www.SINOPECEngineering.

com

Introduction of SINOPEC Engineering

Outline of SINOPEC Engineering Engineering and R&D Strength Procurement Strength Construction Strength Project Execution Summary Ongoing Project Summary

All rights reserved 2008, SINOPEC

Outline of SINOPEC Engineering

The parent of SINOPEC Engineering, SINOPEC is the 3rd largest refiner and 4th petrochemicals producer in the world and the 2nd largest crude producer in China , who ranked the 9th in the Fortune Global 500 , Listing with Revenue US$ 207.8 billion in 2008 when it produced 44million tons of crude and 8.3 billion m3 natural gas; processed 190 million tons of crude and produced 6.3 million tons of ethylene.

All rights reserved 2008, SINOPEC

Outline of SINOPEC Engineering

SINOPEC Engineering was reorganized by SINOPEC in July 2007 as a wholly owned subsidiary of SINOPEC. SINOPEC Engineering is authorized on behalf of SINOPEC to organize and integrate the resources and expertise of refining and petrochemical engineering services under SINOPEC to develop and execute global refining and petrochemical projects.

Outline of SINOPEC Engineering

SINOPEC Engineering was first presented in 1953. All through the years, SINOPEC Engineering successfully completed and delivered hundreds of EPC projects in fields of refining and petrochemical for both domestic and overseas clients, Participated developing and commercialized series proprietary technologies of refining and petrochemical industries. After reorganization, SINOPEC Engineering manages five leading engineering companies and three leading construction companies in China, total employee reaches 20,000, they are: SINOPEC Engineering -SEI SINOPEC Engineering -LPEC SINOPEC Engineering -SSEC SINOPEC Engineering -SNEC SINOPEC Engineering SNEI SINOPEC Engineering FCC SINOPEC Engineering SFCC SINOPEC Engineering -TCC

All rights reserved 2008, SINOPEC

Outline of SINOPEC Engineering

All rights reserved 2008, SINOPEC

Outline of SINOPEC Engineering

Outline of SINOPEC Engineering

Main Fields of Business:

Refinery Petrochemical complex Fertilizer Plants Pharmaceutical Plants LNG plant Long-distance pipeline Municipal facilities

Outline of SINOPEC Engineering

Scope of Services:

Project Concept Master Planning Technology transfer & licensing Feasibility study Environmental Impact Assessment Geo-technical Engineering & Engineering Surveying Process Design Package Basic & Detailed Engineering Procurement Construction & Construction Supervision Commissioning Manufacturing and Fabrication Training Maintenance and Overhaul

Engineering and R&D Strength

Human Resources:

General

To bring the SINOPEC group advantages to execute the overseas projects , SINOPEC Engineering was reorganized in 2007, with four engineering companies , four construction companies and an independent engineering technology institute .SINOPEC Engineering employees 19,000 people of which 6,000 are technical staff. Except above human resource, all 100,000 people within SINOPEC for petroleum refining and petrochemical engineering and construction are available for SINOPEC Engineering.

10

Engineering and R&D Strength

Engineering Strength:

Total 4065

Process Equipment & Mechanical Piping 487 Electrical & Instrumentation Civil,Structural & Architectural Health,Safety & Environmental Utility Draft Man

191 122 695

309

427

549

1285

Engineering and R&D Strength

SINOPEC Engineering has experienced engineering team with 6000 person, and has engineering experience for 10 million t/a refinery complex, 1 million t/a ethylene complex, 150,000 m3 single storage tank and so on. Especially, SINOPEC Engineering as PMC or EPC contractor has executed and delivered Nanhai (Joint Venture by Shell and CNOOC) 800,000t/a ethylene complex; SECCO (Joint Venture by BP and Sinopec) 900,000 t/a ethylene complex; BYC (Joint Venture by BASF and Sinopec) 600,000t/a ethylene complex since 2000. Fujian refinery and petrochemical integrated project (Joint Venture by Sinopec, ExxonMobile and Saudi Aramco) with 800,000t/a ethylene complex and 1.2 million tons per year refinery has
2500 100%

been finished by SINOPEC Engineering in 2009.

