保山中医药高等专科学校课件.pptx

1、CLEAN FUELS UPGRADE at PETROTRINS POINTE-A-PIERRE REFINERY Mendoza,Argentina October 31,2006Steve Hilaire1OUTLINEnIntroductionnBusiness Background nScopenEconomicsnCapital Expenditure nResults&BenefitsnProject RisksnStatusnFinancing Template2LOCATION MAP OF TRINIDADCUBAHONDURASNICARAGUACOSTA RICAPAN

2、AMAJAMAICAHISPANIOLAPUERTORICOTRINIDADTOBAGOYUCATANGUATEMALAELSALVADORFLORIDACOLOMBIAWEST INDIES90 W80 W70 W60 WMEXICO20 N30 N10 N90 W80 W70 W20 N30 N10 NGulf of MexicoCaribbean SeaAtlantic Ocean60 WSEE INSETVENEZUELAAtlantic OceanC a r i b b e a n S e aNGulf ofPariaC o l u m b u s C h a n n e lTRIN

3、IDADINSETTOBAGOGeostar1-lmot.cdr-19963Introduction About Trinidad&TobagonAccess to emerging&developed marketsnHighly skilled and trained workforcenStable economic/political environmentnGlobal leader innExport of MethanolnExport of AmmonianExport of LNG to USA4Introduction PETROTRIN Historyn1917:Comm

4、ence Operations of P-a-P Refineryn1940/41:Eastern Refinery Establishedn1952:FCCU Installedn1956:Acquisition by Texacon1958:No 1 CRU Gasoline Upgrade&BTXn1960/62:No 8 CDU,No 1 HTU,No 2 CRUn1964/66:Lube Oil&Normal Paraffinsn1972:No 4 VDU&No 2 HTU Fuel Oil Desulfn1985:Acquisition by Staten1992/96:Refin

5、ery Upgrade Phase 1nIncreased Conversion&Full Refining CapacitynPartial Revamp of FCCUnRehab of No 2 HTU,No 2 CRU,nNew Units:VBU,Hydrogen,Sulfur,MTBEnDCS Controls5Introduction PETROTRIN OVERVIEWnFully State-ownednCommercially operatednIntegratednExplorationnProductionnRefiningnMarketing6Introduction

6、 Crude Oil SupplynCrude capacity 168 MBPCDnCurrent conversion capacity 150 MBPDnLocal crude 40 45%(low cetane gas oil)nImported crudesnVenezuelanBrazilnColumbia nEcuadornWest Africa(high cetane)7Introduction Product SupplynMarketsnLocal 100%-18%of VolumenRegional 75%-30%of VolumenExtra regional 5%-2

7、0%of VolumenInternational -32%of VolumenApprox 10%volume-unfinished/low value productsnCRU naphthanLow octane mogasnFCCU feed(VGO)8Introduction:Operational Performance R&MFinancial PerformanceProfitabilityCash FlowROACEMarket PriceMix+VolumesDirect CostOtherSustainingGrowthSales RevenueOPEXCAPEXTher

8、e are multiple areas where changes could improve future financial performance Performance Factors Petrotrin is highly sensitive to market price because it is a merchant refinerHigh fuel oil cut&low value products reduces profitsLacks clean fuels capacityHigh unit operating costs compared to peersInd

9、igenous crude only supplies 40%of needsHigh spend on maintaining competitiveness of old infrastructureProject delays/deferrals have led to missed opportunities 9Introduction:Operational Performance R&M PerformanceProfitabilityCash FlowROACEMarket PriceMix+VolumesDirect CostOtherSustainingGrowthSales

10、 RevenueOPEXCAPEX Current and Planned R&M Improvement InitiativesA mixture of upgrades and operational changes to improve performanceClean fuels upgrade in progressRefinery business improvement project(SGSI)E&P oil winning projects(halt production decline)Infrastructure upgrade(planning stage)Bottom

11、 of Barrel Upgrade(conceptual stage)Gasoline upgrade(implementation stage)10BUSINESS BACKGROUND Driving ForcesnGasoline Optimisation ProgramnEquipment Integrity nNo 1 CRU:3 of 4 Rxs Changed Expect 3 years MaxnNo 2 CRU:Remaining Life Estimated at 6 8 yearsnSale of Unfinished Low Value ProductnReforme

12、r Feed nLow Octane Gasoline nVGO as FCCU Feed nTighter SpecificationsnElimination of Lead&MTBE Octane&Volume LossnLower Benzene,Sulfur,Olefins and RVPnIncreased Octane Demand nShortfall of Premium Gasoline to some markets11BUSINESS BACKGROUND Driving Forces(Contd)nTighter Diesel SpecificationsnSulfu

13、r ReductionnCetane IncreasenDecrease in aromaticsnPhase II-BOB UpgradenHigh Fuel percent of Product SalesnShrinking Fuel Oil Market12BUSINESS BACKGROUND Options1.Discontinue Refining Operations nHuge economic impact on country and South in particular.2.New refinerynGrassroots facility US$3-4 Bn3.Upg

