Oil Refinery Project

[Giulia Satmary]

TheDos Bocas refinery is proposed to include 17 processing units including a combined distillation plant, a delayed coking unit, a fluid catalytic cracker unit, a naphtha hydrotreating unit, a naphtha reforming unit, a sulphur recovery plant, a gas recovery and treatment facility, as well as a hydrogen-producing plant.

The delayed coking unit will convert the residue from the combined distillation plant into higher-value products, while the fluid catalytic cracker unit will use catalysts to break large distillation fractions into lighter products. The hydrotreating unit will remove sulphur, nitrogen and some aromatic compounds from the distillation fractions.

The engineering and construction work for the refinery is divided into six packages. The contractors for five work packages including packages 1-4 and package-8 with a combined value of 6bn ($7.5bn) were selected in July 2019.

ICA Fluor, a joint venture between the Mexican engineering and construction company ICA and the US-based engineering and construction company Fluor, received the contract for work package-1 of the refinery project.

Van Oord, a marine contractor based on the Netherlands, in consortium with Mexico-based Grupo Huerta Madre received a contract worth 207.6m ($262.5m) for land reclamation works for the Dos Bocas refinery site in June 2019. The scope of the contract included the creation of 600ha of new land, 400ha of dynamic compaction and 6 million m3 of dry earth movement.

The National Refining Plan targets a total of 1.8 million barrels per day (Mbpd) of crude processing capacity at the seven refineries including the Dos Bocas refinery, by 2022. The refineries are intended to produce a total of 781,000bpd of petrol and 560,000bpd of diesel.

We have learned a great deal from Project Fractal. Initially released in July 2016, there are over 3500 people who have tried their hand at coding their design logic in Dynamo and automating design option creation with Fractal. Today we are announcing that Project Fractal has evolved into a new beta project called Project Refinery. Project Refinery not only lets you create design options with many of the same methods that existed in Fractal, but it also allows you to set goals and optimize for those goals. When you choose to maximize or minimize designated outputs, Refinery will return the best options. Refinery also solves some of the problems we heard around not being able to run custom nodes including Python nodes. Refinery runs locally and allows custom code to participate in design option generation. Refinery will run in Dynamo for Revit or Dynamo Sandbox and includes a node to cache Revit data for use in option generation. Refinery is still a beta project. There are rough edges, but if you would like to try it out and work with us to advance generative design for AEC we would be thrilled. You can learn more here:

Project Fractal will be discontinued in January 2019. This means that we will be taking down the site and disposing of all the graphs and design option studies. Please ensure that you have all your data downloaded and saved. You can then take your results over to Project Refinery by upgrading your graph to Dynamo 2.1 and running it in Refinery.

The San Francisco Refinery consists of two facilities linked by our pipelines. The Santa Maria facility is located in Arroyo Grande, California, 200 miles south of San Francisco, California, while the Rodeo facility is located in the San Francisco Bay Area. Intermediate refined products from the Santa Maria facility are shipped by pipeline to the Rodeo facility for upgrading into finished petroleum products. Refinery facilities include crude distillation, naphtha reforming, hydrocracking, hydrodesulfurization and delayed coking units, as well as a calciner. The refinery currently produces a high percentage of transportation fuels, including CARB-grade gasoline. Other products produced include fuel-grade petroleum coke. The majority of the refined petroleum products are distributed to customers in California by pipeline and barge. Additionally, refined petroleum products are exported to customers primarily in Latin America by waterborne cargo.

We are advancing our conversion plans at the San Francisco Refinery in Rodeo, California, to meet the growing demand for renewable fuels. The hydrotreater feedstock flexibility project reached full rates of 8,000 BPD (120 million gallons per year) of renewable diesel production in July 2021. Separately, the Rodeo Renewed refinery conversion project is expected to be finished in early 2024, subject to permitting and approvals. Consequently, we ceased operations of the Santa Maria facility in February 2023. Upon completion, the converted facility will initially have over 50,000 BPD (800 million gallons per year) of renewable fuels production capacity. The conversion will reduce emissions from the facility and produce lower carbon intensity transportation fuels. We plan to distribute our renewable diesel through new and existing channels, including approximately 600 branded retail sites in California.

