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NON-MAN ENTRY CRUDE TANK CLEANING AND HYDROCARBONS RECOVERY SYSTEM Designed for all sizes and types of storage tanks

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NON-MAN ENTRY CRUDE TANK CLEANING AND HYDROCARBONS RECOVERY SYSTEM Designed for all sizes and types of storage tanks

• ARKOIL Technologies developed and implemented its exclusive system for all types of storage tanks cleaning and hydrocarbons recovery in oil and petrochemical industries

• In 2002 ARKOIL was founded with the aim of supplying non-man entry crude tank cleaning services• For many years of professional experience within the different challenging regions “ARKOIL System” is

able to perform the most difficult projects regardless technical complexity, deadlines or weather conditions• ARKOIL’s service lines:

• Non-man entry storage tanks cleaning and hydrocarbons recovery• Oil sludge treatment & soils cleaning• Stoppage, containment of oil spills & clearing of oil-contaminated open & ground waters• Liquidation of inveterate underground oil seepages

About Us

2 ARKOIL Technologies Nederland B.V. – Innovative tanks cleaning system

ARKOIL System

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• Technology is based on transformation of steam energy and application of special tank cleaning nozzles• More than 1.000 (one thousand) of crude tanks have been cleaned by ARKOIL system• ARKOIL System is developed to operate in potentially hazardous zones• The System can be tailored to customers' any special needs and/or requirements• Size of tanks can reach up to 200.000 m3, with fixed or floating roofs. The total amount of accumulated

sludge is unlimited• ARKOIL Technologies has a very considerable experience in cleaning of damaged tanks

• Low level of Quality, Health, Safety,Environmental standards

• High risk of fatality accidents• Financial losses due to non-recovered oil• Logistic costs• Oil sludge utilization costs• Potential damage to the shell, roof and

coating• Unreasonably expended time terms• Low quality of a final result• This method is unadvisable to be used for damaged tanks cleaning

Main Disadvantages of the Conventional Cleaning

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Advantages of ARKOIL Non-Man Entry System

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• ALL TYPES of tanks, roofs & crude• The highest HSE standards: non-man entry, no

emission, no chemical or additional crude used, norisk of explosion

• Increasing efficiency of tank cleaning anddesludging processes: cleaning & recoveryperformed simultaneously

• Almost 100% of oil recovery• Tanks cleaning excludes damar to the shell, roof

and coating, if any• The system requires for several times less

time-terms than a conventional method• Minimal quantity of solid sediments to be utilized• Complete neutralization of pyrophoric compounds• No weather or seasonal restrictions

Technical Specifications

ARKOIL Process Modules Power Capacity Performance Capacity Leangth m Comments

Office/workshop container 4 kW N/A 6 -

Auxiliary storage container 1 kW N/A 6 -

Steam Generator 5000 kg/hr 15,00 kW Up to 16 Bar N/AFresh water: 5 m3/hr without reuse of condensate. Fuel: 400 l/hr

Steam Delivery Flexable Pipeline N/A Up to 16 Bar 100-150 meters D120-20 mm

Steam Delivery Fixed Pipeline N/A Up to 16 Bar - -

Main Suction Module / ATEX zone 2 11,00 kW - 32,00 kW 50-150 m3/hr N/A -

HC Recovery & Skimming Module N/A N/A N/AInstalled instead of the side manhole cover

Tank cleaning nozzles N/A N/A N/A 4-15 pieces

Hydrocarbons Recovery Line N/A 50-150 m3/hr N/A D150 mm

Power Generator Fuel: 10-12 l/hr 45 KVA N/A -

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Fig. 1 Mobilization and Steaming

Implementing of ARKOIL System: How it Works

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Implementing of ARKOIL System: How it Works

