Mid Country Refinery

Commissioned in the year 2000, PARCOs 100,000 barrels per day, state-of-the-art MidCountry Refinery (MCR) at Mahmood Kot near Multan, represents about 35% of Pakistans refining capacity. It helps substitute import of refined, value-added oil products to the tune of US$ 100 million per year. PARCO's Mid-Country Refinery, is the country's latest, largest and most complex refinery and employs critical processes involved in refining. The primary control centre is the Main Control Room with a microprocessor-based Distributed Control System (DCS). In addition, three subsidiary control rooms collectively manage eleven On-site Process Units and Offsite/utilities and other permanent facilities with 46 tanks to store Crude Oil, intermediate feeds stocks and finished products besides other specific areas of the refinery. The MCR mainly processes Crude Oil of Upper Zakum from Abu Dhabi and Light Arabian Crude from Saudi Arabia. Refinerys Housing Complex The refinerys housing complex provides complete accommodation for its employees and their families with all the latest facilities like hospital, school, club, gymnasium, bowling alley, parks, mosque, hospital, auditorium, shopping center, sports complexes, cricket, hockey, football and other grounds for sports, and much more.

Key Facts & Features

The Refinery is located at Mahmood Kot, which is in the Muzaffargarh District of Pakistan. The city of Multan, only 65 km, from the Refinery is well connected with a national communications network of rail, road and air. The nearest rail link is through Mahmood Kot which is about five kilometers from the Refinery. Within a 30 km radius of the refinery, there are two thermal power complexes at Kot Addu and Muzaffargarh having a capacity of 1,500 and 1,300 MW respectively, while the 762 MW AES Fuel oil based thermal power complex at Lalpir is only 5 kilometers from the Refinery. The River Indus is around 10-15 kilometers on the South West side of the Refinery, while the River Chenab is 35 kilometers on the North East side of the Refinery. At Mahmood Kot, the oil marketing companies are operating a petroleum product distribution terminal. This terminal, known as Joint Installation of Marketing companies (JIMCO), is connected by a pipeline with PARCO's Mahmood Kot Terminal. At this terminal, HSD produced at the refinery and received from Karachi through PARCO Pipeline is filled in rail wagons and road tankers for transportation to various locations in Punjab and NWFP provinces.

Similarly PARCO's Mahmood KotFaisalabadMachike (MFM) Pipeline system originates from PARCO's Mahmood Kot terminal. This Pipeline carries HSD and Kerosene to Machike, near Sheikhupura, via Faisalabad.

Configuration and Unit Capacities The Refinery is processing Crude Oil of Upper Zakhum from Abu Dhabi and Light Arabian Crude from Saudi Arabia. The Refinery Complex includes 11 Onsite Process Units besides numerous Offsite/Utilities Units and other permanent facilities with 46 tanks to store Crude oil; intermediate feeds stocks and finished products. Offsite / Utilities Units

Steam, Feed Water and Condensate Handling System Fuel Oil and Gas System. Water Systems. Plant and Instrument Air and Nitrogen System Tankage and Blending System. Product Transfer and Loading System. Flare System Effluent Collection, Treatment and Disposal System. Electrical System. Plant Buildings. Safety and Fire Fighting.

The Utilities Comprise of the following:

Steam, Feed Water and Condensate Handling System Fuel Oil and Fuel Gas System Water Systems Plant, Instrument Air and Nitrogen System Flare System

Steam, Feed Water and Condensate System The Steam System is designed to efficiently meet normal refinery demands. Treating facilities are specified to demineralise plant water and consistent with the highest-pressure stream to be produced in the Refinery. Condensate recovery for the reuse as boiler feed water is undertaken to the maximum extent practicable. Fuel Oil and Fuel Gas System Process Unit off-gas is collected and routed to one central mixing drum and then distributed to users, where centralized collection is not feasible, such as for low-pressure vent gas; the gas is utilized locally within the process heaters. The Refinery fuel oil is circulated through supply and return headers in excess of the actual firing rate and the system has been designed to deliver to all users, sufficient fuel oil at pressures and viscosities consistent with burner specifications on other user needs. The Water System The Water system consists of water treatment, chemical addition, storage and distribution. The raw water is received from the Muzaffargarh canal and stored in the tanks. Cooling water is supplied from an evaporative cooling tower circulation system. The portable water circulation system consists of filtration, chlorination, storage and distribution.

