TOBOLSK-POLYMER propane dehydrogenation and polypropylene

production complex

1

LOCATION OF THE TOBOLSK-POLYMER COMPLEX

POLYPROPYLENE

PRODUCTION:

500 KTPA

THE COMPLEX IS ADVANTEGOUSLY LOCATED AT THE HUB OF THE OIL

AND GAS FIELDS AND THE MAIN ROUTES CONNECTING SIBERIA WITH THE

WESTERN PART OF THE COUNTRY

TOBOLSK-NEFTEKHIM

TOBOLSK-POLYMER

PROPANE

DEHYDROGENATION (DHP)

510 KTPA

WEST SIBERIAN PETROCHEMICAL CLUSTER

PROJECT SCALE

2

>298 companies

48 companies

11 organisations

5 companies

DESIGN AND

SURVEY

WORK

EQUIPMENT

PRODUCERS

CONSTRUCTION

AND INSTALLATION

WORK

BANKS AND

FINANCIAL

INSTITUTIONS

COUNTRIES INVOLVED IN THE PROJECT

ITALY

GERMANY

RUSSIA

INDIA

NETHERLANDS

USA

TURKEY

SWITZERLAND

FRANCE

KOREA

MALAYSIA

SINGAPORE

TOBOLSK-POLYMER

MAIRE TECNIMONT SPA (Italy)

EPC contractor for DHP plant

LINDE AG (GERMANY)

EPC contractor for PP plant

FLUOR

(Netherlands)

project

management

contractor

UOP (USA)

DHP licensor

INEOS (United Kingdom)

PP licensor

THE BIGGEST PP PRODUCER (BY PP

UNIT CAPACITY)*

Tobolsk-

Polymer RF 500 000 tpa

Shenhua

Ningmei China 500

Shenhua

Ningmei China 500

Ibn Zahr Saudi

Arabia 500

Chandra Asri

PC Indonesia 480

Total PC Belgium 480

ONE OF THE BIGGEST PROPYLENE

PRODUCERS (BY DHP UNIT CAPACITY)*

Pl Propylene USA 658 000 tpa

Tobolsk-

Polymer RF 510 000 tpa

Saudi

Polyolefins Co.

Saudi

Arabia 450 000 tpa

Propanchem Spain 400 000 tpa

Petronas Malaysia 300 000 tpa

* Projects that are already operational

BELGIUM

UNITED KINGDOM

CZECH REPUBLIC

SPAIN

MEXICO

CHINA

JAPAN

UAE

SWEDEN

AUSTRIA

DENMARK

9%

88%91%

12%

EQUIPMENT MATERIALS

RUSSIAN PRODUCERS INTERNATIONAL PRODUCERS

EQUIPMENT AND MATERIAL

SUPPLIERS**

** Ratio in value terms

TOBOLSK-POLYMER

DELIVERY OF LARGE-SCALE EQUIPMENT

3

EQUIPMENT FOR PP UNIT

EQUIPMENT FOR DHP UNIT

ALL EQUIPMENT IS DESIGNED TO

BE FULLY OPERATIONAL AT −52ºС,

THE LOWEST TEMPERATURE EVER

RECORDED IN TOBOLSK

THE FACILITY’S LARGEST

COLUMN IS 96M HIGH, HAS

A DIAMETER OF 10.5 M,

WEIGHS 1,086 TONNES AND

TOOK 6 HOURS TO BE

INSTALLED

18 VESSELS, 992 RAILWAY

CARS, AND 1,957 TRUCKS

HAVE DELIVERED EQUIPMENT

AND MATERIALS TO THE

FACILITY FROM OVER

20 COUNTRIES

~16 749 km

~31 817 km

~29 131 km

PROJECT CAPEX AND FINANCING

4

CREDIT AGRICOLE CIB

Global Coordinator and Documentation Agent for the financing.

