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Refining Life, Redefining Growth

25th April, 2007

FY 2006-07

Project Progress Update


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Contents


Global Refining Environment

Summary


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3

Crude prices recovered marginally

Downside risk limited, given stronger growth outlook

Jan 07 fall driven by:

Lower demand

Warm weather

High OPEC supplies

Recovery influenced by:

Renewed geopoliticaltension; Actions of Iran

Lower product

inventories in US

OPEC cuts

Colder weather & high

implied demand

Quarterly Marker Crude Oil Prices

3035

40

45

50

5560

65

70

75

Q42004

Q12005

Q22005

Q32005

Q42005

Q12006

Q22006

Q32006

Q42006

Jan-07

Feb-07

Mar-07

Prices

in

$/b

bl

WTI

Brent Dubai

61.5

66.0

2006

55.449.533.723.4Dubai

58.056.641.526.6WTI

Q1 2007200520041999-2003US$/ bbl


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4

Margin Scenario Historic and Current

Conversion capacity crunch supportive of complex refiner margins

8.4

5.1

5.8

2006

8.4

4.1

6.8

Q1 2007

6.86.42.4Singapore

1.2

1.8

1999-2003

8.03.5USGC

6.44.6Europe

20052004US$/ bbl

Step jump in cracking margins since 2004 caused by;

Run-away growth in demand, especially in transportation fuels

Little capacity additions and tighter product specification

Sluggish Fuel Oil demand growth due to shift to cleaner Natural Gas

Lower margins in 2006 attributable to higher stock levels, benign storm season and

slow growth in demand on the back of high oil prices


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5

Singapore Margins : Simple vs. Complex

Complex refiners retain their competitive advantage

0.8

(0.1)

5.8

5.4

2006

5.55.13.21.2Light-Heavy Differential

1.0

0.7

2.4

1999-2003

1.21.72.0Sing Margins Dubai

Topping

0.61.23.1Demand growth in MMBD

6.86.86.4Sing Margins Dubai

cracking

Q1 200720052004US$/ bbl

Light - Heavy differential - Widest levels seen in recent years

Complex margins delta to simple margins (US$ 5.7/ bbl for 2006 and US$ 5.6/ bbl for

Q1 07), very strong in recent times


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The year ahead

2007: Shaping up as another strong year for complex refiners

Robust demand growth expectation of 1.5 MMBD.

Non OPEC production growth projected at less than 1 MMBD

CDU capacity additions at 1 MMBD - Lower than expected demand and supportive for margins.

US Gasoline lifts up the complex; margins may soften from current levels unless there is some

serious disruptions. Another rally may happen during hurricane season.

Following market indicators are supportive of strong complex margins:

Continuous reduction in US product inventories

Refinery capacity additions lagging demand growth

Tighter product specifications

Continued weakness in fuel oil alongwith strong gasoil margins

Residual fuel oil economical as supplementary feedstock

Strong hurricane season


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Global refining sector: Medium term outlook

Demand side

Medium term world GDP growth pegged higher-than-historical but lower than 2006

Demand growth during 2007-2009 at 5 MMBD vs. Annual growth of 1 MMBD during 93-'03

While heating oil demand may fluctuate with winter expectations, diesel demand is largely a

function of road / rail freight and, as such, a function of the economy.

Medium term demand side impact of bio fuels: very limited

Trade flows expected to be impacted by product quality considerations

Supply side

Project delays and construction bottlenecks push major capacity additions beyond 2011

Conversion capacity additions over the next 2 3 years much above historical; However,

still expected to lag demand growth

Western refiners adjusting throughput to support product margins


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Incremental capacity and refinery utilisation

Refining bottleneck unlikely to disappear before 2011

Source: Merrill Lynch

IncrementalCap

acityinMMBD

Due to delay in new projects commissioning, refinery utilisation expected to peak in

2009 indicating stretched refining capacity

Even by 2010, utilisation levels expected to be much higher long term historical

RefineryUtilisationratesin%


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Medium term margin outlook equally encouraging

$/bbl ESAI PEL POTEN Average 1999-03 2006

Dubai 46.2 56.9 55.5 52.9 23.4 61.5

Dated Brent 49.2 62.0 52.6 54.6 25.0 65.1

WTI 50.7 64.0 56.5 57.1 26.6 66.0CRACKS

Gasoil 7.8 12.3 10.9 10.3 4.4 15.3

Kerosene 9.9 16.5 13.4 13.3 5.7 19.1

Naphtha 2.3 2.3 1.0 1.9 1.9 0.3

Gasoline 8.8 9.3 10.6 9.6 5.4 11.7Fuel Oil -6.9 -7.4 -12.5 -8.9 -1.4 -12.7

Actuals

Product margins stronger than historical and weaker than current

Conversion capacity additions expected to make fuel oil less weak from current levels

