Upgrade & Enhancement of Facilities

The upgraded refinery will be strategically positioned to address the future challenges and take advantage of potential business opportunities.

Upgrading will be done as follows:
• Petrojam Limited Purchased the ESSO Dock in October 2006, with the intention to use it to supplement the refinery dock.
  Reasons are as follows:
  1. The Refinery Dock is experiencing high level of occupancy/usage, >80%. This does not provide enough time for maintenance works on the refinery main dock.
  2. Due to high occupancy, high demurrage costs are being incurred which are paid for in foreign exchange.
  3. Risk of business interruption if the main dock experiences significant damage.
  The scope is as follows:
  1. Perform civil rehabilitation of the structure of the docking facility
  2. Route piping to the facility
  3. Install equipment such as crane and lighting
  Benefits/Justification:
  1. Reduced demurrage due to waiting ships.
  2. Decrease dock occupancy of the main dock (current occupancy >80%, this is too high).
  3. More windows being available to perform maintenance works at the dock.
  4. Reduction of risk of business interruption in the event of significant dock damage.
  Status:
  1. Currently executing civil repairs
  2. Piping installation and materials are currently being tendered. Piping to be installed in Two Phases (Phase 1 and 2)
  3. Electrical work in design phase
• Upgrade of the refinery's crude capacity from 36 kbbls/day to 50 kbbls/day (39% increase).
• Installation of a new catalytic reforming unit with capacity of 7,500 bbls/day.
• Installation of a new desulphurisation facility to reduce the sulphur content in diesel oil from 5,000 ppm to approximately 15 ppm.
• Installation of a new vacuum tower (nominal capacity 30kbbls/day) to produce vacuum gas oil for export.
• Installation of a Delayed Coker Unit (15 kbbls/day) for the conversion of the vacuum residue into higher quality products such as gasoline, jet fuel and diesel. The Petcoke by-product, which costs much less than the price for fuels such as coal, will be sold locally as fuel for power generation.

Summary Comparison (March 2007)