Plant, Instrument Air and Nitrogen System The compressors discharge to common air receiver. From this point, instrument air passes through dryers before being distributed throughout the plant. Instruments are dried using external electric heaters designed to achieve a water dew point of 20 C. The System is fully equipped with knockout drums and pumps, water seals, seals, flare stack and flare tip, with pilots and remote ignition system. In addition, a flare for H2S (Hydrogen Sulphide) containing off-gasses provides an additional tip on the main flare stack.

Diesel Hydro Desulphurization (DHDS) Plant

Government of Pakistan (GOP) plans to introduce Euro II complaint fuels in the country. In pursuance of the plans, GOP directed to all refineries in the country to develop facilities to meet the above objective. Pak-Arab Refinery Limited (PARCO) which had taken the lead by introducing lead free motor gasoline in the country is already producing this fuel compliant to Euro II specifications. To meet GOPs requirement regarding High Speed Diesel PARCO was the first refinery to take initiative and planned a Diesel Hydro Desulphurization (DHDS) plant at their MidCountry Refinery, Mahmood Kot at a cost of US$132 million. M/s UOP were appointed as the process licensors for the project who also carried out Basic Engineering of the Project. On January 25, 2008 PARCO signed an agreement with a consortium of China National Chemical Engineering Group Corporation (CNCEC) and Hyundai Engineering Company (HEC) of South Korea for the engineering, procurement and construction of DHDS Plant. During the peak construction phase, about 800 Pakistani personnel worked onsite. With safety of the workers being the main priority, PARCO ensured periodic safety audits. Strict safety measures and work permit procedure was followed which entailed proper job safety analysis & approval before every step of the construction such as performing work while in hot environment, tie-ins with existing plant or at height, carrying out excavation or using crane and fork lifters. HSE department conducted regular safety training programs for the workers to create awareness about safety protocols. PARCO HSE project engineers regularly inspected the site and made recommendations to improve the procedures, wherever it was found necessary. Safety Coordination Meetings were conducted on weekly and monthly basis to ensure workplace safety. All these endeavors resulted in One Million Man-hours without LTA during construction of the DHDS Plant. PARCO has always been at the forefront in minimizing the impact of its business operations on employees, environment, customers, shareholders and communities. From environmentfriendly products to immaculate plant facilities and infrastructure, everything points towards the vision of PARCO Preserving Mother Nature and Making the Environment Purer. The installation of Diesel Hydro Desulphurization (DHDS) Plant at its Mid-Country Refinery can rightly be termed as another massive achievement by PARCO. The Diesel Hydro Desulphurization (DHDS) Plant has been constructed and commissioned. By producing HSD with low-sulphur content, this plant greatly contributes towards a greener environment. The DHDS plant is equipped with a maximum capacity of 26,000 barrels per day, and reduces sulphur contents in High Speed Diesel (HSD) from 7,000 parts per million to 500 parts per million which is an EURO II requirement. This is yet another important

initiative of PARCO which complies with the Government of Pakistans directive to reduce sulphur contents in petroleum products. With the timely completion of the DHDS project, PARCO has accomplished yet another milestone to greatly augment the energy system of the country. With more projects currently in the pipeline, PARCO is determined to continue its mission and maintain its pivotal role in the countrys Energy Sector.

COMPANY PROFILE Energy Lifeline for the Nation

PAK ARAB REFINERY LTD (PARCO) is a Joint Venture between Government of Pakistan and the Emirate of Abu Dhabi, incorporated as a public limited company in 1974. 60% of the share holding is by the Government of Pakistan and 40% by the Emirate of Abu Dhabi through its Abu Dhabi Petroleum Investment Company L.L.C. (ADPI), a subsidiary group of International Petroleum Investment Company (IPIC). PARCO's major business activities are:

Refining Transportation Storage Marketing

PARCO is an integrated energy company, and is a key player in the countrys strategic oil supply and logistics. With a refining capacity of 100,000 BPD, combined storage capacity of over one million tons, a marketing joint venture with TOTAL (France), a technical support venture with OMV (Austria), and a distribution agreement with SHV (Holland); PARCO has emerged as the strategic fuel supplier to the country with a broad portfolio of operational ventures. The organisation encompasses Pakistans largest refinery and 2000 kms of cross country pipeline network, including its subsidiary PAPCO. With continued support of the Emirate of Abu Dhabi, PARCO has been able to realize a number of energy projects that have contributed significantly in enhancing the countrys economic growth, saving foreign exchange, transferring technology and providing employment. The performance of the company can be judged by the fact that it has retained its AAA and A1+ long and short term credit rating by PACRA for fourteen consecutive years. The company set another first when it obtained three simultaneous international certifications: ISO 9001:2008 (Quality Management System), ISO 14001:2004 (Environmental Management System) and OHSAS 18001:2007 (Occupational Health and Safety Management System). VISION & MISSION Vision To be a leading national energy company of choice for all stakeholders by employing a strategy of diversification and integration with the right technology and adopting best industry practices for sustained competitive advantage.

