Zeeland Refinery recently received a 40 million euro investment from its main asset holders Total (55%) and Lukoil (45%) in order to cushion the difficult times in the oil industry. In Europe there is an overcapacity in the oil refining business but with this major financial boost, Zeeland Refinery keeps its eye on the price.
Mr Descazeaud, General Manager at Zeeland Refinery.
Their hydrocracker is already renowned as one of the biggest in the world and the goal is to improve its effectiveness even further by adding a third reactor. In an interview with Zeeland PortNews, General Manager Tanneguy Descazeaud explains the latest developments at Zeeland Refinery.
How is it that Zeeland refinery recently received a 40 million euro investment whilst other refineries across Europe are closing their doors?
“It is not easy to be a player in the oil refining industry today due to the overcapacity in Europe. The current low oil price ensures that this applies not only to refining but to all businesses within the sector. The recent investment has done us good and ensures we can keep advancing in the future. What sets us apart is the way we function as a company. We have extremely motivated employees who ensure that Zeeland Refinery keeps producing optimally. By investing in the refinery, the asset holder reflects his trust in the team. It ensures that we can stimulate our flexibility to process a broad range of raw materials. It also means we can enhance our energy efficiency and sustainability as well as lower our operational costs.”
When can we expect to see the latest developments come into service?
“We are adjusting the hydrocracker, the part of the process that ensures that the heavy oil is converted into gasoline, diesel, kerosene, lubrication oil or petrochemicals bases. At the heart of this project lies a new reactor. We expect it to arrive in 2019 and believe me, we will know when it does; it weighs 800 tons! The full project should come into service by 2020.”
What are the challenges you foresee within the industry?
“I think the main challenge is the unpredictability and instability of the market. The fluctuating oil price is definitely something to keep monitoring. At the same time, the recent investment ensures we have a safeguard against hard times. The other challenge remains the evolution of legislation in Europe and especially with regard to the Netherlands. I am not against EU regulations on environmental improvements or emissions reduction but I do think that the competitiveness of our industry should be taken into consideration and must not be affected. Dutch regulations are currently even stricter than EU legislation; in order to keep a level playing field, we should be aware of this threat.”
Do you think that businesses in the region will profit from the investment?
“Yes. Apart from securing the jobs of our own 420 employees, there will be, on average, about 75 to 100 people, either Zeeland Refinery employees or contractors, working on this project for the upcoming three years. Local contracting companies will definitely take part in the project.”
On a personal note, what brings you to Zeeland Refinery?
“When I finished my dual MA in Chemical Engineering and Physical Chemistry in Paris, France, national service was still mandatory. At the time, you could choose between an 11-month period in the army or a 16-month assignment in a French company abroad. I chose the latter and was placed by the French concern TOTAL at Zeeland Refinery. I worked here from 1998 to 2007 and loved it. I enjoyed the company and Zeeland, the province. I also married a real ‘Zeeuwse’. When I left the company in 2007, I knew I would love to come back here one day. With my wife and our three children we spent the next eight years working and moving from Paris, to Marseille and Martinique. When they asked me to come back to Zeeland Refinery, I immediately agreed. I feel at home here in Zeeland and am happy to be back.”
