The document describes plans for an oil refinery project with a capacity of 500 thousand tons per year. It will use modern technologies and have highly qualified specialists. The refinery will include various processing units like atmospheric distillation, hydrotreating, thermal cracking, and bitumen production. It will be able to process different types of oil to produce gasoline, diesel, and other products meeting European standards. The refinery will have automated control systems and a certified laboratory to ensure quality. It will require about 30 hectares of land, 100 cubic meters of water per day, and 800 kV of electricity to operate.

1. Limited Liability Company Energopromengineering The project of oil refinery with the capacity of 500 thousand / tons a year Modern innovative technologies – the basis of effective economy 2011

2. General information Company’s objective – continuous development, competitiveness, success and being number one partner for our customers and partners. Specialists – high qualification and considerable experience in completing special, challenging and unconventional tasks , a lot of specialists have academic degrees of Ph.D. in Economics and Cand.Sc. (Engineering). Major competencies – design, engineering, management of investment and innovation-based projects of power engineering and infrastructure , OR (oil refinery) designing and construction . The Company’s Mission is an effective technical support of preparation and implementation of the projects in the sphere of electric power industry, FEC (fuel - energy complex), infrastructure , complex decisions concerning the city waste management , working with hazardous wastes, land recultivation.

3. Company’s profile Energopromengineering is a modern company which provides a wide complex of services on design and construction of energy and infrastructure facilities . all the stages of project management : from the idea and designing to the facilities construction on turnkey terms. exercise of the General Designer’s and Prime Contractor’s functions accomplishment of designing, construction , installation and commissioning works. service maintenance and routine maintenance of different facilities. considerable and successful cooperation experience with business corporations , financial institutions and administrative agencies company employees’ professional experience when implementing Russian and international projects in the sphere of electric power engineering and wastes reclamation.

4. Types of activity Electric power plants Power transmission lines Transformer substations Water supply : Water conditioning and water drain Routine maintenance Repair operations Design and construction Operation Power engineering facilities Highway construction Gas supply Heat supply Infrastructure projects Wastes reclamation: garbage recycling plants, garbage sorting lines, hazardous wastes reclamation FEC (fuel - energy complex) OR (oil refinery) Oil and gas pipeline OPS, GPS (oil and gas pumping stations )

5. Technical Proposal for Oil Refinery construction A planned for the construction OR is meant at the first stage for the capacity of 500 thousand tons of raw stock per year . As a raw stock the project presupposes the oil with average output of light oils up to 63% ( at the boiling temperature up to 370 0 С), with paraffin content up to 2 . 0% and mass fraction of sulphur up to 3 . 5%. Our company has possibility to optimize the project construction and operation oil refinery on the block- modular delivery of the process equipment, with capacity of each module on primary processing to 1 million tons per year. Consecutive input in a system of necessary quantity of modules with possibility of processing of a various kind of raw ( light , heavy oil from different fields, gas condensates and their mixes) allows to diversify source of raw material. The planned for application processing equipment will provide high economic indicators and reasonable term of the project payback. The products manufactured at OR will meet all the requirements imposed to these products by the customer. Design, production of all the process equipment and personnel training is performed in Russia, by forces the Russian companies and specialists. The expendables necessary for functioning OR are produced and supplied from Russia.

6. Since 2005 a new method of oil stock refining and oil-refining plants on its basis was put into practice and used successfully . The given method is called “Vortex rectification” . Non-traditional method is noted for high environmental friendliness ( in contrast to the traditional arrangement there is no need to collect liquid wastes – oil slimes – they are absent ), atmospheric emissions do not differ from internal-combustion engines exhausts . The method of raw hydrocarbon rectification is based on flashing evaporation and step-by-step cooling at each stage of rectification . The new thing is that the separation into vapor and liquid phase at all the stages of rectification is made in cyclone evaporators – separators , the structure of which provides not only effective separation of vapor and liquid phases in the process of vortex movement , but also effectively restricts the outlet of sinking fractions vapor together with the vapor of light fractions to the next stage of rectification . In such a manner , the realized approach is based on gasdynamic task solution of the hydrocarbon separation into fractions. The advantages of the process is that it enables to refine successfully at one and the same processing plant using the “ vortex rectification ” method both light and heavy oil , gas-condensates and raw hydrocarbon mixtures . The experience of such a method practical usage has revealed its additional advantages in the process of raw hydrocarbon refining , new spheres of usage and new effective opportunities of oil refining . The plants with the capacity of charge stock from 10 tons a day up to 600 thousand tons of oil per year ( Russia , Ukraine , Kazakhstan ) have been developed and constructed . Vortex rectification Refinery procedure

