National Iranian Oil Refining & Distribution Company (NIORDC)

Presented by: A.Kazemi

(Deputy minister & NIORDC President) NIORDC

NIORDC, the state owned oil company of IRI is a

downstream integrated company.

We have operation in entire crude oil transport ,

storage, refining , product distribution - storage,

and service stations.

NIORDC

9 Refineries Crude oil : 3861 Km

Pipelines Products : 9307 Km

Service stations Storage: 3297 CNG Refueling Stations : 2229 We are among the 4 top companies that have the highest numbers of CNG refueling stations. NIORDC NIORDC NIORDC NIORDC

Ministry of Petroleum

N.I.O.C N.I.O.R.D.C N.P.C N.I.G.C Since 1992 NIORDC

National Iranian Oil Refining & Distribution Company

National Iranian Oil Refining National Iranian National Iranian Oil Products Industries Oil Pipeline and Oil Engineering Distribution Development Telecommunication and Construction

Bandar Abbas Esfahan Arak Abadan

Lavan Kermanshah Shiraz Tehran Tabriz

Persian Gulf Star (On going project) NIORDC National Iranian Oil Products Distribution Company (NIOPDC)

 The primary mission of NIORDC is to ensure that hydrocarbon system capacities and inventories are well- managed to meet customer demands and company profitability. NIORDC National Iranian Oil Products Distribution Company (NIOPDC) National Iranian Oil Products Distribution Company NIORDC (NIOPDC)

 92 petroleum products storage depots  3,297 liquid fuel stations  1809 CNG fuel stations  49 aviation fuel stations  12,000 oil tankers, trucks and LPG carriers  80 mm bbl of storage facilities for the main refined products NIORDC National Iranian Oil Products Distribution Company (NIOPDC)

Capabilities

 Planning and outlining strategies of petroleum product distribution  Management and distribution of petroleum products  Monitoring the distribution operations  Maintenance of facilities  Implementation of related projects  Implementation and supervision of Smart Card Center for Gasoline and Gasoil Distribution National Iranian Oil Engineering and NIORDC Construction Company (NIOEC)

NIOEC, as the one of the subsidiaries of NIORDC, is responsible for the implementation of downstream projects, including the construction of refineries and upgrading projects.

Major Experiences of NIOEC A) Refining

 Construction of Imam Khomeini refinery of Shazand (Arak refinery), Bandar Abbas refinery, oil plant in Esfahan refinery  Debottlenecking of Bandar Abbas refinery  Modernization and upgrading of Abadan refinery (phase 1)  Feasibility study for Shahryar refinery  Process optimization and product quality improvement of Tehran refinery National Iranian Oil Engineering and NIORDC Construction Company (NIOEC)

B) Pipelines and Utilities

 Installation of more than 14,500 km of crude oil and refined product pipelines  Construction of more than 170 pump stations  Countrywide construction of more than 100 storage tanks and fuel storage facilities for petroleum products Iranian Oil Pipelines and

NIORDC Telecommunications Company (IOPTC)

IOPTC is a major subsidiary company of NIORDC, which securely transfers crude oil from production fields to the refineries with 186 pump stations, pressure reduction and oil transport installations. Also IOPTC is responsible for receiving the petroleum products from refineries and import terminals, transferring the refined or imported products to the storage depots throughout the country, supplying fuel for some power plants and airports, supplying a part of petrochemical plants’ feedstock and generally controlling a network with the transfer capacity of 2.2 mm bbl per day, using 14,000 km of pipelines and 256 telecommunication stations.

Pipeline Management

This division performs its tasks through 12 operation zones Iranian Oil Pipelines and

NIORDC Telecommunications Company (IOPTC)

Pipeline management is responsible for controlling a network which transfers crude oil and petroleum products, supplies the refineries, transfers the products of refineries, and transfers the imported products to the assigned storage tanks, through the follow ing facilities:

 14,000 km of pipelines, with 6 to 36 inches of diameter  186 pump stations, pressure reduction and oil transport installations  320 cathodic protection stations  1,350,000 HP Power Installed in pump stations and major facilities  375 sets of main pressure enhancement pumps  163 sets of turbine  248 sets of electromotor  24 sets of turbo generator  3 sets of variable speed electromotor  42 storage tanks for crude oil with the capacity of 1.07 billion liters  198 storage tanks for petroleum products with the capacity of 950 million liters  1,150 heavy and semi -heavy vehicles  990 light vehicles  161 substations, 20 and 33 kV w ith 180 M W pow er  17 substations, 63 kV Iranian Oil Pipelines and

NIORDC Telecommunications Company (IOPTC)

Capabilities  Construction and commissioning of oil transportation centers, pipelines and other facilities  Operation of oil transportation centers Telecommunications Management This division of IOPTC is responsible to ensure smooth industrial communication of all the parts and aspects of this industry including long-distance, local, audio, visual, digital, cyber communication of pipeline system with a safety factor of 99.99%. Iranian Oil Pipelines and

NIORDC Telecommunications Company (IOPTC)

 It also interconnects the subsidiaries of NIORDC and some of other affiliates of the Ministry of Petroleum, using the following facilities:

 Radio network including 256 radio stations with 200,000 km E 1 capacit y  Telephone network including 190 telephone centers with 54,000 numbers and various capacities  4,000 km of subterranean and internal cable network in various couples  Management phone network (K -system) including 160 sets with the capacity of 6,000 ports  IP network (MPLS VPN) for secure connection in WAN network  VHF mobile phone network along pipelines and in the refineries with 100,000 km2 surface coverag e  Integrated management K-system in WAN network  Industrial and non-industrial vocal systems for fire alarm, fire fighting, and operation  100 satellite terminals for temporary needs, emergencies and critical situations  1,400 km of 16-line optical fiber for supporting telecommunication and data transferring increasing needs, and other facilities like distance education, telemedicine, video conferencing (SCADA), internet connections  WAN and LAN networks in 165 stations Iranian Oil Pipelines and

NIORDC Telecommunications Company (IOPTC)

Capabilities

 Designing, installation and commissioning of microwave radio networks and VHF  Designing, installation and commissioning of IP PBX switch network in the oil industry  Designing, installation and commissioning of vocal systems, specially for industrial application  Repairing, maintenance and utilization of optic fiber, radio and telephone networks  Examining the FULL IP network country -wide Oil Refining Industries Development Company NIORDC (ORIDC)

Oil Refining Industries Development Company (ORIDC) was established to act on behalf of NIORDC and as a partner in investments and joint ventures in refinery projects domestically and overseas. ORIDC is entitled to negotiate and assess the various initiatives introduced for joint investment in refining and other relevant projects of this industry. To this end, ORIDC so far has developed a number of joint venture refinery projects, which is shown below.

ORIDC Activity Scope via investment

Project Name

Domestic Bahman Geno Refinery Projects Khuzestan Refinery Pars Refinery Overseas Alfruqlus Refinery in Syria Projects NIORDC Tabriz 110 Length (km)

Existing 3831 Tehran 250 Future Plans 6147

Arak Kermanshah 250 21

Esfahan 375

Existing Crude Pipeline Abadan Shiraz Planned Crude Pipeline 390 58 Existing Condensate PlannedPipeline Condensate Pipeline

Bandar – Abbas 320 Lavan 50 NIORDC

Length (km)

Existing 9307 Future Plans 11171

Existing Product Pipeline Planned Product Pipeline Growth of Refining Capacity

Existing Capacity (1777 KBPSD) 2000 Lavan Bandar Abbas Refinery Project 1800 Esfahan Refinery (2011) Tabriz Refinery (1997) 1600 Refinery (1979)

1977 1400 Lavan The War Refinery Bandar Abbas & Arak Refinery 1200 Effects (1981- (1977) 1989) Revamp (2010)

1000 Tehran Refinery 800 (1968) Arak

Refinery Refining Capacity ) KBPSD Capacity ( Refining 600 Abadan (1993) Refinery 400 (1912) Shiraz Kermanshah Refinery Refinery (1973) 200 (1922) 0

Year Oil Refining Companies NIORDC

Refining Companies Bandar Imam Kermans Abadan Esfahan Khomeini Lavan Tehran Shiraz Tabriz Abbas hah Shazand

Start up Date 1912 1997 1979 1993 1971 1976 1969 1973 1978

Capacity (bpd) 390,000 320,000 375,000 250,000 21,000 50,000 250,000 58,000 110,000

API 25.78 30.21 33.00 31.42 37.48 33.96 32.17 28.50 32.24 Feedstock

S 1.52 1.90 1.10 1.71 1.47 1.23 1.84 1.30 1.60

40% Private Private 40% Private Private Private Private Private Ownership NIORDC sector sector NIORDC sector sector sector sector sector Process Units NIORDC

Refining Companies Bandar Imam Abadan Esfahan Khomeini Kermanshah Lavan Tehran Shiraz Tabriz Abbas Shazand Atmospheric Distillation √ √ √ √ √ √ √ √ √ Vacuum Distillation √ √ √ √ - √ √ √ √ Visbreaker √ √ √ √ - - √ √ √ LPG Recovery √ √ √ √ √ √ √ √ √ Alkylation √ ------Isomerization √ - √ √ - √ √ - - Fluid Catalytic Cracking √ ------Catalytic Reforming unit(SR/CCR) √SR √CCR √SR-CCR √CCR √ √ √ √ √SR-CCR Propylene Recovery √ - - √ - - - - - Cracked Gasoline Hydrotreater √ - - √ - √ √ - - Naphtha Hydrotreater √ √ √ √ √ √ √ √ √ Kerosene Hydrotreater - √ - √ √ √ √ - √

H2 Production - √ √ √ - - √ √ √ Tail Gas Treater - - - √ - - √ - - Hydrocracker - √ √ √ - - √ √ √ Sulfur Recovery √ √ √ √ - - √ √ √ Residue Fluid Catalytic Cracking (RFCC) - - - √ - - - - - Reduced Crude Desulfurization (RCD) - - - √ - - - - - N-Pentane Production Plant - - - - √ - - - - Lube cut Fractionation Plant ------√ - - Kerosene Treater ------√ - Benzene Extraction ------√ Related units and Utilities √ √ √ √ √ √ √ √ √

