INTELLIGENCE HANDBOOK EXPORT REFINING CENTERS OF THE WORLD

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86T00608R000500110007-9
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 44
• Document Creation Date: December 15, 2016
• Document Release Date: August 18, 2003
• Sequence Number: 7
• Publication Date: June 1, 1975
• Content Type: REPORT

 Approved For Release 3i69y
9 C1A 68 Td60CR0005D'0110007!9
]intelligence Handbook
Export Refining Centers of the World
A (ER) 75-66
June 1975
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This publication is prepared for the use of U.S. Government
officials. The format, coverage, and contents of the publi-
cation are designed to meet the specific requirements of
governmental users. All inquiries concerning this document
from non-U.S. Government users are to be addressed to:
Document Expediting (DOCEX) Project
Exchange and Ci t Division
Library of Congress
Washington, D.C. 20540
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Export Refining Centers
of the World
June 1975
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EXPORT REFINING CENTERS OF THE WORLD
Five major refining centers scattered around the globe account for two-thirds
of all Free World petroleum product exports. Although they have only 25% of
Free World refining capacity, these centers have a product export capacity on the
order of 8.5 million b/d, in addition to more than one million b/d of bunkers.
The Caribbean normally delivers about 80% of its product exports to
the United States.
Rotteroiam sends about 75% of its product exports to West European
countries.
The Persian Gulf ships almost 50% of its refined exports to Asia,
principally to Japan, and the balance to Africa, Western Europe, Latin
America, and the United States.
Italy delivers about 60%% o!' its product exports to other West European
countries ana 20% to the United States.
Singapore sends almost one-third of its exports to Japan and most of
the rest to Southeast Asia.
In the Caribbean, refineries in Venezuela, Trinidad, the Netherlands Ai Ales,
and Puerto Rico were set up to operate on ci tide produced in the region. In r'cent
years, crudes from other areas have supplemented local supply for all but the
Venezuelan plants. Newer plants in the Bahamas and Virgin Islands process mainly
African and Middle East cru&s. Italy and the Netherlands have no signficant crude
production, and Singapore has none. These centers are almost entirely dependent
on imported crude. In contrast, the Persian Gulf' refineries operate solely on locally
produced crude.
These centers have been operating far i,,hnw their capacity for the past two
years. Reduced throughput reflects slack demand brought on by the economic
downturn and two generally mild winters. The Italian center - the hardest hit -
has been operating at less than 50'/, of capacity this year.
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Export Refining Centers of the World
f Ai 4,2U'7
Puerto Rico
r{ (U.S.)
F l Virgin Islands
Notharlondo
Antllloo
Trirddod and
897 Refining capacity in thousands of barrels per day
a. - 462 Approximate 1974 product exports in thousands
of barrels per day
l
L
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11 f J Venezuela( oba8o
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9?AI 3,042
+an.....m 1,100.....
Oahraln
Saudi
Arabia
~~~; 2,295
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S1ngaporo
e~l. d46
~...~eaeaa 320
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Saudi
Arabia
'ji
ds - 900
Singoporo
8~ 046
...., 320
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The refining capacity of the Caribbean area, 4.3 million b/d, is oriented toward
supplying petroleum products to the US east coast. Normally about 80% of
Caribbean exports of refined products are shipped to the United States. In 1974,
US product imports of 2 million b/d from the Caribbean amounted to 76% of
total product imports; this percentage was up from 72% in 1973 despite a 200,000
b/d fall in the absolute volume of product imports from the Caribbean.
Residual fuel oil accounted for nearly 70% (1.4 million b/d) of these US
imports in 1974. The Caribbean supplied 87% of US imports of residual fuel oil
and 52% of domestic consumption. For a variety of economic reasons, US refineries
are designed to produce little or no residual fuel oil. Over the past decade, only
8% of each barrel of crude refined in the United States was sod as residual. This
compares with 60% in the Caribbean refineries, many of which were set up with
an eye to providing residual to the growing US market.
Refinery Characteristics
Caribbean refining capacity falls into two categories. The olc r refineries were
set up to process local crudes into a variety of products principally for export
to the United States, Western Europe, and Latin America. These refineries, with
an aggregate capacity of 2.9 million b/d, are located in Venezuela, Trinidad, and
the Netherlands Antilles. In recent years, declining Latin American crude production
has forced the importation of crudes from other areas to supph;ment local crude
inputs. The second category includes refineries in the Bahamas, the Virgin Islands,
and Puerto Rico. These plants, with a capacity of 1.4 million b/d, were designed
mainly to provide fuel oil to the US market. Most of the crude for the Bahamian
and Virgin Islands refineries comes from Africa and the Middle East, while Puerto
Rico is supplied principally from Venezuela.
Export Capacity
Consumption in the six Caribbean areas of 685,000 b/d takes up only 16%
of their refining capacity, leaving 3.6 million b/d for export.
Some of the refineries have catalytic hydrodesulfurization facilities to remove
sulfur from residual fuel oil to meet US environmental standards. These. facilities
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Caribbean: Refining Capacity
Thousand b/d
Total Capacity
Domestic Demand
Export Capacity
Total
4,267
685
3,582
Bahamas
500
50
450
Netherlands Antilles
900
75
#25
Puerto Rico
284
170'
114
Trinidad
461
50
411
Venezuela
i,532
250
1,282
Virgin Islands
i}
90
500
Excbades an estimated 30,000 tr, +a pa.roche nical feedstock imports.
are normally operated to reduce 4% sulfur content fuel oil to below 1%, and 2%
sulfur content fuel oil to as low as 0.3%, with an approximate 90% yield from
the volume of fuel charged. The remainder is gas and residual bottoms.
A second way of producing low-sulfur fuel oil is to charge low-sulfur crude.
A third procedure is to blend residual fuel with low-sulfur distillate.
Certain of these refineries have facilities to remove sulfur from distillate. Such
facilities would normally reduce a 1% sulfur content mater;al to about 0.2%.
Caribbean Oil Supply and Demand
The Caribbean depends on imports for about 30% of its supply of crude.
In 1974, net oil imports by the six refiners averaged 1.3 million b/d. Domestic
production of 3.2 million b/d, almost entirely from Venezuela, provided the
remaining 70%. Except for Venezuela and Trinidad, all of the refiners are totally
dependent on imported crude. In 1974, Venezuela exported about 60% of its crude
production - 1.1 million b/d outside the Caribbean and 700,000 b/d to Caribbean
refineries. Trinidad covers about 20% of its refinery output with domestic
production.
Prior to the embargo, Arab oil exports to the Car bbean averaged 400,000
b/d, or one-fourth of Caribbean oil imports. During th.,. embargo, however, oil
imports were cut by only about 1G0,000 b/d largely because of increased imports
from Iran. Partial data for the post-embargo period indicate that Arab oil now
accounts for more than 35% of Caribbean net oil imports, or 500,000 b/d. The
increase is largely the result of a tripling of imports from Saudi Arabia compared
with the pre-embargo period.
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Caribbean Refining Capacity as of 1. May 1975
Location,
Capacity
Thousand b/d
Ownership
Total
4,267
Bahamas
Bahamas Oil Refin-
Freeport
Soo
S00
New England Petroleum
ing Co.
Co. and Standard Oil
f C
lif
i
Netherlands West Indies
900
o
orn
a
a
Lago Oil and Trans-
Aruba
440
Exxon Corp.
port Co.
Shell Curacao
Curacao
460
Royali Dutch/Shell
Puerto Rico
284
Group
Caribbean Gulf
Bayamon
38
Gulf Oil Corp.
Ref. Co.
Commonwealth Oil
Penuel'as
161
Commonwealth Oil
Ref. Co.
