11

May, 2006

Engineering Contractor’s Technology & Engineering

( Introduction of Chiyoda’s Performance )

22

What is Engineering Contractor

- Fact about Chiyoda Corporation

- Field of Services - Major World Wide NetworkMajor World Wide Network

33

Fact about Chiyoda Corporation1. Establishment January 20, 1948

2. Name of President Nobuo Seki

3. Number of Employees 5,622 (As of April 30, 2006, Global Basis)

4. Capital ￥ 12.9 Billion (equivalent to US $150 Mil. )

5. Contracts Awarded for FY2005 ￥ 804.2 Billion (Expected) (as of March,2006) (equivalent to US $ 9,407 Mil. )

6. Head Office 2-12-1 Tsurumi-chuo Tsurumi-kuYokohama, Japan

7. Koyasu Research Park 3-13 Moriya-cho Kanagawa-ku Yokohama, Japan

8. Associated Companies & 9 Subsidiary Companies in Japan and Subsidiaries 2 Engineering Satellite offices,

11 Subsidiaries, 10 Project offices and/or Liaison offices Overseas

44

Field of Services

OperationOperation

• Master Planning Approval • Budget

Approval • Specification Approval• Drawing, Calculation Approval

• Attending Progress Meeting• Inspection

• Attending Progress Meeting• Inspection

• Procedure Approval

• Basic Concept• Market Research• etc.

FINANCE ARRANGEMENT• Investor Research• Official Development Assistance• Export Credit Agency• Other Funds

Research & Developmentfor Applied Mechanics, Pollution Control Technology, etc.

• Basic, Operation, Logistics Concept• Market Research• Future Program• Feasibility Study etc.

Project Concept

• Site, Capacity Determination• Basic Data• Master Schedule• Manning Schedule • Budget Estimation• Other Client’s Requirement etc.

Master Planning

• Basic Design• Review of Equip.• Review of Material, Heat & Other Balance• Construction Cost Estimation• Budget Allocation etc.

Basic DesignBasic Design

• Basic Design Schedule• Specification for subcontracting• Quotation• Evaluation of Sub-Contractor• Detail Design etc.

Detail DesignDetail Design

• Procurement Detail Schedule• Vendor Selection • Purchase Order• Machine/Equip. Fabrication• Inspection etc.

ProcurementProcurement

• Construction Detail Schedule• Temporary Work• Notification to Authorities• Selection of Subcontractor• Subcontracting• Construction under Quality, Safety, Cost, Schedule Control• Inspection• Preparation for Commissioning etc.

ConstructionConstruction

• Power -In• Machine & Equip. Start-Up• Pipe Flushing etc.

Commis-Commis-sioningsioning

• Training of Owner’s Operator

• Operator Assignment

TrainingTraining

By Chiyoda

• Start Operation

Maintenance

Option (if required by Client)

By Client

55

Major World Wide NetworkMajor World Wide NetworkAs of May, 2006

THE NETHERLANDSTHE NETHERLANDS- Hague Office

CHINACHINA- Beijing Office- Shanghai Representative Office

THAILANDTHAILAND- Chiyoda (Thailand) Limited * Sriracha Office * Bangkok Head Office

IRANIRAN- Tehran Office

NIGERIANIGERIA- Chiyoda Nigeria Limited * Abuja Office * Lagos Office

SAUDI ARABIASAUDI ARABIA- Chiyoda Petrostar Ltd. * Al-Khobar Office * Jeddah Head Office

OMANOMAN- Muscat Office (CFW & Co. LLC)

UAEUAE- Abu Dhabi Office

QATARQATAR- Chiyoda Middle East Headquarters- CMS & A

INDONESIAINDONESIA- P.T. Chiyoda International, Indonesia- Jakarta Office

SINGAPORESINGAPORE- Chiyoda Singapore (Pte) Ltd.- Chiyoda Asia Pacific (Pte) Ltd.

MALAYSIAMALAYSIA- Chiyoda Malaysia Sdn. Bhd

MYANMARMYANMAR- Chiyoda & Public Works Co., Ltd.

U.S.AU.S.A- Chiyoda International Corporation

INDIAINDIA- L&T Chiyoda Ltd.

PHILIPPINESPHILIPPINES-Chiyoda Philippines Corporation

ITALYITALY- Milan Representative Office

JAPAN- Chiyoda Corporation * Yokohama Head Office * Koyasu Research & Development Center

RUSSIARUSSIA- Moscow Office- Sakhalin Office

66

Records and Experience

- EPC Achievement in Japan

- EPC Achievement in Saudi Arabia

- Technology Development

77

Grass Roots Refinery in JapanPlanned, Designed & Constructed By Chiyoda

Taiyo Oil70,000BPSD

(1968)

Fuji Oil140,000BPSD

(1970)

Shell Oil 100,000BPSD

(1969)

Seibu Oil150,000BPSD(1970)

Nansei Sekiyu78,000BPSD(1970)

Okinawa Sekiyu100,000BPSD(1972)

Kashima Oil180,000BPSD(1971)

Showa Yokkaichi105,000BPSD(1965)

ShinNippon Oil100,000BPSD(1968)

