Document 917eeLDVL8geZEyYGOrLgpZkR

CONOCO CHEMICALS 1984 CONSTRUCTION FORECAST ABERDEEN CHEMICAL PLANT V ($M) PRODUCT MIX/QUALITY IMPROVEMENTS A-l Bottle Compound Production A-2 Line III Metal Detector A-14 Miscellaneous TOTAL PRODUCT MIX/QUALITY IMPROVEMENTS COST REDUCTION Energy A-3 Rotary Dryer Optimization Other A-4 Reactor Jacket Expansion Joints A-5 Office Systems Computer Installation A-14 Miscellaneous TOTAL COST REDUCTION NECESSITIES Safety And Health A-6 Plasticizer Modernization - Phase III A-7 Reduction of VCM Exposure (Legal) A-8 Truck Loading Facilities For Silos A-9 Security Fence Environmental A-10 VCM Standard Compliance Improvements (Air-Legal) A-ll Plant Sewer Revisions (Water-Legal) A-12 City Water Backflow Prevention (Legal) A-1,4 Miscellaneous TOTAL NECESSITIES REPLACEMENTS A-l3 Dryer Centrifuge Conveyor Assemblies A-14 Miscellaneous TOTAL REPLACEMENTS TOTAL 1984 CONSTRUCTION FORECAST A-14 Total Miscellaneous Projects Under $15,000 (1) No Transportation Capital Required. 7/18/83 Construction Capital (1) 840 29 , 47 916 916 160 160 40 71 111 28 299 85 115 120 50 370 160 180 130 470 190 1030 150 130 280 280 2,525 395 DTH 000099110 1984 CONSTRUCTION FORECAST- CASH FLOW SUMMARY CALENDAR YEAR ABERDEEN CHEMICAL PLANT ($M) m IT| m On m1 i i i in ON Os 1 i i i ON co cn CM CM /-s pH 1* 1 CM X-s m ! pH | N-/ /-v /-s /*s ON CM ns d! 1 | 1 cn Nip' 1 cn w | On O w CM Vp' pH m cn CM /*n n /-/-s /N /-N /-N /-N sd- CO CM CT\ IS. i--4 Vp ^ o sd- on CM n sd- O ns CM CM ON ON m 00 00 i CM m O CM pH CM pH m st m cn ON CM CM On ON H | pH *d- W W Sp/ Sp' W w s/ cn pH H sd- in NH m H ph pH CO ' 00 vO o ON o ON m CM rs. CM H o ON m ON pH w H n* pH cn *a- pH pH ns on o /N <-S /-N /-N /-s /-S /-s /-N /-s cn oo CM NO CM ON m 00 ON pH CM pH cn sd- CM cn 00 o W N*/ S/ Sp' w \ps cn NH pH ON cn dpH CM VTl stf NO pH 00 CM * ON cn r- lO pH ON ON NO 00 pH pH H 00 H CM cn ph l/N cn cn sd* m H <r> ON CM m H o 00 o> pH pH 00 H H H ^4 cn CM pH H /S /-S no 00 O rH ww /-v /*N no n o *h /-s/-s /-s /-N /-s /-N /-s /-s cn ns pH St O rs cn cn CM pH CM pH m st <si m oo ON w w n-s s/ W Sp' Np' Np/ CM Sp/ *' /-s /-s /--s P-S /-s /-N /-s /H, /-N cm in pH CN 00 lO CM ON 00 ^H CM pH cn cn cm cn ns ns w w Np' NH W Np/ Sp* *Sp/ CM NH NO o NO cn pH n* o pH CM pH /-N /-s /-s rs o H ON CM o 00 NO ON on d O pH SO NO O cn CM CM ON St n> pH ON f^. o vO ns H n O NO sd* CM pH S--' s--/ cn ^H cn o W pH cn CM w cn ns in <r m Os O-i fmt* > pH OH in as m no cn m n* st St O 00 pH CM ns ns cn lO 00 - . CM 00 On On rs o sd* ^H CM n* in on ^d- m st o CM CN pH cn ON CM 00 pH NO pH pH pH pH cn pH n* 00 ON pH o pH 00 cn ><r sO pH 00 00 cn in NO sd* so ON ON 00 pH H i--4 CM Hm n Mt H CM n O ON pH St ON ON sd O pH m on sd* cn Mf O CM cn m pH pH ^4 pH cn pH pH ON ON cn 00 ns ns m m cn NO NO 00 