Modular Crude Oil Minirefineries

KUAI Energy Systems

Our Group offers a wide experience in the international management, engineering, financing, sales, production, project managementand installation of Energy Systems in the Oil and Gas and in the Power Generation fields. We are proud to present our ModularRefining Systems in conjunction with CHEMEX LLC, a leading manufacturer of Petroleum Processing Equipment since 1974. Anotheradded value is our association with Prime Energy & Chemical and our ability to provide Power Generation Systems to integrate acomplete Energy System from the oil well to the electrical power grid.

•Modular Oil Refineries from 500 to 50,000 Barrels per Day for Crude Oil to produce Naphtha, Gasoline, Kerosene, Diesel 2, Heavy FuelOil 6 and Asphalt .

•No need for process water, minimizing environmental emissions. Can be sited as close as possible to oil fields.

•Larger refining capacities can be provided by paralleling Modular Refineries with maximum flexibility and reliability.

•We can provide Minirefineries and Electric Power Generating Plants using their subproducts as fuels in a Turn‐Key basis, including theengineering, design, permitting, manufacturing, shipping, erection, installation, commissioning, start‐up, training, operation andmaintenance.

•We can offer a variety of financing options depending on the needs of our Clients. 2

Existing CHEMEX Oil Refinery Projects Worldwide

Project ExperienceProject ExperienceSince 1974, Chemex has constructed or modified many fi i ld id Th lirefineries worldwide. The client 

list includes the following:

Bechtel Torch Energy Texaco

U.S. Department of Energy Redd Engineering Santa Fe EnergyTexaco 

Veneco Energy Chevron GPC Sudan Union Oil Metro Oil & Refining 

Santa Fe Energy Fujairah Marine Service Berry Petroleum Natural Resources Group Huntway Refining 

Shell Oil McPherson Oil Mobil Oil Baker Hughes Occidental Flying ‘J’ Refining

Seadrift Coke Beacon Refining Whittier Oil Pertamina Refining Niger Delta Petrole m CorpFlying  J  Refining 

Aera Energy Goodway Refining Corn Products Hamilton Engineering Seneca Oil

Niger Delta Petroleum Corp. DESOPADEC Tri Wahana Universal Golden Gate High Sierra Energy 

Georgia American Oil Concorp International 

Pertro Source Partners

4

Traditional Oil Refineries: The OldFashionedWay

• The traditional Oil Refineries process Crude Oil fractionaldistillation to produce a variety of subproducts, such asLPG, Gasoline, Kerosene, Diesel Oil, Heavy Fuel Oil,Asphalt, etc. using their varying boiling points. Thesesubproducts which can be used directly as fuels,enhance the economic value of the crude oil.T diti l Oil R fi i t i ll f• Traditional Oil Refineries typically process from onehundred thousand to several hundred thousand barrelsof crude oil per day. This means that a huge amount ofcrude oil has to be transported from the oil wells to therefineries with great transportation costs underhazardous conditions along the way.

• The large scale and complexity of a traditional OilThe large scale and complexity of a traditional OilRefinery and the associated hazards make it very hard tobe able to site and build a brand new large refinerybecause of its relatively high cost and environmentalimpact.

• They use a relatively high amount of process and coolingwater which turns into wastewater that has to be

d b f d h dd htreated before discharging to waterways, adding to thecost. There is an increasing amount of cost involved inattenuating air emissions and solid waste to comply withever tighter regulations. As a result, no major refineryhas been built in the USA since Marathon’s Garyville,Louisiana, refinery was installed in 1976 and manyothers have been closed.others have been closed.

5

Traditional Oil Refineries: The Old Fashioned Way• Large scale and complexity.• High capital & operation cost.• Hazards ‐ hard to site.• Environmental Impact.• High amount of process and

cooling water turning intowastewater to be treatedwastewater to be treated.

• Large volume of air emissions andsolid waste to comply with evertighter regulations.tighter regulations.

• No major refinery built in the USAsince Marathon’s Garyville, LArefinery was installed in 1976.

• Many have been closed.

6

Modular Oil Refineries: The Modern Way:• New modular pre‐fabricated design meeting ASME,New modular pre fabricated design meeting ASME,

ANSI, API, FM USA‐EPA and World Bank standards.

