ATTOCK REFINERY LIMITED

Great Heritage-Greater Vision

 Oct 10 - 16, 2005

Attock Refinery Limited is the oldest refinery of South Asia. Since its commissioning after World War-I, it has passed through various stages of transformation and has stood through time of war and peace. From batch distillation stills of 2,500 BPD, today it has grown into a modern state-of-the-art refinery with a capacity of 40,000 BPD.

Attock Refinery Limited (ARL) is the pioneer in crude oil refining in the country with its operations dating back to the early 19th century. Backed by a rich experience of more than 80 years of its successful operations, ARL's plants have been gradually upgraded/replaced with state-of-the-art hardware to remain competitive and to meet new challenges and requirements.

ARL was incorporated as a private limited company in November, 1978, to take the business of the Attock Oil Company Limited (AOC) relating to refining of crude oil and supplying of refined petroleum products. It was subsequently converted into a public limited company in June 1979 and is listed on the three stock exchanges of the country. The Company is also registered with the Central Depository Company of Pakistan (CDC).

Strategically located at Rawalpindi, ARL's configuration/processing allows it to process from the lightest to the heaviest (23-65 API) crudes to produce a complete range of petroleum products from LPG to Asphalt including specialty products such as Jet Fuels (Jet A 1, JP-4, and JP-8), Cutback Asphalts, Polymer Modified Asphalt, Mineral Turpentine Oil and Solvent Oil.

It all began in 1922, when two small (2,500 barrel per day) 'Stills' came on stream at Morgah. The setting up of these facilities followed the first discovery of oil at Khaur where drilling started on January 22, 1915, and at a very shallow depth of 223 feet 5,000 barrels of oil flowed. Fortune turned in 1937 with the discovery of oil in Well No. 7 at Dhulian. As the crude availability and the demand for petroleum products in the area increased, the refinery was expanded in late thirties and early forties. A 5,500 BPD Lummus Two-Stage-Distillation Unit, a Dubbs Thermal Cracker, Lubricating Oil Refinery with wax purification facility and the Edeleanu Solvent Extraction unit for smoke-point correction of kerosene were added. With subsequent discoveries of oil, the capacity of refinery was increased in 1981 by the addition of two distillation units of 5,000 and 20,000 BPD capacity each. Another major expansion and upgradation project was completed in 1999 with the installation of Heavy Crude Unit of 10,000 bpd and a Catalytic Reformer of 5,000 bpd. A Captive Power Plant with installed capacity of 7.5 Megawatt was commissioned in 2000. ARL's current nameplate capacity stands at 40,000 BPD.

ARL VISION 2020 & MISSION 2010

With its corporate vision for becoming a world class and leading organization continuously providing high quality and environment-friendly energy resources, ARL wants to be seen as a model diversified energy resource and petrochemical organization exceeding expectations of all stakeholders. We believe that our success is not a matter of chance, but of commitment to the enduring beliefs and values that are engrained in the way we think and take actions to pursue a climate of excellence.

CRUDE RECEIPTS AT ARL

ARL is receiving and processing crude from Northern and Southern oil fields of Pakistan. Crude from the Southern fields is light sweet whereas the crude from Northern fields comprises Light Sweet, Light Sour and Medium/Heavy type. 70% of crude processed at ARL is received through pipeline and the rest is through road bowsers.

Southern crude is received at Khaur Crude Decanting Facility (KCDF), which is located 100 kilometers from refinery in Khaur. Pipeline from KCDF allows transportation of crude to ARL thus reducing road bowser traffic in the city area.

VALUE ADDITION

ARL is in continuous search for value-added products and has now embarked on the production of Polymer Modified Bitumen (PMB), which is the first venture of this kind in the country and in line with our long term commitment for bringing innovation to our valued customers, ensuring durability and maintainability of Pakistan's roads in the process. This can be evaluated not only through our investment in PMB plant which was inaugurated in March 2001, but also through various trial sections carried out with our PMB which are performing very well for over two years now.