Tonen General60,000BPSD

(1970)

ShinNippon Oil80,000BPSD

(1966)

Toho Oil40,000BPSD

(1964)

88

Experiences in High Pressure HydroprocessingExperiences in High Pressure Hydroprocessing

0

500,000

1,000,000

1,500,000

2,000,000

2,500,0001963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

DESIGN

CAPAC

ITY, B

PSD

WORLDWIDECHIYODA

24%

99

Resid HDSResid HDS

35,000 BPSD CHEVRON OCR/RDS UNIT　　　　　　　　　　　　　　　 Idemitsu Hokkaido

1010

Grass Roots Refinery Experiencein Saudi Arabia

Riyadh Refinery15,000 BPSD(1974)100,000 BPSD(1981)

Jeddah Refinery12,000 BPSD(1967)33,000 BPSD(1974)

Yanbu Refinery170,000 BPSD(1983)

Petromin-MobilYanbu Refinery

263,000 BPSD(1984)

Al-Jubail (SASREF)272,000 BPSD(1985)

Ras Tanura Refinery250,000 BPSD(1986)

1111

Chiyoda‘s Grass Root Refinery Experience Chiyoda‘s Grass Root Refinery Experience in the World in the World

Lube Oil Blending Plant250,000 　 BBL/Y (Ningbo / China)

No.8 Petroleum Refinery232,000 BPSD (Bandar Abbas / Iran)

• Gas Oil HDS6,000 　 T/D LGO4,000 　 T/D HGO

(Pulau-Ular / Singapore)• Petroleum Refinery 80,000 　 BPSD (Pulau-Ayer / Singapore)

North Refinery project150,000 BPSD (Baiji /Iraq)

Lube Oil Plant100,000 　 T/Y (Alexandria /Egypt)

Melaka Refinery project Stage-1100,000 BPSD (Melaka / Malaysia)Petroleum Refinery

100,000 BPSD (Kaduna / Nigeria)

Petroleum Refinery55,000 BPSD (Esmeraldas /Ecuador)

1212

CHIYODA‘S RECENT ACCOMPLISHMENTS IN SAUDI ARABIA

1. Jubail United Petrochemical Company (JUPC)

JUPC Additional Furnace Work Al-Jubail E.P.C. (2006)

2. Saudi International Petrochemical Company

SIPC Methanol Complex Project Al-Jubail E.P.C.MS. 2005

3. Jubail United Petrochemical Company (United)

United Olefins Complex Project - Ethylene Plant

Al-Jubail E.P.C*.M. 2004

4. Eastern Petrochemical Company (SHARQ)

450,000 T/Y Ethylene Glycol 2nd Expansion

Al-Jubail B.E.P.C*. 2000

5. Saudi Chevron Petrochemicals Company Ltd.

480,000 T/Y Benzene Plant 220,000 T/Y Cyclohaxane Plant

Al-Jubail E.P.C*. 1999

6. Arabian Industrial Fibers Company (Ibn Rushd)

Aromatics Project 375,000 T/Y Paraxylene 349,000 T/Y Benzene

Yanbu E.P.C*.M. 1998

7. Petromin Lubricating Oil Refining Company (LUBEREF)

2,000,000 B/Y Lube Basestock Refinery

Yanbu E.P.C*. 1997

1313

・ Acetic Acid (Acetica Process) ★ ・ CO2 Reforming Catalyst and Process ★ ・ Ultra Deep Desulfuri-　　　 zation Catalyst (Titania) ★ ・ Fuel Gas Desulfuri- zation (CASOX) ★

・ Computer Application Technology ★ - Advanced Control - Artificial Intelligence - Computer Integrated Manufacturing ・ Bis phenol A ★

・ Coal Liquefaction ▲ ・ Share Oil ▲ ・ Biomass ▲ ・ Fuel Cell ▲ ・ Flue Gas Desulfurization (CT-101 & 121) ★ ・ Waste Water Treatment ★ ・ Soil Improvement ★ ・ Asphalthenic Bottom Cracking (ABC) ★

Technology Development

1970

1980

EnergyCrisis

・ Vinyl Chloride ● ・ Dealkylation to Benzene (MHC process) ● ・ Xylene Separation ● ・ Thermal Cracking (Eureka process) ● ・ Tetrahydrofran ● ・ Isoprene ●

1960

1948Ｅｓｔａｂｌｉｓｈｍｅｎｔ　ｏｆ　

Ｃｈｉｙｏｄａ　Ｃｏｒｐｏｒａｔｉｏｎ

1950

1990

High Technology

PublicNuisance

Incubation and development of ideas have made jointly with operation companies

and Chiyoda.

Chiyoda 　 Research Park

●: Joint development with operation company /★: Own Developed Technology by Chiyoda / ▲:Sponsored by the Government

Economic GrowthIn Japan

2000High Technology

Preservation of Global Environment

CT-121

1414

Activities for the Future

- Major on-going Projects

- Reliability NO.1 as EPC Contractor

- Looking for Market Demands

1515

Major Overseas Ongoing Projects As of May, 2006

CHINACHINA* Acetic Acid Plant

(CMC/Guizhou Crystal Organic Chemical Co., Ltd.)

