79715 IBRD INTER 1\1 IH I 0 r~ AL BANK FOR RECONSTRUCTION AND DEVELOPMENT WASHINGTON (D.C.) REPORT ON fUEL OIL SUPPLY IO JHE .CJ MAO FACTORY 0 OF TOBLIGBO (TOGO) R.T. N . 7'9.2 7 .Issued by :01 LM 1/L Ventura Approved by :E.Falvella Milan, November 1979 TECHINT I N D E X lc FOREWORD page 1. -2 ~, . STJ~~£r.1A·RY" ANJJ CON.Cl.USIONS Tl 2. 1" SUJviHARY AND REPORT 2.2. CONCLUSIONS AND RECOMJ"~lENDATIONS TT 9. 3. INVESTIGATTONS AND COMf/l:ENT~ 16. 3, 1. COl\'IPARISON OF FUEL OIL SPRCIFICATIONS IT 16. 3.2. AVAILABILITY OF FlJEL OIL STORAGE Tl 17. 3.3. FUEL OIL HANDLING AND RAIL TRANSPORTATION Ti 3.4e DESCRIPTION OF REFINERY PLANTS AND FACILITIES TT 20. 3.5. TYPE OF CRUDE PROCESSED BY REFINERY AND SULPHUR CONTF.NT IN PRODUCED FUEL OIL 1T 22. 3.6. REFINERY POWER SUPPLY AND ELECTRICAL STAND-BY PROVISIONS Tl 23. 3.7. PRODUCT MARKETING AND FINANCIAL TT 3.8. IMPORT (AND INTERCONNECTING FACILITIES) OF OIL WHITE PRODUCTS IN TOGO Tl 3.9. PRESENT AND PROJECTED DEMAND OF FUEL OIL PRODUCTS 3 3. TECHINT 3. 10. FUEL OIL SUPPLY IN CASE OF LONG SHUT-DOWN OF REFINERY narre l.0 35o 3. 11. DRAFT- OF CONTRACT FOR SUPPLY OF FUEL OIL n 36. 3 0 12. SUPPLY OF FUEL OIL OF CIJVIAO BEYOND 1989 II 38o EXHIBITS : - EXHIBIT 1 Schematic block diagram of Refinery electric supply - EXHIBIT 2 Future demand of electric power ln TOGO EXHIBIT 3 Historical s~ries of fuel prices at Genoa and Rotterdam market;~'; '>~ :: 1973 to September 1979 EXHIBIT 4 Draft.of Contract for supply cf fuel oil EXHIBIT 5 Visit paid in Togo EXHIBIT 6 Pictures shot at CIMAO factory TECHINT FOREWORD The International Bank for Reconstruction and Development ( IBRD) is financing a clinker factory in TOGO;- which is in the stage of starting operation and for which fuel oil is expected to be supplied by the local_Refinery. The clinker factory is owned by Ciments de 1' Afrique ~:Ie 1 1 Ouest ( CH1AO) and its production should meet Ule needs of TOGO, BENIN and GHANA, while the refinery is owned by the Soci~t~ Togolaise des Hydrocarbures (S.T.H. ), fully controlled by the Government of TOGO. Because IBRD realized that the S.T.H. refinery was experie~c ing operational problems, which might jeopardize the fuel supply to CIMAO plant, it was decided to send a m1ss1on to TOGO to investigate the matter on the spot. In this respect, IBRD asked Messrs. TECHINT to assist them in evaluat~ing refinery problems with a view of recommend- ing necessary steps to solve those problems and of identi fying alternative sources of supply, should the refinery be shutdown or unable to operate on continous , basis- The mission of IBRD, attended by Mr P. Koenig-(IBRD) as Mission Leader and by Mr. W. Bertelsmeier_ (IBRD) and Mr. L. Ventura (TECHINT) as members, visited the Country from the 16th up to the 26th October 1979. The present report, issued by Mr. L. Ventura of OIL & GAS DIVISION of TECHINT, gives the results of investigations ca£ ried out in TOGO together with the conclusions and recommen- dations which may be inferred from the visit paid to that Count_ry. TECHINT 2. 1. OBJECTIVES OF MISSION The objective of IBRD mission, as it has been anti- cipated, was to ascertain the operational problems of Lome Refinery, to recommend solutions to overcome them and to identify alternative sources of fuel oil supply for the CIMAO factory in the event that local refinery should be shutdown or should not operate on continous basis. Namely, the mission should have focalized the following points a) to determine whether Lome Refinery is equipped to supply CIMA0 1 s fuel oil requirement continously with regard to grade, quality, capacity, efficiency and reliability of operations b) to determine alternative sources of fuel oil supply during a possible temporary or permanent shutdown of the Lome Refinery, using either existing facili- ties or new facilities as required, includin~ storage capacity for imported fuel for CIMAO if necessary c) to visit the Lome Refinery to gat.her informat;ion on - capacity utilization - limiting factors and bottlenecks - power supply from grid and standby generation - suitability for processing different kinds of crude (including crude with a high sulphur content) - equipment modifications required if alternative crudes were to be used - demand for the refinery 1 s products, listing prin- cipal customers - operating costs and revenues - financial performance of the refinery d) to visit existing fuel oil import and handling faci- lities in TOGO, including transportation and storage facilit.ies e) to prepare an analysis of past and projected demand for oil products in fOGO TECHINT 3• f) to prepare a preliminary indication of the refinery modifications required to meet the long term demand for oil products (as projected in above point c), including the preferrPd crude oil type, together wit11. an order of magnitude estimate of t.he capital cost of such modifications g) to identify, to the possible extent) long term solutions to the problem of supplying TOGO's inteE_ nal requirements for petroleum products (including those of CIMAO) from the existing refinery in the most economic way h) to reconwend standby arrangements in case of possible temporary prolonged shutdown of the refinery, modi- fications and/or required improYements to increase capacity utilization, efficiency and profitability of the refinery and the type of crude to be used with the internal modifications required or at least desirable IBRD and Messrs. TECHINT agreed upon that a report on the objectives of the mission should have been prepared in the two weeks next to the return of the mission from TOGO and discussed in Washington at a later stage, if so requested by IBRD. TECHINT 2. SUMMARY AND CONCLUSIONS 2. 1. Summary of Report The present Report consists of FOREWORD Describes the reason for which IBRD decided to send a mission to TOGO, its main aim and the assistance requested to Messers TECHINT. 1. OBJECTIVE OF MISSION Illustrates the objectives of mission and, con sequently, the intent oi present Report. 2. SUMMARY AND CONCLuSIONS Describes the content of the various chapters comprising the Report, the conclusions of inv~ stigations carried out and submit the recommen dations proposed by Messers TECHINT. 3. INVESTIGATIONS AND COMMENTS Gives in detail the investigations carried out to meet the objectives of mission with relevant comments. The description of the investigations adheres in as m~ch as praticable to the list of objectives given in paragraph 1. Namely : 3.1. Comparison of fuel oil specifications Gives a comparison between the fuel oil sp2cifications prescribed by Polysius S.A., the manufactures of CIMAO's main equipment TECHINT and those relevant to the fuel oil prod~ ced by S.T.H. R~finery. -Substantially, this product satisfies the requirements of CIMAOo 3. 