OREANDA-NEWS. September 08, 2010. The new shale oil refinery of Viru Keemia Grupp (Viru Chemical Group, VKG) that started operation in December has gone through the testing period and is gearing up production with a view to be working at full capacity next year.

Named Petroter, the refinery based near the northeastern city of Kohtla-Jarve processed about 50,000 tons of oil shale in August. In April and May the monthly amount processed was less than 20,000 tons, VKG's development director Jaanus Purga told BNS. He said the result for August was better than expected.

"What we can be glad about is that our people and operators have learned to run the plant," Purga said, adding that the periods between stoppages have become longer now as staff have become more experienced and the plant is not halted every time a red light lights up.

The plant consists 70 percent of non-standard equipment unique in the world and time is needed to fine-tune everything, the development director explained.

The refinery is projected to be able to process 750,000-800,000 tons of oil shale per year. With a monthly throughput of 70,000 tons it will process 700,000 tons in 10 months. Given that large plants like this require at least 1.5 months for service every year, operating half of the 11th month will bring it closet to 750,000 tons, said Purga.

The plant cost 1.1 billion kroons to build and it employs up to 100 personnel.

VKG is planning to set up a second similar plant of the same capacity soon. "The investment decision has not been made yet. We'll put this one to work properly first, so we'll be faced with less technological risk," Purga said.

VKG has been issued mining rights to 3.5 million tons of oil shale per year. "Our existing production facilities, the newly launched refinery and the new refinery will add up to 3.5 million," Purga added.

VKG exports 70 percent of its output.