Existing Status

Refinery Capacities

NIORDC 20 Top capacities Countries in the World (2013)

20000

18000 17818 WORLD= 94929

16000

14000

12598

12000

10000

8000

Thousand Thousand Barrels Per Day 6027 6000 11

4319 4123 4000 2887 2522 2093 2062 2061 1970 1965 1606 2000 1537 1526 1520 1395 1353 1274 1267

0

Resources: BP NIORDC 20 Top Catalytic Cracking Capacities Countries in the World (2012) 7000

WORLD= 14956

6000 5910

Number of countries in the world whih Catalytic Cracking units = 67

5000

Iran= 45 Rank=47 4000

3000 Thousand Barrels Per Cal Day 2000

987 1000 588 531 505 482 445 381 349 347 331 322 314 235 232 218 191 142 141 134 0

Resources: EIA NIORDC 20 Top Thermal Cracking Capacity Countries in the World (2012) 3000

WORLD= 6328

2501 2500 Number of countries in the world

whith Thermal Cracking units = 58

2000

1500

1000 Thousand Thousand Barrels Per Cal Day 4

500 448 383 291 247 204 149 147 138 121 107 97 93 91 80 67 66 65 60 60 0

Resources: EIA NIORDC 20Top Output of Motor Gasoline Countries in the World(2010)

10000

9059 9000

WORLD= 8000 22299

7000 Number of country in the world that produce Motor Gasoline= 106 6000

5000

4000

3000 9 2000 1720

1012 840 1000 719 611 499 466 454 438 408 399 376 317 306 299 289 231 224 186 0

Resources: EIA NIORDC 20 Top Output of Jet Fuel Countries in the World (2010) 1600

WORLD= 5144 1418 1400

Number of countries in the world

1200 that produce Jet Fuel= 98

1000 = 28 Rank=35

800

600 Thousand Thousand Barrels Per Day

400 290 261 242 239 208 181 200 136 122 105 102 101 94 92 84 83 80 76 71 63

0

Resources: EIA NIORDC 20 Top Output of Kerosene Countries in the World (2010) 400

WORLD= 1584

350 340 Japan Number of country in the world that India produce Kerosene = 69 300 China

Kuwait

Spain 250 Korea, South Saudi Arabia 200 Iran United Kingdom 163 153 8 Indonesia 150 Iraq 125 Thousand Thousand Barrels Per Day 117 109 United States 99 97 100 Singapore Cote dIvoire (IvoryCoast) 58 55 Canada 50 Nigeria 25 19 14 13 13 12 12 12 10 10 Italy 0 IsraelP.F.A Kazakhstan Malaysia

Resources: EIA NIORDC 20 Top Output of Distillate Fuel Oil Countries in the World (2010) 4500 WORLD= 25446 4223.3

4000 Number of countries in the world that United States produce Distillate Fuel Oil = 109 China 3500 India Russia 3052

Japan 3000 Germany Italy 2500 Korea, South Brazil 2000 Saudi Arabia

1607.9 Canada 1431.2 France Thousand Thousand Barrels Per Day 1500 13 Iran 1020.2 United Kingdom 1000 918.1 809.3 Spain 744 711.7 633.4 618.3 616.3 572 Netherlands 510 468 435.7 500 401.9 360.5 Thailand 330.5 299.5 Mexico Singapore 0 Indonesia

Resources: EIA NIORDC 20 Top Output of Residual Fuel Oil Countries in the World (2010) 1400

WORLD= 9805 1238 1200

Number of countries in the world that produce Residual Fuel Oil = 109

1000

800 3

585 600

481

Thousand Thousand Barrels Per Day 445 428 389 388 400 341 323 298 272 213 213 197 191 173 169 200 163 159 150

0

Resources: EIA NIORDC 20 Top Output of Liquefied Petroleum Gases Countries in the World (2010) 700 662 659 WORLD= 15664

600

Number of countries in the world that produce Liquefied Petroleum Gases In crude refineries = 104 500

440

400

300

245 Thousand Thousand Barrels Per Day

200 14 143 139

101 100 89 84 71 69 67 59 57 56 46 46 45 45 34

0

Resources: EIA Products Percent World Shares NIORDC

production 1000 tones Liquefied Motor Aviation Jet Naphhta Diesel Petroleum Gasoline Gasoline Kerosene

world 8% 3% 27% 0.05% 8% 39%

Asia excluding 12% 3% 18% 0.14% 9% 45% China None-OECD 10% 4% 20% 0.06% 6% 40% total

Middle East 11% 2% 16% 0.003% 8% 32%

OECD Total 5% 3% 34% 0.046% 9% 38%

Iran - 4.2% 24.1% 0.01% 4.3% 39.5% Future Status

Iranian Oil

Refineries NIORDC Iranian Oil Refineries

Bandar Tabriz Isfahan Arak Kermanshah Tehran Lavan Shiraz Abadan Overall Aabbas

Refinery Crude -capacities Oil & Condensate 113 375 250 21 245 60 60 330 390 1844 )1000barrel/day(

Scheme Residue Hydro Hydro Cracking Cracking Cracking Cracking Cracking Cracking - Refinery Cracking skimming skimming

