Gulf Coast Construction Users Council Conference

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Gulf Coast Construction Users Council Conference

• June 24, 2008

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Five Key Project Success Factors

• Safety
• Quality
• Schedule
• Cost
• Local, Minority, Women-Owned Initiative

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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

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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

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Expansion Project Plot Plan
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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

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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

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SETX Industrial / Commercial Workforce Demand
2007-2009

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

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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

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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

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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.

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Recruiting Model
PROJECT OPENINGS
EXTERNAL WEBSITE/HIRING OFFICE
CANDIDATE FILTERING
APPLICANT POOL
CANDIDATE MANAGEMENT SYSTEM
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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