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PESCO BEAM

Date:12 May 2016 Page 1 of 20


Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity
Client: Arabian Company for Services, Cairo, Egypt

This is a revised proposal made to Mr. Marwan El Newehy, Executive Manager, Arabian
Company for Services (ACS), 12 Elmurshedy Towers, Bavaria City Ring Road Katameya,
Cairo, Egypt (Tel: +201003222332) for a Used lubricating Oil system that can process 1000 lit/hr
of Used lubricating oil as feed. The proposed plant is complete with all processing equipment that
will recover one cut of lube (distillate) after separating the water, light fuel and asphalt extender in
the Short path distillation system. The proposal includes a regenerative media based lube polishing
system that will polish the distilled base lubes to produce a stable base lube product that will not
darken on keeping.

The proposal also includes the utility packages of Thermic fluid heater, Evaporative cooling tower
and Instrument air compressor. The plant will be fully automated and controlled through a control
computer (PLC) which is included in the scope of PESCO BEAM. Environment mitigation to handle
the VOC’s from the process is part of the system proposed. However, no system to handle the
recovered water is included as part of the scope quoted for.

PESCO BEAM is an international organization having its primary offices in Roanoke, Virginia, USA
and Chennai, India. The plant that is proposed is performance guaranteed and the guarantee is
based on our experience of having supplied more number of operating used oil re-refineries, world-
wide, than any other company. The system offered is the result of this global experience.

All information and details given in this proposal are confidential and should not be copied or
shared with anyone without the express permission of PESCO BEAM except for the purpose of
ordering the system with PESCO BEAM.

PESCO BEAM will be pleased to answer any questions on this proposal and thank ACS, Egypt for
the opportunity to participate in this project.

For PESCO BEAM Environmental Solutions Pvt Ltd

A.Subramaniam
Managing Director & Co-Founder.

PESCO BEAM Environmental Solutions Inc.,


US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791.
India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502
Web site: www.pescobeam.com
PESCO BEAM

Date:12 May 2016 Page 2 of 20


Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity
Client: Arabian Company for Services, Cairo, Egypt

ONE VIEW OF A PESCO BEAM USED OIL RE-REFINERY

PESCO BEAM Environmental Solutions Inc.,


US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791.
India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502
Web site: www.pescobeam.com
PESCO BEAM

Date:12 May 2016 Page 3 of 20


Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity
Client: Arabian Company for Services, Cairo, Egypt

BASIS
PROCESSING CAPACITY:

The plant is designed and sized to process 1000 lit per hour of used lube oil feed on a continuous
basis (8000 hrs per year).

FEED CHARACTERISTICS:

The output specifications are based on a typical feed which will be Used motor oil and having
mostly about 5% water. The product recovery percentage given in this proposal is however based
on an average 5% water and calculated on dry basis (after removal of 5% of water) so that the
percentage of water in feed, will not influence the recovery data.

PRODUCTS:

From a typical feed as specified above, the plant will produce the following on dry basis:

~ 14% Lights [Mixture of Naphthalene, Gasoline, Kerosene, Diesel];


~ 70% or more of medium and longer chain hydrocarbons as one cut of distillate;
~ 16% Asphalt extender which will contain the solids and Asphaltenes.

Note: The product rate and characteristics are completely dependent on the feed properties. Thus
if the feed is predominantly long chain hydrocarbons or lube oil of heavier grade, such will be the
distillate.

TYPICAL KEY PARAMETERS OF FEED

Typical key data of feed considered is as follows:

Water content Not more than 5%

Viscosity at 40 deg C 83 to 85 cSt

Viscosity at 100 deg C 10 to 12 cSt

Sulfur 0.89%

PESCO BEAM Environmental Solutions Inc.,


US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791.
India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502
Web site: www.pescobeam.com
PESCO BEAM

Date:12 May 2016 Page 4 of 20


Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity
Client: Arabian Company for Services, Cairo, Egypt

PRODUCT SPECIFICATIONS
Based on a typical feed, typical product data is as follows:

 Lights [a mixture of naphthalene, toluene, benzene, xylene, Kerosene & Diesel]

