ISO/IEC-17025 : 2005 LABORATORY MANAGEMENT

SYSTEM

SUSTAINABILITY REPORT 2015MOVING FORWARD

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THE COMPANY STAKEHOLDERS ENGAGEMENT

CSR INITIATIVES HEALTH, SAFETY & ENVIRONMENT

ECONOMY SUPPLY CHAIN &PROCUREMENT

CREDIBILITY & GRI INDEX

Attock Refinery Limited (ARL) was incorporated as a Private Limited Company in November, 1978 to take over the business of the Attock Oil Company Limited (AOC) relating to refining of crude oil and supplying of refined petroleum products. It was subsequently converted into a Public Limited Company in June, 1979 and is listed on the three Stock Exchanges of the country. The Company is also registered with Central Depository Company of Pakistan Limited (CDC). Original paid-up capital of the Company was Rs 80 million which was subscribed by the holding company i.e. AOC, Gov-ernment of Pakistan, investment companies and general public. The present paid-up capital of the Company is Rs 852.93 million. ARL is the pioneer of crude oil refining in the country with its operations dating back to 1922. Backed by a rich Experience of more than 93 years of successful operations, ARLs plants have been gradually upgraded/ replaced with state-of-the-art hardware to remain competitive and meet new challenges and requirements. It all began in February 1922, when two small stills of 2,500 barrels per day (bpd) came

on stream at Morgah following the first discovery of oil at Khaur where drilling started on January 22, 1915 and at very shallow depth of 223 feet 5,000 barrels of oil flowed. After discovery of oil in Dhu-lian in 1937, he Refinery was expanded in late thirties and early forties. A 5,500 bpd Lummus Two-Stage- Distillation unit, a Dubbs Thermal Cracker, Lubricating Oil Refinery, Wax Purification facility and the Edeleanu Solvent extraction unit for smoke-point correction of Kerosene were added. There were subsequent discoveries f oil at Meyal and Toot (1968). Reservoir studies during the period 1970-78 further indicated high poten-tial for crude oil production of around 20,000 bpd. In 1981, the capacity of Refinery was increased By the addition of two distillation units of 20,000 and 5,000 bpd capacity, respectively. ue to their vintage, he old units for lube/wax production, as well as Edeleanu, were closed down in 1986. In 1999, ARL commenced JP-1 pipeline dispatches and in 2000, a Captive Power Plant with installed capacity of 7.5 Megawatt was commissioned. Another expansion and up gradation project was

COMPANYPROFILE

OBO/IEBOR

EC-RATAA

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70YY0

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025 : 2005 MANAGEMEN

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ISO-9001: 2008QUALITY MANAGEMENT

SYSTEM

ISO-14001 : 2004 ENVIRONMENTAL

MANAGEMENT SYSTEM

OHSAS-18001 : 2007 OCCUPATIONAL HEALTH AND SAFETY ASSESSMENT SERIES

IMPLEMENTED AT ARL

Energy Management System

2001

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MOVING FORWARD SUSTAINABILITY REPORT 2015

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THE COMPANY STAKEHOLDERS ENGAGEMENT

CSR INITIATIVES HEALTH, SAFETY & ENVIRONMENT

ECONOMY SUPPLY CHAIN &PROCUREMENT

CREDIBILITY & GRI INDEX

completed in 1999 with the installation of a Heavy Crude Unit of 10,000 bpd and a Catalytic Reformer of 5,000 bpd. ARLs current nameplate capacity stands at 43,000 bpd and it possesses the capabil-ity to process lightest to heaviest (10-65 API) crudes. ARLs current Expansion/ Up-gradation Projects comprise of Preflight Unit, Naphtha Isom-erization unit, Diesel Hydro Desulphurization (DHDS) Unit and expansion of existing Captive Power plant. This would increase refinery capacity by 10,400 bpd, motor gasoline production would increase by 20,000 Tons per month and would enable ARL to produce Euro II compliant low sulfur diesel. This would also result in expansion of captive power plant by 18 Megawatt. All these projects are expected to be completed by June 30, 2016. The Company is ISO 9001, ISO 14001, ISO/IEC 17025 accreditted, OHSAS 18001 certified and is

the first refinery in Pakistan to declare implemen-tation of ISO 50001 (Energy Management System).