LPG % 3.1 4.2 7.9 2.9 4.6 0.7 3.5 3.2 2.9 4.2

Gasoline % 21.8 23.8 39.1 17.8 21 29.2 24.9 19.3 19.8 24.1

Jet/Ker% 7 3.7 2.4 14.3 6.4 0 3 4.8 3.9 4.3

gas oil% 40.6 44.4 34.1 27.4 43.5 40.2 44.2 40.5 34.9 39.5

Fuel% 27.5 24 16.5 37.6 24.4 29.8 24.4 32.2 38.4 27.9 Nelson 6.25 6.95 9.38 4.04 6.4 5.72 5.47 3.97 3.64 - Complexity Index NIORDC Reasons of losses in Iranian Oil Refinary

 Production of heavy product (low-value) such as

fuel oil (Old Configuration)

 Economy of scale (Low Capacity)

 High energy Consumption in Oil Refineries

NIORDC Useful Strategies For Overcoming The Problems

 Completion And Implementation Of Upgrading, Optimization And high quality fuel production units In Existing Refineries.

 optimizing the refining process operations, Improving energy efficiency

 Construction of down stream units.

 Reduce Operation And Transportation Costs . NIORDC

1. Expansion & Upgrading Of Existing Refineries

2. Construction Of New Refineries

3. Building Of New Pipeline

4. Expansion Of Oil Storage

NIORDC Clean Fuel &Optimization / Upgrading Projects

The main N.I.O.R.D.C. goals :

Maximization of Refineries Profit Environmental friendly and Compliance with requirements

THUS

The main Objectives will be: Establish treatment plants  Establish Deep Residue Conversion plants For improving quantitative & qualitative specifications of refinery products through revamping refinery's configurations. NIORDC Clean Fuel &Optimization / Upgrading Projects

Clean Fuel Projects  Abadan oil refining Company : CCR , Isomerization and gasoil/Kerosene hydrotreating Units  Tehran oil refining Company : Isomerization and gasoil/kerosene hydrotreating Units  Bandar Abbas oil refining Company : CCR , Isomerization and gasoil hydrotreating Units  Tabriz oil refining Company : CCR and Benzene Extraction Units  Esfahan oil refining Company : Isomerization and CCR , gasoil/kerosene hydrotreating Units  Lavan oil refining Company : CCR , Isomerization and gasoil hydrotreating Units Residue Upgrading and Optimization  Imam Khomeini oil refining Company : Throughput increase , products quality improvement and Residue Conversion  Abadan oil refining Company : FCC Complex Plant ,Hydrocarcker, Throughput increase, Expansion and capacity stabilization (including the implementation of storage tanks)  Esfahan oil refining Company :Process expansion and optimization , RFCC  Lavan oil refining Company : Throughput increase

Abadan Oil Refining Company (AORC) NIORDC AORC Clean Fuel & Residue Upgrading and Optimization Projects

No. Unit Capacity License a. In service 1 FCCU 45000 B/D UOP 2 ALKYLATION 12000 B/D STATT CO 3 ISOMERIZATION 10000 B/D AXENS 4 SULFREX 10000 B/D AXENS 5 GAS AMINE TREATING 330 T/D 6 SARP 267 T/D SIMON CARVES 7 SRU 80 T/D SHELL 8 GPTU 25666 B/D AXENS 9 Propylene Recovery unit 330 T/D

b. In Future No. Unit Capacity 1 CDU 210000 2 VDU 110000 3 LPG RECOVERY1 713T/D 4 LPG RECOVERY2 679T/D 5 NHT 71500 6 CCR 51700 7 KHT 45000 8 GHT 90000 9 HYDROCRACKER 42000 10 ISOMERIZATION 20000 11 H2 PLANT 75MMSCFD 12 SWS 24000T/D 13 SRU 460T/D NIORDC AORC Products Before/after the Projects (EURO 4)

Product Capacity(bbl/day) Before Increase/Decrease After LPG 11951 9435 21386 Gasoline 57866 24530 82396 Kerosene 18240 0 18240 Gasoil 128312 -2516 125796 Fuel Oil 132715 16982 115732

In Future Product Increase/Decrease (bbl/day) LPG 9763 Gasoline 101235 Kerosene 45293 Gasoil(10ppm) 107036 Fuel Oil(180cst) 88558 Propylene 3278 NIORDC Abadan Oil Refining Company(AORC)

Existing Production Units Atmospheric Distillation, Vacuum Distillation, Visbreaker, LPG Recovery, Alkylation, Isomerization, Fluid Catalytic Cracking (FCC), Catalytic Reformer (CRU), Propylene Recovery, Gasoline Treating, Naphtha Hydrotreater, Sulfur Recovery and related utilities

Nelson Complex GROSS MARGIN Refinery Capacity Nelson Complex Index Index ($/bbl)2014-2015 (bbl/day) 2014-2015 Design Actual ABADAN Refinery 0.7 384000 3.64 3.38 Esfahan Oil Refining Company(EORC) Clean Fuel &Residue Upgrading & Optimization Project NIORDC Production Units

Unit Capacity(BBL/day) License a. In service Naphtha Treating 62000 Axens CCR 32000 Axens

