0. Commercial Technology to Convert Group I Facilities to Group II/III Lube Production
PETROTECH: November 1-3, 2010

1. History of Lubricants and Basestocks
Lubricants have been used since ancient times
Petroleum-based lubricants business began in the mid-1800’s
Initial processing was limited to separation by boiling point 1

2. Lube Activity Focused on Group II & Group III Production
Group II and Group III Base Oils are the high growth areas
Demand for improved fuel economy and lower emissions mean lower viscosity/volatility engine oils
Demand for increased equipment reliability
Extended service intervals/fill for life for engines requires both performance and stability
Group II/III plants have Opex advantages versus Group I plants 50
100
150
200
250
1993
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Hydroisomerization Capacity (kbpd)
ExxonMobil
Technologies
Others
Lube Product,( kbpd)

3. Performance Requirements Pushes Quality
Improved fuel economy
Lower Emissions
Longer Life
Better low temperature performance
High temperature performance
Viscometrics
Thermal stability
Soot handling (diesels)
Lower Viscosity
Lower Volatility
Higher Saturates
Lower Pour, Lower CCS
Higher VI

4. Volatility a Driver for Increased VI
Group I / Group II 95 VI 19
Group II+ 17
API SM Max 15
Mid Tier Group III 13
Noack Volatility, Mass%
Top Tier Group III 11 9
GM Proposed Global Spec.
Group IV / PAO’s 7 5 3
3.5 4
4.5 5
5.5 6
6.5 7
7.5 8
8.5
100°C, cSt
API SM 5W30

5. Common Routes for Base Oil Production
Solvent
Extraction
Solvent
Dewaxing
Hydrofinishing
Group I
RHCTM
Group II
RHCTM
Catalytic
Dewax
Hydrofinishing
Group II /III
Distillate/DAO
Fuels
Hydrocracker
Gasoline
& Diesel
Vacuum
Distillation
Solvent
Dewax
Group II
HC Bottoms
Catalytic
Dewax
Vacuum
Distillation
Group II /III
Lube
Hydrocracker
Catalytic
Dewax
Hydrofinishing
Group II / III

6. Process Choice: Blocked or Broadcut?
Blocked: Lube Grades Processed Individually
Pro:
Smaller catalytic equipment
Production to optimum specification for each product
Clear target response to feed change
Con:
Intermediate tankage required between units
More complex operation
Broadcut: Unfractionated Fuels H/C Bottoms or VGO to Lube H/C
Single operation, no stock switch—simpler control
Minimal/no intermediate tankage
Larger catalytic vessels
One grade dictates operating severity—possible overtreating of others

7. Integrated Group I Facilities
Adjust
Viscosity
Hydroprocessing
(RHT or RHC™)
Solvent
Dewaxing
Group II
Group III
Vacuum
Gas Oil
Vacuum
Distillation
Group I
Facilities
Catalytic
Dewaxing (MSDW™ )
Hydrofinishing (MAXSAT™)
Group II
Group III
Atmospheric Resid
Vacuum
Resid
DAO
Improve VI, Reduce Sulfur & Nitrogen, Saturate or Extract Aromatics, Reduce CCR, Remove Metals
Deasphalting
Improve Cold Flow Properties
Convert wax to High VI Lube
Improve Color and Stability, Saturate Polynuclear Aromatics
Remove Asphaltic
Material and
Adjust Viscosity
Extract
Converting Vacuum Gas Oil and DAO to High Quality Lube Base Stocks is a multi-step Process

8. Integrated Route to Base Oils
Group I Integrated into Group II & Group III Lube Plant
Group I
Solvent Plant
Hydroprocessing
(RHT/RHC)
Catalytic
Dewaxing (MSDW)
Hydrofinishing (MAXSAT)
Group II
Group III
Existing
Solvent Dewaxing
Group II
Group III
8 RHC or RHT units in operation or in design
Group I solvent operation improves VI with a yield loss to aromatic extracts
Removal of 3-4 ring aromatic compounds and complex sulfur and nitrogen compounds allows reduction in hydroprocessing severity, hydrogen consumption and associated yield loss
Group III
Group II
Group III
Group II
VI Increase
Aromatic Extract
Base
Conversion to 360-O C Fuels