• Tailored to each client’s application, can be sitednext to oil wells minimizing transportation cost.e o o e s g a spo a o cos

• Modular Refineries are air cooled. Do not needcooling water.

• Gases produced are used to fuel the distillationGases produced are used to fuel the distillationprocess instead of flared, minimizing theenvironmental effect.

• Reduce installed cost time required for permittingReduce installed cost, time required for permitting,shipping, erection, installation and commissioning.

• Modular Refineries are assembled and tested at thefactory taken apart and shipped No field welding

7

factory, taken apart and shipped. No field weldingrequired, everything is flanged.

Modular Oil Refineries: The Modern Way:• Modular Refineries take advantage of state‐of‐the‐artModular Refineries take advantage of state of the art

process techniques to automatically control the amountof each desired subproduct according to the needs of theclient.

• Modular Refineries can be sited to optimize theproduction of fuels that can be used in diesel engines andgas turbines for distributed electrical power generation.

• Modular Refineries require a minimum amount ofoperating personnel since their automatic operation canbe monitored and controlled remotely through a SCADAsystem and the operators digitally alerted of any alarms.

• Modular Refineries can be installed in a short timewithout welding to coincide with the start of exploitationof oil wells.

• They can be operational within 4 hours after a cold start.8

Crude Oil is composed of a widely varied Mix ofCrude Oil is composed of a widely varied Mix ofCrude Oil is composed of a widely varied Mix of Crude Oil is composed of a widely varied Mix of HydrocarbonsHydrocarbons

Typical Assay of Leona 24 Crude OilTypical Assay of Leona 24 Crude OilTypical Assay of Leona 24 Crude OilTypical Assay of Leona 24 Crude Oil

9

Modular Refinery Capacities

• Our modular Minirefineries have the following refining capacities of crude oil:• Our modular Minirefineries have the following refining capacities of crude oil:500, 625, 1000, 2000, 3000, 6000, 10000, 120000, 15000 , 20000 and 30000 and 35,000 Barrels per Day .

10

Modular Oil Refinery Yields

• Our Modular Oil Refineries offer subproduct yields depending on itsconfiguration for the desired subproducts based on the specifications of theco gu at o o t e des ed subp oducts based o t e spec cat o s o t eCrude Oil being used.

• For example, the following chart shows the subproduct yield for a 20,000 Barrelsper Day Modular Refinery with a ADU/VDU/CRU/HDS processing heavy Crudefrom Ecuador to maximize the production of high octane Gasoline and low Sulfurfrom Ecuador to maximize the production of high octane Gasoline and low SulfurDiesel 2 (less than 400 parts per million). In this case, Off Gas and LPG are used inthe distillation process, Kerosene is used for reinjection back into the oil well tohelp the flow of the heavy crude oil, Heavy Fuel Oil is used for electrical powergeneration and asphalt for roadway constructiongeneration and asphalt for roadway construction.

2%2%

18%Off Gas

18%

7%

29% LPG

Gasoline (95 RON)

LS Kerosene

LS Diesel

11

21%20%

HFO

Asphalt

We can provide the following Modular Oil Refining ProcessUnits:

Modular Refining 

• ATMOSPHERIC DISTILLATION UNIT (ADU) ‐ separates thedifferent fractions of the crude oil according to boilingrange into naphtha, kerosene, diesel, and residuumproducts. it operates at less than 15 psig.

• VACUUM DISTILLATION UNIT (VDU) ‐ performs the same( ) pfunction as an ADU, but operates at a pressure of lessthan zero psig. it produces products like marine fuel oil(MDO) and asphalt from the ADU residuum (heavy fueloil).

• CATALYTIC REFORMER UNIT (CRU) ‐ produces high octane• CATALYTIC REFORMER UNIT (CRU) produces high octanegasoline from naphtha.

• HYDRODESULFURIZATION UNIT (HDS) ‐ removes sulfurand other impurities from naphtha and distillate fuels.

• HYDROCRACKER UNIT (HCU) ‐ produces naphtha,kerosene, and diesel from heavy feedstocks like VDUdistillates.

• DESALTER ‐ removes salt from crude oil prior todistillation to prevent fouling and corrosion.

