NATIONAL REFINERY LIMITED

An overview

SADAF AURANGZAIB
Oct 22 - 28, 2007

Oil refineries has played a pivotal role in contributing to the over all development of the Petroleum industry in Pakistan. One such Refinery is National Refinery Limited (NRL). It was incorporated as a public limited company at Karachi in 1963. Government of Pakistan took over the management of NRL under the Economic Reforms Order, 1972. Presently NRL is under the Ministry of Petroleum and Natural Resources which is exercising control through its shareholding in State Petroleum Refining and Petrochemical Corporation (PERAC).

NRL is a petroleum refining and petrochemical complex producing a wide range of fuels, lubes, BTX (petrochemicals), asphalts and specialty products for domestic consumption and export. It is located on a plot comprising 263 acres in the Korangi Industrial Area of Karachi.

In June 2003 the Government of Pakistan decided to include NRL in its privatisation programme. The selling to 51% equity and transfer of management control to a strategic investor had been proposed accordingly, the due diligence process for the privatization was initiated. After competitive bidding NRL was acquired by Attock Oil Group in July 2005 and the management control of NRL was taken over by Attock Oil Group in July 2005.

LANDMARKS ACHIEVED BY NRL IN CHRONOLOGICAL ORDER

1966
FIRST LUBE REFINERY

The construction work of first Lube Refinery was started in May 1964. The Refinery came into production in June 1966, with crude oil refining capacity of 600,000 tons per annum and production of 76,000 tons of various grades of Lube Base Oils and 100,000 tons of Asphalt per annum. This Refinery also supplemented fuel products requirement of the country particularly Kerosene and Diesel.

1972

On January 16, 1972, the Government of Pakistan took over the management of the Refinery under the Economic Reforms Order. The overall managerial directions were entrusted to the Ministry of Production.

1977
FUEL REFINERY

The growth in demand of fuel products in the subsequent years, after installation of first Lube Refinery, impelled the need for further increase in refining capacity. In the year 1974, National Refinery Limited signed an agreement with Industrial Export and Import of Romania to construct a Fuel Refinery having crude refining capacity of 1.5 million tons per year on turnkey basis. Since the Fuel Refinery was to be integrated with the first Lube Refinery, a site on the same premises was selected.

NRL's Fuel Refinery was a fresh addition on the country's growing industrial landscape. The Fuel Refinery was commissioned in 1977 for producing LPG, Motor Gasoline, HOBC, Naphtha, Kerosene, Jet Fuels (JP-l), (JP-4), High Speed Diesel Oil (HSD), Furnace Oil.

1979
BTX PLANT

In order to meet country's demand of petrochemicals/solvents Benzene, Toluene and Xylene, particularly Toluene, to meet Defense requirements, installation of a BTX plant was seen feasible. Feedstock to BTX plant was also available from the Fuel Refinery. A Petrochemical BTX plant was therefore installed in 1979, which was capable of producing 25,000 Metric tons of Benzene, Toluene and Xylene.

The country's first petrochemicals unit was integrated with the units of the Fuel Refinery. currently it is out of operation.

1980
PROPANE RECOVERY UNIT (PRU)

In order to meet high purity Propane requirement for extraction and refrigeration at various units of Lube Refinery, a Propane Recovery Unit was installed and commissioned in 1980. Detailed engineering and fabrication for the entire plant was done locally. The plant is designed to produce 1,200 tons per annum of high purity Propane, which meets the requirement of both Lube Refineries.

1985
SECOND LUBE REFINERY

In early 1980's the industrial growth in Pakistan changed the petroleum products supply demand scenario. Fuel business was saturating whereas there was a captive market of lube oils in the region. In view of this, NRL installed its second Lube Refinery which was commissioned in 1985 for producing 100,000 tons of Lube Base Oils. The feedstock for this Lube Refinery was available as surplus Furnace Oil from Fuel Refinery, which was upgraded to Lubes. Basic engineering and design work for this project was carried out by CE Lummus of U.K under consultation with Taxaco Development Corporation of USA As a result of concerted efforts, a refinery representing the latest technology appeared in the highly impressive NRL Complex. The completion of second Lube Refinery created the largest and the most comprehensive crude oil refining complex in the country

1990
FUEL REFINERY REVAMP

Demand of fuel products in the country had positive growth rates in the late eighties. However, the cost effectiveness of the projects gained prior importance. Thus, in order to keep-up the pace with modern refineries and to reduce the processing cost per barrel of crude, NRL implemented its Fuel Refinery Revamp Project in 1990. The revamp project was based on Energy Conservation, enabling the capacity increase by 15,000 BPSD without increasing energy consumption. Meter the revamp, the total crude processing capacity of NRL was enhanced to about 3.0 million tons per year.

The balancing and modernization of plat forming unit was undertaken in 1995 and installation of larger sized reactors in 1997. Increased production of High Octane reformat by 70%, gave potential for production of high quality, unleaded motor gasoline.

1998

The corporate control of National Refinery was transferred to the Ministry of Petroleum & Natural Resources.

