The Upgrading

Of the Moroccan Refining Industry

By Hmida M’HAMDI Samir Technical Manager

African Refiners Association

Annual Meeting Cape Town 5 - 6 - 7 March 2007

2

The Context

Globalisation of car manufacturing brings clean fuels

to Africa:

Already happening in Morocco

Lead phase out is already started

Several African Countries have low level of market

liberalization

Difficult for small refineries to remain viable in

liberalized markets

Below 50,000 B/D it is difficult to justify even small investment

in clean fuels projects

3

Oil product demand : 8 million tons

Total Refining Capacity: 7.75 million tons

Marketing Companies: 15including 3 international

Electrical Power Installed: 5 252 MW

34 LPG Filling Centers

Moroccan Energy Sector: Key Figures 2006

Total Consumption: 13 M TEP

Oil: 61.6%

Coal: 30.2%

Currently product prices are

supported by the GOV,

Refinery gate prices will be

liberalised in 2009.

4

Samir Position in the Group

Morocco refineries were privatised in 1997 and the Corral Petroleum

Holding AB acquired 67.27% of the Capital. The remaining 32.73% is

floating in Casablanca Stock Exchange.

Moroncha Holdings Company Ltd

Corral Holding

Sweden

Lysekil

250,000 bpd

Gothenburg:

125,000 bpd

E&P Activities

Corral Holding

Maroc

Mohammedia:

130,000 bpd

Sidi Kacem:

30,000 bpd

Marketing

Activities

Moroncha Holdings is 100% owned by Mohammed H. Al-Amoudi

SAMIR Preem Petroluem

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SAMIR MISSION / OBJECTIVES

Develop and Operate a complex and highly

competitive Refining Industry.

Contribute strongly to the Social and Economic

development of Morocco.

Supply most of the domestic market demand and

comply with the industry requirements:

Security of supply,

Competitive prices,

Compliance with the safety and the environment

requirements

RENOVATION OF THE EXISTING

REFININY

7

Existing Refinery Main Units

Process Units Tons per Year Licensor

Refinery Fuels zone 1

Topping 1 (1960) 1,250,000

--

Catalytic Reformer 1 (1960) 230,000 UOP

Topping 2 (1972) 1,000,000 --

Refinery Fuels zone 1 (1978)

Crude Distillation 3 (Topping III) 4,000,000 --

Catalytic Reformer 2 700,000 UOP

Distillate Hydrotreater 2 (HDS 2) 300,000 IFP

Lube Base Oil Complex (1983)

Vacuum Distillation 2 850,000 --

Furfural Extraction 220,000 Texaco/Bechtel

Propane Deasphalting

Dewaxing and Hydrofinishing

330,000

120,000

Total/CFR

8

Mohammedia Refinery: Today

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Modernisation Program of the Existing Refinery

The program aimed to uplift the existing refinery to meet the industry

standards and to prepare for the integration of the upgrade project:

Million US$

Tanks maintenance program 50

DCS system 18

Waste water treatment plant & Demineralisation

plant15

New power supply system 80 MVA 25

40 MW Power Cogeneration Project 42

Total 150

UPGRADE PROJET

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April 2006: Approval of the Project Environmental

Impact Assessment.

October 2006: Signature of the Financing with a

Consortium composed of Local Banks.

May 2005: Signature of the Construction LSTK

Contract with the Consortium Snamprogetti-Tekfen.

Upgrade Project – Key Dates

December 2004: Signature of an Investment

Convention with the Government of Morocco

March 2006: Conversion of the LSTK Contract to

EPCM & Construction Contracts.

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Contributions of the Project

Production of clean fuels:

Gas oil 50 and 10 ppm and removal of lead fromGasoline

Environmental Impact : improvement of the AirQuality in the big Cities.

Introduction of the Hydrocracking Technology:

Increase of the Gas oil production

Improvement of the refinery margin to faceinternational competition,

For Morocco: Security of Supply, Transfer ofTechnology, Employment, Growth,…

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New Units Capacity

Process Unit Capacity

Vacuum Distillation Unit 54,300 BPSD (360m3/h)

Fuels Hydrocracker 36,000 BPSD (239 m3/h)

Distillate Hydrotreater 55,000 BPSD (364 m3/h)

Hydrogen Production 102,000 Nm3/h (220 TPD)

Sulphur Recovery (2 train) 2x235 TPD

Amine Regeneration Unit 382 m3/h

Sour Water Stripper 109 m3/h

14

Mohammedia Refinery: End 2008

15

Technology & PMC

Selected Technology:

Hydrocracker: Chevron Lummus Global

Distillate Hydrotreater : UOP

Hydrogen Plant: Technip KTI

Sulfur recovery plant: Parsons

PMC for FEED: Foster Wheeler UK

PMC for EPCM and Construction: Foster Wheeler Italy

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0

10

20

30

40

50

60

70

80

90

100

Before Upgrading After Upgrading

LPG

Gasolines

Naphtha

Gasoil + Jet

Fuel oil

Lubes and Bitumen

Internal Consumption

Production Profile

Gasoil

38% Gasoil

50 ppm

50%

+ 12%

%

17

Upgrade Project Budget

Excluding Financial Costs

Millions US$ Budget

Construction Cost 650

Owner’s Cost 90

Site Preparation & Integration 60

Contingencies 50

Total Project Cost 850

18

Project Progress

Total Progress

Detailed Engineering

Procurement

Construction

Commissioning

and Start-Up

Performance Tests

Dec 2006

2005 20072006 2008

57.7%

50.5%

13.9%

40.4%

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Upgrade Project – Model 3D Overall View

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UPGRADE PROJECT - CONSTRUCTION PROGRESS

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UPGRADE PROJECT - CONSTRUCTION PROGRESS

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UPGRADE PROJECT - CONSTRUCTION PROGRESS

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UPGRADE PROJECT - CONSTRUCTION PROGRESS

FUTURE PROJECTS

26

The 3 major energy players in Morocco signed a

strategic partnership for the implementation of a LNG

Terminal and Natural Gas distribution network

Feasibility study completed

Supply options evaluation study is on going

International strategic partner in LNG activities is

invited to join this project

Natural Gas Project

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Revamping of existing CDU to increase the crude

processing capacity “Preflash Project”. Potential

increase 2 million tons per year.

Cocker project to reduce further the fuel oil production

New crude distillation unit, CDU N 4 with 4 million tons

per year.

Refining Projects – Phase II

THANK YOU FOR YOUR KIND

ATTENTION

Questions?