Brunei Ammonia/Urea Manufacturing Project

1 1 Brunei Ammonia/Urea Brunei Ammonia/Urea Manufacturing ProjectManufacturing ProjectConsortium PresentationConsortium PresentationBandar Seri BegawanBandar Seri BegawanBrunei DarussalamBrunei Darussalam20 September 200420 September 2004 Ammonia/Urea Project Ammonia/Urea Project PresentationPresentation Introduce Project PartnersIntroduce Project Partners urea Product and Market urea Product and Market InformationInformation Project DimensionsProject Dimensions Manufacturing ProcessManufacturing Process Project Benefits for Brunei Project Benefits for Brunei 2 Project PartnersProject Partners Original Project proponentOriginal Project proponent Indonesian subsidiary involved in ammonia / urea Indonesian subsidiary involved in ammonia / urea trade and development of a world scale facility trade and development of a world scale facility within Asiawithin Asia Strong strategic relationship with US West Coast Strong strategic relationship with US West Coast largest Ammonia/Urea importerslargest Ammonia/Urea importers 30 years involvement in Brunei LNG Project30 years involvement in Brunei LNG Project Top 10 global revenue companyTop 10 global revenue company Owns and operates ammonia plants in Indonesia Owns and operates ammonia plants in Indonesia Publicly listed company with market Publicly listed company with market capitalisationcapitalisation~ AS$1 billion~ AS$1 billion Australia s largest Australia s largest fertiliserfertilisermanufacturer andmanufacturer anddistributordistributor Owns and operates ammonia and urea plants in Owns and operates ammonia and urea plants in AustraliaAustralia3 Foundation PartnersThe world s most widely used nitrogen fertiliserThe world s most widely used nitrogen fertiliser The most commonly used fertiliser to provide nitrogen in

2 AgriculThe most commonly used fertiliser to provide nitrogen in The most concentrated form of solid nitrogen fertiliser The most concentrated form of solid nitrogen fertiliser --46% Appearance:Appearance:Free flowing white granules (2 Free flowing white granules (2 --4 mm diameter)4 mm diameter) Chemical Formula:Chemical Formula:CO (NHCO (NH22))22 urea Product InformationUrea Product Information3 urea Market DemandUrea Market DemandUrea is one of the world s largest globally traded urea is one of the world s largest globally traded commodities with demand increasing at ~3% per with demand increasing at ~3% per per Project DimensionsAmmonia/ urea Project DimensionsAmmonia ProductionAmmonia Production Annual rate Annual rate --720,000 720,000 mtmt World scale World scale --equal to largest equal to largest current production ratecurrent production rateGranular urea ProductionGranular urea Production Annual rate Annual rate --1,225,000 1,225,000 mtmt World scale World scale --largest Asian largest Asian Manufacturing capacitymanufacturing capacityScale of InvestmentScale of Investment Approx.

3 US$600 millionApprox. US$600 millionWorld scale, proven size, proven and urea ManufactureAmmonia and urea Manufacture(Simplified Block Flow Diagram)(Simplified Block Flow Diagram)Natural Gas FeedReformingShift and CO2 removalMethanation & CompressionAmmoniaSynthesisAmmonia PlantUrea PlantUrea SynthesisUrea Granulation1000 UreaUrea FormaldehydeCO2 AmmoniaAirSteam3170 Note : 1000 units of gas will produce over 3000 units of urea100% of ammonia produced is used in urea productionOver 70% of CO2generated from ammonia production is usedin urea productionUrea Manufacture has minimal Environmental Impact: urea Manufacture has minimal Environmental Impact: urea is used in growing crops which consume COUrea is used in growing crops which consume CO22andandfeed the worldfeed the world Liquid effluent is negligible and will be managed to world leadiLiquid effluent is negligible and will be managed to world leading ng ANZECC protocolANZECC protocol Gaseous emissions will be managed to meet world standardsGaseous emissions will be managed to meet world standards The facility will be constructed and operated to world s best anThe facility will be constructed and operated to world s best and d fertiliser industry codes of practice.

4 Fertiliser industry codes of practice. Environmental SustainabilityEnvironmental Sustainability5 Strategic location servicing Asia, US West Coast and Australia Brunei Government committed to downstream development Gas infrastructure is existing and extensive World competitive gas price Stable, safe and economically secure country Availability of well educated and disciplined workforce Track record with large petro chemical facilitiesWhy Brunei ? Why Brunei ? Project Benefits for BruneiProject Benefits for Brunei Broaden the Economic base of BruneiBroaden the Economic base of Brunei Expand exports earning by ~US$150 million per annumExpand exports earning by ~US$150 million per annum Diversification from petroleum incomeDiversification from petroleum income Multiplier effect from spinMultiplier effect from spin--off opportunitiesoff opportunities Training and DevelopmentTraining and Development On site skills development and trainingOn site skills development and training University and Technical Institute programsUniversity and Technical Institute programs Secondment opportunities with Project partnersSecondment opportunities with Project partners Employment opportunities at many levelsEmployment opportunities at many levels Directly at the facilityDirectly at the facility Indirectly servicing the facilityIndirectly servicing the facility

5 Spin off industriesSpin off industries6 Employment OpportunitiesEmployment OpportunitiesMore than 200 new jobs will be createdMore than 200 new jobs will be created 155 jobs direct with the Project owners 155 jobs direct with the Project owners More than 50 new permanent jobs servicingMore than 50 new permanent jobs servicingthe facilitythe facility High proportion of skilled management and High proportion of skilled management and technical rolestechnical roles High level of Bruneisation of jobsHigh level of Bruneisation of jobsIndirect EmploymentIndirect EmploymentSuppliers to the ProjectSuppliers to the ProjectOngoing plant suppliers and service contractorsOngoing plant suppliers and service contractors Gas, power and water suppliesGas, power and water supplies urea Formaldehyde and chemicalsUrea Formaldehyde and chemicals Maintenance labourMaintenance labour Facility managementFacility management HR and IT ServicesHR and IT Services TrainingTraining Financial ServicesFinancial Services7 Spin Spin --Off OpportunitiesOff OpportunitiesDownstream Usage of UreaDownstream Usage of urea MelamineMelamine Coatings and laminatesCoatings and laminates FormaldehydeFormaldehyde Building products (particle board and Building products (particle board and melamine)melamine) Fertiliser bagging and blending plantsFertiliser bagging and blending plants Livestock nutrition (cattle/poultry)Livestock nutrition (cattle/poultry)

6 Fuel additivesFuel additivesSpin off opportunities could add as many as 300 additional full time jobsBrunei Ammonia/Urea Brunei Ammonia/Urea Manufacturing ProjectManufacturing ProjectThe Ammonia/Urea Project has clear benefits to Brunei throughdiversification of earnings and the creation of over 200 new full time jobs,as well as new spin off opportunities for small to medium enterprises.