Press Release March 28 2011

Notification of the shutdown of the Fluid Catalytic Cracker (FCC) and the Mild Hydrocracker (MHC) at the Preemraff Lysekil

Preem announced today two unit shut downs at the Preemraff Lysekil refinery. The FCC unit (converting hydrocarbon fractions to mainly gasoline) will be shut down on March 29, 2011 and the MHC unit (which converts heavy gasoil to primarily diesel) will be shut down on April 3, 2011. Both units are expected to be back on line on April 23, 2011.

The FCC unit will be shut down in order to do mandatory inspection of certain pressure vessels. The standard inspection interval for pressure vessels is four years. In the past, Preem has been able to extend this interval to six years by producing risk based analyses for each vessel. Preem applied for a delay of the next inspection on the FCC unit in line with past practice. Following discussions with the Swedish Work Environment Authority, it has been decided to proceed with the inspection no later than May 2011.

The MHC unit will be shut down for catalyst replacement. A new catalyst was loaded during the autumn shut down in late 2010. The performance of the catalyst has been below expectations and the capacity of the unit has eroded more quickly than expected. As a result, the catalyst requires replacement before summer 2011.

Both operating income and refining margins in the second quarter will be negatively impacted by the two unit shut downs.

For further information, please contact:

Magnus Heimburg, Chief Financial Officer
Office: +46 10 450 10 44

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