1

KEYS TO SUCCESSFUL REFINERIES THAT WILL REMAIN IN THE LONG-TERM

Crude mix turning heavier andmore sour

Rapid increase in capacityadditions facing threat of over-supply of products

More stringent environmentalregulations

Pressure on Refining Margins

MAJOR CHALLENGES FOR REFINERS

Oil price fluctuating

Increase in Utility cost

32

54.7

11.8

30.5

54.8

13.7

0

10

20

30

40

50

60

70

Light Medium Heavy

2000 2016

%

Oil Production is getting heavier

mbd

Sulphur Content in Crude is on the rise

The changes in Crude Quality expected to result in

✓ Changes in Refining Margin because of the differential price between Light-Heavy Crudes✓ Forcing refiners to adjust feedstocks more frequently to minimize feedstock price✓ Compelling refiners to invest in Secondary Conversion units (favouring more Complex refiners) &

Hydroprocessing to desulphurize products

IMPACT OF HEAVIER & SOUR CRUDE ON MAJOR REFINING DECISIONS

Source: OPEC WOO 2016 report Source: OPEC WOO 2016 report

25.0

42.5

28.2

52.8

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Sweet Med - High Sour

2000 2016

OVERSUPPLY OF REFINED PRODUCTS LEADING TO COMPETITION FOR EXPORT MARKETS

-0.5

0.0

0.5

1.0

2016 2017 2018 2019 2020 2021

Mid East US & Canada Russia & Cas Europe

Lat Am China Other Asia Africa

mbd

Regional Refining Supply vs Market Demand

Net Product Surplus are forecast to grow over the medium term

This could result in reduced utilizations and closures of low margin refineries

Ultimately resulting in fierce competition for export markets of refined products

-900-2800

-3700

2020 2030 2040

14001300 1300

2020 2030 2040

1900 1600 1900

2020 2030 2040

0

800

300

2020 2030 2040

-2800-2700

-2900

2020 2030 2040

-3300-4700 -5500

2020 2030 2040

38006400

8500

2020 2030 2040

1

2

3

4

56 7

US & Canada

Latin America

Europe Russia & Caspian

Middle East

Asia PacificAfrica

Source: OPEC WOO 2016 report

Source: OPEC WOO 2016 report

mbd

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

US &Canada

LatinAmerica

Africa Europe Russia &Caspian

MiddleEast

China Other Asia-Pacific

Gasoline/naphtha Middle distillates Vacuum gasoil/residual fuel

Conversion Capacity additions until (2016 – 2040) Projected Desulphurization capacity additions (2016 – 2040)

mbd

0.21

0.44

1.051.22

1.67 1.67

2.23

2.85

0.00

0.50

1.00

1.50

2.00

2.50

3.00

Europe US &Canada

Russia &Caspian

Africa LatinAmerica

MiddleEast

China Other Asia-Pacific

STRINGENT ENVIRONMENT NORMS FORCE REFINERS TO INCREASE CONVERSION CAPACITIES & DESULPHURIZATION

Increased pressure on refiners to install additional conversion units such as FCC, Hydrocracking, Coking, etc.

In order to meet stringent environmental regulations, Desulphurization investments expected to increase

Source: OPEC WOO 2016 report Source: OPEC WOO 2016 report

6

TAKREER’s APPROACH

7

TAKREER’s REFINING STRATEGY

LARGE SCALE PROJECTS

▪ Higher Capacities, henceeconomies of scale

▪ Increased refiningmargin

ROBUST REFINERY CONFIGURATION

▪ Increased ComplexityRefinery configuration

▪ Flexibility to handledifferent crudes

INTEGRATION

▪ Common Investment,Logistical advantage

▪ Better utilization ofAssets

DIVERSIFY PRODUCT PORTFOLIO

▪ Pet-Chem & Specialtyproducts

▪ Convert feedstock tohigh-value products

MARKET STRATEGYOPERATIONS EXCELLENCE

DIGITALIZATION

ORGANIZATIONAL TRANSFORMATION

▪ Long-term holisticcollaboration acrossvalue-chain

▪ Synergies with Partners(Assets & Markets)

▪ Safety & Asset Integrity▪ Energy optimization▪ Reliability

improvement & Assetutilization

▪ Using Technology toimprove Operations,Maintenance, HR,Business, Supply Chainprocesses

ASSET DEVELOPMENT

▪ Optimized Structure ▪ Procurement Strategy ▪ Organizational effectiveness ▪ Talent Development

ADNOC 2030 STRATEGY FOCUSING ON EXPANDING ACCESS TO MARKETS Increased Focus on People, Performance, Profitability &

Efficiency without compromising on Safety & Integrity

Accelerated progress of Smart Growth Strategy to:✓ Unlock potential & Maximize Value & Growth across

the business✓ Secure Technology✓ Improve Market-share and Access

New approach to Partnership /co-investment across theentire ADNOC value chain (built on ADNOC legacy ofsuccessful partnerships)

Support UAE dynamic economy, by improving skill andknowledge transfer and create new high-skilled jobs &career paths

Strengthen corporate governance model, having bestpractice processes & systems

Downstream Ventures to improve integration, synergies &technological capability to stretch value from each barrelto meet rising petro-chemical demands

Al Dhafra Al Yasat

ADNOC

Int.

