Motiva Board of Directors MeetingNovember 7, 2001

Convent Refinery and

Norco Refinery

Low Sulfur Gasoline Projects

Regulatory ActivityRegulatory Activity

LS Gasoline30 ppm Refinery Avg w/Credits

(90 ppm Corporate Avg) (300 ppm Cap)

LS Gasoline30 ppm Ref. Avg w/Credits

(80 ppm Cap)

LS GasolineNo Refinery Average

(120 ppm Corporate Avg)(300 ppm Cap)

EPA Phase II RFG Began

(1/1/00)

Atlanta30 ppm Sulfur

Gasoline

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

FEDERAL

STATE

North Carolina30 ppm Sulfur

Gasoline

Atlanta/Birmingham150 ppm Sulfur

Gasoline

Federal Low Sulfur StandardFederal Low Sulfur Standard

Standard (ppm S) 2004 2005 2006+

Refinery Average N/A 30 30

Refinery Per-Gallon Cap

300 300 80

Corporate Average 120 90 N/A

Credits / AllotmentsCredits / Allotments

Credits Refinery generates if < 90% of ‘97-’98 baseline during ‘00-‘03 Refinery generates if < 30 ppm S in ‘04+

Allotments Refinery generates in ‘03 only if < 60 ppm S

Refiner generates if < standard in ‘04 or ‘05

1997-98 Refinery Baseline Sulfur (ppm)

608

335

275

375

ConventDelaware CityNorcoPort ArthurCorporate Average

2000 Refinery Average Sulfur (ppm)

545

230

254

246

ConventDelaware CityNorcoPort ArthurCorporate Average

Refinery MOGAS Sulfur LevelRefinery MOGAS Sulfur Level

390 315

Federal S standard phased in over 3 years beginning ‘04 Atlanta area & North Carolina require 30 ppm S (80 ppm

cap) effective Apr‘03 and Jan‘04 respectively MTBE ban in Motiva markets by ‘05 due to state action or EPA ban under TSCA RFG oxygenate mandate remain in place - ethanol only acceptable replacement Market demand for RFG constant Overall gasoline supply volume will shrink by 2% 93 octane premium continues Premium demand falls by 2% points during 5 yr plan

Motiva PremisesMotiva Premises

Low Sulfur Gasoline StrategyLow Sulfur Gasoline Strategy

Atlanta area requires 30 ppm S gasoline Apr‘03 PAR will supply 20 MBPD ULR in 2003 NOR will supply 5 MBPD ULP in 2003

COR/NOR/PAR supply 30 ppm S gasoline to Atlanta / North Carolina during ‘04 & ‘05

Motiva will generate credits during ‘00 -‘03 as a result of RFG Phase II

Use credits to meet refinery avg (30 ppm) in ‘05 and ‘06 Motiva operate at corporate avg (120 ppm) in ‘04Motiva operate at corporate avg (90 ppm) in ‘05

TechnologiesTechnologies

Conventional HydrotreatingCD Tech ExxonMobil ScanfiningIFP Prime G and G+UOP ISAL and ISAL-2Phillips S-ZorbBP OATS

CD Tech Hydro / HDS Technology CD Tech Hydro / HDS Technology

CDHydro®

MCN + HCN

HCN from Main Fractionator Sidedraw

LCN

Hydrogen

MCN + HCN

MCN

HCN

CDHDS®

Hydrogen

AmineTreatand Recycle

POLISHINGREACTOR to

achieve Ultra Low S levelsMercaptans + di-olefinsform sulfides, which distill down to the bottom of column.

(Thioetherification)

Hydro-desulfurization

Hydrogen

FCC C5+Gasoline

CD Tech Hydro / HDSCD Tech Hydro / HDS

PRO’s Relative lower “Total Cost of Ownership” (TCO) Polishing reactor enhances octane retention (selectivity) Minimal yield loss Catalyst life consistent w/FCCU cycle Proven track record Adaptable to future ultra low sulfur (<10 ppm)

CON’S Catalyst costs (lease and handling)

Octane Loss Comparison Octane Loss Comparison

Technology(R+M)/2

(FCCU gasoline)$MM per year

(relative to base)

CDHDS+ 1.4 BaseScanfining-2 1.7 1.8CDHDS 2.5 6.9Scanfining-1 3.0 10.8IFP Prime G 3.8 15.4Conventional 4.3 19.1

Basis: (1) COR 57 MBPD full-range FCCU gasoline (2) 98.4% sulfur removal basis full-range (3) Light-cat FCCU gasoline treated w/CDHydro (4) Business Plan octane value – 0.8 cpg

