The Rompetrol GroupRefining Business Unit Looking into the future

Refining Business Unit: Looking into the future

CONTENTS

RoleRompetrol Rafinare – PetromidiaPetromidia Site

Current Status & AchievementsReasons for Investments

BackgroundPackageOutlooks

Refining Business Unit

Petromidia Refinery: Status Report

Petromidia Refinery: Investments

REFINING BUSINESS UNIT

We want to be the most efficient, effective and innovative refining system in South Central Europe

We have a responsibility towards the people, local communities and environment

WE ARE PART OF SOMETHING SPECIAL

Rompetrol Refining is the core business of TheRompetrol Group. We are processing the highestnetback crudes or feedstock available and producingvaluable products to be sold by other BUs, part of TRG.

WE FUNCTION AS A COMPLEX MACHINERYOur BU is comprised of three performance units;Petromidia, Vega and Petrochemicals.

WE HAVE CONTINUOUSLY GROWN AND IMPROVED OUR PERFORMANCEWe continue to improve our future by investing in thepresent.

WE STRIVE FOR EXCELLENCEWe are building high ethics and principles for ourbusiness.

Role

Rompetrol Rafinare - Petromidia

REFINING BUSINESS UNIT

PRODUCTS & CAPACITY

100.000 BPSD (5 million t/year). Based on crude oil & productsmarket conditions and analyses of financial indicator, refinery isoperated at 3.8-4.2 mln t/y.Produces: LPG, gasoline, jet, gasoil, fuel oil, coke, sulfur.

UNIQUE LOCATION

Petromidia is the only Romanian refinery located at the BlackSea shore thus having the advantage of being supplied directlythrough the oil terminal located in the Port of Midia.Fully integrated in environmental layout, with respect forhealthy air, water, soil.

Rompetrol Rafinare - Petromidia

REFINING BUSINESS UNIT

PERFORMANCEIt has the highest white products yield in the region (84%) and a Nelson Complexity Index of 8.3.Focuses continuously on:

• product quality • energy efficiency• technological loss• Technological development

EXCELLENT LOGISTICSHas its own port – Midia; for unloading crude oil throughbuoy and own facilities to expedite the refinery products withships through Jetty 9; access to the Danube-Black Sea Chanel.Refinery products are sold on domestic (60%) and externalmarkets: Georgia, Ukraine, Bulgaria, Turkey, Lebanon,Moldavia, Serbia, Greece, Egypt.

Petromidia Site

REFINING BUSINESS UNIT

The Petromidia site, as an integrated system, hosts several TRG companies:• Petromidia Rafinare – crude oil refining• Rompetrol Petrochemicals – petrochemical unit• Rominserv – general contractor for maintenance and capital projects• Rompetrol Quality Control (RQC) – control and analyze the quality of feedstock

& products• Midia Marine Terminal (MMT) – operator or berth facilities and oil tanks• Global Security Sistem (GSS) – handles security on the platform• Rompetrol Gas – handles LPG loading operations

With more than 2,000 employees + 7 companies from TRG + 10 external companies,Petromidia is a living giant at the heart of Constanta’s industrial sector.

PETROMIDIA REFINERY: STATUS REPORTCurrent Status and Achievements

Rompetrol Rafinare has developed interconnections for aperfect synergy with Petrochemicals and Vega refinery byincreasing value of unfinished products.

In 2006, a dedicated program was launched to upgrade andoptimize existing units in order to increase energyeffectiveness and profitability.

Since 2006, continuous dedication of the refinery personnel(supported by technical consulting companies) had adecisive contribution to:• energy efficiency (decreasing EII from 121 to 118)• technological losses (decreasing from 1.34% from total

production to 0.65%)• optimization of refining operations (implementing little or

no capital projects) As a result of this program, 90 millions USD were saved since

2006. By investing in people, Rompetrol Rafinare has created the

tools for a sustained performance increase in the future.

Europe Diesel Demand (kb/d), estimated in 2005

2900

3100

3300

3500

3700

3900

4100

4300

2002 2003 2004 2005 2006Diesel Linear (Diesel)

In 2002, we foresaw a general tendency for increased diesel consumption in Europe. Furthermore, fuel specifications became more and more restrictive, moving towards

the Euro 5 carbon emissions standard. A general trend in the refining industry was to convert heavier and sour crude into

European fuels. This trend was transformed into reality by Rompetrol and other major players in the

refining sector by investing in deeper conversion units and cleaner technologies. In 2005, Rompetrol Rafinare began this ample investment program.

