Refining Petrochemicals Technology Solutions through Integrated Optimisation Matthew

Agenda Market Overview Why Integrate? Maximum Fuels to Maximum Petrochemicals UOP 5794 -2

Petrochemical Demand Soars into the Future Million MTA Paraxylene Demand 60 100% Increase! 40

Ethylene Cracker Feedstock is Variable by Region 100% 90% 80% Percent 70% 60% 50%

Ethylene Production Costs are Increasing Ethylene Cash Cost Curve Ethylene CCOP $/MT 1, 050

Major Oil Companies Recognize Value of Integration Percent of Ethylene Capacity Integrated with a

Why Integrate? Secure reliable feedstock supply at reduced cost Increase product valuation Refinery Processes

What is Refinery-Petrochemical Integration? Fuel Gas Refinery Processes Light Naphtha/ LPG Heavy Naphtha Reformate

What is Refinery-Petrochemical Integration? Fuel Gas Refinery Processes Light Naphtha/ LPG Heavy Naphtha $600/Te

Maximum Fuels to Maximum Petrochemicals Case Study 400 KBPD FCC Based Complex – Case

Integration Example: FCC Based Complex Case 1 Light Naphtha/LPG F. G. Heavy Naphtha Gasoline

Integration Example Yields: FCC Based Complex Case 1 $22 50% Product Yield (Wt-%) 40%

Integration Example: FCC Based Complex Case 2 Light Naphtha/LPG C 3= Recovery C 3=

Integration Example Yields: FCC Based Complex Case 2 $22 50% Product Yield (Wt-%) 40%

Integration Example: FCC Based Complex Case 3 Light Naphtha/LPG C 3= Recovery C 3=

Integration Example Yields: FCC Based Complex Case 2 $22 50% Fuel/Coke Distillate 43% Gasoline

Integration Example Yields: FCC Based Complex Case 3 $22 50% 43% BTX C 3=

Integration Example: FCC Based Complex Case 4 C 2=/C 3= Recovery Light Naphtha/LPG C

Integration Example Yields: FCC Based Complex Case 3 $22 50% C 3= $20 $18

Integration Example Yields: FCC Based Complex Case 4 $22 50% BTX C 2= C

Integration Example: FCC Based Complex Case 5 C 2=/C 3= Recovery Light Naphtha/LPG C

Integration Example Yields: FCC Based Complex Case 4 $22 Fuel/Coke Distillate 45% Gasoline LPG

Integration Example Yields: FCC Based Complex Case 5 $22 50% Gasoline LPG C 3=

Integration Example Yields: FCC Based Complex Comparison $22 50% Gasoline LPG $20 41% 40%

Evaluating the Appropriate Conversion Technology Nat Gas H 2 Plant H 2 Off Gas

Evaluating the Appropriate Conversion Technology Nat Gas H 2 H 2 Plant Off Gas

Evaluating the Appropriate Conversion Technology Feed Streams (KMTD) Product Streams (KMTD) Delayed Coking/ Unicracking

Evaluating the Appropriate Operating Severity Nat Gas H 2 H 2 Plant Naphtha/LPG SR

Hydrotreating Severity Improves Olefin Yields FCC C 3= Yield (Lb/BBL FF) Commercial FCC C

Worlds Largest Process Licensing Organization Refining UOP Fluid Catalytic Cracking Process UOP LCO-XTM Process

Capture Integration Opportunities Project Objectives UOP Capabilities • Minimize energy consumption and environmental footprint

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Refining & Petrochemicals Technology Solutions through Integrated Optimisation Matthew Lippmann UOP LLC, A Honeywell Company Iraq Refinery 2012 April 17 -18 London, England © 2012 UOP LLC. All rights reserved. UOP 5794 -1

Agenda Market Overview Why Integrate? Maximum Fuels to Maximum Petrochemicals UOP 5794 -2

Petrochemical Demand Soars into the Future Million MTA Paraxylene Demand 60 100% Increase! 40 10 years 20 0 1990 90 million MTA of incremental light olefins needed over next 10 years 2000 2010 2020 Annual demand growth of 6. 7% u Additional Need for “On Purpose” Propylene Demand of p. X Projected to Double Over the Next 10 Years! UOP 5794 -3