Parameter Method Value


Kinematic Viscosity @ 40 deg C max. Cst ASTM D 445 3.3
Cetane 60 – 70
Flash Point, deg C ASTM D 93 <10
Calorific Value, Mj / kg, minimum 45
Sulphur % wt, maximum ASTM D 1551 0.7
Water % vol., maximum ASTM D 95 0.25
Color, maximum ASTM D 1600 4
Density @ 15 deg C, kg/l, maximum ASTM D 1298 0.8
Carbon residue, % wt, maximum ASTM D 189 1.0
Pour point, maximum, deg C ASTM D 97 15

PESCO BEAM Environmental Solutions Inc.,


US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791.
India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502
Web site: www.pescobeam.com
PESCO BEAM

Date:12 May 2016 Page 5 of 20


Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity
Client: Arabian Company for Services, Cairo, Egypt

 Re-refined and Polished base lube analysis*

Tests Method Results


Distillate Polished product
Appearance Visual Dark honey colored Clear brown liquid
Density @ 15oC, Kg/Lit Gravimetry ~0.85 ~0.85
Conradson Carbon ASTM D 189-06 0.14 0.14
Residue, % wt
ASTM Color ASTM D 1500-07 ~6 ~4
Flash point (COC), oC ASTM D 92-05a >210 >210
Copper strip corrosion @ ASTM D 130 1a 1a
100oC
Total Acid Number, mg ASTM D 974-07 0.11 0.11
KOH/g
Total Base Number, mg ASTM D 974-07 1.63 1.63
KOH/g
Pour Point, oC ASTM D 97-07 Less than minus 15 Less than minus 15
Sulphur, % wt / ppm ASTM D 4297-03 ~ 0.83% ~ 0.75%
Viscosity, Kinematic at ASTM D 445-06 ~ 45 -50 ~ 45 - 50
40oC, cSt
Ash Content, % wt ASTM D 482-07 0.01 0.01

*These data may be used as guiding values and are not performance guarantees. Depends on
feed properties. Performance guarantee figures are given later in this proposal as an annexure.

PESCO BEAM Environmental Solutions Inc.,


US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791.
India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502
Web site: www.pescobeam.com
PESCO BEAM

Date:12 May 2016 Page 6 of 20


Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity
Client: Arabian Company for Services, Cairo, Egypt

 Residual: #6 Industrial Boiler Fuel or Asphalt extender

Parameter Method Value


Viscosity @ 40o C: CsT, maximum ASTM D. 445 95
Density at 15o C, kg/l, maximum ASTM D.1298 0.98
Sulphur % wt ASTM D. 1551 1.5
Water % vol., maximum ASTM D. 95 0.1
Flash Point, oC, minimum 70o C
Color Black, opaque
Carbon Residue % wt, maximum ASTM D.4530 12%
TAN mg/KOH/g ASTM D.974 Nil
Pour Point, maximum ASTM D.97 18o C
Calorific Value, MJ/Kg, minimum 43.8

Metals Ppm
Lead 10-120,000
Calcium 6000-38000
Barium 20-16000
Zinc 6000-15000
Iron 100-6000
Phosphorus 1100-6000
Magnesium 350-5000
Copper 10-1200

PESCO BEAM Environmental Solutions Inc.,


US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791.
India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502
Web site: www.pescobeam.com
PESCO BEAM

Date:12 May 2016 Page 7 of 20


Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity
Client: Arabian Company for Services, Cairo, Egypt

THE PROCESS AND PLANT: BRIEF NARRATIVE

Distillation & Evaporation System

The feed pump will pump the used lube oil feed stream into the forced circulation evaporator loop.
In this loop the water, aromatics and diesel / kero fractions will evaporate. These fractions will exit
the loop, condense in the condenser, and drop into the decanting light ends receiver circuit. The
lights which will be a mixture of naphtha, kero and diesel fractions, and recovered water will be
pumped to storage via a differential density level controlled arrangement.

The dirty de-watered feed will be pumped into the wiped film evaporator. The medium-and long
chain hydrocarbons will vaporize and will exit through a condenser to a product receiver and will be
pumped to storage. The residual, which contains the solids and tars (asphalt extender), flows by
gravity out of the evaporator to a pump, from where it will be pumped to its storage.

