KUAI Energy Systems

Modular Crude Oil Minirefineries

•Modular Oil Refineries from 500 to 50,000 Barrels per Day for Crude Oil to produce Naphtha, Gasoline, Kerosene, Diesel 2, Heavy Fuel Oil 6 and Asphalt .

•No need for process water, minimizing environmental emissions. Can be sited as close as possible to oil fields.

•Larger refining capacities can be provided by paralleling Modular Refineries with maximum flexibility and reliability.

•We can provide Minirefineries and Electric Power Generating Plants using their subproducts as fuels in a Turn-Key basis, including the engineering, design, permitting, manufacturing, shipping, erection, installation, commissioning, start-up, training, operation and maintenance.

•We can offer a variety of financing options depending on the needs of our Clients. 2

Our Group offers a wide experience in the international management, engineering, financing, sales, production, project management and installation of Energy Systems in the Oil and Gas and in the Power Generation fields. We are proud to present our Modular Refining Systems in conjunction with CHEMEX LLC, a leading manufacturer of Petroleum Processing Equipment since 1974. Another added value is our association with Prime Energy & Chemical and our ability to provide Power Generation Systems to integrate a complete Energy System from the oil well to the electrical power grid.

Existing CHEMEX Oil Refinery Projects Worldwide

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Project Experience Since 1974, Chemex has

constructed or modified many refineries worldwide. The client

list includes the following:

Bechtel Torch Energy Texaco Veneco Energy Chevron GPC Sudan Union Oil Metro Oil & Refining Shell Oil McPherson Oil Mobil Oil Baker Hughes Occidental Flying ‘J’ Refining Aera Energy Goodway Refining Corn Products Hamilton Engineering Seneca OilGeorgia American Oil

Concorp International

U.S. Department of Energy Redd Engineering Santa Fe Energy Fujairah Marine Service Berry Petroleum Natural Resources Group Huntway Refining Seadrift Coke Beacon Refining Whittier Oil Pertamina Refining Niger Delta Petroleum Corp. DESOPADEC Tri Wahana Universal Golden Gate High Sierra Energy Pertro Source Partners

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Traditional Oil Refineries: The Old Fashioned Way

• The traditional Oil Refineries process Crude Oil fractional distillation to produce a variety of subproducts, such as LPG, Gasoline, Kerosene, Diesel Oil, Heavy Fuel Oil, Asphalt, etc. using their varying boiling points. These subproducts which can be used directly as fuels, enhance the economic value of the crude oil.

• Traditional Oil Refineries typically process from one hundred thousand to several hundred thousand barrels of crude oil per day. This means that a huge amount of crude oil has to be transported from the oil wells to the refineries with great transportation costs under hazardous conditions along the way.

• The large scale and complexity of a traditional Oil Refinery and the associated hazards make it very hard to be able to site and build a brand new large refinery because of its relatively high cost and environmental impact.

• They use a relatively high amount of process and cooling water which turns into wastewater that has to be treated before discharging to waterways, adding to the cost. There is an increasing amount of cost involved in attenuating air emissions and solid waste to comply with ever tighter regulations. As a result, no major refinery has been built in the USA since Marathon’s Garyville, Louisiana, refinery was installed in 1976 and many others have been closed.

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Traditional Oil Refineries: The Old Fashioned Way

• Large scale and complexity.• High capital & operation cost.• Hazards - hard to site.• Environmental Impact.• High amount of process and cooling water

turning into wastewater to be treated.• Large volume of air emissions and solid

waste to comply with ever tighter regulations.

• No major refinery built in the USA since Marathon’s Garyville, LA refinery was installed in 1976.

• Many have been closed.

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Modular Oil Refineries: The Modern Way:

• New modular pre-fabricated design meeting ASME, ANSI, API, FM USA-EPA and World Bank standards.

• Tailored to each client’s application, can be sited next to oil wells minimizing transportation cost.

• Modular Refineries are air cooled. Do not need cooling water.

• Gases produced are used to fuel the distillation process instead of flared, minimizing the environmental effect.

• Reduce installed cost, time required for permitting, shipping, erection, installation and commissioning.

• Modular Refineries are assembled and tested at the factory, taken apart and shipped. No field welding required, everything is flanged.