Ethylene Cracker Feedstock is Variable by Region 100% 90% 80% Percent 70% 60% 50% 40% 30% 20% 10% 0% North South Europe America Ethane Propane CIS & Baltic States n-Butane Middle Northeast Southeast East/ Asia Africa Naphtha Gasoil Other Source: CMAI 2011 World Ethylene Cost Study Feedstock Selection Depends on Regional Feedstock Availability UOP 5794 -4

Ethylene Production Costs are Increasing Ethylene Cash Cost Curve Ethylene CCOP $/MT 1, 050 850 650 Middle East North America Source: CMAI 2009 Curve: February 10, 2010 Asia Light Olefins Market Advisory Service (Graphical Analysis) 2004 Curve: 2005 World Light Olefins Analysis 2009 Refinery NE Asia SE Asia Integration Western Europe 450 2004 250 50 0 20 40 60 80 Feedstock Price Increasing 100 120 140 160 Cumulative Ethylene Capacity (million tons) Offset Higher Feedstock Costs through Proper Refinery Integration UOP 5794 -5

Major Oil Companies Recognize Value of Integration Percent of Ethylene Capacity Integrated with a Refinery by Same Company in Europe 90% 74% 39% 24% BP Shell Total Exxon. Mobil Source: Morgan Stanley Trend Towards More Integrated Complexes is Increasing UOP 5794 -6

Why Integrate? Secure reliable feedstock supply at reduced cost Increase product valuation Refinery Processes Other Advantages: Reduced Shipping Costs Reduced Tankage Costs Common Offsites / Utilities Common Maintenance / Admin Upgrade of byproduct streams Petrochemical Processes Leverage Synergies to Maximize Product Values Lowers Operating & Capital Costs UOP 5794 -7

What is Refinery-Petrochemical Integration? Fuel Gas Refinery Processes Light Naphtha/ LPG Heavy Naphtha Reformate Distillate $600/Te $880/Te $870/Te $900/Te UOP 5794 -8

What is Refinery-Petrochemical Integration? Fuel Gas Refinery Processes Light Naphtha/ LPG Heavy Naphtha $600/Te $800/Te Petrochemical Processes C 2=/C 3= $1, 500/Te $880/Te BZ/p. X Reformate Distillate $870/Te $1, 200/Te $900/Te Integrated Complex Optimization Optimize Quantity and Quality of Intermediate Streams Select the Right Technology Solutions for the Integrated Complex UOP 5794 -10

Maximum Fuels to Maximum Petrochemicals Case Study 400 KBPD FCC Based Complex – Case 1: Traditional Fuels Refinery – Case 2: Fuels Refinery with BTX Complex – Case 3: Maximum Petrochemical Refinery – Case 4: Integrated Refinery – Petrochemical Complex – Case 5: Integrated Refinery – Petrochemical Complex – No Fuels UOP 5794 -11

Integration Example: FCC Based Complex Case 1 Light Naphtha/LPG F. G. Heavy Naphtha Gasoline CDU CCR Platforming Unit Distillate LCN HCN Crude Distillate Unionfining. TM Unit Gasoline Mode FCC Unit VDU Delayed Coking Pitch Diesel LCO CSO UOP 5794 -12

Integration Example Yields: FCC Based Complex Case 1 $22 50% Product Yield (Wt-%) 40% Gasoline LPG $20 41% $18 $16 35% $14 30% $12 25% 20% Net Margin = Product Values – Feedstock Cost – Variable Costs – Fixed Costs 18% $10 $8 15% $6 10% 5% 6% $4 Net Margin = Net Margin – Capital Charges Less Capital $2 0% $0 Low Severity FCC Unit (Fuels) Case 1 Net Operating Margin ($/BBL) Fuel/Coke Distillate 45% Case 2 Case 3 Case 4 Case 5 UOP 5794 -13

Integration Example Yields: FCC Based Complex Case 1 $22 50% Product Yield (Wt-%) 40% Gasoline LPG $20 41% $18 $16 ~75% Fuels 35% $14 30% $12 25% 20% $10 Net Margin 18% $8 15% $6 10% 5% $4 Net Margin Less Capital 6% $2 0% $0 Low Severity FCC Unit (Fuels) Case 1 Net Operating Margin ($/BBL) Fuel/Coke Distillate 45% Case 2 Case 3 Case 4 Case 5 Traditional Refinery Produces ~75% Transportation Fuels UOP 5794 -14