Isomerization 27000 UOP

b. In Future Unit Capacity(BBL/day) ATM. Distillation 120000 Kero HDS 27000 Gasoil HDS 99370 Hyvahl 81000 RFCC 91290 RFCC Gasoline Treating 51477 LPG 9819 LPG Merox 23728 Propylene Recovery 23728 H2 Plant (Ton/Day) 2*429 SRU(Ton/Day) 650 Esfahan Oil Refining Company(EORC) products NIORDC Before/after the Project(EURO 5)

Capacity(bbl/day) Product Increase/ Before After Decrease Gasoline 73591 11322 84912

LPG 12580 0 12580

Capacity(bbl/day) In Future Product Increase/ Decrease LPG 16800 Gasoline 80427 Gasoil(10ppm) 114784 Gasoil(>2500ppm) 108627 Kerosene -34745 Fuel Oil(180cst) 16879 Fuel Oil(280cst) -88832 Propylene 6998 ATK 23477 Sulphure(t/d) 520 NIORDC Esfahan Oil Refining Company(EORC)

Existing Production Units Atmospheric Distillation, Vacuum Distillation, Visbreaker, Naphtha Hydrotreater, LPG Recovery, Catalytic Reforming (CRU), Continuous Catalytic Reformer (CCR), Isomax, H2 Production, Isomerization, Sulfur Recovery and related utilities

Nelson Complex GROSS MARGIN Refinery Capacity Nelson Complex Index Index ($/bbl)2014-2015 (bbl/day) 2014-2015 Design Actual

ESFAHAN 1.7 372000 6.95 3.43 Bandar Abbas Oil Refining Company (BAORC) NIORDC Clean Fuel Project Production Units

Unit Capacity(BBL/day) License

Heavy Naphtha Treating 25000 AXENS CCR 25000 AXENS Light Naphtha Treating 16000 AXENS Isomerization 16000 AXENS Gasoil HDS 50000 AXENS Amine Treating 230 T/d SWS 500 T/d SRP 120 T/d Sulfur Solidification 250 T/d Bandar Abbas Oil Refining Company (BAORC) Products NIORDC Before /after the Project (EURO 4)

Capacity(bbl/day) Product Increase/ Before After Decrease LPG 8177 0 8177

Gasoline 69188 15724 84912

Sulphur (t/d) 130 120 250 NIORDC Bandar Abbas Oil Refining Company (BAORC)

Production Units (the current project units and existing one) Atmospheric Distillation, Vacuum Distillation, Visbreaker, LPG Recovery, Isomerization, Gas Oil Hydrotreater, Naphtha Hydrotreater, Kerosene Hydrotreater, H2 Production, Catalytic Reforming (CRU), Continuous Catalytic Reformer (CCR), Isomax, Sulfur Recovery and related utilities

Nelson Complex GROSS MARGIN Refinery Capacity Nelson Complex Index Index ($/bbl)2014-2015 (bbl/day) 2014-2015 Design Actual

BANDAR AABAS 1.2 327050 3.97 4.05 Tabriz Oil Refining Company(TORC) NIORDC Clean Fuel project Production Units

Unit Capacity(BBL/day) License Heavy Naphtha Treating 20000 AXENS

CCR 20000 AXENS

Benzene Extraction 92 T/day UHDE NIORDC Tabriz Oil Refining Company(TORC) products Before /after the Project(EURO 5)

Capacity(bbl/day) Product Increase/ Before After Decrease

Gasoline 14466 5661 20127

Benzene 0 4403 4403 NIORDC Tabriz Oil Refining Company(TROC)

Existing Production Units Atmospheric Distillation, Vacuum Distillation, Visbreaker, LPG Recovery, Naphtha Hydrotreater, Kerosene Hydrotreater, H2 Production, Catalytic Reforming (CRU),Continuous Catalytic Cracking(CCR) ,Benzene Extraction, Isomax, Sulfur Recovery and related units and utilities

GROSS MARGIN Nelson Complex Nelson Complex Refinery Capacity ($/bbl)2014- Index Index (bbl/day) 2014-2015 2015 Design Actual

TABRIZ 3.9 110037 6.25 5.65 Tehran Oil Refining Company(TORC) NIORDC Clean Fuel project Production Units

Unit Capacity(BBL/day) License Naphtha Treating 18000 Axens

Isomerization 18000 Axens

Unit Capacity(BBL/day) Kero HDS 31500 Gasoil HDS 53500 H2 Plant (MMSCFD) 42 SRU(Ton/Day) 110 Tehran Oil Refining company(TORC) products NIORDC Before /after the Project(EURO 4)

Capacity(bbl/day) Product Increase/ Before After Decrease Gasoline 46545 11322 57867 Kerosene 13209 0 13209 Gasoil 86799 0 86799 Fuel Oil 54721 0 54721 LPG 9345 0 9345

Increase/ Product Before After Decrease Sulphur 110T/d 100T/d 210T/d

Qualifying main products /meet Euro 5 Standard NIORDC Tehran Oil Refining company(TORC)

Production Units Atmospheric Distillation, Vacuum Distillation, Visbreaker, LPG Recovery, Naphtha Hydrotreater, Kerosene Hydrotreater, Gas Oil Hydrotreater, H2 Production, Catalytic Reforming (CRU), Isomax, Isomerization, Sulfur Recovery and related utilities

