New Refinery Construction Project for CIS Crude Oil

- Feasibility Study

Contents
page
1 . Forward
1 . 1 Background 1–1
1 . 2 Iran ( KTIOP Project ) 1–2

2 . General Condition of Project area

2 . 1 Location and Topography 2–1
2 . 2 Metrology and water sources 2–3
2 . 3 Geology 2–5

3 . Environmental Evaluation
3 . 1 Environmental Compliance 3–1
3 . 2 Social Environment 3–4

4 . Needs and Demand of Project

4 . 1 Oil development in Caspian Sea region 4–1
4 . 1 . 1 Recent oil exploitation in the Caspian region 4–1
4 . 1 . 2 Exportable crude oil from the Caspian Sea region 4–2
4 . 1 . 3 Exporting Strategy of Caspian Sea Crude Oil to the Asian Market 4–5
4 . 2 Needs to Construct a New Oil Refinery in Northern Iran 4–6
4 . 2 . 1 Supply area of the project 4–6
4 . 2 . 2 Demand projection of major oil products in the project area 4–7

5 . Basic Consideration
5 . 1 Introduction 5–1
5 . 2 Sources of crude oil and Design Crude Oils 5–1
5 . 2 . 1 Characteristics of Crude Oils around the Caspian Sea 5–2
5 . 2 . 2 Design Crude Oil Mix 5–4
 New Refinery Construction Project for CIS Crude Oil
- Feasibility Study

Contents :
Page

5 . 2 . 3 Product Specifications 5–7

5 . 3 Market Review 5–9
5 . 3 . 1 Pricing Structure for Crude Oil 5–9
5 . 3 . 2 Dubai Va Kashagan & CIS Mix Forecast 5 – 10
5 . 3 . 3 Products Pricing 5 – 11
5 . 4 Products Demand and Scale of the Refinery 5 – 11
5 . 4 . 1 Projected Products Demand and Refinery Outputs 5 – 11
5 . 4 . 2 Scale of the Refinery 5 – 12
5 . 5 Refinery Mathematical Model for Configuration Study 5 – 13
5 . 5 . 1 Crude Oil Data 5 – 13
5 . 5 . 2 Refinery Mathematical Model 5 – 14
5 . 6 Integrated Petrochemical Complex 5 – 16
5 . 7 Crude Oil Tanker Fleet and Crude Oil Unloading Jetty 5 – 16
5 . 7 . 1 Oil Ports and Prevailing Sizes of Crude Oil Tankers in Caspian Sea 5 – 16
5 . 7 . 2 Crude Oil Tanker Fleet 5 – 18
5 . 8 Procurement of Utilities 5 – 19
5 . 9 Tankage and Product Shipping 5 – 20
5 . 9 . 1 Tankage Criteria 5 – 20
5 . 9 . 2 Transaction Metering 5 – 21
5 . 10 Effluents Discharge and Air Emissions Criteria 5 – 22
5 . 10 . 1 Effluents Discharge Criteria 5 – 22
5 . 10 . 2 Air Emission Criteria 5 – 23

6 . Project Description
6 . 1 Introduction 6–1
6 . 2 Study Bases 6–2
6 . 2 . 1 Project Site 6–2
 New Refinery Construction Project for CIS Crude Oil
- Feasibility Study

Contents
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6 . 2 . 2 Crude Oil 6–2

6 . 2 . 3 Refinery 6–3
6 . 2 . 4 Products 6–4
6 . 2 . 5 Crude Oil Unloading Jetty and Shore Tank Farm 6–4
6 . 2 . 6 Community 6–5
6 . 3 Refinery Configuration and Overall Refinery Balances 6–8
6 . 4 Facility Plan 6–9
6 . 4 . 1 Refinery 6 – 10
6 . 4 . 2 Shore Tank Farm and Pipelines to / from Refinery 6 – 20
6 . 4 . 3 Crude Oil Unloading Jetty and Submerged Pipelines 6 – 22
6 . 4 . 4 Community 6 – 24
6 . 4 . 5 PDC Tank Farm and Product Shipping Pipeline 6 – 26
6 . 5 Case Comparison 6 – 29
6 . 5 . 1 Refinery Balances 6 – 29
6 . 5 . 2 Utility and Offsite Facilities 6 – 31

7 . Construction Plan and Costs Estimation

7 . 1 Construction Plan 7–1
7 . 1 . 1Basic Roles of Overseas and Iranian Contractors 7–1
7 . 1 . 2 Transportation of Goods 7–2
7 . 1 . 3 Environmental Preservation during Construction Work 7–3
7 . 2 Overall Project Schedule 7–4
7 . 3 Investment Cost Estimation 7–7
7 . 3 . 1 Bases and assumptions 7–8
7 . 3 . 2 Facility Cost 7–9
7 . 3 . 3 Owner’s Costs 7 – 10
7 . 3 . 4 Initial Working Capital 7 – 13
 New Refinery Construction Project for CIS Crude Oil
- Feasibility Study

Contents

Page

7 . 3 . 5 Annual Disbursement Schedules 7 – 13

7 . 3 . 6 Investment Cost for PDC Tank Farm and Product Pipelines 7 – 14
7 . 4 Operating Costs Estimation 7 – 15
7 . 4 . 1 Bases and Assumptions 7 – 16
7 . 4 . 2 Fixed operating costs 7 – 16
7 . 4 . 3 Permanent maintenance labor 7 – 17
7 . 4 . 4 Variable Operating Costs 7 – 19
7 . 5 Costs Comparison 7 – 20
7 . 5 . 1 Investment Cost Comparison 7 – 21

8 . Project Evaluation
8 . 1 Introduction 8–1
8 . 2 Economic Evaluation 8–1
 New Refinery Construction Project for CIS Crude Oil
- Feasibility Study

List of Tables
page
Chapter 4
Table 4 – 1 4–8
Table 4 – 2 4–9

Chapter 5
Table 5 - 1 5 – 25
Table 5 – 2 5 – 26
Table 5 – 3 5 – 27
Table 5 - 4 5 – 28

Chapter 6
Table 6 - 1 6 – 32
Table 6 – 2 6 – 33
Table 6 – 3 6 – 34
Table 6 – 4 6 – 35
Table 6 – 5 6 – 36
Table 6 – 6 6 – 37
Table 6 – 7 6 – 38
Table 6 – 8 6 – 39

Chapter 7
Table 7 - 1 7 – 23
Table 7 – 2 7 – 24
Table 7 – 3 7 – 25
Table 7 – 4 7 – 26 , 7 – 27
Table 7 – 5 7 – 28
 New Refinery Construction Project for CIS Crude Oil
- Feasibility Study

List of Figures
page
Chapter 2
Figure 2 – 1 2–8
Figure 2 – 2 2–9

Chapter 5
Figure 5 – 1 5 – 29
Figure 5 – 2 5 – 30

Chapter 6
Figure 6 - 1 6 – 40
Figure 6 - 2 6 – 41
Figure 6 – 3 6 – 42
Figure 6 – 4 6 – 43
Figure 6 – 5 6 – 44
Figure 6 – 6 6 – 45
Figure 6 – 7 6 – 46
Figure 6 – 8 6 – 47
Figure 6 – 9 6 – 48
Figure 6 –10 6 – 49
Figure 6 – 11 , 6 – 12 6 – 50

Chapter 7
Figure 7 - 1 7 – 29