7. Vortex rectification The process advantages The mentioned advantages of the plants enable to use them in the following spheres: universal, effective and trouble-free oil-refining equipment for motor and power-plant fuels receipt. general-purpose equipment for oil slimes refining . oil-refining plants based on the principals of “Vortex rectification” are successfully operated under climatic conditions from +45 0 С to –45 0 С. Q ualitative measure Vortex rectification Traditional arrangement Simplicity and reliability of servicing. + - High level of safety – the pressure in processing line is close to the atmospheric one. + with additional safety measures Insensitivity to the variations of the refined charge stock percentage composition when the plant has to operate with different types of charge stock ( in practice, this allows to refine at one and the same plant both light and heavy oil , clear and dark gas-condensate, as well as to re-refine faulty oil products ) . + - High percentage output of clear fractions with maintenance of the fuel qualitative indicators. + Is achieved for the plants of high productive capacity During the plant operation with the majority of oil grades the octane number of the directly distilled gasoline according to motor method is by 5-6 units higher than the analogous coefficient for traditional plants of column type. + - Low materials consumption of the equipment. + - Just in 40 – 50 minutes after start-up the plant reaches the qualitative operation mode. + - The possibility to refine raw hydrocarbon with an in creased water content ( up to 8%) + -

8. Oil Refinery Process Flow Scheme hydrocarbon gases Gas fractionation unit hydrocarbon gases hydrocarbon gases hydrocarbon gases hydrocarbon gases Clean HCGM Hydrogen Reforming Hydrogen Hydrogen HCGM for sweetening Hydrogen production Sulphides Gas to fuel system Gases sweetening Gasoline to farm Gasoline to farm Gasoline to farm Diesel fuel to farm Sulfur production Sulphides Sulphides Gasoline to farm Residue Tar Bitumen production Bitumen to farm Sulphur to farm Diesel Fraction Light vacuum gasoil Heavy gasoil Thermal cracking DF hydrotreater Gasoline fraction hydrotreater Gasoline fraction Feed stock Atmospheric distillation

9. OR plants Ц 44/500 – primary oil processing unit , fractionation of oil. Hydrotreater – unit for fuel fractions hydrotreatment from sulphides. Thermal cracking – unit for advanced refining of black oil with the purpose of light hydrocarbons production. Reforming – high-octane petrol production unit. Bitumen production – tar oxidation unit for bitumen production. Sulphur production – Klaus unit for granulated sulphur production. GFU – gas-fractionation unit. Hydrogen production unit DF – diesel fuel HCGM – hydrocarbon gases mixture HG – hydrocarbon gas OR process flow scheme list of plants Interpretation of the accepted abbreviations

10. Atmospheric distillation on the basis on the cyclone type unit with the unit of the production raw stock topping with the capacity of 500 thousand tons of raw stock a year. ensures stable indicators of the production quality at the refining capacity from 25% to 110% from rating value. enables to refine light and heavy oil, gas-condensate and their mixtures, as well as oil-slimes without loss of quality. enables to get up to 5 oil fractions : light and heavy gasoline fractions ( for secondary processes usability ), illuminating oil , diesel fuel and black oil. the received directly distilled gasoline possesses an increased octane number compared with traditional atmospheric distillation ( minimum 5-6 units more according to motor method ): so, for the oil – up to 72 units according to motor method , and for gas-condensate – up to 75 units according to motor method. the unit maintenance personnel – 2 operators per shift Atmospheric distillation unit

11. Thermal cracking Black oil thermal cracking plant the plant with the capacity of 200 thousand tons of raw stock a year ensures stable indicators of the production quality with the refining capacity from 25% to 120% from rating value. the possibility of operation in the mode of direct atmospheric oil distillation with the capacity up to 250 thousand tons of crude oil a year. increasing of oil refining depth ( output of light oils ) up to 73-84% the possibility of refining with the help of thermal cracking method both black oil and vacuum gas-oil with cracking-gasoline production , as well as furnace oil and hydrocarbon gases the plant maintenance personnel – 2 operators per shift

12. Black oil vacuum distillation plant with the capacity up to 200 thousand tons of black oil a year. vacuum gas-oil production ( for its refining with thermal cracking and cracking gasoline production , furnace oil and hydrocarbon gases ), and tar – raw stock for paving and construction bitumen. the plant maintenance personnel – 2 operators a shift. Vacuum distillation

13. Bitumen production Tar oxidation plant with the capacity up to 100 thousand tons of bitumen a year. paving and construction bitumen production using tar oxidation method. the plant maintenance personnel – 2 operators a shift.