PETROMIDIA REFINERY: STATUS REPORTReasons for Investments

PETROMIDIA REFINERY: INVESTMENTSBackground

Major drivers for investments in Petromidia refinery:• Environmental protection requirements• Fuels quality moving towards Euro 5 standard• Energy efficiency

Rompetrol Rafinare had a continuous investment increasesince KMG is shareholder:• 2008: 93.4 mil USD• 2009: 100.8 mil USD• 2010: 131.8 mil USD• 2011: 216.2 mil USD* (*estimated)

Major investments 2008 – present• “Willacy” unit for processing of historical oil residues

accumulated since refinery start-up• Gasoline tanks modernization for compliance with Volatile

Organic Compounds directive• Jetty 9 in Midia Port modernization and 350% increase in transit

capacity • Open new marine oil terminal (Buoy),to decrease operational

costs of petroleum logistics• Turnaround of the Rompetrol Rafinare Units

PETROMIDIA REFINERY: INVESTMENTSPackage

As part of major projects, Rompetrol started a comprehensive program inorder to:

• Align fuel production with Romanian and European legal requirementsregarding fuel standards, namely Euro 5 (sulfur content of 10 mg/Kg)

• Operate the refinery in accordance with the Romanian and Europeanenvironmental legislation

• Increase the sour crude processing capacity from 3.9 mil t/y to 5 mil t/y• Increase fuel selectivity to diesel production from 37% to 45% total yield• Increase the safety level and mechanical availability of the refinery

PETROMIDIA REFINERY: INVESTMENTSPackage

The investment program contains nine major projects:Already completed in 2010:

• Fluid Catalytic Cracking Unit revamping• Claus Unit revamping

To be operated in Q4 2011:• Amine Unit revamping• Upgrade from VGO to DHDS unit• New Air Separation Unit (ASU)• New Flare system

To be completed in Q1, 2012:• New Mild Hydrocracking Unit (MHC)• New Hydrogen Unit• New Sulfur Recover unit

Since 2005, Rompetrol Rafinare invested $234 million in thisprogram. Total estimated value upon completion is $377million.

PETROMIDIA REFINERY: INVESTMENTSPackage

These projects use the latest technology available andtogether with the equipments are high reliable and presentminimum safety risks in operation:• MHC technology minimizes investment cost by increasing

catalysis volumes;• MHC reactors use special Vanadium metal alloys to

minimize weight;• Tail gas technology minimizes emissions through

additional catalyst treatment;• Fully-automated operation using online analyzers.

General contractor is Rominserv, a company of The RompetrolGroup.

Major licensing and engineering companies national andinternational: IPIP (Romania), UOP (England), Axens (France),Technip (Holland), Haldor Topsoe (Denmark), Le Gas Integral(France).

PETROMIDIA REFINERY: INVESTMENTSPackage

PETROMIDIA REFINERY: INVESTMENTSPackage

Updated refinery will bring an increase in Rompetrol brand value throughcontinuous compliance with European fuel quality standards and latest legislativerequirements in terms of environmental protection.

This package will allow Rompetrol to benefit from all advantages of processing cheaphigh-sulfur crude and produce 100%-compliant Euro5 fuels.

More than 2,000 employers are involved in construction works. Once operational,these units will create new jobs.

The program will keep in operation one of the four remaining Romanian refineries. KMG will consolidate its position in the European refining market and will optimize

its processing chain, from exploration to refill stations.

PETROMIDIA REFINERY: INVESTMENTSOutlooks

Rompetrol will continue investments even as new units areput in operation.

Modernization of Delayed Coker Unit is scheduled to becompleted by the end of 2012, as engagement toenvironmental authorities and for decreasing technologicallosses.

Aligning emissions with legal requirements by the end of2012 is a major project in progress for Rompetrol.

Rompetrol Rafinare, as Romanian brand, will continue toimprove its performance and will aim for a position amongthe top 25 refineries in Europe.

Thank you!