RAS-LANUF+Feasibility+Proposal[1]

WINFIELD RESOURCES LIMITED

RAS LANUF REFINERY(EPCM)

FEASIBILITY PROPOSAL

Certain statements herein may constitute “forward looking” statements that involve known and unknown risks, uncertainties and other factors that

may cause our actual results to be materially different from any future results expressed or implied by such forward looking statements. These

statements relate to future events and reflect the expectations of management regarding business prospects and opportunities. Such forward

looking statements reflect current beliefs of management or of the third parties to which they are attributed and are based on information currently

available to us. In some cases, the statements use such words as “may”, “will”, “intend”, “should”, “expect”, “believe”, “plan”, “anticipate”,

“estimate”, “predict”, “potential”, “continue” or the negative of these terms or other similar terminology. These statements reflect current

expectations regarding future events and speak only as of the date hereof, or in the case of third party statements as of the date on which they

were made. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future results, and will

not necessarily be accurate indications of whether or not such results will be achieved, and there can be no assurance that actual results will be

consistent with these forward looking statements.


CONTENTS

EXECUTIVE SUMMARY.................................................................................................................................... 01

Vision....................................................................................................................................................................... 01..

BUSINESS PLANNING...................................................................................................................................... 07..

Phase.I.–.Opportunity.Evaluation........................................................................................................................ 07..

OPERATIONAL PLAN....................................................................................................................................... 08..

Benefits.of.Technical.and.Project.Management.Team........................................................................................ 08..

PROJECT EXECUTION..................................................................................................................................... 09..

Detailed.Design.Package.Phase.II......................................................................................................................... 09.

Engineering,.Procurement.And.Construction.Phase.III.................................................................................... 09.

PROJECT MANAGEMENT............................................................................................................................... 10

PROFESSIONAL PERSONNEL....................................................................................................................... 15

FINANCIAL ANALYSIS..................................................................................................................................... 16.

FINANCIAL REPORT......................................................................................................................................... 17..

Refinery.Economics................................................................................................................................. 17.

PROJECT FINANCE........................................................................................................................................... 18.

SUBCONTRATOR................................................................................................................................................ 19.

OPERATOR........................................................................................................................................................... 20.

SkILLS ASSESSMENT / TRAINING / LIBYAN INTEGRATION........................................................... 23.

HEALTH AND SAFETY..................................................................................................................................... 24.

PROJECT OVERSIGHT..................................................................................................................................... 25.

REFINERY OPTIMIZATION ............................................................................................................................ 28

TECHNICAL CONFIGURATION..................................................................................................................... 31.. .


EXECUTIVE SUMMARY

Winfield.Resources.Limited.wishes.to.engineer,.procure,.construct.and.manage.a.new.300,000.barrel.per.day.oil.refinery.to.be.located.near.Ras.Lanuf,.in.the.Great.Libyan.Jamahiriya.

Winfield Resources Limited Vision

Winfield.Resources.Limited.has.a.clear.understanding.of.clean.fuels.issues..Libyan.products.intended.for.external.markets.will.have.to.meet.the.specifications.of.those.markets..This.requires.processing.configurations.that.don’t.presently.exist.in.Libya.

The.Winfield.approach.to.work.related.to.these.facilities.is.one.of.best.practices..

While.a.generic.approach.can.be.applied.to.the.design.and.construction.phases,.each.facility.will.have.unique.constraints,.requirements.and.circumstances.that.impact.what.results.in.an.optimized.facility..

In.order.to.obtain.the.most.favorably.efficient.and.economical.design.or.construction,.all.pertinent.parameters.must.be.identified..Our.generic.approach.is.to.identify.the.needs.and.requirements.to.create.the.best.possible.facility.for.the.investment..


1

FIGURE 1: REFINERY PROPOSAL ESTIMATEFIGURE 3: REFINERY PROPOSAL ESTIMATE

Based on an 300,000 BOPD case on a site unseen and ‘best guess’ analysis of a re�nery. WINFIELD contemplates and estimates as follows :

This estimate is scaled from a curve quality estimate. The scaling is linear, designed to produce bottom -line “estimate” of $7.5 billion USD. The quality of the curve -quality base estimate is + / - 30 - 50 %

PROCESS BATTERY LIMITS COST

OFFSITES AND UTILITIES COST

CO-GENERATION FACILITIES COST

DESALINATION FACILITIES COST

OTHERS & CONTINGENCIES

GRAND TOTAL

3,165,000,000

2,592,000,000

382,000,000

90,000,000

1,116,000,000

7,345,000,000

COST BREAKDOWN - 300,000 BOPD CASE (mid 2010 forecast), USD


2

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42

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FIGURE 2:

IMPLEMENTATION STRATEGY

Owner's Project Management

Total Project elapse time: 42 months


3

FIGURE 3: REFINERY ECONOMICS FIGURE 4: REFINERY ECONOMICS

This is based on 333 days of operation per year.

FEEDSTOCKS TPA BOPD USD/bbl USD/Day USD/bbl USD/Day

PROPOSED 300KBOPD / 13.360 MTPA REFINERY CAPITAL COST = 7.5 BILLION USD

CASE BRENT @ 60 USD/BBL CASE BRENT @ 70 USD/BBL

ES SIDER

SARIR

AMNA

MTBE

NATURAL GAS

NETBACK COST

PRODUCTS

LPG

ULS GASOLINE

SR NAPHTHA

RAFFINATE

BENZENE

PARA-XYLENE

KEROSENE/JET

ULS DIESEL

LS FUEL OIL

SULPHUR

GREEN COKE*

LPG for H2 unit

Re�nery FUEL GAS

LOSSES

NETBACK REVENUE

GROSS HYDROCARBON MARGIN

OPERATING COST

CASH MARGIN

8,775,000

4,387,500

4,425,000

83,628

104,457

17,775,585

1,565,050

2,566,764

659,369

213,955

717,258

2,467,668

1,885,632

10,242,624

524,853

2,994

0

0

0

0

20,603,628

2,828,043

903,564

1,924,479

58.5

58.5

59.0

70.4

308

540

555

510

510

864

1013

560

560

318

30

0

0

0

0

9.4

3.0

6.4

10,275,000

5,137,500

5,175,000

100,063

127,180

20,814,742

1,811,400

3,075,492

769,264

249,614

850,084

2,381,664

2,171,844

11,779,018

637,085

2,994

0

0

0

0

24,062,515

3,247,772

903,564

2,344,209

68.5

68.5

69.0

84.2

375

625

665

595

595

1024

1224

645

644

386

30

0

0

0

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10.8

3.0

7.8

300,000

150,000

150,000

1,188

-

33,142

40,398

11,616

4,000

5,933

17,410

26,472

136,945

11,162

6,679,264

3,332,881

3,339,632

48,432

112,936

528,879

1,588,010

408,391

287,472

277,562

873,526

1,121,278

6,090,703

549,610

33,229

534,585

283,747

856,343

79,714

Note; * Green Coke is consumed internally by cogeneration unit – indicated here only for information purposes

In each case, the cash margin must pay all taxes, amortize the investment and generate pro�t.

Class C estimate (+/- 30%) except for Capital investment (-40/+50%) and price forecast (no estimation accuracy given)

Cost Cost Cost Cost

USD/t USD/Day USD/t USD/Day Price Revenue Price Revenue

USD/bbl USD/day USD/dayUSD/bbl

USD/t USD/t


FIGURE 4: REFINERY PROPOSAL ESTIMATE

FIGURE 5: REFINERY FEASIBILITY REPORT

PROCESS BATTERY LIMITS COST Million TPA BBL/DAY COSTS Million USD

PROPOSED 300KBOPD / 13,360 MTPA REFINERYCAPITAL COST BREAKDOWN

Crude Distillation Unit

Vacuum Distillation Unit

LPG Gas Plant

Delayed Coker

Hydrocracker

GO HDS

Kerosene HDS/Merox

Naphtha HDT & Splitter

CCR Reforming

Isomerisation

Sulphur Removal

Hydrogen Production Unit

Tail Gas Treatment

Amine Regeneration

Sour Water Strippers

DC LPG Sweetening

Aromatics Complex

CCR Reforming

Extractive Distillation

B-T Fractionation

Xylenes Columns

p-Xylene Puri�cation

Xylenes Isomerisation

Toluene Transalkylation

TOTAL PROCESS UNITS

UTILITIES including COGENERATION and DESALINATION

STORAGE TANKS & MOVEMENTS

OFF-SITES & FACILITIES

BUILDINGS & INFRASTRUCTURES

OIL TERMINAL

OTHERS & CONTINGENCIES

GRAND TOTAL

13.360

6.560

0.210

2.620

4.010

4.370

0.820

3.190

0.840

0.430

0.023

300,000

135,300

7,100

50,000

86,100

99,900

19,600

84,500

21,400

12,100

349.9

173.3

39.0

256.5

677.8

132.2

23.5

142.8

175.9

47.5

35.8

127.0

Included

Included

Included

Included

314.8

36.4

35.5

122.2

213.8

129.5

131.9

3,165

729

612

918

554

250

1,116

7,345


5

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6

BUSINESS PLANNING

The.business.approach.to.be.taken.by.Winfield.Resources.Limited.is.as.follows:

Phase I – Opportunity Evaluation

. 1.. .Energy.audit.-.Determine.the.most.economic.energy.loads.by.establishing.the.basis.of.operation,.benchmarking,.identifying.options,.developing.conceptual.projects,.preparing.process.packages,.preparing.screening.packages.and.developing.the.base.case.project.slate.

