1.7 Refining

During the year 2015, the refinery operated normally with its new configuration that allows the production of automotive naphtha with a maximum content of sulfur of 30 ppm, gas oil with 50 ppm and with a reduction in the atmospheric emissions of this component due to the production of elemental sulfur.

Moreover, the use of biofuels of national origin in products intended for the internal market has increased during the year. The percentages of the mix are 10%, in volume of ethanol in Super and Premium Petrol, and 7%, in volume of biodiesel in gasoil 50S.

Regarding the volume of raw materials processed in the Refinery in 2015 (crude oil and intermediate products), it reached 2.3 million cubic meters, which was similar to last year´s value.

The indicator for usage of assets in the Refinery, which considers the flow fed to each process Unit, reached a value, at the end of the year, of 65%, more than the value reached last year.

Also, during this year, a higher level of usage of the new Desulfurization Units was reached. These had a usage 15% higher than last year.

The crudes supplied to the Refinery were modified to include a higher proportion of Latin American crude, in particular Brazilian crude: the percentage of processed crude from this country increased from 3% in 2013 to 13% in 2014 to 24% in 2015. These crudes enable the production of fuel oil with a low sulfur content, which reduce the impact on the environment in line with improvements in the quality of gasoline and gasoil.

The variable operational refining costs per barrel of processed raw material (Solomon definition) significantly decreased with regard to the values of 2014 in line with the reduction in the cost of crude oil barrel that took place in the last year.

For the next year the plan is to make modifications in the configuration in order to implement the Project for the Expansion of the Processing Capacity of the Topping and Vacuum Units. This project will allow for an increase of the global use of the refinery, to raise the offer of products to all the markets and to improve the efficiency indicators.

Considering the long run, a Preliminary Feasibility study has finished regarding a project to increase the capacity of conversion in order to raise the value of the refined barrel. Of all the possible options, bearing in mind the limitations in the capacity of investment, a Solvent Deasphalting Unit (SDA) was selected, which would allow an additional conversion of the residual products in gasoline and gas oil and would produce asphalt concrete with a great variety of crude oils. The return of this investment is based on the creation of an additional profit due to greater conversion and the expansion of the offer of crude oil in order to produce asphalt.