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ACS and Oil Market

Mateo Rodriguez-Sanchez

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INDEX

Oil market

ACS in the sector

Experiencies and Capabilities

Minatitlan project

Growth

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PETROLEO PRICES

Since 2004, Oil prices increase Future scenario with upward trend

Fuente: World Energy Outlook 2006

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PRIMARY DEMAND OF ENERGY

Oil is and will be the primary source of energy

It implies an increasing necessity to invest in all value chain

Fuente: World Energy Outlook 2006

40% increase in 20 years

45% increase in 20 years

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GROWTH OF MARGINS

E&D costs (Exploration and Development) of fields: 7 to 10 $/bl conventional fields and of 10 - 15 $/bl present fields. .

Maintenance of oil prices in the range of 70 $/bl (minimum Value)

Consequences: • Higher margin in Oil to undertake new projects

• Development of now profitable fields

• Increase in EPC market

• Increasing margin for Contractors

70 – 80 $/bl

7 - 10 $/bl

20 – 30 $/bl

10 - 15 $/bl

E&D Cost E&D Cost

Past Present & Future

Op., Cost

Op., Cost

¡ Increasing

Margin !57usd/bl

9usd/bl

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ACCUMULATE INVERSMENT 2005-2030

High prices mean an outstanding increase of investments175,000 M$/year in Oil investmentsOnly in Spain: 4 refineries under development (investment above 5,000 M€)122500 M$

E&D Refining

26250M$ 26250 M$

Others

$470MM

$160MM

$175MM$25 M

M

Fuente: World Energy Outlook 2006

$175 000M (In 2005 USD)

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Índice

Oil market

ACS in the sector

Experiences and Capabilities

Minatitlan Project

Growth

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OIL CHAIN OF VALUE

Production

Refining Petrochemicals

Derivates

Alternativefuel

Transportation

Other sources

Gas

***

Oil

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PETROCHEMICAL: From the factories to consumers

PET/CHDM

BENZENE

PROPYLENEPHENOL/ACETONE

POLYCARBONATES

CUMENE

POLYPROPYLENE

REFINING

(Paraxileno)

PROPYLENE

BACK

PTA/DMT

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PIPELINES

Sea transportation of oil

CAPTAIN PROJECT, Texaco, Northern Sea

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UPSTREAM

CEPSA. RHOURDE EL KHROUF (ALGERIA)

Gas, Water and Oil Separation plant

REPSOL: BLOQUE 16 (ECUADOR)

Extension of Oil production

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REFINERIES

Spain New Refineries in Bilbao and CartagenaTurnkey Projects and Engineering services Works for the next 3 years

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PETROCHEIMICAL

TA/PTA PLANT INTERQUISA

Spain and Canada

Turnkey Contract of PTA plant (raw material for PET production)

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DERIVADOS

DAP Ma’aden( associate to projects of gas and ammonia)The biggest DAP plant of the world (3 MM tpd)Own Technology (INCRO)Located in Al Jubail –Arabia SaudiTurnkey of 550 MM $

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ALTERNATIVES FUELS

Investments will grow outstandingly in alternative liquid fuel sourcesACS is also present in these alternative fuels

• Agro Fuels• Gas to liquids

• Heavy OilsFuente: World Energy Outlook 2006

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PHENOL CUMENO

PHASE 1

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PHENOL CUMENO

PHASE 2

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UPSTREAM

EPC 78 , PEMEX, MEXICO

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PETROCHEMICAL

EASTMAN CHEMICAL San Roque (Cadiz) SPAINCHDM (PET additive)

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PETROCHEMICAL

Basell

Polypropylene PlantTarragona, Spain

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PETROCHEMICAL

Basf S.A

Propylene Storagetanks

Tarragona, Spain

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PETROCHEMICAL

RepsolBenzene Hydrogenation

La Coruña, Spain

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PETROQUIMICA

General ElectricCartagena Project,

Spain

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REFINERIES

CEPSA

San Roque Refinery

Cadiz

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PIPELINES

Land Transportation.

Metragaz Pipeline Magreb - Europe

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Index

Oil Market

ACS in the sector

Experiences and Capabilities

Minatitlan Project

Growth

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ACS CAPABILITIES

Engineering Construction Operation & Maintenace

Extent of services in all Value chain

More than 40 years of experienceIntegral contractor (Engineering, Procurement and Construction, Operation and Maintenance)Excellent positioning in the Turnkey MarketProject Integral management International experienceHome engineering capabilities of international prestigeSolid client portfolio - National and internationalFinancial strength to develop investments

Promotion

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CAPABILITIES FOR EXECUTION OF ALL ACTIVITIES

C

Engineering ProcurementProcess

Detailed Eng.Equipments

Materias HAZOP/Risks

licensesConstructibility

ContractContractPlant Plant

CompletionCompletionConstruction

Supervision

Construcción and Start up

LogisticsSpare parts

Inspection

ProcurementExpedition

BasicEngineering

Detailed Engeneering Construction

& Start-upProcurement

Health, Safety, EnvironmentalPlanning and Control Costs QA/QC

E P

PlantCompletion

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MARKET DEMAND

EPC Contractor (Turnkey)Bigger Contracts

• Typical contract rise from 100 MM$ to over 500 MM€

Restricted to general contractors with high technical capabilities and financial soundnessUnprecedented increase in demand

• Less competition • Ability to select contracts based on a suitable risk analysis

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CLIENTS

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INTERNATIONAL PRESENCE

• Europe: Spain, Portugal, Greece• Latin America: Brazil, Argentina, Peru, Costa Rica, Mexico, Ecuador, Colombia, Chile• North America: Canada, EEUU• Africa: Algeria, Tunisia, Morocco, Tanzania, Eritrea, Egypt• Middle East: Saudi Arabia• Asia: China, Vietnam

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Índice

Oil Market

ACS in the sector

Experiencies and Capabilities

Minatitlan Project

Growth

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DEISOPENTANIZER 46.000 tpy isopentane

BENZENE REDUCTION 470.000 MT/Y

MEROX UNIT 42.000 kg/hr.

GASOLINE ALKYLATION UNIT160.000 tpy

PLATFORMING RZ-100450,000 tpy

More than 400 refineries and Petrochemical Plants

PROYECTO MINA

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MINATITLAN PROJECT: BEFORE

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MINATITLAN – PEMEX - MEXICO

Engineering and Design• Above 1 Million of hours• Design in 3D (PDMS)• Engineering in Madrid, Mexico,

Venezuela

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MINATITLAN – PEMEX - MEXICO

Procurement• Procurement in Mexico, Europe, EEUU and Asia

• 400 Purchase orders

• 750 pieces of process equipment

• 50.000 tons transported via marine and air shipping

• 1600 inspections developed

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MINATITLAN – PEMEX - MEXICO

200,000 m3 of concrete and 8,000 ton of steel structure

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MINATITLAN – PEMEX - MEXICO

More than 11,000 Tn of equipments

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MINATITLAN PROJECT: NOW

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Index

Oil market

ACS in the sector

Experiences and Capabilities

Minatitlan Project

Growth

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ACS: A constant guarantee of growghing

• ACS is in all the oil chain (overlapping cycles)

• ACS provides all services from engineering to maintenance

• ACS is diversified geographically

• Diversification of clients

0

10

20

30

40

50

60

2003 2004 2005 2006 2007

RefinoUpstreamOffshoreTotal

%

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…………………….and profitable

High entry barriers • Technological (experience)• Client trust• Financial soundness for Major Projects

Sustainable Profitability

Privileged position through presence in all value chain• New contract schemes• New technologies and trends

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ACS and Oil Market

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