f*M H m n* m m ON ON CO H pH H CM pH CM sd* ys -4 \C ON o cn n. NO 00 m oo sd- n* cn o ON cm r-s pH pH pH pH . pH V-/ *d* NO CM ns NO NO CM pH pH sd- O CM m o vo m CM CM m o sa-d- in pH CM m 00 ^H pH ^H pH pH m pH pH cm ns in 00 pH n* stf* as m t a 00 o sd- pH so cn cn o ^H CM pH pH pH m NO pH 00 cn dm CM pH NO pH /N /-Si /-N <-l p-s, /-s V-s /-S /-N m 00 o ns ON d- 00 o O s^ 00 o v> o m o ns m ON O -4 cn cn in NO Ht m 00 NO NO o ^ O o m m CM m NO o ^H i--4 Np/ m pH ON ip '-'g 00 sd- *-H > n* CM O CM ns o pH cn NH Np/ 3 C O o pH Np' odo- loom 3 m 4-> CO 4) -s 3 OOOOOOOO O 4-1 's 3 CO 4-1 as 4) >V O CM O -l ast\ . 0) m m st co Pd o> 3 C Ov 4>) CM (S CM O O o o o o h n m as oo co m 41 -040 Pd w01 MOM 4) 41 m pd pH KH o 4> 4) 3 4J Od 3O 3 -H 4) 4J <3 3 '.Oc i 43s1 -h3o s s4-1 > 01 Uo ca 03 pd tu 4O-1 3H 4J H J* 3 4) 4-1 ao >v wo '-s Pd Pm cd c8 se u <u m l sr i in <5 <3 < <* 4J 41 X> 4J 3s CO M CO 4-1 CJ cml iI> r-l~ 41 <J < < oo as O '-4 CM CO HSt O+j P0) 4j <j 4: 4j i < i < L < 3 CO 3 H cd 41 4J 4J O3 HH TMoH n O V4 Pm Pm i-s DTH 000099111 fl ot BUDGET ITEM CATEGORY 1984 CONSTRUCTION FORECAST COMMITMENT SCHEDULE ($M) V IRR, % NROI, X 1984 BY QUARTERS 1st 2nd 3rd 4th A-I A-2 A-3 A-4 A-5 A-6 A-7 A-8 A-9 A-10 A-ll A-12 A-13 A-14 A-14 A-14 A-14 Total PMQI PMQI CR-E CR-0 CR-0 N-SH N-SH N-SH N-SH N-E N-E N-E R PMQI CR N R 53 -- 48 32 32 18(1) -- -- -- -- -- -- -- -- -- -- 47 -- 29 34 18 7 71 "(1) -- -- -- -- -- -- -- -- -- -- 115 120 180 150 26 14 95 65 865 840 160 40 85 50 160 130 21 14 95 65 - 540 1,120 ____ O) Revenue Portion Of Project Only TOTAL 1984 840 29 160 40 71 85 115 120 50 160 180 130 150 47 28 190 130 2,525 1985 CONSTRUCTION FORECAST COMMITMENT SCHEDULE ($M) BUDGET ITEM CATEGORY A-l A-2 A-3 A-4 A-4 A-4 A-4 Undefined N-SH N-E N-E PMQI CR N R -- IRR, % ' ---- -- -- -- -- -- -- -- Total 1985 BY QUARTERS NROI, % 1st 2nd 3rd 4th 65 -- 175 -- 25 16 99 67 -- 300 35 26 16 99 67 600 910 ____ 747 635 1 ,118 TOTAL 1985 65 175 35 51 32 198 134 1,810 2,500 7/18/83 DTH 000099112 BUDGET ITEM CATEGORY A-l A-2 A-2 A-2 A-2 Undefined N-SH PMQI CR N R -- Total 1986 CONSTRUCTION FORECAST COMMITMENT SCHEDULE ($M) IRR, Z 1986 BY QUARTERS TOTAL NROI, % 1st 2nd 3rd 4th 1986 35 35 -- -- 27 26 53 -- -- 18 18 36 ---- -- 104 104 208 -- -- 69 69 138 -- -- 400 700 1?030 2,130 653 700 1,247 2,600 7/18/83 DTH 000099113 !* It V8ga|g 2as * 3$ JCDl Ohn l saisssMs |o SBSS^S 88 $ 8 3 8 2 RS $ |3 382888 aaS2SN|S 8S2M s 88 7/18/83 DTH 000099114 * a is 7/18/83  8 & S SS8 3 120 50 70 100 38 341 150 104 254 3 VO in m 8 CHM 8 8 8 8 g| R28P:|S as s|g 88 oo mlro ^2 38 ~38 8 3|$ H 3 * 8 3|E S 8 3|3 sis s I iHQ 8*48 8H 8M 8H 8M 38 am k CM 7/18/83 DTH 000099116 II olo II vOlvO H vOQ n CONOCO CHEMICALS 1984 CONSTRUCTION FORECAST ABERDEEN CHEMICAL PLANT V Overall Economic Bases 1. Rated