Mission To transport, refine and market petroleum and related products in Pakistan in a safe, efficient, reliable and environment-friendly manner maintaining professional excellence and ensuring favorable returns on all employed resources OUR VALUES

Integrity Teamwork Results Orientation Innovation & Continuous Improvement Commitment Courage

Core Values

P A R C O

Progressive Corporate Outlook Aggressive Pursuit of Technical Excellence Reliability of Service Consistency in Performance Organized & Systematic Development

Charter The Company's existence demands it to be an integrated energy supplier by integrating functions such as refining, transportation, storage, marketing of oil products, etc. PARCO, as the energy corridor for the country, will establish its credibility and achieve the role of an industry leader. Growth and Performance The following is an overview of our major milestones: Year 1981 Milestone Commissioning of Karachi-Mahmood Kot (KMK) Crude-Cum- Product Pipeline System.

1990

Debottlenecking of Keamari Facilities (DKF) Project. Additional 50,000 tons of storage facility at Korangi & direct discharge of ships into PARCO network to ease pressure on Keamari Oil Piers. Introduction of flow improving technology to increase pipeline installed capacity of 2.9 to over 4.0 million tons/year, with flow improver. Completion of Bubak and Fazilpur pumping stations, raising pumping capacity by 50% to 6.0 million tons/year. Completion and commissioning of 360 km Pipeline Extension Project MFM) from Mahmood Kot to Machhike near Sheikhupura via Faisalabad. Completion and commissioning of Mid-Country Refinery (MCR) at Mahmood Kot. Launch of Marketing Operations. Commissioning of Gantry at Faisalabad Completion of PAPCOs 780 Km White Oil Pipeline (WOP) at a cost of US$ 480 million. IMS Certification of Mid-Country Refinery Korangi-Port Qasim Link Pipeline (KPLP) Export of Motor Gasoline IMS Certification of Pipeline Division IMS Certification of Corporate Headquarters Zamzama condensate injection from Pumping Station-2 Bubak Implementation of SAP ERP HR Transformation Completion and Commissioning of Diesel Hydro Desulphurization (DHDS)

1992

1994

1997

2000 2000 2002 2004 2005 2006 2006 2006 2007 2008 2009 2009 2010

Project at Mid Country Refinery

Awards & Certifications

AAA Financial Rating by PACRA PARCO was the first company to be rated AAA by PACRA in the country and the only one that continues to command that credit worthiness for an unprecedented fourteenth year running. Triple IMS Certification for MCR, Pipeline Division and CHQ PARCOs Mid-Country Refinery (MCR), Pipeline Division and Corporate Headquarters received Triple IMS Certification within a span of few months, validating its quality systems, environment concerns and employees safety & security practices. Services of consultants M/s. SGS for MCR and M/s Quality Concerns for Pipeline Division as well as for Corporate Headquarters were hired for conducting gap analysis, identifying the shortcomings and fulfilling the pre-requirements for ISO & OHSAS Certifications pertaining to Quality, Environment, Safety and Occupational Health. The task was challenging due to the complex operations in case of MCR and spread-out locations in case of the Pipeline Division but it was completed within scheduled time. It is worth mentioning that recommendation for certification was attained in a single attempt without receipt of any significant noncompliance.

PARCO Wins Best Practices Award for Occupational Safety & Health Striving for professional excellence has been a hallmark of PARCO. As the leading energy provider in the country, PARCO has always been mindful of its responsibilities towards its customers, employees, the community and the environment it operates in.

Recognizing and appreciating our HSE procedures and business processes, the Employers Federation of Pakistan has awarded PARCO the Best Practices Award for Occupational Safety and Health for 2011, at a ceremony held in Karachi.

The Award shows the efforts and commitment of HSE and all departments, our comprehensive trainings and high standards of operational safety control and audit which have made this achievement possible.

Environment Excellence Award PARCO has achieved Environment Excellence Award for seven consecutive years i.e. 2006, 2007, 2008, 2009, 2010, 2011 and 2012 from National Forum for Environment & Health, an NGO working under the auspices of Ministry of Environment and UNEP. The Annual Environment Excellence Awards are designed to recognize and promote organizations that adopt and follow environment friendly policies and make an outstanding contribution towards keeping the environment clean and healthy.