Reficar Cartagena Refinery Expansion, Colombia - EKN

access to the Gulf Coast and Caribbean markets via the Atlantic Ocean, as well as to the
1101335.000 04F1 0611 MJ21
5
June 21, 2011
national Colombian market by river through the “Canal del Dique” and via existing pipelines.
The refinery was inaugurated in 1957 by the International Petroleum Company and was
acquired by Ecopetrol in 1974. It has undergone some previous expansions to grow from its
initial capacity of 26,000 bpd, including expansions in 1962 (33,200 bpd), 1964 (42,000 bpd),
and some after the Ecopetrol acquisition (up to the present approximately 80,000 bpd). The
current refinery uses a mix of 85% Colombian and 15% imported crude, while exporting about
47% of its product mix. The average product yield of the existing refinery (during the year
ending March 2008) included: gasoline (33%), diesel (27%), fuel oil (24%), jet/kerosene (8%),
light ends (4%), and slurry (2%).
Reficar intends to modernize the refinery and expand its refining capacity from 80,000 to
165,000 bpd; products will be distributed to the Colombian domestic market and to international
markets. The modernization of the refinery will include an increase in the facility’s complexity,
which will enable it to process a less expensive mix of crude (heavier, more acid) while
producing low-sulfur gasoline and ultra-low sulfur diesel, jet fuel, and fuel oil that will meet
new domestic and international clean-fuel requirements (e.g., sulfur content for the domestic
market: not higher than 300 ppm for gasoline and 50 ppm for diesel, and for the export market:
< 30 ppm for gasoline and < 8 ppm for diesel). The new configuration, including
hydrocracking, hydrotreating, catalytic reforming, and coking capacity, will enable the refinery
to handle up to 90,000 bpd of acidic crudes. This will provide a competitive advantage, because
most refineries can process only small quantities of such corrosive crude oils, and will allow
Colombia to better use its domestic oil reserves. The new products will include ultra-low-sulfur
gasoline, jet fuel, and diesel.
Reficar has entered into a contract with Technip for the basic design and engineering of the
upgrade and expansion, and into an EPC Contract with CB&I. During the expansion, Ecopetrol
will continue to operate the existing refinery under a mandate agreement, with the economic
benefit of such operation belonging directly to Reficar. After the expansion is complete, Reficar
will take over full management and operation of the entire refinery.