KLM Technology Group Solutions, Standards and Software. KLM Technology Group. Solutions, Standards and Software

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2 Based in USA since 1995, KLM is a technical consultancy group, providing specialized services and equipment to improve process plant operational efficiency, profitability and safety.

3 An Engineering Corporation KLM Core Business Training (50+ Training Classes) Engineering Design Guidelines Engineering Software Process Optimization Studies Engineering Support Basic Design Packages Detailed Design Packages Process Equipment Unit Commissioning Unit Benchmarking

4 An Engineering Corporation KLM Core Business Guidelines and Software Engineering Design Guidelines Developed 50+ since Project Standards Developed 190+ since Sizing Software Developed 3 in

5 An Engineering Corporation KLM Core Business Process Optimization Studies Olefin Furnace Yield Optimization (2) Process Optimization LP Model (3) Process Studies (25+) Process Simulation (50+)

6 An Engineering Corporation KLM Core Business Engineering Support Tech Service Agreements with Producers Basic Design Packages (7+ large package) Chemical Engineering design of plant Typically 3% of Total Plant Cost

7 An Engineering Corporation KLM Core Business Detailed Design Packages (3+ large packages) Mechanical, Civil and Electrical Engineering design of plant Typically 7% of Total Plant Cost

8 An Engineering Corporation KLM Core Business Process Equipment KLM as an EPC Company can purchase from any of the major equipment Suppliers. Distillation Equipment Towers Rings Structured Packing Trays Heat Exchange Equipment Pumps and Compressors

9 An Engineering Corporation Distillation Equipment KLM Core Business Process Equipment Can be ordered with normal lead times or can be sources for immediate replacement Random Packing KLM has a stock of random packing in key Countries for Immediate replacement Structured Packing KLM has a stock of Structured Packing in key countries for immediate replacement

10 An Engineering Corporation Distillation Equipment KLM Core Business Process Equipment Can be ordered with normal lead times or can be sources for immediate replacement Tray Hardware Trays KLM has a stock of Tray Hardware in key countries for immediate replacement KLM has the resources to order with normal lead time or source for immediate replacement

11 An Engineering Corporation KLM Core Business Process Equipment Mercury Removal Skid Packages Mole Sieve Dryer Packages Instrument Air Packages Compressor Scrubber Skid Packages Complete Distillation Systems Unit Revamps

12 An Engineering Corporation KLM Core Business Unit Commissioning Units (10+) Tower Inspections (20+)

13 An Engineering Corporation KLM Core Business Training (50+ Training Classes) Engineering Design Guidelines Engineering Software Process Optimization Studies Engineering Support Basic Design Packages Detailed Design Packages Process Equipment Unit Commissioning Unit Benchmarking

14 An Engineering Corporation KLM Core Business Key Projects 1. Basic Design Package for Petronas Idemitsu in Malaysia (2006) Designed a Distillation System 2. Basic Design Package for BST in Thailand (2007) Designed a Distillation System 3. Environmental Study for Titan in Malaysia (2007) 4. Revamp Study for Titan in Malaysia (2007) Assisted in Ethylene Plant Revamp Study 5. Commissioned 5 BTX Units (2008) 6. LP Study of Ethylene Plant in Indonesia (2010) 7. Process Study for Gas Plant in USA (2013) 8. Clay Treater Skid Package for Kuwait (2015)

15 Recent Projects 1. Designed a Benzene Toluene Splitter Column for Idemisu Petronas in Malaysia. Total Schedule A Basic Design Package. Reviewed and approved by Idemsiu Japan and Sulzer Chemtech. Constructed by Toyo Engineering.

16 Recent Projects

17 Recent Projects

18 Recent Projects 2. BST (Thailand) Distillation Tower A. Designed a Basic Design Package and Commissioned a DME Removal Column for BST. B. 100% Designed Column by KLM, with process guarantees. C. Tower, Trays, Pumps, Reboilers, Condensers and Vessels

19 Recent Projects

20 Recent Projects

21 Recent Projects

22 Recent Projects

23 Recent Projects 8. Clay Treater for Kuwait A. Designed Basic and Detailed Package for Clay Treater Reactor. B. 100% Designed by KLM, with process guarantees. C. Reactor, Pumps, Heat Exchangers and Vessels

24 Recent Projects 8. Clay Treater for Kuwait

25 Recent Projects 8. Clay Treater for Kuwait

26 Typical Project Plan 1. Feasibility Study (FEED) 2. Basic Design (Schedule A) 3. Detailed Engineering 4. Equipment Procurement 5. Equipment Construction 6. Commissioning 7. Operations Support

27 Typical Project Plan For a Typical Small Project of about USD 1,000,000 USD 1. Feasibility Study (FEED) 1% 10, Basic Design (Schedule A) 3% 30, Detailed Engineering 7% 70, Equipment Procurement 30% 300, Equipment Construction 60% 600, Commissioning (estimate) 3% 30, Operations Support 3% 30,000

28 Typical Project Plan Feasibility Study (FEED) A Feasibility Study, sometimes called a Front End Engineering Design Package (FEED) provides enough engineering to size most of the major pieces of equipment so a project cost estimate can be generated.

29 Typical Project Plan Basic Design (Schedule A) The Basic Design Package, sometimes called a Schedule A Package, provides the process engineering design. Typically 3% of project cost. A reputable Basic Design Company will provide a process guarantees of up to 10% of the Basic Design Fee. Typical guarantees include capacity and product purities.

30 Typical Project Plan Detailed Engineering Detailed Engineering is the Civil, Mechanical and Electrical engineering design. Typically 7% of project cost for a new plant and about 10% for a revamp.

31 Typical Project Plan EPC The Detailed Engineering, Procurement and Construction is sometimes called EPC. The EPC portion can be done multiple styles. One style many people utilize is Lump Sum Turn Key (LSTK). A second style is Open Book with a fixed profit margin. For a large projects many people believe that LSTK may be the best, we believe that an Open Book may be the best. LSTK is a bid from the EPC firm to build the unit for a fixed cost. Normal Profit margin is 15% and because there are unknowns a 10%+ contingency if added to the cost. Price is 25% higher than actual project cost. An Open Book with a fixed profit margin (5% to 10%), if managed well will result in a lower project cost.

32 Typical Project Plan Equipment Procurement Equipment Procurement is utilizing a team of procurement professionals to put together bid documents and evaluate the vendor bids. Equipment Construction Construction / Erection is typically done LSTK by a local contractor with Project Management from EPC Firm.

33 Typical Project Plan Commissioning Commissioning is placing the equipment in service for the first time. There are detailed procedures for placing the equipment in service for the first time. If the procedures are not followed the equipment manufacture will not honor the warranty. There is normally a 12 month equipment warranty. Commissioning is typically done on a cost plus basis.

34 Typical Project Plan Operations Support Senior Operations people may be provided for the first 12 months of operation to train the local staff. This is normally done on a cost plus basis.

35 Staffing USA Office Principal Engineer (1) Senior Consultants (3) (Senior Consultants we utilize as needed) Malaysia Office Office Manager (1) Training Marketing (1) Senior Consultants (3) Indonesia Office Office Manager (1) Business Development Manager (1) Clerk (1) Chemical Engineers (5) Programmer (2) Mechanical Engineer (1) Drafting (1) Philippines Senior Consultant (1) Clerk (1) Thailand Senior Consultants (2) India Senior Consultants (1) Singapore Senior Consultants (2)

36 An Engineering Corporation Thank You