9. Raffinate Hydroconversion (RHC) or Hydrotreating (RHT) Add Flexibility
Lower investment than grass roots
Maintains use of solvent-based lube facilities and Debottlenecks solvent extraction
Produces high quality Group II & II+ base stocks; also Group III capable
Higher VI, higher saturates, lower volatility, lower sulfur
Improved color and stability
Easily processes full range of viscosity grades
Preserves wax production with solvent dewaxing, or…
May use Catalytic Dewaxing (MSDW) to eliminate solvent dewaxing

10. Maximize Use of Existing Group I Equipment
Fuels
50-70% Yield with VI Uplift
DW: 70-85% Base Oil Yield
RHC™ or RHT
Light Neutral
Lube Vacuum Distillation
Solvent Extraction
Solvent Dewaxing
Medium Neutral
Heavy Neutral
80-98% yield with 3-30 VI Uplift and H2 use of scf/B
High-quality wax with upstream Hydroprocessing
Aromatic Extract

11. Case Studies – Overview
Solvent Extraction Unit (SEU) and Solvent Dewaxing Unit (SDW) Exist to Process a Full Range of Lubes (Can Include Bright Stock)
Flexibility Required to Produce Group II / II+ Lubes
Options:
CASE 1: SEU, RHC and SDW – keep Neutral grades of wax production with improved slack wax quality
CASE 2: SEU, RHT and catalytic dewaxing (MSDW) – maximum production, but no wax product
All Products Produced to 110VI with Addition of RHC or RHT
Solvent Dewaxing and Catalytic Dewaxing (MSDW) Considered

12. Case Studies – Overview (2)
Three Products – 100N/325N/600N
Base Production of 100VI/95VI/95VI
SEU Solvent Ratio Decreased to Increase Overall Production SEU Raffinate produced at 85 VI (DWO basis)
Two Crudes Considered:
Arab Light – high quality crude source example
Urals – low quality crude source example

13. Case Studies – Results
Total Production Maintained with Both Solvent Dewaxing and Catalytic Dewaxing (MSDW) – 110VI Products – by Balancing Process Steps
Large Increase in Extraction Capacity with Reduction in Severity; Substantial Product Rate Increase Possible
VDU Side Streams Viscosity Increased to Meet Constant Product Viscosity
Hydroprocessing viscosity impact differs from solvent processing
Wax Production Increase is Possible When SDW Can Support
Effects are Crude Independent – Relative Changes Consistent for AL and Urals

14. Study Case 1 – Summary of Effects
Impact of RHC Addition with Optimization
To Existing Basic SEU/SDW
100N/325N/600N products
Production Change
Group I Base Case — 100/95/95 VI Products
Base
Ops today
Group II 110 VI Products — Constant SEU Feed Rate and Severity --
Raise VI
Group II 110VI Products — Reduce SEU Severity to 85 VI
First step-recover capacity
Group II 110VI Products—Max SEU Feed to Solvent Limit + Wax production based on SDW +
Increase raffinate to raise base oil & wax production

15. Study Case 2 – Summary of Effects
Impact of RHT Addition with Optimization
To Existing SEU
Replace SDW with Catalytic Dewaxing (MSDW)
100N/325N/600N products
Production Change
Group I Base Case — 100/95/95 VI Products
Base
Ops today
Group II 110 VI Products — Constant SEU Feed Rate and Severity --
Raise VI
Group II 110VI Products — Reduce SEU Severity to 85 VI
First step-recover capacity
Group II 110VI Products — Max SEU Feed to Solvent Limit +
Increase raffinate to raise base oil production

16. RHC is Commercially Proven . . .
First Unit Streamed in 1999 – Ten Years of Consistent Performance
Commercial Sequence of SEU/RHC/SDW (Ketone)
Very Low Catalyst Ageing
EHCTM Group II+ Products Show Excellent Performance in Formulations
Multiple Units Designed and Operating/In-construction
Excellent Flexibility for Complete Slate of Viscosity Grades including Bright Stock
Group III Capable

