Talara Refinery Modernization Project 33b2b

TALARA REFINERY MODERNIZATION PROJECT (PMRT) What is PMRT Currently, the project to modernize the Talara Refinery (PMRT) is the country's largest hydroelectric megaproject. It will produce cleaner fuels, ensuring the preservation of air and hence the health of all Peruvians. The PMRT includes the expansion and modernization of industrial facilities Talara Refinery PETROPERÚ to manufacture LPG, gasoline and diesel 2 with a maximum content of 50 parts per million sulfur (ppb). The PMRT ensures the country's energy development permitting: • Increase by more than 45% production capacity of the refinery, ie switch production from 65,000 to 95,000 barrels per day (b / d). • Increase the availability of industrial infrastructure (operational flexibility) to process highdensity oils, known as heavy oil, and move to produce more fuel. • desulfurize fuels (lower sulfur levels). • Process oils high density or heavy crude in the Peruvian jungle, which constitute the major oil reserves in Peru

law 30130 Thanks to a partnership between the Government and PETROPERÚ the PMRT has a legal guarantee of viability: No. 30130, "An Act declaring the public necessity and national interest law enforcement priority in the modernization of the Talara refinery to ensure the preservation of air quality and public health and adopts measures to strengthen the corporate governance of Petroleos del Peru - PETROPERÚ SA ". Regulation of Law No. 30130 was issued on March 24, 2014 by DS EM No. 008-2014. On 12 April 2014, the Ministerial Resolution No. 126-2014-EF / 52 of the Ministry of Economy and Finance (MEF) was issued authorizing the conclusion of short-term debt of the Project, for $ 500 million. About Talara Refinery - History Early last century settled in Talara, coastal province of Piura, the first oil refinery in the country. The desert and the sea of Talara keep deposits that ancient Peruvians called "I Cope", a kind of tar greatly appreciated by the Spaniards who conquered the Tawantinsuyu. This wealth made this city, in the twentieth century, one of the most important centers of industrial exploitation of petroleum in Peru. The current refining capacity totals 65 MBD. The refinery was a pioneer in the country, with a refining scheme middle conversion, typical of the late seventies, that although istered very efficiently, urgently needed to increase capacity and complexity to improve its economy and succeed in producing clean fuels with lower sulfur content.

Talara Refinery today develops refining and marketing of hydrocarbons in domestic and international market. Produce cooking gas LPG, motor gasoline, solvents, A-1 turbo, diesel 2 industrial oils and asphalts export quality. Benefits of PMRT The development of the Talara Refinery Modernization Project brings great benefits to the northern region and the country. Health: To contribute to the improvement of public health • Decrease the sulfur content in fuels. • Help reduce the frequency of respiratory diseases. • Contribute to the reduction of costs for health and hospital care of Peruvians. Environment: Preservation of air quality • Produce and market fuels with low sulfur content (50 ppm). • Produce Diesel 2 which is 40 times cleaner. • Improve recovery and rational use of energy. Economy: Generating multiple economic benefits to the country • Generate about 14 thousand direct and indirect jobs in construction phase. • boost the economy of the northern region. • During the construction phase, the PMRT contribute approximately 1 MUS $ 860 to the national GDP. • Rentabilizará to the Company at no cost to the Peruvians. • Will provide taxes and taxes for the Peruvian government. • Improve hydrocarbons trade balance by reducing imports of diesel and petrol. Energy Security: Contribution to energy development in the country • Ensure the production and supply of domestic fuels, reducing imports. • Allow processing of heavy crude in the Peruvian jungle, where production will start soon. • Ensure greater participation in the oil market, meeting the growing demand of the country. • Apply the latest technology in the refining process, such as "hydrodesulfurization" fuel and "waste-deep." • Ensure national supply through the fuel distribution network. PETROPERÚ reaches the most remote places in the mountains and jungle of Peru

• Frequently 1.Preguntas Does PMRT is a new refinery?