A vacuum skid consisting of vacuum pumps and boosters and several accessories will supply
vacuum as required, to the different stages of the process.

The source of process heat will be thermic fluid heater, which will be supplied by PESCO BEAM.
Cooling water at the required temperature and flow will be supplied using a Cooling tower, also
part of PESCO BEAM’s scope of supply.

Compressed Instrument grade @ 20 cfm at 7 bar pressure will be required for operating the
pneumatic instruments of the system and will be supplied by PESCO BEAM.

The plant offered is complete with a thermal oxidation system for preparing the VOC emissions
from the process to be fed to the heater box of the thermic fluid heater for complete combustion
before being exhausted to the stack.

The system will be supplied fully assembled on several painted carbon steel skids with all hot
surfaces insulated. The skids will be prewired and piped complete with the instruments and
controls with flanged terminal connections that will be ready to be hooked to field piping. The plant
will be PLC controlled for automatic operation through a control computer. All the electrical and
electronic components on the skid will be flame proof, suitable for gases in Groups II A & B.
Included will also be non-explosion proof control panels containing all the necessary thermal
overloads and control modules, all for remote location [more than 50 feet from the skid]. All the
wetted surfaces will be Carbon steel (Boiler quality) unless otherwise specified. The system will
come insulated and ready to hook up to the infrastructure of Thermic fluid, cooling water,
electricity, instrument air, and storage tanks. The system can be located outside even though we
recommend a roof and side cover for protection from winds and sand storms.

PESCO BEAM Environmental Solutions Inc.,


US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791.
India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502
Web site: www.pescobeam.com
PESCO BEAM

Date:12 May 2016 Page 8 of 20


Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity
Client: Arabian Company for Services, Cairo, Egypt

Lube polishing system (LPS):

The LPS offered will polish the distillate recovered from the system. At rated feed rate of wet oil at
1000 lph, lube fraction distillate recovered will be ~ 700 lph and the polishing system will accept
this as the feed rate. Reduction in color from a feed rate color of ~ 6 to a product color of 4 and
removal of odour will be the performance of the LPS offered. The recovered oil will be a stable
base oil. It should however be noted that lighter colored product can be achieved but at the cost of
capacity.

About 10 - 12% of the feed to the LPS will not be available as polished product. Less than 2% will
be the invisible loss as vapor during the reactivation process and the balance will be collected as
the liquid residue during the reactivation phase. This will be recycled to the feed tank. It should be
noted that this recycle is needed as the system removes color and other odour causing
ingredients. It should also be noted that when the plant is operated for lower polished product color,
shorter polishing times, more frequent drains/reactivation will be required and therefore more
material will be recycled.

The LPS operates in two phases:

1. Processing Phase: In this phase, the oil is polished by forced percolation through "adsorptive
media" columns. The system comprises of multiple banks of multiple columns each.

2. Reactivation Phase: After the polishing cycle, the media beds are usually quite saturated and
the feed and product color approach each other. This justifies reactivation. The media is
reactivated in the columns and a quantity of oil is collected and pumped for reprocessing
(drain). VOC’s that are generated during this reactivation phase are treated in the Thermal
oxidizer and fed to the fire box of the thermic fluid heater for complete combustion.

The system shall be fully assembled on heavy duty steel bases. The system will be designed to be
operated through a PLC.

It needs to be noted that when the media is spent, it needs to be replaced. Such replacement of
the media will be once in ~180 days depending on the type of oil being processed and the care
with which the system is operated. The spent media is a non-hazardous land fill and will have no
oil – it will pose no disposal issue and the quantity will be a small amount as it needs to be
disposed only once in 4-6 months. Combined with the excellent quality & stability of the polished
base lube, this feature renders the regenerative lube polishing system offered, unique and of very
special design. It also needs to be highlighted that this system is very different from the standard
systems offered by others, both in its process, design, fluid mechanics and operation.