REFINERY EXPANSION AND UP-GRADATION PROJECTSBeing an environmentally conscious and respon-sible industrial concern, ARL is in the process of upgrading its refining facilities. The planned upgradation will yield green diesel (500 wt ppm) and environment friendly Premier Motor Gasoline (PMG). Following units are under installation:PRE-FLASH UNIT (10,400 BPD)ARL is in the process of installing a state of the art Pre-flash unit of 10,400 barrels per day at one of its existing distillation unit to enhance the crude refining capacity to cater for the additional crude oil availability in its region.

SUSTAINABILITY REPORT 2015

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THE COMPANY STAKEHOLDERS ENGAGEMENT

CSR INITIATIVES HEALTH, SAFETY & ENVIRONMENT

ECONOMY SUPPLY CHAIN &PROCUREMENT

CREDIBILITY & GRI INDEX

NAPHTHA ISOMERIZATION UNIT (7,000 BPD)Isomerization unit of 7,000 barrels per day is under installation to produce environmental friendly gasoline and enhance its production by 20,000 tons per month.DIESEL HYDRODESULPHURIZATION UNIT (DHDS) [12,500 BPD]DHDS unit of 12,500 barrels per day is also being installed to reduce sulfur contents to 500 ppm in high speed diesel to meet Euro-II specifications.EXPANSION OF EXISTING CAPTIVE POWER PLANT (18 MEGA WATT)To cater for the energy requirements of the upgra-dation project, capacity of the existing captive power plant is being increased by 18 MW.Basic designs of Preflash unit and Isomerization/ DHDS unit were carried out by M/s CB&I USA and M/s UOP USA respectively whereas the basic design of utilities and offsites was carried out by M/s ENAR Petrotech Services Pakistan.Engineering, Procurement, Construction and Com-missioning (EPCC) contract was awarded to M/s Hyundai Engineering Co.Limited Korea in April 2013. The overall cost of this Up-gradation Project is around US $ 251 million. The Project is financed in the debt equity ratio of 80:20. Long term loan of Rs 22 billion has been arranged through a consortium of local banks. Detailed Engineering, Civil works, supply of equipment/material and installation are almost complete. All of the equipment has been received and placed on their respective foundations. Con-struction activities i.e. remaining civil works like paving and finishing, equipment interconnecting piping, Instrument and electrical cable installation,

work inside electrical substations and control room etc. are underway.Due to multiple reasons beyond the control of the Company, it has become necessary to extend the date of Project Completion upto June 30, 2016. The Company and the EPCC Contractor have mutually agreed to this extension. There is however no change in the overall budgeted Project cost.

FUTURE PROJECTSViability of further expansion/ upgradation of the refinery will depend on sustainable local crude availability, quality of crude, demand supply situa-tion of products and the prevalent product specifi-cations in the country.

Upcoming challenges being faced by the refinery includes handling of continuously increasing local crude oil production from North of the country and further improvement in product specifica-tions.ARL has plans to install a state-of-the-art new deep conversion green- field refinery of 50,000 BPD capacity, if sustainable enhanced supplies of local crude from North become available and the Gov-ernment come-up with investment friendly Refin-ing policy.After commissioning of the current upgradation project, ARL will be able to produce Euro-II compli-ant products. However, to further improve the roduct specifications and enhance value added products volume, installation of process units like Continuous Catalytic Reformer (CCR), Hydro-cracker and Delayed Coker are being explored.

MOVING FORWARD

First refinery / first petro- chemical plant / first major industry to get ISO 9001:2000 certification

THE FIRST REFINERYOF THE REGION

Attock Oil Company discovered oil in the Potohar belt in 1915(well before discovery of oil in Saudi Arabia). In its wake a 2500 bpd oil refinery, the first of the region, was set up in 1922 at Morgah village, Rawalpindi. Over the years refining capac-ity was enhanced, landmark years being 1937, 1968, 1999. The current up-gradation proj-ect will increase the capacity to 53,400 bpd meeting EURO-II product specifications.