Technically yes; process because the facilities and services considered in the project are new. Some existing equipment and systems to be modernized recover previously Was this helpful? 9 0 Hits: 547 • How many teams will be reused in the new refinery?

Only 5%, ie, 73 process equipment will be reused, which are basically the Topping Unit. The other 95% are new equipment. Was this helpful? 7 0 Hits: 536 • How much is the investment of the project?

The investment amounts are PETROPERÚ Project and the private sector, but not by taxpayers. The total investment is about 3,500 million dollars, of which 2,730 million will be financed by PETROPERÚ and the remaining amount will do private companies specialized in industrial services through outsourcing mode through international tenders. Was this helpful? June 2 Hits: 626

How the PMRT benefit all Peruvians?

The PMRT will improve the health of people, as it will drastically reduce the sulfur content in diesel, gasoline and LPG, which now supplies the whole country PETROPERÚ. Moreover, it is a project that contributes to the country's energy development and, within this framework, the use of fuel represents a substantial contribution to the current energy policy of

Peru. Currently, the Talara refinery produces 65,000 barrels per day (bpd), while the new project will increase to 95 thousand barrels per day. That means almost a further increase to 45% of current production. It is also a project that will provide multiple economic benefits for the country, particularly in the northern region, allowing fulfill important public investment programs in health, education, infrastructure, among other sectors. Was this helpful? 7 0 Hits: 507 • Why do we need fuels with low sulfur content?

For thus reducing impacts on the health of all Peruvians and useful life of vehicles is increased. Was this helpful? July 1 Hits: 386 • Why do we say that the project will improve the health and quality of life?

Because it will drastically reduce the sulfur content in diesel, gasoline and LPG PETROPERÚ now supplies throughout the country. Numerous studies have shown the relationship between sulfur and the generation of respiratory diseases. Therefore, there will be a savings in health costs. Also, more than 14 thousand direct and indirect, both in the construction phase and the operation phase will generate work; which consequently brings progress, especially for the people of the north. Was this helpful? 6 0 Hits: 360 • Why do we say that the Project will improve the environment?

Because they are going to produce clean fuels. This will improve air quality and health of Peruvians. Was this helpful? 5 0 Hits: 341

• Why delay both the development of PMRT?

The complexity of the project has definitely influenced the time of dossier preparation and engineering cost estimates and economic evaluations. However, note the t work between the Peruvian government and PETROPERÚ to launch the project. Thus it shall be carried within the framework of Law No. 30130 and its regulations. Was this helpful? February 8 Hits: 502 • What technologies will be used in the PMRT?

Following a technical and economic evaluation, it was determined that the technology called 'Flexicoking' is the most appropriate and beneficial to increase the conversion of heavy residues and turn them into more valuable light products and clean. The technology is most suitable because the coke produced can be used as an energy source for the same refinery. In addition, he is a friendly technology environment. Was this helpful? February 8 Hits: 520 • Is it really the PMRT a profitable investment for the country?

Of course, it is highly cost effective. The profitability of PMRT for the country is given by the use of heavier crudes, which are cheaper in the market, the highest yield of lighter fuel prices, and the increased capacity of the Refinery. In addition, indirect benefits such as providing energy security, employment, value added and GDP, reduction of environmental pollution for the population will. Was this helpful? September 2 Hits: 471 • How the call and selection will be made to develop jobs for the PMRT?

Manager 08/04/2014 PETROPERÚ has hired international business Gathered Techniques of Spain, to carry out the Service Building New Talara. In the first months of execution of the services, Technical Reunidas (TR) sub-contract construction companies in the country which will have the task of carrying out all construction work for the new refinery. The subcontractor selection process will take place in a gradual manner according to the timetables set out in the contract with Gathered Techniques. Also recruiting staff for various jobs will be performed by subcontractors according to the profiles for each stage of construction. It is estimated that recruitment by subcontractors will begin in the last quarter of this year.