2. Availability of fuel oi~-~J::_;e Summarizes the availability of fuel oil storage both at CIMAO Factory and S.T.H. Refinery, and gives the number of days of reserve for CIMAO operation. 3. 3. Fuel oil handling and rail .~ra~~E.s:rta!i£!2-. Describes the loading and unloading faci- lities at the Refinery and clinker factory, respectively, the arrangement adopted for rail transportation and its timing and confirms that no serious problem would be expected in connection with the fuel oil handling and its transportation by railway. 3.4. Description of Refinery plants and facilities Gives the general outline of units and facilities of S.T.H. Refinery, which ap- pears to be a well designed and construe! ed plant, capable of supplying high quality products and, with a sufficient tank farm for a smooth operation 3 but with very limited possibilities of production expansion because of topping size. TECHINT 6• 3.5. Type of crude processed by Refinery and sulphur content in the produced fuel oil Describes the type of nigerian crude::C.,·presmtly processed by the refinery, and the resulting sulphur con- t.ent in the produced fuel oil. Moreover, i t emphasizes that practically there is no convenience in using cheaper crude with hi - gher sulphur content than that of nigerian crudes. 3.6. Refinery Power supply and electrical stand-by pro- visions Gives the various sources of electrical power sup- ply to Refinery, their present incnveniences and the stand-by facilities together with the descrip- tion of provisions, presently under study, to elimi_ nate voltage variations.Furthermore the present r~ liabil ty as well as that expected in a very near future is assessed and conclusions reached in this regard confirm that no major problems should be arl sen from this important operating factor. Product marketing and financial performance of the Refinery Explains the atypical market of white oil products in Nigeria, which is remarkably remunerative for both S.T.H. Refinery and Marketing Depot (owned by Soci~ te Togolaise d 1 Entreposage S.T.E.) when the white pr£ ducts of SXH~Refinery are exported and the internal demand of TOGO is satisfied by importing white pro- ducts at care of S.T.E.As to the fuel oil the poten- tial capacity of SXH.Refinery can cover the internal demand at a satisfactory price based on that relat- ing the Rotterdam market. Eventually, details are given on the operating costs and revenue of refinery which are such to allow a good financial performance of the sam~. TECHINT 3. 8. (and intercol}Tlectin~~ (acili ties) of oil .=r.:.~_port -~vhi te 2ro ~S:.!_,s -~E.l,.~TQQC . GlVes ' . -~­ f ur th.er d e~al-S as to the import by &1~E. of oil white products as to the quantities, abroad purchasing pricesJ inside country selling pri ces as well 2,s the size of s·torage "cank farm at ·the S.T.E. Marketing Depot together· wi"'ch a descrip- tion of- interconnecting facilLt::Les to S:r.H. Refine- ry and Lome oi1 sea. ·terminel o Reports the few hystorical data concerning the inte_£ nal consumption of oil products in TOGO together with a tentative projection of future demand i~ the coun try. Conclusions are that ac: to the white.products 3 the capacity of refinery ~~ largely-in excess to the pro- jected demand in the coming.15 years while the pro- duction of fuel oil is just enough for the projects presently under excution.or study. ) 3. 10. Fuel oil supply in cas~:...~vn in paras 3 ~ 7 and 3 o 8, the market of white product is disconnected from that of fuel oil, contrary to what generally happens elsewhere. TECHINT 13. Should the economical advantages, which come from this situation to both ~he S.T.H. and S.T.E., fail or anyway decrease, then the fuel oil availa- bility returns.to be tightly connected with that· of white products and the mutual relation between the produced (or available) quantities drastically changes, especially on. the medium/long termc Ui1.fort.unately ,no serious evaluations can be done in the light, of unp-r'edi"c"ce>bili.ty· which governs nowadays the market of crude oil and its derivates. The only· reasonable suggestion which may be given in this respect is that of considering, even during normal operation of refinery and with no major~ increase of local fuel oil demand, the import of fuel oil. d) In consideration of the problems outlined in the above point, efforts have been spent in modifying the existing draft of contract to govern the oil supply from S.T.H. Refinery to CIMAO factory, with the aim of extending its duration and limiting the right of recess to the Customer (CIMAO) only (please refer to para 3.11 and E~IIBIT 4). Once signed, such a Ctmtrac·t would overcome t.he uncertainty deriving from commercial factors out- lined in above point b) and leave the reliability of fuel oil supply depending upon· technical factors only. e) As a consequence of above conclusions, the remaining factor ·which might affect the operation of CIIviAO factory is a prolonged shutdown of Refinery, because of lacking supply of crude or plant failure. To face such an inconvenience it is compulsory to import medium siz8 fuel oil cargoes (let us say 40.000 ton cargoes) from abroad via the existing receiving facilitie~. On short/medium terms such a solution does not require necessarily additional storage facilities. As to the possib~le sources of fuel oil please refer to the EXHIBIT 3. By the way, on long term the above solution together with the replacement of nigerian light crude with TECHINT higher residual fuel crude is also to be adopted for facing possible continuou~ lack of fuel oil production. In this case addit~ional storage faci- lities (2 x 25.000 cu.m. tanks) are recommanded ' .c with an estimated present investment cas-e or about 2, 000,, 000. , US$ • , These additional facilities shall be the ~efinery tank farm. Alternatively, should the managemen~c, of i~efinery agree upon, i t is feasible to convert some of crude tanks in storage tanks for fuel oil with a present investment cost of about 2Dll,OOO.US$ only. f) Eventually, in view of continously increasing diffi culties in supplying crude or its products, i t seems very useful to consider on long.terms (i.e. beyond the next ten years) possibility of using coal instead of fuel oil by preparing a small terminal at Lome Port and utilizing the return to CIMAO factory of empty rail trucks, used for clinker transport~tion from the factory to the port (about 75 Kms. away). The use of coal seems quit:;e feasible (with :.)mi_·ted modifications) from the point of view of equipment installed (manufactured l:.Ly Polysius S.Ao) in the CIMAO factory. Howe~er, the overall feasibility of replacement of fuel oil by coal shall constitute the object of a separate study. On