Product Quality Improvement Improvement ----PQIPQI

Product Quality Product Quality Product Quality Product Quality

Improvement Improvement Improvement Improvement ---- PQIPQIPQIPQI

26

To be Improved with PQI

USD/bbl

10

8

6

4

2

0

What is PQI ?What is PQI ? Result from PQIResult from PQI

CounterpartiesCounterparties

• PQI is the Investment in “Hydrocracking Unit” and

other supporting units

• These units enable BCP to turn current fuel oil

output to be gas oil without increasing the capacity

• Feasibility Study UOP LLC & Foster Wheeler Corporation

• Technology License UOP LLC

• EPC Contractor CTCI Corporation

• Project Mgnt Consultant Foster Wheeler Corporation

• Investment Cost USD 378 million• Construction Period May’06 – Sep’08

(28 months)

Investment & ConstructionInvestment & Construction

MEME FEFEMEME FEFE

CurrentSimple Refinery

AfterPQI Completion

Enhance

Crude Mix

Flexibility

Less FO

Output

Portion

Surge

GRM

CurrentSpread

CurrentSpread

FeasibilitySpread

LPG, 3%

LPG, 3%

LPG, 3%

LPG, 3%

Diesel, 37%Diesel, 37%Diesel, 37%Diesel, 37%

ULG, 15%ULG, 15%ULG, 15%ULG, 15%

Jet Fuel, Jet Fuel, Jet Fuel, Jet Fuel,

14%14%14%14%

Fuel Oil, Fuel Oil, Fuel Oil, Fuel Oil,

31%31%31%31%

LPG, 5%

LPG, 5%

LPG, 5%

LPG, 5%

Diesel, 52%Diesel, 52%Diesel, 52%Diesel, 52%

ULG, 25%ULG, 25%ULG, 25%ULG, 25%

Jet Fuel, Jet Fuel, Jet Fuel, Jet Fuel,

9%9%9%9%

Fuel Oil, 9%Fuel Oil, 9%Fuel Oil, 9%Fuel Oil, 9%

27

EBITDA after PQIEBITDA after PQIEBITDA after PQIEBITDA after PQI

“Return from investment competitive in long-term, hence BCP decided to pursue PQI”

Note: (1) EBITDA 2008F-2011F based on GO/DB USD15.25/bbl and FO/DB USD(12.51)/bbl(2)EBITDA (feasibility study) 2008F-2011F based on GO/DB USD10.5/bbl and FO/DB USD(3)/bblBoth cases based on gradually growing crude run from 65 KBSD before COD after that run max 100 KBSD

(1)

(2)

-

2,000

4,000

6,000

8,000

10,000

12,000

2003

2004

2005

2006

2007

F

2008

F

2009

F

2010

F

2011

F

THB mil

-

2

4

6

8

10

12

USD/bblEBITDA

EBITDA (feasibility study)

GRM

GRM (feasibility study)

28

Equity from PTT + FI 6,579

Loan 8,400

Operating Cash 390

Total 15,369

Equity from PTT + FI 6,579

Loan 8,400

Operating Cash 390

Total 15,369

EPC Contract Price 11,163

Owner supplies and other costs 1,505

Financing Cost (Net) 863(1)

Contingency 1,231(2)

Total 14,762(3)

EPC Contract Price 11,163

Owner supplies and other costs 1,505

Financing Cost (Net) 863(1)

Contingency 1,231(2)

Total 14,762(3)

Excess cash Bt 607 millionExcess cash Bt 607 million

Note: (1) Using fixed deposit rate of 5% (Interest receive from equity proceed)

(2) Using FX of Bt 41.03 per USD for conservative purpose.

(3) BCP has hedged all of FX exposure and interest rate risks, excluding contingency.

Sources vs. Uses of FundSources vs. Uses of FundSources vs. Uses of FundSources vs. Uses of Fund

Use for Additional PQI EnhancementUse for Additional PQI EnhancementUse for Additional PQI EnhancementUse for Additional PQI EnhancementUse for Additional PQI EnhancementUse for Additional PQI EnhancementUse for Additional PQI EnhancementUse for Additional PQI Enhancement

SourcesSourcesSourcesSources

UsesUsesUsesUses

Loan draw down (tentative) Loan draw down (tentative) Loan draw down (tentative) Loan draw down (tentative)

Total 6,330Total 2,040Total 30

1,774*2,040-

2,237--

820-30

1,499--

Y2008Y2008Y2008Y2008Y2007Y2007Y2007Y2007Y2006Y2006Y2006Y2006

Q1Q1

Q2Q2

Q3Q3

Q4Q4

Million Bt.

8,5258,5258,5258,525

2,6852,6852,6852,6852,5282,5282,5282,528

1,3011,3011,3011,301722722722722

1,3671,3671,3671,367

0000

2,0002,0002,0002,000

4,0004,0004,0004,000

6,0006,0006,0006,000

8,0008,0008,0008,000

10,00010,00010,00010,000

2007 2008 2009 2010 2011 > 5 Years

Q1Q1

Q2Q2

Q3Q3

Q4Q4

Q1Q1

Q2Q2

Q3Q3

Q4Q4

2007 2008 2009 2010 2011 > 5 Years

Million Bt.

Loan repayment schedule (Loan repayment schedule (Loan repayment schedule (Loan repayment schedule (Existing+PQIExisting+PQIExisting+PQIExisting+PQI))))

* Included Contingency Million Bt.

Million Bt.