PESCO BEAM Environmental Solutions Inc.,


US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791.
India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502
Web site: www.pescobeam.com
PESCO BEAM

Date:12 May 2016 Page 9 of 20


Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity
Client: Arabian Company for Services, Cairo, Egypt

ENVIRONMENTAL IMPACT

Exhaust from the plant:

1. The exhaust from the vacuum pump vent, and Lube polishing system: These will consist of
VOC’s and some sulfur compounds. The total flow rate is low, and will depend on the types
of oil being processed, but because they can cause odor they will be handled via a thermal
oxidation piping train (TOX) and sent to the fire box of the thermic fluid heater for complete
combustion. An active carbon filter alternative is provided and the vent will be automatically
diverted to the carbon filter if the Thermic fluid heater trips.

Recovered water:

At 5% water in feed, ~ 50 lit/hr water (recovered from the feed oil) containing trace (<2%)
hydrocarbons needs to be disposed off by the client in the existing ETP or as appropriate. No
equipment is included in the scope of this proposal for this disposal.

PESCO BEAM Environmental Solutions Inc.,


US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791.
India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502
Web site: www.pescobeam.com
PESCO BEAM

Date:12 May 2016 Page 10 of 20


Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity
Client: Arabian Company for Services, Cairo, Egypt

SCOPE OF PESCO BEAM


(Please see attached PFD for further clarity)
Item head Deliverables
System Engineering 1. Plant layout on plot plan.
(to be provided in a 2. Foot print with load data
phased manner after 3. Electrical lists
commercial closure of 4. Final documentation of all supplies which will include Operation
contract) & Maintenance manuals which will include ordering
specifications for all spares.
Supplies 1. Skid mounted processing plant complete with equipment and
interconnecting piping within each of the skids.
2. All measuring and control instruments for the processing plant
within each of the above skids.
3. All electrical and instrument cabling inside each of the skids
terminated in skid junction boxes on the skid.
4. Thermal oxidation system consisting of the piping train and
alternate carbon canisters to handle the VOC and feed it into
the thermic fluid heater of client.
5. Regenerative Lube polishing system, skid mounted complete
with its internal wiring, instrumentation, controls.
6. Motor Control Center (panels) for remote location for the
processing plant supplied by PESCO BEAM.
7. PLC controller and control computer for the processing plant
fully integrating the plant with utilities and tank farm operation.
8. Used oil feed pump with its motor for location in the tank farm.
9. Thermic fluid heater (Hot oil generator) complete with
modulating burner and controls.
10. Evaporative cooling tower.
11. Cooling water circulation pump with its motor for location near
the Cooling tower.
12. Thermic fluid circulation pump with its motor for location near
the thermic fluid heater.
13. Thermic fluid expansion tank with all necessary piping.
14. Thermic fluid dump tank.
Services 1. Discussion with your project engineer at site for finalizing the
site layout.
2. Start-up and Commissioning of the plant.
3. Training in plant operation: Will be provided during
commissioning. We expect that adequate numbers of properly
qualified and experienced crew will be available to receive this
training in the process and control of the plant.
4. Follow-up visits to site if needed on per diem basis.

PESCO BEAM Environmental Solutions Inc.,


US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791.
India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502
Web site: www.pescobeam.com
PESCO BEAM

Date:12 May 2016 Page 11 of 20


Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity
Client: Arabian Company for Services, Cairo, Egypt

BATTERY LIMITS OF PESCO BEAM


(Please see attached PFD for further clarity)

The following narration is to clearly mention the battery limits of each unit that is being supplied to
you as part of this proposal. Please refer PFD attached for additional clarity:

Item head Battery limit


Process skids  Flanged connections for the entry and exit of process
fluid, Thermic fluid, Cooling water and Instrument air.
 Electrical and Instrumentation junction box(es) that will
have all the instrument and electrical wiring of that
skid, terminated as per terminal strip numbering
Feed pump  Stand alone pump with motor mounted on a base
frame for location in the tank farm.
Thermic fluid heater  Flanged entry for the fuel;
 Flanged entry for the VOC’s from the TOX;
 Flanged connection for the entry and exit of the
Thermic fluid;
 Flanged exit for the exhaust from the heater.
Thermic fluid heater circulation  Flanged entry and exit of the Thermic fluid.
pump
Cooling tower  Entry and exit of the water to and from the tower;
 Blow down valve outlet
Cooling water circulation pump  Flanged entry and exit of the water from the pump.
Motor Control Center (Process  Fully wired stand-alone control centers with all wiring
MCCs) terminated inside the MCC according to terminal strip
numbering.
PLC Controller (Process)  Fully wired center, stand alone, with control computer
and control card.
Regenerative Lube polishing  Flanged connections for the entry and exit of the oil to
system (LPS) be polished, Cooling water, Recycle, exhaust gases to
Thermal oxidation system;
 Marshalling box(es) that will have all the instrument
and electrical wiring of that skid, terminated as per
terminal strip numbering.
Thermal Oxidation system  Flanged connection for the entry of VOC vapours from
Vacuum skid, Tank farm and LPS;
 Flanged connection for the exit of these vapours into
the fire box of thermic fluid heater / fail safe-carbon
canisters.

PESCO BEAM Environmental Solutions Inc.,


US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791.
India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502
Web site: www.pescobeam.com
PESCO BEAM

Date:12 May 2016 Page 12 of 20


Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity
Client: Arabian Company for Services, Cairo, Egypt

CLIENT SCOPE OF WORK


(Please see attached PFD for further clarity)

Item head Deliverables


Engineering 1. Supply of plot plan of site;
2. All civil engineering designs, foundation designs, building
designs;
3. Electrical design and engineering for incoming power, and
electrical house ready for distribution of this power;
4. Plumbing and sanitation engineering for the project;
5. Fire safety design and engineering;
6. Air conditioning design and engineering;
7. Laboratory design and engineering.
Tank farm 1. Fabrication and erection of all tanks in the tank farm;
2. Supply and erection of all tank farm pumps as per process
requirement to be discussed and agreed upon;
3. Supply and mounting of all tank farm instruments that will
be integrated with the PLC, again as per P&ID to be
provided.
Yard piping 1. Fabrication and erection of Interconnecting piping between
thermic fluid heater, Cooling tower and Instrument Air
compressor and the processing plant;
2. Fabrication and erection of Interconnecting piping between
tank farm, utilities and processing plant;
3. Insulation as required, of the above piping
Field electrical and 1. Laying and termination of electrical wires and cables from
Instrumentation wiring electrical house equipment to the various points in the plant
and to the plant MCCs.
2. Laying and terminating all instrumentation cabling between
panel/PLC and skids/tank farm/utilities/piping as needed.
Plant chimney 1. Fabrication and erection of main chimney and any other
auxiliary chimneys of the plant.

Other Supply 1. Developed land with all civil and structural works, access
platforms, walk ways;
2. Electrical house with necessary switch gear and panels
ready for distribution of power to all points in the site;
3. All civil works and foundations;
4. Cable trenches as required for piping, wiring distribution;
5. Concrete slabs as necessary;
6. Water storage sump/tank;
7. Used oil receipt arrangement;
8. Product load out arrangement;

PESCO BEAM Environmental Solutions Inc.,


US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791.
India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502
Web site: www.pescobeam.com
PESCO BEAM

Date:12 May 2016 Page 13 of 20


Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity
Client: Arabian Company for Services, Cairo, Egypt
9. Fully functional laboratory;
10. Lighting and air-conditioning for 24 hr operation;
11. Fire safety equipment and all related accessories as
erected and conforming to local regulations;
12. Continuous feed to plant, fuel, water, all lubricants and
greases as per PESCO BEAM recommendation, Feed oil of
appropriate quality and quantity; Thermic fluid;
13. Activated carbon as per quantity and quality to be specified.

Services 1. Erection of all PESCO BEAM supplies.