2000
Total Construction Manpower

90%

80%

70%

1500

60% % Complete

50%

1000

40%

30%

500

20%

10%

0
Manpower % Compltete

0 0

1 0

2 0

3 0

4 0

5 0 0.0%

6 106 0.4%

7 186 1.1%

8 292 2.2%

9 292 3.3%

10 345 4.6%

11 451 6.3%

12 557 8.4%

13 663 10.9%

14 822 14.0%

15 954 17.6%

16 1,087 21.7%

17 1,140 26.0%

18 1,166 30.4%

19 1,405 35.7%

20 1,643 41.9%

21 1,908 49.1%

22 1,961 56.5%

23 1,961 63.9%

24 1,961 71.3%

25 1,961 78.7%

26 1,855 85.7%

27 1,670 92.0%

28 1,246 96.7%

29 716

30 159

0%

99.4% 100.0%

Project Month

12

Engineering and R&D Strength

450000 t/a PE

1 million t/a Ethylene 12 million t/a CDU & VDU 1.5 million t/a catalytic reformer

260000 t/a AN 300000 t/a PP 15 Billion m3/a gas purification 2000 t/a Coal Gasification 450,000 t/a Ammonia

Maximum capacity of single unit

850000 t/a Methanol 2 million t/a hydro-cracker

3 million t/a catalytic cracker

4.1 million t/a diesel hydro-finishing

3.1 million t/a Residual Hydro-finishing

13

Engineering and R&D Strength

Integrated IT system

Process DB
PRO II ,ASPEN Eng. Suite, FRI,HTFS,HTRI, ZYQAD, CFX,PFR,SP PID,PDS P&ID, ASPECT, Plant Builder/Auto Router, SP Explorer, ICARUS,IPE

e-Doc.Management
DOCUMENTUM 4i, LOTUS NOTES

Engineering
Engineering DB
, VANTAGE PE, INTOOLS, CAESAR II ANSYS, INSTRUCALC, FE/PIPE, Pvelite , TANK , EDSA

3D Model DB
PDS 3D, ISOGEN, SP REVIEW,PDMS,REVIEW, I Sketch, STAAD PRO 2000

Procurement
Material Control &

Construction
Construction Management

Project Management
P3 , STAT, PMCV, PMCF, ACCPAC, Expedition,

Procurement Management
MARIAN, PMCS SPOOLGEN, CQCS

Engineering and R&D Strength

Examples For 3 D Design Hydrocracking Unit For Qingdao Refinery

Model

200,000 t/a Polypropylene Unit In Hainan Refinery

15

Engineering and R&D Strength

Major Technology Applications in The Last Ten Years

No.

Project Description

Project Scale (10 thousand per year) 300-1200 60-300 80-250 60-410

Technology/Licensor

Numbers of Project 37 74 33 75

Service Scope

1 2 3 4

CDU/ VDU

SINOPEC SINOPEC SINOPEC SINOPEC SINOPEC

EPC EPC EPC EPC

Catalytic Cracking

Delayed Coking

Hydrofining

5 6

Hydro Cracking

80-360 15-240

60 49

EPC EPC

Catalytic Reforming

SINOPEC

16

Engineering and R&D Strength

Major Technology Applications in The Last Ten Years

No. 1 2 3 4

Project Description

Project Scale (10 thousand per year) 60-100 20-60 8-30

Technology/Licensor Stone Webster Lummus--SINOPEC Basell BP Innovene SINOPEC

Numbers of Project 8 10 6 5

Service Scope EPC EPC EPC EPC

Ethylene

Polyolefin

Synthetic Rubber

Synthetic Fiber

C1 Chemical

Dow Chemical SINOPEC BP-AMOCOINVISTA 60-100 Mitsubishi EASTMAN SINOPEC BP acetic acid 35 Shell Methanol85 30~45 KBR

EPC

Ammonia

EPC

17

Engineering and R&D Strength

Technology Research & Development

Depending on demands of oil refining and petrochemical, Sinopec Engineering has

establish

a science & technology innovation system. A set of core technologies and specific technologies with international competitiveness have been developed, the whole level of science & technology have stepped into advanced train of the world.

Engineering and R&D Strength

The Organization Mode of Key Process Technologies Commercialization

Procurement Strength

General

As a wholly owned subsidiary of SINOPEC GROUP, SINOPEC Engineering takes full advantages of the Groups integrated resource network, shares the super Purchasing Capability of the Group. A reliable supply network established with more than 20,000 qualified suppliers is always a success guarantee to our projects.

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Procurement Strength

Procurement manager 96 35 42 Procurement coordinator Senior buyer Buyer 38 19 33 69 60 Purchasing clerk Traffic clerk Expediter Others

Total 392

Procurement Strength

MARIAN Application Program

3D Plant Design Model

Other system/ manual take off

ISOs MTO

Sinopec Eng. Finance System PO's

MRR's MIRs

MLCL

E&PI
BOM by WBS,Version Req Template

MSCM
Inquiry Quote PO Supplier Lib Requisitions Req Planning Expedite Traffic MRR's OS&D's PO's

SITE
MRRs MIRs OS&Ds MRSs Matl Res.