ESAIs forecasts generally tend to be very conservative

Period of strong margins expected to extend till 2011

Crude price outlook: 2007-2011


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Trade Flows

Product specifications will govern trade flows

Refiner with flexibility to swing across different qualities at

production stage may exploit better opportunities

Trade routes to be longer requiring logistic optimisations

Flexibility in product export logistics

Higher parcel sizes

Break bulk operations

Process/ logistical flexibility: an imperative


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Summary Refinery Business Environment

Global economic growth projections supportive of demand growth

Geopolitical concerns and limited Non OPEC growth to support oil prices

Continuing slow growth in capacities due to delays / cancellation of new

projects to extend margin strength till 2011

Competitiveness of complex refiner expected to stay

Extended period of strong complex margins


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Summary Product Trade Flows

Product trade flows likely to be governed by:

Imbalances in individual grades

Flexibility to switch between grades

Longer hauls

RPL prepared to meet the market needs by virtue of

Ability to maximise ultra low sulfur products

Process/ logistical flexibility to switch between grades

Ability to load suezmax product parcels

RPL well positioned to respond to market needs


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RPL flexibility : A significant competitive advantage

Capability to produce ultra clean fuels

Process / logistical flexibility to switch between grades

Capability to handle up to suezmax product vessels

RPL fully geared to respond to market requirements and reap benefits

of emerging opportunities in the global refining environment


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Contents



Summary


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Summary of Project Progress

Cumulative project progress of 50% as at year end

Basic engineering done; Detailed engineering work nearly completed

Procurement contracting for all key equipments completed

Equipment deliveries and their installations have commenced

Construction activities gained significant momentum during the quarter

Concurrent progress across all units; Skylines have change dramatically

Pipe racks and foundation works moving rapidly

Concreting activities nearing its peak; focus shifting towards piping work

Equipment erection activities begun and have gained significant momentum

Sufficient site infrastructure developed to sustain construction on fast track

Impressive project progress; On track for completion by Dec 08


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Engineering progress update

Nearly 80% of detailed engineering work completed

Entire project scope of concrete drawings delivered to site already

Over 70% of structural steel drawings completed; Focus now shifting on release of

piping isometrics and electrical as well as instrumentation engineering drawings

3D site modeling effort progressing rapidly to provide benefits superior

engineering quality, reduced construction interferences and rework at site

Over 7500 engineers working on the project across locations globally

Rapid engineering progress, supporting fast track construction


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Procurement progress update

Procurement and contracting activities nearly completed

Over 95% of tagged items ordered

Over 300 equipments, including several critical and long lead items, delivered at site

Equipment installations have commenced already

Substantial part of project bulks delivered at site

More than 85% of rebars, pipes, fittings, flanges and tankage plates

Over 80% of structural steel requirements delivered at site

Electrical Bulks first lot received

Emphasis shifting towards vendor monitoring and follow-up

Expediting and inspection of all critical and long lead equipments

Compliance with quality and delivery commitments

Deliveries and installation of long lead equipments taken off


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Construction progress update

Over 1,000,000 cubic meters of concreting work completed

Nearly 80% of concreting work for the project is complete now

Focus shifted towards underground laying, piping erection and equipment front generation

New construction record created during the fourth quarter

Over 185,000 cubic meters of concrete poured in a single month

Surpassed earlier record of 168,555 cu.m created by RPL in Dec06 and 154,000 cu.m created

during the implementation of RIL refinery

Nearly 40,000 tonnes of structural steel fabrication and about 34,000 tonnes of tankage

fabrication work completed, meeting nearly 80% of peak requirements

Site infrastructure in place to receive peak construction workforce during 1H FY 2007-08

Project concreting work nearing completion; Resource mobilised tosustain rapid pace of construction


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19

An aerial view of project site at Jamnagar

Snapshot of project progress


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FCC unit with OSBL pipe rack loaded with pipes



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FCC unit pipe rack construction making rapid progress


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Crude pipe rack in progress



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Alkylation plant overview



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Pressure swing absorption unit and reformer in HMU under installation



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Rapid progress in sulphur stack construction during the quarter

Dec06 Mar07



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Coke drum structure nearing completion



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Coker pipe rack in progress


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28Coker Nitrogen vessel under installation


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CFP heater and reactor structure



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30Coker EW Piperack



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Tanks in progress at the Refinery Tank Farm



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Central Control Building



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Changing Skylines JERP Aerial View


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Contents



Summary


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Project implementation summary

Refinery progressing full steam to commence production in 2008

MilestoneExpected

Completion

Date

Months from

Zero DateCurrent Status

Start of the Project/Zero Date 01-Dec-05 Started

Technology Selection/Project Scope Jan-06 1 Completed

Completion of Basic Engineering May-06 6 Completed

Order placement for critical

equipmentMay-06 6 Completed

Completion of Detailed Engineering Sep-07 22 Ongoing

Completion of Civil work Nov-07 24 Started

Completion of Equipment Erection Jan-08 26

Mechanical Completion Aug-08 33Ready for Start Up (RFSU) All areas Sep-08 34

Commencement of operations Dec-08 36

Progressing


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Thank YouThank You

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