Our Vision

To be the Top Performing and Most Admired Refinery in Asia

Our Mission
To continuously deliver shareholder value by:
y y y y

Manufacturing and supplying oil products and services that satisfy the needs of our customers Constantly achieving operational excellence Conducting our business in a safe, environmentally sustainable and economically optimum manner Employing a diverse, innovative and results-oriented team motivated to deliver excellence

Our Objectives
We are committed to deliver sustainable excellence in business performance by focusing on the following:
y y y y y y y y

Benefit our shareholders Realise the potential of our people Meet our customer requirements Maximise refinery margins Safeguard asset integrity Deliver structural cost reductions Sustain a robust management system Deliver continuous sustainable Health, Safety, Security and Environmental excellence

Refining Process
Shell Refining Company manufactures a comprehensive range of high quality oil products. General Introduction Refining is the manufacture of petroleum products from crude oil. Refining involves two major branches; separation processes and conversion processes. There are many processes available to the refiner and the final processes chosen is determined by the products required (both quantity and quality) and the crude oil available. Over time changes to either product requirements or available crude oil can result in changes to the refining processes necessary in the refinery. Refinery Products

Shell Refining Company (SRC) produces the following petroleum products:

y y y y y y

Liquefied Petroleum Gas, or "LPG" Propylene Gasoline, or Petrol Jet Fuel, or Avtur Gasoil, or Diesel Sulphur

SRC also produces a number of petroleum components which can either be sold or processed in the refinery. Crude Oil Petroleum products are made from Crude Oil. There are many types of crude oil which come from many different sources around the world. Selection of the right crude oil is a key part of the refining process. The decision as to what crude oil, or combination of crude oil, to process depends on many factors including; quality, availability, volume, and price. Shipping costs (or "Freight") are another important element in crude oil selection and are determined by the size of the cargo and the distance from the supplier to the refinery. Distillation The first stage of crude processing is known as distillation, or fractionation, and occurs in a column known as a Distillation Column. In this process, the crude oil, which is a mixture of many types of hydrocarbons, is boiled and recondensed to separate the crude oil into components based on ranges of boiling points. Components which are heavier are harder to boil and will collect in the lower part of the column. Lighter components are easier to boil and will be collected in the upper part of the column. Very heavy components which are unable to boil will leave from the bottom of the column, in a stream known as residue, while very light components will leave from the top of the column. This stream is known as Liquefied Petroleum Gas, or LPG. Hydroprocessing To meet environmental specifications or to assist is further processing, some components then undergo a process known as hydroprocessing. The objective of this process is to remove sulphur from the component stream.

This process will consume hydrogen to assist in the sulphur removal. The sulphur removed from this process is converted into pure liquid sulphur and is sold to local industry for the production or acid and fertiliser. Reforming/Platforming This process converts a low value component called 'naphtha' into a product known as reformate or platformate. This reformate has a much higher octane number and is used for gasoline blending. This is achieved using a catalyst that contains platinum. Catalytic Cracking This conversion process involves the breaking up of large hydrocarbon molecules into smaller molecules using a combination of heat and catalytic action. The unit at SRC is a Long Residue Catalytic Cracking (LRCC) unit and takes a heavy hydrocarbon stream called Long Residue and converts it into a number of more valuable components and products, including LPG, Propylene and some Fuel Oil components. However, the main product form the SRC LRCC is a gasoline blending component known as Cat Cracked Gasoline (CCG). A by-product of this process is Coke (or carbon), which is burnt to generate steam and electricity. Secondary Treating The refinery also has a number of smaller, so-called "secondary" processes. These are mainly involved with further polishing of components and products to remove sulphur and other impurities. Blending The final stage of the refining process is called blending. This is a crucial step where the various hydrocarbon components manufactured in the refinery are mixed together to make the final products sold by the refinery. The final blend recipes will depend on the quality of the available components and on the customer's requirements, called specifications. All blended products are tested before they are sold to ensure that they meet the customer's specifications. Product Distribution Once the petroleum products are blended and tested they can then be delivered to our customers.

In the case of SRC, the main distribution channels are ship, pipeline, road tanker, and rail car. Refining Process Animation The Refining Process is animated so please be patient while it loads.

Company Background
The Shell Refining Company (Federation of Malaya) Berhad (the Company) was formed in 1960 and is a public listed company with 49% public participation. It operates with state-of-the-art technology and is the key supplier to Shell's Oil Products' businesses in Malaysia.

The Company's oil refinery at Port Dickson produces a comprehensive range of petroleum products, most of which are consumed within Malaysia. In 1999 the Company completed its RM 1.4 billion investment in Malaysia's first Long Residue Catalytic Cracking (LRCC), thereby transforming what was a medium-sized simple refinery into a modern complex refinery capable of processing 125 kbpd (thousand barrels per day). The LRCC has quadrupled the refinery's LPG production and doubled its motor gasoline. It has also enabled the refinery to manufacture propylene for the first time - a highly valued feedstock for the petrochemical industry. The LRCC represents an extremely important commitment to this Company's future. Whilst striving for maximum return to our shareholders, we also believe in giving equal attention to caring for our environment and to contributing to social development in our community. We actively encourage and support diverse wealth creation in the community, the development of new skills and expertise and the transfer of new technologies and best business practices to this country. We take pride in being a dependable and trusted participant in community initiatives and a caring and thoughtful neighbour. Shell in Malaysia has been at the forefront of advocating the adoption of sustainable development by all industries in Malaysia. A sustainable future begins with our carefully planned investments today, which ensure that we do not harm our environment and inhibit our children from developing and prospering as we wish to ourselves.