Integration Example: FCC Based Complex Case 1 Light Naphtha/LPG F. G. Heavy Naphtha Gasoline CDU CCR Platforming Unit Distillate LCN HCN Crude Distillate Unionfining Unit Gasoline Mode FCC Unit VDU Delayed Coking Pitch Diesel LCO CSO UOP 5794 -15

Integration Example: FCC Based Complex Case 2 Light Naphtha/LPG C 3= Recovery C 3= Heavy Naphtha Gasoline CDU CCR Platforming Unit Distillate Aromatics Complex LCN HCN Crude Distillate Unionfining Unit Med Severity FCC Unit VDU Delayed Coking Pitch Raffinate Bz p. X Diesel LCO CSO UOP 5794 -16

Integration Example Yields: FCC Based Complex Case 1 $22 50% Product Yield (Wt-%) 40% Gasoline LPG $20 41% $18 $16 35% $14 Delta Net Margin 30% $12 25% 20% $10 18% $8 15% 10% 5% $6 Net Margin Less 6%Capital $4 $2 0% $0 Low Severity FCC Unit (Fuels) Case 1 Net Operating Margin ($/BBL) Fuel/Coke Distillate 45% Case 2 Case 3 Case 4 Case 5 UOP 5794 -17

Integration Example Yields: FCC Based Complex Case 2 $22 50% Product Yield (Wt-%) 40% Fuel/Coke Distillate 43% 41% Gasoline LPG BTX C 3= $20 $18 $16 35% $14 Delta Net Margin 30% $12 25% 20% 18% $8 15% 10% 5% $10 21% Net Margin Less 6%Capital $6 13% 11% 9% $4 3% +16% BTX + C 3= $2 0% Low Severity FCC Unit (Fuels) Med Severity FCC Unit BTX Complex Case 1 Case 2 Net Operating Margin ($/BBL) 45% $0 Case 3 Case 4 Case 5 FCC Severity and BTX Complex Converts 16% of Gasoline Into Higher Value Petrochemicals UOP 5794 -18

Integration Example: FCC Based Complex Case 3 Light Naphtha/LPG C 3= Recovery C 3= Heavy Naphtha Gasoline CDU CCR Platforming Unit Distillate Aromatics Complex LCN HCN Crude Distillate Unionfining Unit Rx. Pro. TM High C 3= FCC Unit VDU Delayed Coking Pitch LCO Raffinate Bz p. X Diesel LCO Unicracking Unit CSO UOP 5794 -20

Integration Example Yields: FCC Based Complex Case 2 $22 50% Fuel/Coke Distillate 43% Gasoline LPG BTX C 3= $20 $18 Product Yield (Wt-%) 40% $16 35% 30% $14 Delta Net Margin $12 25% 20% $8 15% 10% 5% $10 21% Net Margin Less Capital $6 13% 11% 9% $4 $2 3% 0% Low Severity FCC Unit (Fuels) Med Severity FCC Unit BTX Complex Case 1 Case 2 Net Operating Margin ($/BBL) 45% $0 Case 3 Case 4 Case 5 UOP 5794 -21

Integration Example Yields: FCC Based Complex Case 3 $22 50% 43% BTX C 3= $20 41% 40% Product Yield (Wt-%) Gasoline LPG Fuel/Coke Distillate $18 $16 35% 30% $14 Delta Net Margin $12 25% 20% $8 15% 10% 5% $10 21% Net Margin Less Capital 15% 13% 11% 9% $6 10% 6% 7% +6% BTX + C 3= 3% 0% Low Severity FCC Unit (Fuels) Med Severity FCC Unit BTX Complex Rx. Pro FCC Unit BTX Complex LCO UC Unit Case 1 Case 2 Case 3 $4 Net Operating Margin ($/BBL) 45% $2 $0 Case 4 Case 5 Rx. Pro FCC and LCO Unicracking Unit Shifts Product Yields Towards BTX and C 3= UOP 5794 -22

Integration Example: FCC Based Complex Case 3 Light Naphtha/LPG C 3= Recovery C 3= Heavy Naphtha Gasoline CDU CCR Platforming Unit Distillate Aromatics Complex LCN HCN Crude Distillate Unionfining Unit Rx. Pro High C 3= FCC Unit VDU Delayed Coking Pitch LCO Raffinate Bz p. X Diesel LCO Unicracking Unit CSO UOP 5794 -23

