Sinopec Engineering Presentation

www.SINOPECEngineering.com

Introduction of SINOPEC Engineering

Outline of SINOPEC Engineering Engineering and R&D Strength Procurement Strength Construction Strength Project Execution Summary Ongoing Project Summary

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All rights reserved © 2008, SINOPEC All rights reserved © 2009 SINOPEC

Outline of SINOPEC Engineering

The parent of SINOPEC Engineering, SINOPEC is the 3rd largest refiner and 4th petrochemicals producer in the world and the 2nd largest crude producer in China , who ranked the 9th in the “Fortune Global 500” , Listing with Revenue US$ 207.8 billion in 2008 when it produced 44million tons of crude and 8.3 billion m3 natural gas; processed 190 million tons of crude and produced 6.3 million tons of ethylene.

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SINOPEC Engineering was reorganized by SINOPEC in July 2007 as a wholly owned subsidiary of SINOPEC. SINOPEC Engineering is authorized on behalf of SINOPEC to organize and integrate the resources and expertise of refining and petrochemical engineering services under SINOPEC to develop and execute global refining and petrochemical projects.

All rights reserved © 2009 SINOPEC


SINOPEC Engineering was first presented in 1953. All through the years, SINOPEC Engineering successfully completed and delivered hundreds of EPC projects in fields of refining and petrochemical for both domestic and overseas clients, Participated developing and commercialized series proprietary technologies of refining and petrochemical industries. After reorganization, SINOPEC Engineering manages five leading engineering companies and three leading construction companies in China, total employee reaches 20,000, they are: SINOPEC Engineering -SEI SINOPEC Engineering -LPEC SINOPEC Engineering -SSEC SINOPEC Engineering -SNEC SINOPEC Engineering –SNEI SINOPEC Engineering –FCC SINOPEC Engineering –SFCC SINOPEC Engineering -TCC

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Main Fields of Business: ¾ ¾ ¾ ¾ ¾ ¾ ¾

Refinery Petrochemical complex Fertilizer Plants Pharmaceutical Plants LNG plant Long-distance pipeline Municipal facilities



Scope of Services: ¾

Project Concept

¾

Master Planning

¾

Technology transfer & licensing

¾

Feasibility study

¾

Environmental Impact Assessment

¾

Geo-technical Engineering & Engineering Surveying

¾

Process Design Package

¾

Basic & Detailed Engineering

¾

Procurement

¾

Construction & Construction Supervision

¾

Commissioning

¾

Manufacturing and Fabrication

¾

Training

¾

Maintenance and Overhaul


Engineering and R&D Strength

Human Resources:

General

To bring the SINOPEC group advantages to execute the overseas projects , SINOPEC Engineering was reorganized in 2007, with four engineering companies , four construction companies and an independent engineering technology institute .SINOPEC Engineering employees 19,000 people of which 6,000 are technical staff. Except above human resource, all 100,000 people within SINOPEC for petroleum refining and petrochemical engineering and construction are available for SINOPEC Engineering.

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Engineering Strength:

Total 4065

Process

191 122

309

Equipment & Mechanical Piping

427 487

695

549

1285

Electrical & Instrumentation Civil,Structural & Architectural Health,Safety & Environmental Utility Draft Man



SINOPEC Engineering has experienced engineering team with 6000 person, and has engineering experience for 10 million t/a refinery complex, 1 million t/a ethylene complex, 150,000 m3 single storage tank and so on. Especially, SINOPEC Engineering as PMC or EPC contractor has executed and delivered Nanhai (Joint Venture by Shell and CNOOC) 800,000t/a ethylene complex; SECCO (Joint Venture by BP and Sinopec) 900,000 t/a ethylene complex; BYC (Joint Venture by BASF and Sinopec) 600,000t/a ethylene complex since 2000. Fujian refinery and petrochemical integrated project (Joint Venture by Sinopec, ExxonMobile and Saudi Aramco) with 800,000t/a ethylene complex and 1.2 million tons per year refinery has 2500

100%

been finished by SINOPEC Engineering in 2009.

