The new 100,000 bpd Melaka refinery known as PSR-2, is operated by the Malaysian Refining Corporation Sdn Bhd

MRC!, a "oint #ent$re of Cono%o &0'!, Petronas of Malaysia &('! and Statoil 1('!) The refinery $ses Cono%o*s proprietary delayed %oking te%hnology to +a,i+ise prod$%tion of diesel f$el, whi%h is in high de+and in the region) -n .$ly 2001 Petronas a%/$ired an additional 0' e/$ity in MRC, bringing total shares of MRC to (1') PSR-2 PROCESS UNITS -n addition to the hydro%ra%ker, the pro"e%t also re/$ired the %onstr$%tion of +a"or PSR-2 pro%ess $nits) These in%l$de a 22,000 barrels3day #a%$$+ distillation $nit, a 22,000 barrels3day %atalyti% refor+er, a 1(,000 barrels3day des$lf$ri4ation $nit and a 21,000 barrels3day delayed %oker, whi%h will $tilise Cono%o*s proprietary petrole$+ %oking te%hnology) The engineering, pro%$re+ent, %onstr$%tion and %o++issioning 5PCC! %ontra%t for PSR-2 was awarded to a fo$r-%o+pany %onsorti$+ %o+posed of Chiyoda Corporation, MMC 5ngineering Ser#i%es, Chiyoda Malaysia and Mits$i 6 Co) 7T8 of .apan) Cono%o $sed its share of refined prod$%ts fro+ PSR-2, in%l$ding 7P9, a f$ll range of gasolines, kerosene, "et-:1 and diesel, to s$pply the %o+pany*s e,isting and planned +arketing operations in the region) The PSR-2 refinery will be b$ilt ad"a%ent to the Petronasowned PSR-1 refinery and the two refineries will share so+e %o++on fa%ilities) MARKET RATIONALE The refinery is the an%hor for Cono%o*s %ontin$ed downstrea+ growth in :sia Pa%ifi% and will ens$re a s$pply of /$ality prod$%ts to f$el the growth of Si+e Cono%o 5nergy in Malaysia and the %ontin$ed e,pansion of Cono%o*s +arketing operations in Thailand) Cono%o will $se its share of refined prod$%ts prod$%ed by PSR-2 to s$pport the %o+pany*s entry into Malaysia*s +otor f$els retail +arket and the %ontin$ed e,pansion of Cono%o*s .5Tbranded retail +arketing operations in Thailand) PSR-2 is the first refinery in So$theast :sia to $se Cono%o*s proprietary delayed %oking te%hnology) This will allow PSR-2 to e%ono+i%ally $pgrade lower-#al$ed, botto+-of-thebarrel feedsto%ks, to higher-#al$ed li/$id prod$%ts)
MELAKA REFINERY PROJECT TIMESCALE

;n <o#e+ber =th 1==&, following an 10 +onth feasibility st$dy, Cono%o and Petronas, agreed to %onstr$%t and operate the Melaka refinery) -n .an$ary 1=== %o+pletion of the %onstr$%tion of a 20,(00 barrels3day hydro%ra%ker, +eant that the %r$de oil refinery in Melaka, Malaysia was f$lly operational) CONTRACTORS ;n .$ly 1,1==1, MRC appointed >oster ?heeler Malaysia! Sdn Bhd as Pro"e%t Manage+ent Cons$ltant PMC! for the PSR-2 Stage 1 Pro"e%t) ;f the pro%ess $nits %o+prising the

%o+ple,, >oster ?heeler pro#ided the design for %r$de distillation, #a%$$+ distillation, sat$rated gas re%o#ery, a+ine regeneration 2 trains!, so$r water treat+ent 2 trains!, hydrogen %olle%tion and distrib$tion syste+, delayed %oker light-ends, and a >oster ?heeler li%ensed hydrogen prod$%tion $nit) >oster ?heeler *s s%ope of work, at the ti+e of award, in%l$ded@

8e#eloping and finalising the pro%ess %onfig$ration and $nit design basis :ssisting MRC with the sele%tion of pro%ess li%ensors 8e#eloping the front-end pa%kage in s$ffi%ient detail to enable award of a l$+p-s$+ t$rnkey engineering, pro%$re+ent, %onstr$%tion and %o++issioning 5PCC! %ontra%t on a %o+petiti#e basis Preparing an esti+ate, to pl$s or +in$s 1(' a%%$ra%y

;ptions that were later e,er%ised by MRC at agreed take-$p dates were@

Pre/$alifying bidders for l$+p-s$+ t$rnkey 5PCC %ontra%t 5ngineering of site preparation work e,e%$ted #ia a Malaysian %i#il engineering %ons$ltant $nder %ontra%t to >oster ?heeler! Te%hni%al and %o++er%ial e#al$ation of 5PCC bidder s$b+issions S$per#ision of the 5PCC %ontra%tor