AgipPetroli

1. AgipPetroli APS in Downstream Oil Industry December 2001 Survey

2. Background In order to continue to position ourselves to assist AGIP with their supply chain initiative, we provide our in-depth understanding of what is going on across the Advanced Planning & Scheduling (APS) space in the downstream oil & chemical industry Editorial insights: PwC has a long relationship history and significant global implementations with the three largest APS vendors, I2, Manugistics and SAP-APO. However, their software was not originally designed to accommodate the downstream oil continuous process optimisation problem. They are all challenged by the differences between the oil business and their successes in consumer products and hi-tech. Their end-to-end solution vision, incorporation of the web, real time partner collaboration and use of sophisticated optimisation engines is considered to be state-of-the-art. Aspen Tech, another PwC alliance partner, has a long history (especially with a series of recent software acquisitions) of providing reliable optimisation tools to the downstream & chemicals industry. Aspen Tech is in the process of integrating their successful series of point solutions into an end-to-end, collaborative frame work that brings APS thinking and supply chain improvements to the downstream space.

3. Table of Contents Summarised in the attached is our PwC research, sorted by: • I2 References • Manugistics References • Logility References • SAP: APO & TSW References • Aspen Tech (with heritage company) References: • (PIMS): Refinery Linear Programming (LP) • (MIMI): Primary Distribution - Supply Chain Planning • AspenBulk & AspenRetail (Petrolsoft) – Primary and Secondary Distribution • PetroVantage - Web-based, hosted collaborative trading & logistics solution • A Separate Note on Lubricants • Related PwC Downstream Capabilities

4. APS Software fit Across Downstream Refinery Scheduling Customers Crude Supply Terminals LP Advanced Models Petrolsoft Exxon - Mobil Amoco (USA) TOSCO • Alliance (PIMS) • Exxon (Haverly) • Shell Europe (MIMI) • Petronas (MIMI, PIMS,RPMS) • AgipPetroli (RPMS, MIMI) Exxon Intl - Manugistics TSW Citgo Logility OxyChem - i2 Look to non-oil industry APS applications for full integration

5. I2 - Oil Industry References From the I2 website • Shell Europe & Asia: Feasibility study and proof-of-concept in the bulk supply area (Note: business case conducted by PwC consulting - client confidential) • Pan Canadian Petroleum Ltd & Tesoro Petroleum: (Being verified) • Trade Ranger: I2 is providing the Aspect content management module, this is not relevant to the bulk supply chain • OxyChem - Primary Distribution • Other PwC insights: • Developed a proof of concept bulk supply model in the USA, presented at I2 Planet Conference in 1999 • Also used with Caltex (in South East Asia) • This model has been recently refined (by I2 directly) with Shell in Europe

6. Manugistics - Oil Industry References PwC insights (Graham Newland - PwC UK): • Amoco USA: Implemented in primary distribution. This is the original Manugistics reference. Work done directly by Amoco. • BP Amoco: Multiple solutions - secondary distribution for North America; Collaborative Demand Chain for USA, European and Asia-PAC regions. • Exxon Mobil - co-developed a secondary distribution and terminal planning - stock replenishment and demand planning, plus distribution - for 17 countries on 4 continents. Also implemented demand planning for primary distribution. PwC were involved and built the integration environment with SAP IS-Oil. • Shell - Implemented Demand Planning solution in Rhinetrack and Hellas envelopes, with some PwC involvement. • Repsol: Implemented a full supply chain solution in Spain and Portugal of demand planning, replenishment, supply planning, manufacturing scheduling, strategy planning, master planning and transport planning for primary and secondary operations.

7. Manugistics - Oil Industry References cont’d PwC insights (Graham Newland - PwC UK): • Engen - implemented Demand Planning & Strategic Planning (for sourcing) for primary distribution and a full bulk distribution planning solution for secondary distribution • Elemica - Manugistics provide the distribution, collaboration, and replenishment engines for their chemical website consortium • Norsk Hydro - implemented a transportation solution for primary and secondary operations for their European region

8. Logility - Oil Industry References PwC insights: Logility is a small Advanced Planning & Scheduling (APS) system provider. Long oil industry history with their relationship with Insight - management science/operations research boutique: • They have good knowledge of the bulk chemicals market with clients such as Fina Oil Chemical , Hunstman and Eastman. • In addition they have implemented demand planning and inventory planning modules in the downstream notably with CITGO Petroleum, in Tulsa, Oklahoma. CITGO has JV alliance with PDVSA - Venezuela

9. SAP APO & TSW - Oil Industry References *** PwC insights: • There are currently no references on SAP-APO in downstream industry: the product is focused on Hi-tech and CPG industries • SAP IS-OIL TSW (Trader Scheduler Workbench) module beta site implemented in CITGO. SAP-APO a future possibility - but CITGO investigating other alternatives with PwC. • SAP IS-OIL TSW module under in -depth development at Equiva trading (Shell/Texaco/Star Enterprise USA JV) by SAP directly • We understand that Saudi Aramco is also implementing TSW • Chevron USA investigated SAP-APO, Demand Planning prototype & TSW with assistance from PwC • Next version of TSW currently under development by industry partners (Including: BP, Citgo, Equiva, Exxon-Mobil, Shell and Valero, is due out 2nd qtr 2002.

