Shell Refining Company (FOM) Berhad Business Information

Shell Refining Company (Federation of Malaya) Berhad

Shell in Malaysia - Main Businesses Exploration & Production • Exploring for, developing & producing oil and gas through 19 Production Sharing Contracts (PSC’s) • Largest gas producer, recent oil discoveries • Technology leaders

Operating Dimensions

• Planned Capital Investment of more than RM 12 Billion 2003– 2007

Oil Products • Refining - SRC • Marketing • Trading

• Job creation for over 5,000 talented people

• Distribution & Supply • Industry Retail leader with over 815 retail stations

Gas & Power • MLNG 2 and 3 shareholder • Shell Middle Distillate Synthesis (SMDS) • World’s only commercial gas-to-liquid plant

..... and, Global & Regional hubs

• Every Shell barrel of crude oil sent to Port Dickson refinery and ~ 90% of refined products sold in Malaysia

SRC & Shell Malaysia ACQUIRE CONCESSION BLOCK EXPLORATION ACTIVITIES

• Tender •for Acreage • Signing Contract with PETRONAS

PRODUCTION ACTIVITIES

• Aerial Surveys • Geological Surveys • Marine Seismic Surveys

EXPORT/ TRANSPORTATION

• Appraisal Drilling • Development Activities • Installing Platforms

STORAGE

REFINING

Oil Products

In Refinery ( Port Dickson)

Distribution and Retail

Storage In Tanks

Secure crude supply & products outlet !

Oil Products Business in Malaysia - Outlets for SRC Products • 816 retail stations • 18 depots

Langkawi

S.Bay Labuan

Sandakan

ASB Labuan Bagan Luar

Ipoh

Kerteh

Tawau

T.Gelang

West Port

SRC Port Dickson

LDatu

Bintulu

KVDT M PP

Sibu

!Bulk Products !60:40% equity !Capex RM 1.6 mil

!Bulk Products !LPG !50:50% equity

Kuching

Melaka

!130 km 16” pipeline !40:40:20% shareholding !Capex RM334 mil

Pasir Gudang

Shell

Locational Exchange

Petronas

Joint Operations

Joint Shell Refineries

Esso Petronas

Shell Refining Company (Federation of Malaya) Berhad

Shell Refineries in the Region

Shell Refining Co (FOM) Bhd (Shell 51%) 125,000 bbls/day: Complex

Shell Eastern Singapore (Shell 100%)

Phil Shell Petr. Co Philippines (Shell 65%) 153,000 bbls/day: Hydroskim

465,000 bbls/day: Complex

Shell Refining Company (Federation of Malaya) Berhad

SRC - Corporate Information •

Principal Activities: Refining and Manufacturing of Petroleum Products

•

Incorporated in Malaysia on 19th September 1960.

•

Listed in the Main Board of KLSE on 29th October1962 with 25% Malaysian public participation. Current public participation is 49%.

•

Paid up capital of RM 300 Million (USD 1 = RM 3.80)

•

Turnover of RM 7.5 Billion (as per 2004 audited accounts)

•

ROACE: 36% (as per 2004 audited accounts)

•

In 1999, completed RM 1.4 Billion investment in Malaysia’s first Long Residue Catalytic Cracker (LRCC) with significant value-add to the Company operations

As at 15th May 2005: Share Price = RM 9.25

Market Cap = RM 2.78 Billion

P/E ratio = 4.1 Shell Refining Company (Federation of Malaya) Berhad

SRC Organization Chart Managing Director Raja Ahmad Murad

Snr. Manager OPERATIONS Mart Nieskens

Snr. Manager ENGINEERING Ammeran Mad

! Marine ! Project Management ! Plant Operation ! Maintenance ! Contracting & ! Operations Procurement Safety ! Mechanical ! Electrical ! Instrument ! Inspection ! Infrastructure Service

Snr. Manager TECHNICAL SERVICES Gro Cederlof

! IT ! Lab ! Process Technology ! Environment

Manager FINANCE Taufik Albar

! Investor Relations ! Controls & Governance ! Financial & Management Accounting ! Oil Accounting ! Customs

Manager QUALITY & HSSE Jong Lee Fah

! HSSE ! Quality ! Social Performance

Manager HUMAN RESOURCE Mohd Azri

! HR Services ! Learning & Development

Manager ECONOMICS & SCHEDULING Tony Eales

! Economics + Scheduling •Business Dev

Advisor CORPORATE AFFAIRS Fardzillah Abdul Manap

Shell Refining Company (Federation of Malaya) Berhad

SGBP – How we conduct our business … •

Honesty

•

Integrity

•

Respect for people

As well as … •

Openness

•

Trust

•

Professionalism

•

Teamwork

Shell Refining Company (Federation of Malaya) Berhad

OBJECTIVES

Co mm u

nic ati on

Competition

e Th

ity n mu m Co

The objectives of Shell companies are to engage efficiently, responsibly and profitably in the oil, gas, chemicals and other selected businesses and to participate in the search for and development of other sources of energy. Shell companies seek a high standard of performance and aim to maintain a long-term position in their respective competitive environments.