• SPLITTER/STABILIZER ‐ separates a feedstock into twoSPLITTER/STABILIZER separates a feedstock into twoproducts.

• FLARE ‐ combusts any excess vapor released by processequipment. 1

2

We can supply the following Modular Gas Processing Components:Modular Gas Processing 

• FIELD COMPRESSION SYSTEM ‐ raises the gas pressure fromthe well heads to the pressure required for gas transmission.

• AMINE TREATER ‐ removes hydrogen sulfde (H2S) and carbondioxide (CO2) from the gas stream. Amine gas treating, alsoknown as gas sweetening and acid gas removal, refers to agroup of processes that use aqueous solutions of various

iamines.• GLYCOL DEHYDRATOR removes enough water to prevent

freezing during transmission or processing. Design pressuresare available from 230 psig to 2,160 psig.

• MOLE SIEVE DEHYDRATOR removes all of the water from agas stream. this unit is used when the gas is processed tovery low temperatures (less than 40 F)very low temperatures (less than ‐40 F).

• NATURAL GAS PROCESSING PLANT removes natural gasliquids (ngls) from a gas stream. the gas is cooled until thedesired ngls condense. the raw natural gas must be purifiedto meet the quality standards specified by the major pipelinetransmission and distribution companies. these qualitystandards vary by pipeline and are usually a function of thesta da ds a y by p pe e a d a e usua y a u ct o o t epipeline system design and the markets served.

• NGL FRACTIONATOR recovers ngls by distillation indemethanizing, deethanizing, depropanizing, anddebutanizing fractionation columns. Each fractionationcolumn removes a component from the ngl stream.

• FLARE combusts any excess vapor released by processequipment.

• CLAUS UNIT recovers elemental sulfur from H2S

13

Chemex PMA system advantages are as follows:

Proprietary Design ‐ Chemex's formulation technologyand mechanical design provide the highest flexibility andffi i il bl b i i i i th tit f

POLYMER MODIFIED ASPHALT

efficiency available by minimizing the quantity ofpolymer and/or additives required to meet specificationrequirements.

• Flexibility – Chemex's equipment configuration allowsfor a PMA plant capable of blending up to 15% ofpolymer concentrates into a wide variety of asphalt basestocks, with operating viscosities of up to 8,000

Polymer‐modified asphalt (PMA) is produced throughthe addition of a polymer (and usually several otherchemical components in smaller amounts) to liquid hotbase asphalt. The purpose of producing PMA is toprovide asphalt that meets the new Superpaverequirements, with added strength and flexibility at awider temperature range than non‐modified asphalt

stocks, with operating viscosities of up to 8,000centistokes.

• Chemex equipment can be designed to process from250 to 1400 tons per day of PMA, while heating theasphalt to the required mix temperature.

• Automated Process ‐ The Chemex design controls thepolymer addition rate automatically, maintaining thewider temperature range than non‐modified asphalt.

Chemex has extensive expertise in PMA blending for awide variety of applications. Our design flexibility willreflect your company's needs regarding key designparameters such as capacity, level of automation,equipment preferences, and material handling to ensure

p y y, gdesired polymer concentration based on the asphaltflow rate into the mixing tank. Chemex's automatedprocess provides improved metering and regulationversus manual versions.

• Thorough Polymer Dispersion ‐ Chemex's processincorporates a combination of high temperature, high‐shear mixing and automation that provide a thoroughlycomplete customer satisfaction.

Our process utilizes proprietary technology and the mostrecent developments in formulation and equipmentconfiguration. Our design can be highly automated toallow blending of a wide variety of polymers into a widevariety of asphalt base stocks Our process has the

shear mixing, and automation that provide a thoroughlydispersed polymer.

• Avoiding Phase Separation ‐ The formulations used byChemex impede phase separation. Both mechanical andchemical measures are used to provide a stable,homogeneous, blended PMA product. Chemex'sproprietary design allows the polymer to "network"variety of asphalt base stocks. Our process has the

flexibility to minimize modifier and operating costs whilemaximizing product value.

proprietary design allows the polymer to networkwithin the asphalt, creating a homogeneous mixture.

14

3‐D Design and RenderingWe can offer an Engineering and Design Package for theMinirefineries, including On‐Site advisory services forequipment installation, commissioning, start‐up and test run.