* Clean product capacities are maximum rates for each clean product category, independent of each other. They are not additive when calculating the clean product yield capability for each refinery.

(MBD) Thousand Barrels Per Day

The Rodeo CAP was formed in 1995 with 12 members from areas neighboring the refinery. The CAP is an advisory body with the purpose of reviewing, discussing, and making recommendations on issues of concern to its members, the community and the company.

The objectives of the CAP are to function as a resource through which Phillips 66 can identify and discuss issues of community concern; provide perspectives from the membership categories and geographical areas represented on the CAP; suggest ways in which Phillips 66 can strengthen its relationship with its neighbors; review and monitor projects and incidents at the refinery; and comment and share expertise regarding company-identified actions, projects and activities.

The CAP provides feedback to Phillips 66 and suggests ways to strengthen the relationship with the community. Its role is advisory in nature, and the CAP is not asked to approve or reject any actions taken by the company.

Phillips 66 actively works to be responsive to the concerns and recommendations of the CAP and provide such resources, including outside technical assistance, as may be needed by the CAP to perform its function.

The Rodeo Refinery CAP is made up of approximately 12 community members and three local representatives from the Rodeo-Hercules Fire Department, Carquinez-Crockett Fire Department and John Swett Unified School District School Board. The monthly meetings have an average attendance of 12 to 14.

HOUSTON, July 14, 2020 /PRNewswire/ -- McDermott International Ltd. today announced it has been awarded a *large engineering and procurement contract from Azikel Petroleum Ltd. for the modular 12,000 BPD Hydro-Skimming Refinery project. The facility will be located in Yenagoa, Bayelsa State within the Federal Republic of Nigeria.

McDermott has been working with Azikel Petroleum Ltd. since 2018, most recently on an extended Front-End Engineering Design (FEED). This next phase of the award will utilize McDermott's extensive modularization experience and expertise. The design capitalizes on McDermott's world-class refining process engineering abilities.

"McDermott has been an integral part of what is one of the few refineries to be built in Nigeria and we look forward to expanding our presence further by delivering the next phase of this important project," said Tareq Kawash, Senior Vice President, Europe, Middle East, Africa. "Our decades of modularization experience makes us uniquely positioned to deliver this scope and the team has done a great job of developing a simple process design that meets all of Azikel's product specification requirements."

The engineering and design are scheduled to be executed from McDermott's office in Tyler, Texas with support from its Mexico City office. Equipment will be sourced from both US domestic and international suppliers. Azikel is building this grassroots facility and has already done extensive work to prepare the site for construction. The early work includes site reclamation and backfilling, completion of roads, perimeter wall, drainage and security gates. Early work also includes construction of the administrative, maintenance and terminal operator buildings as well as the erection of the feedstock tanks. Construction is also underway for a 656-foot (200 meter) pier with shoreline protection. The pier will be used for the delivery of the refinery modules and other equipment.

The President of Azikel Group, Dr. Eruani Azibapu Godbless, stated that the award was based on the high level of confidence and professionalism exhibited by McDermott and he expects the project will be delivered on schedule and within budget. He further stated that the Azikel Refinery is a flagship for Nigeria as it is the first hydroskimming refinery to advance to this level of achievement in the modular refinery regime.

About McDermott

McDermott is a premier, fully-integrated provider of engineering and construction solutions to the energy industry. Our customers trust our technology-driven approach to design and build infrastructure solutions to responsibly transport and transform oil and gas into the products the world needs today. From concept to commissioning, our expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. It is called the "One McDermott Way."

Operating in over 54 countries, McDermott's locally-focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.

Forward-Looking Statements

McDermott cautions that statements in this communication which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and about the expected scope and value of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit or capital markets;, our inability to successfully execute on contracts in backlog; changes in project design or schedules; the availability of qualified personnel; changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties; changes in industry norms; actions by lenders, other creditors, customer and other business counterparties of McDermott and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. You should not place undue reliance on forward-looking statements. This communication reflects the views of McDermott's management as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.

3a8082e126