Urea Manufacturing Project

Brunei Ammonia/UreaBrunei Ammonia/UreaManufacturing ProjectManufacturing Project

Consortium PresentationConsortium PresentationBandar Seri BegawanBandar Seri BegawanBrunei Brunei DarussalamDarussalam

20 September 200420 September 2004

Ammonia/Urea ProjectAmmonia/Urea ProjectPresentationPresentation

Introduce Project PartnersIntroduce Project Partners

Urea Product and MarketUrea Product and MarketInformationInformation

Project DimensionsProject Dimensions

Manufacturing ProcessManufacturing Process

Project Benefits for BruneiProject Benefits for Brunei

Project PartnersProject Partners

Original project proponentOriginal project proponentIndonesian subsidiary involved in ammonia/ ureaIndonesian subsidiary involved in ammonia/ ureatrade and development of a world scale facilitytrade and development of a world scale facilitywithin Asiawithin AsiaStrong strategic relationship with US West CoastStrong strategic relationship with US West Coastlargest ammonia/urea importerslargest ammonia/urea importers

3030 years years involvementinvolvement in Brunei in Brunei LNG ProjectLNG ProjectTop 10 global revenue Top 10 global revenue companycompanyOwns and operates ammonia plants in IndonesiaOwns and operates ammonia plants in Indonesia

Publicly listed company with market capitalisationPublicly listed company with market capitalisation~ AS$1 billion~ AS$1 billionAustralia’s largest fertiliser manufacturer andAustralia’s largest fertiliser manufacturer anddistributordistributorOwns and operates ammonia and urea plants inOwns and operates ammonia and urea plants inAustraliaAustralia

3 Foundation Partners

The world’s most widely used nitrogen fertiliserThe world’s most widely used nitrogen fertiliser

The most commonly used fertiliser to provide nitrogen in agriculture.The most commonly used fertiliser to provide nitrogen in agriculture.

The most concentrated form of solid nitrogen fertiliser - 46%N.The most concentrated form of solid nitrogen fertiliser - 46%N.

Appearance:Appearance: Free flowing white granules (2 - 4 mm diameter)Free flowing white granules (2 - 4 mm diameter)

Chemical Formula:Chemical Formula: CO (NHCO (NH22))22

Urea Product InformationUrea Product Information

Urea Market DemandUrea Market Demand

Urea is one of the world’s largest globally tradedUrea is one of the world’s largest globally tradedcommodities with demand increasing at ~3% per annum.commodities with demand increasing at ~3% per annum.

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Ammonia/Urea Project DimensionsAmmonia/Urea Project Dimensions

Ammonia Ammonia ProductionProductionAnnual rate - 720,000 mtAnnual rate - 720,000 mtWorld scale - equal to largestWorld scale - equal to largestcurrent production ratecurrent production rate

Granular UreaGranular Urea ProductionProductionAnnual rate - 1,225,000 mtAnnual rate - 1,225,000 mtWorld scale - largest AsianWorld scale - largest Asianmanufacturing capacitymanufacturing capacity

Scale of InvestmentScale of InvestmentApprox. US$600 millionApprox. US$600 million

World scale, proven size, proven technology.

Ammonia and Urea ManufactureAmmonia and Urea Manufacture(Simplified Block Flow Diagram)(Simplified Block Flow Diagram)

Natural GasFeed

ReformingShift and CO2removal

Methanation &Compression

AmmoniaSynthesis

Ammonia Plant

Urea Plant

UreaSynthesis

UreaGranulation

1000

Urea

Urea Formaldehyde

CO2

Ammonia

Air Steam

3170

Note : 1000 units of gas will produce over 3000 units of urea

100% of ammonia produced is used in urea production

Over 70% of CO2 generated from ammonia production is usedin urea production

Urea Manufacture has minimal Environmental Impact:Urea Manufacture has minimal Environmental Impact:

Urea is used in growing crops which consume COUrea is used in growing crops which consume CO22 and andfeed the worldfeed the world

Liquid effluent is negligible and will be managed to world leadingLiquid effluent is negligible and will be managed to world leadingANZECC protocolANZECC protocol

Gaseous emissions will be managed to meet world standardsGaseous emissions will be managed to meet world standards

The facility will be constructed and operated to world’s best andThe facility will be constructed and operated to world’s best andfertiliser industry codes of practice.fertiliser industry codes of practice.

Environmental SustainabilityEnvironmental Sustainability

Strategic location servicing Asia, USWest Coast and Australia

Brunei Government committed todownstream development

Gas infrastructure is existing andextensive

World competitive gas price

Stable, safe and economically securecountry

Availability of well educated anddisciplined workforce

Track record with large petro chemicalfacilities

Why Why BruneiBrunei ? ?

Project Benefits for BruneiProject Benefits for Brunei

Broaden the Economic base of BruneiBroaden the Economic base of BruneiExpand exports earning by ~US$150 million per annumExpand exports earning by ~US$150 million per annumDiversification from petroleum incomeDiversification from petroleum incomeMultiplier effect from spin-off opportunitiesMultiplier effect from spin-off opportunities

Training and DevelopmentTraining and DevelopmentOn site skills development and trainingOn site skills development and trainingUniversity and Technical Institute programsUniversity and Technical Institute programsSecondment opportunities with project partnersSecondment opportunities with project partners

Employment opportunities at many levelsEmployment opportunities at many levelsDirectly at the facilityDirectly at the facilityIndirectly servicing the facilityIndirectly servicing the facilitySpin off industriesSpin off industries

Employment OpportunitiesEmployment Opportunities

More than 200 new jobs will be createdMore than 200 new jobs will be created

155 jobs direct with the project owners155 jobs direct with the project owners

More than 50 new permanent jobs servicingMore than 50 new permanent jobs servicingthe facilitythe facility

High proportion of skilled management andHigh proportion of skilled management andtechnical rolestechnical roles

High level of Bruneisation of jobsHigh level of Bruneisation of jobs

Indirect EmploymentIndirect Employment

Suppliers to the ProjectSuppliers to the ProjectOngoing plant suppliers and service contractorsOngoing plant suppliers and service contractors

Gas, power and water suppliesGas, power and water supplies

Urea Formaldehyde and chemicalsUrea Formaldehyde and chemicals

Maintenance labourMaintenance labour

Facility managementFacility management

HR and IT ServicesHR and IT Services

TrainingTraining

Financial ServicesFinancial Services

Spin - Off OpportunitiesSpin - Off Opportunities

Downstream Usage of UreaDownstream Usage of Urea

MelamineMelamineCoatings and laminatesCoatings and laminatesFormaldehydeFormaldehydeBuilding products (particle board andBuilding products (particle board andmelamine)melamine)Fertiliser bagging and blending plantsFertiliser bagging and blending plantsLivestock nutrition (cattle/poultry)Livestock nutrition (cattle/poultry)Fuel additivesFuel additives

Spin off opportunities could add as many as 300additional full time jobs

Brunei Ammonia/UreaBrunei Ammonia/UreaManufacturing ProjectManufacturing Project

The ammonia/urea project has clear benefits to Brunei throughdiversification of earnings and the creation of over 200 new full time jobs,

as well as new spin off opportunities for small to medium enterprises.