MARIAN

Comm. Group Comm. Part Comm.Code Ident Code Description

BOMS

Sinopec Eng. Reports

Sinopec Eng. Reports

Sinopec Eng. Reports

Procurement Strength

Inspection-Sequence and Execution

Quality Requirements Specification Requisition Approval of Vendors QC Documents Request for Inspection Inspectors Assignment

Notice to Client Application for Inspection

Inspection Release Certificate

Inspection Resident Inspection Witness Inspection Confirmation by Records Review

Finding Non Conformance

Corrective Action by Vendor

MDR Review & Approval

Inspection

Procurement Strength

Expediting-TYPICAL ACTIVITIES

Specification Requisition P.O. Copy

Attending Kick-off Meeting

Expediting Vendors Documents Not Completed

Monitoring Material Suborders Status

Shipment Receiving Cargo Readiness Notice

Expediting As-Built Document Submission

Monitoring Fabrication Progress

Completed Expediting Shipping Preparation Issuing Release for Shipping Preparation Issuing Inspection Release Certificate

Inspection

Procurement Strength

Packing and Shipping

Purchase Order Space Booking

Manufacturing

Logistic Planning

Ready for Shipment

Export Packing

Export Clearance

Forwarding Contract Loading in Ship

Unloading from Ship

Import Customs Clearance

Inland Transport to Site

Unloading at Plant Site

Procurement Strength

Strong procurement and supply capability for oil & petrochemical related equipment and materials

22 20 18 16 14 12 10 8 6 4 2 0 2002
26

20.41 16.97

14.52 13.03

9.14 7.87

Total Purchase Value (Billion US$)

2003

2004

2005

2006

2007

Procurement Strength

Overseas Procurement Subsidiaries

Procurement Strength

Domestic Offices

Yanshan Tianjin Qilu Jiangsu Jinling Yizheng Nanhua Yangzi Jinshan East Shanghai Gaoqiao Zhenhai Fujian Guangzhou Maoming Zhongnan Chongqing

28

Procurement Strength

Procurement

Supplier Sourcing Worldwide

Total Qualified:

20,098 Suppliers (including 1211 offshore suppliers)

A Level: 2,286 Suppliers 33 Strategic suppliers: 23(onshore)+10(offshore)

B Level: 16,601 Suppliers

Procurement Strength

Procurement

Annually Purchasing Volume (Onshore/offshore)

2006 :

Total:

RMB

131.5 USD RMB

billion 3.23 113.0 billion billion

Import/export: E-Procurement:

2007 :

Total:

RMB

158.2 USD RMB

billion 4.61 145.5 billion billion

Import/export: E-Procurement:

Procurement Strength

Procurement

Operation Platform for Material Control

For EPC Projects: Intergraph Marian VPRM

SINOPEC Internal ERP System SAP

E-Commerce: www.SINOPEC-ec.com.cn

Procurement Strength

Procurement

Logistics

Rich Experienced Logistics Experts/Engineers,

Professional Management of the Door to Door Service for Projects of different nature.

Comprehensive range of sea, air forwarding and land transportation, combined shipment & Transshipment etc.

Procurement Strength

Pre-fabrication Shop For Pipe Spool Pre-fabrication Shop For Pipe Spool Pre-fabrication Shop For Structural Steel

SINOPEC has Advanced Structural Steel And Pipe Spool Pre-fabrication Shop with more than 60% Pre-fabrication capability

33

Procurement Strength

Manufactured Reactor Manufacture d Reactor

Manufactured Reactor SINOPEC owns three large equipment manufacturing plants, i.e. Ningbo Mechanical Manufacturing Company, Shanghai Petrochemical Machinery Manufacturing Company and Nanjing Chemical Machinery Manufacturing Factory. Compared with other petrochemical equipment manufacturers in China, all the three plants have the most advanced process equipments and information management system capable of developing and manufacturing of petrochemical patent and proprietary equipments. The total production capacity of manufacturing more than 200,000 t/a customized equipment.

34

Procurement Strength

Over Size Equipment Handling

Construction Strength

General

With the most experienced engineers, skilled workers, and equipped with the most advanced machineries, SINOPEC Engineering is fully capable of constructing, construction supervision and management for large-scale refinery, petrochemical and Chemical plants, thermal power plant, and hoisting and erecting oversized and heavy equipment, large size storage tank and long distance pipeline etc.

