Product Quality Product Quality Product Quality Product Quality Improvement Improvement Improvement Improvement - - - PQI PQI PQI PQI
Product Quality Product Quality Product Quality Product Quality
Improvement Improvement Improvement Improvement ---- PQIPQIPQIPQI
26
To be Improved with PQI
USD/bbl
10
8
6
4
2
0
What is PQI ?What is PQI ? Result from PQIResult from PQI
CounterpartiesCounterparties
• PQI is the Investment in “Hydrocracking Unit” and
other supporting units
• These units enable BCP to turn current fuel oil
output to be gas oil without increasing the capacity
• Feasibility Study UOP LLC & Foster Wheeler Corporation
• Technology License UOP LLC
• EPC Contractor CTCI Corporation
• Project Mgnt Consultant Foster Wheeler Corporation
• Investment Cost USD 378 million• Construction Period May’06 – Sep’08
(28 months)
Investment & ConstructionInvestment & Construction
MEME FEFEMEME FEFE
CurrentSimple Refinery
AfterPQI Completion
Enhance
Crude Mix
Flexibility
Less FO
Output
Portion
Surge
GRM
CurrentSpread
CurrentSpread
FeasibilitySpread
LPG, 3%
LPG, 3%
LPG, 3%
LPG, 3%
Diesel, 37%Diesel, 37%Diesel, 37%Diesel, 37%
ULG, 15%ULG, 15%ULG, 15%ULG, 15%
Jet Fuel, Jet Fuel, Jet Fuel, Jet Fuel,
14%14%14%14%
Fuel Oil, Fuel Oil, Fuel Oil, Fuel Oil,
31%31%31%31%
LPG, 5%
LPG, 5%
LPG, 5%
LPG, 5%
Diesel, 52%Diesel, 52%Diesel, 52%Diesel, 52%
ULG, 25%ULG, 25%ULG, 25%ULG, 25%
Jet Fuel, Jet Fuel, Jet Fuel, Jet Fuel,
9%9%9%9%
Fuel Oil, 9%Fuel Oil, 9%Fuel Oil, 9%Fuel Oil, 9%
27
EBITDA after PQIEBITDA after PQIEBITDA after PQIEBITDA after PQI
“Return from investment competitive in long-term, hence BCP decided to pursue PQI”
Note: (1) EBITDA 2008F-2011F based on GO/DB USD15.25/bbl and FO/DB USD(12.51)/bbl(2)EBITDA (feasibility study) 2008F-2011F based on GO/DB USD10.5/bbl and FO/DB USD(3)/bblBoth cases based on gradually growing crude run from 65 KBSD before COD after that run max 100 KBSD
(1)
(2)
-
2,000
4,000
6,000
8,000
10,000
12,000
2003
2004
2005
2006
2007
F
2008
F
2009
F
2010
F
2011
F
THB mil
-
2
4
6
8
10
12
USD/bblEBITDA
EBITDA (feasibility study)
GRM
GRM (feasibility study)
28
Equity from PTT + FI 6,579
Loan 8,400
Operating Cash 390
Total 15,369
Equity from PTT + FI 6,579
Loan 8,400
Operating Cash 390
Total 15,369
EPC Contract Price 11,163
Owner supplies and other costs 1,505
Financing Cost (Net) 863(1)
Contingency 1,231(2)
Total 14,762(3)
EPC Contract Price 11,163
Owner supplies and other costs 1,505
Financing Cost (Net) 863(1)
Contingency 1,231(2)
Total 14,762(3)
Excess cash Bt 607 millionExcess cash Bt 607 million
Note: (1) Using fixed deposit rate of 5% (Interest receive from equity proceed)
(2) Using FX of Bt 41.03 per USD for conservative purpose.
(3) BCP has hedged all of FX exposure and interest rate risks, excluding contingency.
Sources vs. Uses of FundSources vs. Uses of FundSources vs. Uses of FundSources vs. Uses of Fund
Use for Additional PQI EnhancementUse for Additional PQI EnhancementUse for Additional PQI EnhancementUse for Additional PQI EnhancementUse for Additional PQI EnhancementUse for Additional PQI EnhancementUse for Additional PQI EnhancementUse for Additional PQI Enhancement
SourcesSourcesSourcesSources
UsesUsesUsesUses
Loan draw down (tentative) Loan draw down (tentative) Loan draw down (tentative) Loan draw down (tentative)
Total 6,330Total 2,040Total 30
1,774*2,040-
2,237--
820-30
1,499--
Y2008Y2008Y2008Y2008Y2007Y2007Y2007Y2007Y2006Y2006Y2006Y2006
Q1Q1
Q2Q2
Q3Q3
Q4Q4
Million Bt.
