byco in brief

BYCO

Byco in Brief

Byco is Pakistan’s emerging energy companies engaged in the businesses of oil refining, petroleum marketing, chemicals manufacturing and petroleum logistics. Headquartered in Karachi, we are serving our mission to fulfill the energy demand within and beyond borders.

Companies under Byco umbrella are:

Byco Oil Pakistan Limited (BOPL) Oil Refining & Chemical Manufacturing Byco Petroleum Pakistan Limited (BPPL) Oil Refining & Petroleum Marketing Byco Terminals Pakistan Limited (BTPL) Petroleum Infrastructure & Logistics

(formerly Universal Terminal Limited) We are engaged in manufacturing of a wide range of petroleum products with the

objective to achieve sustainable productivity, profitability and high standards to address the environment, health and safety requirements.

Byco's operational refinery has a capacity to refine 35,000 barrels a day of crude oil into various saleable components including Liquefied Petroleum Gas, Light Naphtha, Heavy Naphtha, High Octane Blending Component, Motor Gasoline, Kerosene, Jet Fuels, High Speed Diesel and Furnace Oil. We have expanded our refining complex by setting up another refinery with the capacity of 120,000 barrels per day which is completed.

We take pride in having the largest capacity crude oil storage tanks in the country. Our petroleum distribution network supports movement of petroleum products and provide greater economies of scale.

Our marketing network supports retail outlets in more than 80 cities all over Pakistan and is an emerging leader in oil marketing sector of our economy.

Our diverse and highly skilled workforce consists of approximately 800 dedicated employees shared among Byco companies.\

Company Profile

Byco Oil Pakistan Limited (BOPL), is a company incorporated in Pakistan on 6th April, 2006 having a portfolio of oil refining and chemical manufacturing businesses. With a vision to maximize the synergies of energy industry, the company owns the largest oil refinery in the country and plans to set up a chemical manufacturing plant soon at Byco’s manufacturing complex located at the coastal belt of Baluchistan province.

1 | P a g eByco Oil Pakistan Limited 10th Floor, The Harbour Front, Dolmen City, HC-3, Block-4, Marine Drive, Clifton,Karachi-75600, Pakistan Tel: (+92 21) 111 222 081 Fax: (+92 21) 111 888 081 Website:

http://www.byco.com.pk

BOPL is owned by Byco Industries Incorporated (BII), a company incorporated in the Republic of Mauritius and having a portfolio of energy investments. Byco Industries Incorporated (BII) has identified great potential and opportunities in energy sector in this region and has invested in related businesses in Pakistan and United Arab Emirates.

BOPL owns major shareholding (85.46%) in another Byco company named as Byco Petroleum Pakistan Limited (BPPL). BPPL is incorporated in Pakistan since 1995 and is involved in oil refining and petroleum marketing in addition petroleum infrastructure and logistics businesses through its subsidiary named as Byco Terminals Pakistan Limited (BTPL).

Business Portfolio

Oil Refining Business:Oil refining is the key business portfolio of the company. This business portfolio holds the largest oil refinery in the country in terms of refining capacity and is supported by the subsidiaries who are involved in petroleum marketing and petroleum infrastructure businesses. The business not only fulfills the energy demand of the country but also export finished products in the international markets.

Chemical Manufacturing Business:The company has identified great potential in chemical manufacturing business in this country and plans to set up a petrochemical complex besides its refinery complex in Mouza Kund, Hub, Baluchistan. This business portfolio is actively involved in project installation of the petrochemical plant that will produce various petrochemical saleable products to meet the demand of the country and beyond borders.

History

Byco Group was founded by the Founder Chairman, Mr. Parvez Abbasi (Late) in mid-90’s with the vision to pioneer the change in the energy sector of Pakistan. With his vision, the company Byco Petroleum Pakistan Limited was formed in January 1995 as public limited company.

Byco installed its first oil refinery with a 30,000 barrels a day at Mouza Kund, Hub Balochistan and started its commercial production from July 1, 2004 with various saleable components including Liquefied Petroleum Gas, Light Naphtha, Heavy Naphtha, High Octane Blending Component, Motor Gasoline, Kerosene, Jet Fuels, High Speed Diesel and Furnace Oil.

In 2008, the company decided to enter into the Petroleum Marketing Business and set up the first retail outlet, and since then the retail network has grown immensely.



In Dec 2012, Byco successfully completed the project of largest refinery in the country. This new refinery is installed in the vicinity of the existing refinery and has a capacity of 120,000 barrels a day.