Integration Example: FCC Based Complex Case 4 C 2=/C 3= Recovery Light Naphtha/LPG C 2=/C 3= Steam Cracker Heavy Naphtha Py. Gas CDU CCR Platforming Unit Distillate Aromatics Complex LCN HCN Crude Distillate Unionfining Unit Rx. Pro High C 3= FCC Unit VDU Delayed Coking Pitch LCO Raffinate Bz p. X Diesel LCO Unicracking Unit CSO UOP 5794 -24

Integration Example Yields: FCC Based Complex Case 3 $22 50% C 3= $20 $18 $16 35% 30% $14 Delta Net Margin $12 25% $10 21% 20% $8 15% 10% 5% $6 10% Net Margin Less Capital 6% $4 7% Net Operating Margin ($/BBL) BTX 41% 40% Product Yield (Wt-%) Gasoline LPG Fuel/Coke Distillate 45% $2 0% Low Severity FCC Unit (Fuels) Med Severity FCC Unit BTX Complex Rx. Pro FCC Unit BTX Complex LCO UC Unit Case 1 Case 2 Case 3 $0 Case 4 Case 5 UOP 5794 -25

Integration Example Yields: FCC Based Complex Case 4 $22 50% BTX C 2= C 3= $20 41% $18 $16 35% 30% $14 Delta Net Margin $12 25% 23% 20% 5% $8 17% 15% 10% $10 21% +4% C 2= 10% Net Margin Less Capital 6% 7% 8% 7% $4 4% $2 0% Low Severity FCC Unit (Fuels) Med Severity FCC Unit BTX Complex Rx. Pro FCC Unit BTX Complex LCO UC Unit Case 1 Case 2 Case 3 $0 Rx. Pro FCC Unit BTX Complex LCO UC Unit Steam Cracker Case 4 Steam Cracker Integration Enables Entry Into C 2= Market $6 Net Operating Margin ($/BBL) 41% 40% Product Yield (Wt-%) Gasoline LPG Fuel/Coke Distillate 45% Case 5 UOP 5794 -26

Integration Example: FCC Based Complex Case 5 C 2=/C 3= Recovery Light Naphtha/LPG C 2=/C 3= Steam Cracker Heavy Naphtha Py. Gas CDU Raffinate CCR Platforming Unit Distillate Aromatics Complex LCN HCN Bz p. X Crude Rx. Pro High C 3= FCC Unit VDU Delayed Coking Pitch Hvy Lt Naph LCO Full Conv Distillate Unicracking Unit CSO UOP 5794 -28

Integration Example Yields: FCC Based Complex Case 4 $22 Fuel/Coke Distillate 45% Gasoline LPG C 3= 41% 40% Product Yield (Wt-%) BTX C 2= $18 $16 35% 30% $14 Delta Net Margin $12 25% 23% $10 20% 5% $8 17% 15% 10% $20 $6 Net Margin Less Capital 8% 7% 4% 0% Low Severity FCC Unit (Fuels) Med Severity FCC Unit BTX Complex Rx. Pro FCC Unit BTX Complex LCO UC Unit Case 1 Case 2 Case 3 Rx. Pro FCC Unit BTX Complex LCO UC Unit Steam Cracker $4 Net Operating Margin ($/BBL) 50% $2 $0 Case 4 UOP 5794 -29

Integration Example Yields: FCC Based Complex Case 5 $22 50% Gasoline LPG C 3= 35% 30% $20 +32% BTX+C 3= +C 2= 41% 40% Product Yield (Wt-%) BTX C 2= $18 38% 31% Delta Net Margin $14 $12 25% 23% $10 20% 5% $8 17% 15% 10% $16 Net Margin Less Capital 8% 7% 12% 11% 8% 4% Case 1 Med Severity FCC Unit BTX Complex Case 2 Rx. Pro FCC Unit BTX Complex LCO UC Unit Case 3 Rx. Pro FCC Unit BTX Complex LCO UC Unit Steam Cracker Case 4 $4 $2 0% Low Severity FCC Unit (Fuels) $6 Net Operating Margin ($/BBL) Fuel/Coke Distillate 45% Rx. Pro FCC Unit BTX Complex LCO UC Unit Steam Cracker $0 (No Fuels) Case 5 Converting 100% of Fuels Increases Petrochemical Yields by 32 Wt-% UOP 5794 -30