the basis of data and evaluation given above, the following recommendations may be submitted : Firstly : CIMAO should tightly follow the steps, presently under way, to improve the electrical supply to Refinery as well as the repairs of two stand by generators of Refinery, which are nowadays out of order. Secondly: CIMAO should sign the supply contract for fuel oil as recorded in EXHIBIT 4, which was discussed and agreed upon 1n TOGO. TECHINT 15. Thirdly CIMAO should be, directly or indirectly through S.T.H., ready to import fuel oil in the case of prolonged shutdown of refinery (and have the ensurance of utilizing existing refinery fuel storage to receive import fuel oil cargoes as per EXHIBIT 4. ). Fourthly On long terms, presumably after the 1989, CIMAO should consider the necessity of importing fuel oil on normal basis, and therefore, the increase of fuel oil storage shall be implemented by erecting new tanks or by ac:fapting some of existing crude tanks in the area of Refinery tank farm. Fifthly Should the price of crude increase more than any pessimistic forecast, then CIMAO should study the feasibility of utilizing coal instead of fuel oil. TECHINT 16. 3. I~VESTIGATIONS A~D Co:/>1Jv1ENTS 3. 1. COMPARISON OF FUEL OIL SPECIFICATIONS POLYSIUS S.A., the manifacturer of CIMAO plants, has given the following specification~ for fuel oil to be used: - Calorific heat (inferior) 9.500 Kcal/Kg Min - Sulphur content 2.5% wt Max Asphaltene content 4% wt Max - Water content .1.5% wt Max - Sediments 0.25% wt Max - Cl content 0.04% wt Max - Viscosity at 50 °C 440 est Max - Flash point 70 oc Min Polysius advised not to use fuel oil obtained by blending different types of residual fuel because the resulting fuel oil would not be homogenous. They furthermore said that a high wax content could create problems such as the obstruction of filters. Comparing the above specifications with those of the fuel oil produced by the Refinery we can concl~ de that all the specs are in line with requirements, exception made for the wax content. In this respect i t is recommended that CIMAO should take special care in preheating fuel oil so that its temperature will not drop below the pour point equal to 40. °C. TECHINT 17. AVAILABILITY OF FUEL OIL STORAGE CH•lAO at; Tabligbo has N° 2 tanks for fuel oil storage each one of 3. 000 cu .m capacity, equipped with steam coils. The reserve of Tabligbo is therefore of less than ~15, days of plant operation having fixed the daily consumption at 1.200.000 = 364 t/d 330 In the LOME Refinery the tanks available for fuel oil storage are N° 2 x 25.000 cu.m. The Refinery Management cannot guarantee a minimum storage to be always available ( in case of Refinery shut down) in order to assure t.he fuel oil supp_ly to CIMAO, but for reasons connected with normal refinery practice Managemedexcludes to have at any time l~ss than 12.000 cu.m of fuel oil stored, which corresponds to 12.000 x 0.92 30 days of reierve for 364 CIMAO operation. TECHINT 18. FUEL OIL ~ ,.. HANDLING ili~D RAIL TRANSPORTATION Rail tanker loading facilities which provide the con temporary loading of 3 rail road tankers by 4 loa- ding arms, have been recently installed in the LOME Refineryo As the refinery will only load 6 days per week, the daily load from 1'<'ionday un-til Saturday will be _3 6 4 X~ 42 5 t ~ 6 This quantity will fill 12 rail tankersQ The loading operation of 12 tankers is foreseen to last 5 T 6 hours. Refinery Management has pointed out the necess~ty of loading daily all rail tankers in one shift wit~ out shipping operation, in order to limit the requi:_ rement of loading to only one shift per day. Therefore i t was -stated that all 12 rail tankers will be loaded starting from 6 in the morning until 12. Consequently at 9 a.mQ N°6 rail trucks can already be fully loaded and ready for transportation to Ta- bligbo. The transport as per agreements wjth . the C. F. T. ( COMPAGNIE FERROVJAIRIE TOGOLAISE ) representative will be made in two trips, the first from 9 to 11 and the second from 15 to 17 9 The empty rail tankers should be returned to Refinery also 1n two trips, one from 18 to 20 and the other from 0 to 2. Therefore at 6 a.m. the 12 empty rail trucks will be surely back at the refinery and ready for loading in one shift as requested by the refinery Hanagement, At CIMAO factory unloading facilities have been provideq which allow the contemporary unloading of 4 rail tankers in one hour. The unloading manifold and all the suction and di- scharge piping of the pumps are insulated and steam traced. The pumps available are 3 with an output of 150 cu .m/.h each" Only one pump in service is enongh t.o unload 4 cai:l tankers in one hour. TECHINT The design loading temperature of fuel oil not less than 47 °C. As the fail tankers are als0 insulated and the ambient temperature doesn't go below 20 °C, the temperature decrease foreseen d.!:.!; ring transportation from LOME to Tobligbo is not considerable and in any case is to be excluded a temperature drop below 40 °C, which is the pour point of fuel produced by refir:eryo The first loading -tr.ansportation and unloadj_ng of 4 rail tankers took place on October 22nd with Lhe attendance of IBRD missiono TECHINT 20. DESCRIPTION OF REFINERY PLANTS AND FACILITIES The refinery owned by S. T .H. (Societe Togolaise des Hydrocarbures) has a total capacity of about 20,000 barrels/day 0f crude (= 1,000,000 t/year). It consists of: a) A topping plant where a head cut including kero is separated from light and heavy gasoil and from fuel oil; b) A catalytic desulphurization plant where the said head cut is desulphurized up to a high degree of purity; c) A splitting plant where the head cut is split into light gasoline, heavy gasoline and kero; d) A catalytic reformer for treatment of heavy gasoline to increase the number of octanes and transform it into reformed gasoline. The products of the refinery are Fuel Oil as it is produced 1n the topping plant; Gasoil as a blend of light and heavy gasoil com1ng out of topping column and after steam stripping for the elimination of last light hydrocarbons; Kero as split from the head cut; Premium Gasoline as a blend of light and reformed gasoline; Regular Gasoline in small batches, under special order and not as standard production; LPG recovered from stabilizing both light and reformed gasoline. LPG until now has been used only for injection in premium gasoline batches not requested with special vapor pressure restrictions, while the balance has been used as fuel in the plant furnaces. This last utilization is obviously penalizing the economy of the refinery and therefore an LPG bottling plant is presently being designed to meet also the high demand in the Country. TECHINT 