CORPORATE INFORMATION

y y y y y y y y y y y

Principal Activities: Refining and Manufacturing of petroleum products Incorporated in Malaysia on 19 Sept 1960. Listed on the Main Board of Kuala Lumpur Stock Exchange on 29 Oct 1962. Currently with 49% Malaysian public participation. Paid up capital of RM 300 million (USD 1 = RM 3.80). Turnover of RM 7.5 billion (as per 2004 audited accounts). ROACE: 36% (as per 2004 audited accounts). In 1999, completed its RM 1.4 billion investment in Malaysia s first Long Residue Catalytic Cracker (LRCC). Provides employment to some 280 Malaysians in Port Dickson. Company Intelligence: Shell

y y y y y

Shell | Strategy and Financial Highlights Information from ICIS

Edited from: strategy and website Shell states that 2008 was one of extraordinary global economic turbulence, with the economic downturn expected to bite deeper in 2009. As Shell, we depend on making the right long-term investments against a range of business assumptions. Such market

volatility tests our resolve and our strategy, says chairman, Jorma Ollila.

y y

Its downstream businesses of oil products and chemicals experienced a particularly tough latter part of the year in 2008 with demand sliding as a result of the global economic crisis. Based on its strategy of more upstream, profitable downstream will continue to remain a key focus in 2009 and beyond. The company believes that when the economic crisis passes, global demand for energy will continue upward as populations grow and living standards rise; supplies of easy-to-access oil will struggle to keep pace with demand; and an increasing use of fossil fuels will drive up emissions of carbon dioxide (CO2). The global long-term challenge for Shell remains on how to produce more energy and less CO2. Shell will work to improve energy efficiency at its refineries and chemicals plants, and it will develop more efficient fuels and lubricants. Technology remains central to Shells efforts to produce more oil and gas and to turn them into everyday products. The companys spending on research and development has also increased as it develops new technologies to unlock difficult resources, such as oil sands too deep to mine and gas heavily contaminated with sulphur. It is also looking at biofuels as a fuel for the future. Looking ahead, the company expects a net capital investment (net capital investment represents capital investment, less divestment proceeds) of $3132bn in 2009. The credit crisis and volatile commodity prices that emerged in the second half of 2008 affected many aspects of the business environment. Many of these effects will probably continue or increase with potential impact on Shells partners, customers and suppliers. The company will continue to manage its exposures as well as costs carefully while maintaining its long-term strategy. Shell chemicals strategy Shell chemicals companies have been following a consistent strategy since the late 1990s, delivering bulk petrochemicals to large industrial customers, through simpler organisational structures and at the lowest total delivered cost. While new market opportunities lie in the Asia Pacific region, demand in the established markets of Europe and North America remains considerable. It will continue to invest and maximising its key assets, with a particular emphasis on strengthening reliability, and taking advantage of the stronger links between chemical manufacturing and oil refining operations. In Asia Pacific and the Middle East its sights are set on growth. A joint share in the $4.3bn complex at Daya Bay in south east China gives Shell a major financial stake in the Chinese market.

y y

y y

y y

y y

y y

y y y y

y y y y

y y

y y y y y y y y

Further expansion in the region is targeted with the expectation that, by 2010, 35% of all capital assets will be in Asia Pacific and the Middle East. ICIS Chemical Business magazine has unveiled the ICIS Top 100 Chemical Companies, with rankings based on 2008 sales. A PDF of the ICIS Top 100 Chemical Companies is available for download on ICIS connect. See the article and analysis of the ICIS Top 100 on ICIS news.

Strategies of Shell Company Essay Shell Business Report

To: Jeroen van der Veer, Chief Executive, Royal Dutch Shell From: A. Businessperson Date: 13th February 2006 Subject: Review and evaluation of Shells strategies This report considers the current strategies of Shell (name used by convention to refer to Royal Dutch Shell) and evaluates their success.

1. Shell - Overview of current strategy

The current strategy at Shell is focused on three core issues (Shell 2004a):
y y y

a. Increased upstream activity (i.e. exploration and extraction) to deliver profits downstream b. Improving operational performance and returns in all Shell businesses c. Ensuring Shell s culture is Enterprise First : as an employee, you are only useful if you look at Shell as one enterprise you should serve the objectives of that enterprise first and not your own (Schuk 2005). The following sections look at how elements of strategy address these aims.

2. Strategy areas
a. Corporate strategy Shell s corporate strategy is led by 8 principles, reviewed in 2005 for the first time since 1997 (see Appendix for current list). The latest principles focus on increased corporate social responsibility (CSR), sustainable development and post 9/11 security.
y y

Enterprise First ties in with Principle 1, which is profit-focused Improved performance in all Shell businesses is more specific than any of the principles, as is upstream activity for downstream profit: both loosely relate to Principle 1.

Portfolio Shell has a broad portfolio of activities including:

y y y y y

oil production (core business) oil-related businesses (petrol stations, exploration and production, oil by-products) wider energy-related operations (LNG or liquefied natural gas, renewable energy) shipping (transportation and consultancy for e.g. governments) credit cards

The Boston Consulting Group (BCG) matrix helps analyse the portfolio according to market share and level of investment (see over).