A refinery is an industrial complex where, depending on the type of refinery (oil or gas), crude oil or gas condensates are converted into products with higher added value such as diesel, liquefied gas, gasoline, etc. Crude oil is not useful in its unprocessed form, but due to the presence of different hydrocarbons with different weight and carbon number, different products can be obtained. The oil refining method actually separates and increases the purity of its components. Since the production of crude oil from oil fields is always done; The construction of large-scale refineries has always been justified due to the relevant technologies and high capacity. But according to the problem of value creation of products, new approaches have been applied to the construction of refineries. Due to the increase in the population and the major use of products from the crude oil refinery, which are fuels; Attention is paid to the construction of small-scale refineries (Mini-Refinery). The need to build these refineries is due to consumers’ faster access to fuel products and other economic, cultural and social policies. Also, the construction of Mini-Refinery is a cheap solution to prevent selling raw materials.
It is expected that the operation of this project will start in 2026 with 80% of the nominal capacity and reach 100% of the nominal capacity in 2028. Based on this, the details of production and sales income of the project in the first years of operation are estimated as described in the following table.
As can be seen, the total fixed investment costs (net of interest) of the project are estimated at 100 million euros.
The total area of land required, including utility and offsite units, construction operations, street construction, etc., is estimated to be about 10 hectares, and the cost of providing it is estimated at about 1,500 Thousand Euro. The details of the land placement are as described in the following table.
The total annual production costs including the cost of feed, energy, maintenance, spare parts, personnel, unforeseen and administrative and organizational costs in 2026 (the first year of operation) and with a performance factor of 80%, the nominal capacity is about 207,599 It is one thousand euros, which is estimated to be about 212,954 thousand euros, including consumption and financing costs. Also, taking into account the costs of dock, environment, research and development, marketing, advertising and sales, the total price of the products is estimated at 218,180 thousand euros as described in the table below. In 2027, when the performance factor of the plan reaches 90% of the nominal capacity, the finished price of the products is estimated to be around 244,783 thousand euros, and in 2028, when it reaches 100%, it is estimated to be around 271,386 thousand euros.
The cost of providing feed for the project at 100% of the nominal capacity is estimated at 233,062 thousand euros as described in the table below.
The total energy costs required by the project during the operation period include the purchase of electricity, water and fuel gas. The required utility cost of the project at 100% of the nominal capacity is estimated at 15,900 thousand euros as described in the table below.
The statement of profit (loss) is calculated as described in the table below. The remaining profit in the first year of operation is about 18,059 thousand euros, which will reach about 20,768 thousand euros in the second year of operation and about 23,477 thousand euros in the third year of operation.
– Based on the calculations, the total investment internal rate of return (IRR) of the plan according to 15 years of operation is equal to 21.29%.
– Based on the calculations, the internal rate of return on investment from the shareholder’s point of view (IRRE) of the plan according to 15 years of operation is equal to 21.29%.
– The investment return period of the project is expected to be about 6 years and 4 months from the beginning of the construction period. In the table below, the most important results of financial calculations of the project are presented