GROSS MARGIN Nelson Complex Nelson Complex Refinery Capacity ($/bbl)2014- Index Index (bbl/day) 2014-2015 2015 Design Actual

TEHRAN 0.3 247153 6.40 5.27

Imam Khomeini Oil Refining Company of Shazand (IMORC)

NIORDC Residue Upgrading & Optimization Project Production Units

Unit Capacity License bbl/day Distillation 80000 Designed by JGC Naphtha Hydrotreater 33000 Axens Octanizer 20000 Axens

RFCC 94387 UOP LPG Merox 28105 UOP RCD 69180 UOP Kerosene Hydrotreater 31500 Axens Gasoil Hydrotreater 53000 Axens FCC gasoline Treater 50500 Axens Isomerization 8500 RIPI H2 Plant 341 Propylene Recovery Unit 28105 UOP Sulphur Recovery(t/d) 640 NIORDC Imam Khomeini Oil Refining Company of Shazand Products Before/after the Project(EURO 5)

Capacity(bbl/day) Product Increase/ Before After Decrease

LPG 6290 16353 22643

Gasoline 31449 70446 101895 Kerosene 14466 11322 25788

Gas oil 67930 8806 76736

Fuel oil 45287 -22643 22644 NIORDC Imam Khomeini Oil Refining Company of Shazand (IMORC)

Existing Production Units Atmospheric Distillation, Vacuum Distillation, Visbreaker, LPG Recovery, Naphtha Hydrotreater, Kerosene Hydrotreater, Continuous Catalytic Reformer (CCR), Isomax, Sulfur Recovery, H2 Production, Isomerization, Residue Fluid Catalytic Cracking (RFCC), Reduced Crude Desulfurization (RCD), Propylene Recovery and related utilities

GROSS MARGIN Nelson Complex Nelson Complex Refinery Capacity ($/bbl)2014- Index Index (bbl/day) 2014-2015 2015 Design Actual

ARAK 4 248000 9.38 7.86 Lavan Oil Refining company (LORC) NIORDC Residue Upgrading & Optimization Project Production Units

Unit Capacity(BBL/day) CDU 25000 VDU 12077 HNHT/CCR 6750

LNHT/ISOM 7400

KHT/GHT 17730 SRP (Sulphur Recovery) 30T/d Sour Water stripper 416 T/d Amine Treatment 122 T/d NIORDC Lavan Oil Refining company (LORC) products Before /after (EURO 4)

Capacity(bbl/day) Product Increase/ Before After Decrease LPG 252 1887 2139

Gasoline 6919 11951 18869

Kerosene 0 6289 6289 Gas oil 9435 63 9498

Fuel Oil 9435 63 9498 NIORDC Lavan Oil Refining company (LORC)

Production Units Atmospheric Distillation, Vacuum Distillation, LPG Recovery, Naphtha Hydrotreater, Kerosene Hydrotreater, Gas Oil Hydrotreater, Catalytic Reforming (CRU), Isomerization and related utilities

GROSS MARGIN Nelson Complex Nelson Complex Refinery Capacity ($/bbl)2014- Index Index (bbl/day) 2014-2015 2015 Design Actual

LAVAN 0 59104 5.72 4.83 Kermanshah Oil Refining Company NIORDC Kermanshah Oil Refining Company

Production Units Atmospheric Distillation, LPG Recovery, Naphtha Hydrotreater, Kerosene Hydrotreater, Catalytic Reforming (CRU), Pentane Production Plant and related utilities

GROSS MARGIN Nelson Complex Nelson Complex Refinery Capacity ($/bbl)2014- Index Index (bbl/day) 2014-2015 2015 Design Actual

KERMANSHAH 4.1 20869 4.04 3.26 Shiraz Oil Refining Company NIORDC Shiraz Oil Refining Company

Production Units Atmospheric Distillation, Vacuum Distillation, Visbreaker, LPG Recovery, Naphtha Hydrotreater, Kerosene Hydrotreater, H2 Production, Catalytic Reforming (CRU), Isomax, Sulfur Recovery and related utilities

GROSS MARGIN Nelson Complex Nelson Complex Refinery Capacity ($/bbl)2014- Index Index (bbl/day) 2014-2015 2015 Design Actual

SHIRAZ 4.9 57196 5.47 4.51 Cumulative Project Investment NIORDC in Iranian Refineries through 2010-2014 NIORDC Change of Products Slate as a Result of Implemented Projects

Unit : bpd

Modified Base Case

Fuel Oil Gas Oil Jet/Ker Gasoline LPG Crude Fuel Oil Gas Oil Jet/Ker Gasoline LPG Crude

172900 398000 627000 67000 454000 58000 1827000 484000 562000 141000 283000 53000 0 NIORDC Nelson Complexity Index Of Iran Refinery

10 9.4 9 7.9 8 7.0 7 6.3 6.4 5.7 5.8 6 5.7 5.5 5.3 4.8 5 4.5 4.7 4.0 4.1 4.0 4 3.6 3.4 3.4 3.3 3 2 1 0