14、rade Current refinerynPerformance and Technology13 Scope Identified nGasoline Optimisation ProgramnFCCU:Upgrade nCapacity from 26,000 BPSD to 35,000 BPSDnProduct Octane from 81 MON to 83 MONnPre-Fractionation nRemove Benzene from CRU feednProvide feed for Isomerisationn Isomerisation nNew 7,400 BPSD

15、 using C5/C6 Naphtha Feed nImprove Octane from 70 MON to 80 MON14PROGRAM SCOPE(Contd)nCCR Platformer nReplace Fixed Bed Platformers nImprove product Octane from 86 MON to 90 MONnAlkylation nNew using C3/C4 ex FCCUnNew Acid Regen PlantnOptimize LPG ProductionnOffsites&UtilitiesnNew Boiler&Water Treat

16、ingnTanks,Transfer SystemsnPower SupplynControl equipmentnFlare System15PROGRAM SCOPE(Contd)nNew ULSD Hydrogenator n35,000 BPSD unit n8 9 point cetane liftn 25%aromatics n8 ppm S16Economics&Approval nLP model RunsnDelta economics nBase case vs enhancednPrice/markets scenario forecastnOptimum configu

17、ration determinednCapex EstimatesnPublished/licensor datanInflated for time/location/experiencenEconomics developednIncreased marginnDCFRORnNPVnPaybackn 17Economics&Approval nIncome statement/Cash Flows generatednSensitivity/Risk Analyses developednApproval ProcessnExecutive managementnBoardnShareho

18、lder-Cabinet 18CAPITAL EXPENDITURE nNew Units ISBL 630 MMnOSBL,Project Mgmt Other 170 MMTOTAL(2006)800 MMORIGINAL ESTIMATE650 MM (2005)19PROGRAM BENEFITS nGasoline Optimisation ProgramnIncrease Gasoline Quantity nTotal from 24%to 30%nEliminate Unfinished Products(Naphtha&VGO)nImprove Gasoline Qualit

19、y nIncrease MON from 83 to 86nReduce Benzene from 1.6%to 0.7%nReduce sulphur fron 41 ppm to 8 ppmnCustomer SatisfactionnLower Olefins in LPGnAbility to eliminate MTBE20PROGRAM BENEFITS(Contd)nULSD HTUnImprove Gas Oil Quality nIncrease Pool Cetane nReduce Aromatics/Pool Sulfur nImproved Operations of

20、 the P-a-P RefinerynEnergy Efficiency&Environmental Compliance nIncrease full refining capacity to 168 MBPCDnAbility to process sour,low cetane crudesnPetrocaribe(New)nProducts displaced from regional marketnImproved Quality can be marketed elsewhere 21COUNTRY BENEFITSnLocal Content:20%or US$160 mil

21、lionnMaximize local sub contractorsnOffsite Works by PetrotrinnConstruction Labor:14million hoursnPeak Site Labor:2,800nCorp Tax/UL:US$375 millionnSustained Operations of P-a-P RefinerynSecurity of Fuel Supply/PricesnEconomic Activity 22PROJECT RISKSnMarket/Product Pricing nDelay in Tighter Specs/Co

22、nservative Prices UsednCapital Cost OverrunnScope of WorknEPC Contracts Hybrid vs Lump SumnSchedule DelaysnStatutory ApprovalnExperienced EPC Contractors nIndustrial relations problemsnSkilled sub-contractor labour23PROJECT RISKSnTechnology:n Well Proven/State-of the ArtnEnvironmental:nNo new type o

23、f effluentnRefinery systems(current and proposed)adequatenFunding:nCurrent Market Conditions Ideal for Loan24StatusnPre Frac/IsomerizationnEPC awardednPiling commencednCommercial production Dec 2007nFCCU upgradenDiscussions on EPC award Hybrid contractnProject completion date April 2008 nCCR Platfor

24、mernEPC Negotiations completenETC December 2008nAlky/AcidnHybrid contract nLump sum for servicesnRe imbursable for Equipment/materials25Status Points to NotenGet Project Manager on board early.nLicensor estimates normally low.nDont forget infrastructure and servicesnIndustry quite busy Innovative bi

25、d requests required.nFast track procurement on long lead itemsnMonitoring and control essential 26GAS OPT PROGRAM-FINANCING PLAN MAJOR FINANCING OPTIONS MAJOR OPTIONCOMMENTSBank LoanCorporate BondStructured Commodity FinancePre-export loanNote:Fixed Rate funding with minimum 10 Year tenor and minimu

26、m 2 Year moratorium is preferred.27FINANCING SCHEDULETASKSTART DATEEND DATEApprovals from GovernmentCredit Rating Review by Moodys and Standard&PoorsApprovals from IADB,JBIC,EIB,CDB,MBIAEngagement of Financial AdvisorExpressions of Interest from,and short-listing of financial institutionsTendering,Selection&engagement of placement institutionEngagement of LawyerLoan Sourcing,Negotiation and Conclusion28