36

Construction Strength

Construction Manpower

Construction Managers Construction Supervisors Welders 751 Plumbers Riveters 639 497 3225 Locksmithes 757 2114 Cranemen Electricians/Instrument staffs Others

805 2473

740

Total 12001

Construction Strength

Construction Strengths

Lifting And Transportation Of Large Equipments

Installation Of Large Machinery Train

Construction Experien ce In Low and High Te mperature Region

Technical Advantage of Project Execution

Construction Of Large Storage Tank

Equipment Manufacturing

Shop Pre-fabrication For Pipe And Structural Steel

38

Construction Strength

Construction Equipment Tools

Crane Auto Welding Machine Metal Machining Equipment Transportation Facilities Testing & Inspection Equipment

200-1600Tons

19 1000 460 210 1260

Construction Strength

Heavy Lifting SINOPEC posses the world top Lifting and Transportation Super-Larger and heavy Equipment

SINOPEC Own 6*500t crane

10*726t reactor

SINOPEC Own the 4*1200t trailer

SINOPEC Own the 1100t crane

A Type frame lifting Flare

SINOPEC Own 8*500t trailer

SINOPEC Own the1250T Crane

5200mm x 120m Reactor from harbor to job site

40

Construction Strength

This is unique software for lifting system in the world so far

Lifting software

Hoisting Simulating

Safety First

Construction Strength

Installation of Large Assemblage Compressor of Large Compressor

Tuning of Large Compressor

42

Construction Strength

Tank Farm

43

Construction Strength

Certification of Safety Performance

Construction Strength

Safety Performance Award

Construction Strength

On Schedule Award

Project Execution Summary

General

SINOPEC Engineering has EPC execution experience for 10 million t/a refinery complex, 1 million t/a ethylene complex, 150,000 m3 storage tank, 160,000 m3 Cryogenic LNG storage tank.

47

Project Execution Summary

Project Execution Strength

320 450

180

195 410

Management Project Manager SHEMS&Welfare QA/QC (Sub)Contracting Administrative Estimating

420 360 185

380

Cost Controllers Scheduling

Total 2900

Project Execution Summary

Project Management and Engineering Software

Application Software

Engineering

Project Management

Process Simulation
PROII ASPEN HTRI TSWEET

3-D Design
PDS PDMS SP3D

Project Management
PREMERVIA GPLAN PROJECT

Material Control
MARIAN PMCS

Document Control
DOCUMENTUM SHAREPOINT WISE

49

Project Execution Summary

Project Management Objective Definition

Project management

Effective use of management resources

Integration/Optimization of Objectives

Resources Manpower Equipment /Machinery Material Money/fund Technology / Methods Information Achievement of Project Targets

Project Goals Quality:high-quality product Safety zero lost time incidents ScheduleOn-time Costs within budgets

Project Execution Summary

Project Control Cycle

Defined Scope Of Work

Change Log Management

Define Measure Method & Std.

Establish A Control Baseline Defect

Trace Check Measures To Be Taken Trend Analysis

Completion

Project Execution Summary

Project control based on Engineering Database

Contract

Costs Schedule

Project Finance Materials Control Procurement

Project Execution Summary

Achievement

Fujian 10MTA Refinery and 800,000TA Ethylene Project JV by SINOPEC/ Aramco/Exxon

Project Execution Summary

Achievement

Shanghai SECCO 900,000TA Ethylene Project

JV by SINOPEC/bp

Project Execution Summary

Achievement

YBPC600,000TA Ethylene Project

JV by SINOPEC/BASF

Project Execution Summary

Achievement CSPC 800,000TA Ethylene Project

JV by CNOOC/SHELL

Project Execution Summary

Achievement Zhenhai Refinery (Video)

Project Execution Summary

Achievement

Rehabilitation of the Unit 1 & 2 of Mehardeh Power Plant, Syria

Oil Receiving Terminal in Caspian Sea, Iran

Project Execution Summary

Domestic Major Achievements

Project Execution Summary

Overseas Achievements
N O 1 2 3 4 5 6 DESCRIPTION WORK SCOPE CONTRACT TYPE APPROXIMATE CONTRACT VALUE (US $) 750 Million 194 Million 52 Million 96 Million 40 Million 3184 Million CONTRACT DURATION 2005-2008 2006-2008 2006-2008 2007-2009 2008-2008 2006-2009 COUNTRY