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Modular Oil Refineries: The Modern Way:• Modular Refineries take advantage of state-of-the-art

process techniques to automatically control the amount of each desired subproduct according to the needs of the client.

• Modular Refineries can be sited to optimize the production of fuels that can be used in diesel engines and gas turbines for distributed electrical power generation.

• Modular Refineries require a minimum amount of operating personnel since their automatic operation can be monitored and controlled remotely through a SCADA system and the operators digitally alerted of any alarms.

• Modular Refineries can be installed in a short time without welding to coincide with the start of exploitation of oil wells.

• They can be operational within 4 hours after a cold start.

Crude Oil is composed of a widely varied Mix of Hydrocarbons

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Typical Assay of Leona 24 Crude Oil

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Modular Refinery Capacities

• Our modular Minirefineries have the following refining capacities of crude oil: 500, 625, 1000, 2000, 3000, 6000, 10000, 120000, 15000 , 20000 and 30000 and 35,000 Barrels

per Day .

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Modular Oil Refinery Yields

• Our Modular Oil Refineries offer subproduct yields depending on its configuration for the desired subproducts based on the specifications of the Crude Oil being used.

• For example, the following chart shows the subproduct yield for a 20,000 Barrels per Day Modular Refinery with a ADU/VDU/CRU/HDS processing heavy Crude from Ecuador to maximize the production of high octane Gasoline and low Sulfur Diesel 2 (less than 400 parts per million). In this case, Off Gas and LPG are used in the distillation process, Kerosene is used for reinjection back into the oil well to help the flow of the heavy crude oil, Heavy Fuel Oil is used for electrical power generation and asphalt for roadway construction.

2% 2%

18%

7%

21%20%

29% Off GasLPGGasoline (95 RON)LS KeroseneLS DieselHFOAsphalt

We can provide the following Modular Oil Refining Process Units:

• ATMOSPHERIC DISTILLATION UNIT (ADU) - separates the different fractions of the crude oil according to boiling range into naphtha, kerosene, diesel, and residuum products. it operates at less than 15 psig.

• VACUUM DISTILLATION UNIT (VDU) - performs the same function as an ADU, but operates at a pressure of less than zero psig. it produces products like marine fuel oil (MDO) and asphalt from the ADU residuum (heavy fuel oil).

• CATALYTIC REFORMER UNIT (CRU) - produces high octane gasoline from naphtha.

• HYDRODESULFURIZATION UNIT (HDS) - removes sulfur and other impurities from naphtha and distillate fuels.

• HYDROCRACKER UNIT (HCU) - produces naphtha, kerosene, and diesel from heavy feedstocks like VDU distillates.

• DESALTER - removes salt from crude oil prior to distillation to prevent fouling and corrosion.

• SPLITTER/STABILIZER - separates a feedstock into two products.

• FLARE - combusts any excess vapor released by process equipment.

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Modular Refining

We can supply the following Modular Gas Processing Components:

• FIELD COMPRESSION SYSTEM - raises the gas pressure from the

well heads to the pressure required for gas transmission.• AMINE TREATER - removes hydrogen sulfde (H2S) and carbon

dioxide (CO2) from the gas stream. Amine gas treating, also known as gas sweetening and acid gas removal, refers to a group of processes that use aqueous solutions of various amines.

• GLYCOL DEHYDRATOR removes enough water to prevent freezing during transmission or processing. Design pressures are available from 230 psig to 2,160 psig.

• MOLE SIEVE DEHYDRATOR removes all of the water from a gas stream. this unit is used when the gas is processed to very low temperatures (less than -40 F).

• NATURAL GAS PROCESSING PLANT removes natural gas liquids (ngls) from a gas stream. the gas is cooled until the desired ngls condense. the raw natural gas must be purified to meet the quality standards specified by the major pipeline transmission and distribution companies. these quality standards vary by pipeline and are usually a function of the pipeline system design and the markets served.

• NGL FRACTIONATOR recovers ngls by distillation in demethanizing, deethanizing, depropanizing, and debutanizing fractionation columns. Each fractionation column removes a component from the ngl stream.

• FLARE combusts any excess vapor released by process equipment.

• CLAUS UNIT recovers elemental sulfur from H2S 13

Modular Gas Processing

POLYMER MODIFIED ASPHALT

Polymer-modified asphalt (PMA) is produced through the addition of a polymer (and usually several other chemical components in smaller amounts) to liquid hot base asphalt. The purpose of producing PMA is to provide asphalt that meets the new Superpave requirements, with added strength and flexibility at a wider temperature range than non-modified asphalt.

