Refining Process Development in NIS j.s.c. Novi Sad, Increasing Refining DepthConstruction of Delayed Coking Unit in Pancevo Oil Refinery

November 14th 2018Andrey DyugProject Management Team

2

REFINING MODERNIZATION STAGES, NIS J.S.C.

2

Second phase of refinery modernization:Construction of Bottom-of-the-Barrel, with DCU technology

2009 2013

Complex VGO Hydrocracking

2009 -

FCC and alkylation

Primary distillation and gas plant

Phase 1 Phase 2Base

2013-20152015-2019 2019

SRU

HGU

LNG Storage

Unified Control Room

Off-sites

FCC

Loading Jetty

SRU

Modernization

Loading Facility

New

construction

DCU Complex

Complex VGO Hydrocracking

Off-sites

Merox

New construction

Modernization

Diesel and gasoline hydrotreating

Aromatics extraction

Catalytic reforming

Bitumen and fuel oil production

3

SIMILAR UNITS OF COMPANIES IN THE REGION

3

Refineries –producers of fuel grade coke

Cement factories

Slovenia

Croatia

Romania

Serbia

Macedonia

Albania

Montenegro

Slovakia

Hungary

Bosnia and Herzegovina Bulgaria

DCU construction at the Rijeka refinery, coke

production is planned from 2022

Holcim

Titan

Lafarge

Italcement

Cemex

Heidelberg

Others

TPP

50

20

10

15

202050

20

40

40

6040

100

2030

75

40100

50

50

40

40

20

100

60

30

30

STRUCTURE OF THE MAJOR

COKE CONSUMERS

DCU construction at the NIS Oil refinery Pancevo,

coke production is planned from 2019

4

GENERAL INFORMATION ON THE PROJECT

4

Project activities start-up 2015

Start-up of construction 2017 г

Start-up of production Q3 2019

MODEL OF THE FUTURE UNIT

BASIC PHASES OF IMPLEMENTATION BASIC PROJECT PARAMETERS

BASIC OBJECTIVES OF THE PROJECT

• Achieving maximum EBITDA by increasing refiningdepth and production of high profitable products withrespect to market demand and limitations.

• Elimination of production of heavy fuel oil to meet theEU environmental requirements by 2019.

• Maximum efficiency in utilization of the existingcapacities and infrastructure of the Pancevo OilRefinery.

CAPEX US$ 330 M

PI 1.80

PP/DPP 9.1/11.6

5

CURRENT STATUS OF THE PROJECT

5

MILESTONES – HISTORICAL OVERVIEW:

• Approval of the base case and FEED start – April 2014• Completion of FEED Design – February 2016• Approval phase “Implementation”– July 2016

KEY ACTIVITIES COMPLETED:

• All critical equipment contracted – August 2016• EPCm Contractor selected – October 2016• Start of construction works – July 2017

III IV I II III IV I II III IV I II III IV

Selection of EPCm contractor for WP1

Selection of EPCm contractor for WP2

Preparatory works for construction site

Obtaining Construction Permit

Detail Design

Procurement and delivery of Long Lead Items

Procurement and delivery of key equipment

Construction and pre-commissioning for WP1+WP2

Commissioning and Start-up

LEGEND:

PLAN

ACTUAL

FORECAST

Activity2016 2017 2018 2019

Signed

contracts

EPCm Contractor

for WP1 selected

Ready for

Start-up

3D 90%As-Built

documentationCompressor fabricated and ready for shipment

EPCm Contractor for

WP2 selected

Construction Permit July 10, 2017

curr

en

t st

atu

s

Coke cutting system delivered

6

PROJECT KEY EVENTS COMPLETED IN 2018

6

• Main foundations and steel structures constructed

• Oversized and heavy equipment installed

• Design for construction of revamped units completed

• Coker heater assembly finished

• Delivery of long lid item and critical equipment completed

7

„BOTTOM OF THE BARREL“ CONSTRUCTION SITE

7

8

COKE HEATER ASSEMBLY

8

9

PUMP INSTALLATION

9

10

EQUIPMENT ERECTION

10

11

PIPE RACK INSTALLATION

11

12

SPHERICAL TANKS ERECTION

12

THANK YOU