Design case Operation case NIORDC Iranian Refineries Margin 2014

5% discount on feed price Without discount $/bbl

Abadan -4.1 0.7 Tehran -4.6 0.3

Isfahan -3.2 1.7

Tabriz -1.0 3.9

Shiraz -0.1 4.7

Kermanshah -0.8 4.1

Lavan -4.8 0

Arak -0.8 4

Bandar Abbas -3.7 1.2 NIORDC NIORDC NIORDC Ranking of Iranian Refineries in the World

THERMAL Crude FCC Total Gasoline Fuel LPG CRACKING Jet fuel Kerosene Diesel Capacity Capacity Products Products Diesel Capacity Capacity

11th 47th 4th 12th 17th 35th 69th 13th 3th 14th

Options for Residue Upgrading of Iranian Refineries Residue Upgrading Processes

Process selection criteria

1- Feed properties: Carbon residue, metals(Ni,v,..) , sulphur content 2- Product market( Coke,…) 3- Refinery downstream process requirement 4- Process reliability

These criteria should be considered in project feasibility study Residue Upgrading Processes

Based on the mentioned criteria, three below processes could be used:

1- Residue Fluid Catalytic Cracking (RFCC) 2- Slurry Hydrocracking 3- Delayed Coking Residue Upgrading Processes Residue Fluidized Catalytic Cracking (RFCC)

Heavier Feedstock than VGO can be processed Higher coke formation with heavier feedstock Limit Set both high Conradson Carbon and tolerable metals content Techniques for heavy oil cracking - Catalyst cooling - Better riser mixer design and mix temperature control - Better riser lift technology to reduce steam - Two stage regeneration (optional) Residue Upgrading Processes Residue Fluidized Catalytic Cracking (RFCC)

Two stage regeneration Spent catalyst first subjected to mild oxidation with limited air( temperatures 650°c-700°c) Catalyst is conveyed pneumatically to second stage (refractory lined) Excess air in second stage ( 700°c-800°c) Gives high coke burn off without impairing catalyst activity Residue Upgrading Processes Residue Fluidized Catalytic Cracking (RFCC) Residue Upgrading Processes Residue Fluidized Catalytic Cracking (RFCC) Flow diagram for a UOP RFCC complex excluding flue gas system option Residue Upgrading Processes Residue Fluidized Catalytic Cracking (RFCC)

Typical RFCC Product Yields (Wt% of Feed)

Mode Gasoline + LPG Propylene Ethylene 1.42 7.1 Ethane 0.94 1.21 Propylene 10.5 18.1 Propane 3.52 2.18 Butylene 9.62 9.83 i-Butane 4.87 2.98 n-Butane 1.51 0.82 Debutanised Gasoline 43.94 35.21 LCO 10.1 8.32 Clarified Oil 6.89 5.59 Coke 6.69 8.66 Residue Upgrading Processes Slurry Hydrocracking

Eni Slurry Technology:

Eni Slurry technology (EST) is a breakthrough technology for the full conversion of the bottom of the bottom of the barrel to distillate. The availability at industrial level of EST enables the oil industry to solve crucial needs: Residue Upgrading Processes Slurry Hydrocracking Upstream:

• Valorization of increasingly heavier oils worldwide

• More profitable marketability of the world huge reserves of extra heavy oils

• Elimination of upstream low value pet coke production

Residue Upgrading Processes Slurry Hydrocracking Downstream:

• Meet the declining demand of fuel oil converting surplus of refinery residues into distillates (zero fuel oil – zero coke refinery)

• Meet the increasing demand of cleaner distillates without increase of the CDU capacity

• Increase the refinery flexibility to supply of heavier crudes

NIORDC Residue Upgrading Processes Slurry Hydrocracking Description:

• The fresh feed is primarily sent to the fresh feed heater and then mixed with Eni proprietary catalyst makeup and sent to the up flow slurry bubble column reactor (1). Hot hydrogen is also sent to the slurry reactor providing the thermo- catalytic hydroconversion of the fresh feed. The reactor effluent is collected in the EST hot high- pressure separator (2) Where a gas-vapor stream and a VGO rich stream are separated. NIORDC Residue Upgrading Processes Slurry Hydrocracking

Description(Continue):

• The gas-vapor stream is subsequently cooled and sent to the EST cold high-pressure separator (3) to separate the gas stream, rich in hydrogen, and the hydrocarbon liquid stream. The hydrogen-rich gas stream is recycled back to the slurry reactor, together with the makeup hydrogen.

