SEPTEMBER2018 SOCAR Polymer Newsletter / Issue 9 / 2018 IN THIS ISSUE: Azerbaijan-Russia relations growing Control Room - the brain of our plants Tecnimont celebrated achievement of stronger p.7 p.8 16 mln LTI-free manhours p.10 592 17,954,550 Employees Man-hours LTI Free 98.4% HDPE Total progress in September 1 Who you are tomorrow begins with what you do today Dear colleagues, key to building experience and are a good resume builder, providing the building blocks needed for confidence in the It is common knowledge that industrial progress and future. Whether an internship is paid, for credit, unpaid or success lies not only with state-of-the-art technology, but not-for-credit doesn't change its value. Internships are also with progressive and capable human resources that investments in your future. catch the wave of development and carry it on for greater And like every year, in conclusion of the summer program, results and sustainability. Keeping that in mind, SOCAR we have watched the presentations prepared by the finalists Polymer is implementing its annual Summer Internship to report about what they have learned, and how they Program looking out for talented and enthusiastic youths have benefitted from and contributed to SOCAR Polymer who by way of their academic studies and early career during their internship period. It is pleasant to see interns’ steps are carrying the promise of becoming prominent zeal for self-improvement and their own perception of the specialists in their fields of specialization relevant to the progress they have made with SOCAR Polymer’s guidance chemical industry. and assistance. It has also been a good opportunity to Considering the growing need for new specialists in evaluate the potential for the industrial development to the chemical industry of our country, SOCAR Polymer is be supported by the human resources of the current and committed to providing internship and, furthermore, part- or coming generations. full-time job opportunities for youths to help them set a solid foundation for a dynamic career. Wishing them every success on their way, For three running years, we have opened our doors to senior students and fresh graduates well aware of the saying ‘You need experience to get experience’. A practical work background carries a major significance when attempting to enter the job market. Employers in today’s labor market rely heavily on resumes that illustrate a relevant work history, whether that’s from internships, volunteer work, or actual job experience. It is a big issue for young adults transitioning into the workforce. Internships are Farid Jafarov 2 September 2018 Site Photos 3 PROGRESS ON SITE DURING SEPTEMBER HDPE plant HDPE: Blending Silos. HDPE: Extrusion Structure. Piping insulation ongoing Piping insulation completed. Doors installation almost completed HDPE: Organoleptic Structure and Effluent Treatment. HDPE: Polymerization. Piping installation ongoing Cable tray cover installation and piping insulation works ongoing 4 HDPE: Electrical Substation. HDPE: Pellet blower package space for logistic conveying. Cabling and termination completed Piping insulation ongoing HDPE: Reactor Dump tank. HDPE: Low Pressure Solvent Recovery. Electrical works in progress Piping insulation and painting works ongoing HDPE: Bagging & Packing. Valve and Flange Boxes insulation fabrication and installation started 5 HDPE: Ethylene Treatment. Piping insulation and painting works ongoing Project progress status HDPE Plant Progress Disciplines Cumulative Progress Detailed Engineering 100% Procurement Orders 100% Subcontracting 100% Material Supply – Manufacturing and Delivery 100% Construction 98.8% Overall 98.4% 6 Azerbaijan-Russia relations growing stronger On 4 September 2018, the General Manager of SOCAR Polymer LLC and General Director of SOCAR RUS LLC Farid Jafarov gave an interview to the Head of the RealTV Azerbaijan broadcasting company, Mirshahin Agayev. The topic of the interview was Azerbaijan-Russia relations in the light of the agreements signed in the framework of President Ilham Aliyev’s recent official visit to Sochi on 1 September 2018. The signed agreements envisaged expanded cooperation between SOCAR, Rosneft and Gazprombank. Farid Jafarov spoke in general about the economic relations between Azerbaijan and Russia with an emphasis on the positive approach Russia’s government bodies demonstrate towards Azerbaijani companies whether private or public, and specifically about the subjects of the recently signed agreements. Thus, in particular, under one of the agreements, Rosneft which is a 10%-public-owned company with an annual production rate exceeding 200 mln tons and with sales normally carried out based on the highest bid prices proposed by oil buyers, has undertaken to supply 1 mln tons of heavy crude oil to SOCAR’s oil refinery in Turkey outside of any such bidding process. Upon mentioning that the Turkey-based oil refinery is a modern plant capable of processing 10 mln tons of heavy crude oil per annum, Mr. is evident that both countries are on the friendly end of Jafarov underlined that