. 2.. Feasibility.Evaluation

. 3.. Preliminary.simulation.

. 4.. Feasibility.study.(Class.“C”,.-/+30%),.including.Capital.Cost.Estimate.(-40/+50%)

. 5.. Review.and.Assessment.of.Base.Case

. 6.. Schedule.and.DBM.for.Phase.II.is.prepared.

. 7.. Commercial.and.Financial.Closing

Any.commercial.negotiations.leading.to.the.preparation.and.execution.of.all.commercial.agreements,.including,..as.appropriate,.financing.packages.

Winfield.Resources.Limited.has.access.to.technologies;.and.knowledge.of.the.market.and.its.requirements...These.markets.being.low.sulfur.gasoline,.benzene.and.aromatics.limits.in.gasoline,.and.ultra-low.sulfur.diesel..

We.pride.ourself.in.bringing.a.value.added.approach.to.design,.wherein.the.enhanced.net.cash.flow.is.an.integral.

part.of.our.design,.engineering.activities.


7

OPERATIONAL PLAN

To.engineer,.procure,.construct.and.manage.a.new.300,000.-.barrel.per.day.oil.refinery.there.are.a.number.of.front.end.planning.activities.associated.with.preparing.to.undertake.the.Ras.Lanuf.Refinery.Project.

. 1.. Identify.and.obtain.all.necessary.regulatory.approvals.

. 2... Site.Survey.and.development.evaluation.

. 3... Site.preparation.

. 4... Evaluation.and.selection.of.appropriate.licensor.for.the.Ras.Lanuf.Refinery.

. 5... Determine,.evaluate.and.secure.all.funding.sources.

. 6... .Develop.lists.of.potential.contractors.for.the.construction.of.the.various.component.portions.or.modules.comprising.the.Ras.Lanuf.Refinery..In.turn,.determine.which.of.these.contractors.will.receive.requests.to.submit.bids.for.such.component.portions.or.modules..For.bidding.and.personnel.staffing.purposes,.

Benefits of Winfield Resources Limited technical and Project Management Team:

. 1.. .The.team.will.act.as.plant.operators.to.ensure.the.desired.production.rates.and.product.quality.meets.all.market.requirements.until.the.plant.costs.are.paid.out.in.full.within.the.targeted.time.frame.or.early.if.possible.

. 2.. .The.team.will.implement.the.most.recent.design.and.safety.practices.that.meet.any.potential..financier.requirements.

. 3.. .The.team.will.train.client.operations.personnel.for.safe.and.efficient.operation.of.plant.and.plan..safe.transition.for.hand.over.according.to.client.and.investor.requirements.

. 4.. .The.team.will.provide.on.going.consulting.services.for.the.life.for.the.plant..All.facilities/plant.design.and.safety.requirements.will.meet.all.local.and.international.codes.and.standards.


8

PROJECT EXECUTION

Detailed Design Package Phase II

. 1.. Develop.basic.engineering.design.package

. 2.. HAZOP.and.Value.Improvement.reviews

. 3.. EPC.schedule.and.Project.Execution.Plan

. 4.. Home.office.Engineering.estimate,.cash.flow.analysis

. 5.. List.of.permits.and.approvals

. 6.. Detailed.scope.of.work

. 7.. Revise.capital.cost.estimate.(Class.“A”,.±10%)

Engineering, Procurement and Construction Phase III Engineering:

Engineering

Preparation.of.all.drawings.and.specifications.required.for.construction,.operating.procedures,.maintenance.manuals,.testing.procedures.and.commissioning.planning,.as.well.as.construction.schedule.

Construction

Construction.design;.work.packaging,.development.of.contract.scope.and.review.of.site.layouts...Construction.Execution;.planning,.cost.control,.site.procurement,.contract.administration,.labour.relations,..safety,.accounting.and.reporting.

Commissioning

Preparation.of.system.scope.packages,.scheduling.mechanical.completion.of.systems,.loop.checking,.testing,.flushing.and.cleaning,.first.fills.of.lubricants,.firing.of.specific.equipment.(i.e..turbines.and.steam.blows.for.a..Co-Generation.plant)..Training,.checkout.and.turnover.of.systems,.start-up.and.checkout.of.equipment.and.services,.coordination.of.vendor.reps,.troubleshooting,.co-ordination/negotiation.of.warranty.work,.transfer.of..as-built.drawings./.vendor.manuals,.and.turnover.to.owner.


9

PROJECT MANAGEMENT

kBC

www.kbcat.com

KBC Approach

Owners’.Project.Management.or.OPM.where.the.Owner.manages.the.project.is.the.preferred.option..This.is.a.continuous.approach.adopted.by.several.of.the.major.oil.and.petrochemical.companies.who.do.the.initial.feasibility.studies.themselves.and.develop.their.own.project.definition.equivalent.to.DFS.and.continue.to.take.responsibility.for.the.project.definition.through.licensor.selection,.detailed.process.design.and.project.planning..The.Oil.Company.Project.Management.team.then.selects.the.EPC.Contractor.and.establishes.a.project.management.protocol.for.quality.assure.and.risk.management.which.involves.working.closely.with.an.EPC.contractor.to.ensure.effective.project.execution..This.gives.the.Owner.the.ability.to.better.manage.project.risk.through.the.exercise.of.significantly.more.control.over.project..Where.these.resources.are.not.available.to.the.project.owner,.there.may.be.a.need.to.involve.an.independent.consultant.with.the.requisite.skills.and.competency.to.accelerate.the.schedule.who.can.be.contracted.to.perform.the.functions.required.

If.a.consulting.company.is.employed.to.perform.this.role.in.the.capacity.of.Owners’.Project.Management.Consultant,.or.OPMC..The.Consultant.makes.this.Option.possible.by.supplying.the.resources.necessary.to.supplement.those.of.the.Owner.to.provide.the.project.management.and.stewardship.oversight.to.achieve.this.competitive.project.execution.advantage.

At.42.months.the.schedule.for.option.is.significantly.shorter.compared.to.the.alternative.ones.(Lump.Sum.Turn.Key.or.Separate.Lump.Sum.Contracts).because.several.of.the.early.activities.can.take.place.in.parallel.as.shown.in.Figure.2.

Introduction to KBC

KBC.is.the.leading.independent.refining.and.petrochemical.consultancy.group,.operating.worldwide,.providing.specialised.services.and.software.designed.to.improve.the.competitive.position.of.our.clients.in.the.hydrocarbon.processing.industry...KBC.has.worked.closely.with.over.300.clients.in.areas.including.yield.and.energy.efficiency.improvement;.loss.control.and.value.recovery;.planning,.economics.and.scheduling;.reliability,.availability.and.maintenance;.risk.analysis;.operations.and.technical.support;.process.design.services.and.human.performance.improvement...KBC’s.client.base.includes.national.oil.companies,.major.multi-national.oil.companies.and.independent.refiners.


10

KBC Capital Investment ExperiencekBC Capital Excellence (CapX) Methodology

KBC’s.simulation.capability.and.refining.expertise.enables.the.generation.of.optimum.capital.solutions.for.new.refinery.projects.of.this.type,.with.high.return.on.capital.employed,.and.minimum.operational.lifecycle.costs..

KBC’s.approach.is.to.study.the.entire.complex.as.a.whole.using.our.unique.combination.of.extensive.refining.expertise.and.world-leading.simulation.tools..This.approach.enables.inter-unit.synergies.and.trade-offs.to.be.evaluated.effectively.and.in.detail.ensuring.the.right.investment.decision.is.made..KBC’s.TotalSite.approach.focuses.on.smart,.low-cost.investments.that.would.enable.project.objectives.to.be.met.while.minimising.capital.investment...This.will.ensure:

•. Only.high-ROCE-yielding.new.plants.are.built

•. The.optimal.technology.solution.for.the.specific.site.is.identified.

