CONTINENTAL REFINING COMPANY. Bringing Refining Options, Savings and Community Commitment to Southern Kentucky

Transcription

1 Kentucky Oil & Gas Association CONTINENTAL REFINING COMPANY Bringing Refining Options, Savings and Community Commitment to Southern Kentucky P R E S E N T E D B Y : K O G A A N N U A L M E E T I N G J U N E ,

2 SOMERSET REFINERY SOLD AGAIN? LLC, CRC purchased Somerset Energy Refining LLC on December 9 th, Demetrios Haseotes, sole member, entrepreneur who is native of Providence, RI has experience in Petroleum Refining, Marketing, Transportation, Real Estate, & Agribusinesses and currently serves as President, CEO of company.

3 EXPERIENCED & RESPECTFUL LEADERSHIP CEO, Demetrios Haseotes brings deep industry knowledge, humility and respect Haseotes has experience in worldwide petroleum refining, marketing, transportation, real estate and agribusinesses Commonwealth Journal Negotiated and managed procurement of supply contracts for approximately 30 million gallons of gasoline per year Served as president and COO of Hemisphere Management Corp. since 1993 Started with a single gas station in Marshfield, MA and grew into more than 33 gasoline, convenience and truck stop locations between New England and Florida Owner and past director of the Cumberland Group of Cos., which includes Cumberland Farms and Gulf. Newfoundland Energy Limited, World-class 105,000 bpd refinery Crude oil procurement Refinery management Turnaround Vessel Chartering/Scheduling

4 CONTINENTAL REFINING FACILITY FACT SHEET Total Permitted Refining Capacity: 5500 BPD CRC Refined Annual Product Offering: E10 Gasoline (23mm gallons), K1 Kerosene (5.9mm gallons), NRLM Diesel/Home Heating Fuel (21mm gallons), #4 Residual Fuel (9mm gallons), #6 Residual Fuel Oil (21mm gallons) 7,200 barrels per day (bpd) of crude oil produced within a 100-mile radius of, the company will have access to 45,000 bpd in neighboring oil producing states (Source: U.S. Energy Information Administration, EIA) Kentucky and Tennessee consume 186 million barrels annually of gasoline, diesel fuel, low sulfur heating oil, and residual fuels (Source: U.S. Energy Information Administration, EIA) Refinery entering 80 th year of existence.

5 ATMOSPHERIC CRUDE DISTILLATION NAPHTHA DESULFURIZATION CATALYTIC REFORMING KEROSENE DESULFURIZATION CRC REFINING PROCESSES REFINERY FUEL GAS SWEETENING

6 CURRENT ACTIVITIES & PROGRESS SMALL REFINER HARDSHIP SUBMITTAL: Retained leading law firm Perkins Coie, in Washington, DC, for representation to obtain small refiner status. Application is finalized and awaiting EPA approval as of April 2012 Purpose of application is to extend original waiver given to "small refiners" to comply with the ULSD Diesel fuel standard, MSAT II Gasoline standard, & RFS 2 Renewable fuel standard.

7 CURRENT ACTIVITIES & PROGRESS (cont.) Facility Engineering Gap Assessments Louisville, KY Process Engineering firm, C&I Engineering retained to assist with facility restart. P&ID Walk downs Fixed Equipment Identification Vessel/Piping API inspection planning Unit Modeling/Optimization Review Gateway analysis of process design to meet ULSD, MSAT II, & RFS II Fuel regulations.

8 CURRENT ACTIVITIES & PROGRESS (cont.) Environmental, Health, & Safety Policy/Compliance Review Continual monitoring/reporting functions for Air, Water, Waste compliance. Review of upcoming US EPA Air, Water, Waste regulations such as GHG tracking & Motor Vehicle/Bunker Fuel regulations. Development of OSHA Process Safety Management program. Catlettsburg, KY Process Safety consulting company, EEC, chosen to assist facility with implementation. Administrative review Review/Hiring of necessary facility staffing underway. Review of IT infrastructure such as company hardware/software packages. Development of Upstream, Refining, & Marketing strategies.

9 KY/TENNESSEE PRODUCER OPPORTUNITIES & SPECS Contracts customized on a case-by-case basis Transportation advantages with up to 40% savings; CRC currently reviewing most efficient/economic transportation method. Setting up producer contracts now, eager to meet. Various local producers/operators/gatherers have been approached and initial crude supply discussions have began. CRC will purchase crude oil with the following specifications: API specific gravity 30+ 2% maximum BS&W Sulfur content less than 1% Asphalt less than 1% Low heavy metals and organic chloride 0-10ppm if Ni, V, Si, Al, Fe

10 WHY WE WILL SUCCEED TOGETHER We respect producers you are essential Up to 40% savings on regional transportation costs SUPERIOR PAYMENT SCHEDULES Payment cycles that are half the industry average of 45 days Financially conservative: our simplicity and reduced overhead allows CRC to pass on profit Experienced management and deep knowledge

11 PRODUCER OF THE MONTH Monthly award for producers that meet performance standards $1,500 reward given monthly to select producer Awarded as a $1,500 in transportation costs One entry per month per qualified producer We respect producer s professionalism and we prove it monthly Criteria values producer pride, quality product and organization 48 hours notice on pickup of crude Called in volumes for pick up are at 95% of load capacity For either bobtail (95 bbls) or transport load (190 bbls) Crude meets CRC crude quality criteria Posted on website For details contact Kris Gibson at

12 COMMUNITY COMMITMENT & GROWTH is committed to: Continental Refining aims to become a regional refining leader to small and medium sized crude producers in Kentucky and Tennessee Expanding local employment by hiring 40 people, no job losses Managing for long-term prosperity and enduring employment Ensuring that Somerset, KY is a part of the domestic oil capacity the United States is craving Future hiring : All current positions will remain in place and 40 jobs will be added with an estimated 200 indirect jobs created by this purchase and expansion

13 THANK YOU! Contact Information We look forward to seeing how we can work together. -Demetrios Haseotes Please contact my plant manager at your convenience. Kristopher Kris Gibson CRC Plant and Operations Manager