Contribution to the work of the High Level Group for the European Commission by Total Raffinaderij Antwerpen, February 29th 2008

Synergies between Refining and Petrochemicals : Today and Tomorrow

2

Synergies between Refining and Petrochemicals

Refining / Petrochemicals integration :§ Background

§Within the Total Group

§ The Antwerp example

New developments :§Market trends

§ Longer term strategy and developments

1

Refining / Petrochemicals Integration

4

Refining / Petrochemicals process links

Refinery

Condensate splitter

Distillates

Naphtha

Naphtha

Butane

Propylene

Butenes

Hydrogen

Steamcracker

Butadiene

Gasolines

Benzene fraction

C7 / C8 Aromatics Aromatics

Propylene

Ethylene

Benzene

Toluene

P-Xylene

O-Xylene

Fuel Gas, PFO

Py Gas

5

Refining - Petrochemicals integration within TOTAL

TOTAL Refinery

TOTAL Petrochemicals Steamcracker

100 % third party Steamcracker

Port Arthur Antwerp

Lavera

Carling

Leuna

Vlissingen

Dunkirk

Gonfreville

Feyzin

Grandpuits

Donges

6

Benefits of integration

Single site integration of refining and petrochemical capacity :§ Availability of product§Reduction in transport (costs and risks)§Working capital savings

§ Synergies from joint infrastructures and logistics§Reduction in variable costs (steam, utilities)§Size effect on support services: maintenance, HR, HSEQ management, F&A, etc.

Strategic advantage :§ Less recourse to trading market

§ Independence and supply security

§ Long-term exchanges

§ Common business and investment strategy

§ Commingled footprint of activities

1

7

Consolidation of production for both sectors

2

Chemicals percentage in Refining sales

Naphtha percentage from TOTAL refineries used as feedstock in TPA steamcrackers

1997

2001

3.1%

6.4 %

36 %

60 %

ð ð

ð

7.2 % 67 %

ð

2003

8

24%39%

74%90%

0%10%20%30%40%50%60%70%80%90%

100%

BP Shell Total Exxon Mobil*

20

A common approach

2019

Level of integration between Refining and Petrochemicals in Europe

Source: Morgan Stanley (% of ethylene capacity integrated with refinery owned by same company)* Exxon Mobil including ethane and LPG steamcracker from Mosmorran

The Antwerp example

10

Total in Antwerp

11

Crude + condensate capacity 18 Mt/y

Staff (incl. NC3) 1,026§Shift Personnel 48 %§Contractors (outside Projects & TA) 450 m/d

EDCI (Solomon) Refinery 3.84 Mb/d

NC3 Naphtha throughput (in 2006) 1.4 Mt/y

Surface area 220 ha

Storage tanks & capacity 162 - 2.1 Mm3

31 process units - 1 central control room

Power station + cogeneration

Total Raffinaderij Antwerpen (TRA) – Key figures

12

Total Raffinaderij Antwerpen – Production schemeSeparation /Distillation

Crude O

il

Reaction /Conversion Purification Blending

Atmospheric DistillationCDU3 & 4: 360.000 bpsd

LPG

Aromatic Extraction

Naphtha Cracker

Catalytic Reforming60.000 bpsd

Ethylene

Propylene

Benzene

Xylene

Alkylation16.500 bpsd

Visbreaker

Kero Merox27.000 bpsd

Jet Fuel

Gas Oil

Gasoline

Fuel Oil

Bitumen

RAPL

Crude O

il

Atmospheric ResidueDesulphurisation

ARDS: 96.000 bpsd

Clean Gasoline57.000 bpsdCatalytic Cracking

FCCU1 & 2: 100.000 bspd

VacuumDistillation

Catalytic DesulphurisationHDS1 - 4: 120.000 bpsd

ETBE unit(Ethyl Tertiary Butyl Ether)

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Total Petrochemicals – Antwerp Site : FAO