Ref. Co.
Yabucoa Sun Oil Co.
Yabucoa
85
Sun Oil Co.
Trinidad
461
Texaco Trinidad
Pointe-a-Pierre
361
Texaco Inc.
Trinidad and
Point Fortin
100
Trinidad and
Tobago Oil Co.
Tobago Government
Venezuela
1,532
Chevron Oil Co. of
Bajo .Grande
62
Standard Oil Co. of
Venezuela
California
Cia. Shell De Ven-
Cardon
348
Royal Dutch/Shell
ezuela
Group
Cia. Shell De Ven-
San Lorenzo
32
Royal Dutch/Shell
ezuela
Group
Corp. Venezolana Del
Mur,on
30
Venezuelan Government
Petroleo
Creole Petroleum Corp.
Arnuay
630
Exxon Corp.
Creole Petroleum Corp.
Quiriquire
110
Exxon Corp.
Mobil Oil De Vene-
El Palito
102
Mobil Oil Corp.
zuela
Phillips Petroleum Co.
San Roque
5
Phillips Petroleum Co.
Sinclair Venezuelan
El Chaure
40
Atlantic Richfield Co.
Oil Co.,
Sinclair Venezuelan
Oil Co.
'T'exas Petroleum Co.
El Toreno
Tucupita
10
Texaco Inc.
Venezuela Gulf Ref. Co.
Puerto La Cruz
158
Gulf Oil Corp. and
Virgin Islands
590
Texaco Inc.
Hess Oil Virgin
St. Croix
590
Amerada Hess Corp.
Islands Corp.
3
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In 1974, refinery throughput in the six areas averaged about 3.3 million b/d,
about 10% below year earl er levels and abort three-fourths of capacity. The area
consumed about 700,000 b/d, including bunkers, and exported the remaining 2.6
million b/d. In addition, about 1.2 million b/d of crude oil, mostly from Venezuela,
was exported outside the Caribbean.
The Caribbean refineries are designed to maximize output of residual fuel
oil, the major product demanded by US markets. Normally, the Caribbean refineries
produce about 60% residual fuel oil, 10% gasoline, 13% distillate fuel oil, arid 17%
other products. This compares with a product composition of Caribbean exports
to the United States of 69%, 7%, 10%, and 14%, respectively. Because the US
market takes a slightly greater proportion of Caribbean residual fuel oil output,
domestic demand and other export markets are weighted more toward the higher
fractions.
Venezuelan refining capacity represents more than one-third of the Caribbean
area total. The government expects to nationalize the entire petroleum industry
this year.
Exxon, the most important refiner, whose two plants total 740,000 b/d, has
230,000 b/d of desulfurization capacity at its Amuay plant for reducing 2% sulfur
content fuel oil to 0.3%. Most of this goes to the US east coast. Exxon also has
17,000 b/d of distillate desulfurization capacity.
Shell's two plants total 380,000 b/d. Desulfurization capacity at the Cardon
plant consists of 32,000 b/d residual and 44,000 b/d distillate.
The eight plants of the other refining companies, totaling about 410,000 b/d,
have only 6,000 b/d distillate desulfurization, located at the Mobil refinery.
All these refineries operate on Venezuelan crude.
Trinidad's two long-established export refineries operate mostly on imported
crude, the bulk coming from Saudi Arabia and Indonesia, where Texaco has
important production.
Texaco's big 361,000 b/d refinery normally charges about 80% imported crude.
This facility has 80,000 b/d of residual desulfurization and 45,000 b/d of distillate
4
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desulfurization capacity. Its single-point mooring buoy located four miles C'"bore
in 81 feet of water can accommodate tankers of tip to 260,000 DWT. The facility
also has eight other oil berths. The United States is the refinery's principal export
market. Residual fuel oil is the main product.
The 100,000 b/d government refinery processes about two-thirds Trinidad and
one-third imported crude. This refinery was acquired by the government in August
1974; Shell, which had owned the refinery for many years, chose to sell out what
it considered a marginal operation rather than make substantial new investments
in petrochemical facilities as demanded by the government.
Trinidad refineries use a large proportion of imported crude in part because
higher quality, low-sulfur crude produced in Trinidad is exported. The principal
case is the offshore production of Standard Oil Company of Indiana, which
exceeded 100,000 b/d at yearend 1974. The Standard of Indiana crude is shipped
to the United States where the value of its yield of light products is higher than
would be the case in Trinidad, where facilities are geared to producing mainly
heavy fuel oil.
Netherlands Antilles
The huge export refineries of Exxon and Shell with combined capacity of
900,000 b/d have been operating in the Netherlands Antilles for decades. They
were built to process Venezuelan crude and to supply products to the United States.
Eastern Canada, and other Western Hemisphere destinations, as well as to Western
Europe.
The Exxon plant has 115,000 b/d of residual and 123,000 b/d of distillate
desulfurization capacity. Shell has 25,000 b/d of residual and 100,000 b/d of
distillate desulfurization capacity.
Both installations have extensive discharging and loading facilities. They can
handle very large crude carriers of up to 500,000 DWT. Shell recently completed
a crude oil transshipment terminal which can handle 825,000 b/d destined for
the United States. The new terminal can also handle 250,000 b/d for the refinery.
Virgin Islands
The Amerada Hess Virgin Islands refinm-y went on stream in 1967 at 71 000
b/d. It was subsequently expanded in six stages to its present 590,000 b/d. The
refinery was built by Hess Oil and Chemical Company, an independent US refiner
and marketer specializing in residual fuel oil, to supply the US east coast. In 1969,
Hess merged with Amerda Petroleum Corporation, a firm with production in the
5
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US Oil Imports
Thousand b/d and Percent of Total
Total
Crude
Oil
Total
Refined
Products
Motor
Gasoline
Distillate
Fuel Oil
Residual
Fuel Oil
Other
Total
6,256
3,244
3,012
134
392
1,853
633
Percent
100
100
100
100
100
100
100
Total Caribbean
2,577
404
2,173
92
249
1,511
321
Percent
41
12
72
69
64
82
51
Venezuela
1,135
344
791
7
62
603
119
Percent
18
10
26
5
16
33
19
Bahamas
174
....
174
....
22
128
24
Percent
3
6
....
6
7
4
Netherlands
Antilles
585
....
585
16
65
42C
78
Percent
9
....
19
12
17
23
12
Trinidad
255
60
195
3
13
137
42
Percent
4
2
7
2
3
7
7
Virgin Islands
329
....
329
14
64
217
34
Percent
5
....
11
11
16
12
5
Puerto L---f,
99
....
99
52
23
....
24
Perc,,.it
2
....
3
39
6
....
4
Other
3,679
2,840
839
42
143
342
312
Percent
59
88
28
31
36
18
49
Total
6,088
3,477
2,611
204
281
1,572
554
Percent
100
100
100
100
100
100
100
Total Caribbean
2,372
382
1,990
133
199
1,369
289
Percent
39
11
76
65
71
87
52
Venezuela
980
319
661
11
44
497
109
Percent
16
9
25
5
16
32
20
Bahamas
159
....
159
....
15
110
34
Percent
3
....
6
....
6
7
6
Netherlands
Antilles
510
....
510
16
46
363
85
Percent
8
....
20
8
16
23
15
Trinidad
241
63
178
16
23
111
28
Percent
4
2
7
8
8
7
5
Virgin Islands
392
....
392
45
46
283
18
Percent
6
....
15
22
16
18
3
Puerto Rico
90
....
90
45
25
5
15
Percent
2
....
3
22
9
Negl.
