CORRAL PETROLEUM HOLDINGS AB (PUBL) - Preem

the fractions as follows:Liquefied Petroleum Gas Unit. In the liquefied petroleum gas unit, installed in 1967, Preemraff Gothenburgseparates the gas fractions (butane and propane) by distillation from the high-octane component.Isomerization Unit. The naphtha fraction (after desulphurization) is processed in a reformer unit to increaseoctane. In Preemraff Gothenburg’s isomerization unit, completed in 1993, an additional, low-benzenecomponent for blending gasoline is produced.Desulphurization/Dearomatization Unit. Preemraff Gothenburg’s highly sophisticated heating oil/dieseldesulphurization/dearomatization unit was completed in 1997. This unit enables Preemraff Gothenburg toproduce virtually sulphur-free (10 parts per million) and low-aromatic diesel from crude oil with highsulphur, which is typically lower in price than crude oil with low-sulphur content.Heavy Gasoil Upgrading Unit. In 1997, Preemraff Gothenburg installed a heavy gasoil-upgrading unit,which upgrades heavy gasoil into heating oil for commercial use.Sulphur Recovery Units. The hydrogen sulphide formed during the various desulphurization reactions isfed to Preemraff Gothenburg’s sulphur recovery units, which were installed in 1997, and converted to liquidsulphur for resale as a feedstock to chemical companies.Molex Unit. In 2002, Preemraff Gothenburg installed a molex unit, which increases the octane of thegasoline component isomerate.Mild Hydrocracker Unit.In 2003, Preemraff Gothenburg completed construction of a mild hydrocracker unit, which enablesPreemraff Gothenburg to upgrade part of its heavy oil production to low-sulphur heating oil.During the first quarter of 2010, we shut down our mild hydrocracker at Preemraff Gothenburg for twomonths (until May 2010) in order to modify the unit to partly process renewable feedstock, whichenables us to produce biofuel diesel.After processing, refined products are stored in the facility’s 70 storage tanks and three underground cavernswith a total capacity of approximately 6.5 million barrels. The products are pumped by pipeline from the refinery to anoil terminal in the harbor of Skarvik, two kilometers south of Preemraff Gothenburg. From there, we distribute theproduct to the market by ship, rail and truck.Preemraff Gothenburg has two integrated systems for the utilization of waste or surplus heat with a totalcapacity in excess of 100 megawatts. These systems enable us to sell surplus heat, which would otherwise be wasted,corresponding to approximately 200,000 barrels of fuel oil per year to the district heating system of the city ofGothenburg and approximately 100,000 barrels of fuel oil per year to AB Volvo. Preemraff Gothenburg generatedadditional operating profit from these activities of SEK 64.1 million (€7.1 million) in 2009 and SEK 90.4 million(€10.0 million) in 2010 with relatively little additional operating cost.Every four years, Preemraff Gothenburg is completely shut down for turnaround maintenance, which includesinspection of all processing units. The maintenance period typically lasts four to six weeks. The most recent majorturnaround maintenance was in the second quarter of 2007 and the next major turnaround maintenance is scheduled forthe third quarter of 2011.The following table shows Preemraff Gothenburg’s feedstocks and production for the periods indicated below,along with the relevant percentage of total feedstock and production.Thousandbbls %40For the year ended December 31,2008 2009 2010Thousandbbls %Thousandbbls %FeedstocksSweet Crude Oil...................................................................... 40,573 92 35,238 91 40,650 93Sour Crude Oil........................................................................ — — — — 167 —Unfinished and Blend Stocks.................................................. 3,447 8 3,688 9 3,029 7Total Feedstock................................................................. 44,020 100 38,926 100 43,846 100Utilization Rate ..................................................................... 89 77 86ProductionLiquefied Petroleum Gas ........................................................ 1,029 2 742 2 913 2Gasoline.................................................................................. 11,195 27 10,446 28 11,406 27Diesel...................................................................................... 12,857 30 10,104 27 11,883 28