•. .The.assets.built.will.incorporate.an.inherent.level.of.reliability,.consistent.with.the.project.business.case.availability.of.the.plant.and.will.be.designed.with.full.consideration.of.maintenance.aspects.(run.length.targets,.on-stream.maintenance.capability.etc.)

•. .The.new.assets.selected.will.focus.on.maximizing.the.total.lifetime.return.on.investment,.by.establishing.the.optimum.trade-off.between.capital.and..operating.costs.from,.for.example,.adopting.a.highly.energy.efficient.design.

•. .The.methodology.employed.would.use.a.fully.functional.and.rigorous.simulation.tool.that.could.subsequently.be.used.to.support.the.site’s.efforts.to.achieve.Operational.Excellence..

KBC Refinery Operation ExperiencekBC Operational Excellence (OpX) Methodology

KBC’s.technical.support.and.consulting.activities.are.based.around.helping.a.client.establish.and.sustain.Operational.Excellence...In.order.to.give.direction.and.structure.to.this.technical.support,.KBC.have.developed.an.Operational.Excellence.(OpX).Model...This.Model.emphasises.the.need.to.build.and.maintain.world.class.manufacturing.standards.that.will.maximise.production.effectiveness.and.profitability.by.achieving.safe,.reliable.and.profitable.production..

The.KBC.OpX.Model.describes.operational.excellence.supported.by.a.continuous.improvement.process.to.deliver.safe,.reliable.and.profitable.production...In.short.the.model.encompasses.the.full.array.of.systems..Processes.and.practices.in.manufacturing.leadership,.management.strategies.and.process.optimisation.to.achieve.and.sustain.Operational.Excellence.(OpX)..


11

Leadership and Management System:.The.Leadership.and.Management.System.focuses.on.identifying.the.factors.that.will.drive.the.changes.in.future.business.strategies.and.then.managing.plant.activities.to.achieve.the.strategic.goals.of.the.plant...This.system.provides.the.basis.for.clearly.defining.the.strategic.direction.of.the.plant.and.developing.an.improvement.strategy.for.realizing.that.direction...Additionally,.this.system.provides.the.framework.for.managing.plant.work.activities.and.improvement.efforts.in.a.manner.that.drives.effectiveness.and.efficiency...

Production Optimization System:.The.Production.Optimization.System.focuses.on.economically.optimizing.the.planned.production.(i.e.,.capacity,.yields,.quality,.and.energy).of.the.plant,.while.ensuring.that.operating.conditions.are.further.optimized.within.the.plant’s.capability...The.purpose.of.this.system.is.to.effectively.plan.the.future.operation.based.on.economic.driving.forces.and.to.further.optimize.the.production.within.the.operating.plan.and.physical.constraints.

Reliability and Maintenance System:.The.Reliability.and.Maintenance.System.is.the.foundation.to.improving.plant.performance.through.enhanced.unit.reliability...Effective.reliability.will.reduce.the.cost.of.operations.and.improve.safety.by.providing.tools.and.methodologies.that.can.be.used.to.understand.and.manage.plant.risk.and.performance.concerns...This.system.is.based.on.a.holistic.reliability.and.maintenance.strategy.that.focuses.on.the.entire.equipment.life.cycle..

Human Performance System:.The.Human.Performance.System.focuses.on.optimizing.the.performance.capabilities.of.the.employees.that.operate.and.support.a.production.plant...This.system.provides.consistent,.comprehensive.mechanisms.(i.e.,.staffing,.training,.performance.management,.and.performance.support.systems).for.ensuring.that.all.employees.possess.the.required.competencies.to.effectively.perform.their.job.functions...

Loss Prevention and Control System:.The.Loss.Prevention.and.Control.System.focuses.on.the.protection.of.personnel,.the.environment,.and.the.plant,.which.underpin.OpX...This.system.provides.direction.for.plant.safety,.health,.and.environmental.stewardship.efforts.

Process Information and Control System:.The.Process.Information.and.Control.System.focuses.on.the.control.and.information.management.systems.associated.with.the.efficient.and.effective.execution.of.production-related.activities...This.system.provides.plant.personnel.with.the.tools,.information,.and.procedures.needed.to.control.and.optimize.plant.operations.

Continuous Improvement Process: The.Continuous.Improvement.Process.focuses.on.providing.mechanisms.for.identifying.and.evaluating.opportunities.to.develop.and.implement.performance.improvement.solutions...Recognizing.that.OpX.is.continually.evolving,.this.holistic.approach.ensures.that.the.plant.constantly.advances.in.terms.of.safety,.reliability,.and.profitability...


12

KBC’s.client.support.activities.and.consulting.will.always.take.into.account.our.client’s.unique.environment.(business,.cultural,.location.etc.)..Combining.this,.with.knowledge.gained.from.KBC’s.experience.from.working.for.many.companies.and.on.many.sites.which.is.reflected.in.the.OpX.model,.KBC.will.ensure.that.they.develop.a.tailored.solution.and.product.for.their.client.that.meets.best.their.requirements..

All.of.KBC.services.are.targeted.at.helping.our.clients.maintain.and.improve.their.competitive.advantage.and.the.return.on.capital.employed..KBC.also.ensure.that.benefits.are.sustainable.by.transferring.knowledge.and.best.practices.to.our.client’s.organisations.

KBC.will.conduct.a.Phase.1.OpX.assessment.study.of.the.JVCO.assets.to.evaluate.current.plant.work.processes,.practices,.technologies.and.recommended.areas.for.efficiency.and.productivity.improvements.covering.the.six.systems.of.the.KBC.OpX.model...In.this.phase.of.the.program.KBC.will.identify.gaps.as.compared.to.industry.best.practices.and.provide.a.strategy.for.improving.efficiency.and.effectiveness.of.the.JVCO.facilities.

The.assessment.will.generate.practical.implementable.recommendations.to.achieve.increased.safety,.reliability.and.profitability.for.the.site.through.optimisation.of.plant.work.processes.and.improved.operating.and.maintenance.practices.and.skill.levels.

Recommendations.will.include:

•. Identification.of.work.processes.that.can.be.restructured.or.streamlined.to.improve.proficiency

•. .Identification.of.areas.that.can.be.improved.by.the.introduction.of.industry.best.practices.or.via.the.use.of.proven.new.technologies

•. Identification.of.mechanisms.for.improving.organisational.alignment

An.important.aspect.of.the.breadth.of.the.proposed.study.is.KBC’s.recognition.that.the.efficacy.of.study.and.follow-up.initiatives.depends.on.the.following.characteristics:

•. Consistency.with.ongoing.initiatives,.management.practices,.local.constraints

•. .Be.prioritised.to.maximise.return.on.investment.(focus.will.be.on.strategic.development.while.taking.advantage.of.quick.wins.that.are.supportive.of.long.term.improvement)..

•. Prioritised.for.logical.and.practical.development

•. Manageable.change.at.an.achievable.pace

Through.this.approach.KBC.will.develop.recommendations.for.maximum.value.and.practical.implementation..


13

FIGURE 6: PROJECT HIERARCHY

SPONSOR

HEALTH & SAFETY OFFSITE TRAINING

WINFIELD RESOURCES MANAGEMENT TEAM

Michael Foley

CRUDE OIL FEED PRE-TREATMENT FRACTIONATION

PROJECT MANAGER

MECHANICAL ELECTRICAL PROCESS COMPUTER/COMMUNICATIONS

COST / SCHEDULING CIVIL STRUCTURAL INSTRUMENT / CONTROLS SPARE PARTS COORDINATOR

PROCUREMENT INSPECTION DOCUMENT CONTROL QA / QC

OFFSITES & UTILITIES (STEAM/POWER)

PROJECT MANAGER

STORAGE, LOADING & MOORING

PROJECT MANAGER

INSTRUMENTATION & CONTROLS

(PLANT AUTOMATION) PROJECT MANAGER

PROJECT MANAGEMENTKBC

PROJECT EXECUTION / SUPPORT TEAM *

WINFIELD ENGINEERINGMANAGEMENT TEAM

David McClement, P.ENG

NATIONAL AUTHORITY


14

PROFESSIONAL PERSONNEL

Winfield.Resources.Limited.has.assembled.a.world.class.team.of.engineers,.project.managers,.technicians,.support.staff.and.other.personnel.who.bring.valuable.and.unique.insight.and.design.knowledge.to.any.given.petrochemical.project.in.the.fields.of.chemical.engineering.and.heat.transfer..

The.team.is.considered.as.“Best.In.Class”.that.can.be.offered.by.any.EPCM.company..With.extensive.experience.in.the.design,.procurement.and.construction.of.Refineries,.LNG.facilities,.Co-Generation.facilities.and.various.associated.components.

The.team.will.develop.a.technical.design.that.reflects.market.demands.of.products.generated.in.concert.with.the.fastest.pay-down.of.investment.to.enable.the.client.to.assume.full.ownership.of.the.plant.by.saving.build.time.(via.improved.management.and.construction.strategies).and.improving.returns.on.produced.products.