3
Other
3,716
3,095
621
71
82
203
265
Percent
61
84
24
35
29
13
48
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United States, Canada, and Libya. This refinery operates, however, on crude
purchased from other sources. It has 95,000 b/d of residual desulfurization capacity.
The Bahamas Oil Refining Company began refinery operations at 250,000
b/d in mid-1970 and expanded capacity to 500,000 b/d in 1973. At the same
time, a 60,000 b/d desul`urizer was completed to improve the company's capability
to meet requirements for lower sulfur content fuel oils. The refinery w.is built
specifically to supply residual fuel oils to the US east coast. Its majority owner,
New England Petroleum Company, is an important independent US fuel oil
marketer that uses this plant as a source of supply. The refinery's main products
are low-sulfur residual fuel oil, distillate heating oils, and petrochemical feedstocks.
Two offshore jetties can accommodate incoming crude carriers of up to
400,000 DWT. Product loading facilities consist of eight berths. These are for much
smaller vessels, as no US east coast port can at present receive tankers exceeding
60,000 DWT.
The three Puerto Rican refineries, all built within the past two decades, supply
practically all on-island petroleum demand, including petroleum feedstocks to
numerous petrochemical plants specifically built to utilize this output. The refineries
ship small volumes to the United States.
Commonwealth, an independent whose refinery was built almost 20 years ago,
is the main petrochemical supplier. Seven petrochemical plants, either wholly owned
or joint ventures, are operating in it3 complex. The refinery has 88,000 b/d of
residual desulfurization capacity.
In addition to supply contracts with Venezuelan producers of crude,
Commonwealth has a long-term contract in effect with the Algerian government
and another with the Indonesian government on which deliveries are scheduled
to start in 1977.
Gulf's small refinery, built in the late 1950s to pro;ess Venezuelan crude,
has 16,000 b/d of residual desulfurization capacity. The Sun plant was built in
the late I960s to refine Sun Oil's Venezuelan crude production, which could not
be imported into the United States because of the Mandatory Import Control
Program. It h s 8,000 b/d of residual and 12,000 b/d of distillate desulfurization
facilities.
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 Frooport
13ntinmaa
Oil Refining Co.
BAHAMAS
CARIBBEAN sl
Aruba Ne
Exxoi
r Amuayt r=xx4
Cardon t She
Bajo Grande
San Lorenzo
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Refineries in he Caribbean
ATLANTIC OCEAN
Puerto Rico (U.S.) 1
Bayamon p~ rif I U.S~,,Virgln
PenuelasI ' Sunl Islands
Commonwealth Yabucoa rai i-less
St. Croix
CARIBBEAN SEA
Moron t Venezuelan Govt.
41 Sc1c.-il El Palito Mobil C w.
UIf /TeXaCO f.O.Arcn
VENEZUELA
TRINIDAD
and TOBAGO
Pointe-a?Plerrei Texaco
Point Fortinf-. T rinidad and
Tobago Govt.
Quiriquire
;'.' Tcxn-) c o
Tucupita
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REFINING CENTERS OF THE WORLD: ROTTERDAM
The great volumes of crude oil and products that flow through Rotterdam
have made it one of the petroleum industry's most important international centers.
As well as being a refining and transshipment center, Rotterdam is the home of
Europe's most important oil brokerage houses. These houses handle trade in oil
products on both a contract and spot basis, dealing not only in locally refined
products but also placing cargo lots from the USSR, Latin America, the eastern
Mediterranean, and elsewhere.
Rotterdam's spot market quotations are often used to estimate inter- 1tionnal
oil price trends, to set contract prices on products, and to determine the value
of various types of crude oil. An oil products futures market for gasoline and
distillate was set up in 1974 by several brokers and other business interests.
Refining
Fourteen refineries with combined capacity of 3 million b/d obtain their crude
oil by pipeline through the port of Rotterdam. Five of these refineries are in the
Rotterdam area, two are elsewhere in the Netherlands, three are in Belgium, and
four are in West Germany. These refineries are set up to process mainly sour crude
from the Persian Gulf. African sweet ;rudes currently make up about 20% of inputs.
Current Dutch refining capacity of 2 million b/d, including a small Amsterdam
plant that does not receive its crude through Rotterdam, represents 10.5% of West
European capacity. Dutch domestic oil consumption accounts for only 6`/n of
Western Europe's total demand, including bunkers, and utilizes only 41% of Dutch
capacity at 100% operating rate. Consequently, at full operations, more than half
of Dutch refinery output will be exported. Rotterdam normally handles one-third
of West European petroleum product export trade. All but about 30,000 b/d of
crude oil used in Dutch refineries must be imported.
The Rotterdam refineries are designed to maximize output of distillate and
residual fuel oils, the major products demanded by Dutch and other West European
consumers. Figures for the five Rotterdam refineries and the Mobil Amsterdam
plant (the CFP Flushing plant was not yet in operation when the figures were
compiled) show that the Netherlands refinery yield ran 62% distillate and residual,
the same percentage as for all West European refineries combined.
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Iksull'urization ('opacity
The five Rutterdam refineries have about 100,000 h/d oI' furl oil
(Icsull'uri/.atiou capacity anal the Amsterdam refinery some 30,000 b/d, the I:Inshinl,
refinery rione, Ior a Netherlands total of 190,000 b/d; the Ihree Itell'ian refineries
?nd the our West German plants supplied by pipeline from Rotterdam have
100,000 h/d and 90,000 h/d, respectively. Total desttlI'll rizaIion capacity of the
14 refineries supplied from Rotterdam thus is 380,000 b/d.
The stain sour Persian Gulf crudes (Saudi Arabian, Iranian, and Kuwait) yield
residual fuel oils with sulfur contents in the range of 2.5'/';, to 4 ,'. l)esulI'll rizaIion
facilities that charge such fuel oils are designed to reduce the sulfur content to
below 1'/%.
Storage
The Rotterdam port area has crude and products storage capacity of 170
million barrels. A transshipment terminal under construction at Massvlakte is
expected to add 10 million barrels of' storage capacity by the end of this year
and another 20 million by the end of' 1977, increasing total area capacity to 200
million barrels.
Crude oil and products in storage at Rotterdam fall into four categories:
? Sixty-five days of compulsory (strategic) reserves based on each importer's
domestic volume for the previous year. These reserves must be held apart
from normal operations and be available at all times. They may be used
only at government directive. Compulsory reserves currently are estimated
at about 45 million barrels.
? Working stocks of' refiners and other importers. Market refineries
operating on imported crude normally maintain storage for about 20 days
of' crude throughput, plus storage for 30 days' output of' refined products.
Capacity now stands at about 85 million barrels.
? Supplies in transit to other countries. Such supplies may remain in the
country for up to 30 'Jays before they must be declared as imports.
Volumes in this category cannot be estimated.
? Stocks in storage belonging to companies in other countries, mainly West
Germany and Belgium. These crude and product stocks remain in the
Netherlands for longer than 30 days, have been declared as imports, and
will subsequently be shown as exports. Volumes in this category vary.
io
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Refineries Supplied by Pipeline from Rotterdam as of I January 1975
Capacity
T'houwmd b/d
Ownership
Total
3,042
Rotterdam arcs
1
709
131' Rail'inaderij
Nederland
Europoort
,
490
British Petroleum Co,
Chevron Petroleum Mj.
I'crnis
300
Standard Oil of Cali-
I:sso Nederland
Botlck
325
fornia and Texaco
Exxon Corp.
Gulf Oil Raffinadcrij
Rozenburg
94
Calf Oil Corp.
Shell Nederland
l'crnis
500
Royal Dutch/Shell
Raffinaderij
Group
Other Netherlands
255
Mobil Oil
Amsterdam
125
Mobil Oil Corp.