90%

2000

80%

60%

50%

1000

% Complete

Total Construction Manpower

70%

1500

40%

30%

500

20%

10%

0 Manpower % Compltete

0

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

0

0

0

0

0

0

106

186

292

292

345

451

557

663

822

954

1,087

1,140

1,166

1,405

1,643

1,908

1,961

1,961

1,961

1,961

1,855

1,670

1,246

716

159

0.0%

0.4%

1.1%

2.2%

3.3%

4.6%

6.3%

8.4%

10.9%

14.0%

17.6%

21.7%

26.0%

30.4%

35.7%

41.9%

49.1%

56.5%

63.9%

71.3%

78.7%

85.7%

92.0%

96.7%

0%

99.4% 100.0%

Project Month

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450，000 t/a PE

1 million t/a Ethylene 12 million t/a CDU & VDU

260，000 t/a AN

1.5 million t/a catalytic reformer

300，000 t/a PP 15 Billion m3/a gas purification

Maximum capacity of single unit

2000 t/a Coal Gasification 450,000 t/a Ammonia

4.1 million t/a diesel hydro-finishing

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850，000 t/a Methanol 2 million t/a hydro-cracker

3 million t/a catalytic cracker

3.1 million t/a Residual Hydro-finishing



Integrated IT system

Process DB

e-Doc.Management

PRO II ,ASPEN Eng. Suite, FRI,HTFS,HTRI, ZYQAD, CFX,PFR,SP PID,PDS P&ID, ASPECT, Plant Builder/Auto Router, SP Explorer, ICARUS,IPE

DOCUMENTUM 4i, LOTUS NOTES

Engineering 3D Model DB

Engineering DB , II VANTAGE PE, INTOOLS, CAESAR ANSYS, INSTRUCALC, FE/PIPE, Pvelite , TANK , EDSA

PDS 3D, ISOGEN, SP REVIEW,PDMS,REVIEW, I STAAD PRO Sketch, 2000

Procurement Material Control &

Project Management P3 , STAT, PMCV, PMCF, ACCPAC, Expedition,

Construction Construction Management

Procurement Management MARIAN, PMCS

SPOOLGEN, CQCS



Examples For 3 D Design Hydrocracking Unit For Qingdao Refinery

Model

200,000 t/a Polypropylene Unit In Hainan Refinery 15



Major Technology Applications in The Last Ten Years

16

No.

Project Description

Project Scale (10 thousand per year)

1

CDU/ VDU

300-1200

SINOPEC

37

EPC

2

Catalytic Cracking

60-300

SINOPEC

74

EPC

3

Delayed Coking

80-250

SINOPEC

33

EPC

4

Hydrofining

60-410

SINOPEC

75

EPC

5

Hydro Cracking

80-360

60

EPC

6

Catalytic Reforming

15-240

49

EPC

Technology/Licensor

Numbers of Project

Service Scope

SINOPEC

SINOPEC



Major Technology Applications in The Last Ten Years

No.

17

Project Description

Project Scale (10 thousand per year)

Technology/Licensor

Numbers of Project

Service Scope

1

Ethylene

60-100

Stone Webster Lummus--SINOPEC

8

EPC

2

Polyolefin

20-60

Basell BP Innovene SINOPEC

10

EPC

3

Synthetic Rubber

6

EPC

4

Synthetic Fiber

5

EPC

5

C1 Chemical

2

EPC

6

Ammonia

2

EPC

Dow Chemical SINOPEC BP-AMOCO、INVISTA 60-100 、Mitsubishi、 EASTMAN SINOPEC BP acetic acid： 35 Shell Methanol：85 8-30

30~45

KBR



Technology Research & Development

Depending on demands of oil refining and petrochemical, Sinopec Engineering has

establish

a science & technology innovation system. A set of core technologies and specific technologies with international competitiveness have been developed, the whole level of science & technology have stepped into advanced train of the world.



The Organization Mode of Key Process Technologies Commercialization


Procurement Strength

General

As a wholly owned subsidiary of SINOPEC GROUP, SINOPEC Engineering takes full advantages of the Group’s integrated resource network, shares the super Purchasing Capability of the Group. A reliable supply network established with more than 20,000 qualified suppliers is always a success guarantee to our projects.

