TAKREER’S STRATEGY FOR VALUE ADDITION BY BASE OIL PRODUCTION Presented by Ali Mohamed Al Mansoori Manager, Planning and Supply Chain Department 1 World Class Company Since inception in Year 1999, Abu Dhabi Oil Refining Company (TAKREER) has been striving hard to produce Cleaner Fuels while focusing on Technology Upgrade, Value Addition and Refining Margin Improvement. Adoption of highest HSEF standards through Quality Management, Awareness and continuous development. Contributes to Sustainability by stressing economic, environmental, and social responsibility in our business practices. Commitment towards Emiratisation programme and Human Capital development, One step up, Economy will pep up Supply Division - Abu Dhabi Oil Refining Company (TAKREER) 2 We Walk the Talk ….. Central Environment Protection Facilities Project (BeAAT) The BeAAT Project is being implemented to safely receive, manage, treat and dispose hazardous waste generated by ADNOC, its Group of Companies and Independent Oil and Gas Operators (collectively referred to as OPCOs) to ensure that human health and the environment are adequately protected. Inter Refineries Pipelines ( IRP ) The Main Objective of the project is to transport the desired product throughputs between various locations of the Company in a safe and environmental friendly manner, especially between Ruwais and Abu Dhabi Refineries and Mussafah Depot to eliminate current inter-Refinery Shipping and meet the increasing market demand. One step up, Economy will pep up Supply Division - Abu Dhabi Oil Refining Company (TAKREER) 3 We Walk the Talk ….. Green Diesel Project Modern, flexible and reliable Plant with main objective to produce a very high quality product (Green Diesel) with (10 ppm) Sulfur for better, safe and clean Environment. Ruwais Refinery Expansion Project TAKREER operates today at 490,000 Barrels per day name plate capacity at its two sites in Abu Dhabi and Ruwais. Ruwais Refinery Expansion Project aims at increasing the crude oil refining capacity by 417,000 barrel per day with the latest advanced Technology for down stream processing units to produce high quality products. The Project is a perfect synergy between Refining and petrochemical plants at Ruwais Industrial area. One step up, Economy will pep up Supply Division - Abu Dhabi Oil Refining Company (TAKREER) 4 Base Oil Production Facilities The planned facility will be capable of producing 500,000 tons per year of Group III Base Oil as well as 100,000 tons per year of Group II Base Oil. The Project comprises a new Pre-Distillation, Hydroisomerization and Product Distillation Units. It also includes a revamp of the existing Hydrocracker Unit, new storage tanks and integration with existing refinery units and utilities. TAKREER’s existing Hydrocracker complex will provide the feed stock for the Project; integrated with the latest Hydro-processing technology for producing high quality base oils that comply with U.A.E. and International Environmental Standards. The PROJECT is due to meet commercial production by end of 2015. One step up, Economy will pep up Supply Division - Abu Dhabi Oil Refining Company (TAKREER) 5 Why Base Oil Production? Group III Base Oil is a high quality and environmental friendly base oil used for blending top-tier lubricants for car engines. Known to boost engine performance, they are excellent choices for the formulation of high performance engine oil as well as for compressor and hydraulic oil formulations. Group III base oils also have the added value of producing less harmful emissions and waste. The Lube Base Oil Business is a high margin Business given relatively high entry barriers with higher prices than Distillates, the high quality Group-III Base Oil is definitely significant contributor to Company's Profitability and improve Refining Margins. One step up, Economy will pep up Supply Division - Abu Dhabi Oil Refining Company (TAKREER) 6 Process Flow Diagram Straight Run Residue LVGO Naphtha Kerosene Diesel Expanded Vacuum Unit Fuel Oil Blending BOU HVGO Unibon Pre-Distillation Hydroisomerization Product Distillation Group II Base Oils Group III Base Oils Unconverted Oil One step up, Economy will pep up Supply Division - Abu Dhabi Oil Refining Company (TAKREER) 7 Estimated Annual Production BOU Design (TPA) HCK 60% conv (TPA) HCK 70% conv (TPA) 2.0 Cst * 8,800 7,300 5,600 4.3 Cst * 120,800 101,000 77,000 2.0 Cst** 20,200 17,000 12,500 3.0 Cst** 79,700 65,000 49,000 6.0 Cst** 457,300 380,000 289,000 Total Group II 108,700 89,300 67,100 Total Group III 578,100 481,000 366,000 Product * 4.3 Cst Campaign ** 6.0 Cst Campaign One step up, Economy will pep up Supply Division - Abu Dhabi Oil Refining Company (TAKREER) 8 Predicted Product Qualities Product 3.0 Cst 4.3 Cst 6.0 Cst VI, Min 100 121 125 Pour Point , C Min -24 -18 -15 Flash Point C Min 170 220 220 NOACK Volatility, wt%, Max 14.1 8.0 CCS@ -30, mPas, Max 1800 4500 10 10 10 Clear & Bright Clear & Bright Clear & Bright Sulfur, PPM, Max Appearance One step up, Economy will pep up Supply Division - Abu Dhabi Oil Refining Company (TAKREER) 9 Thank You All 10