Total Raff. Nederland
Flushing
130
Cie. Francaise Des
Belgium
554
Petrolcs
Esso Belgium
Antwerp
93
Exxon Corp.
Soc. Industrielle Beige
Antwerp
321
British Petroleum Co.
Chevron Belgium
and Petrofina
Standard Oil of
West Germany
524
California
Caltex Deutschland
Raunhcim (Frankfort)
90
Standard Oil of Cali-
Gclsenbcrg A.G.
Gelsenkirchen
fornia and Texaco
Gcisenbcrg A.G. (gov.
Deutsche Shell
Godorf
ernmcnt 51%)
Royal Dutch/Shell
Union Rheinische
Wesseling
Group
Union Rhcinische
Braunkohien
Refinery Output of and Domestic Demand for Refined Products
Western Europe
Refinery
Output
Domestic
Demand
Refinery
Output
Donrest`c
Demand
Total
100
100
100
100
Gasoline
9
10
14
14
Kerosine and jet fuel
7
5
4
4
Distillate fuel oil
28
22
29
30
Residual fuel oil
34
34
33
32
Other products
22
29
20
20
it
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 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110007-9
The Rotterdam port area extends from Iuropoort near file Hook ot'llolland
inland to tilt.- city of Rotterdam, a distance of about 25 miles. The port facilities
are situated on holly sides of the New Rotterdam Waterway, a I7-mile dredged
chu'runel beginning at the Ilook of' Holland, and the New Maas River. These are
open connections to the North Sea and the Rhine River. (The wauvrway leads
into the river.)
An extension to the port is under construction through lilt damning and
reclaiming of' (lie Maasvlakte, a shallow area of' the North Sea to the south of'
the New Rotterdam Waterway, adjacent to Iuropoort.
The oil tanker terminals are located in eight petroleum harbors. Numbers I
and 2 are at Pernis, well inland along the river; Number 3 is at 13otlek, downriver;
Numbers 4, 5, (), and 7 are at Iuropoort. Number 8 at Maasvlakte is in operation,
although only part of' the tankage is completed and other parts of' the project
are still under construction.
The 65-foot-deep New Rotterdam Waterway to Furopoort, which is reached
by an 8-mile approach channel extending into the North Sea, can be navigated
by fully loaded tankers of up to 250,000 DWT capacity. Rotterdam Municipality
plans to deepen this channel to 08 feet by the end of this year to give access
to Europoort for tankers of' up to 275,000 DWT.
Two of the refineries are at Pernis, with one each at Botlek, Rozenburg, and
Europoort. The tanker terminals and refineries are connected by pipeline.
Pipelines to Points Outside Port Area
Four crude oil and two products pipelins for points outside the port area
originate in Rotterdam. The most important crude line, the Rotterdam-Rhine
Pipeline, 36-inch-diarnet.r, runs east 110 miles through Venlo into West Germany.
There it branches south to Godorf and Wesseling with an extension to Raunheinn,
and northeast to Wesel where it connects with another line to Gelsenkirchen. The
ent;re system has a total length of 283 miles. Current capacity is 460,000 b/d.
A 34-inch-diameter, 65-mile crude line to Antwerp, Belgium, has a current
capacity of 560,000 b/d. A 55-mile extension supplies a 140,000 b/d refinery at
Feluy.
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CIA-RDP86T00608R000500110007-9
 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110007-9
Thousand b/d
Imports
Exports
Pre-
Pre-
Emlxrrgo
Embargo
1974 Est.'
1973
1974 Est.
1973
Total
2,463
3,225
Total
1,834
2,603
Crude oil
2,023
2,862
Crude oil
721
1,282
Arab
307
1,999
Western Europe
704
1,242
Libya
18
191
Belgium-Luxembourg
254
429
Syria
4
40
West Germany
358
549
Iraq
6
17
United Kingdom
29
119
Saudi Arabia
186
900
Denmark
20
35
Kuwait
83
559
France
15
24
Qatar
139
Other
28
86
Abu Dhabi
4
75
Other
17
40
Algeria
2
36
Refined products
1,113
1
321
Other
42
Western Europe
862
,
1,019
Iran
1,249
568
Belgium-Luxembourg
100
131
Nigeria
421
249
France
16
12
Venezuela
23
18
Italy
2
,,,,
Other
23
28
Spain
7
,,,.
Refined products
440
363
United Kingdom
113
209
Western Europe
227
192
West Germany
443
522
Belgium-Luxembourg
28
40
Denmark
46
57
France
18
27
Sweden
59
36
Italy
73
45
Other
76
52
Spain
11
14
Other and unknown'
251
302
United Kingdom
50
30
West Germany
43
26
Other
4
10
Arab
12
45
Other
201
126
1. Including oil transshipped.
2. Had on data through September.
3. Including bunkers.
One crude line (26-inch-diameter, 53 miles in length) within the Netherlands
supplies a 125,000 b/d refinery in Amsterdam. A second line (24-inch-diameter,
93 miles in length) supplies a 130,000 b/d refinery at Flushing.
The 24-inch products line into West Germany was originally the crude line
through Venlo until replaced in 1968 by the present 36-inch. This products line,
with capacity of 240,000 b/d, supplies largely the same West German area as the
13
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 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110007-9
crude line, but extends southward to Ludwigshafen. A small 8-inch line to the
Dutch province of South Limburg (near Liege, Belgium) supplies petrochemical
feedstocks to plants in that area.
Oil Flows Through Rotterdam, 1974
Western Europe depends heavily on the greater Rotterdam area for its oil
supplies. Despite the Arab oil embargo, inflows to Rotterdam of crude oil and
products amounted to nearly 2.5 million b/d in 1974, or about 17% of West
European oil consumption. Inflows of crude oil and products were 2 million h/d
and about 400,000 b/d, respectively.
About 600,000 b/d, including refinery fuel losses, was consumed in the
Netherlands. The remaining 1.8 million b/d was exported - 1.1 million b/d of
refined products (including bunkers, and700,000 b/d of crude oil. The Dutch refined
about 1.3 million b/d (compared with capacity of 2 million b/d) and transshipped
the remaining 700,000 b/d of its crude oil supplies.
European countries received almost all of the outflow from Rotterdam.
Belgium and Luxembourg received about 350,000 b/d -- more than 50`I% of their
oil requirements - and West Germany relied on the Netherlands for 800,000 b/d -
about 30% of its oil imports. Denmark and Sweden obtained between 10% and
20% of their oil supplies from the Netherlands.
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 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110007-9
Petroleum Facilities in the Rotterdam Harbor
~ otterdam
Wesel
Flushing?f? o'nio WEST GERMANY
Antwerp 1..
6
Y~ fr'p!Y
oil] BP
4 30
EUROPOORT
Crude and Product Pipelines
from Rotterdam
(Pipeline diameters in inches)
Crude oil pipeline
- Product pipeline
NETHERLANDS
Refinery
Oil tanker terminal
Municipal boundary
0 1 2 3km
0 1 2 milua
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 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110007-9
Rotterdam Harbor
pelines
Refinery
Oil tanker terminal
Municipal boundary
0 2 3km
0 1 mileo
ROTTERDAM
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 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110007-9
EXPORT REFINERIES OF THE PERSIAN GULF
Four Persian Gulf countries - Bahrain, Iran, Kuwait, and Saudi Arabia - have
a combined refining capacity of 2.3 million b/d, or 70% of the Middle East total.
This is equivalent to nearly 10% of their productive capacity for crude, 21.6
million b/d.