In 2012, Byco achieved another milestone by successfully completing Single Point Mooring project. This floating port is the first of its kind in the country and has a capacity to handle very large petroleum cargo vessels.

Historical Highlights

1995 Incorporation of Byco Petroleum Pakistan Limited (BPPL)Byco Petroleum Pakistan Limited was incorporated in Pakistan as a public limited company on January 09, 1995 and was granted a certificate of commencement of business on March 13, 1995. The shares are listed on Karachi, Lahore and Islamabad Stock Exchanges.

2001 Relocation of BPPL RefineryCommencement of construction of refinery (ORC I).

2004 Commencement of commercial operationsThe Company started its commercial production from July 1, 2004 refining crude oil into various saleable components including Liquefied Petroleum Gas, Light Naphtha, Heavy Naphtha, High Octane Blending Component, Motor Gasoline, Kerosene, Jet Fuels, High Speed Diesel and Furnace Oil.

2006 SAP ImplementationSAP enterprise resource planning, one of the leading ERP software is active with strong presence in the Organization since 2006. This has enhanced system efficiencies by providing real time information to the Management for decision making.

2007 First Retail OutletByco commenced the sale of petroleum products with the establishment of its first retail outlet in July 2007 near Sukkur.

2007 Isomerization UnitByco Petroleum Pakistan Limited acquired first Isomerization Unit in the Country.



2008 Revamp and Debottlenecking BPPL Refinery Capacity was revamped and debottlenecking was done.

2008 Joint venture with Abraaj Capital LimitedAbraaj Capital Limited (ACL), a leading private equity firm of Middle East, North Africa and South Asia (MENASA), joined hands with Byco group. Under the agreed arrangement, Abraaj acquired 40 % share in Byco group.

2008 Relocation of Byco Oil Pakistan Limited (BOPL) RefineryCommencement of construction of 120,000 bpd refinery.

2009 Petroleum Marketing BusinessByco Petroleum Pakistan Limited entered into the Oil Marketing arena by formally relaunching its Petroleum Marketing Business formerly Oil Marketing Unit.

2009 Completion of Storage TanksByco Petroleum Pakistan Limited built the largest capacity Storage Tanks in the country.

2010 Acquisition of BTPL (formerly UTL) by Byco Petroleum Pakistan LimitedByco Petroleum acquired 100% shares of Byco Terminals Pakistan Limited (formerly Universal Terminal Limited) - with a terminal at Kemari, Karachi.

2010 Capacity Enhancement of Byco Petroleum Pakistan Limited RefineryORC I refining capacity was enhanced to 35,000 bpd.

2010 Rebranding BycoAn unparalleled and unique brand architecture exercise was performed by international brand consultants to position Byco over and above its competition. This exercise was aimed to strengthen the corporate image and enabling to compete locally and globally.

2010 Single Point Mooring and Pipeline ProjectProject for Single Point Mooring and Pipeline network was initiated after a ground breaking project ceremony.

2012 Long Service Awards & Safety Awards



Oct 2012, Byco held Long Service Awards and the Safety Awards ceremony.

2012 Byco Commissions First Ever Single Point Mooring in PakistanDec 2012, the first ever oil tanker berthed at its newly-established deep sea Single Point Mooring (SPM) facility constructed by BTPL. Oil tanker, M.T ARIETIS, carrying 70,000 tons of Upper Zakum crude oil from Abu Dhabi marked the commissioning of 3rd port in Pakistan.

2012 Byco Announces Completion of Country’s Largest Oil RefineryDec 2012, Byco announced completion of the country largest oil refinery installation. This newly commissioned petroleum Refinery has an installed refining capacity of 120, 000 barrels per day.

Corporate Governance The Board of Directors and Management of Byco companies are committed to the highest standards of corporate governance. Byco operations are conducted in accordance with the prevailing statutory regulations and laws.

Vision & Values Our vision is to be a leading energy company through delivering the core business, achieve sustainable productivity and profitability to deliver a superior shareholder return.

Byco values are the guiding principles that define how it conducts its business and what it stands for as a company. This includes:

Setting high standards of care for environment, health and safety. Investment in human capital, offer competitive employment terms and provide safe

and congenial working environment and an equal opportunity for all our employees.

Entail human resource development and promotes openness, professionalism, teamwork and trust.

Enhancing value addition, implementing conservation measures and growth up-gradation through addition of newer generation technologies.

Credibility, goodwill and reputation earned through ethical practices, honesty, integrity and respect for people.