2. Connecting PESCO BEAM supplies to utilities and tank
farm.
3. Furnished air-conditioned accommodation for two/three
engineers/technicians near site during their visits for pre-
erection site discussions, supervision of erection/loop
checks/start-up/commissioning/training of your operators;
4. Transport for our engineers to and from site during visit and
their stay at site;
5. All applicable taxes, duties and permits at destination
country;
6. All required licenses, permits for the project;
7. Dealing with all local authorities on all issues related to the
project and site work;
8. Transport from Chennai Port, Shipping insurance, Receipt
at port of destination, clearing, local transport, receipt at
site, unloading and safe keeping of all PESCO BEAM
supplies;
9. Providing adequate and appropriately skilled personnel pre
and post start-up.
10. Providing appropriate communication facilities like internet
connectivity and a working desk to our site personnel during
project tenure.

PESCO BEAM Environmental Solutions Inc.,


US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791.
India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502
Web site: www.pescobeam.com
PESCO BEAM

Date:12 May 2016 Page 14 of 20


Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity
Client: Arabian Company for Services, Cairo, Egypt

SUPPLY CONDITIONS

1. The various items in the scope of supply of PESCO BEAM will be skid mounted or if shipped
as loose items [like instruments that will damage during transit], packed carefully for sea-
worthy transport.
2. These will be sent in container, as per a packing list that will accompany each supply and also
be provided with the shipping documents.
3. The skids will be loaded in PESCO BEAM shop [Chennai, India] on local road transport for
transport to Port of Origin (Chennai, India).
4. As freight costs vary based on several conditions, it is our usual practice to forward actual
costs to the client prior to shipment. PESCO BEAM has not included in its scope, the following:
a. Sea Freight from Port of origin to Port of destination.
b. Shipping / Transit insurance.
c. Receipt and clearance at Port of destination.
d. Transport from port of destination to site.
e. Any and all related insurance.
5. For purposes of estimating freight, the shipment can be considered to involve:
a. 7 Open top 40 foot containers (out gauge); and,
b. 1 Open top 40 foot container (in gauge).

PESCO BEAM Environmental Solutions Inc.,


US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791.
India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502
Web site: www.pescobeam.com
PESCO BEAM

Date:12 May 2016 Page 15 of 20


Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity
Client: Arabian Company for Services, Cairo, Egypt

UTILITY REQUIREMENT

No Item head Quantity Period Remarks


1 Space 15m x 15m One time Does not include space
RCC Pad for required for tank farm,
Distillation – utilities, control room.
needs no
roof

16m x 15m Side walls of the shed


RCC pad needs to be open to allow
with roof for cross ventilation.
LPS.
2 Electric power
2.1 Connected load, 440V, 3ph, 50Hz ~ 150 kW One time Only for PESCO BEAM
scope of supply.
2.2 Consumed power ~110 kW Per hour Only for PESCO BEAM
scope of supply.
3 Fuel as LDO for the Thermic fluid 80 lit Per hour
heater
4 First fill & Make up water for First fill will be 7500 lit and evaporation loss make-up will
Cooling tower be 250 lit per day.
5 Instrument air (Client scope) 20 cfm compressed air at 7 bar and minus 40 deg C dew
point.
6 Caustic for dosing 3.5 lph of 25% caustic in water (Sp Gr of 1.25)

First fill and make-up requirements of other major consumables;

No Item head Quantity Period Remarks


1 Thermic fluid first fill ~ 5000 lit Assumes a particular layout.
2 Polishing media ~9,000 kg Once in Actual cycle time can be
~120 to more or less depending on
180 days feed. First fill with supply. $
4.00 per kg F.O.B US Port.
3 Activated Carbon
3.1 First fill 660 kg First fill US$ 2.00/kg F.O.B. Chennai,
India.
3.2 Replacement requirement 330 kg 3 months Cyclic replacement

PESCO BEAM Environmental Solutions Inc.,


US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791.
India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502
Web site: www.pescobeam.com
PESCO BEAM

Date:12 May 2016 Page 16 of 20


Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity
Client: Arabian Company for Services, Cairo, Egypt

COMMERCIAL TERMS OF OFFER

BASIS OF All prices are in US Dollars, FOB Chennai, India. All applicable duties in
PRICES country of destination, shipping charges, transit insurance, freight from port of
discharge to site, any insurance for such carriage will be extra to your account.

SHIPPING The system will be ready for shipping within six months from the start date as
defined below. This includes 1 week of QC at our shop by engineer from the
US.