At the outbreak of World War II, refining capacity in the Middle East was
limited to Iran (335,000 b/d) and Bahrain (35,000 b/d). By 1950, Persian Gulf
capacity, including new plants in Saudi Arabia and Kuwait, exceeded 800,000 b/d,
equivalent to 90% of the Middle East total. Since then, Persian Gulf capacity has
increased by 1.5 million b/d, through additions of about 600,000 b/d in Kuwait,
500,000 b/d in Saudi Arabia, 100,000 b/d in Bahrain, and 300,000 b/d in Iran.
Ownership of Persian Gulf refining facilities may well shift almost completely
from the foreign-owned international oil companies to the host government during
the next decade. (a) Iran has total ownership of its refineries; (b) Kuwait holds
about two-thirds ownership of national refining capacity; (c) Saudi Arabia owns two
small refineries, but the major plant (Aramco) is still completely foreign-owned; and
(d) Bahrain's refinery remains totally in foreign hands.
Refinery throughput in the four countries totaled 1.8 million b/d in 1974.
The area consumed about 900,000 b/d including bunkers, which accounted for
about half the total. The remaining 900,000 b/d was exported. Nearly 50% of
these product exports normally go to the Far East and Asia - principally to Japan;
the remainder goes to Africa, Western Europe, Latin America, and the United States.
The refineries are designed to maximize output of residual fuel oil, the major
product demanded by Japan and used in bunkering. They normally produce about
50% residual fuel oil - roughly the same proportion as in Japanese oil consumption
and in the Gulf's domestic demand.
The Persian Gulf has prospects for a substantial increase in refining capacity
through new joint ventures. Iran and Saudi Arabia are interested in constructing
new plants in the 250,000 - 500,000 b/d range for completion in 1980 and beyond.
One Saudi plant has already been approved in a joint venture with Shell. Iraq,
although a major crude producer, is not a factor in Gulf refining. Its single plant
in the Gulf area supplies domestic product requirements. Future plans, however,
include construction of a 300,000 - 400,000 b/d refinery, whose products would
be exported primarily to Japan. The aspirations and plans of the Persian Gulf states
could, if fulfilled, result in a doubling of the re`' ,ing capacity of the area over
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 Approved For Release 200411
P?9':IC7A
@BgM0608R000500110007-9
Thousand b/d
Saudi
Arabia
Total
750
600
300
170
1,820
Domestic
350
450
100
20
920
Of which:
Bunkers
200
150
50
20
420
Exports
400
150
200
150
900
Persian Gulf Refining Capacity as of I May 1975
Location
Capacity
(Thousand b/d)
Ownership
Total
2,295
Bahrain
250
Bahrain Petroleum Co.
Awali
250
Texaco and Standard Oil
Co. of California
Iran
789
National Iranian
Oil Co.
Abadan
470
Iranian government
National Iranian
Oil Co.
Kermanshah
15'
Iranian government
National Iranian
Oil Co.
Masjed Soleyman
641
Iranian government
National Iranian
Oil Co.
Shirai,
40'
Iranian government
National Iranian
Oil Co.
Tehran
2001
Iranian government
Kuwait
646
American Independent
132
R.J. Reynolds Indus-
Oil Co.
tries
Arabian Oil (Japan)
Ras al Khafji
30
Japanese interests, Ku-
waiti and Saudi Arabian
governments
Getty Oil Co.
Mina Suud
50
Getty Oil Co.
Kuwait National
1 ,.troleum Co.
Ash Shuaybah
134
Kuwaiti government
Kuwait Oil Co.
Mina al Ahmadi
300
Kuwaiti government
Saudi Arabia
610
Arabian American
Ras Tanura
565
Socal, Texaco, Exxon,
Oil Co.
Mobil
Juddah Oil Ref.
Juddah
31'
Saudi Arabian govern-
ment
Riyadh Oil Ref.
Riyadh
14'
Saudi Arabian govern.
ment
1. :gland refinery; no export facilities.
16
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the next decade. No other major Free World refining area is likely to enjoy a
similar rate of expansion.
The Bahrain expcut refinery - the only refining facility in this island ration -
went on stream in the mid-1930s as a 25,000 b/d plant of Caltex (Texaco and
Socal) to supply Eastern Hemisphere markets. In addition to processing Bahrain
crude, the plant has for many years processed Saudi Arabian crude received by
pipeline from the mainland 25 miles away. In recent years, Bahraini crude
production of about 70,000 b/d has met less than one-third of the plant's capacity
of 250,00J b/d. Equipment includes 62,000 b/d of fuel oil desulfurization capacity.
The products loading terminal at Sitrah has seven . anker berths. Bahrain does not
export crude.
The Bahraini government has 60% participation in the Bahrain Petroleum Co.'s
crude production and has announced its intention to increase this to 100% this
year. The government has stated, however, it does not want participation in the
refinery or in Caltex's local marketing system.
In 1972, C.iltex and Japanese interests were considering a joint project to
double the refinery's size and increase its desulfurization capacity. The additional
products were to be shipped to Japan. The project was scrapped because of concern
over access to crude and the general safety of the investment.
Iranian refining capacity now stands at about 800,000 b/d, or one-third of'
the total for the Gulf. The only export refinery is at Abadan. Put on stream in
1913 as an 8,000 b/d plant by British Petroleum Co. - the first in the Persian
Gulf -- it can now process 470,000 k)/d. When nationalized in 1951, it was the
largest refinery in the wor'id. Following nationalization, it was virtually inactive
until 1954, when the Iranian Consortium of 14 companies was formed to operate
the properties.
In 1973 the government took over ownership from the Consortium. Under
a 20-year contract made at that time, the government agreed to process up to
300,000 b/d of crude for the former Consortium companies on a fee basis. Each
company's throughput rights are in accordance with its former ownership share
in the Consortium (BP 40%; Shell 14%; Exxon, Texaco, Mobil, Gulf, and Socal
7% each; CFP 6%; and Iricon Agency of 6 companies, 5%). The refinery has no
desulfurization facilities.
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 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110007-9
Because water depth at Abadan, 40 miles inland along a river above the Al
Paw bar, is inadequate for modern tankers, all product exports trans,t Bandar Mali
Shar. This terminal, 50 miles from Abadan, is connected by pipelines. It has six
berths, which can accommodate ships of up to 60,000 DWT.
Iranian refineries can absorb only about 12% of the nation's maximum crude
production. For several years the government has been actively, but unsuccessfully,
endeavoring to expand refining capacity on a joint venture basis. In recent months,
negotiations on three joint ventures - with Japanese, German, and US interests -
have been side-tracked because either he companies were unable to meet the Shah's
conditions or Tehran was unwilling to offer concessions on the price of crude.
These projects would have tripled refining capacity by adding 1.5 million b/d. In
1972 the Consortium was considering the construction of a major new export
refinery as part of its long-terns production, arrangements; this project was dropped
following the government takeover in 1973. The government hanvllcs domestic
distribution of petroleum products.
Kuwait is capable of processing at least 18% of its crude oil production at
capacity, including its half of Neutral Zone output. The 300,000 b/d Mina al
Ahmadi refinery, the largest in Kuwait, represents 46% of the national refining
capacity. Originally built by the Kuwait Oil Co. (Gulf and British Petroleum) in
1950 as a 25,000 b/d plant to provide bunker fuel for crude tankers, it was
expanded in several stages into a major export facility. In 1974 the government
increased its initial ?..-% participation in Kuwait Oil Co. to 60% retroactive to
1 January 1974. Then, on 5 March 1975, it took the remaining 40%. Takeover
arrangement have not been settled, and the Kuwait Oil Co. is still operating the
refinery. The settlement probably will include a processing contract with British
Petroleum and Gulf for most or all of the refinery's capacity.
