylene- and propylene- production workshop No. 2 of the petrochemical enterprise Stavrolen (member of LUKOIL Group).

The commission found that the fire outbreak had been caused by depressurization of the aluminum heat exchanger due to the fracture of a corrugated plate in the left heat-exchange section. The commission also recognized the actions of the personnel during the accident as competent and timely.

Currently, dynamic repair and maintenance operations are being conducted at the site. The capacities for production of ethylene and propylene are expected to be recovered in January of 2015.

The enterprise will reach technical readiness for polypropylene production from imported feed stock (propylene) by June 1, 2014. The decision on propylene purchase from third-party manufacturers will be made based on the market conditions at the time.