Safeguarding of shareholders' interest and providing them with a consumer rate return on equity is an integral part of our business ethics.

These values are the basis of our commitment to operate as a sustainable energy company.



SUPPLY CHAIN MANAGEMENT:

I. PLANNING:

Planning is done in order to set the goals and objectives of a company. While planning, the company forecasts the demand and check for its available resources. Byco identifies its demand of the products on yearly and monthly basis. Then make sure that how much resource is currently available to them and how much they need to outsource.At the beginning of the year, Petroleum Marketing Business (PMB), formerly known as Oil Marketing Unit, of Byco conducts a meeting with General Managers of all the departments, in which they get the corporate objectives by the MD and gives reports about their functional performance of each department. In this meeting they discuss about the demand and supply of the products as well as make strategies on how to meet those demands on right time with right quantity and at right place. Byco has focused on retail network development since 2007 and, since then, has made exceptional progress in network growth. Their market presence is across the country from Karachi to Kashmir with retail station network of above 219, primarily focusing on retail segment, and PMB is now expanding the work of art by targeting to become a dominant player in the industrial, international and retail segments. Going forward, PMB will be increasing its product portfolio by adding LPG and lubricants as well, in the near future, they aspire to add considerable stations in the current fiscal year and in future to consolidate their market share. Byco has planned for launching state-of-the-art retail stations with new design and corporate identity. These new stations will be equipped with Convenience Store, ATMs, Car Wash, Tyre Shop and other consumer facilities.PMB is focusing and planning to provide to the international opportunities available in the region where it can market petroleum and lubricant products. With ever-increasing competition in the market today, availability of product is a major challenge for all Oil Marketing Companies (OMCs). Byco has an edge distinctive advantage through its Refinery, to meet the product requirement in the south of the Country.With a cumulative market share of 2.5% in liquid fuels, Byco Petroleum Marketing has grown almost 25% in terms of market share as compared to the last year. Byco has maintained a leadership position in the Pakistani bunkering segment via maintaining over 50 % of the market share in the past one year. Petroleum Marketing has a unique presence in the international market by supplying specialized diesel (Ultra Winterized Diesel) and bunkering fuels (RMG 380) in growing foreign markets.



II. SOURCING:

Products & Suppliers

With increasing competition in the market today, availability of product is a major challenge for all oil marketing companies. Byco has a distinctive advantage through its refining business to meet the product requirement in the south of the Country. Supply chain mechanism has been strengthened with availability of storage terminals across the country. Moreover with entry into the White Oil Pipeline the company is supplying refinery’s product across the country more efficiently.Byco serves the consumer and industrial segments with quality products like Light Diesel Oil (LDO), High Speed Diesel (HSD) and Furnace Oil (FO). They have a dedicated team of professionals that covers all the regional requirement of our customers and provide quality service. However, their main revenue-generating products are Gasoline and Diesel.As far as the importing of raw material is concerned, Byco imports crude oil from their supplier, Adnock (Abu Dhabi). Although the company sends specifications to multiple suppliers, but, according to the representative, Byco strongly relies on Adnock, since it’s beginning, due to blind trust, but, the company focuses on transactional type of relationship with the supplier. Adnock has not deceived them so far on price, therefore, it can be said that the company has only one significant supplier.To aid in the delivery of product to the consumers at their doorstep, arrangements are in place to acquire products through other sources, like the White Oil Pipeline, as well as purchases from other refineries and oil marketing companies.

Purchasing & Procurement

Byco Oil Pakistan Limited (BOPL) is responsible for the handling of procurement and purchasing activity of Byco. The Board of Byco companies works under a set of well-established corporate governance policies that reinforce the responsibilities of all Directors in accordance with the requirements. The Board regularly reviews and updates its corporate governance policies to ensure that the policies remain in accordance with best practices. The company runs training programs for the employees yearly.

Supply



Byco Group’s two oil refineries, the 35,000 barrels per day- Byco Petroleum Pakistan Limited (BPPL) and the 120,000 barrels per day- Byco Oil Pakistan Limited (BOPL) continue to expand their industry leadership and delivery of refined petroleum products.

Byco introduces state-of-the-art Mobile Testing Laboratory all across the country to bring its customers clear options for top quality Gasoline, Diesel, and Lubricants. Their Mobile Testing Laboratory checks the quality and quantity of refined fuels and lubricants, so that the supply of pure products with accurate quantity can be assured every time, everywhere.