SCHEDULE A ‐ PROCESS DESIGN PACKAGE

• process simulation;

SCHEDULE B ‐ CONSTRUCTION DESIGN PACKAGE 

• structural steel designd i f kid• process fow diagram (PFD);

• piping and instrumentationdiagrams (P&IDs);

• electrical single line diagram;

drawings for skids;

• foundation design skids;2.

• equipment general arrangement drawings;

i t d i• heat exchanger data sheets;

• air cooler data sheets;

• pump data sheets;

• ASMe Section VIII pressure

• equipment drawings;

• piping drawings;

• electrical location diagram;

• instrumentation locationdivessel data sheets;

• electrical and instrumentationequipment lists; and

it it l

diagram;

• electrical wiring diagrams; and

• instrumentation wiringdiagrams• process unit site plan. diagrams.

15

FabricationFabrication• Our Modular Refineries are designed with skid‐mounted

modular equipment for placement on concrete slabmodular equipment for placement on concrete slabfoundations. With conventional foundation‐mountedequipment, each piece of equipment is placed on its individualfoundation and welders pipe the equipment together. This“stick‐built” method requires longer construction time thanChemex’s modular fabricationChemex s modular fabrication.

• Chemex manufactures brand new or refurbished process unitsin its facilities in Bakersfeld, California. We offer clients theoption of using refurbished process equipment with awarranty equal to new equipment since using refurbishedprocess equipment can result in substantial cost savings andprocess equipment can result in substantial cost savings andaccelerated completion schedules when compared with newequipment.

• Our equipment is designed to be transported by land or sea toany location. The equipment is fabricated in the same

fi ti th it it l All i iconfiguration as the process unit site plan. All piping,instruments, and electrical connections are made among theskids and tested. after completion of testing, the equipment isdisassembled, packed, shrink‐wrapped, and shipped fromBakersfield or from the Port of Houston.

16

Installation• We can provide personnel to advise the buyer of the final assembly

and construction at each site. We can also provide local projectp p jmanagement. When the equipment arrives at the facility site, it isunloaded and set on the concrete slab foundations. Final skidplacement and elevations are checked against the drawings and skidsare shimmed and adjusted accordingly. After the equipment is inj g y q pplace, assembly of the interconnecting spools begins. The equipmentis literally bolted together with very little welding required. Theprocess equipment can usually be assembled and ready to start upwithin thirty days.

17

Commissioning and Start‐Up• We can provide advisors for thep

commissioning of the process equipment.All rotating equipment, instrumentation,and electrical equipment requirepreparation for operation Piping ispreparation for operation. Piping ispressure tested and/or vacuum tested.The equipment is purged and made readyfor startup by our advisory crew.

Test Run• The twenty‐four hour test run confirms

the design of the process equipment Ourthe design of the process equipment. Ouradvisors advise the operating personnelabout the proper operation of theequipment to achieve the intendedresults.

18

Sample Modular Refinery ProjectsSample Modular Refinery Projects

•• Indonesia,Indonesia, 66,,000000 BPDBPD

•• AtmosphericAtmospheric DistillationDistillationppUnitUnit

•• VacuumVacuum DistillationDistillation UnitUnitVacuumVacuum DistillationDistillation UnitUnit

•• ShippedShipped inin 1010 monthsmonthsafterafter contactcontact signingsigningafterafter contactcontact signingsigning

•• CommissionedCommissioned inin 20092009

19

Sample Modular Refinery ProjectsSample Modular Refinery Projectsp y jp y j

•• Nigeria 1 000Nigeria 1 000•• Nigeria, 1,000 Nigeria, 1,000 BPDBPD

•• Atmospheric Atmospheric Di till ti U itDi till ti U itDistillation UnitDistillation Unit

•• Shipped 9 Shipped 9 Months after Months after contract signingcontract signing

•• Installation in Installation in ProgressProgressProgressProgress

20

Pulsor™ 

• We are very proud of our association with SynChem Technologies,LLC, a Subsidiary of Prime Energy & Chemicals, LLC, andmanufacturer of the Pulsor™ technology which provides effective

Crude Oil Solvents PE&C

manufacturer of the Pulsor technology which provides effective,responsible solutions to Heavy Hydrocarbon problems in theglobal Oil and Gas industry. The Pulsor™ process utilizesproprietary hydrocarbon solvents that are 100% biodegradable,non‐toxic, non‐corrosive and refinery compatible. These solventsmaximize production rates through the removal of paraffin waxand asphaltenes deposits Their flash point is much higher thanand asphaltenes deposits. Their flash point is much higher thancompeting solvents, providing increased safety and lowertransportation cost. They are effective in a wide range of climaticconditions.