8,5258,5258,5258,525
2,6852,6852,6852,6852,5282,5282,5282,528
1,3011,3011,3011,301722722722722
1,3671,3671,3671,367
0000
2,0002,0002,0002,000
4,0004,0004,0004,000
6,0006,0006,0006,000
8,0008,0008,0008,000
10,00010,00010,00010,000
2007 2008 2009 2010 2011 > 5 Years
Q1Q1
Q2Q2
Q3Q3
Q4Q4
Q1Q1
Q2Q2
Q3Q3
Q4Q4
2007 2008 2009 2010 2011 > 5 Years
Million Bt.
Loan repayment schedule (Loan repayment schedule (Loan repayment schedule (Loan repayment schedule (Existing+PQIExisting+PQIExisting+PQIExisting+PQI))))
* Included Contingency Million Bt.
Million Bt.
29
0
10
20
30
40
50
60
70
80
90
100
110
Project Month & Accumulate %Project Month & Accumulate %Project Month & Accumulate %Project Month & Accumulate %
Progress %
Progress %
Progress %
Progress %
Plan 0.2 0.9 2.3 4.4 6.4 8.1 9.5 10.4 11.4 13.1 15.8 19.5 24.6 33.6 42.8 52.2 61.0 69.9 78.9 87.9 91.6 94.5 97.1 98.5 99.2 99.7 99.8 100.0 100.0100.0
Actual 1.0 2.5 3.0 5.6 8.0 8.7 9.7 11.2 15.0 18.5 20.9 23.4 30.2 34.1
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
All LLIs
delivery to site
Ready for piling
and civil work
Piping and Instrument
Diagram for
const ruction
Start of Distributed Cont rol
System factory acceptance test
Substation Power
no.5 energizedMechanical
Completion
Provisional
Acceptance
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Month
Jun
Jun
Jun
Jun-- -- 07
07
0707
2006 2007 2008
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep OctMay Jun Jul Aug Sep Oct
Overall Progress Curve Overall Progress Curve Overall Progress Curve Overall Progress Curve ((((EEEE////PPPP////CCCC))))
30
0000
20202020
40404040
60606060
80808080
100100100100
120120120120
JanJanJanJan AprAprAprApr JulJulJulJul OctOctOctOct JanJanJanJan AprAprAprApr JulJulJulJul OctOctOctOct
Production PlanProduction PlanProduction PlanProduction Plan
2007 2008
KBDKBDKBDKBD
Capacity (KBD)Capacity (KBD)Capacity (KBD)Capacity (KBD)
Plant no. 2Plant no. 2Plant no. 2Plant no. 2 40
Plant no. 3Plant no. 3Plant no. 3Plant no. 3 80
TotalTotalTotalTotal 120120120120
Expected Expected Expected Expected PQIPQIPQIPQI’’’’ssss
Commercial Commercial Commercial Commercial
Operation Date Operation Date Operation Date Operation Date
• Turnaround Plant 2 & 3Turnaround Plant 2 & 3Turnaround Plant 2 & 3Turnaround Plant 2 & 3
• Total shutdown ~ 12 daysTotal shutdown ~ 12 daysTotal shutdown ~ 12 daysTotal shutdown ~ 12 days
• TieTieTieTie----in PQIin PQIin PQIin PQI
Actual
Plan
31
ObjectiveObjective• COD - Beginning 4Q,08
• Run up to 100 KBD
• No Event of Defaults
Logistic
Manufacturing
Sale
PR
Finance
HR
IT
Preparation ensure PQI CompletionPreparation ensure PQI CompletionPreparation ensure PQI CompletionPreparation ensure PQI Completion
32
ObjectiveObjective
Logistic1. Crude Receiving
Facility
2. Barge Fleet
3. LP & Simulation
4. NG Supply Contract
5. Fuel Own used Plan
6. Crude Supply Plan
Sale
PR
Finance
HR
IT
Manufacturing
Preparation ensure PQI CompletionPreparation ensure PQI CompletionPreparation ensure PQI CompletionPreparation ensure PQI Completion
• COD - Beginning 4Q,08
• Run up to 100 KBD
• No Event of Defaults
33
ObjectiveObjective
Manufacturing
1. MCRT
2. NG Supply System
3. DCS Upgrading
4. Additional LR Feed
Line
5. Boiler Preparation
6. Tank ReparationSale
PR