Chemex has extensive expertise in PMA blending for a wide variety of applications. Our design flexibility will reflect your company's needs regarding key design parameters such as capacity, level of automation, equipment preferences, and material handling to ensure complete customer satisfaction.

Our process utilizes proprietary technology and the most recent developments in formulation and equipment configuration. Our design can be highly automated to allow blending of a wide variety of polymers into a wide variety of asphalt base stocks. Our process has the flexibility to minimize modifier and operating costs while maximizing product value.

Chemex PMA system advantages are as follows:

Proprietary Design - Chemex's formulation technology and mechanical design provide the highest flexibility and efficiency available by minimizing the quantity of polymer and/or additives required to meet specification requirements.

• Flexibility – Chemex's equipment configuration allows for a PMA plant capable of blending up to 15% of polymer concentrates into a wide variety of asphalt base stocks, with operating viscosities of up to 8,000 centistokes.

• Chemex equipment can be designed to process from 250 to 1400 tons per day of PMA, while heating the asphalt to the required mix temperature.

• Automated Process - The Chemex design controls the polymer addition rate automatically, maintaining the desired polymer concentration based on the asphalt flow rate into the mixing tank. Chemex's automated process provides improved metering and regulation versus manual versions.

• Thorough Polymer Dispersion - Chemex's process incorporates a combination of high temperature, high-shear mixing, and automation that provide a thoroughly dispersed polymer.

• Avoiding Phase Separation - The formulations used by Chemex impede phase separation. Both mechanical and chemical measures are used to provide a stable, homogeneous, blended PMA product. Chemex's proprietary design allows the polymer to "network" within the asphalt, creating a homogeneous mixture.

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3-D Design and Rendering

SCHEDULE A - PROCESS DESIGN PACKAGE

• process simulation;• process fow diagram (PFD);• piping and instrumentation

diagrams (P&IDs);• electrical single line diagram;• heat exchanger data sheets;• air cooler data sheets;• pump data sheets;• ASMe Section VIII pressure

vessel data sheets;• electrical and instrumentation

equipment lists; and• process unit site plan.

SCHEDULE B - CONSTRUCTION DESIGN PACKAGE

• structural steel design drawings for skids;

• foundation design skids;2.• equipment general

arrangement drawings;• equipment drawings;• piping drawings;• electrical location diagram;• instrumentation location

diagram;• electrical wiring diagrams; and• instrumentation wiring

diagrams.

We can offer an Engineering and Design Package for the Minirefineries, including On-Site advisory services for equipment installation, commissioning, start-up and test run.

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Fabrication

• Our Modular Refineries are designed with skid-mounted modular equipment for placement on concrete slab foundations. With conventional foundation-mounted equipment, each piece of equipment is placed on its individual foundation and welders pipe the equipment together. This “stick-built” method requires longer construction time than Chemex’s modular fabrication.

• Chemex manufactures brand new or refurbished process units in its facilities in Bakersfield, California. We offer clients the option of using refurbished process equipment with a warranty equal to new equipment since using refurbished process equipment can result in substantial cost savings and accelerated completion schedules when compared with new equipment.

• Our equipment is designed to be transported by land or sea to any location. The equipment is fabricated in the same configuration as the process unit site plan. All piping, instruments, and electrical connections are made among the skids and tested. after completion of testing, the equipment is disassembled, packed, shrink-wrapped, and shipped from Bakersfield or from the Port of Houston.

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Installation• We can provide personnel to advise the buyer of the final assembly

and construction at each site. We can also provide local project management. When the equipment arrives at the facility site, it is unloaded and set on the concrete slab foundations. Final skid placement and elevations are checked against the drawings and skids are shimmed and adjusted accordingly. After the equipment is in place, assembly of the interconnecting spools begins. The equipment is literally bolted together with very little welding required. The process equipment can usually be assembled and ready to start up within thirty days.

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Commissioning and Start-Up• We can provide advisors for the

commissioning of the process equipment. All rotating equipment, instrumentation, and electrical equipment require preparation for operation. Piping is pressure tested and/or vacuum tested. The equipment is purged and made ready for startup by our advisory crew.