Winfield.Resources.Limited.is.confident.that.it.can.successfully.manage,.oversee.and.perform.all.engineering,.design.and.construction.management.functions.to.ensure.that.any.petrochemical.plant.or.facility.is.built.on.time.and.at.or.below.budgeted.cost,.bearing.in.mind.the.following.in.relation.to.key.WINFIELD.personnel:

. •. They.are.familiar.with.international.codes.and.standards.(i.e..ASME,.BS,.DIN,.etc.).

. •. .Each.member.has.worked.as.a.part.of.a.large.task.force,.and.some.have.led.project.task.forces..of.250.or.more.personnel.

. •. .They.have.worked.together.on.many.large-scale.petrochemical.projects.throughout.the.world,.including.North.America,.Europe,.the.Far.East.and.the.Middle.East.

. •. They.have.executed.numerous.projects.where.values.have.exceeded.USD$1.billion.

. •. .They.have.established.contacts.and.are.knowledgeable.as.to.strategically.accessing.and.utilizing.key.suppliers.of.equipment.and.materials.from.around.the.world..


15

FINANCIAL ANALYSIS

Project.investment.is.split.over.4.years.period,.with.the.following.ratio:.0.25./.0.40./.0.25./.0.10

Assuming.a.Weighted.Average.Cost.of.Capital.(WACC).of.11.2%,.the.project.Net.Present.Value.(NPV),.Internal.Rate.of.Return.(IRR).and.Pay.Out.Time.(POT).are.presented.in.the.following.table.for.3.different.price.scenarii.

Conservative.price.scenario.developped.by.KBC.assumes.a.Brent.benchmark.crude.oil.price.drop.until.years..2009-2010.when.it.reaches.the.bottom.value.of.USD.60.per.barrel.before.increasing.again.

Project schedule and capital cost breakdown

We.have.planned.a.42.month.construction.period.starting.with.being.successful.in.financing.and.the.award.of..the.new.300,000.barrel.per.day.oil.refinery..

Figure.2.demonstrates.this.timeline.based.on.major.activities.of.planning.and.construction..Within.the.first.three.months.many.major.project.decisions.will.be.made.allowing.the.construction.to.follow..

NPV (USD)

IRR (%)

POT (years)

NPV / Invest. ratio

4,350,000,000

17.59%

7.62

0.44

Brent at 60 USD/bbl + linear 3% inflation

Brent at 70 USD/bbl + linear 3% inflation

Conservative Price Scenario (non linear)

6,470,000,000

20.16%

6.17

0.65

2,870,000,000

15.63%

9.47

0.29


16

FINANCIAL REPORT

Refinery Economics

The.overall.economics.or.viability.of.a.refinery.depends.on.the.interaction.of.three.key.elements:.

The.choice.of.crude.oil.used.(crude.slates).the.complexity.of.the.refining.equipment.(refinery.configuration)..and.the.desired.type.and.quality.of.products.produced.(product.slate)..

Refinery.utilization.rates.and.environmental.considerations.also.influence.refinery.economics.

Using.more.expensive.crude.oil.(lighter,.sweeter).requires.less.refinery.upgrading.but.supplies.of.light,..sweet.crude.oil.are.decreasing.and.the.differential.between.heavier.and.more.sour.crudes.is.increasing..

Using.cheaper.heavier.crude.oil.means.more.investment.in.upgrading.processes.

Payback.periods.for.refinery.processing.units.must.be.weighed.against.anticipated.crude.oil.costs.and.the..projected.differential.between.light.and.heavy.crude.oil.prices.

Crude.slates.and.refinery.configurations.must.take.into.account.the.type.of.products.that.will.ultimately.be..needed.in.the.marketplace..

The.quality.specifications.of.the.final.products.are.also.increasingly.important.as.environmental.requirements.become.more.stringent.


17

PROJECT FINANCE

DEVEREUX PROJECT FINANCE

www.dpf.biz

Devereux.Project.Finance.is.a.private.equity.finance.consultancy.who.are.located.in.London.and.Buckinghamshire.

Our.partners.have.been.in.structured.finance.since.1987

Our.core.competence.lies.in.identifying.the.real.needs.of.our.clients,.arranging.project.senior.debt.and.equity.finance;.assisting.with.initial.project.administration.whilst.delivering.overall.client.satisfaction.by.executing.our.best-in-class.services

We.offer.various.consultancy.services.to.assist.our.clients.with.the.success.of.their.projects.such.as.planning.consultants;.full.project.or.interim.management.and.risk.analysis.which.is.a.process.that.brings.together.the.consequences.and.frequency.of.adverse.scenarios.to.estimate.the.level.of.risk.

Our.company.represents.a.wide.range.of.clients.as.in:.developers,.project.owners,.sponsors,.contractors,.project.investors.and.operators.

Our.company.will.provide.assistance.in.several.ways.according.to.the.needs.of.the.client..We.will.assist.clients.with.preparation.of.information.of.memorandum;.structuring.the.project;.advising.on.joint.ventures;.and.arranging.the.necessary.finance.to.complete.the.project.and.its.objectives.

Our.funds.are.sourced.globally.which.includes.or.equity.participators.

In.addition.we.have.forged.alliances.with.various.professional.firms.globally.through.whom.we.celebrate..shared.successes.

We.offer.a.wide.range.of.advisory.services.for.projects.including.financial.modelling..We.provide.optimal.financing.structures.incorporating.credit.and.asset.support,.interim.and.permanent.capital,.and.deliver.broad.investor.support.for.successful.financings..Our.experience.gives.us.the.ability.to.develop,.analyse.and.negotiate.optimal.financing.and.project.support.structures.

Our.skilful.resource,.extensive.financing.experience.and.organizational.culture.place.us.in.a.unique.position.to.assist.our.clients..We.are.found.to.be.approachable,.flexible,.responsive.and.innovative.whilst.extremely.professional.


18

SUBCONTRATOR

Sk ENGINEERING & CONSTRUCTION

www.skec.co.kr

SKEC.has.applied.its.E&C.System.since.1983,.when.it.started.work.on.the.Crude.Distillation.Unit.at.the.SK.Complex.in.Ulsan,.Korea..This.facility.was.enlarged.to.an.annual.production.capacity.of.810,000.BPSD.in.1996,.SKEC.successfully.completed.a.Heavy.Oil.Upgrading(HOU).Plant.with.an.annual.capacity.of.63000.BPSD,.a.Lube.Base.Oil.project.and.the.No.1,.2.and.3.Reformer.projects.along.with.a.45,000.BPSD.RFCC.project..With.these.large.scale.projects,.SKEC.has.gained.a.reputation.for.its.application.of.high.technology..Throughout.its.accumulated.technology.and.experience.in.the.domestic.market,.SKEC.has.been.venturing.overseas.and.is.currently.working.on.a.number.of.international.oil.and.gas.projects.worldwide.

SKEC’s.services.extend.from.project.feasibility.studies,.front-end.engineering.package.development,.detailed.engineering,.procurement.and.construction,.to.final.commissioning,.start-up,.and.operations.and.maintenance.services,.for.grassroots,.expansion.and.revamp.projects.

SKEC.has.executed.a.wide.range.of.design.and.construction.projects.for.the.petroleum.refining.industry,.from.single.unit.revamps.to.grassroots.complexes.worldwide..SKEC’s.experiences.in.refining.include.Crude.distillation.unit,.Vacuum.distillation.unit,.Heavy.oil.upgrading,.Hydrotreating.plant,.Gas.concentration,.Naphtha.reforming,.Coking,.Isomerization.Plant,.and.so.on.

SKEC.recently.has.completed.the.Cadereyta.oil.refinery.project.in.Mexico,.which.has.been.historically.the..largest.scale.project.in.refining.businesses.in.the.world,.and.been.executed.successfully.another.big.project.in.Madero,.Mexico..


19

OPERATOR

PETROLEUM INDIA INTERNATIONAL

WITh KBC / SK MANAgEMENT SECONDMENT AT KEY POSITIONS

Petroleum.India.International.("PII").is.a.consortium.of.eight.India’s.top.ranking.public.and.private.sector.petroleum./.petrochemicals.industries.working.with.a.successfully.implemented.motto.of."Expertise.through.Experience"..After.offering.and.helping.hand.to.our.various.clients..Now.we.are.ready.to.untie.the.knots.of.numerous.challenging.problems.arising.related.to.petroleum/petrochemical/refineries.for.you..

PII.has.a.team.of.well.experienced.persons.from.HPCL,.Bharat.Petroleum,.IPCL.and.several.other.companies..The.consultancy.is.well.equipped.with.excellent.infrastructure.in.upstream,.downstream.&.IT.services..Company’s.turnover.touches.somewhere.around.US.$.30.billions.