This refinery has no desulfurization equipment. Its product yield is 50%
residual fuel, 27% distillate, 20% naphtha, and 3% other products. Mina al Ahmadi
is also a major crude oil loading port, having two piers with a total of 12 berths
and a sea island that can accommodate two very large crude carriers.
The Ash Shuaybah refinery, built in 1968, is owned entirely by the Kuwaiti
National Petroleum Co. (KNPC), which recently nationalized the 40% interest held
by the Kuwait general public. Since 1961, KNPC has had the exclusive rights for
distribution and sale of petroleum products in Kuwait.
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 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110007-9
This sophisticated plant was the world's first all-hydrogen refinery, able to
process either light or heavy crudes. it uses associated gas from the oilfields for
the manufacture of' hydrogen used in the hydrocracking of residual fuel oil and
heavy distillates and for hydrodesulfurization. Facilities include 48,000 b/d of
residual hydrocracking for making distillates from residual; 20,000 b/d of' distillate
hydrocracking for making gasoline and kerosine from distillates; 85,000 b/d
of catalytic hydrotreating for removing sulfur from distillates; and 11,000 b/d of
catalytic hydrodesulfurization for removing sulfur from residual. Capacit:' is to be
increased later in 1975 to 180,000 b/d from the current 134,000 b/d.
The American Independent Oil Co. (Aminoil), Arabian Oil Co., and Getty
refineries located in Kuwait were built to process the very heavy crudes from
production concessions held by these companies in the Kuwait/Saudi Arabia Neutral
Zone. Together, they account for one-third of Kuwait's refining capacity.
The Aminoil refinery began as a 30,000 b/d fuel oil plant in 1958, was replaced
by a new 100,000 b/d refinery in 1962, and was expanded to its present 132,000
b/d in 1968, when a 32,000 b/d residual desulfurizer was installed. Aminoil refines
its entire Neutral Zone crude output as the high sulfur content (4.7%) impedes
crude sales to third parties. Under a special arrangement with Aminoil, the Kuwaiti
government receives 85% of the realized price on products. Kuwait has chosen
to forgo participation. The refinery output is marketed by Aminoil.
Arabian Oil's small plant supplies bunker fuel oil to tankers loading crude.
Each government apparently has a 60% participation in its undivided half interest
in Arabian Oil's crude production operations, but the refinery is probably still
mostly owned and fully operated by the company.
Getty still owns its Kuwait refinery and markets the products. Getty has been
negotiating with Saudi Arabia, from whom it holds its Neutral Zone crude
concession, with regard to government participation; the matter is pending.
The Saudi government now owns 60% of Aramco's crude oil production and
has announced its intention to increase its share to 100% this year. Despite this,
according to Mobil Oil Corp., one of the four private Aramco owners, the companies
still wholly own and operate the 565,000 b/d Ras Tanura export refinery and
expect to continue to do so. This plant, the largest in the Middle East and the
third largest in the world, has only 23,000 b/d of desulfurization capacity.
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 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110007-9
Construction of the Ras Tanura refinery was begun in 1943 at the request,
and the active support, of the US government. The plant went on stream at 50,000
b/d shortly before the end of World War If. Capacity was increase(] to 127,000
b/d by 1949 and to its present size by a number of subsequent expansions.
Ras Tanura has numerous facilities for loading crude and products, including
two "T" piers with a total of ten berths, and four sea islands with a total of
eight berths and 18 mooring dolphins.
Present Saudi refining capacity of 610,000 b/d, including two small inland
refineries, equals only 5`% of the 11.5 million b/d of crude productive capacity.
The government plans to greatly expand refining capacity. In February 1975, it
announced approval of a joint venture with the Royal Dutch/Shell group for a
$1 billion plant with a capacity of at least 250,000 b/d. The plant, scheduled
fnr completion in 1980, is to be located at Jubayl, just north of Ras Tanura.
Juddah also is interested in building a joint venture refinery on the Red Sea with
a capacity of tip to 500,000 b/d. A government company handles the distribution
of petroleum products within Saudi Arabia.
20
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 Persian Gulf Refineries
Approved For Release 2003109129 :
6J NIOC Masjod Soloyman
1,-~ Bandar?o-Mah Shar
(____ `NiOCAbadan
Mina Abd AI h P!AOC Ras al Khatji
PERSIAN
GUIF
Ras Tanury A ARAMCO
BAHRAIN
~nran
11 1 BA PCO Awali
14 (Govt.) Riyadh
SAUDI ARABIA
Approved For Release 2003109129 :
P86
0608R000500110007-9
f
/.--4,7NIOCAbadan
KIJWNTt.KNPC Ash Shuaybah
$1KOC Mina al Ahmadi
AMI IIItAGetty Mina Suud
PERSIAN
GULF
Ras Tanura Ai ARAMCO
BAHRAIN
Sitrah
i4BM PCO Awuli
SAUDI ARABIA
ARABIAN SEA
 Approved For Release 2gV&9129.i I - Yfj4ffa9?M5Y?RjP0110007-9
tTA
Italy's refining capacity was insignificant before World War II and only 100,000
b/d in 1950. By 1965, it had increased to almost 1.7 million b/d, and today it
stands at 4 million b/d, the largest of any West European nation. For two decades,
Italy has accounted for more than 20% of Western Europe's refining capacity. At
peak operation, Italian refineries have the potential of exporting 45"/:, of their output
(1.8 million b/d) after fully satisfying domestic demand. Only about one sixth of
their output (415,000 b/d, excluding bunkers), however, was actually exported
in 1974. Because of slackening domestic and foreign demand and drawdowns of
product stocks, refinery throughput has run at less that? 50% of capacity in 1975.
Italy nonetheless remains the second largest export center in Western Europe.
Italy: Refining Capacity and Export Availability
Refining capacity (1 Jan)
450
1,670
2,630
3,88U
Average domestic demand
240
980
1,540
2,''Y)
Potential export availability
(at peak operation)
210
690
1,090
1,780
Much of the export capacity is in Sicily and Sardinia, where six large plants
totaling 1.6 million b/d have 40% of the country's capacity. These refineries were
built to take advantage of location with respect to the Suez Canal and the
Mediterranean terminals of crude oil pipelines from Saudi Arabia and Iraq. They
now have the further advantage of proximity to North African crudes. At peak,
their export trade in refined products exceeded 600,000 b/d, including bunkers.
The island refineries lost an important part of their bunker fuel sales upon
the closing of the Suez Canal in June 1967. The reopening of the canal is expected
to increase demand for Italian bunkering facilities and partially restore Italian prod-
ucts markets. On the negative side, the pipeline from Saudi Arabia to the Mediter-
ranean port of Sidon was shut down in February 1975, because low tanker rates
made the Sidon oil uncompetitive with oil shipped around the Cape from the Persian
Gulf to Western Europe.
21
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'Flit Italian refineries maximize output of distillate and residual fuel oils, the
major products demanded by West European consumers. Roughly 65% of their
output is distillate and residual fuel oil. Similarly, these products account for 65%
of West European consumption.
In Europe, Italy is rivaled only by Rotterdam as a major international center
for petroleum products. The Italian spot market trades in cargoes from southern
ksurope, North Africa, and the Black Se,,-,. Brokerage houses in Genoa and Milan
handle a major portion of these transa(,~,,)ns. Price quota lions on spot sales of
cargo lots are used to estimate international oil price trends and to set contract
prices on products.
