Titan Petrochemicals Group Limited, 48.59% owned by Titan Oil Pte Ltd, is a unique provider of oil logistic and marine services in the Asia Pacific region, in particular, in China. The Group has onshore and offshore storage facilities, and operates a rapidly expanding multi-functional ship-repair and shipbuilding yard, which will be the largest in Asia. Listed on the Hong Kong Stock Exchange (Stock Code: 1192), the Group is also a member of the Morgan Stanley Capital International (MSCI) Hong Kong Small Cap Index.

• Business Overview
• Shipyard
• Floating Storage (Offshore Storage)
• China Terminals (Onshore Storage)
• Transportation and Distribution

Business Overview

The group's business activities cover floating oil storage, China Terminals (onshore oil and chemical storage), ship-repair and ship building, petroleum transportation and distribution business.

The Group announced its exit from the oil trading business in June 2008 to give greater focus to its storage and shipyard businesses.

Shipyard

Titan Quanzhou Shipyard is a subsidiary of Titan Petrochemicals Group. In August 2008, Kawasaki Kisen Kaisha Limited (K Line) invested in the shipyard. With a total investment of US$500 million, and when fully completed, the ship repair yard will be one of the world's largest, with the capability to repair and convert very large crude carriers, large bulk carriers, ro-ro ships and even the world's largest container ships. The shipyard occupies an area of 110 hectares with a shoreline of 3,600 meters. While the focus is on ship repair, the yard also offers specialized ship building and offshore engineering services.

The ship repair facilities comprise four large dry-docks with a total docking capacity of about 1 million deadweight ton (dwt) of which No. 1 and 2 dry-docks are capable of docking 300,000 dwt vessels. The shipyard is also equipped with modern and comprehensive facilities to cater to all types of vessels. These include two slipways for new builds, total berth length of more than 3,600 meters, more than 27 long-jib cranes, three gantry cranes, six workshops for hull, mechanical-electrical, and surface preparation work.

Ship building operations began in October 2006 and the first two vessels were delivered in October 2007. Ship repair operations will commence by end of 2010 and the shipyard is targeted to be fully operational by the middle of 2011.

Floating Storage (Offshore Storage)

The Group has been given approval by the Malaysian authorities to anchor VLCC as floating storage units (FSU) in Malaysian waters on a long term basis. The Group provides oil storage, transit and blending services all-year round. The Group currently operates a fleet of FSU.

China Terminals (Onshore Storage)

The Group is building and operating large-scale high-end petrochemicals storage facilities at Nansha in the Pearl River delta area of Guangdong, Quanzhou in Fujian and Yangshan in Shanghai. Upon completion, Titan's total storage capacity in China will be more than 5,670,000 cubic meters, making Titan China's biggest independent petrochemicals storage service provider.

All three terminals have deep water berths (up to 300,000 dwt at Fujian and Shanghai, up to 120,000 dwt at Guangdong), good transportation network, and are equipped with state-of-the-art systems and advanced equipment. They all have bonded warehousing status so that they can provide import, export and transshipment services for petrochemical products.

The Group's Nansha terminals are designated as physical delivery points by Shanghai Futures Exchange and the Group operates Huanan Exchange Center, enabling Titan to provide customers a unique and flexible platform for trading, storage and distribution in the Asia Pacific and China region.

The first phase of Guangdong, Fujian and Shanghai storages are already operational and the second phase of Guangdong is also fully operational since mid-2009, providing an existing aggregate capacity of over 1.2 million cubic meters. By end 2010, Titan's China storage capacity is expected to reach a combined total of over 1.905 million cubic meters. The service standards of the oil warehouses and jetties have gained recognition of international inspection organizations and major international and domestic oil trading houses and companies.

Transportation and Distribution

The Group operates several coastal tankers that transport oil products within various parts of the Southeast Asia Region. The fleet of vessels is managed by our in-house management team, with focus on maritime safety and environment protection as its top priority.

The Group's oil distribution business currently focuses on bunkering or ship refueling. The Group's Singapore bunkering business serves the Group's fleet of vessels only. The Group's bunkering business also operates in Hong Kong. When fully completed, our three onshore storage projects in China are expected to be key drivers of growth for the Group and pave the way for expansion into offshore and onshore distribution.

For more information, please visit www.petrotitan.com