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Procurement manager 35

96

Procurement coordinator

42

Senior buyer Buyer 60

38 19

33

69

Purchasing clerk Traffic clerk Expediter Others

Total 392



MARIAN Application Program

3D Plant Design Model

Other system/ manual take off

ISO’s MTO

Sinopec Eng. Finance System

MRR's MIR’s

PO's

MARIAN

MLCL •Comm. Group •Comm. Part •Comm.Code •Ident Code •Description

E&PI

MSCM

•BOM by WBS,Version •Req Template

BOMS

Sinopec Eng. Reports

•Inquiry •Quote •PO •Supplier Lib Requisitions •Req Planning •Expedite •Traffic


SITE MRR's OS&D's

•MRR’s •MIR’s •OS&D’s •MRS’s

PO's Matl Res.




Inspection-Sequence and Execution

Quality Requirements Specification Requisition

Notice to Client Approval of Vendor’s QC Documents

Application for Inspection

Request for Inspection Inspectors Assignment

Inspection Release Certificate

Inspection Resident Inspection

MDR Review & Approval

Witness Inspection Confirmation by Records Review

Finding Non Conformance

Corrective Action by Vendor

Inspection



Expediting-TYPICAL ACTIVITIES

P.O. Copy

Attending Kick-off Meeting

Shipment Receiving Cargo Readiness Notice

Monitoring Material Suborders Status

Expediting Vendor’s Documents Not Completed

Specification Requisition

Expediting As-Built Document Submission

Monitoring Fabrication Progress

Completed Expediting Shipping Preparation

Issuing Release for Shipping Preparation

Issuing Inspection Release Certificate

Inspection



Packing and Shipping

Purchase Order

Manufacturing

Logistic Planning

Space Booking

Ready for Shipment

Export Packing

Export Clearance

Forwarding Contract Loading in Ship

Unloading from Ship

Import Customs Clearance

Inland Transport’ to Site

Unloading at Plant Site



Strong procurement and supply capability for oil & petrochemical related equipment and materials

20.41

22 20

16.97

18 14.52

16 13.03

14 12 10

9.14

Total Purchase Value (Billion US$)

7.87

8 6 4 2 0 2002 26

2003

2004

2005

2006

2007



Overseas Procurement Subsidiaries



Domestic Offices

Yanshan Tianjin Qilu Jiangsu Jinling Yizheng Nanhua Yangzi Jinshan East Shanghai Gaoqiao Zhenhai Fujian Guangzhou Maoming Zhongnan Chongqing

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Procurement

Supplier Sourcing Worldwide ♦

Total Qualified:

20,098 Suppliers (including 1211 offshore suppliers)

♦

A Level: 2,286 Suppliers 33 Strategic suppliers: 23(onshore)+10(offshore)

♦

B Level: 16,601 Suppliers



Procurement

Annually Purchasing Volume (Onshore/offshore)

2006 :

2007 :

Total:

Total:

RMB

131.5

billion

Import/export:

USD

3.23

billion

E-Procurement:

RMB

113.0

billion

RMB

158.2

billion

Import/export:

USD

4.61

billion

E-Procurement:

RMB

145.5

billion



Procurement

Operation Platform for Material Control

For EPC Projects: Intergraph Marian VPRM

SINOPEC Internal ERP System SAP

E-Commerce: www.SINOPEC-ec.com.cn



Procurement

Logistics

Rich Experienced Logistics Experts/Engineers,

Professional Management of the Door to Door Service for Projects of different nature.

Comprehensive range of sea, air forwarding and land transportation, combined shipment & Transshipment etc.



Pre-fabrication Shop For Pipe Spool Pre-fabrication Shop For Pipe Spool Pre-fabrication Shop For Structural Steel

SINOPEC has Advanced Structural Steel And Pipe Spool Pre-fabrication Shop with more than 60% Pre-fabrication capability

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Manufactured Reactor Manufacture d Reactor

Manufactured Reactor SINOPEC owns three large equipment manufacturing plants, i.e. Ningbo Mechanical Manufacturing Company, Shanghai Petrochemical Machinery Manufacturing Company and Nanjing Chemical Machinery Manufacturing Factory. Compared with other petrochemical equipment manufacturers in China, all the three plants have the most advanced process equipments and information management system capable of developing and manufacturing of petrochemical patent and proprietary equipments. The total production capacity of manufacturing more than 200,000 t/a customized equipment.

