MINI REFINERIES

Above: 2000 barrel per day Arctic Refinery, Inset: 4 x 150 barrel per day Tropical Refineries

The range of crude oil

Mini-Refineries

Years of experience as both an operator and a manufacturer of mini-refineries, has enabled us to combine modern technology with operational experience to produce the practical and field proven crude oil mini-refinery. They are available in a range of standard processing capacities from 150 barrels per day up to 4000 barrels per day. Other design capacities can be manufactured on request.The mini refinery will separate the basic components of the crude oil into light (heavy gasoline boiling range), medium (kerosene and automotive distillate boiling ranges) and heavy (fuel oil boiling range) product steams. They are typically used to make automotive diesel (and jet kerosene if required) by extracting these products from the crude oil and returning the other by-products to the pipeline stream if local markets for these by products do not exist. Optional vacuum distillation of the fuel oil stream will extract vacuum gas oil. This can be used as a heavy distillate plant fuel or can be blended with the diesel to improve overall plant yields. Further optional processing of the light oil stream to reform its molecules into an automotive grade of gasoline can also be achieved although this option will significantly increase the cost and complexity of the mini refinery.Design Principles A mini-refinery often finds application in remote or inaccessible areas where local fuel supplies are relatively expensive or unreliable because of transportation logistics. Where construction criteria calls for a refinery that can be quickly erected at the site with a minimal requirement in terms of site civil works, specialist equipment and skilled labour which are all expensive to provide in such regions. The concept is therefore a highly transportable refinery that uses skid mounted or containerized modules which have been pre-fabricated, factory equipped and operationally tested so as to minimise the installation and commissioning costs on site.Operational reliability is enhanced by attention to good process engineering design as well as through the selection of superior materials and components.

The operator interface and safety features of the refinery have been specifically designed to allow the plant to be operated and maintained by personnel with a sound technical competency but who do not need to be skilled refinery engineers.The standardized container design can also be readily adapted to suit a marine platform or arctic environment or can be specially customized for particular applications. Winterized design for artic conditions has been field proven in a number of installations in Russian Siberia.

Above: Product Pump Module-2000 bpd refinery

Below: Product Pump Module- 150 bpd refinery

Design Benefits The refinery is highly automated with an emphasis on operational safety. The plant operator monitors and controls all facets of plant operation via a Windows based PC screen located remote from the plant in the Customer's control room. This plant operator interface is displayed and controlled through the language of the host country to simplify operations. A unique software control feature is fully Automatic Logic System (ALS) which provides the ability to adjust the relevant refinery process settings without direct operator intervention to automatically correct for plant variations or ambient conditions. Although the PC provides the operator interface, the actual plant operation is separately controlled by programmable logic controller (PLC). The PLC safely oversees an uninterrupted plant operation, even if the PC is off-line. Additionally there are hard wired shutdowns to the control room to allow the operator to manually shut down the furnace flame or plant in an emergency.High operational reliability has been achieved with experience through the use of field proven instrumentation and equipment. Pneumatic controls and actuators while cheaper in cost, are problematic and unreliable in remote situations where there is often limited technical support. Instead the refinery uses electrical stepper motor equivalents. The use of steam also causes operational problems in terms of government regulation and the need for certified boiler operators. A water disposal or treatment facility is also needed to handle the oily or phenolic waste- water from the condensed steam. Water cooling also gives rise to operational problems associated with water pre-treatment, corrosion inhibition and anti-scaling which is often not able to be easily handled in a small plant setting. For all these reasons the refinery operation does not require any cooling water, steam or instrument air for its operation. The only utilities consumed by the refinery are electric power plus some bottled nitrogen or carbon dioxide (for purge gas during plant start-up).The refinery is broken down into transportable modules, sized on standard shipping containers. This makes for easy transportation logistics

