LOBITO REFINERY PROJECT- SONAREF PROJECT

ARA CONFERENCE AND WORSHOP

CAPE TOWN 5 – 9 MARCH 2007

ARABELLA HOTEL

2Agenda

INTRODUCTION

CONFIGURATION

FEEDSTOCK

MARKET

PROJECT BACKGROUND

STUDIES

ACTION PLANS

SUMMARY

3Introduction

The refinery will be constructed in Lobito.

Initial Feasibility studies performed by Kellogg(KBR):proposed a refinery based on a full conversionscheme (FCC, HDC, Coker).

200,000 BPSD capacity producing LPG, gasoline, JetFuel, Kerosene, diesel and coke.

Market: Export to Asia, Europe, South and NorthAmerica, in addition to the African market.

Proposed Investment Cost: about $ 3.7 billion.

4

LUANDA

Cabinda

Lobito

L

Introduction

Cabinda

Luanda

Lobito

5

• Project Site.

Proprietary and Confidential

Introduction

6Configuration

C

R

U

D

E

200.0

DELAYED

COKER

49.6

COKE

DIESEL

HT

55.5

PARTIAL

CONV.

HCK

95.9

VAC. G.O.

SR NAPHTHA

SR DIESEL

KERO

DIESEL

V

A

C

U

U

M

122.0 LCGO

NAPH.

NAPH HT

38.4

COKER

NAPHTHA

KUITO

HCGO

FCC

38.7

HC DIESEL

UCO

LPG

JET/KERO

KHT

21.5

JET/KERO

SULFUR PLANT

2 x 100 MT/SD SULFURH2 PLANT

143 MMSCFD

POWER

GENERATION

3 x 52 MW

SLURRY

LCO

LPG

GASOLINEREFORMER

31.2

DALIA

C4 ISOM

6.3

ALKY

11.8

FCCU

GASOL

MEROX

11.7

DIESEL

POST

TREATER

40.0

50.0

150.0

Fuel Gas

7Feedstock

Crude Oil Feedstock

Feedstock: Angolan Heavy and High TAN crudes

Crude Characteristics:

high density (API 19/20)

TAN>1

8Market

The economic growth in many regions of Africa has caused

a significant increase in demand of light products.

Angola imported nearly 2 billion $ worth of products in the

last 5 years.

West Africa imports globally about 11 million tonnes per

year of medium and light petroleum products 40% of the

imported products come from Mediterranean, Black sea and

North West Europe.

Two thirds of the imported quantity for West African

countries is consumed by Nigeria, where the actual refining

capacity is well below the installed capacity.

9Other Markets

10Project Background

1. Concept: Initially Sonangol considered partnering with one or more

companies to develop the Project.

2. Agreement: Consortium agreement signed with the Chinese firm

SINOPEC has been terminated.

3. Decision: On January 2007 Sonangol decided to hold 100% equity and

take full responsibility of the Sonaref Project

4. Start up: New action plans are being defined and implemented, and this

will support the development of the FEED studies/work in the second

semester of 2007. The Refinery is expected to be operational in 2012.

11Project Background

From the base case of 200 000 BSPD,the configuration and capacity

of the refinery are being reviewed in order to:

Meet the needs of the Angola market Region which includes West,

Southwest, South, Southeast &Northwest regions of Africa.

Reduce the risk relative to product sales

Reduce cost of investment

Reduce the complexity of the plant. Adopt phased implementation

12Studies

CURRENT STATUS

13

A number of process studies were carried out to determine the optimum configuration of the refinery.

Licensed technologies evaluations have been completed for key process units.

Metocean data collection, topographic survey, geotechnical investigation and bathymetric survey have been carried out.

Subcontract for hydrological survey have been awarded.

Market survey update is being carried out.

Site fencing almost completed.

Works and Studies

14

Carry out the Hydrological site Survey and water gathering system

Carry out the EISA (Environment impact and Socio-economic assessment).

Start preparing the site for civil works.

Begin FEED:

• Other technology supplyers will be offered theopportunity to pre-qualify.

• Need agreement on product specs in Africa.

Action Plan for 2007

15

Country at peace and growing

High Tan crude available

Product demand

Regional development

Corner stone of future industrial development

Job opportunities during construction and operation of the

refinery

Development of secondary and tertiary industries

Summary

16

Build a world class Refinery with the most modern

technology

Capable of meeting the most rigid/strict product

specifications, market requirements/demands,

stringent environment rules.

Contributing to technological development of Africa.

Improvement of ARA´s own “portofolio”

Conclusion

SONAREF Project

THANK YOU FOR YOUR ATENTION