21. In general J the refinery is well designed and constructed; y the products are of high standard quality, the tankage availa.bility both for crude and products, is sufficient to ensure a smooth operation. However, the capacity could not be easily increased. In fact, as we noted, the bottom temperature of topping colwnP is already more than 350 °C and, consequently, an increase in the quantity of crude processed would determine an unacceptable increase of the head pressure ,_,.,hich would throw the rectification process out of balance Q And, as it is well knownJ the size of the topping plant ls always conditioning the size of the entire refinery~ With the exception of rail tanker8 loading facilitieE specially constructed for CIMAO and for C.T.M.B., no other loading facilities do exist in the refinery. Therefore, all the products can be delivered through pipelines, both for shipping on tankers in the Lome Port and for transferring (in this case only white product:-s) to the coastal depot of S.T&E. (Societe Togoloaise d r Entreposage) o The quantity of white products which could fuifil 100% of Togo products requirements corresponds to 25% of the actual maximum refinery capacity. Therefore, any revamp- ing of refinery is at present excluded. TECHINT 7.2. 3.5. TYPE OF CRUDE PROCESSED BY_ 1'1.:!~ Rt:_FINERY AND _§9T.PHUR CONTENT IN THE PRODUCED FUEL OIL The crude processed in the Lome refinery 1s actually coming from Nigeria. The normal type is Nigeria Cight but; some spot cargoes have been received of Nigeria--Forcados. Nigeria Light has a total sulphur coDtent cf 0,12% wt. The corresponding fuel oil produced has a sulphur content of less than 0.3%. The Refinery Management assumes that maximum content of sulphur acceptable in the ·crude should be 1.5% ~or a good refinery operation. The corresponding fuel oil should reach 2.5% of sulphur, which is the maximum content accepted by the manufacturer of. CIMA.O Plant. Without elaborating further the aspect of the maximum content of sulphur acceptable in the crude processed, Refinery Management has indirectly admitted that refinery could produce cheaper fuel oil with maximum content of Sulphur of 2. 5% 5 still in liee wit~b CIMAO plant requirements. However, crude to refinery is actual~y supplied by a 10 years contract with Nigeria and all the nigerian crudes have low ~ulphur content ranging from 0.11% up to 0 • 2 4% wt . On the other hand it is not economic to consider the purchasing of cheaper fu~l oil in the foreign market because the difference in price between low sulphur and high sulphur content for fuel oil is entirely counterbalanced by the additional cost of transportation from Rotterdam to Lome. No economic advantage can be obtained therefore by purchasing 2.5% sulphur content fuel oil from foreign marketJ taking also into account that standard high sulphur content means up to 3.5%, which is not acceptable by CIMAO Plant Manufacturer. And not even acceptable are the fuel oils prepared by blending of different residual fuels because of the risk of non-homogeinity which accompanies such re- constructed fuels. TECHINT 3. 6. REFINERY POWER SUPPLY AND ELECTRICAL STAND-BY PROVISIONS Power supply to the rer1nery is assured as shown in the attached electric scheme. Besides, 4 No. stand-by generators of 882 kW each are available in the refinery. Two of them are at the moment out of service due to failures of the auxiliary devices: these are to be replaced and have already been ordered. The direct link to the 161 kV line from Akossombo power station of Ghana is recent. Now, the power shut-downs are less frequent than in the past, when the refinery was fed only through the old electric lines of Lome Town. Consequently, the fewer shut- downs are now limited to those of the 161 kV line from Akossombo. In fact, there are 10 km of the electric line upstream and'10 km downstream of Lome which have the insulators seriously damaged by dew in presence of corrosive sea atmosphere. The substitution of the damaged insulators on the line downstream Lome will be completed within -t,y,ro years by C.E.B. Nothing sure is known about the substitution of those in the 10 km upstream Lome, in Ghana, which should be performed by V.R.A. (Volta River Authoritv) and with a forecast expenditure of 30,000 Dollars. To be completely safe as far as continuity of power supply is concerned, C.E.B. Management thinks i t desirable to duplicate the Akossombo-Lome-Cotonou line considering the extreme vulnerability of the first section and hlso because the duplication could help the connection Ghana-Nigeria. ~he estimated cost of the proposed 300 km line is of about 6,000,000 dollars. There exists also the new power station of Lome Port, located close to the refinery and equipped with No. 2 x 25 IviW gas turbines, but the power supplied from Akossombo for a total amount of 50 MW (25 for Togo and 25 for Benin) to which 17 MW for CIMAO have to be added, appears to be much cheaper than that produced in the power station of Lome Port. TECHINT Furthermore, the power station should be operated at 20 MW minimum load and not at 5 ~IW as it should be according to actual b~lance of power demand, with a consequent extremely expensive operation. In conclusion, in the actual situation, where the Lome Port power station is not operating and the Akossombo Lome-Cotunou electric line is still vulnerable, some weekly pm,rer slnx(:;-downs are unavoidable, However, the Refiner·y Management is already studying the possibility of installing a tension stabilizing device whose cost is about 150,000 Dollars, which could, at least, eliminate the power sh:Jt-downs inside the refinery caused by variation of tension. It is necessary to note that the operating plants are already well protected in case of power shut-down. In fact, two of the four stand-by generators are always kept into operation with the task of supporting directly those pumps and compressors which are vit.al for the refinery operation and whose failure would cause irrepa- rable damages to the refinery. Consequently, any shut-down of the power supplied from the grid gives small operational troubles of no long duration, mainly a loss of production which is insigni- ficant when refinery is not running at its maximum capaci<:;y. Having the four stand-by generators all available, the refinery could be independent from the grid but only for continuing normal operation, not for start-up, du~ to the high power absorbtion requested during the start- up ~y the big motors connected at full grid tension. TECHINT 25. 3. 