START DATE The Start date of the contract will be the later date of the following events:
1. Signing of the contract by both parties
2. Receipt of down payment and Letter of Credit

PAYMENT All remittances shall be by wire transfer to PESCO-BEAM Environmental


TERMS Solutions as per transfer information to be provided:
 10% as down payment with your order
Balance through a transferable, irrevocable letter of credit drawn on a first
class bank. The letter of credit will allow transshipment as all shipment from
Chennai will get transshipped at other ports on their voyage. This Letter of
Credit will pay as follows:
 10% against completion of engineering as witnessed by an engineering
meeting at Chennai. Engineering documents will be handed over and
signed off as complete and will be the document witnessed by the LC
for payment;
 30% when work on the manufacturing is 50% comp0lete and witnessed
by the following:
 All major raw materials will be ordered and fabrication
work on all the equipment will be under progress;
 All pumps, valves and instruments will be ordered.
 30% when complete plant is ready for shipping and inspected by your
engineer at our shop. The inspection will also be signed off by our US
engineer and such inspection report will be the document that will
trigger the payment through the LC;
 5% when the plant is erected at site and is ready for commissioning;
 5% when the plant is commissioned or 120 days from shipping,
whichever is earlier and against an Indemnity bond issued by PESCO
BEAM, indemnifying ACS against defects in performance, for a period
of 12 months from the date of commissioning.

PESCO BEAM Environmental Solutions Inc.,


US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791.
India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502
Web site: www.pescobeam.com
PESCO BEAM

Date:12 May 2016 Page 17 of 20


Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity
Client: Arabian Company for Services, Cairo, Egypt

WARRANTY/ The system is guaranteed to generally perform as specified in this offer.


GUARANTEE Specific performance guarantee parameters will be agreed to after feed quality
is tested and will be demonstrated over a 24 hr run during commissioning. An
indicative document is annexed with this proposal.

The following provisions will have to be made while checking the guarantees:
 All customer supplied utilities match requirements specified.
 A PESCO BEAM representative is present during start-up for 2 weeks
 The customer’s employees will work as per instructions given by our
commissioning engineer, follow good engineering practices and follow
the operation and instruction manual in running and maintaining the
plant.
The plant supplied is Guaranteed to perform as specified in this proposal.
Components will be guaranteed by PESCO BEAM for a period of One year
from the date of receipt at Port of destination plus 30 days to allow for erection
and start-up, or from the date of commissioning – whichever is sooner - normal
wear and tear exempted. If commissioning is delayed due to fault of PESCO-
BEAM then the date of commissioning will be the start date of the warranty
period, no matter when that is. Seals and bearings and indicating lamp bulbs
will carry only a limited warranty of 60 days unless specified otherwise by the
manufacturers. If they fail within this period they will be shipped free of any
cost. The warranty on component and accessory items not manufactured by
PESCO BEAM is that extended by the manufacturer of such component or
accessory.
Our liability is also limited to replacement or repair of any defective
components and we are not liable for any damage to personnel, property or
loss in production.

SYSTEM The manufacture is envisaged under our stage-wise internal inspection. Your
INSPECTION company representatives are welcome and encouraged to inspect the
completed system prior to shipment. That way all questions can be answered
and any last minute changes made, prior to the system leaving our plant. No
third party inspection is envisaged unless specifically accepted by PESCO
BEAM.

AMENDMENTS Should any changes in scope of supply be required after the contract is signed
OR CHANGES / LOC released, we reserve the right to have the price and terms adjusted to
accommodate the change. If the changes required are of major nature and
cannot be implemented, we reserve the right, not to implement such changes.