Fig. 2 Separated fractions & HC recovery

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Work flows

DESCRIPTION OF OPERATIONS1

Mobilization. Equipment set up, energy/steam supply arrangements in accordance with po-tentially hazardous zones regulations. Depending on the tank’s diameter the required number of nozzles installed via the roof - 5 daysSteaming. Steam is supplied through tank cleaning nozzles directly into sludge. Steaming process continues until all sludge has been liquefied and separated into three fractions: oil, water and solid sediments. Operators constantly manage speed of steam supply and storage tanks' surface temperature (+/- 55C°). Exact duration of steaming depends on sludge quantity and composition - 14 daysHydrocarbons (HC) Recovery: HC are pumped directly to the pipeline or holding tank – 5 days2

Condensate drain: water is drained into the sewage or the same tank. No special water treatment is required and it can be treated internally - 2 daysVentilation: After the water drain, manholes should be opened to vent the tank. Once the tank atmosphere has been approved by a safety manager, personnel are admitted to enter. Final Cleaning: At this stage no sludge left in the tank, only a layer of oil-contaminated solid sediments on the bottom. Roof, shell (coating) and legs are clean ideally and oil-free. Approxi-mate quantity of sediments is 50-150 m3 in large tanks with capacity more than 50,000 m3 - 15-20 days Total for large storage tanks: around 40-50 days RESULT: TANK IS READY FOR MAINTENANCE AND HOT WORKS.

1 2

Example: 100.000 m3 crude oil tank with 5.000 m3 of oil sludgeDepends on technical ability of a refinery/terminal to accept the recovered hydrocarbons

STEAMING

HC RECOVERY

FINAL CLEANING

MOBILIZATION

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Recovery Calculation and HC Quality

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CONTENT OF HYDROCARBONS RECOVERED, %

• Hydrocarbons – 99.94%• Water – None• Sediments– 0.06%

RECOVERY CALCULATION1

• 97% recovery = 4,850 m3 (approx.30,555 bbl.) = 2,933,280 USD2

1 5.000m3 of the oil sludge

2 Price is for 1 bbl. of Brent Crude Oil (ICE), June 6, 2013 and 10% discounted due to a price floatation (107USD @ 90% = 96 USD)

Certification

• All our products are fully compliant with oil industry regulations and ARKOIL Non-Man EntryCrude Tank Cleaning System is designed and constructed to operate in potentially hazardous areas &environment

• ARKOIL System is certified (ISO 9001, ISO 14001, GOST-R, VCA**, OHSAS 18001) to ensure thehighest HSE standards and continuous improvements in serving our clients worldwide

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Customer Cases (selected)

NN Project, Date Date Capacity Sludge, m3 Result Client Location1 Crude Tank DAMAGED 2,200m3 96% oil recovery Zeeland Refienry The Netherlands2 Crude Tank 2,111m3 97% oil recovery Saratov Refinery Russia3 Crude Tank 10,000m3 97% oil recovery Omsk Refinery Russia4 Crude Tank DAMAGED 1200m3 97% oil recovery NK Refienry Rosneft Russia5 Crude Tank 6000m3 97% oil recovery Lukoil Refinery Russia

1,035m3 97% oil recovery Lisichansk Refinery Ukraine70,000m3 95% oil recovery Lukoil Refinery Russia14,500m3 97% oil recovery GazpromNeft Refinery Russia

6 Crude Tank DAMAGED

7 Crude Tanks

8 Crude Tank

9 Crude Tank 97% oil recovery GazpromNeft Refinery Russia10 Crude Tank

June 13Dec 12June 11 June 11 May 11May 10

Jun-09/Jan-10Feb 10

June 09 Nov 09 97% oil recovery Saratov Refinery Russia

11 Crude Tanks DAMAGED Oct 09

8,860m3 1,000m3 1,000m3 Ready for hot works OrenburgNeft Russia

CommentsCrude escaped onto the roof. Damaged legs

Bottom exit corrosion

Bottom exit corrosionTanks had not been cleaned almost 50 yearsOutside tem up to -35C° -Only 50 m3 of sand removed manually Two tanks after explosion with fallen roofs

12 Crude Tank Dec 08 10,000m3 97% oil recovery Moscow Refinery Russia13 Crude Tank Apr 08 97% oil recovery Omsk Refinery Russia14 Crude Tank DAMAGED Oct 07 95% oil recovery Omsk Refinery Russia15 Crude Tank DAMAGED July 07 97% oil recovery Omsk Refinery Russia16 Crude Tank Nov 06 96% oil recovery Omsk Refinery Russia17 Crude Tank DAMAGED July 06 96% oil recovery Moscow Refinery Russia18 Crude Tank DAMAGED Feb 06