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Over Size Equipment Handling


Construction Strength

General

With the most experienced engineers, skilled workers, and equipped with the most advanced machineries, SINOPEC Engineering is fully capable of constructing, construction supervision and management for large-scale refinery, petrochemical and Chemical plants, thermal power plant, and hoisting and erecting oversized and heavy equipment, large size storage tank and long distance pipeline etc.

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Construction Manpower

Construction Managers Construction Supervisors

805

Welders

740 751

2473

Plumbers Riveters

639

3225 Locksmithes 497

757

2114

Total 12001

Cranemen Electricians/Instrument staffs Others



Construction Strengths

Lifting And Transportation Of Large Equipments

Installation Of Large Machinery Train

Construction Experien ce In Low and High Te mperature Region

Technical Advantage of Project Execution

Construction Of Large Storage Tank

Equipment Manufacturing

Shop Pre-fabrication For Pipe And Structural Steel

38



Construction Equipment Tools

¾ Crane

200-1600Tons

19

¾ Auto Welding Machine

1000

¾ Metal Machining Equipment

460

¾ Transportation Facilities

210

¾ Testing & Inspection Equipment

1260



Heavy Lifting SINOPEC posses the world top Lifting and Transportation Super-Larger and heavy Equipment

SINOPEC Own 6*500t crane

10*726t reactor

SINOPEC Own the 1100t crane

“A” Type frame lifting Flare

SINOPEC Own the1250T Crane

40

SINOPEC Own the 4*1200t trailer

SINOPEC Own 8*500t trailer

5200mm x 120m Reactor from harbor to job site



This is unique software for lifting system in the world so far

Hoisting Simulating

Safety First

Lifting software



Installation of Large Assemblage Compressor of Large Compressor

Tuning of Large Compressor

42



Tank Farm

43



Certification of Safety Performance



Safety Performance Award



On Schedule Award


Project Execution Summary

General

SINOPEC Engineering has EPC execution experience for 10 million t/a refinery complex, 1 million t/a ethylene complex, 150,000 m3 storage tank, 160,000 m3 Cryogenic LNG storage tank.

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Project Execution Strength

180

320

Management

195

Project Manager

450

410

SHEMS&Welfare QA/QC (Sub)Contracting Administrative Estimating

380

420 360

185

Cost Controllers Scheduling

Total 2900



Project Management and Engineering Software

Application Software

Project Management

Engineering

Process Simulation •PROII •ASPEN •HTRI •TSWEET

49

3-D Design •PDS •PDMS •SP3D

Project Management •PREMERVIA •GPLAN •PROJECT

Material Control •MARIAN •PMCS

Document Control •DOCUMENTUM •SHAREPOINT •WISE



Project Management Objective Definition

Project management

Effective use of management resources

Integration/Optimization of Objectives

Project Goals

Resources zManpower zEquipment /Machinery zMaterial

zMoney/fund zTechnology

/ Methods zInformation

Achievement of Project Targets

zQuality:：high-quality zSafety

product

：zero lost time incidents

zSchedule：On-time zCosts

：within budgets



Project Control Cycle

Defined Scope Of Work

Define Measure Method & Std.

Change Log Management

Establish A Control Baseline Defect Completion

Trace Check Measures To Be Taken Trend Analysis



Project control based on Engineering Database

Contract

Costs Schedule

Project Finance Materials Control Procurement



Achievement

Fujian 10MTA Refinery and 800,000TA Ethylene Project JV by SINOPEC/ Aramco/Exxon



Achievement

Shanghai SECCO 900,000TA Ethylene Project

JV by SINOPEC/bp



Achievement

YBPC600,000TA Ethylene Project

JV by SINOPEC/BASF



Achievement CSPC 800,000TA Ethylene Project

JV by CNOOC/SHELL



Achievement Zhenhai Refinery (Video)



Achievement

Rehabilitation of the Unit 1 & 2 of Mehardeh Power Plant, Syria

Oil Receiving Terminal in Caspian Sea, Iran



Domestic Major Achievements



Overseas Achievements N O

DESCRIPTION

WORK SCOPE

CONTRACT TYPE

APPROXIMATE CONTRACT VALUE (US $)

