1. © 2009 KBR. All Rights Reserved. Advanced Chemical Engineering Overview and Capabilities

2. © 2009 KBR. All Rights Reserved. Presentation Outline ♦Portfolio Overview ♦Areas of Applications ♦Applications Benefits ♦Why KBR? ♦Overview  Dynamic Simulation  OTS  APC ♦Summary

3. © 2009 KBR. All Rights Reserved. Portfolio Overview Advanced Services Dynamic Simulation Computation Fluid Dynamics Logistics Simulation Liquid Transient Analysis Technical Data Support Technology Operations Advanced Chemical Engineering Advanced Solutions Operator Training Simulator Advanced Process Control Real-Time Optimization Alarm Rationalization Manufacturing Execution Systems

4. © 2009 KBR. All Rights Reserved. Areas of Applications Front End Design Troubleshooting Dynamic Simulation Liquid Transient Analysis CFD Pinch Analysis Operator Training Simulators Advanced Process Control Alarm Rationalization Real Time Optimization EPC Commissioning & Startup Operation & Maintenance

5. © 2009 KBR. All Rights Reserved. Applications Benefits ♦Resolution of complex design & field problems ♦Provides hands-on training for smooth startup, shutdown and normal operation ♦Faster plant commissioning ♦Ensures safe operations ♦Increased plant reliability & availability ♦Optimizes operations – production, energy use, emissions ♦Minimize CAPEX & OPEX 1 day to 1 week production gain per year ($0.5MM - $10MM)

6. © 2009 KBR. All Rights Reserved. Why KBR? ♦Intimate knowledge of process and operations ♦Specialized and experienced execution team ♦Depth of talent pool within the organization  plant services, start-up/commissioning teams, machinery, etc ♦Attention to detail and quality ♦Open and transparent communication channel ♦One stop solution provider

7. © 2009 KBR. All Rights Reserved. Advanced Chemical Engineering Dynamic Simulation

8. © 2009 KBR. All Rights Reserved. What is Dynamic Simulation? Dynamic Simulation tracks the real behaviour of a process or whole plant over time. Steady State Simulation (Picture) Dynamic Simulation (Movie)

9. © 2009 KBR. All Rights Reserved. Why Dynamic Simulation? ♦Robust Design for the Full Range of Operation  Startup, shutdown, restart, load variation and other non- steady state operations  Minimize design margins  Verify control systems ♦Driven by Industry Demand  Larger and complex systems  Reliability, availability, operability and performance optimization  Optimal design of flare and relief systems  Improve on past experience

10. © 2009 KBR. All Rights Reserved. Dynamic Simulation Applications in KBR ♦Ammonia  Utilities – Flare and Steam  Control System ♦Ethylene  Furnace Control  Utilities – Flare, Steam and Fuel Gas  Compressors ♦Petro-Chemicals  Reactor Depressuring ♦Refining Facilities  Utilities – Flare, Steam and Fuel Gas ♦LNG and Offshore  Compressor Studies  Control System Verification  Utilities – Flare, Steam, Fuel Gas ♦Equipment Specific  Heat Exchangers  Vessels

11. © 2009 KBR. All Rights Reserved. Dynamic Simulation – Model Validation ♦Refrigeration Compressors  Surge control ♦Overall Process Responses  Plant Turndown

12. © 2009 KBR. All Rights Reserved. What Does a Dynamic Model Look Like?