NC1: 1967 Cracker – Capacity 240 kt/yHigh Butane Flexibility

NC2: 1968 Cracker – 2003 Revamp – Capacity 470 kt/y

NC3: 1991 Cracker – 1998 Revamp – Capacity 600 kt/y –Operated by TRA

Extra terminalling capacity: 700 kt Olefins in 2006

Joint venture with ExxonMobil (35 %)

Number of personnel: 640 own personnel + 350 contractors

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Antwerp logistics integration

Frankfurt

FRANCE

North Sea

LUXEMBURG

THE NETHERLANDS

GERMANYRijin

Rotterdam

EthylenePropyleneOil productsCrude oilNATO

AntwerpenTRA, FAO, TPA

FeluyTPF, TPR

Brussels

GentOleochemicalsLubricants

Terneuzen(Dow)

Jemeppe(Solvay)

Beringen

Geleen(DSM)

Cambrai

Gelsenkirchen(Veba)

Marl

Ludwigshafen(BASF)

Liège

Moerdijk(Shell)

Keulen(Erdoelchemie)

TRN

Duinkerken

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Antwerp: Refinery and Petrochemicals Complex

Antwerp Petrochemicals Plant

butane, naphtha,

propylene from FCC, aromatics from reformer

hydrogen, steamcracker gasoline, PFO, C4 raffinate, hydrogen, fuel gas, utilities

Antwerp Refinery

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Total Antwerp Sites – Synergies

Synergies :

§ Common Shared Services: IT, Purchasing, Finance§ Close cooperation: HSE-Fire department, External Relations§Mutual technical support: Naphthacrackers – Waste water treatment§ NC3 Operations by Refinery

Opportunities – further integration

§ Energy optimisation§ Feed optimisation§Market adaptation

New developments

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2,6 2,9

8,3

4,7

2,9 3,0

7,1

4,7

0

2

4

6

8

W.EUR. N.AMER. ASIA+ME WORLD

1,8 1,5

7,9

4,0

1,9 1,6

7

4,3

0

2

4

6

8

W.EUR. N.AMER. ASIA+ME WORLD

Growth in Petrochemicals

Olefins : - Growing markets: 1.5 to 2 x GDP- Mixed evolution depending on geographic region

Propylene :- Growth higher than for ethylene- Increased recourse to refinery productions in Europe and USA

ETHYLENE PROPYLENE

% yagr 1997 - 2002% yagr 2003 - 2008

19

Growth in Petrochemicals

2,7

1,1

5,7

3,9

1,8 2

4,5

3,5

0

2

4

6

8

W.EUR. N.AMER. ASIA+ME WORLD

BENZENE 6,5

0,1

7,8

6,2

5,04,2

6,76,2

0

2

4

6

8

W.EUR. N.AMER. ASIA+ME WORLD

P XYLENE

% yagr 1997 - 2002% yagr 2003 - 2008

• Aromatics : mixed growth depending on the products

• Paraxylene : strong demand requiring recovery from refining flows

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European demand for petroleum products• Technological progress of motor engines• Tax advantage maintained for diesel• CO2 issue favourable to development of diesel motor engines

507090

110130150170190210

2000 2005 2010

MT

/ yea

r

Gasoline Diesel Heating oil Heavy Fuel

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Common strategy and objectives :

To fulfil the latest product and environmental specifications

To adapt productions to market trends

Refinery Petrochemical site

ðStringent capital expenditure policy

Minimising production costs: Utilities, logistics

Gasolines

Distillates

Olefins

Aromatics

22

Consolidating integration :

Gasoline

• Extraction of aromatics• Common desulphurisation

of gasolines from FCC and steamcracker

Olefins

• Alternative feedstocks• New catalysts and processes• FCC operation

Naphtha and feedstocks

• Cracking of FCC gasoline• Maximum production of

naphtha

Hydrogen

• Joint management of hydrogen productions

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Conclusion :

Refining / Petrochemicals Synergies :

§ Integration already significant

§ Competitive & strategic advantage

Ongoing strategy over next few years :

§ Implementing new operational synergies

§ Capital & research expenditure synergies to adapt to the markets

§ Consolidating integration (capex, exchanges, new projects)

1

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