TOYO Awarded Oil Refinery Modernization Project in Brazil

Toyo Engineering Corporation (TOYO) has received a contract from Petroleo Brasileiro S.A. (PETROBRAS) for the modernization of the fourth biggest Henrique Lage Refinery (REVAP) in Brazil, situated in the in the City of Sao Jose dos Campos, State of Sao Paulo, Brazil, with a view to increasing its heavy oil refining capacity, and also enhancing its environmental protection measures. This project involves construction of the Delayed Coker Unit with a capacity of 31,500 BPSD, the Coker Naphtha Hydrotreating Unit with a capacity of 18,900 BPSD, as well as related offsite facilities.

TOYO's scope of work of the contract includes detailed engineering, procurement of equipment and materials, and construction of the plant on a Lump sum Turnkey contract basis, as well as commissioning support on a reimbursable basis. The contract is worth about US$ 700 million and the project is scheduled to be completed in the first quarter of 2009.

PETROBRAS regards this project of prime importance in the sense that it will upgrade heavy oil produced in local oil fields to supply environmentally friendly petroleum products that comply with international standards, as well as to realize reduction in the amount of imported light oil. Financing of this project will be jointly arranged by Mitsui & Co., Ltd. and ITOCHU Corporation and prepared by the Japan Bank for International Cooperation and the Sumitomo Mitsui Banking Corporation.

Since 1996, TOYO has been awarded numerous energy-related large projects by PETROBRAS such as a gas processing facilities, pipelines, and heavy oil upgrading facilities. This is the fourth oil refinery modernization project which TOYO successfully received the contract from PETROBRAS. Customer's trust in TOYO's project execution capability, quality of technology, price and so on, led TOYO to the award. TOYO will further endeavor to expand their business in Brazil where further developments in the field of energy-related projects, including heavy oil upgrading and environmental protection measures, are expected.