14. Gasoline hydro treater with the capacity up to 150 thousand tons of raw stock a year. gasoline sweetening up to European standards . the plant maintenance personnel – 2 operators a shift. Hydrotreating

15. Diesel hydrotreater with the capacity up to 200 thousand tons of raw stock a year. diesel sweetening up to European standards. the plant maintenance personnel – 2 operators a shift. Hydrotreating

16. Catalytic reforming and hydrogenation plant petrol fractions hydrocarbons reforming. two - reactors scheme implementation enables the receiving of the petrol high-octane component with a decreased content of aromatics – conformance to the requirements of the European standards gasoline. the plant maintenance personnel – 2 operators a shift. Reforming

17. Motor fuel components blending unit mixed high-octane gasoline production , corresponding to European standards . received gasoline fractional analysis optimization. the plant maintenance personnel – 2 operators a shift. Compounding

18. Gas-fractionation plant enables the separation and division of oil refining residual gases for their further utilization in the process flow. the plant maintenance personnel – 2 operators a shift. Gase separation Hydrogen sulphide removal unit enables the utilization of hydrogen sulphide and production of technological sulphur, sulphuric acid . the plant maintenance personnel – 2 operators a shift.

19. Discharge , loading the plant infrastructure with the capacity of 500 thousand tons / year should include the railroad overpass that enables the discharge/loading of raw stock and finished product, or terminals of pipeline and/or water transport . the shipping of short-run batches of products into road tankers is also possible.

20. Summary As a result of the suggested effective technological solutions realization the minimum processing depth will be 72,5%, and maximum – 87,5% ( depending upon the season and the product line defined by the sponsor ). Production output corresponding to norms of European standards. The suggested scheme involves the autonomous electrical energy consumption and low water consumption during the compact location of plants , as well as minimum impact on the environment . High degree of automation provides a small number of personnel . The possibility of electric power supply to the nearest inhabited localities is provided.

21. Marketable products The oil refinement ( products for sale ) in such oil refineries under the condition of the refinement of all the black oil at vacuum distillation plant , with production of maximum amount of bitumen and with thermal cracking of all the received vacuum gas-oil will be presented in the following way ( in terms of charge stock in mass fractions ): Petrol А i 95, А i 96 30 . 0 – 34 . 0% Diesel fuel 35 . 0 – 38 . 0% Black oil Fuel oil 15 . 0 – 20 . 0% 4 . 0 – 6 . 0% Bitumen 8 . 5 – 9% In-plant fuel process fuel 1,0 – 1,5% gases 6,0 – 6,5%

22. The list of output products Petrol of the European standards Diesel of the European standards fuel Black oil Paving bitumen Construction bitumen Sulphur

23. Automated Process Control System Indicators of the available Process Control System Automation system SCADA provides the centralized control of the facilities condition , the alarm system of the parameters deviation from the norm, process parameters regulation , facilities operation remote control , protection ( stop action ) of processing equipment , journal of emergency and process events composition , database maintenance. Automation system provides the operation of the automation object around-the-clock with all the necessary parameters output at the operator’s automation equipped working place .

24. Laboratory the laboratory uses standardized and licensed equipment at which the analysis according to the standard GOST , API, ASTM are made. each lot of the production output receives a passport. continuous quality control of the production output is carried out. the laboratory maintenance personnel – 1 laboratory assistant a shift. Certified laboratory

25. Resources Resources requirement Land resource . for the construction of complex Oil Refinery 30 ha of land with the area of 370х800 meters is required . Water needs. to meet the water needs of the plant the water volume up to 100 m 3 / day will be enough . Electric power to meet the electric power needs of the plant the power equal to 800 kV will be enough.