Secondary Processing
Most of the secondary capacity of the Italian refining industry is geared for
processing distillate and residual fuel oils. These together account for about 65%/,
of refinery output, compared with about 20`%, for gasoline, kerosine, and jet fuels
and I5,, for other products and refinery use. The main secondary processing
capacity consists of':
? 490,000 b/d of catalytic hydrotreating for removing sulfur from
distillates,
? 400,000 b/d of catalytic hydrodesulfurization for removing sulfur from
residual fuel oils,
? 270,000 b/d of catalytic cracking for making diesel fuels, kerosine, and
gases (for petrochemical feedstocks) from heavy distillates, and
? 390,000 b/cl of catalytic reforming for improving the quality of motor
gasoline.
Trade and Operations
Italy ranks fourth as a Free World center for petroleum product exports. In
1974, Italian exports of refined products excluding bunkers fell by about 201Io
to 415,000 b/d. Expo; is declined because of reduced world oil demand, export
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controls imposed by the government during the embargo, and low export prices
toward the end of last year.
Other European countries - the most important being West Germany, France,
the United Kingdom, and Switzerland - normally receive about 60'i%% of Italy's
product exports. The United States, however, is the single largest importer of Italian
products with about 20% of' the volume. Other markets include Africa and the
Middle East.
In 1974, refinery throughput fell 71/0 to 2.4 million b/d, or about 60"/r, of'
capacity. The trend has continued through the early months of 1975, with refinery
throughput averaging only 1.9 million b/d, or less than 50% of' capacity. Excess
stocks and declining export demand have caused the drop. Italian oil consumption,
including 140,000 b/d of bunkers, has remained at about last year's levei of 2.1
million b/d.
Italy depends almost entirely on imports for its crude. Domestic production
averages only about 20,000 b/d. In 1974, crude oil imports fell 7% to 2.35 million
b/d, while product imports rose 40'% to 180,000 b/d. We estimate that roughly
851% of the crude came from Arab sources in 1974, with Saudi Arabia and Libya
supplying 33`% and 23% Italian product imports come almost entirely from other
European countries.
Ownership
ENI, the national oil company of Italy, has five wholly owned and three
partly owned refineries with a total capacity of 647,000 b/d. ENI has been
negotiating since last December to sell a 50% interest in three former Shell plants
and certain other facilities to the National Iranian Oil Co. ENI wishes to establish
an assured source of crude. The matter is stalemated over terms.
In March 1975, ENI announced it plans to invest $9 billion in exploration,
pipelines, distribution, and petrochemicals through 1918, in accordance with the
government's 1973 petroleum plan. The investment plan, which envisions a
dominate role for ENI in the Italian energy sector, does not include any
expenditures for refining capacity.
Five of the seven major international cil companies - Exxon, Gulf, Mobil,
Texaco, and Socal - still refine and market in Italy. The other two major
internationals - British Petroleum Co. and Shell - have sold their refining and
23
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 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110007-9
Ownership of Itrtlian Refineries
Short Name
Capacity
I May 1975
(Thousand b/d)
Percent
Total
Italian government company
Ente Nazionalc Idrocarburi
tNj
647
16.4
Private Italian companies
2,179
55.1
Mediterranean R .affineria Sicilian
Petrolefina
tit a ditcrranea
505
12.8
Montedison SPA
4ontcdison
457
11.6
Societa Per AMione Raffineria Sarde
Saras
360
9.1
Sarom Raffinahic,, SPA
Sarom
332
8.4
Raffincria Edoardo Garronc
G arronc
147
3.7
Societa Italiana Resin
SIR
119
3.0
Anonima Pctroli Itallana
API
81
2.0
Gaeta Industrie Petroli
Gaeta
40
1.0
Sanquirico SPA
Sanquirico
33
0.8
Raffineria Iplorn
1plom
31
0.8
Lombarda Pctroli
Lombarda
24
0.6
Raffinerie Dellepianc SPA
bellepianc
20
0.5
Liquichimica SPA
Liquiclibntca
12
0.3
Industria Leganti Stradali
dcl Affini
!lsea
8
0.2
Socicta Pctrolifera Italiana
SPI
8
0.2
Raffincric Oil Lubricanti
1.OL
2
0.1
Foreign-owned international companies
1,128
28.5
Exxon Corp.
tX.xon
467
11.8
Cie. Francaise des Petroles
CFP
192
4.9
Mobil Oil Corp.
4obil
150
3.8
Standard Oil of Indiana
Amoco
100
2.5
Petrofina
1'e trofna
64
1.6
Standard Oil of California
Socal
61
1.5
Gulf Oil Corp.
Gulf
60
1.5
Texaco Inc.
Texaco
24
0.6
Phillips Petroleum Co.
Phillips
10
0.3
marketing interests as the result of operating losses stemming from government
regulations. British Petroleum, which lead been in Italy for 15 years, sold its
marketing facilities and 127,000 b/d c f refining capacity to Montedison in
mid-1973. Shell, after 60 years in Italy, Sold its three refineries (with a combined
capacity of 270,000 b/d) and its marketing facilities to ENI in January 1974. In
January 1975, Gulf sold a 25% share in its 80,000 b/d plant to Mobil. Three
24
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 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110007-9
other international companies - Cie. Prancaise des Petroles, Petrofina, and Standard
Oil of Indiana - have important operations. Phillips is part owner of a small plant.
The seven largest privately owned Italian refining companies account for
2 million b/d of capacity, or 50% of the national total. Almost 1.3 million b/d,
or two-thirds of their capacity, is located in Sicily and Sardinia. Mediterranea, Saras,
and Societa Italiana Resin have a single plant each, all located on the islands.
Montedison, Italy's largest company with majority private ownership, has a 300,000
b/d refinery in Sicily as well as 157,000 b/d of capacity in three other plants on
the mainland. Montedison also has interests in chemicals, synthetic fibers, and
pharmaceuticals. Each of the three other main Italian companies - Sarom, Garrone,
and Anonima Petroli Italiana - has a single plant on the mainland. One of the
smaller plants, Gaeta (40,000 b/d), was put on stream by Getty in 1957 and sold
to Italian interests in the late 1960s.
Future of the Industry
In early 1974 a study group within the Italian Ministry of Industry reported
that Italy would need at least 5.1 million b/d of refining capacity by 1980 -
an increase of 1.1 million b/d, or about 30% over the current level. The group
estimated domestic demand for main projects to increase to 3 million b/d in
1980 - about 45% above the 1974 figure. This implies an export capability of
about 2.1 million b/d. In light of subsequent developments, the estimated 1980
capacity and demand figures appear too high.
As of September 1974, a total of 16 planned Italian refinery projects were
on record - 8 new and 8 expansions - totaling 1.5 million b/d. These projects
probably have not advanced beyond the planning stage, largely because of the
present slack in Western Europe's refining industry. We have estimated that present
refining capacity will exceed estimated average 1975 product demand by 4.6 million
b/d. Product demand declined by an estimated 600,000 b/d in 1974 and is expected
to show almost no change through 1976.
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 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110007-9
1'xxnri/Sor. n,,( LNI Milan t-om bnnlu 1^4)
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itaiian
Refineries
Numbers In parentheses.
Indicate refinery capacity
In thousands of barrels
per day.
Yugoslavia
Augusln
Gob Lil ENI (00)
71 Montedison (300)
Exxon (210)
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 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110007-9
REFINING CENTERS OF THE WORLD: SINGAPORE
Singapore is the world's fourth largest port and the second largest non-US
port refining center, after Rotterdam. Its natural deep water harbor and its strategic
location astride the Strait of Malacca (the major Middle East/Pacific tanker route)
make it a particularly attractive point for refinery operations. Its petroleum
products can easily be shipped to customers in Japan and Southeast Asia.
