Delayed coking process as a way to increase crude conversion at JSOC Bashneft. Dmitry Maltsev Arthur Galiakbirov Gennady Valyavin April 2015

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Delayed coking process as a way to increase crude conversion at JSOC Bashneft Dmitry Maltsev Arthur Galiakbirov Gennady Valyavin April 2015

History The most important aspects Ecology General conclusions Q&A

Project background In 2005 to increase crude conversion it was decided to build a new 1.2 MTPY Delayed Coker with a possibility of further upgrading to 1.6 MTPY UNKH throughput/conversion rate About 8,5 MTPY About 8,5 MTPY About 7 MTPY <80% <90% >95% 2006 2010 2013 The main factors of the decision to build a new DCU were: Growing economics of the industry A potential uninterrupted sales channel for high-sulfur coke Favorable macroparameters 3

Flow chart Brief description: The first Russian delayed coking unit based on domestically designed process Possibility to produce two grades of coke Maximum automation, elimination of laborintensive activities involving hard manual labor, automatic valve systems for coke drum opening and closing Closed blow down system 32-hour coking cycle in line with the best international practices for 4 coke drum systems 4

Manufacturing of coke drums Direct control over fabrication of coking drums exercised by Customer and General Design Contractor played a key role in meeting Project schedule 5

Delivery of coke drums. Final stage. Delivery of coke drums was scheduled for river navigation period. The delivery final stage was a separate project including a river bank reinforcement, construction of a road, elimination of dimensional restrictions within the refinery 6

Construction of the unit The main success factors in project schedule implementation: Joint work of Refinery and Designer teams Efficient construction management and qualified subcontractor involvement 7

Key indicators of the unit Mass balance Yield Fuel gas About 10% Naphtha to Diesel hydrotreatment Up to 8% Light gasoil to Diesel hydrotreatment Over 30% Heavy gasoil to FCC Below 18% Coke Below 34% All product quality meets further refining process requirements A Coking additive" product is produced with an increased content of volatiles (above 16%) 8

Targets reached In 2010 the unit reached its design capacity of 1,2 MTPY In 2012 the unit was revamped to improve capacity up to 1,6 MTPY In 2013 and 2014 1,6 MTPY were processed 9

History The most important aspects Ecology General conclusions Q&A

Project background In 2014 to increase crude conversion it was decided to build a new 2.0 MTPY delayed coking unit Total refinery throughput/conversion rate About 19 MTPY About 19 MTPY <90% >98% 2015 2019 The following are the main factors which resulted in a decision to build a new DCU: Imposition of fuel oil export duties Potential uninterrupted sales channel for high-sulfur coke 11

Key Success Factors Given the positive experience in the construction, in 2014 a decision was made by JSOC Bashneft to build a new delayed coking unit at UNPZ refinery with 2 MTPY capacity Construction of the new unit will allow to completely abandon fuel oil and vacuum gas oil production USPTU Making use of Foster Wheeler technology and USPTU consulting effort will integrate international licensor best practice and researchers experience in construction of the most effective delayed coking unit 12

Project description Project targets: Conversion improvement to above 98% Refinery margin improvement Project description: Capacity - 2 MTPY 4 coke drums Full automation Foster Wheeler heaters Fractionation section LPG treatment section Fuel gas treatment section Dedicated recycle water preparation section Automated coke loading system 13

Coking additive specific properties Coking additive a unique product developed in USPTU, which first allowed sales of high-sulfur coke to metallurgy where it can be used as an additive in production of metallurgical coke for iron smelting Utilization as a coking coal substitute in furnace charge increases metallurgical coke output Possibility of direct briquetting eliminating need for any binder and fillers Possibility of metallurgical coke production for blast furnaces. With 5% or higher sulfur content such coke makes an excellent material for nonferrous metal smelting Hazardous emissions at this coke grade production are reduced by 10% Same as of regular coke environmental 14 hazard

VCM content, % Selecting of feed composition Froth-over to the main column, difficult cooling and drilling 0% of cracked residual 30% of cracked residual Coking of transfer and furnace coils 70% of cracked residual Reactor Inlet temperature, C stable operation operative risk high risk critical risk As the vacuum cracked residual increases the stable control range of the process mode to produce the specified quality coke decreases As the carbonization temperature rises the coking risk of transfer and furnace coils increases, the temperature drop leads to the risk of froth-over to the main column 15

History The most important aspects Ecology General conclusions Q&A

Mitigation The emission of sulfur dioxide The unit construction according to Foster Wheeler technology allows to minimize the process environmental impact through the use of modern technical solutions: Bashnef Башнефть t 28% УНПЗ UNPZ Furnace efficiency is 90% УЗК DCU 0,1% The use of low-toxic injection nozzles with low NOx generation The emission of nitrogen oxides level 20% 5% Башнефть Bashnef УНПЗ t UNPZ УЗК DCU Purification of the gas with the hydrogen sulfide residue content up to 0.01% Minimization the coke transportation hub The emission of solid particles 24% 16% Башнефть Bashnef УНПЗ t UNPZ УЗК DCU Maintenance of the coke humidity as >7% to prevent the solid particles entrainment Closed cooling system of chambers Closed drain system Increased coke cooling cycle (24 hours instead of 16 at the existing units) 17

Optimization of hydraulic discharge of coke The main environmental advantages are achieved through the use of the improved cooling system of coke drums and sealed shut-off valves during the hydraulic discharge of coke: Increased cooling period of 9.5 hours Unique central feed and cooling water inlet system, which allows to eliminate "hot spots" in the coke mass Residual steam supply into the closed cooling system using an ejector System of coking chambers redundant shut-off valves using insulating steam flows Ramps providing energy dissipation during coke unloading Covered area for coke, preventing the blow-off of solid particles by wind during the storage 18

History The most important aspects Ecology General conclusions Q&A

General conclusions The unit construction according to Foster Wheeler technology is the reliable way to improve the oil refining depth and will allow to increase the processing margins and profitability of the company as a whole Given the wealth of Bashneft employees experience in the construction and such process operation we are confident in the success of the project The unit start-up will allow to maintain the leading position of Bashneft in refining capacity, processing depth and light oils output 20

History The most important aspects Ecology General conclusions Q&A Dmitry Maltsev Arthur Galiakbirov Gennady Valyavin April 2015