Recently ARL has also successfully added JP8 to its range of Jet fuels production, which already included JP1 and JP4.

ARL has already supplied Low Sulfur Diesel and Low Sulfur Furnace Oil to the market in line with its policy of producing more environment friendly fuels and is now also producing unleaded gasoline. ARL is now targeting low benzene and low aromatics gasoline production.

EXPORTS

In line with the government policy for maximization of exports, ARL has also successfully started export of PMG, HSD and jet fuels to Afghanistan and Petrochemical grade Naphtha to Singapore, Middle East, etc.

CONTRIBUTION TO THE NATIONAL ECONOMY OF PAKISTAN

ARL is strategically located in the Oil and energy sector providing petroleum products to the Northern Region of the country and simultaneously providing an outlet to crude oil produced in the Potohar Region of Pakistan.

ARL is enormously contributing towards the economy of Pakistan in the following manner:

•Supplying petroleum products to Civil and Defence markets including airlines, railways, power stations, cement and other industries.

•Providing an outlet to indigenous production of crude oil in Pakistan and particularly from the Potohar Region otherwise required to be exported or transported at huge cost.

•Generation of government duties/taxes on supply of petroleum products including General Sales Tax.

•Generation of foreign exchange earnings through exporting petroleum products, including Naphtha/Jet Fuels.

•Providing employment and work opportunities in the Refinery including deployment of large transportation fleet of crude oil and products.

ARL & GOOD BUSINESS PRACTICES

At Attock Refinery Limited, we are committed to follow the highest standards of ethical business practices. Our actions are governed by the values and principles that we share. We have committed ourselves to conduct the business in an honest, ethical, transparent and legal manner. The company wants to be seen as a role model in the Corporate World and Community by its conduct and business practices. We believe in transparency, maximum disclosures and strict compliance to law. We help our employees in keeping them fully abreast of the latest knowledge and skills through in-house and out-sourced training and development programs.

ARL ensures full compliance with:

1. Code of Corporate Governance issued by the Securities & Exchange Commission of Pakistan.
2. ARL's Statement of Ethics and Business Practices
3. ARL Core Values; and
4. Code of Practice for Gender Justice at the workplace.

ARL compliance with the Good Business practices is evident from awards/recognitions received from:

- The Institute of Chartered Accountants of Pakistan;
- The Institute of Cost and Management Accountants of Pakistan;
- Securities and Exchange Commission of Pakistan;
- Management Association of Pakistan.

BEST CORPORATE REPORT IN ENERGY SECTOR

3rd Position 2000
2nd Position 2001
1st Position 2002
2nd Position 2003
1st Position 2004

COUNTRY'S CORPORATE EXCELLENCE AWARD

1st Position 2002

EXPORTER OF THE REGION IN PETROLEUM PRODUCTS

1st Position 2003
1st Position 2004
1st Position 2005

CORPORATE SOCIAL RESPONSIBILITY (CSR)

ARL promotes sustainable community development as part of its core values to create the foundation for a more equitable, just, productive, competitive and knowledge-based environment. As a responsible corporate citizen, ARL has always believed in working as part of community and has made sizable contributions for projects in the field of environment, health, income generation, women development, HRD, education and sports.

ARL's activities in this domain are distinguished from others on account of innovative in nature. ARL's Corporate Social Responsibility (CSR) Initiatives whether in the field of environment, health care, development of women skills, elimination of poverty or conservation of rich biodiversity are all sustainable in nature.

FUTURE EXPANSION PLANS

ARL's management is committed to achieve the target of enhancing its refining capacity, provision of environment-friendly quality petroleum products, clean, pollution-free production practices; and improved services. As part of ARL's business diversification plans, a White Petroleum Oil pipeline project has been launched considering it the safest, economical, most reliable and environment-friendly mode of transportation. Similarly, ARL is also proposing to build a 150 MW Power Plant based on the Low Sulphur Fuel Oil (LSFO) from the indigenous crude oil processed at the ARL refinery in Rawalpindi, Pakistan.