Deputation of Experts / Technical Back-up Services

Deputation.of.qualified/experienced.personnel.drawn.from.India's.onshore/offshore.oil/.gas.fields,.production.installations,.offshore.platforms,.reservoir.engineering.and.all.other.departments.of.E&P.company.like.BPCL,.from.refineries,.petrochemicals.units,.pipelines.and.network.of.petroleum.marketing.facilities.for.operations.and.maintenance.technical.back-up.services..(On.long.&.Short.Term.Basis.and.with.minimum.mobilization.period.)

The advantages of PII experts:

. •.. .High.quality.of.experts.with.very.exhaustive.hands.on.experience..These.personnel.have.been.trained.extensively.in.India.and.abroad.

. •.. .High.commitment.and.motivation.of.experts.sent.on.deputation.

. •.. .This.is.a.unique.concept.since.these.deputed.personnel.continue.to.be.employees.of.the.parent.company.at.India.and.draw.their.salaries.and.perk.during.their.deputation.

. •.. .Online.database.of.thousands.of.experts.working.in.our.member.companies.is.available.with.PII.

. •.. .Availability.for.Short.&.Long-term.(even.experts.can.be.deputed.by.us.for.as.less.as.15.days.to.any.length.of.period.

. •.. .No.terminal.benefits.are.payable.by.client.after.completion.of.deputation..As.on.completion.of.deputation.these.experts.come.back.and.take.over.their.jobs.in.parent.companies.


20

Expertise in Downstream

PII.member.companies.operate.seven.refineries.in.India..All.the.seven.refineries.are.operating.at.a.capacity.utilization.of.over.100.%..The.maintenance.cost.of.the.refineries.by.PII.member.is.one.of.the.lowest.in.the.world..Six.of.the.seven.refineries.have.been.awarded.the.coveted.ISO.9002.certification,.thus.their.quality.systems.are.at.par.with.the.world.standards.

. •.. .Design./.Detailed.Engineering,.Construction.&.Commissioning

. •.. .Commissioning./.Startup.&.Operation.services.for.refinery.petrochemical.Plants.&.Pipeline

. •.. .Utilities.&.Services.

. •.. .Maintenance.and.Inspection

. •.. .Environmental.Engineering.

. •.. .Energy.Conservation.

. •.. .Risk.Analysis./.Safety.Audits

. •.. .Marketing.&.Distribution.Services

. •.. .Training.of.Manpower

. •.. .Other.downstream.activities


21

Competitive Advantage of TAM

PII.refineries.have.vast.and.rich.experience.in.handling.Turn.Around.Maintenance.

Main.strength.of.Turn.Around.Execution.is.highly.skilled,.knowledgeable,.experienced.and.capable.engineers.&.technician..

The.present.strength.of.engineers.&.technician.have.experience.of.handling.various.turn.arounds.of.crackers,.distillation.&.other.units..

High.degree.of.expertise.gained.over.last.40.years.of.maintaining.various.refineries..

Adoption.of.latest.maintenance.tools.&.techniques.for.preventive,.predictive.proactive.and.turn..around.maintenance..

Dedicated.team.of.engineers.and.technicians..

PII.has.deputed.maintenance.experts.to.refineries.of.various.Middle.East.and.Far.East.countries.such.as.Nigeria,.Kuwait,.Malaysia.&.UAE..

The.performance.on.all.these.assignments.was.excellent.and.left.a.mark.of.their.skill.and.dedication..

Detailed.data.bank.on.rotary.equipment..

Analysis.of.various.failures..

Modifications.to.suit.process.conditions..

Expertise.in.welding.exotic.material.-.Successfully.developing.welding.procedures..

Capabilities.of.fabrication.on.intricate.spares.&.exchangers.tube.bundles..

Mastery.of.machining.components.to.high.degree.of.accuracy..

Expert.knowledge.on.overhauling.to.high.degree.of.accuracy..

Specialised.techniques.in.repairs.to.internal.cyclones..

Top.class.knowledge.on.maintaining.various.electrical.equipment.and.instrument..

Capability.of.providing.and.repairing.any.refractory.&.civil.facilities..

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.


22

SkILLS ASSESSMENT / TRAINING / LIBYAN INTEGRATION

Winfield.Resources.Limited.recognizes.the.importance.of.assimilating.local.Libyan.personnel.into.the.ongoing.operations.of.the.Ras.Lanuf.Refinery.following.start.up..

To.this.end,.Winfield.Resources.Limited.is.committed.to.ensuring.ongoing.skills.assessments.are.undertaken,.and.training.programs.provided,.during.the.execution.Phase.of.the.Ras.Lanuf.Refinery.Construction.to.ensure.a.smooth.and.orderly.Integration.and.transition.of.local.Libyan.personnel.into.plant.operations..

Winfield.Resources.Limited.intends.to.hand.over.the.Ras.Lanuf.Refinery.to.fully.trained.and.integrated.Libyan.nationals.as.operating.and.management.personnel.


23

HEALTH AND SAFETY

. •. The.requirements.of.applicable.insurance.companies.will.be.met.or.exceeded

. •. .It.is.contemplated.that.the.Ras.Lanuf.Refinery.will.be.centrally.controlled.via.a.Honeywell..TDC3000.series.distributed.control.system

. •. .The.overall.system.will.include.a.100%.spare.protection.system.by.duplicating.all.critical..control.loops

. •. .All.key.emergency.shut.down.devices.will.be.constantly.and.continually.self.checking.and..monitoring.(i.e..SMART.systems)

. •. .The.plant.design.will.be.such.that,.in.the.event.of.malfunction,.applicable.portions.of.the..Ras.Lanuf.Refinery.facility.will.be.quickly.segregated,.isolated.and.depressurized

. •. .The.plant.design.will.be.based.on.the.latest.safety.standards.applicable.for.a.similar.plant..and.will.meet.all.applicable.national.or.international.codes.and.standards

. •. .HAZOP.(hazards.&.operability).review.will.be.conducted.at.the.10%,.30%.and.60%.completion.stages.or.intervals.during.the.execution.of.the.Ras.Lanuf.Refinery.


24

PROJECT OVERSIGHT

D.M..McClement,.P.Eng.. . . .

EDUCATION

B.Sc..Mechanical.Engineering,..University.of.Saskatchewan.(Canada),.1968

Certificate,.Operations.Research./.Management.Sciences,.University.of.Michigan,.1969

Certificate,.Business.Administration,..University.of.Saskatchewan.(Canada),.1972

Certificate.in.Technical.Writing,..Mount.Royal.College,.2003

ADDITIONAL COURSES AND SEMINARS

Probability.and.Statistics. .Strategic.Planning

Risk.Analysis./.Contingency.Planning. .Decision.Making.(Kepner.-.Tregoe)

Management.by.Objectives. .Linear.Programming.for.Refinery.Optimization

Project.Procurement.Cycle. .UOP.Technical.Conferences

PROFESSIONAL AFFILIATIONS

Association.of.Professional.Engineers,..Geologists.and.Geophysicists.of.Alberta

Association.of.Professional.Engineers.of.Saskatchewan

EMPLOYMENT HISTORY

1984 - Present

President,.Endeco.International.Ltd.

1996 - 2001

President,.NANA/Colt.Engineering.LLC..(a.joint.venture.between.Colt.Engineering..and.the.NANA.Corp.)

1993 - 1994

President,.CoAxia.Inc..(a.joint.venture.between..Colt.Companies.and.Axia.Inc.)

1982 - 1984

Vice-President,.Oil.Sands.Division,..Techman.International.Ltd.

1981 - 1982

Senior.Project.Manager,.Cord.Projects.Ltd.

1980 - 1981

Project.Manager,.Bechtel.Canada.Ltd.

1977 - 1980

Senior.Manager,.Project.Management.and..Project.Services,.Associated.-.Pullman.Kellogg.Ltd.

1976 - 1977

Project.Manager,.Consumers’.Co-Operative..Refineries.Ltd.

1973-1976

Project.Manager,.Associated.Engineering.Services.Ltd..(seconded.to.Bechtel.Inc..in.San.Francisco.and.Edmonton)

1958- 1973

Consumers’.Co-Operative.Refineries.Ltd.

•.Senior.Plant.Engineer,.Regina.Refinery

•..Mechanical.Superintendent./.Interim.Plant.Manager,.Saskatoon.Chemical.Plant

•.Operations.Research.Analyst,.Saskatoon.Home.Office

•.Shift.Operator,.Regina.Refinery


25

REFINERY PROJECT MANAGEMENT EXPERIENCE

Project.Manager.for.Primary.Upgrading.on.a.major.oilsands.project..The.scope.of.work.encompassed.all.of.the.primary.bitumen.processing.units,.excluding.hydrotreating,.and.included.facilities.with.an.estimated.capital.cost.of.$2.2.billion.Canadian.