NOR BLOCK FLOW DIAGRAMNOR BLOCK FLOW DIAGRAM

LCN ProductBPD 17,394

FCCU CD S, ppmw 40Debutanizer Bottoms Hydro RSH <5BPD 28,000 Br. No. 96S, ppmw 138Br. No. 71

CDHDS Stabilized Naphtha

BPD 55,355 BPD 55,239S, ppmw 807 S, ppmw 40

Br. No. 18

Stabilizer BottomsBPD 45,000S, ppmw 920Br. No. 40

NOR LSG PROJECT SCOPENOR LSG PROJECT SCOPE

$MMCD Tech Hydro/HDS 60

Includes palladium

Offsites 20

Feedstock/product/rerun lines Electrical infrastructure/expansion Utilities Site prep including demo/equipment relocation Hydrogen pipeline Off-spec tankage

NOR LSG Project Milestone ScheduleNOR LSG Project Milestone Schedule

ID Task Name

1 FEL

2 Permit

3 AFE

4 Detailed Engineering

5 Procurement

6 Construction

7 Commissioning & Startup

8 30 ppm S Gasoline to NC

O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F2001 2002 2003

Project Definition Rating Index (PDRI)

0100200300400500600700

Nov-00 1-Jul

FEL Timeline

PD

RI S

core

Completion of FEL

Start of FEL

$MM

Business Plan 58

Additional OSBL Scope (piping) +10

Additional Equip. & Labor (CD Tech Unit) +6 Additional ISBL Engineering +3 Other +3

Current 80

NOR Current versus Forecast CapitalNOR Current versus Forecast Capital

NOR LSG Project Equipment SummaryNOR LSG Project Equipment Summary

Item

Business Plan

#

Current

#Vessels 9 23

Pumps 16 19

Exchangers 14 21

Compressor 1 1

Heater 1 1

Other 0 7

TOTAL 41 72

NOR LSG Capital ProjectNOR LSG Capital Project

Project Estimate

Project Capital $MM

Estimate Accuracy

Capital Range $MM

May 2000 (2001 Business Plan)

58 -30% / + 50% 41 to 88

Oct 2001 (Final AFE Estimate)

80 -10% / + 10% 72 to 88

NOR ‘Project Case’ EconomicsNOR ‘Project Case’ Economics

Project Case based on: Total project cost of $84.4 MM (capital plus project expense) Investment Equivalent of $9.7 MM for catalyst lease over 5-year catalyst life Tax Depreciation of 10 years Corporate Tax Rate of 36.3% Discount Rate of 10.5% Inflation Factor of 2.5% (for expenses)

NPV @ 10.5% Nominal / 8.8% Real $162 MM/$144.8 MM

Internal Rate of return - Nominal 33.1% Internal rate of Return - Real 29.9% Present Worth Payout - Start/Mech. Comp. 5.5 years / 2.7 years Value Investment Ratio - Nominal 2.4 Project Investment Projection

2000

2001

2002

2003

2004

2005

2006

2007

NIAT, $MM - (0.3) (1.9) (2.4) 19.7 18.6 33.9 33.9 ROACE, % - - (8.3) (4.5) 30.0 29.9 58.3 62.5 After Tax Cash Flow, $MM (0.5) (7.0) (33.5) (28.6) 26.2 25.1 39.4 39.0 Project Capital Expenditure Schedule, $MM 0.5 6.7 36.6 35.2 1.0 - - - Project Expense Expenditure Schedule, $MM - 0.5 3.0 0.9 - - - -

NOR Project Capital CostNOR Project Capital Cost

150

155

160

165

170

175

180

"- 10%" Project Case "+ 10%"

Capex ($MM)

NP

V (

$M

M)

20.0

23.3

26.7

30.0

33.3

36.7

40.0

IRR

(%

)

NPV IRR

NOR FCCU Naphtha ProcessingNOR FCCU Naphtha Processing

50

100

150

200

250

300

350

"- 1" "- 0.5" ProjectCase

"+ 1" "+ 2"

Processing Cost ($ per bbl)

NP

V

($M

M)

0

10

20

30

40

50

60

IRR

(%

)

NPV IRR

Norco Premium GasolineNorco Premium Gasoline

Production Capability (MBPD)