SAKHALINSAKHALIN * Sakhalin LNG

Project 2 Trains (Sakhalin Energy)

IRANIRAN* Ammonia/Urea Plant II (PIDMCO)

SAUDI ARABIASAUDI ARABIA* Ethylene Plant Debottlenecking (JUPC)

QATARQATAR* Qatargas 3&4 Train 6/7 (Qatargas 3&4)* RasGas (3) Train 6&7 (RasGas (3))* Qatargas II Train 4&5 (Qatargas II)* RasGas II Train-5 (RasGas II)

1616

Reliability NO.1 as EPC Contractor

- Continuing Improvements by Lessons-Learnt- Advanced Engineering IT System- Critical Design Review by Sophisticated Technical

Analysis- Seamless Activities for Smooth Plant S/U and

Operation- Continued R&D Activities and Licensing-In

1717

i-PLANT21TM

PROCUREMENT CONSTRUCTION

ENGINEERING

i-FIELDConstruction Management

i-3DIntegrated 3D Plant Design

(PDS 3D Model DB)

i-ENGEngineering Database

i-FRONTFront End Engineering

i-PMSProject Management

i-DMSProject Document

Management

i-MAT Material Management

1818

Integrated 3D Plant Design

P&ID

CUSTOMER & INTERNAL DESIGN REVIEW

PDS 3D MODELPLOT PLAN

PROCESS REQUIREMENT

OPERABILITY

CONSTRUCTABILITY

ELECTRICAL DESIGN

FURNACE DESIGN

PROCESS DESIGN

STRUCTUREDESIGN

EQUIPMENTDESIGN

INSTRUMENT DESIGN

QUALITY CONTROL

CIVIL DESIGN

PIPING DESIGN

FIRE FIGHTING

Milestone ReviewItemized ReviewDaily Review

Clients Requirements

Design Requirements

1919

i-MAT : Ｏｖｅｒｖｉｅｗ of MARIAN

E

C

P

MARIAN

PROCUREMENT

REQUISITION

BOM/MTO

STANDARD

EXPEDITE

TRAFFIC

SITE

DATA BASEMATERIAL CODE

PIPING SPEC

BOM

Eng. Database

EQUIPMENT NO.

EDMS

RFQ/POQUOTATIONMANUF. SCH.

INSPECTION DATA

WH CONTROL

SHIPPING DATA

3D-PDS

CONSTRUCTION SITE

FOWARDER

SUPPLIER

Account System

PROPS

REQ/SPEC

PO

2020

Sophisticated Technical Analysis- Advanced Solution Technologies ・ CFD Analysis (eq: Furnace Fire Box Analysis ) ・ FEM Analysis (eq: Stress Analysis ) ・ Acoustic Design Analysis

- SHE Risk Assessment- Corrosion Monitoring & Material Evaluation - Dynamic Simulation- O&M Analysis

2121

Scale-up Engineering

0

1

2

3

4

5

6

7

8

1960 1970 1980 1990 2000 2010

LNG Plant Start-up Year

Trai

n S

ize,

MTA

LNG Plant Capacity Trend

2222

Continued R&D Activities

- Flue Gas Desulfurization (FGD) : CT-121,CASOX

- Catalyst Development :

CO2 Reforming, Acetica, Diesel HDS

- Resid Conversion : Eureka

2323

FGD : CT121TM

M/E Stack

Flue Gas

Limestone

Water

Oxidation Air

Gypsum

Gypsum Separator

Treated GasAbsorber (JBR)

2424

Reactor Section

Purification

AceticAcid Storage

FlueGasFuel

AirCO

MakeupCH3I

Methanol

IodideRemoval

Incinerator

Reactor

Feed Preparation

ACETICATM

2525

EUREKATM

PETROLEUM PITCH

PREHEATER

SUPERHEATER

VACUUMRESIDUE

REACTOR FRACTIONATORCRACKING HEATER

CRACKED HEAVY OIL

WASTE WATER

CRACKED LIGHT OIL

GAS

PITCH FLAKERSTEAM

2626

- Shift for Natural Gas :LNG & Gas Chemicals

- Continued Importance of Petroleum

- Integration of Refinery with Petrochemicals

- Stringent Environmental Regulation

- Plant Life-cycle Judgment

:Heavier Crude Utilization

Looking for Market Demands

2727

Prediction of IEA:primary energy demand in world

year

0

1,000

2,000

3,000

4,000

5,000

6,000

1970 1980 1990 2000 2010 2020 2030

Mto

e/yr

Petroleum

CoalNatural gas

Other Renewable Energy

Nuclear Power

Water Power

2828

Transition of Light/Heavy Crude Price Differential

Light/Heavy Crude Price Differential

Arabian Light Arabian Heavy

0

10

20

30

40

50

60

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Cru

de O

il Pr

ice

USD

/Bbl

0

2

4

6

8

10

12

14

Ligh

t/Hea

vy C

rude

Pric

e D

iffer

entia

l U

SD/B

bl

year

Source: Oil Monthly Intelligence

2929

Thank you