Sinopec Engineering Presentation

www.SINOPECEngineering.com

All rights reserved © 2009 SINOPEC2 All rights reserved © 2008, SINOPEC

Introduction of SINOPEC Engineering

Outline of SINOPEC Engineering

Engineering and R&D Strength

Procurement Strength

Construction Strength

Project Execution Summary

Ongoing Project Summary


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.


All rights reserved © 2009 SINOPEC

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.



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 –SNEISINOPEC Engineering –FCCSINOPEC Engineering –SFCCSINOPEC Engineering -TCC


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


All rights reserved © 2009 SINOPEC7



Main Fields of Business:

RefineryPetrochemical complexFertilizer PlantsPharmaceutical PlantsLNG plantLong-distance pipeline Municipal facilities



Scope of Services:

Project Concept

Master Planning

Technology transfer & licensing

Feasibility study

Environmental Impact Assessment

Geo-technical Engineering & Engineering Surveying

Process Design Package

Basic & Detailed Engineering

Procurement

Construction & Construction Supervision

Commissioning

Manufacturing and Fabrication

Training

Maintenance and Overhaul



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.

General

Human Resources:



191122

695

549 1285

309 427

487

Process

Equipment &MechanicalPiping

Electrical &InstrumentationCivil,Structural &ArchitecturalHealth,Safety &EnvironmentalUtility

Draft Man

Total 4065

Engineering Strength:



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, Exxon-

Mobile and Saudi Aramco) with 800,000t/a ethylene complex and 1.2 million tons per year refinery has

been finished by SINOPEC Engineering in 2009.

0

500

1000

1500

2000

2500

Project Month

Tota

l Con

stru

ctio

n M

anpo

wer

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% C

ompl

ete

Manpower 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

% Compltete 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% 99.4% 100.0%

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



3 million t/a catalytic cracker

3.1 million t/a Residual Hydro-finishing

1.5 million t/acatalytic reformer

2 million t/a hydro-cracker

4.1 million t/a diesel hydro-finishing

Maximum capacity Maximum capacity of single unitof single unit

12 million t/a CDU & VDU

450，000 t/a PE 1 million t/a Ethylene

300，000 t/a PP

15 Billion m3/a gas purification

450,000 t/a Ammonia

850，000 t/aMethanol

260，000 t/a AN

2000 t/a Coal Gasification



Engineering

Procurement Construction

Process DB

Engineering DB 3D Model DB

e-Doc.Management

DOCUMENTUM 4i,LOTUS NOTES

PDS 3D, ISOGEN, SPREVIEW,PDMS,REVIEW,

ISketch, STAAD PRO2000

SPOOLGEN, CQCSP3 , STAT, PMCV, PMCF,ACCPAC, Expedition,

MARIAN, PMCS

VANTAGE PE, INTOOLS, CAESAR II,ANSYS, INSTRUCALC, FE/PIPE, Pvelite ,

TANK , EDSA

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

Procurement Management Project Management

Material Control & Construction Management

Integrated IT system



Hydrocracking Unit For Qingdao Refinery

200,000 t/a Polypropylene Unit In Hainan Refinery

ModelModel

Examples For 3 D Design



No. Project DescriptionProject Scale(10 thousand

per year)Technology/Licensor Numbers of

Project Service Scope

1 300-1200 SINOPEC 37 EPC






CDU/ VDU

Catalytic Cracking

Delayed Coking

Hydrofining

Hydro Cracking

Catalytic Reforming

Major Technology Applications in The Last Ten Years



No. Project DescriptionProject Scale(10 thousand

per year)Technology/Licensor Numbers of

Project Service Scope

1 60-100 Stone Webster Lummus--SINOPEC 8 EPC

2 20-60 Basell BP InnoveneSINOPEC 10 EPC

3 8-30 Dow Chemical SINOPEC 6 EPC

4 60-100BP-AMOCO、INVISTA

、Mitsubishi、EASTMAN SINOPEC

5 EPC

5acetic acid：

35 Methanol：85

BPShell 2 EPC

6 30~45 KBR 2 EPC

Ethylene

Polyolefin

Synthetic Rubber

Synthetic Fiber

C1 Chemical

Ammonia


Major Technology Applications in The Last Ten Years


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.