7. PRODUCT MARKETING AND. FI;.J AN CIAL- Being LOME Refinery the only one existing in Togo, it was reasonable to presume that internal market corresponding to 25% of refinery capacity, should have been supplied by the.refinery. On the contrary it was ascert.cdned· :that in the first operating months of 1979 all the~output of Refinery was exported while the internal demand ;'\Tas met by imports through SoT.E. (Societe Togolaise d 1 Entrep~ sage) depot. ThP justification given for such strange situation was only of economic nature. We were told in fact that S.T.H., due to the good quality of refinery products, can obtain higher selling prices in the foreign market than those which S.T.E. has to pay as purchasing pri_ ces from other foreign suppliers. Therefore both S.T.Ho and S.T.E. seem to fare better economically by resor ting to the foreign market. This result which is against any reasonable·expectation has to be emphazised for the fact that it explains that no relation does actually exist between refinery operation and local oil products demand. The only product supplied to the country and not enti rely exported will be fuel oil for the following custo mers: 1) CIMAO 2) CTMB (phosfhate mine) 3) LOME PORT POWER STATION for the operation of 2x25 Wv'l gas turbines. For what concerns the financial performance of the re- finery, the following figures have been given by refinery Management to support their present financial perfor- mance TECHINT 26. COSTS ·---- Cost of crude paid to Nigeria 176;02 $/T Cost of freight and insurance 9,81 "/!! Operating costs of refinery 13,48 !1/1! TOTAL COST 199,31 $/T REVENUES ~ % SELLING PRICE REVENUE/ T CRUDE , - LPG 2 340 $/T 6.80 (~!-< >;;J/T - - =-·"""'' - PREMIUM GASOLINE 18 340 $/T 6L 20 T - KERO Jet 16 379 $/T 60.34 vn caused by lack of crude or by ineffi- ciency of plants, fuel oil storage in the refinery could be used for receivifig ~Rported fuel oil thro~ .gh the 4o5-Km pipeline which links refinery to the port of Lome" Refinery f.'Ianagement has aknowledged that when refinery is not running the unloading of a fuel oil cargo c~an be easily achieved, even displacing the fuel oil co~ tent of pipeline by recirculating with a light fuel or gasoil stored in the refinery and pumped through another line u~ to the Porta The fuel storage capacity in the refinery would al- low to receive 40,000 t cargoes. Refinery Management has pointed out that. the quali-ty of fuel, in terms of sulphux· content and/ or of other contaminc:mts) shouldn 1 t be v;orse t:,han that l.1hich refi nery could produce. This request duesn 1 t repre.sffitt a limitation for CIMAO having taken into consideration that max content of sulphur specified by the CIMAO plant Manufacturer is 2,5% \~ equal to that produced by the Refinery when processing 1,5% sulphur content crudeo TECHINT 36. 3.11. DRAFT OF CONTRACT FOR SUPPLY OF FUEL OIL The engagement of Togo Government to.supply CIMAO with the necessary quantity and quality of fuel oil from the refinery of SeT6H0 (Societe Togolai- se des Hidrocarbures), already given bi ~he letter of January 8th 1976, has been reconfirmed hy telex of Sept" 5th 1979 to World Bank ~isned by TEVI BE-- N IS SA.~, Minister of Finance and Eco:nomy of Togo Republic. In this telex in addition to the supply guarantee from refinery it was stated that;; should for any reason S.T.He be prevente~ from suppljing fuel oil to CIMAO, SeT.H., will inform CIMAO and will put its storage and transport installations at the disposal of CIMAO for importin~.fuel oil, which should have no more than 1% Sulphur content and should be free from chemical contaminants* As it was clarified in previous paragraph 3.5. the limitation to 1% sulphur content ·was unjusti- fied. Refinery Management has acknowledged the po~si bility to h::1ndle fuel oil of more 'chan 1% up to - 2,5% Sulphur contento The contract draft between s. T .H. and CIMAO has been amended in this respect at the article 4 e which now reads as follo·ws ~ .... 11 Article.4 .. IMPORTATION (Translation from French) Should S.T.He be obliged, for reasons independent from its will to halt supply of fuel oil to CI~ MAO, SGT.H., will inform CIMAO and will put at CIMAO disposal its installations for importing fuel oil. In this case CIMAO will be authorized to import all the fuel oil having quality compatible with the necessity of its plant in Tabligbo (Sul phur content no more than 2,5%)o However CIMAO will be obliged to withdraw all the fuel oil imported before putting again at disposal of SGT.H~ the tanks where such imported fuel oil had been storedo The personnel for the operation will be supplied by s .. T.H., under their own responsibilityc 11 TECHINT 37. Another important amendment BO the draft of the Contract was proposed by us for what is concer- ning the duration of the Contract, which had been fixed in two successive periods of two years each, with tacit renewal and right of recess with six months notice .. We have proposed two successive period.s of five years each, with tacit renewal after the first 5 years and right of recess by CIMAO only with 6 mO!!:_ ths notice .. This amendment means to have prolonged the guaran- tee of fuel oil supply by SeT.H. from 2 years up to 10 year.s. Furt-hermore, other- minor amendments were proposed and accepted by Refinery Management in relation to the specifications of fuel oil, to the procedure of taking samples, and to the fuel oil loading tem- perat-ure. The revised draft of contract is attached. as EXHIBIT 4. We must recall the attention on Article 7.,1lPayment conditionsTl,because refinery Management has speci9-l ly pointed out that continuity of fuel oil supply is strictly connected to the punctuality of.payme~t£" TECHINT 38. At the light of what previous~y said we think that long term offers for CIMAO should be forecast star- ting from 1990, that means at the expiry of the 10 years fuel supply contract.with S"T.,H. In fact'~ while the ir.te:;:onal demand for white pro- ductB i:.-1. 