Manager.of.Projects.and.Project.Services.for.a.major.EPC.company.with.operations.in.Edmonton,.Calgary.and.Toronto..(I.was.responsible.for.project.operations.in.all.three.operating.centers)..

Project.Manager.for.a.major.expansion.at.a.B.C..Oil.Refinery..The.scope.of.work.included.modifications.to.all.refinery.units.including.the.Platformer,.Unifiners,.FCCU,.Crude.Distillation,.and.Plant.Utilities.and.Offsites..Managed.the.process.design.in.the.Licensors’.offices.and.then.provided.detailed.engineering,.procurement.and.direct-hire.construction.services.

Project.Manager.for.a.major.expansion.to.a.Saskatchewan.Oil.refinery..The.scope.of.work.included.new.Atmospheric.and.Vacuum.Distillation.units,.a.Saturate.Gas.Plant.and.modifications.to.all.plant.utility.systems.and.offsite.facilities.

Project.Manager.for.a.project.to.relocate.a.surplus.Naphtha.Hydrotreater.and.Catalytic.Reformer.Units.from.Corpus.Christie,.Texas,.to.Regina..The.units.were.successfully.dismantled,.moved,.re-erected.and.commissioned.under.my.direction.

Project.Manager.responsible.for.co-ordinating.and.monitoring.the.work.of.Canadian.engineering.firms.contracting.to.the.Managing.Contractor.on.a.major.oilsands.project..The.scope.of.work.included.the.Sulfur.and.Amine.Units,.the.Froth.Treatment.Plant,.Waste.Treatment.and.Disposal.Facilities.and.the.Athabasca.River.Bridge.

Project.Engineer.responsible.for.the.design.of.the.principal.conversion.units.for.a.major.oilsands.project..

Project.Director./.Construction.Manager.responsible.for.the.detailed.design,.fabrication.and.field.construction.of.a.project.to.convert.a.surplus.Platformer.to.an.Isomerization.Unit..My.responsibilities.included.co-ordination.the.Licensor’s.Schedule.“A”.package.work,.and.all.EPC.activities.for.the.Isomerization.Unit.and.for.required.changes.to.ancillary.units.–.the.Naphtha.Hydrotreater,.and.offsite.facilities.

Project.Manager.for.the.process.design.phase.of.a.project.to.construct.an.Isomerization.unit.at.an.Alberta.refinery..We.conducted.the.process.selection.studies,.completed.the.process.design.of.the.Naphtha.Hydrotreater.unit.and.co-ordinated.the.Licensor’s.process.design.activities.for.the.Isomerization.unit.

Project.Manager.for.process.selection.studies.for.a.proposed.heavy.oil.upgrading.project.for.a.major.heavy.oil.upgrader..


26

INTERNATIONAL CONSULTING SERVICES

In.connection.with.a.proposed.project.to.relocate.a.surplus.refinery.from.Naples,.Italy.to.Pondicherry,.India,.I.constructed.an.LP.model.of.the.refinery.and.used.the.model.to.evaluate.proposed.operations.on.various.feedstocks..Also,.I.prepared.cost.estimate.for.the.project.and.constructed.an.economic.model.to.examine.the.expected.economics.of.the.project.and.assisted.the.proponents.in.making.submissions.to.Indian.financial.agencies.and.licensing.authorities.

Provided.services.to.a.Canadian.company,.operating.in.Nizhnevartovsk,.Siberia,.in.connection.with.a.proposed.crude.topping.plant..I.characterized.the.crude.oil.feedstock,.simulated.the.topping.operations.and.prepared.a.conceptual.design.and.preliminary.cost.estimate.for.the.facilities.

Assisted.a.large.US-based.client.in.evaluating.a.proposed.investment.in.a.facility.to.manufacture.ammonia.from.a.purge.hydrogen.stream.at.a.location.in.the.Gulf.Coast.

Prepared.a.preliminary.design.and.associated.cost.estimate.and.constructed.an.economic.model.of.a.facility.to.extract.wax.from.vacuum.gas.oil.for.a.refiner.in.Chile.

Provided.consulting.services.to.several.groups.in.their.evaluation.of.plans.to.relocate.a.surplus.Canadian.refinery.to.various.third-world.locations..Sites.included.Vietnam,.India,.Chile.and.China..Clients.were.investors.and.state.oil.companies.

Provided.consulting.services.to.a.major.Canadian.energy.company.considering.an.investment.in.a.proposed.gas.recovery.project.in.the.South.China.Sea.offshore.Vietnam..Our.services.included.cost.estimation,.economic.modeling.and.contract.negotiations.

Provided.consulting.services.to.a.company.considering.an.investment.in.a.lube.oil./.wax.recovery.refinery..in.Vietnam..Our.services.included.the.preparation.of.conceptual.designs,.cost.estimates,.optimization.and.economic.modeling.

Provided.consulting.services.to.the.Government.of.Vietnam.and.to.the.state.oil.company,.PetroVietnam.in..soliciting.and.evaluating.proposals.from.eighteen.major.international.oil.companies.in.connection.with.a..proposed.fuels.refinery.in.Vietnam..


27

REFINERY OPTIMIZATION

Linear Programming

. •. .Almost.all.petroleum.refineries.in.the.world.use.some.form.of.economic.modeling.for.operations.planning.and.project.evaluation.

. •. .Linear.Programming,.a.special.branch.of.mathematical.programming,.is.the.method.adopted.by..most.refiners.

. •. .Linear.Programming.(LP).involves.developing.a.mathematical.model.of.a.particular.refinery.(or.a.proposed.refinery).by.modeling.all.of.the.feedstock.purchases,.processing.operations,.product.treating.and.blending,.and.product.sales.operations.in.a.mathematical.format.

. •. .The.model.evolves.into.a.matrix.format,.wherein.all.of.the.material.balances,.constraints,.specifications.and.requirements.are.represented.by.mathematical.relationships.

. •. .Variable.operating.costs.of.each.“activity”.are.also.included.and.the.model.is.then.optimized.using.a.special.mathematical.algorithm.

. •. .Optimization.therefore.involves.selecting.the.value.for.each.variable.that.results.in.either.the.maximum.profit.or.minimum.cost.for.the.entire.operation..Of.course.the.optimized.model.must.also.comply.with.all.constraints,.specifications.and.other.requirements.and.the.material.balance.must.be.internally.consistent.

. •. .The.art.of.using.LP.lies.in.the.building.of.successful.models.

. •. .To.be.useful.a.model.must.include.all.of.those.activities,.constraints,.specifications,.requirements.and.variable.costs.that.are.necessary.to.completely.describe.the.expected.performance.of.the.entire.refinery..Factors.that.are.extraneous.to.essential.operation.of.the.facilities,.should.be.omitted.from..the.model.

. •. .To.validate.a.model,.we.test.it.using.typical.data.(from.past.operations,.if.possible)..A.valid.model..will.generate.expected.results,.or.at.least.explainable.outcomes.


28

Another.way.to.look.at.LP.modeling.is.that.it.provides.a.method.of.manipulating.large.amounts.of.data...A.typical.oil.refinery.may.have.several.hundred,.or.even.thousands.of.variables,.and.a.similar.number.of.constraints..(Variables.are.the.columns.of.our.matrix,.while.constraints.are.the.rows)..Carefully.constructing.the.model.is.the.first.step.in.achieving.success.in.this.form.of.operational.planning;.computers.can.provide.the.means.to.work.with.the.large.amount.of.data.to.generate.useful.answers.from.the.huge.database.

. .•. Common.applications.for.LP.within.the.refining.industry.include.the.following:

. . –..Operational.planning.and.production.budgeting

. . –..Facilities.and.project.planning.and.evaluation

. . –..Feedstock.evaluation

. . –..Process.selection

. . –..Product.blending

. •. .For.the.proposed.North.African.refineries,.Winfield.Resources.plans.to.use.LP.initially.for.facilities.planning.and.project.evaluation.

. •. .To.do.this,.we.will.start.with.an.assay.of.the.proposed.crude.oil.feedstock(s).to.determine.what.straight-run,.virgin.products.can.be.recovered.in.a.crude.distillation.unit.

. •. .We.will.then.assemble.the.required.product.specifications.for.our.proposed.markets.

. •. .The.third.step.will.require.some.process.design.to.determine.what.additional.processing,.beyond..basic.distillation,.is.required.to.convert.the.straight-run.products.into.finished.products.suitable.for.the.market.

