OPERATIONS DEPARTMENT

Petroterminal de Panama, S.A. is a company that offers various services to both local and international markets. These services include:

1. Tanker Reception (Oil Tankers)

2. Oil Storage

3. Movement of Oil through the trans-isthmian pipeline

4. Power Generation

5. To accommodate reefer vessels

TANKER RECEPTION (Oil Tankers)

Petroterminal of Panama has two oil terminals, one located at the Charco Azul Bay, Baru District, province of Chiriqui and the other at the Chiriqui Grande Bay, Chiriquí Grande District, province of Bocas del Toro.

Both terminals have the capacity to receive super tankers, called VLCCs (Very Large Crude Oil Carriers) that can load up to two million barrels.

The existing depth at Charco Azul and the depth of the Chiriqui Grande lagoon were the main reasons these sites were chosen to build the terminals.

The Pacific Terminal differs from the Atlantic Terminal in its vessel’s reception facilities. At Charco Azul we have piers.

At the Atlantic Terminal, we have mono buoys.

For these reasons, PTP has always been known for being a key player in the distribution of hydrocarbons.

OIL STORAGE

Petroterminal de Panama, S.A. also offers oil storage. We currently have a storage capacity of 2.5 million barrels at both terminals, distributed as follows:

At the Pacific Terminal, we have three floating roof tanks with a capacity of 833,000 barrels each; these tanks are 300 feet in diameter and 66 feet high. In addition, we have three conical roof tanks with a capacity of 120,000 each.

At the Atlantic Terminal, we have the same amount of tanks and storage capacities as in the Pacific Terminal.

Petroterminal de Panama, S.A. is currently building new storage tanks at both terminals in order to improve its operations.

PIPELINE OPERATION

Petroterminal de Panama, S.A. has the only trans-isthmian pipeline of Central America, and it is the heart of our business activities.

The pipeline is up to 40" in diameter and 131 kilometers in length.

The pipeline was completed in 1982 to meet the demand for oil in Alaska on the east coast of the United States. From the beginning of pipeline operations until 1996, we have pumped more than 1.7 billion barrels.

This pipeline can be used to pump highly viscous heavy crude oils, as well as, light oils.

In order to move the oil through the pipeline, we operate two pump stations.  Additionally, the following measures were implemented:

· Interconnection with the ETESA electric power grid, construction of a voltage reducer substation 230 / 34.5 kV, and a transmission line of 34.5 kV, interconnecting the pump stations through the pipeline’s right of way.

· Replacement of 5-one way check valves located on the pipeline by block valves operated by remote control.

For 27 years, the trans-isthmian pipeline was used to pump crude from the Pacific Terminal to the Atlantic Terminal. However, due to global market oil needs, the large export companies saw the need to revert the direction of the pipeline flow in order to satisfy the growing demand of oil on the West Coast of the United States and Far Eastern countries like China and India.

In 2008, PTP joined forces with the Government of Panama and international companies in order to revert the flow of the pipeline from the Atlantic Terminal to the Pacific Terminal.