80,000m3 50,000m3 50,000m3 20,000m3 20,000m3 50,000m3

10,000m3 x 14 50,000m3 20,000m3 10,000m3

5,000m3 x 2 50,000m3 50,000m3 50,000m3 50,000m3 20,000m3 10,000m3 20,000m3

12,000m3 5,000m3 5,600m3 200m3

1,000m3 4,100m3 97% oil recovery Perm Refinery Russia

-Tank cleaned in 45 days10 m3 of crude were boiled to the roof Damaged and fallen pontoon, perforated floor Tank cleaned in 20 daysTank with fallen-in floating roofTank with fallen-in and flooded pontoon (70%)

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--

-

FAQ

NN Project, Date Date Capacity Sludge, m3 Result Client Location Comments1 Crude Tank DAMAGED июн.13 80,000m3 2,200m3 96% oil recovery Zeeland Refienry The Netherlands Crude flooded on roof and damaged legs2 Crude Tank дек.12 50,000m3 2,111m3 97% oil recovery Saratov Refinery Russia3 Crude Tank июн.11 50,000m3 10,000m3 97% oil recovery Omsk Refinery Russia4 Crude Tank DAMAGED июн.11 20,000m3 1200m3 97% oil recovery NK Refienry Rosneft Russia Bottom exit corrosion5 Crude Tank май.11 20,000m3 6000m3 97% oil recovery Lukoil Refinery Russia6 Crude Tank DAMAGED май.10 50,000m3 1,035m3 97% oil recovery Lisichansk Refinery Ukraine Bottom exit corrosion7 Crude Tanks (14) Jun-09/Jan-10 10,000m3 x 14 70,000m3 95% oil recovery Lukoil Refinery Russia Tanks had not been cleaned almost 50 years8 Crude Tank фев.10 50,000m3 14,500m3 97% oil recovery GazpromNeft Refinery Russia Outside tem up to -35C9 Crude Tank июн.09 20,000m3 8,860m3 97% oil recovery GazpromNeft Refinery Russia10 Crude Tank ноя.09 10,000m3 1,000m3 97% oil recovery Saratov Refinery Russia Only 50m3 of sand removed manually11 Crude Tanks (2) DAMAGED окт.09 5,000m3 x 2 1,000m3 Ready for hot works OrenburgNeft Russia Two tanks after explosion with fallen roofs12 Crude Tank дек.08 50,000m3 10,000m3 97% oil recovery Moscow Refinery Russia13 Crude Tank апр.08 50,000m3 12,000m3 97% oil recovery Omsk Refinery Russia Tank cleaned in 45 days14 Crude Tank DAMAGED окт.07 50,000m3 5,000m3 95% oil recovery Omsk Refinery Russia 10m3 of crude were boiled to the roof15 Crude Tank DAMAGED июл.07 50,000m3 5,600m3 97% oil recovery Omsk Refinery Russia Damaged and fallen pontoon, perforated floor16 Crude Tank ноя.06 20,000m3 200m3 96% oil recovery Omsk Refinery Russia Tank cleaned in 20 days17 Crude Tank DAMAGED июл.06 10,000m3 1,000m3 96% oil recovery Moscow Refinery Russia Tank with fallen-in floating roof18 Crude Tank DAMAGED фев.06 20,000m3 4,100m3 97% oil recovery Perm Refinery Russia Tank with fallen-in and flooded pontoon (70%)

NN QUESTION ANSWER

1 Do you use any chemical solutions in the cleaning?No. It helps to keep the technology green and environmentally friendly. Moreover, it helps to avoid any damage to pipelines and/or other facilities

2 Why do you claim your technology can help in fixingdamaged tanks?

The system does not require any staff presence inside the tank during cleaning and recovery stages. The process is safe and explosion-proof

3Can the recovered oil be pumped into existing tankwhich is in service, or it must be pumped into anotherholding tank? This is during the sludge recovery period.