1990 will be still .lower than that corre- sponding to the ou-tput ·of refinery at its maximum capacity}· the demt:cHd 0£ fuel o_il in the country could be higher< We have noted under previous point 3,7., that already now the quantity of fuel oil booked by 3 important customers amounts to 93% of the max Refinery prp- duction,. It is true that the Power station of Lome Port, one of the 3 customers, can operate the gas turbines by gasoil or by a blend fuel oil/gasoil, but it is also reasonable to admit that within the next 10 years additim1al requests of fuel oil will be adva~ced by new potential custormes~ In such case, in order to increase the fuel oil availability, the refinery should process.other types of crude than the Light Nigeria ct~ud,G which gives only 30% of re sidual fuel internal consumptions.included., This should be possible using Nigeria M~dium or if, at the expiry of the 10 years contract between Ni- geria and Togo Government, Togo could get another contract. with a new crude producing country for al- ternative supplyG As an example we list. hereunder some alternative cru des which could give a h{gher percentage of fuel with sulphur content. not exceeding 2, 5% <:: TECHINT 39 • . ----------------r-------~,-----------~----~---------~----~ CRUDE API % OF RESI- % OF SULPHUR GRAVITY DUAL FUEL~ CONTENT IN RESULTING FUEL TECHINT 40. On the other hand, refinery M~nagement is at present strongly reluct~nt to permit the importation of fuel oil from foreign market if the refinery plants are running,. Operationally, such reluctancy is ju- stified because the tanks available for storing fuel oil produced are only n° 2 x 25eOOO cu~m. Therefore in case of fuel oil imports, new tanka ge should be previously constructed for such pur- pose .. As alternative to the construction of new tan kage, the option to utilize for fuel oil storage s_£ me of the floating roof tanks actually available for crude storage was considered., In fr.ct at pre- sent such crude storage is plentiful, amounting ~o 130,000 cu.m •. and 3t the actual or future cost of crude it will be no more realistic to have a full crude storage. Some capital investments should however be requested for construction of new insulated and steam traced lines and for installing steam coils inside the tanks chosen for fuel oil utilization. But, we insist, this fuel oil importation should be forecast in the long term, wl:en the internal demand of fuel oil should exceed the quantity produced by the refinery at max of its capacity@ Until that m_£ ment, as it was demonstrated in the previous point 3.5. the alternative of fuel oil importation is not economic for itself, even if no capital investments are requested for construction of additional tanka- ge., For what concerns the operation of CIMAO plant at Tobligbo for clinker production, either of the alre~ dy constructed unit or of the planned doubling, in the long term, taking also int-o account an increasing difficulty in supplying crude and products,possibili- ty of utilizing coal in place of fuel oil should be seriously considered., We must not forget in this re- spect that the clinker industry was born using coal and only after designing of special burners fuel oil had repalced the coal powder. Therefore a re - turn to such utilizatioct is technically possible and shouldn 1 t imply major modification problems.· - ' , I t I 3 I • I ~ I • I 7 l • I ' I 10 l II D I I H ~HI\NA T060 TOuO SEN N J I 1-- 0~ ..___ 4' 142 MVA. ~~c:,sm~so 161 K..V I HYDROPOW ~ R I 161 ~v D~ a 3-.16.3 MVA STA.T ON 8 I 0 I I . r-- 20 v..v I] ~ I '. . ' 0 1d ,+ MW ~r-4,4 MW ;..OME DI ES E~ POYVE~ 1-- '] I 2.. 8 MW STA.TON 0 E 0 ~ . . ~ -.::-- :;J. ...,-- f---.! I -.(> -.() D~ ..,-- ' "" 0 -i ,- _s-< _v_ --~- ~ D ~- -1 ) ' ;ESEl. G~OJPS 4 .. 10 MW FUTl.IR( I r-t-o=· ;o \\VA. uAS TIJR~ N£ uROJP.S 2 "t.S MW 0 I2 "'E£~ PL~N· I -co-c= -, _ .... ......_ _, r-- STEAM TJRS 'l( ~ROJf'.S; 1 ... 28."MW'(~JTJRE 1 r- t- -( 'J -; 0 I I R E F ! ~ tR Y -co-c= ~- -.J - . c 2. d MVA. 25 MVA 0 LOME PORT POWER STATION r-- .. 0 .. ..- 1 ~ . TECH INT I TE CHINT COM PAONI A TE:CNICA IN T ERNAZ I ONALE •OCIIt .fo .. lit A %10 N I • SIOI: S O(:IAL.C M I\. A NO IIBJT-3 HIGH SLJLP/1. UR (FOB GENOA) HISTORICAL 5ER./ES OF FU£LOIL PRICES LOW .SULPHUR. (FOB R.OTTERllAM} · ------ .SULPHUR. (FOB ROTTEflDAH) AT GENOA AIJb ROTTER-DAM MAilCI<£T.s ------ 1-lfGH . ~ TECHINT -_EXHIBIT 4. -.- --_---- .. CONTRAT DE FOURNITURE DE FUEL OIL AU COMPLEXE CTMEN'l'JER DJJ f10NO PAR S.T.H. ENTRE: LA SOCIETE DES CIMENTS DE L'AFRIQUE DE L'OUEST dont le. Siege Social est a LOME - Republique Togolaise - B.P. 1365, inscrite .:m Registre du Commerce sous le n° 235 R.C. LOME, ci-apres denommee le Client, representee par son Directeur General, Monsieur K.C .KATA14NA, ayant tout pouvoir a l 1 effet du present Contrat, d 1 une part ET LA SOCIETE TOGOLAISE DES HYDROCARBURES dont le Siege Social est a LOME ·- Republi.que Togolaise, Zone Industrielle, B.P. 3283, inscrite au Registre du Commerce sous le n° 768 3 ci apres denom.mee le Fournisseur, representee par son Directeur General, Monsieur BLAZEJEWICZ ayant tout pouvoir a 1 1 effet du present Contrat. CONSIDERANT QUE CD1AO, Societe Multinationale dont 1 1 usine de production de clinker, produit de base pour la fabrication du ciment, est installee a TABLIGBO, consommera, pour la production prevue de 1.200.000 T/an dans le cadre des installations existantes, 120.000 tonnes environ de fuel oil par an evoluant suivant les variations de la production de la Societe. Le Traite instituant un complexe cimentier regional en Afri- que de l 1 0uest, liant les trois Etats participants : COTE D 1 IVOIRE - GHANA - TOGO exonere, dans son article 11 dont le texte figure en annexe ci---apres~ CIHAO de tous droits et ta- xes liquides et per~us par 1 1 Administration des Douanes au TOGO. TECHINT 2• Le transport du fuel oil necessaire a la fabri- cation de clinker sera assure par des wagons-citer nes d~s CHEMINS DE FER DU TOGO (C.F.T.) conform~ - ment aux dispositions d 1 un iccord intervenu entre :Les C. P "T ., . et CIMAO, accord qui det.ermine egale - illent Je rotation.des trains. L engagement du Gouvernement Togolais du 6 Janvier 1 1976, joint ci-apres 3 garantit sans restriction la fourni ture du fucl-~oil par la Societe Togolaise des Hydrocarbures. Cela etant entendu entre le Client et le FournisseurJ Il est convenu ce.qui suit. Article 1. OBJET DU CONTRATo Le Client confie au Fourniss.eur 5 qui accepteJ le soin de lui fournir 1~ fuel-oil_necessaire au fonctionne- ment de ses installations pour la fabrication du cli_g k:er. Les operations de fourniture et d 1 achat seront effec- tuees suivant les dispositions, conditions et modali-~ tes qui font l 1 objet du present Contrat et de ses an~ nexes A, B et C, qui en font partie integrante. Article 2. 2.1. Qualite du.fuel-oil~ Le fuel-oil livre par S.T.H. a CIMAO en applica- tion du present Contrat sera conforme aux speci- fications fournies par la S.T.H. en annexe C. Il est precise· que la teneur en soufre devra etre imperativement inferieur a 2 3 5%. Le fuel-oil sera livre a une temp~rature minimale de 47° c au point de chargement. 2.2. Responsabilite. L 1 acceptation par le Client du fuel-oil livre par le Fournisseur selon la procedure prevue an paragraphe 3 de 1 1 Annexe A du present contrat implique de sa part toute renonciation a un re- TECHINT cours en responsabilit~ contre 1e Fornisseur on ce qui concerne la qualit~ du fuel···oil li:_ vr~, pur vu que la qualitE: d 1 echantillons p_te lev~s selon la procedure concordee sera con- forme wux specifications prevues en Annex.