10. Aspen Tech - Downstream Decision Support Tools *** PwC insights from out 18 month alliance partnership with Aspen Tech: AspenTech has a combination of “end to end” decision support solutions for the downstream oil (and chemical) industry: • PIMS – single and multiple refinery planning & crude selection tools • RefSched/ Orion – refinery in-plant scheduling tools • MIMI - A suite of supply chain optimisation applications • Demand Management & Forecasting • Planning & Scheduling • AspenRetail (formerly Petrolsoft) - Secondary Distribution, site replenishment, inventory management & delivery fleet optimisation • AspenBulk – Primary Distribution, terminal replenishment and logistics scheduling and optimisation and demand consolidation for refinery optimisation and planning (PIMS) • PetroVantage – Hosted collaborative trading and logistics solution

11. Aspen Tech - PIMS References PIMS - In refinery & chemical plant Linear Programming (LP) optimisation the PIMS toolset has market leader position - 80% of the market has PIMS with over 200 implementations worldwide. Examples of companies that have standardised on PIMS; • Exxon/Mobil • BP Oil • Shell USA • Phillips/Conoco • Statoil • Valero • Sinopec • Agip Petroli (?): check with D’andrea what they have implemented

12. Aspen Tech - MIMI References *** Heritage Chesapeake Software, MIMI - A suite of package applications for supply chain optimisation. Primarily used in chemical and other process industry applications • Hundreds of worldwide chemicals & process package implementations • Some applications in bulk primary distribution have been developed • Implemented at Nynas, Sweden • Implemented in Shell, RhineTrack

13. Aspen Tech - Petrolsoft & AspenBulk References*** Heritage (Petrolsoft), renamed “AspenRetail” - Secondary Distribution, site replenishment & delivery fleet optimisation - more than 50% of US retail volume goes through this tool • . Tosco-Phillips, beta site • Chevron, Chevron Canada • Ashland • Exxon USA, Mobil • Amoco - Arco (USA) • YPF • Keenan Transportation “AspenBulk” – Primary Distribution, terminal replenishment and logistics scheduling and optimisation, plus demand consolidation for use by PIMS • Williams Energy • Yukos (Russia)

14. Aspen Tech – PetroVantage References PetroVantage is a web-based, hosted software solution that integrates decision support tools with a collaborative workflow environment and a dynamic deal negotiation system to help evaluate, transport, and trade crude oil, intermediates and refined products. • PetroVantage was commercially released in October, 2001 • PetroVantage has several USA clients working on pilots, including CITGO, Premcor , and Williams Energy • PwC is a key implementation partner with PetroVantage

15. Aspen Tech – AEP: Aspen Enterprise Platform The Aspen Enterprise Platform (AEP) enables “end to end” downstream supply chain connectivity. The solution is currently being launched so there are no references. It is based on an established mature technology platform, primarily provided by IBM. Key components include: • Message-oriented middleware to integrate applications within an enterprise; accelerating responsive, event-driven business processes with live business information • AEP-enabled Aspen Tech applications; as well as adapters to common third- party applications, integrated via the middleware backbone • Enterprise Application Integration (EAI) technologies; to integrate Aspen Tech business process solutions with third-party systems, including SAP • B2B technology; to conduct secure business transactions with trading partners via the internet -- Including, role-based security management, common data models and data representations - specifically defined for process industries

16. A Separate Note on Lubricants The packaged lubricants business is more of a fit with the current APS thinking and software offerings because manufacturing & blending is a batch process and the transportation-delivery modes fit a consumer products business model. Additionally in the USA, packaged lubricants are sold through mass merchandisers and auto parts chain stores - which have implemented sophisticated Vendor Managed Inventory (VMI) and replenishment systems. PwC insights include: • i2 are front runner with BP/Castrol to implement APS solution across whole Castrol supply chain • Manugistics has implemented full supply chain planning solution - demand to manufacturing for BP Castrol UK lubricants. • Mobil also has full lube plant scheduling and blending supply chain solution from Manugistics. • Valvoline investigating Numetrix for demand planning -- a boutique vendor, now owned by JD Edwards

17. Related PwC Downstream Supply Chain Capabilities: • PwC has implemented a number of SAP-BW downstream & chemical data warehouse (DW) projects for Chevron & OxyChem in the USA. AGIP has requested an analysis of the design and structure of their legacy “Dorsale Supply” system. The ability to re-use or leverage this system will depend on its overall DW structure and data modeling correctness. This will be one of the major outcomes from this project analysis stage. • Over the years, PwC has invested heavily in the PwC*STARS software which covers most of the bulk supply functionality of interest to AGIP. It is event-driven and designed for the schedulers. It is installed at BPUSA, Koch Refining (2nd largest USA private company -Kansas) and PDVSA (South America). PwC*STARS can be part of a target application architecture or used as an analysis framework and best practice proof-of-concept environment. It does “what-if” analysis, but is not an optimisation tool, e.g., does not cover LP type of crude selection. PwC has detailed information on the processes and functionality that PwC*STARS includes.