FORCE The performance of this Agreement, except for the payment of money for
MAJEURE services already rendered, may be suspended by either party in the event the
performance of obligations are prevented by a cause or causes beyond the

PESCO BEAM Environmental Solutions Inc.,


US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791.
India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502
Web site: www.pescobeam.com
PESCO BEAM

Date:12 May 2016 Page 18 of 20


Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity
Client: Arabian Company for Services, Cairo, Egypt
reasonable control of such party. Such causes shall include, but not be limited
to, acts of God, acts of war, riot, fire, explosion, accident, flood, or sabotage;
lack of adequate fuel, power, raw materials, labor or transportation facilities;
governmental laws, regulations, requirements, orders or actions; breakage or
failure of machinery or apparatus; national defense requirements; injunctions or
restraining orders; labor trouble, strike, lockout or injunction (provided that
neither party shall be required to settle a labor dispute against its own best
judgment).
The party asserting a right to suspend performance under this Section must,
within a reasonable time after he has knowledge of the effective cause, notify
the other party of the cause for suspension, the performance suspended, and
the anticipated duration of suspension. Upon receipt of such notice advising of
a material or indefinite suspension of performance, and if such suspension
substantially impairs the value of this Agreement to him, a party may, within a
reasonable time (not to exceed thirty days), terminate this Agreement. If such
notice of termination is not provided, this Agreement will lapse with respect to
any performance suspended hereunder.
The party asserting a right to suspend performance hereunder shall advise the
other party when the suspending event has ended, and when performance will
be resumed.

JURISDICTION The contract resulting from this proposal will be governed by the laws of the
Republic of India.

VALIDITY This offer is valid till 27 May 2016 and will be valid beyond this date only if it is
duly extended in writing by PESCO BEAM.

PESCO BEAM Environmental Solutions Inc.,


US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791.
India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502
Web site: www.pescobeam.com
PESCO BEAM

Date:12 May 2016 Page 19 of 20


Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity
Client: Arabian Company for Services, Cairo, Egypt

PRICE SCHEDULE

All figures in US Dollars

Item head Value in US$


Used motor Oil re-refining system as described in this proposal complete
with Lube polishing System and utility package of Thermic fluid heater,
cooling tower and Instrument air dryer.
996,000
[ US$ Nine hundred and ninety six thousand]

Per diem rates for the deputation of engineers / technicians beyond what is contracted

Compensation for our Engineer/Technicians for site work, beyond what has $500
been stated as part of this proposal will be per day (8 hrs)
Travel expenses, Supplies and Materials, Special Handling, Subcontract and Specialty services
will be at Cost + 12%
Payment terms for above service: 100% as an advance for the time you require them
Other conditions: If it is an extension of their stay at site, no to and fro charges will need to be paid.
Otherwise, to and fro economy class air fare, boarding and food for the period of stay as well as
free local transport will be paid by you. They should also have access to international telephone(s),
fax and internet facilities.

PESCO BEAM Environmental Solutions Inc.,


US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791.
India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502
Web site: www.pescobeam.com
PESCO BEAM

Date:12 May 2016 Page 20 of 20


Revised proposal for a Used lubricating oil re-refinery of 1000 lit/hr processing capacity
Client: Arabian Company for Services, Cairo, Egypt

ANNEXURE 1: PERFORMANCE GUARANTEES

Such guarantees will be the average data from a 24 hour run of the plant during commissioning
and after the plant stabilizes. These data will be based on operator log/field data and laboratory
analysis.

1. Capacity of the distillation section of the plant: 1000 lph feed rate on a continuous basis with a
lube distillate yield of 70% on a dry basis.

2. Lube polishing System capacity: Feed rate of 700 lph

3. Lube oil distillate / Polished lube key properties based on feed data given in this proposal:

Tests Method Results


Distillate Polished product
ASTM Color ASTM D 1500-07 ~6 ~ 4.0
Flash point (COC), oC ASTM D 92-05a >210 >210
Viscosity, Kinematic at ASTM D 445-06 50 50
40oC, cSt

4. Utilities:

4.1. Fuel consumption: 80 lph

4.2. Power consumption: 110 kW/Hr averaged over 24 hrs.

PESCO BEAM Environmental Solutions Inc.,


US Office: 1005 Industry Circle, S. E, Roanoke, VA 24013. Tel: +1 540 206 2788; Fax: +1 540 206 2791.
India Office: 136 Thodugadu Village, Sriperumbudur 602105. Tel: +91 44 271 55 555; Fax: +91 44 271 55 502
Web site: www.pescobeam.com