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Gulf Coast Construction Users Council Conference

Gulf Coast Construction Users Council Conference. June 24, 2008. Five Key Project Success Factors. Safety Quality Schedule Cost Local, Minority, Women-Owned Initiative. Project Premises. Best-in-class safety, environmental, reliability and cost performance

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Gulf Coast Construction Users Council Conference

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  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

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

  7. 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

  8. SETX Industrial / Commercial Workforce Demand 2007-2009 30000 Existing Workforce – approx 12-15,000 workers 25000 20000 15000 10000 5000 0 Jul-08 Jul-09 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Jan-08 Jun-08 Jan-09 Jun-09 Feb-08 Mar-08 Feb-09 Mar-09 Aug-07 Sep-07 Nov-07 Dec-07 Aug-08 Sep-08 Nov-08 Dec-08 Aug-09 Sep-09 Nov-09 Dec-09 May-08 May-09 Area Continuing Work Electricians Insulator Laborer Millwright Op Engineer Pipefitter Plate Welder Rebar Ironworker Str Ironworker Boilermaker Carpenter Cement Mason Pipe Welder Turnarounds

  9. 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

  10. 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

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

  12. 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.

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

  14. 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

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