13. © 2009 KBR. All Rights Reserved. Dynamic Simulation of Ethylene Furnace Yield Model from Team Ethylene Pre-cracking in Cross-Over Different Feedstock Two-Phase Heat Transfer & Pressure Drop Pass-by-Pass Variation Steam Decoke Flue Gas - Control of Firing, Excess Oxygen, ID Fan

14. © 2009 KBR. All Rights Reserved. Dynamic Simulation - Relief & Flare Systems ♦ Refinery Expansion  Adequacy of relief & flare system design  Relieving sequence  HIIPS Validation

15. © 2009 KBR. All Rights Reserved. Advanced Chemical Engineering ♦Advanced Automation – Plant Operations Support  Operator Training Simulator (OTS)  Advanced Process Control (APC)  Real Time Optimization (RT-OPT)  Manufacturing Execution System (MES)  Alarm Rationalization and Management (ARM)

16. © 2009 KBR. All Rights Reserved. Advanced Chemical Engineering Operator Training Simulator

17. © 2009 KBR. All Rights Reserved. What is OTS? Plant Dynamic Model of the Plant DCS Consoles

18. © 2009 KBR. All Rights Reserved. OTS Key Features ♦Stand-alone system not connected to plant DCS ♦Duplicates the look and feel of the real plant DCS and Control System ♦Rigorous, high fidelity modeling of all process and logic functions ♦Uses best-in-class commercial OTS software with standard library and custom dynamic models ♦Extensive standard exercises and malfunctions ♦Multiple Initial states for comprehensive training ♦User friendly, modular design

19. © 2009 KBR. All Rights Reserved. OTS Capabilities ♦Ability to simulate a wide range of operations from full cold start to normal operations ♦Instructor led and Instructor less training ♦Practice DCS, field & panel operations ♦Suitable for initial training of new operators and on-going skill retention for experienced operators

20. © 2009 KBR. All Rights Reserved. OTS: Recent Projects ClientsProcessYear Pequiven PNAmmonia2011 (Awarded) Pequiven JoseAmmonia2010 (Awarded) Saudi KayanPhenol2009 (Potential) Pequiven MoronAmmonia2009 (Ongoing) SkikdaLNG2009 (Started) EBICAmmonia2007 TangguhLNG2007 BFPLAmmonia2006 SeagasLNG2005 SasolSuperflex2004 JUPCEthylene (Hot Side only)2003 DSMAmmonia2002 CNCAmmonia2001 PCS 01, 02 04Ammonia1997 - 2000 All Existing ClientsSeveral Upgrade projectsOngoing

21. © 2009 KBR. All Rights Reserved. OTS: Recent Projects

22. © 2009 KBR. All Rights Reserved. Advanced Automation Examples Advanced Process Control

23. © 2009 KBR. All Rights Reserved. What is Advanced Process Control? ♦STABILIZE unit operation - minimize variability of key process variables ♦PUSH to constraints - reach closer to the product quality and equipment limitations ♦OPTIMIZE - minimize energy consumption or maximize plant throughput $$$ Poor Control (without APC) Better Control (with APC) Original Setpoint New Setpoint Product Specification Optimized Setpoint

24. © 2009 KBR. All Rights Reserved. KBR APC Experience & Benefits ♦Pemex Tula & Salina Cruz Refinery FCC’s  Benefits estimated at nearly $1,000,000 / year for each application ♦Westlake Ethylene Plant  Benefits from C2 Splitter control estimated at $190,000 / year ♦Hyundai Ethylene Plant  Benefits estimated at over $500,000 / year ♦DSM Ammonia Plant  1% Reduction in energy consumption ♦CFL Ammonia Plants (2)  1-2% Increase in production

25. © 2009 KBR. All Rights Reserved. Advanced Process Control - Ammonia In general, the benefits of implementing a APC system in an ammonia plant are: an increase in the ammonia throughput by 1 to 4%, decrease in the energy consumption by 1 to 3%

26. © 2009 KBR. All Rights Reserved. Advanced Process Control - Ethylene observation ( Ethane - ppm) range BEFOREAFTER

27. © 2009 KBR. All Rights Reserved. Advanced Process Control - Benefits ♦FCC Unit (Mexico)  Improvement in converter operation from Better conversion Closer operation to constraints  Benefits of over $1,000,000 / year from increase in production of higher value products

28. © 2009 KBR. All Rights Reserved. Summary KBR Technology Client Support Services Advanced Services & Solutions Proprietary Technologies

29. © 2009 KBR. All Rights Reserved. Thank you very much… Questions?