Crude oil refining operations began in 1961 at 30,000 b/d. Capacity has
reached about 850,000 b/d and will exceed I million b/d later this year, almost
one-half of Southeast Asia's total. Desulfurization capacity consists of 90,000 b/d
residual and 135,000 b/d distillate. Four major international companies - British
Petroleum, Exxon, Mobil, and Shell - and a three-company joint venture own the
refining facilities.
Since 1960 the Singapore government has encouraged refinery construction
by its liberal tax policy designed to attract new manufacturing. It initially granted
the refining industry pioneer status permitting tax-free operations for up to five
years. The industry has since matured and no longer enjoys this advantage.
Singapore, however, still grants special tax rates on export profits, tax exemption
on profits resulting from plant expansion, and accelerated depreciation allowances.
Oil Supply and Demand
Singapore ranks fifth as a Free World center for petroleum product exports,
shipping 320,000 b/d to other markets in 1974. Oil product exports have remained
at 1973 levels in contrast to other centers which have experienced declines because
of falling world demand. Prior to 1974, Singapore's refinery exports had been
growing rapidly, at an average annual rate of 13%. Nearly 30% of these exports
normally go to japan and represent one-fifth of Japanese product imports. Other
major markets include Hong Kong, Australia, Malaysia and, until recently, South
Vietnam.
As in most export refineries, output of the Singapore facilities is weighted
toward residual fuel oil, normally about 40% of output. Domestic demand and
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 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110007-9
Singapore: Oil Product Exports
1974 Estimate
Thousand
b/d Percent
Japanese purchases are weighted heavily toward
residual fuel oil. Heavy fuel oil, largely bunkers,
normally accounts for roughly one-half of
domestic consumption. In 1974, Singapore's oil
consumption, including bunkers, fell 9% to
360,000 b/d.
Total
320
100
Japan
86
27
Singapore depends entirely on imports for
Hong Kong
51
16
its crude. Ninety percent comes from the Middle
South
with three countries, Kuwait, Saudi
East
Vietnam
42
13
,
%
`
Australia
32
10
/0, and 22%,
%, 22
Arabia, and Iran, supplying 28
Malaysia
26
8
respr ;;-, ply, in 1974. Neighboring Indonesia
Other
83
26
provids less than 5% of requirements, largely
because the principal producers in Indonesia -
Texaco and Socal - have no refinery interests in Singapore.
Shell, the first and most important Singapore refiner, put its originJl plant
on stream in 1961 at 30,000 b/d. Through a series of major expansions, it has
increased capacity to 350,000 b/d; this will rise to 530,000 b/d in the second
half of 1975 when additional construction is completed. Present desulfurization
equipment consists of 90,000 b/d for distillate and 20,000 b/d for residual fuel.
Singapore is one of Shell's major receiving and transsluping cent,,rs for crude
and products from most areas of the world. Its refining and storage facilities, located
on Pulau Bukum about five miles from Singapore city, have nine berths fcr tankers
of up to about 85,000 DWT, plus a conventional buoy mooring system that can
take tankers of up to 200,000 DWT.
Exxon began refining operations in Singapore in 1970. Since September 1974,
capacity has totaled 230,000 b/d. Refining facilities include 40,000 b/d of distillate
desulfurization. The Exxon refinery is located on another island about five miles
from the She" site. The tanker facilities consist of four berths with water depth
capable of receiving tankers of up to 85,000 DWT, as well as a single-point mooring
buoy for handling tankers of up to 250,000 DWT.
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 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110007-9
Mobil completed a 145,000-b/d expansion in 1973, which increased capacity
t; ~m 30,00(' b/d. The original plant, with capacity of 18,000 b/d, went on stream
in 1966. Present desulfurization equipment consists of 31,000 b/d for residual and
5,001) b/d for distillate. The refinery is located in Jurong Industrial Estate on
Singapore Island. This is adjacent to a bulk handling port developed by the
government 7 miles northwest of Singapore harbor. Its facilities include a
single-point mooring buoy 3 miles offshore to accommodate 250,000-DWT tankers.
Singapore Petroleum Co.
Singapore Petroleum Co., the newest refining operation, put its 65,000-b/d
plant on stream in the third quarter of 1973. This is a joint venture of the
Development Bank of Singapore, a government institution; Summit Industrial Corp.,
a company owned by Chinese interests from Thailand which also operates a Thai
government refinery under contract; and Standard Oil Co. of Indiana.
The refinery is located on an island between the Exxon and Shell refineries.
It has 40,000 b/d of residual desulfurization capacity. Tanker facilities consist of
three berths which can :,andle tankers of up to 85,000 DWT.
The small BP refinery dates back to 1962. Originally owned by Maruzen,
a Japanese company, it operated at a loss and was sold to BP. Its current capacity
of 26,000 b/d is uneconomical by present day standards. BP and Mitsuibishi were
considering a 'oint venture in 1973 to expand capacity to 170,000 b/d. This project
did not materialize, largely because of lack of a suitable area for the expansion.
The BP refinery is located on Singapore Island about 5 miles north of Shell's
facilities. It has only one jetty for oceangoing tankers of up to 33,000 DWT, plus
two jetties for coastal tankers. These facilities are inadequate for modern tankers
and oil trade. The refinery has no desulfurization rapacity.
Expansion Prospects
Singapore's refining capacity will exceed one million b/d in the second half
of this year when Shell's additional facilities begin operations. No further expansion
plans are scheduled.
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Two projects announced in mid-1974 havr, been postponed:
? A new 300,000-b/d joint venture refinery by two major Japanese
refiners - Maruzen and Daikyo - originally slateu for completion in 1977.
? A 135,000-b/d expansion by Singapore Petroleum Co. for which no
completion date was announced.
For several years, Singapore's refinery throughput has run well below capacity.
Shell's latest expansion, in the face of reduced petroleum export demand, will
presumably worsen the excess capacity situation. Most facilities are now operating
at less than two-thirds of capacity. Shell's recent offer to lease part of its capacity
to the Kuwaiti government was turned down. Even when world demand revives,
Singapore will suffer from the trend in Middle Eastern countries toward refining
a bigger share of their own crude.
Singapore- Refining Capacity as of 1 May 1975
Location
Capacity
(Thousand b/d)
Ownership
Total
846
BP Refinery Singapore
Tanjong Berlayer
26
British Petroleum Co.
Esso Singapore .
Pulau Ayer Chawan
230
Exxon Corp.
Mobil Oil Malaya
Jurong Indus-
175
Mobil Oil Corp.
Shell Eistern
trial Estate
Pulau Bukum
Royal Dutch/
Petroleum
Shell Group
Singapore Petroleum
Standard Oil of
Co.
Indiana, one-third;
Singapore Government,
one-third; and Sum-
mit Industrial Corp.,
one-third
Navigational Restrictions
Shallow waters - only 75 to 80 feet in several places at the southern end
of the Strait of Malacca and parts of the Singapore Strait - limit tanker size to
a maximum of 250,000 DWT. At its narrowest point, the Malacca shipping channel
30
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 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110007-9
is only 2-1 /2 miles wide, and the Singapore shipping channel is only I mile wide.
These are highly cony esti'd waters. Malaysia and Indonesia, which border the Strait
of Malacca, have been endeavoring unsuccessfully sin,:e 1972 to limit passage to
200,000 tonners. In January 1975 a 237,000-I)WT Japanese tanker ran aground
on a reef' at the southern end of the Strait, rupturing some tanks and spilling
about 25,000 barrels of crude.
Despite these conditions, crude shippers to Singapore and Japan continue to
use the Malacca route for ships of tip to 250,000 DWT. The alternative route
via the Lombok and Makasar Straits adds about 1,300 miles and five days to the
voyage from the Middle East to Japan.
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 Singapore Refineries
Approved For Release 2003/09/29
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