whether by road, sea or even air. The refinery unit can be lifted and supported on piles if required.It is recommended that a concrete slab be laid underneath the refinery installation to contain spills and to facilitate site maintenance.The refinery can be offered in a fully stainless steel version if corrosion is expected to be a problem. Although the initially proposed feedstock may not suggest any potential corrosion problems, the customer should consider the possibility that feedstock quality may diminish in future years. This could occur for example when new oil fields are connected upstream of a pipeline supplying the refinery feedstock. Although stainless steel has a higher fabrication and supply cost compared to mild steel, it does provide operating cost savings by eliminating the need for anti corrosion chemical injection systems and filtration systems to remove corrosion products. The use of stainless steel allows the plant to tolerate higher levels of salt and water in the feedstock. In many cases this means that the additional capital and operating costs associated with feedstock pretreatment can be eliminated.Other than foundations to support the distillation tower, prepared foundations for the plant are not required. The refinery can also be made available in a version having a self-supported tower in which case no tower foundation preparations will be required.Construction standards The refinery is constructed to the relevant and recognized engineering standards and codes. All vendor-supplied components are rigorously selected for code compliance. Standard vessel construction is AS1210 which is at least equivalent or superior to ASME V111 Div 1. All pipe welds are to the ASME B31.3 standard or to the AS4140 code and NDT tested as required. All electrical instrumentation and equipment is explosion proofed as required by code standards.Any additional construction requirements needed for national code compliance or certification can be accommodated on request.The international System of Units is used in all drawings, calculations and documents.We have a management program for Quality, Safety and Environmental implementation in

accordance with the requirements of AS/NZA ISO 9000/9001.Operational requirements No special skills other than basic technical competency are required for the day to day operation of the unit. However it is recommended that the plant shift operators have access to technical supervisory support. If the refinery is located within the boundaries of a larger plant facility, that supervision could be provided by a facility supervisor on an as required basis. No dedicated maintenance personnel are necessary.Minimum recommended manning levels to operate a mini-refinery are therefore:

Supervisor 1 x on callRefinery Operator 2 x 12 hour shifts

Supporting services Installation and commissioning The Customer is required to supply all piping and electrical connections up to the battery limits of the unit. A small installation team can then be dispatched to fully install and commission the unit refinery at the customer's site when required. We can provide recommended site plans and layouts to assist the customer with the required site works.

Training All training of the customer's personnel can be undertaken by us during plant testing and during installation and commissioning at the customer's site.

Documentation We provide full documentation in terms of data sheets, engineering drawings and operating and maintenance manuals for each of our refineries.

Spare parts We provide a spare parts list setting out the recommended spares required for commissioning, 2 years of Operational Spares and Capital Spares which the customer can adapt to suit his

application. Standardization of components within the unit result in a reduced requirement for spare parts.

A spare parts inventory will minimize the potential for the unit downtime. Although large capital equipment items which are provided under the Capital Spares list should not fail under normal service conditions, such replacements generally have a long lead time of up to a number of months between ordering and delivery. The cost of carrying Capital Spares has to be weighed up against the cost of bringing in alternative fuel supply during an extended plant shutdown or the possibility of effecting permanent or temporary repairs locally.A range of laboratory equipment to control and verify product quality and specification can also be supplied.

Technical Support We are available for any further assistance and backup support on request. Maintenance contracts or site visits for troubleshooting or training can be arranged.

Optional processes We can offer optional processes for desalting, dewatering, vacuum distillation, mercaptan removal, thermal reformers, catalytic reforming and hydro treating.

MEGION, TYUMEN REGION, RUSSIA

One M2000 (2000BPD)Arctic Version Refinery unit operating at the Vatinsk Central Park, Megion, Siberia, Russia

Location details (approximate only) 61 North 76 East

Altitude above sea level 1000 feetTemperature range -50C to +40

MICROSTILL UNIT INSTALLATIONS

MEGION, TYUMEN REGION, RUSSIA

This unit is ideally suited for the year round refining of crude oil in a region where temperature can vary from +40C in summer to -50C in winter. The unit has been designed to readily commence production from a cold start even in mid winter.

The refinery feed stock is supplied from a nearby pipeline to provide refined fuels for the local region. Up to 2400 barrel per day of crude is being processed through this refinery.

The unit was installed in August 1998 and achieves the following summer product slate:

PRODUCT YIELD

Naptha 16%Diesel 36% GOST 305 - 82Residue 48% COST 10585 - 75

STREZHEVOY, SIBERIA, RUSSIA

Two M 150 (150BPD)Arctic Version Refinery units in operation at this location

Location details (approximate only) 62 North 78 East

Altitude above sea level 1000 feetTemperature range -50C to +40C

MICROSTILL UNIT INSTALLATIONS

STREZHEVOY, SIBERIA, RUSSIA

These units use a high sulphur Siberian crude oil from the Tomsk region. Products produced are 76MON gasoline, 93RON gasoline, arctic, winter and summer grades of diesel, and fuel oil production for use in heating/power stations throughout the local community. These units were installed in February 1994. Due to the extremely high natural octane of the gasoline, 93RON production is possible from this crude oil feed.

Options installed at this site are TEL injection and Thermal reforming.