There is no restrictions to deliver oil into an operating tank. There is no need to isolate a tank and treat it as a holding one. Recovered HC can be delivered to another crude tank which is operating 24 hours per day (during day and night shifts)

4 What is the category of steam required? MP4? could youplease explain what MP4 means?

Steam parameters: quantity 2-5 t/hr (depends on tank's storage capacity), temp.+150C°

5 Does ARKOIL tank cleaning technology require to drillnew holes on top of tank roof, or you can use existing holes?

No, the system does not require to do this. This is one of the advantages of the technology to avoid damage to the shell or roof

6How are the oil and water layers drained after being separated? Is there any need to weld new eruptions in the tank shell?

New eruptions are not required as water and oil are pumped out from the existing sump/water drain-off or side manhole of the tank.

The solid sediments are removed manually but the quantity of these sediments is minor (around 50-150 m3).

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How is the last part of solid sediments being removed?7

FAQ

NN QUESTION ANSWER

8

What is the indoor temperature at steaming stage? We are concerned that the required steam temperature at +150C° will disintegrate the primary seals of the floating roof, which have the maximum temperature of +90C°

The temperature at the level of seals reaches +60C°- 70C°

9

The ambient temperature in our region is higher (about +30C°) than the ambient temperature in The Netherlands (about +5 - 20C°). Will this cause more vapour to be emitted when the peripheral seals are opened for insertion of the tank cleaning nozzles by the engineer?

The vapour emission due to the opening of the seals for insertion of the tank cleaning nozzles is insignificant. We have positive experience of working in regions with air temperature around +50C°

10

We are concerned that the recovered product will contain water (condensed) and hydrocarbons mixture, and the presence of water will inflate the final recovered volume of hydrocarbons. Moreover, the transfer of the recovered emusification containing oil and water into a holding tank might reduce the quality of crude oil?

During the recovery stage only hydrocarbons are recovered (99.94%). Only at skimming stage there can be some unconsiderable volume of water in the mixture of hydrocarbons but even this can be excluded. The water left will never deteriorate crude oil in the holding tank. The process of recovery & skimming is being closely monitored by the client though constant sampling of the recovered product

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Our mission

• ARKOIL Technologies Nederland B.V. is the professional oil-service firm. We are a network of practices,which allows us to deliver outstanding, consistent services wherever our clients operate

• We are focused on delivery of maximum value to our clients wherever in the world they do business. Weachieve this by paying close attention to our clients’ needs, fully deploying our resources and industry-specific experience to develop required solutions

• Our goal is to build the premier storage tanks maintenance firm, not only in order to provide services tonational clients but also to develop a dynamic practice serving our international clients. Local andexpatriate specialists work closely together, as mixed teams ensure the right balance of skills forproviding premium client service. As evidence of our commitment to the energy sector, we are keen onsetting up offices “on the ground” to serve our clients in key locations

• In addition, we place great emphasis on industry andservice line specialization. We have establishedspecialized industry practice groups for oil andpetrochemical sectors

• We believe that our dedicated professionals with strongindustry expertise are best equipped to tackle these issues,as well as point out planning opportunities that can lead toenhanced operational and financial performance and offera variety of creative ideas to help to maximize yourbusiness efficiency

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Questions are welcomed

© 2015 ARKOIL Technologies Nederland B.V. ALL RIGHTS RESERVED

ARKOIL Technologies Nederland Weena 2903012 NJ RotterdamThe NetherlandsTel: +31 (0) 20 301 21 28 Fax: +31 (0) 20 301 22 02www.arkoiltech.com [email protected]

Abu Dhabi BranchPO Box 127432Office 38 - Floor 20 Al Wahda City TowerHazaa Bin Zayed The First Street Abu Dhabi, UAE Tel/fax: +971 2 818 67 66 www.arkoiltech.com [email protected]

(Representative office) PO Box 893833-Office HAlmas Tower, JLTDubai, UAE Tel: +971 4 431 20 69 www.arkoiltech.com [email protected]

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