Integration Example Yields: FCC Based Complex Comparison $22 50% Gasoline LPG $20 41% 40% Product Yield (Wt-%) C 3= C 2= $18 38% 35% 30% 31% Delta Net Margin 25% 23% 20% 5% $14 $12 Margin Optimum Identified $10 $8 17% 15% 10% $16 Net Margin Less Capital 8% 7% 12% 11% 8% 4% Case 1 Med Severity FCC Unit BTX Complex Case 2 Rx. Pro FCC Unit BTX Complex LCO UC Unit Case 3 Rx. Pro FCC Unit BTX Complex LCO UC Unit Steam Cracker Case 4 $4 $2 0% Low Severity FCC Unit (Fuels) $6 Net Operating Margin ($/BBL) Fuel/Coke Distillate 45% Rx. Pro FCC Unit BTX Complex LCO UC Unit Steam Cracker $0 (No Fuels) Case 5 UOP’s Extensive Technology Portfolio Can Optimize Configuration to Client Needs UOP 5794 -31

Evaluating the Appropriate Conversion Technology Nat Gas H 2 Plant H 2 Off Gas SR Naphtha Steam Cracker CDU Olefins Crude Oil Vacuum Unit Unicracking. TM Unit Aromatics Complex Aromatics Heavy Oils Delayed Coking Unit Coke UOP 5794 -32

Evaluating the Appropriate Conversion Technology Nat Gas H 2 H 2 Plant Off Gas SR Naphtha Steam Cracker Olefins Crude Oil RCD Unionfining. TM Unit RFCC Unit Coke Aromatics Complex Aromatics Heavy Oils LCO Unicracking. TM Unit UOP 5794 -33

Evaluating the Appropriate Conversion Technology Feed Streams (KMTD) Product Streams (KMTD) Delayed Coking/ Unicracking Complex RCD/RFCC Complex Delta Crude Oil 30 30 0. 0 Natural Gas 0. 7 1. 0 0. 3 Olefins 15. 4 16. 1 0. 7 Aromatics 4. 5 4. 1 (0. 4) Offgas 5. 3 5. 4 0. 1 Heavy Oils 3. 2 3. 3 0. 1 Coke 1. 6 0. 9 (0. 8) RCD/RFCC Complex Provides Higher Liquid Yields Offsetting Higher Capital and Operating Expense UOP 5794 -34

Evaluating the Appropriate Operating Severity Nat Gas H 2 H 2 Plant Naphtha/LPG SR Naphtha Steam Cracker Off Gas Olefins Crude Oil RCD Unionfining Unit RFCC Unit Coke HDT Severity Aromatics Complex Aromatics Heavy Oils LCO Unicracking. TM Unit UOP 5794 -35

Hydrotreating Severity Improves Olefin Yields FCC C 3= Yield (Lb/BBL FF) Commercial FCC C 3= Yields vs Feed Contaminants 40 Operating Units Hydrotreated Resid 35 30 Hydrotreating Severity 25 Straight Run Resid 20 10 20 30 40 FCC Feed Ni + V (wppm) Increased RCD Severity Increases Olefin Yields, Generates Additional SC Feedstock UOP 5794 -36

Worlds Largest Process Licensing Organization Refining UOP Fluid Catalytic Cracking Process UOP LCO-XTM Process UOP Unicracking. TM Process UOP Distillate Unionfining. TM Process UOP Select. Fining. TM Process UOP Merox. TM Process UOP Penex. TM Process UOP CCR Platforming. TM Process UOP HF Alkylation Process UOP RCD Unionfining. TM Process UOP Uniflex. TM Process Hydrogen UOP Polybed. TM PSA System UOP Polysep. TM Membrane System Aromatics UOP Parex. TM Process UOP Isomar. TM Process UOP Tatoray. TM Process UOP Sulfolane. TM Process UOP MX Sorbex. TM Process UOP Q-Max. TM Process Olefins UOP/HYDRO MTO Process Total Petrochemicals/UOP Olefins Cracking Process UOP Oleflex. TM Process UOP Max. Ene. TM Process UOP Propylene Recovery Unit Having the Best Technology Solutions is Not Enough UOP 5794 -37

Capture Integration Opportunities Project Objectives UOP Capabilities • Minimize energy consumption and environmental footprint • Cap. Ex/ Op. Ex Targets • Fuels/Petrochemical Product Slate • Rapid Project Implementation • Catalyst and Adsorbent Technology • Process Technology • Technical Services • Optimization Services • Field Operating Services Integration Opportunities Realized UOP offers unmatched capability to deliver customized, integrated solutions UOP 5794 -38

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