29

0

10

20

30

40

50

60

70

80

90

100

110

Project Month & Accumulate %Project Month & Accumulate %Project Month & Accumulate %Project Month & Accumulate %

Progress %

Progress %

Progress %

Progress %

Plan 0.2 0.9 2.3 4.4 6.4 8.1 9.5 10.4 11.4 13.1 15.8 19.5 24.6 33.6 42.8 52.2 61.0 69.9 78.9 87.9 91.6 94.5 97.1 98.5 99.2 99.7 99.8 100.0 100.0100.0

Actual 1.0 2.5 3.0 5.6 8.0 8.7 9.7 11.2 15.0 18.5 20.9 23.4 30.2 34.1

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

All LLIs

delivery to site

Ready for piling

and civil work

Piping and Instrument

Diagram for

const ruction

Start of Distributed Cont rol

System factory acceptance test

Substation Power

no.5 energizedMechanical

Completion

Provisional

Acceptance

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Month

Jun

Jun

Jun

Jun-- -- 07

07

0707

2006 2007 2008

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep OctMay Jun Jul Aug Sep Oct

Overall Progress Curve Overall Progress Curve Overall Progress Curve Overall Progress Curve ((((EEEE////PPPP////CCCC))))

30

0000

20202020

40404040

60606060

80808080

100100100100

120120120120

JanJanJanJan AprAprAprApr JulJulJulJul OctOctOctOct JanJanJanJan AprAprAprApr JulJulJulJul OctOctOctOct

Production PlanProduction PlanProduction PlanProduction Plan

2007 2008

KBDKBDKBDKBD

Capacity (KBD)Capacity (KBD)Capacity (KBD)Capacity (KBD)

Plant no. 2Plant no. 2Plant no. 2Plant no. 2 40

Plant no. 3Plant no. 3Plant no. 3Plant no. 3 80

TotalTotalTotalTotal 120120120120

Expected Expected Expected Expected PQIPQIPQIPQI’’’’ssss

Commercial Commercial Commercial Commercial

Operation Date Operation Date Operation Date Operation Date

• Turnaround Plant 2 & 3Turnaround Plant 2 & 3Turnaround Plant 2 & 3Turnaround Plant 2 & 3

• Total shutdown ~ 12 daysTotal shutdown ~ 12 daysTotal shutdown ~ 12 daysTotal shutdown ~ 12 days

• TieTieTieTie----in PQIin PQIin PQIin PQI

Actual

Plan

31

ObjectiveObjective• COD - Beginning 4Q,08

• Run up to 100 KBD

• No Event of Defaults

Logistic

Manufacturing

Sale

PR

Finance

HR

IT

Preparation ensure PQI CompletionPreparation ensure PQI CompletionPreparation ensure PQI CompletionPreparation ensure PQI Completion

32

ObjectiveObjective

Logistic1. Crude Receiving

Facility

2. Barge Fleet

3. LP & Simulation

4. NG Supply Contract

5. Fuel Own used Plan

6. Crude Supply Plan

Sale

PR

Finance

HR

IT

Manufacturing


• COD - Beginning 4Q,08



33

ObjectiveObjective

Manufacturing

1. MCRT

2. NG Supply System

3. DCS Upgrading

4. Additional LR Feed

Line

5. Boiler Preparation

6. Tank ReparationSale

PR

Finance

HR

IT

Logistic





34

ObjectiveObjective

Sale

1. PTT/Supply Sale/Export

2. Retail Sale

3. Industrial Sale

4. Depot Facility

PR

Finance

HR

IT

Manufacturing

Logistic





35

ObjectiveObjective

IT

1. IT System Implementation:

Oil Record, L/P, Simulation

2. Lab Information System

3. Management Information

Sale

PR

Finance

HR

Manufacturing

Logistic





36

ObjectiveObjective

PR 1. Road Show /

External PR

2. Internal PR

Sale

Finance

HR

IT

Manufacturing

Logistic





37

ObjectiveObjective

Sale

PR

Finance

HR

IT

1. Recruitment

2. Training

3. Office Expansion

4. Individual KPI

Manufacturing

Logistic





38

ObjectiveObjective

Finance

1. Working Capital Preparation

2. Loan Management

3. Contingency Reserve

Sale

PRHR

IT

Manufacturing

Logistic





Other ProjectsOther ProjectsOther ProjectsOther Projects

40

Cogeneration Power Plant Cogeneration Power Plant Cogeneration Power Plant Cogeneration Power Plant

Stability of Electricity�s Plant System is increased

Increase efficiency of public utility system using energy

Save money of building reserve boiler about 2.1 M$

Expense decreasing from producing and buying electricity and stream

Saving from using Natural Gas instead of Fuel Oil

BenefitBenefit

� Since PQI Project will has done, electricity and

steam demand will be increased.

15.7

12.1

3.6

76

Change

+

29.1

20.9

8.2

13.4

8.8

4.6

Electricity Demand (MW)

By ourselves

Buy from Metropolitan

Electricity Authority

15680

Steam Demand (Ton/Hour)

By ourselves

After PQI

Project will

has done

CurrentDemand @ Crude Run 100

KBD

about 1,000 square metersSpace

December 2008COD

90 tons per hourSteam Capacity

After 25 years then transfer ownership to BCPOperate Period

Vary to CPI and GPI,CPI = Consumer Price IndexGPI = Gas Price Index

Steam Price

MEA minusElectricity Price

19.7 MWElectricity Capacity

HOA SummaryHOA Summary

41

Business DevelopmentBusiness DevelopmentBusiness DevelopmentBusiness Development

►Bio Diesel Plant at Bang-Pa-In capacity 300,000 Liters per day

►Using Natural Gas instead of Fuel oil

►Euro 4 Standard

►Service Station Rebranding & Expansion

Documents

Product Quality Improvement Improvement ----PQIPQI