1. Gulf Coast Construction Users Council Conference June 24, 2008

2. Five Key Project Success Factors  Safety  Quality  Schedule  Cost  Local, Minority, Women-Owned Initiative

3. Project Premises  Best-in-class safety, environmental, reliability and cost performance  Lower production cost by taking advantage of economies of scale  Provide flexibility on product and crude slate  Eliminate or reduce current imports and exports of unfinished feed stocks; fill conversion units  Leverage existing refinery and logistics infrastructure; third party crude and product terminals  Utilizes proven technology

4. Project Description  325 MBD Heavy/Sour Full-Conversion Crude Unit Expansion  95 MBD 6-Drum Coker  75 MBD Integrated Hydrocracker/Diesel Hydrocracker  Naphtha Complex  85 MBD Continuous Reformer  50 MBD C5/C6 Isom Unit  50 MBD Cat Feed Hydrotreater  New Sulfur Recovery Unit  146MW Power Generation

5. Expansion Project Plot Plan

8. Project Schedule Summary July 2010 Construction Complete  May 2006Bechtel-Jacobs Joint Venture – Selected as EPC Contractor  September 2007Final Investment Decision - Project Approved  August 2008Design Complete  September 2008Module Delivery Begins  September 2010Commissioning and Startup Complete – Units Online

9. Project Challenges  Skilled Workforce Availability – 5000 to 6000 workers required  Material Delivery Timing  Labor and Material Cost Escalation  Construction in an Operating Facility  Traffic/Security

10. SETX Industrial / Commercial Workforce Demand 2007- 2009 0 5000 10000 15000 20000 25000 30000 Aug-07Sep-07 Oct-07 Nov-07Dec-07 Jan-08 Feb-08Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08Sep-08 Oct-08 Nov-08Dec-08 Jan-09 Feb-09Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09Sep-09 Oct-09 Nov-09Dec-09 Area Continuing WorkElectriciansInsulatorLaborerMillwright Op EngineerPipefitterPlate WelderRebar IronworkerStr Ironworker BoilermakerCarpenterCement MasonPipe WelderTurnarounds Existing Workforce – approx 12-15,000 workers

11. Workforce Challenges  Lack of Skills  Aging Workforce – Baby Boomers  Drug Screening / Fitness For Duty  Youth Flight from Southeast Texas – Jefferson County  High School Dropouts  Housing  Transportation

12. Workforce Development Solution Options  Training programs through partnerships with Texas Workforce Solutions, Lamar State College Port Arthur, City of Port Arthur, BECON  Introduced nationally recognized NCCER curriculum training  Recruitment from non-traditional sources - military  Extensive community outreach  Utilization of quality local contractors  Training of construction new-comers - high schools  Workforce Alliance Initiative  BECON Employment Office  Recruitment of 1300+ trainees through strategy execution  Training of unemployed, under-employed – disengaged workforce

13. Disengaged Workforce Initiative  Initiative partners - Motiva PAR, Motiva CEP, CONEX, Digital Workforce Academy, Becon, and Texas Workforce Solutions  Pilot started in 3 rd Qtr 07  Initiative incorporates  Assessment Test  Life Skills Training  Drug Screening – Rehab/Counseling  Industrial Skills Training  Job Placement  Mentorship / Tracking System

14. Disengaged Workforce Initiative  Provides human development and self-confidence in economically challenged communities in Port Arthur.  Provide services to address the social and developmental needs of low performing and disadvantaged populations.  Build and sustain relationships with the communities with a high percentage of disengaged and disadvantaged populations.  Empower these individuals to become participants instead of victims.

15. Recruiting Model Military Candidate Craftsmen Contractors Targeted Non-Traditional Groups Advertisement Responders Trainees EXTERNAL WEBSITE/HIRING OFFICE CANDIDATE FILTERING CANDIDATE MANAGEMENT SYSTEM APPLICANT POOL PROJECT OPENINGS

16. Summary  Project will result in the Port Arthur Refinery becoming the Largest Refinery in the United States  First new refinery in the U.S. in more than 30 years  Some interesting facts on the project:  Drive more than 50,000 piles  Pour over 260,000 cubic yards of concrete (Batch Plant on site)  Erect 27,000 tons of structural steel  Install over 450 miles of pipe and 1000 miles of cable  Install over 725 pumps, 19 compressors, 500 exchangers, and 4 gas turbines