. . .At.this.point,.the.first.comprehensive.LP.can.be.constructed.to.model.the.refinery.(including.feedstock.purchases,.process.operations,.product.blending.and.product.sales)..Optimization.of.this.first.model.will.confirm.whether.we.are.on.the.right.track.or.whether.adjustments.in.the.refinery.configuration.are.required.to.achieve.the.“best”.performance.….where.“best”.means.highest.profit..or.lowest.production.cost.

. •. .Using.the.model,.we.can.test.different.process.configurations.and.evaluate.project.staging.opportunities..A.typical.refinery.development.might.proceed.as.follows:

. . –...Start.with.a.simple.atmospheric.distillation.unit.

. . –...Add.a.catalytic.reformer.to.convert.heavy.naphtha.to.reformate,.a.high.octane.gasoline.blending.component.

. . –...Add.an.isomerization.unit.to.convert.light.straight-run.naphtha.to.isomerate,.another.high.quality.gasoline.blending.component.

. . –...Add.a.cracking.unit,.to.convert.all.of.the.heavy-boiling.fractions.(all.fractions.heavier.than.diesel.fuel).to.lighter-boiler.materials.and.thus.maximize.the.total.recovery.of.liquid.transportation.fuels.from.the.crude.oil.

. •. A.ll.of.the.above.possibilities.and.options.can.be.examined.on.paper,.using.LP,.to.ensure.that.we.develop.the.entire.project.in.an.optimal.way.


29

Personnel.on.Winfield’s.staff.have.provided.refinery.optimization.services.for.refiners.in.many.parts.of.the.world..Two.very.relevant.case.studies.are.1).a.nation-wide.optimization.study.for.CUPET,.the.Cuban.national.oil.company.and.2).another.comprehensive.study.for.the.Government.of.Bolivia.

CUPET.operates.four.refineries.in.Cuba..The.country.produces.some.indigenous.crude.oil,.but.not.enough.for.its.refineries..The.refineries,.even.operating.at.full.capacity,.cannot.supply.all.of.the.country’s.hydrocarbon.energy.needs..Cuba.therefore.imports.both.products.and.crude.oil..Our.mission.was.to.optimize.the.refinery.operations,.along.with.the.crude.oil.and.product.imports,.to.minimize.the.cost.of.supplying.petroleum.products.to.the.entire.country..

To.do.this.we.constructed.a.comprehensive.model.which.included.all.four.refineries,.all.product.and.crude.oil.imports,.transportation.and.marketing.activities..We.then.ran.the.model.to.find.the.“best”.way.to.operate.the.country’s.refineries..In.our.study,.we.discovered.that.the.refineries.were.not.able.to.achieve.a.global.optimum.due..to.a.disconnect.between.the.refineries.and.the.people.responsible.for.purchasing.imported.crude.oil..

The.importers.simply.looked.for.the.cheapest.available.feedstock.….or.for.a.seller.who.would.provide.crude.oil.in.exchange.for.sugar….and.the.refineries’.processing.limitations.were.not.considered..Rectification.of.this.problem.resulted.in.major.cost.improvements.for.CUPET.

Bolivia.has.four.refineries.which.process.Bolivia’s.light.crude.oil.to.produce.products.required.for.the.nation.al.market..Any.product.shortfall.requires.importation.of.products.and,.because.Bolivia.subsidizes.all.petroleum.products.within.the.national.market,.importation.of.products.is.very.expensive.for.the.Government..Our.mission.was.to.optimize.the.refineries.and.the.importation.activities.to.ensure.that.the.Bolivian.national.market.was.being.provided.with.products.at.the.lowest.possible.cost.

Winfield.Resources.Limited.is.commited.to.operating.its.refineries.in.a.way.that.makes.the.operation.economically.viable,.and.meets.the.needs.of.its.market.and.the.objectives.of.the.host.country..Tools.such.as.LP,.will.be.part.of.our.approach.to.ensure.that.these.ends.are.achieved.