• The VGO-rich stream from the EST hot high- pressure separator (2) is sent to the vacuum flash column (4) in order to separate the VGO product. NIORDC Residue Upgrading Processes Slurry Hydrocracking Description(Continue):

• The bottom of the vacuum flash column (4) is mostly recycled back to the Slurry Reactor while a small amount is taken out as purge. The VGO extracted from the vacuum flash column (4) is sent to battery limit. The liquid stream from the EST cold high- pressure separator (3) is sent to the light distillates stabilizer (5) from which light distillates could be separated and sent to battery limit. NIORDC Residue Upgrading Processes Slurry Hydrocracking Flow diagram of Eni Slurry Technology NIORDC NIORDC NIORDC NIORDC NIORDC Residue Upgrading Processes Slurry Hydrocracking

Typical Eni Slurry Technology Product Yields(Wt% of Feed)

Products Yields

C1 – C4 6 – 9

Naphtha 6 – 20

AGO 35 – 55

Cat feed(VGO) 12 – 55

Purge (Bitumen) 1-2 NIORDC Residue Upgrading Processes Delayed Coking

• Coking is an extreme thermal cracking process • The feed is heated to 480 °c to 510 °c and held at high temperature while coke and lighter products form • Different types of coke can be formed: NIORDC Residue Upgrading Processes Delayed Coking

• Green coke – • The initial product of coking, contains volatile material (85 to 95% carbon) and requires calcining at 1000 oC to 1300 oC to make sponge or needle coke (98 to 99.5% carbon)

• Sponge coke – • Black sponge-like appearance, high surface area, used for aluminum anodes or electrodes for steel production NIORDC Residue Upgrading Processes Delayed Coking

• Needle coke- • Crystalline structure, low electrical resistivity and low thermal expansion coefficient, so preferred for electrodes

• Produced from highly aromatic feed stocks (e.g. FCC cycle oils) when coking unit operated at high pressures and high recycle ratios

Residue Upgrading Processes NIORDC

Delayed Coking Flowsheet NIORDC Residue Upgrading Processes NIORDC Delayed Coking Process flow diagram for typical delayed coking furnace/fractionation sections Residue Upgrading Processes NIORDC Delayed Coking

Typical Yields and Product Properties as Estimated for Various Delayed-Coker feedstocks at Constant Recycle Ratio and Pressure (Wt% of Feed)

Crude Source

Southeast Mexican Products Asian African Middel East

7.4 10.5 Dry gas and C4 6.2 9.2

20.4 21.4 C5-193° C, Naphtha 18.5 17.4

54.5 33 193° C+, Gasoil 65.3 48.5

17.7 35.1 Coke 10 24.9 NIORDC Financial Transactions

TARGETED SUBSIDIES ORGANIZATION

Targeted subsidies organization portion of crude oil& condensate revenue 8 (after NIOC portion deduction )

TREASURY

NIOC portion of crude oil& 7 Refineries debt 3 4 5 main products and 5 EXPORTS 6 *Deduction condensate revenue (14.5%) (Stream 1,2 Difference ) aviation fuel price

NIOC NIRODC

*DEDUCTION: Crude oil & Gas 1-TAX & CHARGES condensate price and Subsidy’s products (5 main 2-PART “KAF” GHARGES 1 2 products and aviation fuel) price 3-GASOLINE IMPORT Petrochemical products as 4-STATION COMMISSION & TRANSPORTATION refineries feed price 5- CREDIT BITUMEN 6- NIODC CURRENT EXPENDITURE 7- NIOPTC CURRENT EXPENDITURE REFINERIES 8-NIODC & NIOPT Depreciation 9- NIORDC CURRENT EXPENDITURE and Depreciation 10- NIORDC tax, Dividend and legal reserve NIORDC Iranian Refineries Margin 2014

5% discount on feed price Without discount $/bbl

Abadan -4.1 0.7 Tehran -4.6 0.3

Isfahan -3.2 1.7

Tabriz -1.0 3.9

Shiraz -0.1 4.7

Kermanshah -0.8 4.1

Lavan -4.8 0

Arak -0.8 4

Bandar Abbas -3.7 1.2 Facilities and governmental supports for refining companies in Iran

NIORDC

1- The prices of crude oil and condensate as feed for all of

domestic refineries include 5% discount against exporting

crude oil price. Moreover, for new refining unites and

based on the sophisticated configuration, the discount can

be considered between 5% and 10%. NIORDC

2- Internal refineries have not paid the cost of transportation crude oil to and oil products out of refineries; in other words, they receive their feed at the fence of refineries and deliver their products to the places. NIORDC

3- The prices of refined products are base on FOB PG regardless to their qualities and in this case, the owners of refineries should invest 30% of net profit in clean fuel projects. NIORDC

4- According to high demand of light products in Iran, there are economical and guaranteed local markets for the products. Also, as different industries in the country are being developed and need some special products as feed, refineries produce some valuable specific oil products, which can gain high profit in this situation. Refineries under construction NIORDC

This refinery is being constructed, in Bandar Abbas and is the most sophisticated gas condensate refinery in the world . It includes condensate splitter , naphtha Hydrotreater , kerosene Hydrotreater , gas oil Hydrotreater , h2s removal ,sulfur recovery and LPG treating units.

This refinery will produce Euro 5 regular and premium gasoline, avia tion fuel,

Ultra Low sulfur diesel and LPG.

Products:

LPG 24000 BPSD Gasoline 230000 BPSD Jet fuel 21000 BPSD ULSD 84000 BPSD NIORDC Siraf Refinery Park

Largest gas condensate refining Park is being constructed in Siraf , Assaluyeh, (Booshehr Province) Total capacity of refineries is 480000 BPSD and will process untreated condensate from super giant South Pars Gas Field.

Products:

LPG 25000 BPSD Treated Naphtha 276000 BPSD Jet Fuel 30000 BPSD Gas Oil 148000 BPSD THANK YOU