YANSAB Polyolefin Complex Project Rabigh Development Project Hawiyah Gas Plant Expansion Project SABIC EO/EG Project Yanbu BBTX Project Shazand Arak Refinery Expansion And Upgrading Project Esfahan Refinery Upgrading Project Tabriz Refinery Upgrading Project CROS (Caspian-sea Republic Oil Swap) Project Khartoum Refinery Expansion to 5,000,000 t/y 2,500,000 t/y Khartoum Refinery Project Meharden Power Plant Project Fertilizer Project Mina Al-Ahamadi Refinery Restoration Project Shuaiba Refinery Tankage Project

EPC C C CM+C C EPC

Consortium Partner, Lump Sum Subcontractor, Lump Sum Subcontractor, Lump Sum Subcontractor, Lump Sum Subcontractor, Lump Sum Consortium Partner, Lump Sum

Saudi Arabia Saudi Arabia Saudi Arabia Saudi Arabia Saudi Arabia Iran

7 8 9 10 11 12 13 14 15

EPC EPC EPC E E CM+C C E, P, C, EPC

Main Contractor, Lump Sum Main Contractor, Lump Sum Main Contractor, Lump Sum Subcontractor, Lump Sum Subcontractor, Lump Sum Construction Contractor, Lump Sum Construction Contractor, lump Sum Unit Price Contract Main Contractor, Lump Sum

700 Million 140 Million 140 Million 40 Million 45 Million 50 Million 20 Million 140 Million 9.97 Million

2007-2010 2006-2009 2002-2003 2000-2003 1996- 2000 2004-2006 2000-2002 1992-1994 1997-1998

Iran Iran Iran Sudan Sudan Syria Jordan Kuwait Kuwait

Financing Ability

General

SINOPEC Engineering has established good relationship with resources which can provide beneficial financing solutions, includes equipment financing and capital loans; we can structure financing which will satisfy your specific business requirements - which can hedge your current and future needs.

61

Partial Project Summary

General

SINOPEC Engineering has done refinery and petrochemical projects in Saudi Arabia. It is partial example for EPC execution.

62

Partial Project Summary

SABIC YANSAN Polyolefin Project

OwnerYANSAB SABIC EPC ContractorConsortium of SINOPEC Engineering and Aker Solution Contract schedule: 2005.7.20 to 2008.3.3031.5 months Contract value750M USD Peaking manpower: 3000

Partial Project Summary

PP/PE/PHU Design Bird View

Partial Project Summary

PP/PE Site Pictures

Partial Project Summary

PP/PE Site Pictures

Partial Project Summary

RABIGH Refinery Development Project

OwnerPETRORABIGH ARAMCO EPC ContractorTecnicas Reunidas Contract Scope: Construction Contract Schedule: 2006.5.4 to 2008.6.1524 months Contract Value192M USD Peaking Manpower: 3200

Partial Project Summary

Refinery Project Site Picture

Partial Project Summary

Refinery Project Site Pictures

Partial Project Summary

Mechanical Completion

Partial Project Summary

SABIC KAYAN EO/EG Project

OwnerSAUDI KAYAN EPC ContractorCTCI and SINOPEC Engineering Contract Scope: Construction and CM Contract Schedule: 2006.11 to 2009.733 months Contract value96M USD Peaking manpower: 1400

Partial Project Summary

EO/EG 3D Model

Partial Project Summary

EO/EG Project Site Pictures

Partial Project Summary

EO/EG Washing Tower lifting

Partial Project Summary

On going project in Saudi Arabia

Name of the Project: HAWIYAH Gas Plant Expansion Project Owner ARAMCO EPC Contractor Tecnicas Reunidas Contract Scope: Construction Contract Schedule: 2006.10.31 to 2008.6.30, 20 months Contract value52M USD Peaking manpower: 2000

Partial Project Summary

Gas Plant Site Pictures

Partial Project Summary

Heavy lifting

Shop Fabricating

Partial Project Summary

SABIC YANSAB BBTX Project

Owner YANSAB SABIC EPC ContractorStone Webster Contract Scope: Construction Contract Schedule: 2008.1.16 to 2008.9.30, 8.5 months Contract value39.6M USD Peaking manpower: 1200

Partial Project Summary

BBTX Project Site Pictures

Partial Project Summary

SINOPEC Engineering Camps in Saudi Arabia

JUBAIL:1800

YANBU:3000

HAWIYAH:2200 PETRORABIGH:3200

Partial Project Summary

Camps in Saudi Arabia

Concluded

One Project One Team, Team up with both International Engineering and Local Companies

Know how to manage and realize safety approaches for gross root and revamping refinery and petrochemical projects

Know how to manage and get on schedule for gross root and revamping refinery and petrochemical projects

Concluded