Navajo Refining Company Selects KBR'S ROSE® Solvent Deasphalting Technology for Its Artesia, New Mexico Refinery

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October 12, 2005

Navajo Refining Company, L.P., Inc. a subsidiary of Holly (NYSE: HOC) will utilize KBR's ROSE® Solvent Deasphalting Process at its 75,000 BPD refinery located in Artesia, New Mexico. The ROSE unit will deasphalt vacuum residue. The deasphalted oil (DAO) extracted by the ROSE process will be low in contaminants like sulfur, metals and Conradson carbon (CCR), and will be a premium feed for the refinery's fluid catalytic cracking (FCC) unit. KBR is the engineering, construction and services subsidiary of Halliburton (NYSE: HAL).

"The addition of KBR's ROSE process will provide the refinery a cost-effective means to produce FCC feedstock from asphalt," explained Tim Challand, vice president of technology for KBR's Energy & Chemicals division. "Through its ROSE technology, KBR offers solid, commercially proven and reliable solutions to refiners for processing heavier crude oils and converting low value fuel oils to high value transportation fuels."

Navajo Refining relocated the unit from Kansas to New Mexico after refurbishing the major equipment, acquiring the ROSE license and technology, and expanding the unit's capacity.

"The new ROSE unit will significantly improve the refinery's bottoms upgrading capacity and improve Holly's ability to profitably process a wider variety of crudes while improving its asphalt quality," explained Dave Lamp, vice president for Holly refinery operations.

KBR's ROSE technology is used by refineries for separating high value deasphalted oil (DAO) from heavy aromatic asphaltenes. The DAO is normally converted into valuable transportation fuels through cracking in FCC or hydroprocessing units. The asphaltene product can be used as fuel or for production of products such road asphaltene or roof shingles.


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