Oman Economic Forum

Expansion and prospects of the basic and petrochemical industries.

(March 18th and 19th , 2014)

Musab Al Mahruqi – CEOOman Oil Refineries and Petroleum Industries Co. SAOC

2

Orpic Overview

Growth Projects

Opportunities to Oman

Outline

3

Orpic Overview

Mission

“To meet Oman’s needs for refined petroleum fuel and maximize long term returns by processing hydrocarbons to high value petroleum and petrochemical products”

Vision

“Build an Omani integrated refining and petrochemical business we are proud of”

4

Orpic Overview

Gasoline

Fuels

LPG

Diesel

Jet Fuel

CrudeOil

Petrochemicals

Polypropylene

Paraxylene

Benzene

MAF Refinery - 1982

Sohar Refinery - 2006

Aromatics plant- 2010

Polypropylene plant- 2006

Imported Naphtha

Propylene

Naphtha

1982

2006

2010

Long Residue

5

Orpic Fact sheet

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Orpic Fact sheet

Gasoline to fill in 160,000 cars

Diesel to fill in 15,000 trucks

Jet Fuel to fill in 25 planes

LPG to fill in 33,000 cylinders

Every day we produce

Fuels

Petrochemicals

2500 MTParaxylene

600 MT Benzene

1000 MTPolypropylene

7

Orpic Overview

Growth Projects

Opportunities to Oman

Outline

8

8

MAF Refinery Sohar Refinery Aromatics plant

Polypropylene plant-

1982

Sohar Refinery Upgrade

Liwa Plastics Project

2006 2010 2016 2018

Investments USD 800 mn USD 1,500 mn USD 1,600 mn USD 2,700 mn USD 3,600 mn

Gasoline

Fuels

LPG

Diesel

Jet Fuel Gasoline

Fuels

LPG

Diesel

Jet Fuel

Petrochemicals

Polypropylene

Petrochemicals

Paraxylene

Benzene

Gasoline

Fuels

LPG

Diesel

Jet Fuel

Bitumen Gasoline

Fuels

Polypropylene

Petrochemicals

HDPE

LLDPE

Benzene

Projects

Products

Timeline

Orpic “Growth” strategy – Expanding Product Mix

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Increased Petchem Precursors

Gas Extraction

NaturalGas

Methane

Ethane

LPG

Methane

Building Blocks of Petrochemicals

Oil Refinery

Naphtha

Olefins

Butdaiene

AromaticsFuels

(Gasoline, Diesel, Jet Fuel, LPG Asphalt, etc.)

CrudeOil

Propylene

Ethylene

Xylene

Toluene

Benzene

2013

Methane

Building Blocks of Petrochemicals

Butdaiene

Propylene

Ethylene

Xylene

Toluene

Benzene

2018

1010

Fueling Growth Projects 2014-2018

Fixed Assets to grow three times while 71% funded by bank loans

Crude processing increase by ~ 70%

Job creation of over 1000 skilled positions

Manpower Plan

Crude (and equivalent) consumption

Capital Investments

2014 2015 2016 2017 20180.0

2.0

4.0

6.0

8.0

10.0

12.0

Existing SRIP LPP MSPP

in

US

D b

n

2013 2014 2015 2016 2017 20180

50

100

150

200

250

300

Existing SRIP LPP

Cru

de

equ

ival

ent

kb

bl

/ d

ay

2013 2014 2015 2016 2017 20180

500

1000

1500

2000

2500

3000

3500

Existing SRIP LPP MSPP

Nu

mb

er o

f em

plo

yees

11

Growth Projects: Increased Fuels and Plastics

Existing Post SRIP Post LPP0

2000

4000

6000

8000

10000

12000

14000

7267

11527 11265

982

926 1001

Refined Products

Others

Fuels

Pro

du

cti

on

kT

A

Existing Post SRIP Post LPP0

500

1000

1500

2000

2500

982 926 1001

245 350

1359

Petchem Products

PlasticsAromatics

Pro

du

cti

on

kT

A

Enhanced Refinery and Petrochemical Integration

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Existing Post SRIP Post LPP -

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

7.0

10.7 10.9

1.4

1.4 1.5

0.3

0.6 2.6

1.4

1.1

0.6

OthersPlasticsAromaticsFuelsP

rod

uct

ion

kT

A

2014 2016 2018

3.7

0.3

2.0USD 10 bn

USD 15.6 bn

USD 13.8 bn

Diversification away from Refinery Margins

Growth Projects: Increased Revenues

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Growth Projects: Increased exported products

2014 2016 2018 -

2.0

4.0

6.0

8.0

10.0

12.0

Refinery Sales

Fuels Sold in Oman Fuels Sold International

US

D B

n

Growing fuel needs are shall be met

Opportunity for plastics downstream industries as ample feedstock resin shall be available

2014 2016 2018 -

0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50

Petrochemical Sales

Petrochemicals Dom Sales Petrochemicals International Sales

US

D B

n

The Petchem sales in 2016 are lower since light Naphtha which was sold under AP, is now feedstock for SRIP in 2016 and hence consumed internally

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Profitability set to grow in the future due to deeper conversion and enhanced value addition.

Growth Projects: Increased Profitability

2014 2016 2018 -

5.0

10.0

15.0

20.0

25.0

Gross Margin per bbl

Gross Margin - Refineries Gross Margin - Petchem

US

D/ b

bl

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Orpic Overview

Growth Projects

Opportunities to Oman

Outline

16

Key Benefits Summary

Oil & Gas E&P And R&M Sectors

Petrochemical Industry

Plastics Processing

Industry

Application industries Consumers

Government Polymer Resin / Processing Industry (SMEs)

Economy / Consumers

Value addition from well head to plastics end-users

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Key Benefits to SMEs

Compounders

Other Plant & Equipment

Wholesale Trade

Decorating &

Assembly

Additives

Software

Machinery Suppliers

Final Goods/End Users

Processors• Custom• Captive

Resin Suppliers(PP, HDPE,

LLDPE)

Recyclin

g

Distributors

18

Click icon to add pictureHigher contribution of Manufacturing Sector

Further diversification

Increased Revenues from exports (USD 3.9bn in 2011, 40%)

Job creation

Key Benefits to Economy

1

Musab Al Mahruqi – CEOOman Oil Refineries and Petroleum Industries Co. SAOC