17. First RHC Unit Streamed in 1999
EHC™ 45
EHC™ 60
40°C
150
200
Pour point, °C
-18 VI
116
114
NOACK Volatility, wt% 14 8
Saturates by Clay Gel, wt% 96 95
Group II+ Production

18. MSDW – Leading Selective Dewaxing Catalyst System
Integrates with RHC/RHT, and Lubes or Fuels Hydrocracking
Waxes Selectively Isomerized to High VI Lube
Highest Lube Product Yield and Low Fuels/Gas Production
Two Reactor Cascade System
Reactor 1: Zeolite Catalyst for dewaxing
Reactor 2: Noble Metal Hydrofinishing Catalyst
Low Hydrogen Consumption
Processes Full Range of Base Stocks
MSDW-2 Life Demonstrated >7 Years in Jurong and > 9 Years with Licensee
MSDW Licensed in 23 Units with 20 Units Starting up from 2002 to 2011
New MSDW Catalyst – Commercialized in 6+ Units Since 2005
ExxonMobil
Technologies
Others

19. MSDW: Leads by . . .
Feed Flexibility from Light Neutral to Bright Stock...Excellent Viscosity Retention
Product Flexibility for Group II and Group III
High Lube Product Yields with Minimum Fuels Byproducts
Excellent Low Temperature Properties of Products
Latest MSDW Shows Higher Activity than Prior Generations, Yet Maintains Exceptional Yield Selectivity, Robust Operation when Faced with Feed Contamination, and Superb Feed Rate Maintenance
No MSDW Load Ever Replaced for Reaching End-of-Cycle Condition, or Because of Feed Contamination Upset
Fully recovers activity after feed contamination upset – including hydro-processed coker gas oil
High tolerance for contaminants in feed: S, N, PNA’s

20. MSDW: Proven Catalyst Stability
ExxonMobil Selective Dewaxing
HDW Catalyst Aging With More Advanced Catalysts
-30
-20
-10 10 20 30
200
400
600
800
1000
1200
1400
1600
1800
2000
2200
2400
2600
2800
3000
3200
3400
Days on Stream, [Day]
Delta Temperature, °C
Cat: MSDW-2
Year 2003
100N,150N,500N, BS
Group II
Feed S < 150 wt ppm
Feed N < 3 wt ppm
LHSV:
Jurong
Year 2000
150N, 500N
Feed S < 50 wt ppm
Feed N < 20 wt ppm
LHSV:
Year 2004
Group II+
Feed S < 10 wt ppm
Feed N < 2 wt ppm
LHSV:
Year 2002
100N,150N
Group III
Feed S < 7 wt ppm
Feed N < 1 wt ppm
LHSV:
Cat: MSDW
Year 2006
70N,150N
Feed S < 30 wt ppm
LHSV:
LHSV:
100N, 150N, 600N
Group II
LHSV:
Year 2007
LHSV:

21. MSDW Will Continue to Improve by . . .
Continuous Development Work to Further Improve Flexibility and Operation. New generations in Development Today to…
Expand already wide range of LHSV operation
Enhance already high tolerance to feed contaminants of S and N
Expand present exceptional operating stability and flexibility for very low pour point products (<-40°C)

22. Catalytic Lube Application of EMRE’s Technologies ... Since 2000
Operating or in Design/Construction
Lube Hydrocrackers 5
RHT or RHC 8
MSDW 23
MAXSAT 18

23. In Conclusion . . .
Adding RHC to Existing Solvent-Based Lube Facilities Raises Lube Quality from a Wide Range of Crude Sources
SEU/RHC/SDW will Produce Group II/II+ Lubes and is Capable for Group III Lubes (All Viscosity Grades)
Adding RHC to Existing Solvent-Based Plant Retains (And May Increase) Wax Production; Improves Wax Appearance Quality
MSDW for the Dewaxing Step May Further Increase Production, will Eliminate Wax Products
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24. THANK YOU !