=: C. Article 3~ QUANTITEc La S.T.H. s 1 engage a assurer la fourniture a CIMAO, qui accepte, a partir de ses installations de raffi nage, une quanti t~ de fuel-oil ~gale a cell e qui est n~cessaire a la couverture de la totalit~ de ses be- soins, ~valu~s conform~ment aux dispositions de l 1 an nexe A. Article 4. IMPORTATION. Au cas ou la S.T.H. serait obligeeJ pour une raison ind~pendante d 1 elle, de ne plus fournir du fuel-oil a CIMAO, la S.T.H. en irtformerait sans d~lai CIMAO et mettrait a la dispositi6n de-CIMAO ~es 1nctallations pour !'importation du fuel.Dans ce cas CIMAO sera a~ toris~e a importer tout fuel-oil ayant les qualites compatibles avec les besoins de son usine de Tabligbo (notammen·t teneur en soufre ne d~passant pas 2, 5%). CH.-1AO sera toutefois tenue de retirer la totalit~ du fuel-oil qu 1 elle aura import~ J avant de remettre a la disposition de la S.T.H. la cuve dans laquelle avait ~t~ stock~ le fuel importe. Le personnel de l'operation sera fourni par la S.T.H. sous sa propre responsabilit~. Article 5. PRIX. Le prix de vente sera d~termin~ par application des dispositions de 1 1 Annexe B du pr~sent Contrat. Le prix de base au jour de la signature du Contrat est de • • la tonne. Article 6. LIVRAISON ET FACTURATION. 6.1. Livraison Les modalit~s et dispositions suivant lesquelles seront pr~vues, organiseeu et effectu~es les TECHINT livraisons sont enumerees a ~Annexe A du pre - sent Contrat, l 1 enumeration faite a ladite an nexe pouvant etre revisee avec l 1 accord des parties. Le produit devient propriete de CIMAO lorsqu 1 il franchit la limite de la bouche de chargement des installations du Fournisseur pour etre mis a la disposition du Client sous reserve des receptions qualite faites ulterieurement. 6.2. Facturation Chaque livraison de fuel-oil fera 1 1 objet d 1 un bordereau de livraison date du jour de la li- vraison dont un exemplaire sera adresse au Client. Les bordereaux recapitules en fin de mois dans une seule facture qui devra etre adressee au Client en trois exemplaires. Article 7. CONDITIONS DE PAIEMENT. 7.1. Les factures sont payables en francs cfa a LOME, au compte design~ par le Fournisseur. 7.2. Toute facture sera r~glee integralement a la date prevue, sans prejudice du droit du Client d 1 eu contester le montant par lettre recomman- dee adressee au Fournisseur dans un delai de 60 jours. 7.3. Paiement Les reglements des factures sont effectues a \ trente jours fin de mois par cheque. Article 8. TAUX DE CHANCE. Pour le calcule des prix, suivant l 1 article 5 du present Contrat, les conversions entre les diffe - rentes monnaies seront effectuees sur la base des taux de change moyens mensuels publies par la BCEAO, les taux retenus etant la moyenne des trois derniers mois pour une revision de prix trimestrielle. TECHINT s. Article 9, FORC.E MAJEUREo Aucun def aut au manquemEmt dans 1 I execution ou 1 1 inobservation des termes 3 dispositions ou condi_ t1ons du present~ Contrat _no donnera lieu a recla- mation de la parte de ~ 1 une des parties onvers / 1 f au,ti·e si ce defaut on manquement: est dua un ev~nement de fo1ce majeu~e. Le cas de force ma- jeure qui int.erviendrai t dans la produc-tion de la Raffinerie ne peut liberer le Fournisseur de ses obligations telles que precisees a 1 1 Article 4. On entend par force majeure pour 1 1 execution du present Contrat, tout acte ou ev~nement a une in- cidence sur l 1 execution du Contrat. La partie qui invoque le cas de force majeure de- vra aussit8t apr~s sa survenance, en aviser 1 1 autre partie par telephoneJ puis en donner confirmation dans ·Ie 48 heures par lettre reccommandee laquelle devra contenir tuutes· les informations c)_rconst,an- ciees utiles relatives au cas de force majeure in- voque. Si la force majeure durait plus de trois mois 3 le Client et le Fournisseur se reuniraient pour exa- miner les modalites eventuelles de poursuite du Contrat. Si un accord n 1 intervenait pas, l 1 une ou l 1 autre partie pourrent mettre fin au Contrat, quinze jours apr~s en avoir averti l 1 autre par lettre reccomman dee. Article 10. ARBITRAGE. Tousles differends relatifs a l 1 interpretation, l 1 application et l 1 execution du present Contrat seront regles a l 1 amiable, sinon ils seront partes devant un Expert choisi d 1 un commun accord par les deux parties. Si un accord n 1 intervient pas sur ce choix dans un delai d'un mois apr~s la reception de la requete du domandeur par l 1 autre partie, l 1 une quelconque des deux parties peut demander au Presi- dent du Tribunal de Commerce du TOGO de nommer un Expert qui accepte la mission. Sauf accord des pa~ ties pour prolonger les delais, l 1 Expert doit statuer TECHINT dans un delai de deux mois a compter de sa desi- gnation. Ltavis technique d 1un tel Expert laisse aux p2r- ties la possibilite d 1 en appeley ~ un coll~ge arbitral. Le coll~ge s1egera ~ LOME. Il sera constitue de trois (3) arbitres qui seront maitres de la procedure. Il appliquera les clauses· du present Contrat. La partie qui entend faire appel a l 1 arbitrage noti fiera ~ l 1 autre par lettre reccommandee avec accu- se de r~ception, les points sur lesquels elle en- tend solliciter l 1 arbitrage. Dans un delai maximum de trente ( 30). jours a compter de la date de la notification, les-parties se met- tront d 1 accord si possible sur le choix d'un coll~- ge arbitral compose de trois (3) arbitres. A defaut pour les parties de s 1 etre mises d 1 accord dans ce delai, le coll~ge arbitral est designe 2 ~\ la requ e de 1a partie la plus diligente~ par le President du Tribu nal de Commerce de LOME. En cas d 1 empechement de 1 1 un des arbitres pour quel-- que cause que ce soit, un troisieme sera choisi par les deux (2) autres arbitres. . Les arbitres peuvent se faire assister de tous con- seils de leur choix. Les memoires sont rediges et les plaidoires prononcees en langue fran~aise. S 1 il n 1 est pas arrive a concilier les parties, le coll~ge arbitral doit clore les debats dans un de- lai maximum de quatre mois a compter de sa designa- tion et rendre sa sentence dans le mois suivant. Ces delais peuvent etre prolonges par accord des parties. La sentence est rendue a titre definitif et irrevo- cableJ les parties renon~ant d~s a present a 1 1 at- taquer par n 1 importe quelle voie de recours. TECHINT 7. Article 11. INTERPRETATION. Le pr~sent Contrat sera interprete selon les pri~ cipes du droit togolais. Article 12. DUREE DU CONTRAT, Le present contrat qui prend e:ffet a compter du . ••••••••••••••••••• est renouvelable par tacite reconduction pour des periodes successives de cinq (5) ans, sauf denonciation par le Client avec un preavis de six (6) mois. Article 13. NOTIFICATION. Toute notification relative a l 1 execution du pre- sent Contrat sera faite sur lettre recommandee, c§ble, telegramme ou telex aux adresses su1vantes: Pour la SOCIETE TOGOLAISE DES HYDROCARBURES (S,T.H.) B.f'. 