Serving Oman with PrideAchieve Enhance Grow

Growth through Integration of

Downstream

Kamil Al-Shanfari – January 2017

Oman Oil Refineries and Petroleum Industries Company

Serving Oman with PrideAchieve Enhance Grow

Outline

Orpic Overview – Integration of Downstream

Growth Projects

Serving Oman with PrideAchieve Enhance Grow

Orpic Overview

74%

3,000

Serving Oman with PrideAchieve Enhance Grow

2016 - Orpic Downstream Value Chain

Gasoline

Fuels

LPG

Diesel

Jet Fuel

CrudeOil

Petrochemicals

Polypropylene

Paraxylene

Benzene

MAF Refinery - 1982

Sohar Refinery

Aromatics Plant- 2010

Polypropylene Plant

Imported Naphtha

Propylene

Naphtha

1982

2006

2010

Long Residue

Serving Oman with PrideAchieve Enhance Grow

The integration Story – Background

4 companies, 4 plants and 1600 people

Companies have separate boards, separate managements and have

different mandates

ORC, Mina Al Fahal, 1982 AOL, Sohar, 2010SRC, Sohar, 2006 OPP, Sohar, 2006

Serving Oman with PrideAchieve Enhance Grow

Outline

Orpic Overview – Integration of Downstream

Growth Projects

Serving Oman with PrideAchieve Enhance Grow

Orpic Business Overview

Serving Oman with PrideAchieve Enhance Grow

Growth Project

2017

Serving Oman with PrideAchieve Enhance Grow

Growth Projects

Three major projects will fuel Orpic’s transformationfrom a national oil refinery to an international integrated

refining and petrochemicals company:

SRIP MSPP LPIC

20

17

20

17

20

20

USD 2.7 Bn USD 300 Mn USD 6.4 Bn

Serving Oman with PrideAchieve Enhance Grow

Sohar Refinery Improvement Project - 2017

Serving Oman with PrideAchieve Enhance Grow

Sohar Refinery Improvement Project

Serving Oman with PrideAchieve Enhance Grow

Sohar Refinery Improvement Project

Serving Oman with PrideAchieve Enhance Grow

Sohar Refinery Improvement Project - 2017

Serving Oman with PrideAchieve Enhance Grow

Muscat Sohar Product Pipeline - 2017

Serving Oman with PrideAchieve Enhance Grow

Muscat Sohar Product Pipeline - 2017

Serving Oman with PrideAchieve Enhance Grow

Muscat Sohar Product Pipeline - 2017

Serving Oman with PrideAchieve Enhance Grow

Liwa Plastic Industrial Complex - 2020

Serving Oman with PrideAchieve Enhance Grow

Liwa Plastic Industrial Complex - 2020

Serving Oman with PrideAchieve Enhance Grow

Growth Projects: Increased Fuels and Plastics

Refined Products14000

12000

10000

8000

6000

4000

2000

0

Others

Fuels

Existing Post SRIP Post LPIC

Petchem Products2500

2000

1500

Plastics

Aromatics

1000

500

0

Existing Post SRIP Post LPIC

IntegrationEnhanced Refinery and Petrochemical

Pro

du

cti

on

kTA

Pro

du

cti

on

kTA

1359

245 350

982 926 1001

926 1001

982

11527 11265

7267

Serving Oman with PrideAchieve Enhance Grow

Fueling Growth Projects 2014-2020

Fixed Assets to growthree times while

Crude processing

increase by ~ 70%12.0

Job creation of over

1000 skilled positions10.0

3008.0

2506.0

2004.0 3500

3000

2500

2000

1500

1000

500

0

1502.0

1000.0

2014 2015 2016 2017 201850

Existing SRIP LPP MSPP0

2013 2014 2015 2016 2017 2020Capital Investments

Existing SRIP LPIC2013 2014 2015 2016 2017 2018

Crude (and equivalent) consumption Existing SRIP LPIC MSPP

Manpower Plan

inU

SD

bn

Cru

de

eq

uiv

ale

nt

kb

bl/d

ay

Nu

mb

er

of

em

plo

yees

Serving Oman with PrideAchieve Enhance Grow

Growth Projects : Increased Profitability

Profitability

conversion

set to grow in the future due to

and enhanced value addition.

deeper

Gross Margin per bbl25.0

20.0

15.0

Gross Margin - Petchem

Gross Margin - Refineries10.0

5.0

-

2016 2017 2020

US

D/ b

bl

Serving Oman with PrideAchieve Enhance Grow

CrudeOil

MAF Refinery - 1982

Sohar Refinery

Aromatics Plant 2010

Polypropylene Plant

2006

Imported Naphtha

Propylene

Naphtha

Long Residue

LPG

LPG

+

Dry Gas

Gasoline

Paraxylene

Benzene

Benzene

HDPE LLDPE

P

P

LLDEPHDPE

PP SR

IP 2

017

NGLs from Natural Gas

Steam Cracker

2020

GasolineFuels

LPG

Diesel Jet Fuel

2020 - Orpic Downstream Value Chain

Serving Oman with PrideAchieve Enhance Grow

Serving Oman with Pride

Thank You!

Oman Oil Refineries and Petroleum Industries Company