ADP

60%

10%

3%5%

60%

40%

50%

50%

PTE Ltd

60% 13.33%

14.67%12%

60% 12%

28%

60% 40%

68% 15%

2%15%

70% 5%

10%15%

51% 49%

70% 5%

10%15%

66.67% 33.33%60% 40% 60% 40%

10%

8%4%

9

TAKREER’s JOURNEY TOWARDS VALUE ADDITION

Distillation, Hydrotreating & Hydrockracking

Resid Fluidized Cat Cracking& Base Oil

High Quality Distillate Fuel Production

Maximizing Polymer Grade Propylene

On-Purpose Propylene Production

Olefin Conversion & Propane

Dehydrogenation

Boosting Distillates Yield & producing

Anode Coke

Delayed Coker Unit & Calciner

Carbon Black Unit

Specialty Carbon Black product

Boosting Gasoline Fuel properties

Alkylation & Isomerization

Gasoline & Aromatics & Offshore Crude Processing

Val

ue

ad

dit

ion

“Consistent introduction of new products to Takreer’sportfolio to ensure continuous Value maximization “

20152014 2017 2018 2020

Reformate

CR

UD

E D

ISTI

LLER

DISTILLATE COMPLEX

OLEFINS COMPLEX

BOTTOM OF BARREL

UPGRADATION

Naphtha

Jet Fuel

Diesel

Propylene

Propane

Alkylate

Naphtha

Gas Oil

Anode Coke

Propylene

Carbon Black

Pro

du

ct S

lati

ng

Middle

Distillates

Atmospheric

Residue

Vacuum Residue

Propylene

Distillates

Carbon Black

Anode Coke

Aluminiumindustries

GASOLINE AND AROMATICS

COMPLEX

P-Xylene

Benzene

Benzene

P-Xylene

Naphtha from RR

(East) & RR (West)

Polyester Industries

Polystyrene Industries

Primary focus is to ensure security ofdomestic supply while simultaneouslytarget export market by supplying highquality refined products

Ability to produce fuels complying toEURO-V regulations that enables to sellproducts anywhere in the world ensuringthat UAE stays ahead in a closely heldrace.

Value maximization by production ofPetrochemical & Specialized products Polymer Grade Propylene Base Oil Specialty Carbon Black Anode Grade Coke P-Xylene and Benzene

“Vision is to improve margins, remain competitive & invest for sustained growth by further integration with

Petrochemical and other industries”

TAKREER’s HIGHLY COMPLEX REFINING CONFIGURATION WITH INTEGRATED FACILITIES

Base Oil

TAKREER’s INCREASE IN REFINING CAPACITY

Post commissioning of Ruwais Refinery West refinery (417 KBPD) catapults Takreer as one of the LargestRefineries in the World

World’s Largest Single train Crude Unit & World’s Largest RFCC with unique PetroRiser configurationdecreases the capital construction costs and OPEX resulting in increased refinery margin.

4th Largest Refinery in the World at a Single Location

647,000Barrel / Day

280,000Barrel / Day

927,000Barrel / Day

Crude Oil

Condensate

Naphtha

Propylene

Base Oil

Carbon Black

Anode Coke

Takr

ee

r R

efi

ne

ries

Fuel Oil/Residue

12

DIVERSIFIED PRODUCT PORTFOLIO BY MAXIMIZING FULL POTENTIAL OF TAKREER REFINERIES

Gasoline

Jet Fuel

Diesel

LPG

Feedstock for Petrochemical

Industry

Products Used as FuelsS

Specialty Products

0 %

Benzene

P-Xylene

13

INTEGRATION WITHIN RUWAIS REFINERIES

Reformate stream with High Benzene content fromRR(East) & ADRD is upgraded in Bensat Unit ofRR(West)

Propane stream from RR(East) as well as fromGASCO would be upgraded to Polymer GradePropylene in CBDC PDH unit

Vacuum Residue from RR(East) is fed to CBDCDelayed Coker Unit to upgrade to Anode Coke &Distillate products

Slurry Oil from RR(West) would be upgraded inCarbon Black unit and Delayed Coker Unit toproduce high quality Carbon Black & Anode Coke

Hydrogen stream is shared across RR(East),RR(West) & CB&DC

Distillate stream Gas Oil, Gasoline and Naphtha isshared across all 3 facilities for efficient productblending

GASOLINE & AROMATICS

NaphthaNaphtha

IsomerateReformate Naphtha from all RR(East), RR(West) & ADRD is

send to GAP for producing Gasoline & Aromatics

(OVERALL)

RUWAIS REFINERY

(EAST)

RUWAIS REFINERY

(WEST)

CBDC

GASCO GU

P

FE

RT

IL

BOROUGE

14

STRATEGICALLY LOCATED RUWAIS INDUSTRIAL COMPLEX

Strategic location of Ruwais and the presence of many downstream industries in the vicinityoffers great advantage in integration and logistics cost

15

TAKEER INTEGRATION WITH OTHER OPCO

Strategy is to integrate Refining into

petrochemicals, aromatics and lubricants, is to

build new marketing assets and capabilities.

Leads to improve the existing product portfolio

and economic fundamentals of Takreer, even

during scenarios where the refining margins are

lower in the industry.

CONCLUSION

Common Business

Strategic Advantage

Common Investment

Long Term Cooperation

Logistical Advantage

Lowering Risk from Oil

Price Fluctuation

NATION’S

DEVELOPMENT

17

THANK YOU