All products produced are consumed within the town of 30,000 people and previously all fuels were imported from Omsk over 1,000 km away. Formerly, oil was being produced then transported to the refineries then the finished product transported back to the end users.

These transport costs added to the final landed price of the fuel. The unreliability of the transport system ensures that if possible, processing of the fuel, on-site where it is required is an economic option.The unit was chosen for its unique standard construction in stainless steel and the highly modularised and containerised aspects of the unit. Steam and air were not required and this eliminated much of the costly onsite ancillary equipment required by the client.This particular unit has been subject to the harsh Siberian winter of -50c and the usual summer conditions of +40c combined with a multitude of mosquitoes and other insect environment.

The units operate to capacity throughout the entire year.

PRODUCT YIELD

Naptha 15% Diesel 30% Residue 55%

HIDES GASFIELD, PAPUA NEW GUINEA

Four M 150 Refinery units in operation at this location

Location details (approximate only) 7 South 142 East

Altitude above sea level 4500 feetTemperature range +1 C to +36C

MICROSTILL UNIT INSTALLATIONS

HIDES GASFIELD, PAPUA NEW GUINEA

These units produce diesel for the local highland communities. Supplies were previously obtained from Lae on the northern coast of Papua New Guinea. The diesel supplies were transported on small trucks along 800km of extremely rugged road. Supplies were unreliable.

The feed for the units is gas condensate from two gas fields located 10,000 feet above sea level. This feed is piped down to the gas processing facility at 4,500 feet where the liquids are extracted and sent for processing through the units. The gas is used for turbine fuel for power generation supplying electrical power to mining operations in the region.

Originally the two M150 units were installed during August 1991. As the field grew and the power demand increased, a further two units were installed in January 1992 to handle the condensate load. Naphtha can be used to fuel a turbine whereas the unprocessed condensate, due to the presence of heavy metals would cause excessive wear of the turbine blades.

Diesel is sold to the local communities for use in diesel engines and the residue is used as a fuel for drying coffee beans throughout the highlands.

PRODUCT YIELD

Naptha 65% Diesel 30% Residue 5%

GOBE PRODUCTION FACILITY, PAPUA NEW GUINEA

One M 150 Refinery unit in operation at this location

Location details (approximate only) 7 South 142 East

Altitude above sea level 560 metresTemperature range +15C to +33C

MICROSTILL UNIT INSTALLATIONS

GOBE PRODUCTION FACILITY, PAPUA NEW GUINEA

The unit was installed to supply the diesel fuel requirements during the production phase of the project. On-site refining was more cost effective than the alternative of diesel fuel transportation from Port Moresby via barge and road transport.

The crude oil processed at Gobe is a light sweet crude oil which yields an excellent diesel product. Crude oil is piped from the wellhead to the production facility for primary treatment (degassing and dewatering). The crude oil is stored in large export tanks before being pumped via pipeline to the Kumic Oil Terminal located in the Gulf of Papua.

A small stream of crude oil is withdrawn from the tank inlet and processed in the MICROSTILL unit. The produced diesel is sent to onsite storage with the naphtha and residue products returned to the crude oil export tank.

PRODUCT YIELD

Diesel Nominal 50 BOPD of ASTM D-975 Diesel Fuel No. 2-D

ALICE SPRINGS, NORTHERN TERRITORY, AUSTRALIA

One M 150 MICROSTILL unit in operation at this location

Location details (approximate only) 23 South130 East

Altitude above sea level 200 feetTemperature range +5C to +55C

MICROSTILL UNIT INSTALLATIONS

ALICE SPRINGS, NORTHERN TERRITORY, AUSTRALIA

This unit is ideally suited to the desert conditions that prevail in this part of Australia. Daytime temperatures of +55C are common during summer. The MICROSTILL unit operates reliably with a consistent product output through even the hottest days.

Whilst Alice Springs is physically well connected to major ports it is isolated by great distances from major cities such as Darwin 8000km to the North and Adelaide 1000km to the South. The MICROSTILL therefore provides local fuels at very competitive prices.

This unit has been in operation since installation in December 1993 and achieves the following product slate:

PRODUCT YIELD

Naptha 30%Diesel 45%Residue 25%

Design PrinciplesConstruction standardsOperational requirementsMEGION, TYUMEN REGION, RUSSIASTREZHEVOY, SIBERIA, RUSSIAHIDES GASFIELD, PAPUA NEW GUINEAGOBE PRODUCTION FACILITY, PAPUA NEW GUINEAALICE SPRINGS, NORTHERN TERRITORY, AUSTRALIA