Test Run • The twenty-four hour test run confirms the

design of the process equipment. Our advisors advise the operating personnel about the proper operation of the equipment to achieve the intended results.

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Sample Modular Refinery Projects

• Indonesia, 6,000 BPD• Atmospheric Distillation

Unit• Vacuum Distillation Unit• Shipped in 10 months

after contact signing• Commissioned in 2009

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Sample Modular Refinery Projects

• Nigeria, 1,000 BPD

• Atmospheric Distillation Unit

• Shipped 9 Months after contract signing

• Installation in Progress

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• We are very proud of our association with SynChem Technologies, LLC, a Subsidiary of Prime Energy & Chemicals, LLC, and manufacturer of the Pulsor™ technology which provides effective, responsible solutions to Heavy Hydrocarbon problems in the global Oil and Gas industry. The Pulsor™ process utilizes proprietary hydrocarbon solvents that are 100% biodegradable, non-toxic, non-corrosive and refinery compatible. These solvents maximize production rates through the removal of paraffin wax and asphaltenes deposits. Their flash point is much higher than competing solvents, providing increased safety and lower transportation cost. They are effective in a wide range of climatic conditions.

• The Pulsor™ Series powerful suite of solvents is designed to solve the problems normally associated with organic deposition (wax and asphaltenes) from down hole activities to refinery operations, and to tackle the environmental and personnel safety challenges that confront today’s oil producers and refinery operators.

• Pulsor™ has been successfully applied in multiple-field applications to enhance production levels and to break down heavy Hydrocarbon compounds in tubular pipes, flow lines and other associated equipment. The products not only act many times faster than competitive solvents but with a greater retention value. These solvents have proven to continue breaking down Hydrocarbon deposits from upstream activities to pipelines and storage tank facilities.

• The Pulsor™ solvents are not only biodegradable, but they are also benign to the refining process, eliminating the need to remove the products prior to the refining process. The Pulsor™ Series Solvents are considered to be refinery friendly in every aspect.

Pulsor™

Solvent Wax Asphaltenes

PL-35 √√√

PL-50 √√ √

PL-65 √ √√

PL-95 √√√

Crude Oil Solvents PE&C

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Prime Energy & Chemical - Technologies

• Non-toxic, Biodegradable Solvents to allow heavy Crudes Oils to be extracted from new or old capped wells.

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Prime Energy & Chemical - Technologies

• Several actual older capped wells reactivated by our Solvents.

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Power Generation

• The main cost over the lifecycle of a Diesel engine or Combustion Turbine Generating Unit by far is the cost of fuel, which can be reduced by installing the generating equipment as close as possible to a Minirefinery to reduce the transportation cost of the fuel.

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Power Generation• The Diesel distillates and the Heavy Fuel Oil produced in a

modular Minirefinery can be used in electrical power generating plants in several configurations which we can provide on a Turn-Key installed basis.

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Power Generation• HFO medium speed Diesel engine generating units with HFO

filtering, heating and centrifuging treatment. These are typically in the 1 to 15 Megawatt range in simple cycle to produce electricity or in a cogeneration system to also produce hot water, process steam or steam for flash distillation desalination or absorption chilled water systems.

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Power Generation• Industrial Combustion Turbine Generating units rated 40 to 75 MW

use Diesel 2 or HFO with a filtering, heating and centrifuging system. Can be supplied in simple or combined cycle with a Heat Recovery Steam Generator feeding Steam Turbine Generating units to minimize the fuel consumption rate, or to a flash distillation desalination process or absorption chilled water system.

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Power Generation

• Diesel 2 can be used in high speed Diesel engine generating units from 500 KW to 3 MW for standby or peaking use.

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Power Generation• Diesel 2 or Kerosene (Diesel 1) can be used in Aeroderivative Turbine

Generating units from 3 to 100 MW or in Industrial Combustion Turbine Generating units from 40 to 200 MW. These Industrial Combustion Generating units can also be used in combined cycle to improve fuel efficiency.

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Contact Information

For any further information contact:KUAI Energy Systems3301 NE 183 Street, Suite 1205Aventura, Florida 33160, USATelephone: +1-954-608-1786E-mail: rarrondo@gmail.com cvillegas@kuaienergy.comWebsite: www.kuaienergy.com Skype: rpower2