pF eo Engineering QBE Risk Improvement Recommendations Update Report Centro de Refinacion Paraguana Estado Falcon Venezuela Recommendations Update Visit Made: March 5'.8" 2012 Prepared on behalf of QBE Marine and Energy Syndicate 1036 Plantation Place 30 Fenchurch Street London EC3M 3BD Prepared on behalf of \;-byRoger Gregory —_Ref.2012/139 pF Engineering 4 Heath Villas Phone +44 (0) 77 03 73 11 16 Plumstead e-mail rogeregkb@aol.com London SE18 1PGContents Basic Information, Values and Estimated Maximum Loss. Summary... Company Administrative Structure Changes Operational Status and Significant Events. Maintenance Status and Significant Events. Inspection Status and Significant Events... Technical Services... = Safety, Fire Protection & Securiy .. 10. Notable Incidents 11. Loss Estimates Update... 12 Risk Improvement Recommendations Update. 12.1, Recommendations from 1983 Survey . 12.2, Recommendations from 2002 Survey... 12.3. Recommendations from 2005 Survey 12.4. Recommendations from 2007 Survey 12.5. _ Recommendations from 2010 Survey... 13. Observations = ©eNONseON= ‘Cover Picture: PVAY-5 at Amuay. S8SNBR ‘This report follows visits to the PDVSA Centro de Refinacion Paraguana, (CRP) made at the request of Underwriters, to assess and report on progress made in compliance with recommendations made by underwriters’ risk engineers during their survey visits in 1993, 2002, 2005, 2007 & 2010. It also contains information on the reported operational status of the various units, significant operational events, significant maintenancelinepection events, details of any notable incidents or accidents reported to the risk engineers during the survey, and an update to the estimated ‘maximum loss. For further factual information on key details ofthe risk, reference should be made to the Risk Engineering Report from the last full survey carried out on behalf of QBE in October 2010 ‘The author retains drawings, photographs and other documentation, acquired whilst carrying out the survey, which can bemade available should the need arise. All enquiries should in the first instance be directed to: ‘The Engineering Manager, ‘QBE Marine and Energy Syndicate 1036, Plantation Place, 30 Fenchurch Street, London, EC3M 3BD It should be nated that any liability which «6° Engineering may incur in tort (including but not limited to negligence) arising out of or in connection with this report shall be excluded absolutely Itis acknowledged that this repor is not intended to identify all hazards which may exist nor isit intended to be aan exhaustive review of all possible eventualities, Any recommendations for risk improvement contained in the report are purely advisory and the decision and responsibilty for implementation rests vith the site's management. Responsibility for underwriting decisions rests with the underwriter in all cases. No responsibilty can be taken for the accuracy of any information that has been provided by the client, (the assured, the broker or the underwriter) for the purposes of this report. OBE Discinimer This report hos been provided solely to provide information to Underwriters about the facilities referred to in the report ‘ond the project management systems in operation at the fecilties, for the purposes of the Underwriters’ risk ‘ssessment. The report gives the opinion of QBF Underwriting Limited in respect of the exposure to the insured perils, the quality of the toss contro! measures in place and may also make recornmendations for risk improvement. The recommendations submitted in this report (if ary) are purely advisory and are for the purpose of assisting the insured in risk controf and safety assessments. tis, however, not intended to imply that no other risks exist or that no other precautions need to be token. No guarantee is given as to the accuracy, viobility or completeness of any of the recommendations provided or as to the content of the report. The report does not guarantee, assume or warrant in ary way that the Owners/Operators are in compliance with ony Jaws, regulations, codes of practice or any other fegal or industry requirement or guidance applying to the facilites. (QBE Underwriting Limited accepts no liability whatsoever for eny errors or omissions in the report or the consequences of relionce on the information provided. PDVSA Centro de Refinacién Paraguana Ref 2012/139 Page 2 of 54 Recommendations Update First Draft Date 03 “foo :2Basic Information CLIENT ORGANISATION. "OBE Marine and Energy Syndicate 1036 (COMPANY SURVEYED Petréieos de Venezuela LOCATION ‘Centro de Refinaoion Paraguana (CRP) Amuay and Carden Refineries These are essentially two refineries, operated as a combined system. Management, maintenance, etc are common to the two. VisiT DATES Sto 8 March 2012 VISIT LEAD BY: Roger Gregory 236° engineering for QBE Marine & Energy Syndicate 1036 ‘ALSO ATTENDED BY David Dalla Costa Charlis, Madrid, Europe). PRINCIPAL COMPANY PARTICIPANTS ‘Omar J Bravo ‘CRP General Manager Jesus Malpica Technical Ronald Pefia Seguridad Industrial Ramon Uzcategui Operations Management Eddie Miguilene PDV Maintenance Blisaul Mogusiena SIMIC Management Carmelo Lépez Process Management Amuay Ricardo J. Ramirez M. Process Engineer Rubén Boscan Manager Operations Cardon Zoilo Ronan Maintenance Luis Heredia Technical Wiliam Medina Finances Luis Guerro Operations Hector Martinez Isc Alberto Rodriguez SIHO Pecro Suarez GSA Carden Felipe Semeco Operations SMA Fidel Fuenmayore Manager Routine Maintenance Amuay Francisco Montero. Operations Nelly Rivero SIHO Ramon Cosi PCE Jose Vargas Technical ‘Oscar Salazar Maintenance ‘Angel Quintero Maintenance Denis Ruiz Technical Luisa Lugo Industrial Safety Juan Joe Ramirez Alexes Bracho Q. German Bustus Industrial Safety PCE Operations Industrial Safety Javier Goitia Finances Maritza Vallejo PDVSA Corporate Insurance Sarah Claffey Cooper Gay. London’ Diana Renfigo Cooper Gay, Colombia Contributions were made by others during the presentations on recommendations and the brief site tour Roger Gregory ex" Engineering on behalf of QBE Marine & Energy ‘Syndicate 1036 ‘SUPLEMENTED BY: Market Report by Roger Gregory a6" Engineering on behalf of QBE Marine & Energy Syndicate 1036 from visit dated October 2010 PLANT ADDRESS: Punto Fijo, Paraguana, Estado Falcén, Venezuela PLANT TYPE AND CAPACITY: ‘Amuay: 635,000bopd, with distillation, lubricants, hydrotreatment, FOCU, HF alkylation, delayed coker and flexicoker (FCCU). Cardon: 305,00000pd, with distiiation, lubes, hydrotreatment, FCCU, HF alkylation, isomerisation, delayed coker. LATITUDE, LONGITUDE, ELEVATION & AREA: ‘Amuay: 11°37.6N, 070°13.3W, Elevation 5 fo 20m ams| Area ~ S60ha, Cardén: 11°45, 070°11.5'W, Elevation 5 to 20m ams! Area = 420ha SITE SITUATION PDVSA Centro de Refinacién Paraguana Recommendations Update First Draft Date 03 roi. ‘Coastal sites, 14km apart, on south-west comer of Paraguana peninsula, ‘on the Golfo de Venezuela, Light population, no signiftcant adjacent industrial exposures. Nearest town, Punto Fijo, approximately midway between the two sites. Ref 2012/139 Page 3 of 54 a