0

10

20

30

40

50

60

2001 2006+

93 Octane 92 Octane 91 Octane

Note: 2006 includes low sulfur gasoline and ethanol

COR BLOCK FLOW DIAGRAMCOR BLOCK FLOW DIAGRAM

LCN ProductBPD 18,418lb/hr 182,796S, ppmw 35Br. No. 113

RSH <5

FCCU CDDebutanizer Bottoms HydroBPD 57,000S, ppmw 1,732Br. No. 63

CD PolishingHDS Reactor Stabilized Naphtha

BPD 38,065 BPD 38,081S, ppmw 2,438 S, ppmw 28Br. No. 42 Br. No. 15

RSH 15

COR LSG PROJECT SCOPECOR LSG PROJECT SCOPE $MMCD Tech Hydro/HDS 55

Includes palladiumPolishing Reactor 5 Off-sites 25

65,000 feet of piping 1,000 feet of new piperack New and revised pumps/exchangers/coolers Storage tank conversions Site prep Underground sewer and firewater piping FCCU caustic treater modifications Engineering

COR LSG Project Milestone ScheduleCOR LSG Project Milestone Schedule

ID Task Name DUR

1 FEL 153d

2 Permits 239d

3 AFE Approval 0d

4 Detailed Engineering 283d

5 Procurement and Delivery 391d

6 Construction 414d

7 Commissioning & Start-up 43d

8 Mechanical Completion 0d

9 LSG at the Pump 0d

11/13

9/15

12/1

ON D J FMA M J J A S O N D J FMA M J J A S ON D J FMA M J J A S O N D J FMA M J J A S O N D J FMA M J J A S O2001 2002 2003 2004 2005

Project Definition Rating Index (PDRI)

0100200300400500600700

Nov-00 1-Jul

FEL Timeline

PD

RI S

core

Completion of FEL

Start of FEL

$MM

Business Plan 69

Additional Equip. & Labor (CD Tech Unit) +10 Additional ISBL Engineering +3 Additional OSBL Piping & Piperack Scope +2 Additional Site Prep / OSBL Engineering +1

Current 85

COR Current versus Forecast CapitalCOR Current versus Forecast Capital

COR LSG Project Equipment SummaryCOR LSG Project Equipment Summary

Item

Business Plan

#

Current

#Vessels 14 32

Pumps 20 27

Exchangers/Coolers 20 26

Compressor 1 1

Heater 1 1

Other 0 7

TOTAL 56 94

COR LSG Capital ProjectCOR LSG Capital Project

Project Estimate

Project Capital $MM

Estimate Accuracy

Capital Range $MM

May 2000 (2001 Business Plan)

69 -30% / + 50% 48 to 104

Oct 2001 (Final AFE Estimate)

85 -10% / + 10% 77 to 94

COR ‘Project Case’ EconomicsCOR ‘Project Case’ Economics

NPV @ 10.5% Nominal / 8.8% Real $98.6 MM / $87 MM

Internal Rate of return - Nominal 27.4% Internal rate of Return - Real 24.3% Present Worth Payout - Start/Mech. Comp. 5.8 years / 3.1 years Value Investment Ratio - Nominal 1.3 Project Investment Projection

2000

2001

2002

2003

2004

2005

2006

2007

NIAT, $MM (2.2) 21.5 21.4 18.7 21.4 ROACE, % (3.5) 28.3 29.9 27.7 33.8 After Tax Cash Flow, $MM (7.0) (38.5) (32.3) 29.5 28.4 24.8 26.8 Project Capital Expenditure Schedule, $MM 7.0 41.0 37.0 - - - - Project Expense Expenditure Schedule, $MM - - 1.0 - - - - Project Case based on:

Total project cost of $ 86 MM (capital plus project expense) Investment Equivalent of $4.4 MM for catalyst lease Tax Depreciation of 10 years Corporate Tax Rate of 36.3% Discount Rate of 10.5% Inflation Factor of 2.5% (for expenses)

COR Project Capital CostCOR Project Capital Cost

90

95

100

105

110

"- 10%" Project Case "+ 10%"

Capex ($MM)

NP

V

($M

M)

20

25

30

35

40

IRR

(%

)

NPV IRR

COR FCCU Naphtha ProcessingCOR FCCU Naphtha Processing

0

50

100

150

200

250

"- 1" "-0.50" ProjectCase

"+ 1" "+ 2"

Processing Cost ($ per bbl)

NP

V

($M

M)

0

10

20

30

40

50

IRR

(%

)

NPV IRR

COR Premium GasolineCOR Premium Gasoline

Production Capability (MBPD)

0

10

20

30

40

50

60

2001 2006+

93 Octane 92 Octane 91 Octane

Note: 2006 includes low sulfur gasoline and ethanol