2000
SELF POWER GENERATION

Based on the principle of cogeneration from high pressure steam boiler, a 7.5 MW power generation unit has been installed to decrease dependence on purchased power supply. With the commissioning in year 2000, the Self Power Generation, beside energy conservation and supplying low cost electricity, will also help in reducing production losses due to interruption in power supply.

NRL CORPORATE OBJECTIVES

Contribute in national efforts toward attaining sustainable self-efficiency in petroleum products.

Human Resource development by upgrading training facilities and exposure to modern technologies / management techniques.

Balancing and Modernization for energy conservation and enhanced yield of value added products as well as revamping for environment friendly products.

Expansion of refining capacity by debottlenecking and adding new facilities.

Acquire newer generation technologies for efficient refinery operations as well as for attaining highest standards of Occupational Health, Safety and Environment.

Ensure reasonable return on shareholders' existing and projected investment.

Acquiring self-sufficiency in re-engineering, design and fabrication of equipment.

National Refinery Limited is engaged in the manufacturing of a wide range of petroleum products with the objective to achieve sustainable productivity, profitability and high standards of safety, occupational health and environmental care. This entails human resource development, enhancing value addition, implementing conservation measures and growth by up-gradation and addition of newer generation technologies.

CAPACITY ENHANCEMENT / REVAMPS AND PRODUCT QUALITY IMPROVEMENT PROJECTS

LUBE II REFINERY DEWAXING UNIT REVAMP PROJECT

In order to meet the growing demand of LBO, a Lube Revamp Project has been undertaken with the technical assistance of Exxon Mobil. On completion of the project, the production capacity of the second lube refinery will be enhanced by 14,800 tpa. Dilchill Crystallization Process Technology will be utilized for production of high viscosity bright stock (BS HVI) grade of lube oil. Estimated cost of the project is Rs. 962 million. The project is expected to be completed in 3rd quarter of 2005.

OCTANE NUMBER IMPROVEMENT PROJECT

NRL has executed formal agreement with UOP for conducting scoping studies leading to the possible induction of improved technology at the Platformer unit. NRL expects to enhance capacity to produce MS 90 Octane or extend cycle of operation to 36 months after project completion. The project will provide flexibility for meeting future MS specifications of higher Octane.

HSD DESULFURIZATION PROJECT

NRL is presently producing HSD of around 1.0 % sulfur content. In view of clean fuel quality requirements, NRL is planning upgradation of its facilities to enable production of HSD of 0.05 wt. % Sulfur content. Ultimate aim is to reduce sulfur further to 50 parts per million. UOP, an international process designer & licensor, is carrying out techno economic feasibility for conversion of redundant Kero Hydrobon unit to Diesel service.

After project completion, NRL will be the first refinery in Pakistan to produce diesel of low sulfur upto 500 ppm and further to less than 50 ppm-ULSD ( ULSD -- Ultra Low Sulphur Diesel ), i.e. Euro IV Specification.

NRL KEY SUPPLIER AND CUSTOMER

Supplier:

* Saudi Arabian Oil Company (Saudi Aramco)
* E.N.I Pakistan Ltd.
* Oil and Gas development company limited
* B.H.P Petroleum
* Pakistan Petroleum Limited
* O.P.I (Pvt) Ltd
* O.M.V Pakistan
* British Petroleum

Customer:

FUEL PRODUCTS

* Attock Petroleum Ltd (APL)
* Pakistan State Oil Company Ltd.
* Shell Pakistan Ltd
* Caltex Oil Pakistan Ltd
* Total PARCO Pakistan Ltd.

LUBE BASE OILS

* Attock Petroleum Ltd (APL)
* Pakistan State Oil Company Ltd.

ASPHALT

* Attock Petroleum Limited (APL)
* Frontier Works Organization (FWO)

SPECIALTY PRODUCTS

* Attock Petroleum Ltd (APL)

FUEL PRODUCTS: THE PRODUCTS MANUFACTURED AT NRL

Motor Gasoline (MOGAS)
Kerosene (SKO)
JP1
JP4
High Speed diesel Oil (HSD)
Light diesel oil (LDO)
Furnace Oil (F.O)
Liquefied Petroleum Gas (LPG)
Naphtha (For Export)

LUBE BASE OILS MANUFACTURED AT NRL

65N-HVI
100N-HVI
150N-HVI
400N-HVI
500-HVI
BS-HVI
100N-MVI
650N-MVI
BSMVI

SPECIALTY PRODUCTS MANUFACTURED AT NRL

Benzol
Toluol
Xylol
Wax
Slack Wax
Rubber Process Oil
Establishment : 1963

Basic Objectives : Petroleum Refining To Produce Petroleum Products & Petrochemicals

Total Capital Investment : Rs 2,862 Million

Crude Oil Processing: 2.9 Million Tons Per Year

Capacity: 2.71 Million Tons Per Year

Bankers: ABN-AMRO, ABL, Bank Alfalah, Citibank N.A., Deutsche Bank A.G, HBL, MCB, NBP, SCB, UBL

Shareholders: ARL, APL, NIT, IDB, POL, General Public & Others