3283 Tel. 5064 Telex 5210 TOGO OIL 5065 Pour LA SOCIETE DES CIMENTS DE L 1 AFRIQUE DE L 1 OUEST ( CIMAO) B.P. 1365 Tel. 2268 5302 CH,'IAO LOl\1E. '7616 Article 14. PIECES JOINTES, - 1 extrait du Traite etablissant l 1 exoneration des droits et taxes pour CIMAO - 1 photocopie de l 1 engagement du Gouvernement Togo- lais de fournir le fuel--oil a CIMAO - Annexe A - Annexe B - Annexe C Lome, le TECHINT 8. Pour CIMAO 11 Le Client 11 Pour S.T.H. 11 Le Fournisseur' LE DIRECTLVR GENERAL LE DIRECTEUR GENERAL TECHINT CONTRAT DE FOURNITURE DE FUEL OIL PAR S. 'l' .l:-I. A CIMAO ======= ANNEXE A PROGRAr,IME - ORGANISATION ET EXECUTION DES LIVRAISONS 1. PREVISIONS ANNUELLES 1.1. Trois mois avant le commencement de chc:que so_nee calendraire, le Client communiquera au Fournisseur ses previsions de consommation pour ladite annee. Le Fournisseur et le Client s 1 assureront en cours d 1 annee des modifications qu 1 il pourrait etre neces saire d 1 apporter a-ces ::>revisions. 1.2. Au plus tard le 5 de chaque mois, le Client adres- sera au Fournisseur la prevision, mois par mois pour "les 6"premiers mois a venir. 2. AJUSTE:tviENT DU PROGRA1v!};1E Le Fournisseur et le Client feront leur possible pour ajuster les programmes de production et de reception. Ainsi, le Fournisseur devra,1 lors de ses arrets progra~ mes, maintenir en stock les quantites necessaires aux besoins du Client compte tenute des possibilites de stocka ge de la cimenterie et ce, pendant toute la duree de ses arrets. J, LIVRAISONS DES PRODUITS 3. 1. Le rythme du chargement est decide en accord entre TECHINT 2. le Client, les C F T et le FournisseurJ conformement a la cadance definie en Annexe D. 3.2. Les livraisons en FOB Raffinerie de Lome sont faites par le Fournisseur. Un representant du Client pourra etre present lors des lj_vraisons. 3.2.1. Les mesures sont faites en unite metrique, hectolitres, m~tres cubes, degres centigrades, densites, tonnes-metriques, ainsi que leurs multiples et sous multiples. Les tables de jauges sont etablies sous le con trole des poids et mesures du Togo. 3.2 .2. Le controle de la qualite du fuel-oil est ef- fectue par analyse d 1 echantillons. Ces echantillons sont preleves pour toute li~rai son a la bouche de chargement et dans les wa - gons ou camions ci ternes un.e fois remplis, Chaque echantillon est reparti dans trois flacons identiques - l 1 un sera remis au representant du Client; - le deuxi~me au Fournisseur; - le troisi~me, scelle par le representant du Client, sera conserve par le Client pendant trente jours pour eventuelle analyse en cas de litige. r' Les analyses seront faites par le Fournisseur en appliquant les methodes en vigueur dans 1 1 industrie du petrole. 3.2.3. Toute livraiso~ fera l 1 objet d 1 un bordereau de livraison ou figurent les elements de base du jaugeage et le nomero de la cuve d 1 origine. Un exemplaire de ce bordereau sera adresse au client. 3.2.4. S 1 i l resulte de l'analyse d 1 echantillons que le produit ayant fait 1 1 objet de cette livrai- son n 1 est pas conforme aux specifications, le Forunisseur et le Client conviendront des mesu res a prendre et le Fournisseur s 1 engage a TECHINT remplacer immediatement le.produit concerne. -Un bordereau recapitulatif des quantites li- vrees 8tabli en 3 exempla-ir~s est signe au chaE_ gement0Deux exemplaires sont remis au Client. Le Four:nisseur remettra au, Client un certificat d 1 analy~es des cuves mises .en service signe a la 'reception, 4. ARRETS DE LA RAFFINERIE 4.1. L 1 etablissement par le Client des programmes seme- striels de livraison de produits au Client, confor- mement aux disposition du parag.raphe.. 1. 2. et 2. ci- dessus, permettra au Fournisseur d 1,en tenir compte pour programmer les arrets necessites pour 1 1 execution des operation prevues d 1 inspection et d 1 entretien de la RaffineriP. 4.2. Au cas Oll j_l viendrait a se produire un arret il)lpr~ vv de la Raffinerie, le Fournisseur en avisera imm~ dia cemen C le Client et 6tudiera avec lui les modifi 3 3 cations a apporter au programme des livraiso:ns, compte tenu du paragraphe 2. ci-dessus. 4.3. Dans le cas ou la duree de 1 1 arret imprevu risque d etre plus longue que celle pendant laquelle le FoE. 1 nisseur peut garantir '· a partir de son propre stock, 1 1 approvvisionnement au Client, le Fournisseur et le Client se reuriiront pour etudier les modalites d'ap- plication de l 1 article 4. TECHINT CONTRAT DE FOURNITURE DE FUEL OIL PAR S.T.H. A CIMAO ==============-- ANNEXE B CALCUL DU PRIX DE REPRISE EX-RAFFINERIE Les prix ex Raffinerie hors droi ts · sont calcules comme suit 1. Bien que le Fuel oil fabriqu6 par la Raffinerie de Lome soit a tres basse teneur de soufre (0.3%), le prix FOB Raffinerie de Lome appli.que sera la moyenne arithmetique mensuelle des cotations hautes du mois publiees pour le Fuel oil a un pour cent ( 1%) de soufre par le npLATT 1 S OILGRAM PRICEn ROTTERDAM N 1 WE mains le fret sur la base de WORLDSCALE selon la moyenne arithmetique de la cotation applicable au mains de la livraison. 2. Pour 1 1 utilisation des installations de chargement ferro- viaire de la S.T.H., CIMAO payera un droit forfaitaire de 32, 1 FCFA par tonne_._ de pro dui t enl eve o TECHINT CONTRAT DE FOURNITURE DE FUEL OIL PAR S.T.H. A CIMAO ============ ANNEXE C SPECIFICATIONS Les m~thodes d 1 analyse utilis~es pour contr81er ces car~ct~­ ristiques sont celles d~finies par les normes en vigueur au Togo. Les. de mesures mentionn~es dans ces m~thodes sont pr~cisions utilis~es, en cas de litige, pour appr~cier les ecarts de resultats obtenus entre le laboratoire du Client et celui du Fournisseur. Le d~tail des sp~cifications garanties et des m~thodes est le suivant ANALYSYS METHOD CARACTERISTICS STANDARD LIMITS ASTM Specific gravity at 15°C 0.965 max 1.298 Pour point (°C) + 40 max 97 Sulphur (%wt) 1.0 max 1. 551 Viscosity est at 50°C ~ 110 max 445 P. C. I. 9.600 k cal par kg min Point ~clair 70° C min ASTM 93 Cl 0,04 % en poids max Eau (% en masse) 1,5 maxi Sedi~ents (% en masse) 0,25 maxi TECHINT EXHIBIT 5. - Mr. iQuar.tin Directo.~~ of CIMAO. :in' To.bligbo - Mr. azej;ewicz General Manager _o:f S. 'T. H. Refinery -- Nr • Adj akpl ey .lvlarketing Manager .of S.T.R. Ivlaintenance Fianager of S. T ~H. , Mr. J3ai1 ey N:a::1ager of Chemic<:1l Laboratory of . S •.T .. H. ·· l\'Lc. Aj avon Dirc~t--:Jr of S. T. Eo - ·· Mr. -C:Laveranne Responsible.of C.F.~. - Mr. Fah"t'uni Director of C.E.B.· - Mr. ~Bagnah Mini-ster o£ _State Pa~ti.cipation_s - Mr. Tev~ Benissan Minister o.f Finances and· Economy -- Mr •. 'Barque Minist~r of Mines 2 X 3.000 cu"'m" storage tanks fuel oil unloading rack View of clinker factory I Detail of above view View of Stacks and other details View of rotary kilns