CONTRACT DURATION

COUNTRY

EPC

Consortium Partner, Lump Sum

750 Million

2005-2008

Saudi Arabia

1

YANSAB Polyolefin Complex Project

2

Rabigh Development Project

C

Subcontractor, Lump Sum

194 Million

2006-2008

Saudi Arabia

3

Hawiyah Gas Plant Expansion Project

C


52 Million

2006-2008

Saudi Arabia

4

SABIC EO/EG Project

CM+C


96 Million

2007-2009

Saudi Arabia

5

Yanbu BBTX Project

C


40 Million

2008-2008

Saudi Arabia

6

Shazand Arak Refinery Expansion And Upgrading Project

EPC

Consortium Partner, Lump Sum

3184 Million

2006-2009

Iran

7

Esfahan Refinery Upgrading Project

EPC

Main Contractor, Lump Sum

700 Million

2007-2010

Iran

8

Tabriz Refinery Upgrading Project

EPC


140 Million

2006-2009

Iran

9

CROS (Caspian-sea Republic Oil Swap) Project

EPC


140 Million

2002-2003

Iran

10

Khartoum Refinery Expansion to 5,000,000 t/y

E


40 Million

2000-2003

Sudan

11

2,500,000 t/y Khartoum Refinery Project

E


45 Million

1996- 2000

Sudan

12

Meharden Power Plant Project

CM+C

Construction Contractor, Lump Sum

50 Million

2004-2006

Syria

13

Fertilizer Project

C

Construction Contractor, lump Sum

20 Million

2000-2002

Jordan

14

Mina Al-Ahamadi Refinery Restoration Project

Unit Price Contract

140 Million

1992-1994

Kuwait

15

Shuaiba Refinery Tankage Project


9.97 Million

1997-1998

Kuwait

E, P, C, EPC


Financing Ability

General

SINOPEC Engineering has established good relationship with resources which can provide beneficial financing solutions, includes equipment financing and capital loans; we can structure financing which will satisfy your specific business requirements - which can hedge your current and future needs.

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Partial Project Summary

General

SINOPEC Engineering has done refinery and petrochemical projects in Saudi Arabia. It is partial example for EPC execution.

62



SABIC YANSAN Polyolefin Project

Owner：YANSAB SABIC EPC Contractor：Consortium of SINOPEC Engineering and Aker Solution Contract schedule: 2005.7.20 to 2008.3.30，31.5 months Contract value：750M USD Peaking manpower: 3000



PP/PE/PHU Design Bird View



PP/PE Site Pictures



PP/PE Site Pictures



RABIGH Refinery Development Project

Owner：PETRORABIGH ARAMCO EPC Contractor：Tecnicas Reunidas Contract Scope: Construction Contract Schedule: 2006.5.4 to 2008.6.15，24 months Contract Value：192M USD Peaking Manpower: 3200



Refinery Project Site Picture



Refinery Project Site Pictures



Mechanical Completion



SABIC KAYAN EO/EG Project

Owner：SAUDI KAYAN EPC Contractor：CTCI and SINOPEC Engineering Contract Scope: Construction and CM Contract Schedule: 2006.11 to 2009.7，33 months Contract value：96M USD Peaking manpower: 1400



EO/EG 3D Model



EO/EG Project Site Pictures



EO/EG Washing Tower lifting



On going project in Saudi Arabia

Name of the Project: HAWIYAH Gas Plant Expansion Project Owner： ARAMCO EPC Contractor： Tecnicas Reunidas Contract Scope: Construction Contract Schedule: 2006.10.31 to 2008.6.30, 20 months Contract value：52M USD Peaking manpower: 2000



Gas Plant Site Pictures



Heavy lifting

Shop Fabricating



SABIC YANSAB BBTX Project

Owner： YANSAB SABIC EPC Contractor：Stone Webster Contract Scope: Construction Contract Schedule: 2008.1.16 to 2008.9.30, 8.5 months Contract value：39.6M USD Peaking manpower: 1200



BBTX Project Site Pictures



SINOPEC Engineering Camps in Saudi Arabia

JUBAIL:1800

YANBU:3000

HAWIYAH:2200 PETRORABIGH:3200



Camps in Saudi Arabia


Concluded

•One Project One Team, Team up with both International Engineering and Local Companies

• Know how to manage and realize safety approaches for gross root and revamping refinery and petrochemical projects

•Know how to manage and get on schedule for gross root and revamping refinery and petrochemical projects


Concluded


Sinopec Engineering Presentation

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