III. MAKING:

Operations

Single Point Mooring

At Byco, Single Point Mooring (SPM) facility, being set up for the first time in Pakistan, allows the handling of imported crude oil and other petroleum products. SPM is an open sea port with sub-sea and sub soil pipelines connecting it to the on-shore facilities.This facility is being set up in the deep sea, at a distance of approximately of 15 km from the Byco site located at Mouza Kund, Balochistan, Pakistan. The floating jetty will be connected to crude oil tank farm of approximately 130,000 metric tons, via 3.3 km on-shore pipelines and 11.5 km off-shore 28" pipelines.

The SPM can currently handle vessels of 100,000 deadweight tonnage (“DWT”), and has the expansion capacity to add two more pipelines which enhance facility's throughput.

Storage

Byco Terminals Pakistan Limited (BTPL) is a petroleum infrastructure & logistic company setup to facilitate the logistics of petroleum products which operates with storage tanks facilities at Kemari and Byco refineries complex with total capacity of 140,000 MT. Terminal facility at Kemari has a total capacity of 10,000 MT and will be utilized for import and export of petroleum products mainly aviation fuel. Tank farm at Mouza Kund has a capacity of 130,000 MT and is utilized for storing crude oil.

Manufacturing

Byco is engaged in manufacturing of a wide range of petroleum products with the objective to achieve sustainable productivity, profitability and high standards to address the environment, health and safety requirements. Byco's operational refinery has a capacity to refine 35,000



barrels a day of crude oil into various saleable components including Liquefied Petroleum Gas, Light Naphtha, Heavy Naphtha, High Octane Blending Component, Motor Gasoline, Kerosene, Jet Fuels, High Speed Diesel and Furnace Oil. Furthermoer, they have expanded their refining complex by setting up another refinery with the capacity of 120,000 barrels per day.

Crude oil is separated into fractions by fractional distillation. The fractions at the top of the fractionating column have lower boiling points than the fractions at the bottom. All of the fractions are processed further in other refining units.

Crude Oil Refining

Distillate Fraction Boiling Point (C) Carbon Atoms per Molecule

Gases below 30 1 - 4

Gasoline 30 - 210 5 - 12

Naphtha 100 - 200 8 - 12

Kerosene & Jet Fuel 150 - 250 11 - 13

Diesel & Fuel Oil 160 - 400 13 - 17

Atmospheric Gas Oil 220 - 345

Heavy Fuel Oil 315 - 540 20 - 45

Atmospheric Residue over 450 over 30

Vacuum Residue over 615 over 60

IV. DELIVERING:

Logistics

BTPL is a petroleum infrastructure & logistic company setup to facilitate the logistics of petroleum products.

Inbound

Raw material transportation at Byco is achieved by Single Point Mooring (SPM).

Outbound

Transportation of finished products is basically outsourced by Byco. Byco uses 3 Party Logistics (3PL) for this purpose.



Distribution

Byco takes pride in having the largest capacity crude oil storage tanks in the country. Their petroleum distribution network support movement of petroleum products and provide greater economies of scale. Byco uses a direct channel having 20 outlets all over Pakistan, 219 retail stations across the country.

The location of the SPM restrains the distance from the Middle Eastern Ports by 100 sailing miles per trip thus leading to further savings of freight. Moreover, Oil Refining Complex -1 (ORC-I) is located 50km from Karachi towards Hub in Baluchistan Coastal area. The location of an Oil Refinery has an important impact on its refining margin, since it determines how well it can access feed stocks and distribute its products. The Location also dictates whether feed stocks and product can be transported by sea via pipe lines or road. Coastal area located Refinery like Byco typically has a competitive advantage over those located inland due to lower logistics costs.

Byco covers all the areas throughout the Pakistan through its wide distribution of network via depots. Following are the list of depots of Byco.

List of depots of Byco in PakistanChakpiranaTarujabba

GattiMachikeyChaklalaShikarpur

VehariMehmood Kot

KeamariJuglotQuetta

Taru jabba

CORPORATE SOCIAL RESPONSIBILITY:

Byco’s corporate aim is to manage their business to promote sustainable social, environmental and economic benefits to all stakeholders wherever they operate. Byco values its stated policies regarding environment, health and safety, honesty and integrity in conducting business, commitment to the community, and creating a great place to work. Byco is committed to respect all laws and regulations.



Byco is committed to long-term sustainable programs to improve quality of life in the communities in which they live and operate. Byco supported the reconstruction of roads and has partnered with the Highways department, Government of Baluchistan during 2004 and 2010. Byco practices transparency in all business dealings, accessibility of records and fiscal responsibility.

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