Technology Research & Development


The Organization Mode of Key Process Technologies Commercialization



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.

General



3542

60

69331938

96Procurement managerProcurement coordinatorSenior buyerBuyerPurchasing clerkTraffic clerkExpediterOthers

Total 392



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

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

MRR's

OS&D's

PO's

PO'sMRR'sMIR’s

MLCL E&PI MSCM SITE•BOM by WBS,Version•Req Template

•MRR’s•MIR’s•OS&D’s•MRS’s

BOMS

MTO

3D 3D PlantPlantDesignDesignModelModel

Sinopec Sinopec Eng. Eng. FinanceFinanceSystemSystem

MA

RIA

N

Matl Res.

ISO’s

Sinopec Eng.Reports

Sinopec Eng.Reports

Sinopec Eng.Reports

Other system/ manual take off


MARIAN Application Program


Confirmation byRecords Review

WitnessInspection

Requestfor

Inspection

Applicationfor

InspectionSpecification

Requisition

Quality Requirements Notice to Client

Approval ofVendor’s QCDocuments

InspectionRelease

CertificateResident

Inspection

Inspection

MDR Review& Approval

Finding NonConformance

CorrectiveAction byVendor

Inspection

InspectorsAssignment


Inspection-Sequence and Execution


ReceivingCargo

ReadinessNotice

MonitoringFabricationProgress

IssuingRelease for

ShippingPreparation

ExpeditingShipping

Preparation

AttendingKick-offMeeting

ExpeditingVendor’s

Documents

MonitoringMaterial

SubordersStatus

Specification

P.O.Copy

Requisition

IssuingInspection

ReleaseCertificate

Inspection

Completed

ExpeditingAs-Built Document

Submission

Shipment

Not

Com

plet

ed


Expediting-TYPICAL ACTIVITIES



Packing and Shipping

Purchase Order

Readyfor

ShipmentExport

PackingExport

Clearance

Loadingin

Ship

UnloadingfromShip

ImportCustomsClearance

InlandTransport’

to Site

Unloadingat

Plant Site

SpaceBooking

ForwardingContract

Manufacturing

LogisticPlanning


7.879.14

13.0314.52

16.97

0

2

4

6

8

10

12

14

16

18

2002 2003 2004 2005 2006

Total Purchase Value(Billion US$)

Strong procurement and supply capability for oil & petrochemical relatedequipment and materials

20

2007

22 20.41




Overseas Procurement Subsidiaries


YanshanTianjinQiluJiangsuJinlingYizhengNanhuaYangziJinshanEast ShanghaiGaoqiaoZhenhaiFujianGuangzhouMaomingZhongnanChongqing


Domestic Offices


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 : Total: RMB 131.5 billion

Import/export: USD 3.23 billion

E-Procurement: RMB 113.0 billion

2007 : Total: 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



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 ShopFor Pipe Spool

Pre-fabrication ShopFor 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



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.




Over Size Equipment Handling


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.

General

36



2473

497

639

757 2114

3225

751740805

Construction Managers

Construction Supervisors

Welders

Plumbers

Riveters

Locksmithes

Cranemen

Electricians/Instrumentstaffs Others

Total 12001


Construction Manpower


Technical Advantageof Project Execution

Construction Of Large Storage Tank

Installation Of Large Machinery Train

Lifting And TransportationOf Large Equipments

Shop Pre-fabricationFor Pipe And Structural Steel

Equipment Manufacturing

Construction Experience In Low and High Te

mperature Region


Construction Strengths


Crane 200-1600Tons 19

Auto Welding Machine 1000

Metal Machining Equipment 460

Transportation Facilities 210

Testing & Inspection Equipment 1260


Construction Equipment Tools


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

SINOPEC Own the1250T Crane

SINOPEC Own the 1100t crane

SINOPEC Own 6*500t crane SINOPEC Own the 4*1200t trailer

SINOPEC Own 8*500t trailer

10*726t reactor

“A” Type frame lifting Flare

5200mm x 120m Reactor from harbor to job site


Heavy Lifting


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

Safety First

Hoisting Simulating

Lifting software



Installation of Large Compressor

Assemblage of Large Compressor

Tuning of Large Compressor



Tank Farm



Certification of Safety Performance



Safety Performance Award



On Schedule Award



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.

