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BP-Husky to invest $400 million in Toledo refinery

01/18/2010

BP-Husky Refining LLC today announced a major equipment upgrade at the
BP-Husky Toledo Refinery in Oregon, Ohio.

The project will improve the efficiency and competitiveness of the refinery by
reducing energy consumption and lowering operating costs. The estimated $400-
million investment will create, on average, an additional 200 temporary construction
jobs over the next few years, totaling one million man-hours.

“This project will be the largest investment in the refinery in quite some time,” said
Ron Unnerstall, president and refinery manager of BP-Husky Refining LLC. “It will
put hundreds of people to work this year, protect existing jobs, enhance energy
security for the region and improve the plant’s overall efficiency while also improving
competitiveness.”

The project involves replacing two older catalytic reformers and a hydrogen plant
with a single state-of-the art 42,000 barrel per day (bpd) reformer. The new unit will
increase the refinery’s gasoline production, upgrade existing infrastructure and
improve overall plant reliability.

Catalytic reforming is an essential part of the oil refining process. Reformers
use special reactors and catalyst to transform naphtha to high-octane gasoline
blend stocks. The latest technology for both reforming and catalyst
regeneration will be used for the project.

The new reformer will require less energy than the two it replaces and
operate at lower pressures resulting in higher production of gasoline and
hydrogen per barrel of feedstock. The gasoline product will also have lower
vapor pressure, helping the refinery meet future environmental regulations for
gasoline.

The new equipment will also help the refinery meet future environmental
regulations. By utilizing the higher-efficiency reforming technology, BP-Husky
expects to reduce overall regulated air emissions by more than five percent.
Construction on the reformer project is scheduled to begin in 2010. The project will
be completed in 2012.

BP – Husky Refinery LCC is a joint venture between BP and Husky Energy.