Production Capacity as of January 1, 1984, based on 1984 budgeted product mix and current rate limitations associated with low molecular weight resin and RP-200 production is: MM Lb./Yr, 2. Utility Costs Resin Flexible Compound Dry Blend Plasticizer 425 55 50 25 Year 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 Electricity (/KWH 4.48 4.74 5.03 5.33 5.67 6.01 6.35 6.73 7.15 7.57 7.99 Natural Gas $ MCF Dryers Boilers 4.74 5.12 5.43 5.76 6.10 6.47 6.86 7.27 7.71 8.17 8.66 4.45 4.81 5.10 5.41 5.73 6.07 6.43 6.82 7.23 7.66 8.12 Steam $/M Lb. 6.68 7.21 7.65 8.12 8.60 9.11 9.65 10.23 10.85 11.49 12.18 The electrical costs are based on the 1983 midyear cost escalated per information from TVA. The natural gas costs are based on the 1983 midyear cost escalated per information from North American Production. 3. Utility Requirements Electricity, KWH/Lb. Natural Gas, CF/Lb. Steam, Lb./Lb. Resin 0.14 0.90 0.74 Compound 0.20 -- 0.09 Plasticizer 0.08 0.01 0.74 Dry Blend 0.09 -- -- 7/18/83 DTH 000099119 CONOCO CHEMICALS 1984 CONSTRUCTION FORECAST ABERDEEN CHEMICAL PLANT V Overall Economic Bases (Continued) 4. Railcar Revenues Railcar revenues are estimated to be $2,500 per year. No escalation is assumed for railcar revenues. Load Size Lb. Resin, Dryblend, or Compound 170,000 Turnaround Days 60 Miles per Trip Revenue per Loaded Mile, $ 700 0.59 Information provided by Supply and Transportation Department. 5. Gross Margins (selling price minus variable cost) as supplied by the Business Area are as follows: *1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 Resin 5.9 7.3 7.7 6.0 6.5 7.3 7.7 8.1 8.5 8.9 9.4 Pipe 4.2 4.5 4.8 5.0 5.4 5.7 6.0 6.4 6.8 7.2 7.6 0/Lb. Dry Blend Fittings 7.4 7.8 8.3 8.8 9.4 9.9 10.5 11.1 11.8 12.5 13.2 RP-200 12.7 13.4 14.3 15.1 16.1 17.0 18.0 19.1 20.3 21.5 22.7 Compound 12.5 13.0 13.8 14.6 15.5 16.4 17.4 18.4 19.5 20.7 22.0 (1) Flexible or bottle compound 6. Budget preparation per D. J. Lorine's memo dated April 18, 1983. 7/18/83 DTH 00.0099120 . CONOCO CHEMICALS 1984 CONSTRUCTION FORECAST V ABERDEEN CHEMICAL PLANT PROJECT CLASSIFICATION AMD PRIORITY ($M) ,tMUST DO" PROJECTS A-2 Line III Metal Detector A-6 Plasticizer Modernization - Phase III A-7 Reduction of VCM Exposure A-8 Truck Loading Facilities For Silos A-10 VCM Standard Compliance Improvements A-ll Plant Sewer Revisions A-12 City Water Backflow Prevention A-13 Dryer Centrifuge Conveyor Assenftlies A-14 Miscellaneous Projects Under $15,000 Total * "OPTIONAL" PROJECTS Priority 1 A-3 Rotary Dryer Optimization 2 A-5 Office Systems Computer Installation 3 A-4 Reactor Jacket Expansion Joints 4 A-9 Security Fence 5 A-l Bottle Compound Production Total CONSTRUCTION CAPITAL 29 85 115 120 160 180 130 150 395 1,364 160 71 40 50 840 1,161 7/18/83 DTH Q00099121 I r DTH .000099122