26. Resources Main technical and engineering personnel of the oil refinery Item Facility Profession , qualification Total 1. Discharge / loading railroad overpass Operator ( worker ) 16 2. Discharge / loading auto overpass Operator ( worker ) 8 3. Product/raw stock farm Operator ( worker ) 8 4. Plant Ц44/500 Operator ( engineer ) 8 5. Thermal cracking plant Ц42/200 TK Operator ( engineer ) 8 6. Black oil vacuumization plant Operator ( engineer ) 8 7. Bitumen preparation and oxidation plant Operator ( engineer ) 8 8. Diesel hydrotreater Operator ( engineer ) 8 9. Gasoline hydrotreater Operator ( engineer ) 8 10. Hydrogen sulphide removal unit Operator ( engineer ) 8 11. Reforming Operator ( engineer ) 8 12. OR (oil refinery) Technologist 4 13. Instrumentation and automation service Instrument tender on duty 8 14. Electrician service Electrician on duty 4 15. Laboratory Shift supervisor Laboratory assistant 4 8 16. Mechanical engineer service Shift fitter 8 TOTAL : 132

27. Qualification Personnel training during the equipment installation the Oil Refinery personnel training will take place . training will take place in real time . required professionalism: minimum secondary technical education . the training of plant operators , discharge/loading overpass operators , technologists will take place .

28. Products - Raw stock farm Raw stock tank farm consists of : for oil – of 3 pieces of vertical tanks with a total capacity of 15000 m 3 , including : 5000 m 3 - 3 pcs . Products tank farm consists of : for petrol – of 5 pieces of vertical tanks with a total capacity of 15000 m 3 , including : 3000 m 3 - 5 pcs ; for diesel fuel – of 3 pieces of vertical tanks with a total capacity of 9000 m 3 , including : 3000 m 3 – 3 pcs ; for black oil – of 3 pieces of vertical tanks with a total capacity of 15000 m 3 , including : 5000 m 3 – 3 pcs ; for kerosene – of 2 pieces of vertical tanks with a total capacity of 400 m 3 , including : 200 m 3 – 2 pcs ; for cracking residues – of 3 pieces of vertical tanks with a total capacity of 9000 m 3 , including : 3000 m 3 – 3 pcs ; for paving and construction bitumen : of 6 pieces of vertical tanks with a total capacity of 4800 m 3 , including : 800 m 3 – 6 pcs ;

29. Period for delivery and installation the equipment delivery will start in 7 months after the beginning of financing. to get through procedures of customs the delivery of full- complete equipment is considered to be the optimal one according to the time period. installation and commissioning works for different plants are from 3 to 5 months.

30. Commissioning schedule Item Equipment Commissioning period ( months from the beginning of general financing ) 1 Plant Ц44/500 14 2 Gas fractionation plant 14 3 Plant Ц42/200 TK 16 4 Reforming 18 5 Black oil vacuumization plant 19 6 Bitumen oxidation plant 20 7 Diesel hydrotreater 22 8 Gasoline hydrotreater 22

31. Partners Institute of Hydrocarbons Processing of the Siberian Branch of the RAS of the Russian Academy of sciences Research and Development Enterprise The fund “National Environmental Management and Cleaner Production Center for Oil and Gas Industries” Tomskneftegasproekt LLC design and engineering Geological surveys and geophysical activities geodesic and cartographic activities

32. Russian licenses and certifications The Company possesses all authorizations and certificates required to conduct its activities connected with design, preparation and organization of construction, reconstruction, overhaul, engineering and technical operations ( including specially dangerous units ) within the RF , as well as engineering-geodesic, engineering-geological , engineering-ecological survey , the activities in the sphere of energy survey . The Company implements the Quality Management System ( GOST R ISO 9001-2008 /ISO 9001:2008) ) and the Occupational Health and Safety Management System ( GOST 12.0.230-2007 /OHSAS 18001:2007 ). The Company is completing the certificates receiving for energy audit of municipal housing economy units.

33. Contact us Address : 107076, Russia , Moscow City , Elektrozavodskaya Street , b .33, constr . 4 Telephone / fax : +7 495 643-18-79 Website : www.en-prom.ru Zaurbek Khuchiyev Chief Project Engineer mob. : +7 968 865 88 34 E-mail: [email_address]