whereas heavy oils are approximately the spectrum. Upstream projects are all large-scaled, $3/barrel cheaper than light oils such as Azeri light oil, the costing at least 1 billion USD and not only promising big calculated difference per ton of heavy vs. light oil will make revenues, but also involving quite real risks. Fair sharing of up $20 USD. “So, every million tons of heavy oils refined the risks is a fertile soil for productive cooperation in such at SOCAR’s plant in Turkey will earn $22 mln of additional projects. As the head of the SOCAR Russia company, I income for Azerbaijan, which can be further increased can say that our objective from the very start has been to beyond the $200 mln USD per annum mark once the refinery find such areas of economic activity in which our bilateral reaches its design capacity rate. Such broad prospects cooperation would benefit both countries. For Azerbaijan for cooperation promised by the mentioned agreement companies, equipment manufactured in Russia is gaining demonstrate the Russian government’s highly positive competitive advantages owing to lower price and up-to- approach to expanding and developing its multidimensional date technologies applied in its production,” the General relations with our country.” Manager went on saying. “The second document signed at the Sochi meeting “In my opinion, these agreements are a strong signal to envisages Rosneft company’s cooperation with SOCAR in oil the government bodies, companies and people of Russia field exploration in Azerbaijan. Like all upstream agreements indicating that Russia is willing to expand long-term this one is concluded for a long term, thus, manifesting partnership and friendship with Azerbaijan,” he said in reply Russia’s trust in durable economic and social relations with to the question about the overall significance of the three Azerbaijan and promising long-term investments into the signed agreements. upstream sector of our economy,” Mr. Jafarov said. In the course of the interview, Mr. Jafarov also touched upon the successful performance of the SOCAR Trading The third document was signed between SOCAR, company, which has recently been rated 9th among the Gazprombank and Russian Expo Centre. In this connection, world’s top traders. He underlined that with almost 48 Farid Jafarov elaborated on the favourable terms and fruitful billion USD of annual turnover reported by the company in results of previous cooperation with Gazprombank. 2017, only about 25% of the traded goods/materials are of Azerbaijan origin. F.Jafarov elaborated on the favourable terms and fruitful results of previous cooperation with Gazprombank: The interview that lasted a little under 20 minutes is available “When it comes to defining the bilateral relations between online via the following link: Russia and Azerbaijan as friendly or else competitive, it https://www.youtube.com/watch?v=l0W3y2L_Hqg 7 Control Room – the brain of our plants Advanced design A control room, operations center, or operations control center (OCC) is a room that serves as a central space where a large physical facility can be monitored and controlled. Its purpose is production control. Historical The Control Room at the SOCAR Polymer plant is located in a separate building away from the chemical processing units. Whatever the location, a control room must be a safe premise where operators can efficiently and productively note manage chemical processes and plant utility structures during real-time production. Central control rooms came into general Equipped with multiple electronic desktop screens, control use in factories during the 1920s panels, and large wall displays visible from all locations within the space, the control room of the SOCAR Polymer production facility is manned on a "24/7/365" basis, and has shift teams claimed many lives and resulted in extensive damage to on duty at all times to ensure continuous vigilance. The facilities and equipment. The risks associated with certain Control Room itself is under continuous video surveillance and industries can be quite high owing not only to the probability recording, for security and personnel accountability purposes. of an accident, but also to the devastating consequences. Due to the vital importance of continuous control room Not every chemical processing facility built in the past 50 operability, the OCC building is provided with special years can boast a design that has taken most such risks into electrical uninterruptible power supply (UPS) feeds account. and air conditioning. There is a separate UPS room in the building, as well as a telecommunication room with Events that may affect a control room at a chemical telecommunication lines, a room with racks of equipment production site are: receiving data from sensor data transmitters, an electrical room with switchboards, an engineering room for • Vapour Cloud Explosions (VCEs) instrumentation technicians, a file store room, a meeting • Expanding Vapour Explosions room, an administrative room, an OPS training room, and 2 • Pressure bursts rooms for PP and HDPE shift supervisors.