General



185360

420

450

320 180195

410

380

ManagementProject ManagerSHEMS&WelfareQA/QC (Sub)ContractingAdministrativeEstimatingCost ControllersScheduling

Total 2900

Project Execution Strength



•PREMERVIA•GPLAN•PROJECT

Document ControlProject Management Material Control

•MARIAN•PMCS

3-D Design

•PDS•PDMS•SP3D

Process Simulation•PROII•ASPEN•HTRI•TSWEET

•DOCUMENTUM•SHAREPOINT•WISE

Engineering

Application Software

Project Management

Project Management and Engineering Software



Project management

Project Goals

Achievement of Project Targets

Resources

ManpowerEquipment/MachineryMaterial

Integration/Optimization of Objectives

Effective use of management resources

Money/fundTechnology/ MethodsInformation

Quality:：high-quality product

Safety ：zero lost time incidents

Schedule：On-time

Costs ：within budgets

Project Management Objective Definition



Defined Scope Of Work

Establish A Control Baseline

Measures To Be Taken

Defect

CompletionTrace Check

Trend Analysis

Change Log Management

Define MeasureMethod & Std.

Project Control Cycle



Contract

Costs

Schedule

MaterialsControl

ProjectFinance

Procurement

Project control based on Engineering Database



Fujian 10MTA Refinery and 800,000TA Ethylene Project

JV by SINOPEC/ Aramco/Exxon

Achievement



JV by SINOPEC/bpShanghai SECCO 900,000TA Ethylene Project

Achievement



YBPC600,000TA Ethylene Project JV by SINOPEC/BASF

Achievement



CSPC 800,000TA Ethylene Project

JV by CNOOC/SHELL

Achievement



Zhenhai Refinery (Video)Achievement



Oil Receiving Terminal in Caspian Sea, Iran

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

Achievement



Domestic Major Achievements



NO

DESCRIPTION WORK SCOPE CONTRACT TYPE APPROXIMATE CONTRACT VALUE

(US $)

CONTRACT DURATION

COUNTRY

1 YANSAB Polyolefin Complex Project EPC Consortium Partner, Lump Sum 750 Million 2005-2008 Saudi Arabia

2 Rabigh Development Project C Subcontractor, Lump Sum 194 Million 2006-2008 Saudi Arabia

3 Hawiyah Gas Plant Expansion Project C Subcontractor, Lump Sum 52 Million 2006-2008 Saudi Arabia

4 SABIC EO/EG Project CM+C Subcontractor, Lump Sum 96 Million 2007-2009 Saudi Arabia

5 Yanbu BBTX Project C Subcontractor, Lump Sum 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 Main Contractor, Lump Sum 140 Million 2006-2009 Iran

9 CROS (Caspian-sea Republic Oil Swap) Project

EPC Main Contractor, Lump Sum 140 Million 2002-2003 Iran

10 Khartoum Refinery Expansion to 5,000,000 t/y E Subcontractor, Lump Sum 40 Million 2000-2003 Sudan

11 2,500,000 t/y Khartoum Refinery Project E Subcontractor, Lump Sum 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 E, P, C, Unit Price Contract 140 Million 1992-1994 Kuwait

15 Shuaiba Refinery Tankage Project EPC Main Contractor, Lump Sum 9.97 Million 1997-1998 Kuwait

Overseas Achievements



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.

General

Financing Ability


SINOPEC Engineering has done refinery and petrochemical projects in Saudi

Arabia. It is partial example for EPC execution.

General

Partial Project Summary


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





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 Schedule: 2006.10.31 to 2008.6.30, 20 months





Gas Plant Site Pictures



Heavy lifting

Shop Fabricating



Owner： YANSAB SABIC

EPC Contractor：Stone Webster


Contract Schedule: 2008.1.16 to 2008.9.30, 8.5 months

Contract value：39.6M USD


SABIC YANSAB BBTX Project



BBTX Project Site Pictures



JUBAIL:1800

HAWIYAH:2200

YANBU:3000

PETRORABIGH:3200

SINOPEC Engineering Camps in Saudi Arabia



Camps in Saudi Arabia



• 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

•One Project One Team, Team up with both International Engineering

and Local Companies

Concluded


Concluded