Blue Dolphin Energy Company · OTC:BDCO
Blue Dolphin Energy — Conference Presentation (2012)
14 slides from Blue Dolphin Energy's conference presentation, 2012
Slide 1: Start Up of a Small Refinery to Process Eagle Ford Production
START UP OF A SMALL REFINERY TO PROCESS EAGLE FORD PRODUCTION Herb Whitney Lazarus Energy
Slide 2: Cautionary Statements
Cautionary Statements Forward Looking Statements: Certain of the statements included in this document, which express a belief, expectation or intention, as well as those regarding future financial performance or results, or which are not historical facts, are “forward-looking” statements as that ter
Slide 3: Lazarus Energy Overview
LAZARUS ENERGY OVERVIEW
Slide 4: Lazarus Energy, subsidiary of Blue Dolphin Energy
Subsidiary of Blue Dolphin Energy Co. • Company based in Houston, Texas • Acquired Nixon Refinery in June 2006 • Approx. 50 employees
Slide 5: Nixon Refinery
NIXON REFINERY • Refinery located near Nixon, TX • 50 miles SE of San Antonio and 110 miles north of Corpus Christi • Built in 1980 primarily for jet fuel production • Idle since 1993 • 15,000 BPD capacity • Major Units: – Crude distillation – Naphtha splitter – Merox unit – Bender Unit – ~265,000 b
Slide 6: Crude Supply
CRUDE SUPPLY • Pipeline Access – Koch Pipeline: Access, Quality • Local Crudes: Availability 2006-2010, Quality, Financing, Competition • Eagle Ford – 2011 Availability – Increased Competition: Pipelines, Local – LLS/WTI Differential – Transportation: Truck Only
Slide 7: Start Up: Supply and Joint Marketing Agreements
START UP • Supply Agreement – Late 2011 – Guaranteed supply of crude – Construction financing • Joint Marketing Agreement – Crude payments – Repayment of construction financing – Profit sharing – Back office support
Slide 8: Start Up
START UP • Limited start up February 2012 • Normal start up issues • New personnel-training • Identify potential customers • Past contacts • Initial production – 1000 to 2000 bpd (average – based on batch) – Product quality – Crude quality
Slide 9: Start Up: Ramp Up Production
START UP • Ramp up production –End of February at 7000 bpd • Attractive pricing initially
Slide 10: Product Marketing
PRODUCT MARKETING • Local market opportunities – Diesel low sulfur NRLM. feedstock – Small refiner – Naphtha blending, feedstock – VGO feedstock, blending • Houston and Corpus Christi markets • New market entrant – Volumes already committed
Slide 11: Product Marketing
PRODUCT MARKETING • Reliability – History – Small refiner • Quality – Testing • Logistics – Truck only – Access to water limited
Slide 12: Product Marketing
PRODUCT MARKETING • Truck traffic – Scheduling and coordination – 60 to 70 trucks per day
Slide 13: Possible Future Opportunities
Possible Future Opportunities • Increase capacity – 15,000 plus bpd – Unit modifications • Pipeline connections; crude and products • Marine access – Corpus Christi – Victoria – Other
Slide 14: Possible Future Opportunities
Possible Future Opportunities • Gasoline blending –San Antonio market –Components availability • Jet Fuel –Modifications minimal –DESC contracts
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