Commercial Facility Agent for the two Commercial Loan Facilities

DEUTSCHE BANK

Hermes Facility Agent, SACE Facility Agent and Hermes Agent

INTESA SANPAOLO SPA

SACE Agent and Italian Paying Agent

PROJECT CAPEX ~

RUB 60 BLN

NAMED DEAL OF THE YEAR 2010 BY INTERNATIONAL

FINANCIAL PUBLICATIONS: PROJECT FINANCE MAGAZINE

AND TRADE FINANCE MAGAZINE

PROJECT

FINANCING

VEB

BANKING SYNDICATE

TOBOLSK

POLYMER

DEAL

MANAGEMENT CREDIT LINES

$1 441 млн1)

1) Including $1,220 mln ECA backed financing – 13.5 years, and $221 – commercial installment loan - 9 years

FINANCING

AGREEMENT

RUSSIAN POLYPROPYLENE (PP) MARKET

5

WESTERN EUROPE

USA

EASTERN EUROPE

RUSSIA

PP CONSUMPTION*

2012, kg per capita

6

14.2

17

18

38%

30%

18%

6%5%3%

PACKINGFIBRESFILMSPIPESPP PLATES (INCL. GEO MATERIALS)OTHER

PP USE*

2012

* Source: MRC Plast

FINAL PP PRODUCTS

HO

US

EH

OL

D

AP

PL

IAN

CE

S

BO

TT

LE

TO

PS

TU

PP

ER

WA

RE

C

AR

BU

MP

ER

S

TH

RE

AD

FO

OD

PA

CK

AG

ING

H

CS

PIP

ES

CH

AIR

S

DA

IPE

R L

ININ

GS

SIBUR’S SALES NETWORK

MOSCOW

VIENNA

SHANGHAI

TIANJIN

QINGDAO

GUANGZHOU

KIEV

ISTANBUL

SIBUR’S INTERNATIONAL OFFICES (EXPORT

DIVISION):

MOSCOW

NIZHNY NOVGOROD

EKATERINBURG

ROSTOV ON DON

SAINT PETERSBURG

NOVOSIBIRSK/TOMSK

BASIC POLYMER SALES

OFFICES:

SIBUR’S SALES NETWORK

ECOLOGICAL PRESERVATION

6

CUTTING EDGE TECHNOLOGICAL SOLUTIONS MINIMISE

THE PROJECT’S ENVIRONMENTAL IMPACT

THE PROJECT’S ENVIRONMENTAL IMPACT IS MONITORED

BY ERM EURASIA, AN INTERNATIONAL SUSTAINABILITY

CONSULTANCY

CONTRACT SIGNED BY 2022

BIANNUAL AUDITS DURING CONSTRUCTION AND ANNUAL AUDITS AFTER

COMMISSIONING

CONTINUOUS AUTOMATIC AIR QUALITY MONITORING BY THE STATION IN

TOBOLSK

REGULAR LABORATORY TESTING PLANNED FOR AIR EMISSIONS

AT THE BOUNDARY OF THE FACILITY’S SANITARY PROTECTION ZONE

ENVIRONMENTAL MONITORING DATA IS REGULARLY SUBMITTED TO THE TYUMEN REGION’S ROSPRIRODNADZOR OFFICE

(FEDERAL SERVICE FOR THE SUPERVISION OF NATURAL RESOURCES) AND THE TYUMEN GOUVERNMENT’S NATURAL

RESOURCES AND ENVIRONMENTAL MANAGEMENT DEPARTMENT

ADVANCED FILTRATION SYSTEM KEEPING VIRTUALLY ALL

EMISSIONS BELOW THE AUTHORISED LEVEL

FACILITY LOCATED 10 KM TO THE NORTH-EAST OF TOBOLSK

WIND ROSE: FOR MOST OF THE YEAR THE WIND DIRECTION IS

AWAY FROM THE CITY

FACILITY EQUIPPED WITH CLOSED LOOP WASTEWATER

TREATMENT SYSTEM (ZERO DISCHARGE TO RIVERS, LAKES,

SWAMPS OR ANY OTHER BELOW/ABOVEGROUND WATER

RESERVOIRS)

WASTE TREATMENT FACILITIES DESIGNED WITH RESERVE

CAPACITY TO CONTAIN OVERSPILL