30

TECHNICAL CONFIGURATION

FIGURE 7: Local Market Environment

FIGURE 8: EU: Gasoline Specifications

FIGURE 9: EU: Diesel Specifications

LPG

SR NAPHTHA

GASOLINE

KEROSENE

DIESEL

FUEL OIL 1%S

OTHERS

699

1169

-1489

762

87

4284

868

24

32

-38

18

2

87

20

LIBYA 2007NET TRADE BALANCE kbpd ktpa

SARIR

ES SIDER

AMNA

MTBE

HYDROGEN

NATURAL GAS

TOTAL FEEDSTOCKS

438.4

437.5

441.2

575

1078.1

308.0

58.5

58.5

59.0

70.4

6.5 $/MMBTU

59.5

FEEDSTOCKS $/t $/bbl

LPG

NAPHTHA

RAFFINATE

GASOLINE 10ppmS

BENZENE

P-XYLENE

KEROSENE/JET

DIESEL 10ppmS

HEATING OIL 0.1%S

LS FUEL OIL

HS FUEL OIL

GREEN COKE

SULPHUR

REFINERY FUEL GAS

LOSSES

TOTAL PRODUCTS

540

510

510

555

1059

1082

560

560

520

318

281

50

0

0

0

47.2

56.8

53.5

63.5

148.2

151.4

71.2

73.0

69.5

47.0

41.5

7.95

0

0

0

PRODUCTS $/t $/bbl

LPG 252,196 8,660

NAPHTHA 0 0

GASOLINE 10ppmS 2,914,877 76,462

KEROSENE/JET 739,134 17,450

DIESEL 10ppmS 7,901,035 177,649

HEATING OIL 0.1%S 0 0

LS FUEL OIL 0 0

HS FUEL OIL 193,549 3,931

GREEN COKE 625,945 11,822

SULPHUR 5,506 104

REFINERY FUEL GAS 551,767 12,556

LOSSES 95,892 2,182

TOTAL PRODUCTS 13,279,902 310,816

PRODUCTS tpa bpd / MMscfd

SARIR 6,665,763 150,000

MESSLA 6,614,139 150,000

MTBE

HYDROGEN

NATURAL GAS

TOTAL FEEDSTOCKS 13,279,902 300,000

FEEDSTOCKS tpa bpd / MMscfd

AROMATICS, vol% max

OLEFINS, vol% max

BENZENE, vol% max

OXYGEN, wt% max

SULFUR, ppm max

RVP, kPa

LEAD, g/l MAX

-

-

5

-

500

35-100

0.013

42

18

1

2.7

150

60/70

none

35

18

1

2.7

50/10

60/70

none

35

18

1

2.7

10

60/70

none

EN 2281993Euro II

Dir 98/702000Euro III

Dir 98/702005Euro IV

Dir 98/702009Euro V

POLY AROMATICS, vol% max

SULFUR, ppm max

CETANE NUMBER, min

DENSITY @ 15OC, kg/m3

DISTILLATION, T95 OC, max

n/a

2,000

49

820-860

370

11

350

51

845

360

11

50/10

51

845

360

8

10

51

845

360

EN 2281993Euro II



Dir 98/702009Euro V

LPG

SR NAPHTHA

GASOLINE

KEROSENE

DIESEL

FUEL OIL 1%S

OTHERS

699

1169

-1489

762

87

4284

868

24

32

-38

18

2

87

20


SARIR

ES SIDER

AMNA

MTBE

HYDROGEN

NATURAL GAS

TOTAL FEEDSTOCKS

438.4

437.5

441.2

575

1078.1

308.0

58.5

58.5

59.0

70.4

6.5 $/MMBTU

59.5


LPG

NAPHTHA

RAFFINATE

GASOLINE 10ppmS

BENZENE

P-XYLENE

KEROSENE/JET

DIESEL 10ppmS

HEATING OIL 0.1%S

LS FUEL OIL

HS FUEL OIL

GREEN COKE

SULPHUR

REFINERY FUEL GAS

LOSSES

TOTAL PRODUCTS

540

510

510

555

1059

1082

560

560

520

318

281

50

0

0

0

47.2

56.8

53.5

63.5

148.2

151.4

71.2

73.0

69.5

47.0

41.5

7.95

0

0

0

PRODUCTS $/t $/bbl

LPG 252,196 8,660

NAPHTHA 0 0

GASOLINE 10ppmS 2,914,877 76,462


DIESEL 10ppmS 7,901,035 177,649


LS FUEL OIL 0 0

HS FUEL OIL 193,549 3,931

GREEN COKE 625,945 11,822

SULPHUR 5,506 104


LOSSES 95,892 2,182

TOTAL PRODUCTS 13,279,902 310,816


SARIR 6,665,763 150,000

MESSLA 6,614,139 150,000

MTBE

HYDROGEN

NATURAL GAS



AROMATICS, vol% max

OLEFINS, vol% max

BENZENE, vol% max

OXYGEN, wt% max

SULFUR, ppm max

RVP, kPa

LEAD, g/l MAX

-

-

5

-

500

35-100

0.013

42

18

1

2.7

150

60/70

none

35

18

1

2.7

50/10

60/70

none

35

18

1

2.7

10

60/70

none

EN 2281993Euro II



Dir 98/702009Euro V


SULFUR, ppm max

CETANE NUMBER, min



n/a

2,000

49

820-860

370

11

350

51

845

360

11

50/10

51

845

360

8

10

51

845

360

EN 2281993Euro II



Dir 98/702009Euro V

LPG

SR NAPHTHA

GASOLINE

KEROSENE

DIESEL

FUEL OIL 1%S

OTHERS

699

1169

-1489

762

87

4284

868

24

32

-38

18

2

87

20


SARIR

ES SIDER

AMNA

MTBE

HYDROGEN

NATURAL GAS

TOTAL FEEDSTOCKS

438.4

437.5

441.2

575

1078.1

308.0

58.5

58.5

59.0

70.4

6.5 $/MMBTU

59.5


LPG

NAPHTHA

RAFFINATE

GASOLINE 10ppmS

BENZENE

P-XYLENE

KEROSENE/JET

DIESEL 10ppmS

HEATING OIL 0.1%S

LS FUEL OIL

HS FUEL OIL

GREEN COKE

SULPHUR

REFINERY FUEL GAS

LOSSES

TOTAL PRODUCTS

540

510

510

555

1059

1082

560

560

520

318

281

50

0

0

0

47.2

56.8

53.5

63.5

148.2

151.4

71.2

73.0

69.5

47.0

41.5

7.95

0

0

0

PRODUCTS $/t $/bbl

LPG 252,196 8,660

NAPHTHA 0 0

GASOLINE 10ppmS 2,914,877 76,462


DIESEL 10ppmS 7,901,035 177,649


LS FUEL OIL 0 0

HS FUEL OIL 193,549 3,931

GREEN COKE 625,945 11,822

SULPHUR 5,506 104


LOSSES 95,892 2,182

TOTAL PRODUCTS 13,279,902 310,816


SARIR 6,665,763 150,000

MESSLA 6,614,139 150,000

MTBE

HYDROGEN

NATURAL GAS



AROMATICS, vol% max

OLEFINS, vol% max

BENZENE, vol% max

OXYGEN, wt% max

SULFUR, ppm max

RVP, kPa

LEAD, g/l MAX

-

-

5

-

500

35-100

0.013

42

18

1

2.7

150

60/70

none

35

18

1

2.7

50/10

60/70

none

35

18

1

2.7

10

60/70

none

EN 2281993Euro II



Dir 98/702009Euro V


SULFUR, ppm max

CETANE NUMBER, min



n/a

2,000

49

820-860

370

11

350

51

845

360

11

50/10

51

845

360

8

10

51

845

360

EN 2281993Euro II



Dir 98/702009Euro V

-..Libya.would.need.to.produce.about.40.kbpd.incremental.gasoline.which.is.currently.imported

-..Proposed.refinery.crude.processing.capacity.is.300.kbpd


31

FIGURE 10: ECONOMIC INDICATORS

Pricing.Scenario.-.Brent.benchmark.crude.oil.at.60.$/bbl

LPG

SR NAPHTHA

GASOLINE

KEROSENE

DIESEL

FUEL OIL 1%S

OTHERS

699

1169

-1489

762

87

4284

868

24

32

-38

18

2

87

20


SARIR

ES SIDER

AMNA

MTBE

HYDROGEN

NATURAL GAS

TOTAL FEEDSTOCKS

438.4

437.5

441.2

575

1078.1

308.0

58.5

58.5

59.0

70.4

6.5 $/MMBTU

59.5


LPG

NAPHTHA

RAFFINATE

GASOLINE 10ppmS

BENZENE

P-XYLENE

KEROSENE/JET

DIESEL 10ppmS

HEATING OIL 0.1%S

LS FUEL OIL

HS FUEL OIL

GREEN COKE

SULPHUR

REFINERY FUEL GAS

LOSSES

TOTAL PRODUCTS

540

510

510

555

1059

1082

560

560

520

318

281

50

30

0

0

47.2

56.8

53.5

63.5

148.2

151.4

71.2

73.0

69.5

47.0

41.5

0

0

PRODUCTS $/t $/bbl

LPG 252,196 8,660

NAPHTHA 0 0

GASOLINE 10ppmS 2,914,877 76,462


DIESEL 10ppmS 7,901,035 177,649


LS FUEL OIL 0 0

HS FUEL OIL 193,549 3,931

GREEN COKE 625,945 11,822

SULPHUR 5,506 104


LOSSES 95,892 2,182

TOTAL PRODUCTS 13,279,902 310,816


SARIR 6,665,763 150,000

MESSLA 6,614,139 150,000

MTBE

HYDROGEN

NATURAL GAS



AROMATICS, vol% max

OLEFINS, vol% max

BENZENE, vol% max

OXYGEN, wt% max

SULFUR, ppm max

RVP, kPa

LEAD, g/l MAX

-

-

5

-

500

35-100

0.013

42

18

1

2.7

150

60/70

none

35

18

1

2.7

50/10

60/70

none

35

18

1

2.7

10

60/70

none

EN 2281993Euro II



Dir 98/702009Euro V


SULFUR, ppm max

CETANE NUMBER, min



n/a

2,000

49

820-860

370

11

350

51

845

360

11

50/10

51

845

360

8

10

51

845

360

EN 2281993Euro II



Dir 98/702009Euro V


32

FIGURE 11:

TECHNICAL CONFIGURATION

HDk DCU


33

FIGURE 12: TECHNICAL CONFIGURATION

Main.items.to.be.confirmed:

-.Potential.crude.oils:.Sarir.and.Messla.similar.to.existing.Ras.Lanuf.refinery.-.Available.crude.oil.pipeline.and.harbour.facilities.for.products.off-take

TECHNOLOGIES – VDU


34

H2 H2 H2 N2 N2

N2 to filters

UPPERSURGEDRAIN

LOCKHOPPER

LOWERHOPPER

LIFT POT

N2 to filters

UPPER HOPPERSELUTRIATOR

REDUCTION CHAMBER

H2

R-1 R-2 R-3 R-4REGENERATOR

HYDROGEN

C5C5 FEED

OFF GAS

ISOMERATE

MP + nC6

MCP + CH + C7

Deisohexanizer Application

iC5 + DMB + nC5 + MCP + CH + C7

iC5 + nC5 + DMB

ISOMERIZATION DIH

FIGURE 12 CONT'D: TECHNICAL CONFIGURATION TECHNOLOGIES - LN ISOMERIZATION

FIGURE 12 CONT'D: TECHNICAL CONFIGURATION TECHNOLOGIES - CCR


35

FIGURE 12 CONT'D: TECHNICAL CONFIGURATION

TECHNOLOGIES - HYDROTREATMENTS

-.Naphtha.Hydrotreatment.-.Kerosene.Hydrotreatment.or.Sweeting.-.Gasoil.Hydrodesulphurisation.-.DC.Naphtha.and.Gasoil.HDT.

TECHNOLOGIES - VGO HDk

TECHNOLOGIES - DCU

HDS

HDN

HDA

HDC

PRE-TREATING HYDROCRACKING

Feed Products


36

FIGURE 12 CONT'D: TECHNICAL CONFIGURATION

TECHNOLOGIES - SRU

TECHNOLOGIES

-.Off-sites.&.Utilities.. -.Storage.tank.farm.(~100.tanks).. -.Usual.refinery.assets.(Boilers,.BFW,.CW,.WWT,.Flare.Gas.Network,.Fire.Fighting,…)

-.Co-generation.for.power.&.hydrogen.production.from.petroleum.coke

-.Desalination.plant(s)

To Fuel Gas or Recycle

Tall Gas

H3S

H3S+NH3+H2O

Air / O2

S

S

Sexport

Sour Gases

Sour Water

AMINO

CLAUSCLAUSPOLSULTIMATE

INCINERATOR THERMALOR CATALYTIC

SULPHUR DEGASSINGSTORAGE, FORMINGSOUR

WATER STRIPPING

REFINING UNITSHDS, HDT, ...


37

We.truly.appreciate.the.opportunity.to.serve.the.National.Oil.Company..

Winfield.Resources.Limited.looks.forward.to.working.with.the.Government.of.Libya,.the.NOC,.applicable..Insurance.Companies,.as.well.as.all.contractors.and.financing.sources.in.the.successful.construction.of.the..Ras.Lanuf.Oil.Refinery.

Respectfully.submitted,

WINFIELD.RESOURCES.LIMITED

...

Robert.Michael.Foley.President.Winfield.Resources.Limited


38

RAS-LANUF+Feasibility+Proposal[1]

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