Finance
HR
IT
Logistic
Preparation ensure PQI CompletionPreparation ensure PQI CompletionPreparation ensure PQI CompletionPreparation ensure PQI Completion
• COD - Beginning 4Q,08
• Run up to 100 KBD
• No Event of Defaults
34
ObjectiveObjective
Sale
1. PTT/Supply Sale/Export
2. Retail Sale
3. Industrial Sale
4. Depot Facility
PR
Finance
HR
IT
Manufacturing
Logistic
Preparation ensure PQI CompletionPreparation ensure PQI CompletionPreparation ensure PQI CompletionPreparation ensure PQI Completion
• COD - Beginning 4Q,08
• Run up to 100 KBD
• No Event of Defaults
35
ObjectiveObjective
IT
1. IT System Implementation:
Oil Record, L/P, Simulation
2. Lab Information System
3. Management Information
Sale
PR
Finance
HR
Manufacturing
Logistic
Preparation ensure PQI CompletionPreparation ensure PQI CompletionPreparation ensure PQI CompletionPreparation ensure PQI Completion
• COD - Beginning 4Q,08
• Run up to 100 KBD
• No Event of Defaults
36
ObjectiveObjective
PR 1. Road Show /
External PR
2. Internal PR
Sale
Finance
HR
IT
Manufacturing
Logistic
Preparation ensure PQI CompletionPreparation ensure PQI CompletionPreparation ensure PQI CompletionPreparation ensure PQI Completion
• COD - Beginning 4Q,08
• Run up to 100 KBD
• No Event of Defaults
37
ObjectiveObjective
Sale
PR
Finance
HR
IT
1. Recruitment
2. Training
3. Office Expansion
4. Individual KPI
Manufacturing
Logistic
Preparation ensure PQI CompletionPreparation ensure PQI CompletionPreparation ensure PQI CompletionPreparation ensure PQI Completion
• COD - Beginning 4Q,08
• Run up to 100 KBD
• No Event of Defaults
38
ObjectiveObjective
Finance
1. Working Capital Preparation
2. Loan Management
3. Contingency Reserve
Sale
PRHR
IT
Manufacturing
Logistic
Preparation ensure PQI CompletionPreparation ensure PQI CompletionPreparation ensure PQI CompletionPreparation ensure PQI Completion
• COD - Beginning 4Q,08
• Run up to 100 KBD
• No Event of Defaults
Other ProjectsOther ProjectsOther ProjectsOther Projects
40
Cogeneration Power Plant Cogeneration Power Plant Cogeneration Power Plant Cogeneration Power Plant
Stability of Electricity�s Plant System is increased
Increase efficiency of public utility system using energy
Save money of building reserve boiler about 2.1 M$
Expense decreasing from producing and buying electricity and stream
Saving from using Natural Gas instead of Fuel Oil
BenefitBenefit
� Since PQI Project will has done, electricity and
steam demand will be increased.
15.7
12.1
3.6
76
Change
+
29.1
20.9
8.2
13.4
8.8
4.6
Electricity Demand (MW)
By ourselves
Buy from Metropolitan
Electricity Authority
15680
Steam Demand (Ton/Hour)
By ourselves
After PQI
Project will
has done
CurrentDemand @ Crude Run 100
KBD
about 1,000 square metersSpace
December 2008COD
90 tons per hourSteam Capacity
After 25 years then transfer ownership to BCPOperate Period
Vary to CPI and GPI,CPI = Consumer Price IndexGPI = Gas Price Index
Steam Price
MEA minusElectricity Price
19.7 MWElectricity Capacity
HOA SummaryHOA Summary
41
Business DevelopmentBusiness DevelopmentBusiness DevelopmentBusiness Development
►Bio Diesel Plant at Bang-Pa-In capacity 300,000 Liters per day
►Using Natural Gas instead of Fuel oil
►Euro 4 Standard
►Service Station Rebranding & Expansion