ES I T LI s B I S r

R

Shell General Business Principles (SGBP)

s N holde rs es n O i e e P r m s us ES Sha sto yee o b Cu plo y d Em the iety om oc wh S it h W

Economics Principal

B us in Inte ess grit y

Health, Safety And the Environment

Political Activities Of companies Of employees

Shell Refining Company (Federation of Malaya) Berhad

SRC’s Vision To Be The

Top Performing and

Most Admired Refinery in Asia

Shell Refining Company (Federation of Malaya) Berhad

Our Mission To continuously deliver Shareholder Value by: •

Manufacturing and supplying Oil Products and services that satisfy the needs of our customers.

•

Constantly achieving operational excellence

•

Conducting our business in a safe, environmentally sustainable and economically optimum manner.

•

Employing a diverse, innovative and results-oriented team of professional people motivated to deliver excellence.

Shell Refining Company (Federation of Malaya) Berhad

Our Objectives We are committed to deliver a sustainable excellence in business performance that meets Best-in-Class targets by end of 2005. Our major objectives for 2005 are: •

Operational excellence

•

Deliver continuous sustainable Health, Safety, Security and Environmental excellence

•

Meet our customer requirements

•

Deliver structural cost reductions

•

Maximise refinery margin

•

Safeguard asset integrity

•

Realise the potential of our people

Shell Refining Company (Federation of Malaya) Berhad

SRC Brief History LRCCU LRCCUComplex Complex ......125 kbbl/d 125 kbbl/d Debottleneck Debottleneck to to105 105kbbl/d kbbl/d Debottleneck Debottleneck to to90 90kbbl/d kbbl/d CD CDNo. No.22 ......75 75kbbl/d kbbl/d Debottleneck Debottleneck to to30 30kbbl/d kbbl/d

Platformer PlatformerIIII Mogas Mogastrebled trebled

New New20 20kbbl/day kbbl/day Hydroskimming Hydroskimming Refinery Refinery

1963

1967

1974

1982

New NewJetty Jetty

1988

1991

1993

1999

Shell Refining Company (Federation of Malaya) Berhad

SRC Dimensions RATED CAPACITY

125,000

Barrels/day

LICENSED CAPACITY

156,000

Barrels/day

CAPEX

20 - 30

RM million

OPEX

120

RM million

STOCKS

3.5/ 30

mil bbl/days

STAFF

280

Shell

150

Contractor

Up to CRUDE TANKS

11

PRODUCT TANKS

78

POWER CONSUMPTION

28

SINGLE BUOY MOORING

1

JETTY

3

PROCESSING UNITS

1 Long Residue Catalytic Cracker

MW Berths

2 Crude Distillers Semi and Continuous Reformers

Shell Refining Company (Federation of Malaya) Berhad

SRC’s Refinery in Port Dickson

How we bring crude oil into the refinery... SBM (Single Buoy Mooring)

• Capacity 150 K Tons (Medium Range Vessels) • Throughput 6 Million Tons per Year • 110 Ships per Year

Shell Refining Company (Federation of Malaya) Berhad

Jetty Facilities

• 3 Berths Jetty • Capacity up to 12,000 Ton vessels • Throughput 2.5 Million Tons per Year • 700 Ships per Year

Shell Refining Company (Federation of Malaya) Berhad

The Long Residue Catalytic Cracker

Reactor

Catalyst Hoppers

Products

Regenerator Separation & Treatment

Air

Long Residue Shell Refining Company (Federation of Malaya) Berhad

SRC Product flow to customers

DISTILLATION

Propylene LPG

CRUDE OIL

REFORMER

Gasoline Kerosine

TREATERS

Diesel

LONG RESIDUE CATALYTIC CRACKER ELECTRICITY

Fuel Oil Component

Shell Refining Company (Federation of Malaya) Berhad

Pre LRCC

Post LRCC

105,000 barrels per day

125,000 barrels per day Propylene LPG

Crude Oil

Petrol LPG Petrol Kerosine

Kerosine

Diesel

Diesel

Marine & Power Fuel

Fuel Oil Components

Bitumen

Sulphur

The LRCC: • Enabled premium products to be produced – V-Power, Propylene • Quadrupled LPG production • Doubled motor gasoline output Shell Refining Company (Federation of Malaya) Berhad

SRC – Crude Type FE-Light or Equity

FE-Heavy

ME

Tapis Labuan Bintulu Bintulu Condensate

Bach Ho Minas Ruby Kekwa XiJiang Widuri Cinta

Oman Murban

Shell Refining Company (Federation of Malaya) Berhad

Refining Margin Composition

Margin /bbl

Malaysia location & quality premium Crude cost

Singapore product value Freight cost

Gross Refinery margin

Refinery operating costs

Net Refinery margin

Shell Refining Company (Federation of Malaya) Berhad

Striving towards continuous improvement !

2004 NACRA Award (for 2003) 2004 NAfMA Award 2004 Comply to ISPS 2004 MSOSH Gold Award (for 2003) 2004 5 Mln Hours Lost Time Incident Free 2003 NACRA Award (for 2002) 2003 Prime Minister’s Hibiscus Award Notable Achievement (for 2002)

2003 Achieved ISO 9001:2000 2002 NACRA Award (for 2001) 2002 Prime Minister’s Hibiscus Award Exceptional Achievement (for 2001) 2002 MSOSH Gold Award (for 2001) 2001 Certified to OHSAS 18001

2001 Achieved ISO 17925 2001 MSOSH Gold Award (for 2000) 2000 Certified to ISO 14001

SRC also participates in continuous benchmarking against other Shell and non-Shell refineries

Shell Refining Company (Federation of Malaya) Berhad

The End

Shell Refining Company (Federation of Malaya) Berhad