CORRAL PETROLEUM HOLDINGS AB (PUBL) - Preem

Unfinished and Blend Stocks.................................................. 1,593 2 3,710 5 3,219 4Total Feedstock................................................................. 71,975 100 73,944 100 71,546 100Utilization Rate ..................................................................... 88 88 88ProductionLiquefied Petroleum Gas ........................................................ 1,550 2 1,498 2 1,866 3Gasoline.................................................................................. 23,776 33 23,472 32 19,929 28Diesel...................................................................................... 32,402 46 32,815 45 29,821 42Heating Oil ............................................................................. 0 0 0 0 0 0Vacuum Gas Oil ..................................................................... 212 0 582 1 1,540 2Heavy Fuel Oil ....................................................................... 12,558 18 13,188 18 14,185 20Other....................................................................................... 501 1 1,403 2 3,316 5Total Production............................................................... 70,999 100 72,958 100 70,657 100Preem uses linear programming technology to determine the most profitable product mix for its market giventhe available crude oil supply. Preemraff Lysekil is able to process a high proportion of sour crude oil, which is higher insulphur and typically lower in price compared to sweet crude oil.Preemraff GothenburgWe believe that Preemraff Gothenburg is one of the most competitive hydroskimming refineries in Europe andit represents approximately 11% of the Nordic region’s refining capacity and approximately 30% of Swedish refiningcapacity. The refinery has a mild hydrocracker unit, which enables it to upgrade part of its heavy oil production to lowsulphurheating oil. It also has a highly sophisticated desulphurization/dearomatization unit, which permits it tomanufacture virtually sulphur-free (10 parts per million) diesel. In addition, the refinery uses its catalytic reformer andisomerization unit to convert naphtha, a portion of which is received from Preemraff Lysekil, into higher-value gasoline.Preemraff Gothenburg produces a full range of refined products, including liquefied petroleum gas, gasoline, diesel,heating oil, fuel oil, jet fuel and kerosene. The refinery also benefits from two integrated systems for the utilization ofwaste or surplus heat. For the years ended December 31, 2010 and 2009, Preemraff Gothenburg generated additionaloperating profit from the sale of surplus heat of SEK 90.4 million (€10.0 million) and SEK 64.1 million (€7.1 million),respectively, in each case with relatively little additional operating cost. Preemraff Gothenburg has a Nelson ComplexityIndex of 6. The refinery is located on a 370-acre site near the harbor of Torshamnen, Sweden’s largest harbor, inGothenburg. Preemraff Gothenburg’s proximity to this harbor, which provides for oil tanker and VLCC access, helps itto maintain low crude oil transportation costs and its proximity to the west coast inland market helps it to minimizedistribution costs. Preemraff Gothenburg has a total storage capacity of approximately 12 million barrels and a totalrefining capacity of approximately 125,000 barrels of crude oil per calendar day. Aggregate production of refinedproducts at Preemraff Gothenburg was approximately 42.1 million barrels, 37.4 million barrels and 42.5 million barrelsfor the years ended December 31, 2010, 2009 and 2008, respectively.Preemraff Gothenburg has been upgraded several times through large capital investments. As a result of theseimprovements, we believe that Preemraff Gothenburg is one of the best-performing hydroskimming refineries in Europe.The following chart summarizes upgrades to Preemraff Gothenburg:Upgrade at Preemraff Gothenburg Function YearIsomerization Unit ............................................................ Produces an additional low-benzene gasoline1993componentDesulphurization/Dearomatization Unit ........................... Converts conventional heating oil or diesel into 1997virtually sulphur-free, low aromatic dieselHeavy Gasoil Upgrading Unit .......................................... Upgrades heavy gasoil into heating oil for commercial 1997useSulphur Recovery Units.................................................... Converts hydrogen sulphide into liquid sulphur 1997Molex Unit........................................................................ Increases the octane of the gasoline component 2002isomerateMild Hydrocracker Unit.................................................... Upgrades heavy oil production to low-sulphur heating 2003oilImported crude oil arrives by ship at the harbor of Torshamnen, which is capable of receiving crude oil carriersin excess of 200,000 dead weight tons, and is then transported to Preemraff Gothenburg by pipeline. Between 50 and 60crude oil carriers arrive at Torshamnen each year. At Preemraff Gothenburg, the crude oil is discharged into sevenabove-ground storage tanks and two underground caverns with a combined storage capacity of approximately 5.6 millionbarrels.Preemraff Gothenburg operates two identical crude distillation units. During distillation, the crude oil is heateduntil it separates into different fractions. After distillation, Preemraff Gothenburg further refines, upgrades and processes39