Overview

The Company’s first project involves the relocation and re-erection of an existing German refinery, with an upgraded crude oil refining capacity of 100,000 bpd in Phase I, to Haldia in West Bengal. The Company plans to expand this capacity to 200,000 bpd in Phase II through the relocation of another refining unit from East Asia, and to then implement an additional 200,000 bpd of green-field capacity in Phase III.

Key Figures (Phase I)
Refining Capacity	100,000 bpd (4.885 mmtpa)
Crude refining design basis	50% Arab Heavy, 50% Arab Light
Nelson Complexity	11.8
Location	Haldia, West Bengal
COD	Q4, 2011
Core Capital Cost	US$ 1.1 billion

The project involves the relocation of Bayernoil’s (a joint venture between British Petroleum, OMV, AGIP and PdVSA) refinery from Ingolstadt in Germany to Haldia, with additional units being procured from an existing Petro Canada refinery in Edmonton, Canada and from Arc City, Kansas, USA. The resulting upgraded configuration will have a Nelson Complexity of 11.8, making the refinery amongst the most “complex” refineries in Asia today, with the ability to process a 50:50 light-heavy crude mix resulting in stronger Gross Refining Margins and overall profitability.

The estimated total capital cost for the development the project is ~US$1.1 billion. The targeted completion date for Phase I of the project is in fourth quarter of 2011.