• The Pulsor™ Series powerful suite of solvents is designed to solvethe problems normally associated with organic deposition (waxd h lt ) f d h l ti iti t fi tiand asphaltenes) from down hole activities to refinery operations,

and to tackle the environmental and personnel safety challengesthat confront today’s oil producers and refinery operators.

• Pulsor™ has been successfully applied in multiple‐fieldapplications to enhance production levels and to break downheavy Hydrocarbon compounds in tubular pipes, flow lines and

Solvent Wax Asphaltenesother associated equipment. The products not only act manytimes faster than competitive solvents but with a greater retentionvalue. These solvents have proven to continue breaking downHydrocarbon deposits from upstream activities to pipelines andstorage tank facilities.

• The Pulsor™ solvents are not only biodegradable, but they are also

Solvent Wax Asphaltenes

PL‐35 √√√

PL‐50 √√ √

PL‐65 √ √√

PL 95 √√√y g , y

benign to the refining process, eliminating the need to remove theproducts prior to the refining process. The Pulsor™ Series Solventsare considered to be refinery friendly in every aspect.

21

PL‐95 √√√

P i E & Ch i l T h l iPrime Energy & Chemical ‐ Technologies

• Non‐toxic, Biodegradable Solvents to , gallow heavy Crudes Oils to be extracted from new or old capped wells.

22

Prime Energy & Chemical ‐ TechnologiesPrime Energy & Chemical ‐ Technologies

• Several actual older cappedolder capped wells reactivated by our Solvents.

23

Power Generation

• The main cost over the lifecycle of a Diesel engine orCombustion Turbine Generating Unit by far is the cost of fuel,g y ,which can be reduced by installing the generating equipment asclose as possible to a Minirefinery to reduce the transportationcost of the fuel.

24

Power Generation

• The Diesel distillates and the Heavy Fuel Oil produced in amodular Minirefinery can be used in electrical powergenerating plants in several configurations which we cangenerating plants in several configurations which we canprovide on a Turn‐Key installed basis.

25

Power Generation

• HFO medium speed Diesel engine generating units with HFOHFO medium speed Diesel engine generating units with HFOfiltering, heating and centrifuging treatment. These aretypically in the 1 to 15 Megawatt range in simple cycle to

d l t i it i ti t t lproduce electricity or in a cogeneration system to alsoproduce hot water, process steam or steam for flashdistillation desalination or absorption chilled water systems.

26

Power Generation

• Industrial Combustion Turbine Generating units rated 40 to 75gMW use Diesel 2 or HFO with a filtering, heating and centrifugingsystem. Can be supplied in simple or combined cycle with a HeatRecovery Steam Generator feeding Steam Turbine GeneratingRecovery Steam Generator feeding Steam Turbine Generatingunits to minimize the fuel consumption rate, or to a flashdistillation desalination process or absorption chilled watersystem.

27

Power Generation

Di l 2 b d i hi h d Di l• Diesel 2 can be used in high speed Dieselengine generating units from 500 KW to 3 MWf t db kifor standby or peaking use.

28

Power Generationi l 2 ( i l 1) b d i d i i bi• Diesel 2 or Kerosene (Diesel 1) can be used in Aeroderivative Turbine

Generating units from 3 to 100 MW or in Industrial Combustion TurbineGenerating units from 40 to 200 MW. These Industrial CombustionGenerating units can also be used in combined cycle to improve fuelefficiency.

29

Contact Information

For any further information contact:KUAI Energy Systems951 Brickell Avenue, Suite 3811Miami, Florida 33131, USATelephones: +1‐305‐219‐0489, +1‐305‐632‐

23192319E‐mail: rarrondo@kuaienergy.com

cvillegas@kuaienergy.comWebsite: www.kuaienergy.comgySkype: rpower2

30